^ KSELLERS. p' 8^ CRITTENDEN'S INDUCTIVE AND PRACTICAL TREATISE ON BOOK-KEEPING. From the character of the gentlemen whose signatures are affixed to the opini' given below, and the high standing of the commercial houses which they represei the Publishers feel assured that no stronger testimony to the merits of the work c be given, and they therefore submit it alone. OPINION OF PRACTICAL ACCOUNTANTS. We, the undersigned, having carefully examined S. W. Crittenden's "Inductive and Practic Treatise on Book-Keeping by Single and Double Entry," as revised and enlarged, in the preso edition, by S. 11. Crittenben, Principal of the Philadelphia Commercial College, and are free bestow upon it our unqualified commendation. It is Avell suited for a text-book for the teacher, a guide for the learner, and a book of referen for the practical accountant. The elementary portion is simple, clear, comprehensive, and so gradually progressive that ea ■want and difficulty of the student appears to be successfully anticipated, while such definite a satisfactory reasons are given for each progressive step as to furnish the basis for further advam mont. The questions for review, Avhich are interspersed through the -work, aflford to teachers a reaffl method of testing the amount of knowledge acquired by their pupils, while they serve to fix previo] instruction more firmly in the mind. But the chief excellence of the treatise consists, in our estimation, in its pre-eminently PRi TiCAL character ; the author having obtained from practical accountants in some of the mi systematic and best-regulated houses of our large cities, the various labor-saving methods wlii long experience had suggested for their adoption, and incorporated them with his own theory a practice, thereby furnishing the most advantageous forms of books for various kinds of busine- These practical forms embrace two diflferent methods of keeping books (by double entry) for Jo b.ng Houses, one for Foreign Shipping Business, one for Commission Houses, one for an extensij and one for a RTiall Retail Business, and a form for Professional Men and Mechanics, besides! far-simile of Western Steamboating Business. And in the present revised edition there have bc( added iico more forms, one for a Joint Stock Company, and one for a Joint Stock Banking Businos- Ou the whole, we think this by far the most complete work we have examinfed on the subject. 1858-9. ---„^ PHILADELPHIA. .ToiiN De Brot, \B0ok-Jcee2wr] at M. L. Hallowell & Co., Ko. 333 Market St. B. B. CoMEGYs, [Cashier] at The Philadelphia Bank. Samuel C. Morton, [President of the Philadelphia Board of Trade,] No. 310 Walnut St. Ja^. S. Moore, [Book-keeper] at David S. Brown & Co., South Front St. Wm. W. Allen, [Book-keeper] at Farnham, Klrkham & Co., -A'b. 220 Cliestnut St. Tno. AVallace, Jr., o/7/;eyZrwi of Stuart & Brother. Benj. V. Marsh, o/Wood, Bacon & Co., No. 309 Mar'ket St. James L. Claghorn, of the firm 0/ Myers, Claghom & Co. NEW YORK. J. R. Nash, Book-keeper of Brown, Bros. & Co. , G. De Angelis, Cashier Mechanics' Bank. D. C. LuxAU, Book-keeper at Howland & Aspinwall. G. E. Underuill, Book-keeper to N. L. & Gr. Griswold. _ G. Recknagel, Book-keeper tcith Messrs. Barclay & Livingston. [Signatures to " Opinion of Practical Accountants" continued.] NEW YORK. 3NRY McKay. Book-keeper 1o A. T. Stewart & Co., Broadway and lieade St. tos. RiGBV, Book-keeper to Haggerty & Co, o. G. Baker, Book-keeper for Wells, FargO & Co., No. 82 Broadwai/. RAM Dixox, Accovnianf to Adams Express Co., to Freeman & Co.'s Txpress, a7id to New York Academy of Music, (nid Ttulur. No. 805 Brondwoy. Geo. White, Book-keeper to Lathrcp. Ludirgton & Co., No. 2.5 Park Place. M. A. Stephens. Book-keejur at Bowen. McNamee & Co., Nos. 3£0 and 322 Broadway. :o. W. Gerard, Book-I^eejier to Sturgis, Shaw & Co. ;oNARD Warner, Boole-keeper at Pierson & Co.. No. 24 Broadway. HN F. Clark, Book-keeper to B. M. & E. A. Whitlock & Co. .BERT P. LucH, Book-keeper at SchieCelin, Erothers & Co., No. 170 William St. BOSTON. S. Cutter. o^Jas. M. Beebe & Co. iMUND r. Cutter. /////( ^-^F. Skinner & Co W. Bourne. Book-kecjnr at J W. PeJge & Co., No. 141 N!lk St. K. Mayo. Book-keeprr at A & A. Ifiwrence & Co., No. 82 Milk St. LIBRARY OF THK University of California. an Sis. weeks i or a week before the end of the term. i 14fi Main St. G. Kennett, Book-keej.ei- for Kennett, Dudley & Co., No. 12 Main St. p. Seibel, Book-keeper at'Wm. C. Whitcher & Co., No. 139 Walnut St. ST. LOUIS. . G. Cozzens, Book-keeper at Crow, McCreery & Co., No. 55 N. Main St. JRY Drucker, Book-keeper at Woods, Christy & Co. . A. NoLEN, with Robert Campbell & Co. W. Jones, Book-keeper at Yeatman, Robinson & Co., No. 168 Green and Second Sis. J. M. Thompson, of the Jinn o/' Bennett & Thompson, cor. Second and Olive Sts. V. JIason, Book-keeper at North & Scotts, No. 81 Main St. '. Manue, Book-keeper to Boatmen's Savings Institution. CHICAGO. ^ . Leiter, Book-keeper for Cooley, Farwell & Co. [. Guilford. Boole-keeper at Reynolds, Ely & Co , No. 20 S. Water St. SRT B. Hatch, Book-keeper for Wszl^ex, Eronson & Cole. [. Bennett, Book-keeper for Wm. Blair & Co., No. 176 Lake St. r A. Cutler, Book-keeper at Ogden, Fleetwood & Co. . Thompson, Book-keeper for Tuttle, Hibbard & Co. NEW ORLEANS. GE Moss, Book-keeper ofW. H. Letchford & Co. RT Baldmin, Ca.'ihier and Accountant Jor J. Bumside & Co., No.Oo Canal St. Caulkins, at Wood & Low. .A. ^^- AN / INDUCTIVE AND PRACTICAL TREATISE art BOOK-KEEPING BY SINGLE AND DOUBLE ENTRY, DSSIONED FOK COMMERCIAL INSTITUTES, PRIVATE STUDENTS, AND PRACTICAL ACCOUNTANTS! OOnTATHISINO FOUR SETS OF BOOKS BY SINGLE ENTRY, SIX SETS BY DOUBLE ENTRY. ALSO, PRACTICAL FORMS FOR KEEPING BOOKS, CALCULATED TO SAVE LABOR IN THE VABI0U8 BRANCHES OP BUSINESS; COMMERCIAL CALCULATIONS: A TABLE OF F0BEI6N CODTS AND MONEYS OF ACCOUNT, ETC. BT S. W. CRITTENDEN, Accounta ACTHOB OP AS "IXDDCTITB AJTD PRACTICAL TREATISE ON BOOK-KEBPISQ," HIOH-SCHOOL TBSATXSB ON BOOK-KSBPIMO, FOR COMMON SCHOOU," STO. BEVISED AND SXLAK6ED, BY S. H. CRITTENDEN, Consulting Accountant, PRINCIPAL OP CBIIXSNSSN's FHILASXLPHIA COMMERCIAL COLLEQX. PHILADELPHIA: E. C. & J. BIDDLE & CO., No. 508 MINOR STREET, (BetiDeen Market and Chestnut, and Fifth and Sixth Sis.) 1860. 66^^ ^^.r^ Enterbd sxcording to act of Congress, in the year 185^. br E. C. & J. BIDDLE, in tne Clprk's Ofhce of the District Court of the Eastern District of Pennsylvania. COLLIXS, PRINTER. SMTvLOTYPED BV L. mMNSON AN'D 00. PHII,Ar)KI.!'.'-IA. CONTENTS. PA6S Pbeface . . 5,6 Brief Plan of the Work 7, 8 VOCABULART OF ABBREVIATIONS, CHARACTERS, AND MERCANTILE TeRMS 9 — 12 Singfe Cnfrg. Introduction 14 Set 1, Business of a Painter and Glazier. Explanatory Remarks 16, 17 Instructions for writing up 17, 18 Cash-Book 19 Day-Book 20, 21 Leger 22, 23 Deductions 24 Questions for Review 25, 26 Set II, Business of a Cabinet Maker — Partnership. Explanatory, Remarks 28 Instructions for writing up 29 Cash-Book 30, 31 Day-Book 32—34 Alphabet or Index 85 Leger 36—38 Deductions 39 Questions for Review 40 Set III, Business of a Farmer. Explanatory Remarks and Instructions for writing up 42, 48 History and Elucidations 44-— 49 Farm Account 50, 61 Inventory-Book 52 Deductions 63 Questions for Review 54 Set IV, Business of a Blacksmith. Explanatory Remarks 65 Leger, used as a book of original entry 56, 57 BouOfe iBwii'i}, Intsooitction 60 — 62 ITALIAN KETHOD. Set I, Cloths and Cassimeres — Gaining Business. Explanatory Remarks and Instructions for writing up 63 — 65 Day-Book 66, 67 Journal, with Elucidations 68, 69 Leger 70— '2 Full Explanation of the method of Posting and Closing the Leger, with Trial Balances and Inventory-Book 73 — 75 Statements showing the result of the Business » 76, 77 Questions for Review 77, 78 Set II, Boots and Shoes — Losing Business — Closing Insolvent. Instructions for writing up 79 Day-Book 80, 81 Elucidations for Journalizing 82, 83 Trial Balances and Inventory-Book 83 Statements showing the result of the Business 83, 84 Questions for Review 84 Set III, Continuation of Set II — Commencing Insolvent — Closing with Net Capital. Day-Book 86, 87 Elucidations for Journalizing 88 Trial Balance and Inventory-Book 89 Statements showing the result of the Business 89 Questions for Review 90 General Remarks 90 DAY-BOOK IN JOUKNAL FORM. Set IV, Dealing in Real Estate, Stocks, ^c. — Gaining Business — two Partners, investing equal amounts of Net Capital — Gains shared equally. Explanatory Remarks and Instructions for writing up 92 History and Elucidations 93 — 95 Day-Book 96—98 Leger .. 99-102 3 CONTENTS. PAoa Trial Balance andlnTcntory ,. 103 Statements showing the result of the Business 103, 104 Questions for Review 104 Set V, Produce, Grocery and Domestic Shipping Business — Losing Business — three Partners, one fur- nishing no Capital — Losses shared unequally. Instructions for writing up ^ 92 History and Elucidations 106 — 108 Trial Balance and Inventory 109 Statements showing the result of the Business 109, 110 Questions for Review Ill, 112 Remarks on Detection and Correction of Errors Ill BALANCE SHEETS AND LE6EB ACCOUNTS. Balance Sheets explained and Formulas given 114 — 116 Leger Accounts discussed 117 — 120 Questions for Review 121 DAY-BOOK IN JOURNAL FORM— CASH ENTERED SOLELY IN THE CASH-BOOK, AND TRANSFERRED MONTHLY TO THE DAY-BOOK. Set VI, Foreign Shipping and General Commission Business. Two Partners at commencing, and after- ward a third taken in. Explanatory Remarks and instructions for writing up 124, 125 History and Elucidations 126 — 138 Day-Book A 139—144 Day-BookB 145—148 Cash-Book 149—153 Index and Leger A 155 — 160 Index and Leger B 161 — 165 Inventory-Book and Trial Balances 166, 16? Auxiliary Books for Set VI. Bank-Book and Check-Book 170, 171 Bill-Book 172, 173 Invoice-Book 174 Sales-Book 175 Outward-Invoice-Book 176 Account-Sales-Book 177, 178 Account-Current-Book 179, 180 Letter-Book 181 Additional Auxiliaries 182 Leger Accounts (continued from page 120) 183 Questions for Review, Set VI 184 STEAMBOAT BOOKS. Books of Steamboat Sultana for two Trips. Explanatory Remarks and Instructions for the Student 185 Freight-Book 186—189 Passage-Book 190, 191 Cash-Book 192—195 Journal 196 Index and Leger 197 — 199 Crew's Leger 200—203 Balance Sheet, Manifest, Steamboat Report, Bill of Lading, Bill for Freight 204, 205 Forms of Notes, Due Bills, Drafts, Bills and Sets of Exchange, Orders and Receipts 206 — 208 PRACTICAL FORMS TO SAVE LABOR IN KEEPING BOOKS. Preliminary Remarks 210 Pkactical Form, No. \, for Professional Gentlemen, Mechanics, Teachers, and others 211 — 216 PbacticaIi Form, No. 2, for Retail Merchandising Business 217 — 224 Practical Form, No. 3, for Wholesale, Jobbing, Manufacturing, Retail, or General Trading Business 225 — 238 Practical Form, No. ^, for Wholesale, Jobbing, Importing, or Manufacturing Business 239 — 249 Practical Form, No. 5, /or Wholesale and Retail, or Extensive Retail Business 260 Practical Form, No. 6, /or Commission and Company Speculating Operations 251- -264 Form of a Continued Monthly Trial Balance; Forms of Receiving and Forwarding Books 264 — 266 Practical Form, No. 1, for Joint- Stock Company business 267 Practical Form, No. 2), for Joint-Stock Banking Business 281 COMMERCIAL CALCULATIONS, OR MERCANTILE ARITHMETIC. Interest, Discount, Bank Discount, and Discount on Bills and Invoices 294—297 Insurance, Commission, and Loss and Gain 298, 299 Equation of Payments (commonly called Average) both Simple and Compound 299 — 303 Equation applied to the Storage of Property 303, 304 Exchange on Great Britain and Indirect Exchange 304—306 Tables of Foreign Coins and Moneys of Account 306—312 Time Tables 313, 314 4 PREFACE. In the fall of 1845, a treatise on Book-Keeping was published, entitled, " An In- ductive and Practical System of Double Entry Book-Keeping," in two editions, one for the Counting-House, and the other (being an abridgment of the Counting-House edition) for High-Schools and Academies. In the preparation of that work for the press, the author of the present treatise was associated with his brother, A. F. Crittenden. In 1849, having purchased all his brother's interest in the former work, he prepared for publication as sole author a new treatise, (also in two editions,) similar in many respects to the former, but much more extended, embracing Single as well as Double Entry Book-Keeping, and made to conform more fully to the actual practice of our best accountants. Both these publications ran through several editions, and the latter especially has met with the most favorable reception in all parts of the United States, each succeeding year having shown a greatly enlarged demand for it. The favor thus shown the work did not cause the author to lessen his endeavors to improve it, but rather stimulated him to increased effort to merit the favor bestowed upon it, and led to the publication of the present edition, which, as compared with the former, is improved in every way which the additional experience of several years in teaching in a large city, daily intercourse with practical accountants, and almost con- stant exercise in adjusting intricate accounts for others could suggest to him. In his efforts to improve the work he has been kindly and liberally aided by his publishers, who have spared no expense which would tend to make it more useful and acceptable. It must be apparent to every careful observer that the science of Book-Keeping haa of late received much more attention in our country than in former years, not only among merchants and business men generally, but in schools, both public and private ; and the author confidently believes that the time is not far distant when it will be con- sidered as essential a branch of an Enghsh education as Arithmetic or Grammar now is. Entertaining this opinion, he prepared for the press "An Elementary Treatise on Book-Keeping by Single and Double Entry, designed for Common Schools," which was published in April* of this year, and which he trusts may prove a valuable auxiliary to teachers. The three publications on Book-Keeping above named are now so arranged as to harmonize with each other, and to supply a series of text-books adapted, it is believed, for the use of learners at different stages of advancement, from the school-boy and mere tyro in commercial knowledge, to the man of mature years and cultivated business habits ; while the more advanced volume of the series will, the author hopes, be found to be not unworthy a place on the desk of the experienced accountant, as a book of reference. The following is a concise summary of the leading features of the Counting-House edition, as now presented to the public : 1. Each set of books is so short that the pupil will be enabled to comprehend and trace out the con- nection between corresponding entries in the several account books of the set, and will not be- come fatigued with the extent of his business before ascertaining its result. 2. A sufficient number of sets is given to illustrate the opening and closing of books, both individual and partnership, under the various positions of gains and losses, capital and insolvency. 3. Plain and philosophical principles, to guide the reasoning faculties, are presented, instead of mere arbitrary directions and unnecessary classifications ; and in the part by Double Entry, all eluci- dations of debits and credits are based on one gerieral rule deduced from the deJiniiUm ofdebUP" and creditor. * Still entertaining this opinion, and being desirous to meet the wishes of many teachers whose pupils could only devote time sufficient for the mastering of Single Entry Book-Keeping, the author slightly altered that portion of the Counting-House edition for the press, and it was published in 1854, under the title of " Single Entry Book- Keeping." PUBLISBJBRS. 5 PREFACE. 4. Many of the entries are so classified as to bring those of a similar nature or of a directly opposite nature together, and thus to impress them upon the mind by strong similarities and contrasts. 5. Each successive exercise is intended to be a step of progress in the science, but yet so short and easy a step that what has already been explained shall be inductive thereto, and aid in its achievement. 6. The Day-Book, or the original history of transactions, is all that is furnished for several sets, to prevent the possibility of merely copying, and to compel the pupil to depend upon his own mental resources for his entries. Trial Balances, and other proofs, are however given to test tho correctness of his work. 7. Each set is followed with questions for review, which will afford teachers an opportunity of ascer- taining the amount of knowledge which their pupils have acquired, and will aid the pupil in fixing that knowledge permanently in his mind. 8. The nature and object of the different Leger accounts are discussed after the student has been made acquainted with the premises for reasonable conclusions. 9. The method of transferring accounts from one Leger to another is illustrated. Also, a business is shown, in which two partners are interested at starting, but afterward a third is taken into the concern. 10. A. foreign shipping business is introduced. In preparing this important portion of the work, the author consulted with many practical accountants, and he feels assured he has presented the matter in a form well adapted to the wants of learners, and which will claim the approval of ex- perienced book-keepers. 11. The space occupied with the Italian method of Book-Keeping (a form now obsolete in practice, although the foundation of all other forms) is barely sufficient to give those general ideas of journalizing, posting, &c., which must first be learned, and which can be better acquired under this form than any other ; while the main portion of the work is devoted to improved methods, such as are now in use in counting-houses in the various branches of business. 12. An extended variety of practical labor-saving Forms for keeping books follows that portion of the work intended for imparting a general knowledge of the science; the object of each Form and the kind of business to which it is best suited being particularly described. These Forms, it is believed, far exceed in number and real utility those embraced in any other publication. They have been revised with rigid criticism, and some which were formerly inserted have been thrown aside as too theoretical, while others have been modified to make them the better suited to the specific business intended ; and the author's endeavor has been to furnish all — the teacher, the mechanic, and the professional man, as well as the most extensive wholesale dealer, manufacturer, and commission merchant, with such information as each severally needs. 13. A series of Commercial Calculations are given, worked by the shortest and most approved methods; also, a Table of the Coins and Moneys of Account of the principal commercial nations of the world, showing their intrinsic values estimated according to the United States Mint valuation. 14. A Key to the work has been published for the use of teachers and private students, which contains the different Journals, Legers, Balance Sheets, &c., that are omitted in the treatise itself. Some books which are omitted in the High-school edition, and therefore given in the Key, will be found inserted in this edition, for the convenience of those who use it as a book of reference, and who do not wish to procure the Key. 15. Blank books, for writing up the sets, with printed explanations, have also been published. The distinctive characteristics of the High-School edition are noticed in the Brief Plan of the work, which follows this Preface. The author returns his sincere thanks to the many gentlemen, comprising in the number merchants, book-keepers, captains of vessels, and others, in various cities, (par- ticularly in New York and Philadelphia,) who kindly aided him in his labors, both by their advice and by furnishing such business details as could be acquired only by a long pursuit of their several callings. s. w. c. Philadelphia, Sept. Ist, 1853. Finding from experience in teaching, and attentive observation of the wants of the community, that some additions to this treatise were desirable, the undersigned carefully revised it, making some alterations, and has added thereto two more forms ; one for a Joint-Stock Company, and one for a Joint-Stock Banking Business, with a carefully- prepared list of questions on all the forms. With thanks to those gentlemen from whom he has received aid, he presents these changes to the public, hoping they may meet with their approval. S. H. CRITTENDEN. Philadelphia, 1857. 6 BRIEF PLAN OF THE WORK. This work embraces illustrations of accounts kept by both Single and Double Entry. In the Single Entry, contained in the first 57 pages, four sets of books are shown, with entries for four different kinds of business, each set ^eing preceded by explanatory remarks, descriptions of the books used, &c., and followed by exhibits of gains or ^osses, and of net capital or insolvency, resulting from the business, and by questions for review. The author has endeavored to reduce the keeping of books by Single Entry (which is at best only a series of memoranda) as nearly to scientific principles as possible ; but in his opinion the system of Double Entry alone deserves the appellation of Booh keeping ; and any one who becomes thoroughly master of it, will not relinquish it, but will keep his accounts in accordance with its principles, whether engaged in business on a limited or an extensive scale. The greater part of this treatise has therefore been devoted to Double Entry Book-keeping. In this Counting-House edition, the elementary portion of Double Entry, designed to impart a general knowledge of the science, embraces three different methods of keeping books. The first is the Italian method, so called from its supposed origin, and by this method three sets of books are given. The second is a method of dispensing with the Journal, and using a Day-Book in Journal form, from which postings are made direct to the Leger : — two sets of books are thus shown. The third method is similar to the second, with this variation, that the Cash-Book is the only book of original entry for moneys received or paid out, these entries being transferred from the Cash-Book to the Day-Book at the end of each month. This method is embraced in Set VI, which illus- trates a foreign shipping and commission business, continued for three years — two part- ners for the first two years, and three partners for the third year. In the third year a new Day-Book and Leger are introduced, and the method of transferring accounts from one Leger to another is exhibited. In connection with Set VL, the various auxiliary looks requisite in business are also given and explained. Following the above-named six sets, is a set of Steamboat books, which will be found particularly serviceable to clerks on our Western rivers and lakes. Lastly, in order to show how a knowledge of Book-keeping may be most advan- tageously applied to any specific branch of business, six Practical Forms are given, em- bracing labor-saving methods of keeping books, suited to mechanical, professional, retail, wholesale, jobbing, importing, manufacturing, and commission business; also two other Practical Forms, explanatory of the mode of keeping accounts adapted respectively to Joint-Stock Business, and Joint-Stock Banking Business. These Forms show how the general principles laid down in the elementary portion of the work may be applied to any particular method of keeping books which shall suit the taste of the book- keeper, or be best adapted to the specific kind of business. They exhibit plans for posting from one or* more books of original entry, without journalizing, making the postings to the various property accounts in monthly totals, while personal accounts are posted daily — for journalizing monthly — for keeping commission books, without opening Sales accounts in the Leger, &c. &c. Full explanations of the nature and use of the different books belonging to each set ; the manner of opening and closing the Leger for individual or partnership business, commencing with capital or without capital, and winding up with gains or losses — capital or insolvency ; directions for writing up the books, and also for the detection and cor- rection of errors ; questions for review ; Balance Sheets, with instructions how to make them out ; a discussion of the nature and object of the difierent Leger accounts, their modes of treatment, and the manner in which each is closed ; and a Vocabulary of com- mercial terms, together with explanations of the abbreviations and characters made use 7 BRIEF PLAN. of in commercial transactions, will all be found in their appropriate places, and may be readily referred to by means of the Table of Contents, pages 3 and 4. At the close of the book, Commercial Calculations, Tables of Foreign Coins and Moneys of Account, and Time Tables, are given. The following brief statement of the distinctive features of the several volumes of Crittenden's Series OP Treatises on Book-keeping by Single and Double Entry has been prepared under the belief that such a description ■wiU prove serviceable to teachers and private students, by enabling them to select that particular volume best adapted to the wants of each class or student according to their stage of advancement in the science. The series comprises the following volumes : — 1. Single Entry Book-keeping. Key to the same. Blank Books, for writing up the exercises contained therein. 2. Elementary Treatise on Book-keeping for Common Schools. Key to the same. Blank Books, for writing up the exercises contained therein. 3. Inductive and Practicai Treatise on Book-keeping: High-School Edition. Key to the same. Blank Books, for writing up the exercises contained therein. 4. Inductive and Practical Treatise on Book-keeping: Counting-House Edition. Key to the same. Blank Books, for writing up the exercises contained therein. No. 1 of the Series, though a small volume, contains a full and complete exposition of Single Entry Book- keeping, which is accomplished by means of four sets of books, in the first of which the individual business of a painter and glazier is exhibited ; in the second, the partnership business of cabinet-makers ; in the third, the individual business of a farmer ; and in the fourth, the individual business of a blacksmith. It is believed to be well adapted to the wants of pupils in the district or common schools of our country ; and of farmers, mechanics, professional men, and all others, the nature of whose business is such as not to require the more systematic method of accounts comprised in Double Entry Book-keeping. No. 2 of the Series was prepared with reference to the capacity of pupils of "Common" or "Grammar" schools, of from twelve to sixteen years of age, and elucidates the principles of the science, and the appli- cation of those principles to the more simple modes of keeping accounts, so that they may, it is believed, be fully understood by the class of pupils referred to. It contains four sets of books by Single Entry, illus- trating four different kinds of business ; and six sets by Double Entry, the first three of which are kept bj the Italian method, the fourth and fifth have a Day-Book in Journal form, so as to dispense with the Journal and the sixth is upon the plan of journalizing monthly. No 3 of the Series is suited to pupils of a more advanced age and a higher state of progress, and is designed for use in the higher schools, academies and other institutions of learning, in the United States, both male and female, public and private. All of the Single Entry and the first three sets .of Double Entry (by the Italian method) are nearly the same as in the treatise for Common Schools, but the subsequent sets are varied and more extensive. It contains seven sets by Double Entry. The fourth, fifth, and sixth sets are without a Journal, the Day-Book being in Journal form. The fifth illustrates domestic shipping, and the sixth foreign shipping business. The seventh is a plan for journalizing monthly, and illustrates a jobbing and importing business. No. 4 of the Series is intended as a book of reference for practical book-keepers, as a text-book for com- mercial schools, or institutions designed to prepare young men for immediate entrance upon the active duties of accountants, and as an aid to private students who wish a full and complete treatise. It is precisely like the High-School edition to the end of the sixth set by Double Entry, Following this, is a set of Steamboat books, and six different Practical Forms, or shortened methods for keeping books, suited to mechanical, professional, retail, wholesale, jobbing, manufacturing and commission business, and two additional Practical Forms, ex- planatory of the mode of keeping accounts adapted respectively to Joint-Stock Co. Business, and Joint-Stock Banking Business. The third of these Practical Forms is the same as Set VII. of the High-School edition. This edition also embraces numerous Commercial Calculations, a knowledge of which is essential to the prac- tical accountant, and Tables of Foreign Coins and Moneys of Account, One word as to the style used by the author in this work. Knowing, from experience, the great advantages to be derived from adopting the direct address in teaching, he has, at the risk of incurring the charge of egotism, made use of pronouns of the first and second person, (I and You,) instead of the third person ^ and is confident that those who peruse with a desire to obtain information will be pleased that all formality has thus been laid aside, and the conversational style adopted in its stead. To those whose sole object is criticism, it need only be said, the book was not written for their pleasure. VOCABULAEY OF ABBREVIATIONS, CHARACTERS, AND MERCANTILE TERMS, USED IN THIS WORK. ABBREVIATIONS. Adventure. Account. • American. Amount Answer. April. Adv. Ac't . Amer. Am't Arts. Apr. Aaa'd or Aa'd Assorted. Aug. August Bal. Balance. B.-B. * BiU-Book, Bank-Book. Bbl. Barrel. Bills Pay. Bills Payable. Bills Bee. Bills Receivable. B'k Bank. Blk. Black. Bo't Bought Bro't Brought Cap. Capital. C.-B. Cash-Book. Oo. Company. Cord Colored. Com. Commission, Commerce. C^m^t Consignment Or. Creditor. J)..B. Day-Book. Dec. December. Dep. Deposited. ly/l Draft Di». Discount Do. [Ditto.] The same. Doz. Dozen. Dr. Debtor. Dray. Drayage. d's Days. ea. Each. E. E. 'Errors excepted. E. & 0. E. Errors & omissions ex- cepted, Emb'd ' Embroidered. Eng. English. Ent. Entry. Ex. Example. Exch, Exchange. Exp's Expenses. fav. Favor. Feb. February. Fig'd Figured. fol. Fdio. Forw'd Forward. Fr. French. fr. From. Ft't Freight Gal. * Gallon. Guar. Guarantee. Shd. Hogshead. I.-B. Invoice-Book. t. e. [Id est] That is. Ins. Insurance. Insol. Insolvency. inst. [Instant] The present month. Int. Interest Inv't Inventory. Jan. January. Jour. Journal. J. F. Journal folio. Lab. Labor. Ws. Pounds. Leg. Leger. L. F. Leger folio. Mar. March. Mdse. Merchandise. m. or mo. Month. , Mols. Molasses. Mxit. Mutual. N. B. [Nota Bene.] Take no- tice. No. Number. Nov. November. Oct. October. O.-I.-B. Outward-Invoice-Book. p. Page. Pay't Payment P.-O.-B. Petty-Cash-Book. P'ch's Purchases. P'd Paid. P'l^g's Packages. P. & L. Profit & Loss. Per. Pr. pr. pr. ct. Prem. Prof, prox. Pt. Bec'd B.-B. S.-B. Sept. Sh. Ship't St'b't Stor. Sund's Super. ult. vif. v». Weigh. Yds. yr. Personal. Pair. [Per.] By. [Per centum.]| By the hundred. Premium. Profit [Proximo.] The next month. Pieces. Received. Rail-road. Sales-Book. September. Share. Shipment Steamboat Storage. Sundries. o]^S. F. Superfine. [Ultimo.] month. The last + X fVidelicet] To wit- namely. [Versus.] Against Weighing. Yards. Year. CHARACTERS. At. Account ^ Cents. [Per centum.] By the hundred. Number. Sign of addition. " " subtraction. " " multiplication. " " division. " " equality. [Ditto.] The same. One & one-quarter. One & one-half. One & three-quarters. MERCANTILE TERMS. Abatement, a deduction or discount for damages on goods, or for payment of demands before due, etc. Acceptance, 1st The receiving of a bill of exchange or order, in such a way as to bind the acceptor to payment. It consists in the acceptor's writing across the face of the biU "Accepted," and signing his name. If drawn payablt? at a certain number of days' sight, the date of acceptance should also be given. 2d. A bill of exchange accepted. Accommodation, a loan of money. When applied to bills of exchange it is where the drawee lends his name for the use of the drawer. Aec^yunt- Current, an exhibit in detail of a running account between two or more parties. Aotvunt- Sales, an exhibit of the sales of goods disposed of on commission, with the charges incurred thereon. Ad valotrem, according to value. An ad valorem duty is a certain percentage on the first cost, or invoice price. B 9 VOCABULARY. Advance, additional price; profit; premium. Money paid on property or goods expected, or on goods held in posses- sion for security. Adventure, goods sent to a distance to be sold on commission. Any speculation in Co. Advice, mercantile intelligence. Annuity, a sum of money payable periodically, usually yearly. Ante-date, to date before the present time ; to date beforehand. Arbitration, the hearing and determination of a cause between parties in controversy, by a person or persons chosen for the purpose. A hearing before arbitrators though they make no award. Assets, available means for payment of debts ; goods, estate, and indebtedness of others. Assignee, one to whom an assignment is made. One appointed or deputed for some specific purpose. Assignment, conditional transfer of property to another. The property so transferred. Assignor, one who makes an assignment Attachment, a claim on property legally executed. Aune, a French cloth measure, one yard and a quarter. Average, sums allowed for losses at sea. A medium time found by equation. Balance, to close an account in the Leger. Difierence between the debits and credits. An account in the Leger, into which all balances are closed. Bankrupt, insolvent. One unable to pay his debts. Bill, or Bill of Parcels, a statement in detail of goods bought or sold. Bills, a term applied to drafts, notes, etc. « Bill of Entry, a list of goods entered at the Custom-house. Bill of Exchange, an order for the payment of money ; usually applied to drafts on persons in another state or country from the drawer. Bill of Lading, a written account of goods shipped, having the signature of the master of the vessel on which shipped. Bill of Sale, a contract, under seal, for the sale of goods. Bill of Store, a Custom-house license for carrying to sea ship-stores and provisions free of duty. Blank Credit, permission granted by one house to another to draw on it at pleasure to a specified amount. Bona fide, in good faith. Bond, a note. An obligation or deed by which a person binds himself, his heirs, executors, and administrators, to pay a certain sum on or before a certain day. Bonded goods, those for the duties on which bonds are given at the Custom-house. Bottomry Bond, a mortgage or lien upon a vesseL Brace, a measure of f of a yard. Broker, a money or stock trader. Factor ; agent. Brokerage, a percentage for the purchase and sale of money and stocks. Capital, stock in trade. Cargo, the lading or freight dt a vessel. Catty, a Chinese weight of IJ lbs. avoirdupois. Carrying trade, the transportation of goods by vessels from country to country. Cliarter-party, a written agreement between the owner of a vessel and the person to whom she is chartered. Circular letter, a printed notice issued by a house, relative to its business. Clearing a vessel, entering at the Custom-house all particulars relating to her when she is ready to sail, and paying clearance charges. Clearance, a certificate from a Custom-house that a vessel has been cleared. Closing an account, making an entry to balance it, and drawing lines underneath to indicate that it is closed. Gocket, a Custom-house warrant to show that goods have been entered. Commission, a percentage allowed for the sale of goods. Compound, to settle with a creditor by agreement, and discharge a debt by paying a part of its amount. Compromise, an adjustment of differences by mutual concessions. Consignee, one to whom goods or wares are consigned. Consignment, goods sent to an agent to be sold for the consignor. Consignor, the person making a consignment. Contraband goods, articles prohibited by law to be imported or exported. Contra, on the other side ; opposite. Convoy, ships of war sailing with other vessels as a protection. Co-partnernkip, the union of two or more persons for purposes of trade. Counter order, a revocation of a former order. Credit, that side of an account which shows the amount due to the person or thing represented. The amount of confidence reposed in another. Custom-house, the house where vessels are entered and cleared, and where the duties on goods are paid. Bays of grace j the days allowed for the payment of a bill after it becomes due. In the United States, and in Great Britain and her dependencies, the number of days of grace is three; but it varies very much in other commercial states, reaching 30 days in Genoa, there being none allowed at Leghorn. Bills drawn at sight are usually paid when presented, without grace. Debenture, drawback of duties on goods imported, when afterward exported according to law. Debit, that side of an account which shows the indebtedness of the person or thing represented. Defalcation, deduction ; diminution. That which is deducted or cut oflF. Demurrage, forfeit money for detaining a vessel beyond the time specified in her Charter-party. Depot, a place where goods are deposited; a depository; a magazine. Deviation, the voluntary departure of a vessel, without necessity, from the regular and usual course of the specifio voyage insured, which frees the underwriters from obligation. Discount, any deduction from the stipulated price of goods, or from a sum due or to be due at a future time. Dividend, gains on stock, shares in trade, etc. Dock, a place to build, repair, or lodge vessels. Draft, an order from one person on another for the payment of money ; a bill of exchange. Drawer, the one who draws a bill or draft on another. The maker of a note. Drawee, the person on whom a bill is drawn. 10 VOCABULARY. Draxohatk, amount paid back. Any loss of advantage, or dedaction from profit. Duplicate, a copy. Duty, a government tax on exported or imported goods. Effects, money, property on hand, and debts due. Ell Flemish (E. Fl.), a measxire of | yd. Embargo, a restraint on ships by Government ; or prohibition of sailing either out of port, or into port, or both. Emporium, a mart. A town or city of trade ; particularly a commercial city. Endorse, to write one's name on the back of a bill ; to become obligated for its payment. Entry, a record made in an account book. The depositing of a ship's papers at the Custom-house, to procure license to land goods. Engross, to monopolize ; to purchase the whole or large quantities of commodities, in market, so as to enhance the price. Equity of redemptidn, the advantage allowed to a mortgager, of a reasonable time to redeem lands mortgaged. Exchange, the giving of one commodity for another. The place where merchants, bankers, and brokers meet, at certain hours, to transact business. Discount and premium arising from the purchase and sale of bills and money. Face, the amount for which a bill is drawn. Fac-Simile, an exact copy. Factor, an agent employed by merchanta to buy and sell, or transact business, on their account Failure, a breaking or becoming insolvent Favor, a bill is said to be drawn in favor of the person to whom it is payable. ' Finance, or Finances, revenue ; funds in the public treasury. The resources or income of individuals. Financier, one skilled in money matters. A revenue officer. Firm, the name or title under which a company transact business; a partnership, or house. Flat, low, [as to the prices of goods ;] or dull, [as to sales.] Foreclose, to foreclose a mortgage is to cut a mortgager off from his equity of redemption. Folio, page of an account book ; both the right and left hand pages expressed by the same figure. Freight, lading ; that which is carried by water. Sum charged by a vessel for the transportation of goods. Guarantee, or Guaranty, indemnity or security against loss ; a pledge for the fulfilment of stipulations ; one who binds himself to see the stipulations of another performed. Grace, see Days of grace. Honor, as applied to drafts, means to accept and pay when due. Hypothecate, to pledge ; to give as security. Hypothecated, pledged, as security for money borrowed. Importation, the bringing of goods from another country to one's own country. The commodities imported. Insurance, security against loss. The premium paid for insuring property or life. Insolvent, not having money, goods, or estate sufficient to pay all debts. A debtor unable to pay his debts. Instalment, a part of a sum of money paid, or to be paid, at a particular period. Interest, a percentage paid for the use of money. International, relating to the mutual intercourse between different nations. Inventory, an account in detail of property. Invoice, see Inventory. Inventory is generally applied to a catalogue of goods on hand; Invoice, to goods purchased, received from abroad, or about to be shipped. Land Waiter, a Custom-house officer whose duty it is to watt or attend on the landing of goods. Lease, a contract granting possession of property for a stipulated time. Letter of Attorney, a writing by which one person authorizes another to act in his stead. Letter of Credit, a letter authorizing one person to receive funds on the credit of another. Letter of License, a written permission to a person under embarrassment to conduct his business for a time without molestation. Letter of Marque, a written commission or authority given by government to private vessels, to make reprisals on tii« vessels of another nation. Liabilities, debts of an individual, or claims against him. License, a legal permit to sell certain articles of merchandise. Lien, legal claim, as a lien upon land, houses, t> notes, by the history of the payment. 1st Bo't of Jonas A. Leech a Farm, containing 125 Acres improved Land, and 25 Acres wood Land, with Stone House, Barn & Out-buildings complete = 150 Acres @ " pr. Acre. $15,000.00 Paid him in Cash, $5,000, and gave him my two Bonds for the Bal., secured by Mortgage on the Farm, one for $5,000, payable in five years, and one for $5,000, payable in ten years, each on Int. @ 6 ^ pr. annum, payable semi-yearly. As Jonas A. Leech has been paid in full for the farm purchased of him, no entry need be made necessarilj to his account; but in so large transactions as this, it is well to show them in the person's account in youi Leger, even though paid in full : therefore you may credit Jonas A. Leech (in your Day-Book) with th« farm, and debit him with the cash and bonds given in payment, making the entry full and explicit as to itj details. When this entry in your Day-Book is posted, you may rule and add up the account in the Leger, before posting any more into it. In the Cash-Book, on the credit side, enter the money paid, thus, "By Jonas A. Leech, paid in part foi Farm," giving the date and amount Bo't of Jonas A. Leech 20 Acres of Wheat, in the ground, @ $12 pr. Acre, to be paid for 4 mos. aftei" it is harvested. This requires a credit to Leech in the Day-Book. Make the correct extension of the amount, which i» here omitted. Bo't of Jonas A. Leech, his Horses, Cattle, Dairy Stock, Farming Implements, &c., as below enumerated : — 1 Span Horses, one 7, the other 8 years old, $200 ; 1 Yoke Oxen, 5 years old, $70; 5 Steers, yearlings last Spring, @ $10; 1 Durham Bull, 4 years old, $100; 1 Alderney Bull, yearling last Spring, $50 ; 3 Alderney Heifers, 2 years old la&fc Spring, @ $28 ; 17 Cows, at an average price of $23 ; 10 Hogs, @ $6 ; 12 Pigs, @ $3 ; 1 Large Two-horse Wagon, with Cover, $110 ; 1 Ox-Cart, $30 ; 2 Ploughs, @ $10 ; 1 Harrow, $8 ; 1 Horse Rake, $5 ; Dairying Utensils, Fanning Mill, Corn Cultivator, Pitch Forks, Spades, Shovels, Rakes, Hoes, Flails, and all other Farm- ing Implements now on the place, for the gross sum agreed between us of ^Qb ; Stock of Hay, supposed to be 40 Tons, @ $10 ; a quantity of Corn Fodder ard Straw, $30 ; 110 Bush. Wheat @ $1 , 250 Bush. Corn @ 50 ^ ; 100 Bush. Or ts @ 35^; 1,000 Bush. Turnips @ 12Y; 10 Bush. Ruta Bagas @ 25^; 20 Bu h. Carrots, @ 35^. $2,113.50 Paid him in Cash, $625, and a Note against Geo. Wheaton, my favor, @ 6 mos., due Feb. 10th, proximo, for $355 ; agreed to pay him in Cash, on the 1st of next Mar., $500, and the Bal. 8 mos. from date. In the Day-Book, credit Jonas A. Leech for all the above purchases, giving full particulars in systematic order. Take a separate line for each separate item enumerated, placing the amount of it at the left of the dollar and cent column. Add up these several amounts, and extend the total into the dollar and cent column. Debit him with the Cash, and with the note of Wheaton which you pay him. In the Cash-Book, enter the money paid him, on the credit side. Agreed with John Jones to work for me on the Farm, at any and all kinds of Farm work, for one year, @ $12 pr. mo. ; Bernard Samson do., @ $10 pr. mo. ; Patrick McFarland @ $8 pr. mo. ; and Lewis W. Gregory, boy, @ $3 pr. mo. ; also hired 44 HISTOEY AND ELUCIDATIONS, SET III. 2 La7icaster, Penn'a, January 1st, 1858. Margaret Wilson as Dairy-woman, @ $5 pr. mo. ; Peggy Morrison, Milk-maid, @ $4 pr. mo. ; Charlotte C. Bryant, Cook, @ $5 pr. mo. ; all to be paid monthly. Total, $47 pr. mo. This requires no entry in either Day-Book or Cash-Book. It is merely inserted hero to preserve the con- nected history of the whole business. The paying monthly is introduced in order to lessen the number of similar entries through the Set; although usually females employed, and sometimes men, are paid weekly. 2d Bo't for Cash, 75 Bush. Potatoes, @ Z5f, and 1 Bbl. Sweet Potatoes, @ $2.25. Enter the above upon the credit side of your Cash-Book. 3d Bo't for Cash, 10 lbs. Beef, @ 10/^, and 5 lbs. Nails, @ 5/^. Enter this precisely similar to the last In the next transaction of the same kind, I shall give you no suggestions as to entering it Such entries would be of almost daily occurrence in actual life, but I shall give only a few, as specimens. If I should write out all (he details of a farmer's life for a year, it would extend this Set to an unreasonable length, without any real advantage. Sent 30 Bush. Wheat and 25 Bush. Corn to Wm. Jacob's Grist Mill, to be ground. The miller takes toll out of the grain sent, to pay for grinding. No entry required. 10th Bo't of Orrin Woolworth, 1 Rockaway Wagon, with two seats, which can be used with one or two horses, for $150, to be paid for in grain. , Sold him on %, 20 Bush. Wheat, @ $1.05 pr. Bush. Credit Mr. Woolworth in your Day-Book, with the wagon purchased, and debit him with the wheat fur- nished. Specify also that he is to be paid in grain. As a general rule, it is well to mention any important fact in reference to the bargain in making entries in your Day-Book. Bo't for Cash of Sundry Persons, as pr. Bills, | Bbl. Pickled Mackerel, $t3 ; 3 Bbls. Pork, @ $12; 200 lbs. Sugar, @5f; 200 lbs. Sugar, @lf; 20 lbs. Loaf Sugar, @ 11;^; 5 Gals. Molasses, @ SO f ; 1 Gal. Sugar-house Syrup, 50/^; 10 lbs. Tea, @ 50/^; 2 Sacks, 320 lbs. Coffee, @ 10/^; 2 lbs. Saleratus, @ 12Y; 4 lbs. Rai- sins, @ 12V. 24tli Sold to Ebenezer Failing, 5 Tons of Hay @ $15 pr. Ton. He paid me in part by 20 Bush. Buckwheat, delivered at Jacobs' Grist Mill, @ 5/> /. Mr. Failing must be debited with the hay, and credited with the buckwheat. 31st Paid in full all the Hands employed by me, according to agreement, of 1st inst., $47 When the record is "Paid" simply, as in this case, without mentioning how, you are to consider it a cash payment, and enter it accordingly. February 4th Bo't for Cash, 1 quarter of Veal, 15 lbs., @ 7 /^ ; and 4 lbs. Beef Steak, @ 10 /. 17th Exchanged my horse Bill (8 years old) for a better match to my other horse, of the same age, (7 years,) and paid in Cash the difference in value, $10. Here you need only to enter in the Cash-Book the difference in value of the horses, paid in money. • 21st Gave to my wife as Shopping Money $25. Enter, same as any other expense, on the credit side of the Cash-Book. 45 3 HISTORY AND ELUCIDATIONS, SET III. Lancaster^ Penn^a, February 2^th, 1858. Isaac McGuigan has paid me his Note, my favor, due this day, $500. Enter on debit side of Cash-Book. Paid Hands in full, pr. agreement. The 28th of February this year is Sabbath, and all payments falling due on that day must be made the day previous. March 1st Paid Jonas A. Leech, on ^ of Stock, Farming Implements, &c., Bo't Jan. 1st, $500. Place this on the credit side of your Cash-Book ; and also debit Mr. Leech with it in the Day-Book, as he was credited with the whole stock and implements when they were purchased of him on 1st January, 16th . Bo't for Cash, to use as manure, 2 Tons Peruvian Guano @ $45 pr. Ton ; 2 Tons Patagonian Guano @ $25 ; 1,000 Bush. Lime @ 10 /^ ; and 100 Bush. Bone Dust @50^. Enter in Cash-Book only. 31st Paid Hands in full, pr. agreement. Discharged Patrick McFarland, because I find him untrustworthy. April 5th Sent 60 Bush. Wheat to Wm. Jacobs' Grist Mill to be ground. No entry required. 13th Sold my Durham Bull to Caleb L. Rodgers, for $125. Received of him Cash $50, and his Note @ 4 mos. for Bal. As Mr. Rodgers has paid in flill, you need not open any account with him ; and the only entry here is to debit the cash received, in the Cash-Book. In actual business, the note would also be recorded in the BiU-Book. Killed one of my Steers. Sold for Cash the 2 Fore-quarters of Beef, 200 lbs., @ 7/^; 1 Hind-quarter, 95 lbs., @ 8^; 10 lbs. Tallow @ 8^; and reserved the Bal. for use. Gave the hide to the Butcher for Killing and Selling. Enter receipts of money in the Cash-Book. 30th Paid Hands their Wages in full, $39. May 1st Sent my Horses to Ebenezer Failing, Blacksmith, and had 4 New Shoes put on @ 31V ea.; 4 reset @ 12V ea. Credit Mr. Failing in the proper book. 19th Ebenezer Failing has put New Coulter in my Plough and 2 New Teeth in the Harrow @ $2.50. 25th Sold Ebenezer Failing, on %, 8 Bush. Seed Potatoes, @ 50 p. Debit Mr. Failing in the proper book. 31gt Paid Hands in full, $39. Also Paid 6 d's.' Work of Day Laborers @ 75 /^; Hired Two New Hands for 3 months from date, at $14 pr. mo. — ^names, George Munson, and Wm. Patterson, Jr. Enter in the Cash-Book only what is paid. It would be well for every farmer, and every other business- man, to have a memorandum-book, in which he can state such facts as the hiring of these two new hands, and other matters which he cannot enter in his regular book of accounts, and which ought nevertheless not to be left entirely to the memory, because this often causes disputes and broils, when a few lines in writing, done at the time, would satisfy all parties. 46 HISTORY AND ELUCIDATIONS. SET III. 4 Lancaster, Penn^a, June \st, 1858. • ** Rec'd Cash of Timothy Tumbleston for his Note, my favor, due this day, $520. All receipts to be placed on the debit side of Cash-Book. 1st Bo't 6 First-rate Milch Cows, with Calves, Alderney Stock, @ $50 ea., of Geo. T. Lipman. P^d Cash, $150 ; Bal. due Ist Sept. Credit Lipman with the cows, and charge him with the money paid, in the Bay-Book. Also ent^r in Cash-Book correctly the money paid out. : 30th Paid "Wages in full, $67. Also paid to Jonas A. Leech the Interest on my 2 Bonds, given in pay't of Farm, ea. for $5,000 = $10,000 @ 6 %, for 6 mos., $300. All payments to be entered on the credit side of Cash-Book. July 9th Rec'd of James McClain, Cash in full for his Note, my favor, due this day, $625. 10th Bo't of Peter A. Phillips a Market "Wagon and Horse for $175. Paid in part by a Note I hold against Mulford & McKee, due Aug. 15th, for $110, and agreed to pay the Bal. on the 1st of Jan. /59. Credit Phillips with the wagon purchased and debit him with the Note. 15th Paid 4 days' "Work of Men to help at Harvesting @ $1.25. ' 3l8t Paid Wages in full, $67. August 17th Paid Cash for Marketing, $3.50. 25th — Sold Caleb Cope 2 of my Steers @ $25 ea. When no mention is made of payment, take it for granted nothing is paid, and debit the person accordingly. . 28th Sold for Cash, to a Drover, my 2 remaining Steers @ $15 ea., and 12 Calves (all except my Alderneys) @ $5 ea. 31st Paid Wages of Hands to date, George Munson and Wm. Patterson, Jr. left to-day. September 3d Rec'd of G. M. "Wharton, Esq., Cash in full for Notes, placed in his hands Mar. 1 Ith for collection, to wit : — One drawn by John Thomas, due Mar. 3d, for $250.00 Int. on same to date, $7.50. One drawn by James B. Babcock, due Apr. 3d, $269.50 Int. on same to date, $6.74. Paid him fee for Professional Services, $50. Enter in the Cash-Book, on the debit side, the money received for notes and interest, and on the credit side the money paid for professional services. - 4th Paid Jonas A. Leech in full for Bal. due on Stock, Farming Implements, &c. Bo't of him on 1st Jan. last, $633.50. The elucidation of Mar. 1st will apply to this entry. 47 5 HISTORY AND ELUCIDATIONS, SET III. ■''^.t^., /Lancaster, Fenn'a, September \Wi, 1858. E. B. Holden & Co. have this day sent me a Bill of Sundry Articles of Children's Clothing and other Mdse. obtained at their Store since April 1st, Am't $62.25. E. B. Holden & Co. must of course be credited with this bill of Mdse. 30th Paid Wages of Hands in full to date, $39. " 12 days' Work @ 75/ October 2d Bo't of E. B. Holden & Co., on %, Mdse. as pr. Bill, $10.75. Purchases on account to be credited the person pf whom you buy. u Sold E. B. Holden & Co. on % 600 lbs. Butter, in Firkins, @ 16/; and 225 lbs. Cheese, @ 8 /. Sales on account to be debited the person to whom you sell. 12th Sold Mrs. Sarah C. Dermott 50 Bush. Potatoes, @ 35 f. (Will pay in three mos.) 15th Stedman & Williston have this day finished threshing my Wheat, furnishing a Thresh- ing Machine, 1 Man and 2 Horses. They threshed 600 Bush, and charged 6 / pr. Bush. Credit the firm who did the work. 23d "■ Peggy Morrison, the Milk-maid, left me this day sick. Think I shall be able to get along without hiring another at present, by letting Patrick and Lewis milk. Paid Peggy 3 weeks' wages, $3, and made her a present of $3, as she had been a good girl, and is now sick. Enter same as any of the other payments of wages. 26th • Sold for Cash to Wm. R. Patterson, 375 Bush. Wheat, @ • 31st Paid Wages of Hands in full, $35. November 3d Sold Orrin Woolworth, on %, 50 Bush. Potatoes, @ 35 / ; 50 Bush. Wheat @ and 50 Bush. Oats @ 35 /. . tt Paid Cash for a Suit of Clothes for self, $30 ; Dresses for Wife, $25 ; Children's Clothing, $20.15 ; Crockery, $15.40 ; and Groceries, $18.25. 17th Paid Jonas A. Leech for Field of Wheat Bo't on Jan. 1st, as pr. agreement, $240. See entry of the purchase, Jan. 1st, and elucidation of Mar. 1st 27th Richard P. Simpkins finished chopping wood on my Farm to-day. He has cut 50 cords, @ 50 / pr. cord. Paid him in part by an order on E. B. Holden & Co., for Dry-Goods out of their store, to the Am't of $10 ; and Cash $10. The Bal. remains unpaid. Credit Richard P. Simpkins with whole amount of the chopping, and debit him with order and cash. Then credit E. B. Holden & Co. with your order, favor of Simpkins. Enter the Cash also in Cash -Book. 30th ■ Paid Hands their Wages in full, $35. 48 HISTORY AND ELUCIDATIOi^S, SET 'llli-l jj* Lancaster, Penn^a, December 2>d, t\ Sold E. B. Holden & Co. on %, 20 Cords Wood, delivered at their" 7th Rec'd of Caleb S. Rodgers Cash in full for his Note of Apr. 13th, @ 4 mos., due Aug. 16th, $75, and for Int. from Aug. 16th to date, $1.39. ; Enter in Cash-Book the whole amount received for note and interest. As no account was opened with Mr. Kodgers on the 13th April, (which see,) he is not to receive any credit here. Paid Geo. T. Lipman Bal. of his %, in full, due Sept. Ist, $150 ; and Int. on same from Sept. 1st to date, $2.40. Credit Mr. Lipman with interest on his account, and debit him with the payment in full, 14th Rec'd of Caleb Cope Cash in full of his %, $50. Sold Stedman & Williston on %, 100 Bush. Corn @ bOf. 20th Sold Richard P. Sirnpkins on %, 5 Bush. Wheat @ 25th Sold Caleb Cope 2 Alderney Calves @ $15; 1 Alderney Cow @ $60; 1 Yoke Oxen @ $75. See Aug. 25th. 28th Sold for Cash to Wm. Jacobs, 750 Bush. Oats @ 35^; 800 Bush. Corn @ 55^'; 50 Bush. Buckwheat @ 60 /. Paid the following contributions to charitable objects : Bible Society, $20; Tract Society, $20; Foreign Missions, $20; Home Mis sions, $20 ; Sabbath School Union, $20 ; For building Churches, $100 ; To our Pastor, $50. ' Also paid Schooling of William and Mary for one year @ $75 ea. Cash-Book entries. 30th ' Sold in the City of Philada., for Cash, 1,725 lbs. Cheese, @ 9 / ; and 900 lbs. Fii-- kin Butter, @ 18 /. Paid Freight and other Expenses on same, $11.55. 31st — ^ Ebenezer Failing has this day rendered me a Bill for repairing Wagons and Farming Implements, Shoeing Horses, and other Blacksmithing to date, $53.75. Paid Anson Holcomb, Cooper, for Bill of Butter Firkins,, Cheese Boxes, and Cooper- ing, during the past year, $26.25. Paid Wages in full, $35. Paid Int. on Bonds & Mortgages, favor of Jonas A. Leech, $300. Rec'd of Simpson Treat, Milk-man, Cash for 9,500 quarts Milk furnished him during the year, as pr. agreement, taken by him from the Farm each morning, @ 3 ^ pr. quart. G 49 Br.i FARM ACCOUNT. Farm, 185 Jan. 8. 1 Tc a (( (( a (( ii a 2 ii a (( ii a 8 a (( 10 a u ii ii « 24 a (( 81 ii Feb. 4 a a 17 a 11 21 a ii 28 ii Mar. 16 a (( 81 a Apri May 80 1 19 a a a ii 81 a June 1 ii ii 30 ii 11 a a July 10 15 a ii it 81 ii Aug. 17 31 a it Sept. 3 16 a a Mi 30 n Oct. 2 ii ti 15 a u 23 n (( 30 ii Nov. 3 ii (( 27 a (( 80 li Dec. 7 a (( 28 ii u 30 ii (( 31 it 11 <( it « (( it > Cost, 150 Acres (<^ 20 Acres Wheat in the ground @ $12 - - . . Horses, Cattle, Dairy Stock, Farming Implements, &c. 75 Bush. Potatoes @ 35^ 1 Bbl. Sweet Potatoes ------- Beef & Nails 1 Rockaway Wagon ------- Mackerel, Pork & Groceries ------ 20 Bush. Wheat - - - ' - - - - @ 55/^ Wages of Hands -------- Veal & Beef Difference in Exchange of Horses - - - - - Shopping Money -------- Wages of Hands -------- Guano, Lime & Bone Dust Wages of Hands Blacksmithing --------- Wages of Hands 6 Alderney Cows with Calves @ $50 Wages of Hands -------- Int. on Bonds to Leech - Market Wagon & Horse Wages of Hands --.- ii a a Marketing - - -- Wages of Hands - - - - - - -- Professional Services of Geo. M. Wharton Clothing & other Mdse. ------- Wages of Hands -------- Mdse., of E. B. Holden & Co. Threshing 600 Bush. Wheat @ 6j^ Wages of Hands - - - - - -- it a ii Clothing, Crockery & Groceries Chopping 50 Cords Wood @ 50/=^ Wages of Hands -------- Int. paid Geo. T. Lipman ------ Contributions $250.00, Schooling $150 . . - - Freight & Expenses to Market Blacksmithing $53.75, Coopering $26.25 - - - - Wages of Hands -- Int. on Bonds to Leech ------- Net Gains, as shown on page 53 - - - - 15,000 240 2,113 26 2 1 150 107 11 47 1 10 25 47 290 47 39 1 2 43 800 67 300 175 5 67 3 67 50 62 48 10 86 6 35 108 25 35 2 400 11 80 85 800 20,436 316 520,752 00 00 50 25 25 25 00 95 00 00 45 00 00 00 00 00 00 75 50 50 00 00 00 00 00 00 50 00 00 25 00 75 00 00 00 80 00 00 40 00 55 00 00 00 65 67 32 50 FARM ACCOUNT. Farm. Cr. 185S. Jan. 10 " 24 April 13 May 25 Aug. 25 " 28 Sept. 3 Oct. 2 " 12 " 26 Nov. 3 (( u Dec. 3 " 7 " 14 20 25 « 28 (( 30 (( 31 By 20 Bush. Wheat 5 Tons Hay - . - - Durham Bull _ _ - 2 Fore-quarters, 200 lbs. Beef - 1 Hind-quarter, 95 lbs. Beef 10 lbs. Tallow 8 Bush. Seed Potatoes 2 Steers - - - . - 2 " sold Drover - 12 Calves " " - - Interest on Notes collected - Butter & Cheese - - - 50 Bush. Potatoes 375 " Wheat - 50 " Potatoes 50 " Wheat - 50 " Oats - 20 Cords Wood Interest on C. L. Rodgers' Note 100 Bush. Corn - 5 " Wheat 2 Alderney Calves - - - 1 " Cow 1 Yoke Oxen - - - - 750 Bush. Oats - 800 " Corn 50 " Buckwheat 1725 lbs. Cheese - 900 « Butter 9,500 qts. Milk @ $1.05 @7/ @S^ @50/^ @ $25.' @ $15. @$5. @S5f( @$1. @35/ @$1. @35^ @$3. @50;^ @$1. @$15. @35/^ @ 55;^ @60/^ @9/^ @w @3/ Value of Farntj Stock, ^o,, pr. Inventory 21 75 125 14 7 4 50 30 60 14 114 17 375 17 50 17 60 1 50 5 30 60 75 262 440 30 155 162 285 2,609 18,143 $20,752^32, 00 00 00 00 60 80 00 00 00 00 24 00 50 00 50 00 50 00 39 00 00 00 00 00 50 00 00 25 00 00 28 04 61 INVENTORY-BOOK, SET III. Inventory of my Property, Dec. 31st, 1858 : 1 Farm of 150 Acres, worth $10 an Acre more than when I bought it, owing to good cultivation ; but which I w ill value at the original cost, $100. pr. Acre 15,000 00 1 Span Horses $250.00 1 Horse 100.00 1 Alderney Bull, 2 years old, 120.00 2 ' " Cows, @ $60. 120.00 6 " Do. " $45. 270.00 16 Common Do. (1 died) " $20. 320.00 7 Alderney Calves, " $15. 105.00 . 8 Hogs, " $6. 48.00 20 Pigs, 1 Rockaway Wagon "$3. 60.00 1,393 00 142.00 1 Large Double Wagon, with Cover 100.00 Market Wagon $70., Ox-Cart $25. 95.00 2 Ploughs, @ $7.50 15.00 Harrow $7., Horse-Rake $4.50 11.50 Fanning Mill & Corn Cultivator 23.00 Dairying Utensils, Forks, Spades, Shovels, Rakes, Hoes, Flails, and other Implements, valued at 40.00 426 50 170 Bush. Wheat, @$1. 170.00 250 " Corn, " 50/ 125.00 150 " Oats, " 35/ 52.50 40 " Buckwheat, " 55/ 22.00 . 115 " Potatoes, " 35/ 40.25 48 Tons Hay, " $10. 480.00 3 Stacks Straw, " $9. 27.00 Quantity of Corn Fodder 42.00 210 lbs. Butter, @18/ 37.80 154 " Cheese, " 9/ 18.86 1,125 Bush. Turnips, U 122^ 140.63 130 " Ruta Bagas, " 25/ 32.50 25 Cords Hickory Wood, " $3. 75.00 Quantity of Stable Manure Total 65.00 1,323 54 $18,143 04 • 52 i DEDUCTIONS FROM SET III. UNSETTLED BALANCES ON THE LEGER. Debts due me. Debts I owe. Ebenezer Failing Caleb Cope E. B. Holden & Co. Mrs. S. C. Dermott Stedman & Williston Orrin Woolworth Peter A. Phillips 44 00 65 00 $109 00 Capital at Starting. Cash on hand, pr. Cash-Book, at starting Notes held against others, " « _ . Capital Present Worth. Cash on hand, pr. Cash-Book, at closing - - _ Property owned by me, pr. Inventory-Book, - _ . Personal accounts due me, pr. Leger, - - - . Deduct liabilities, viz. : — Personal accounts I owe, pr. Leger, Bonds & Mortgages Payable, [See entry of the purchase of Farm, on the 1st of Jan., 1858.] - . . . Assets 109.00 6,275.00 2,629.50 ^8,904.50 888.63 18,143.04 297.50 $19,329.17 10,000.00 $10,109.00 Present worth, or net capital at closing ),220.17 Net Grains in Business. Net capital at closing business Deduct net capital at commencing $9,220.17 - 8,904.50 Net gains $315.67 From the above statements, you will perceive that : — The amount invested by you at starting business is termed capital.* Your available means at closing are termed assets. Your indebtedness at closing is termed liabilities. The difference between your assets and liabilities is termed net capital or presenC worth. (Or, if the liabilities be the greater, net insolvency/.) Also, JBt/ taking your capital at starting from your present worth, you may ascertain your gains in business. In a losing business. By taking your present worth from your capital at starting, you may ascertain your losses in business. * The various items which make up this capital are called effects; and if you owed debts also at staruug, the difference between the amount of your effects and debts would be called net capital, or, if the debts were the greater, net insolvency, 53 QUESTIONS FOR REVIEW, SET III. Op what business do tte materials on pages 44 to 49, inclusive, afford a history ? How are you to ascertain the gross amounts of debit or credit in any transaction ? To qualify a person to keep a set of books, what is necessary besides understanding the theory of accounts ? Where will you find an elucidation of the manner of entering any transaction recorded in the his- tory to Set III ? Of what form are the Cash-Booh, Day-Booh, and Leger used in this Set ? Where are the explanations "requisite for the blank books which accompany this treatise to be found ? Why should all books of account be kept free from mistakes, erasures, and blots ? What are you to do before looking at the elucidation of any transaction, and how are you to make the entry? What is to be done after the Cash-Book and Day-Book are completed ? What after finishing the posting ? What after re-examining the posting ? What after closing the Leger ? What test of accuracy have you ? What is the Inventory-Book ? Of what use is this estimation of the value of property owned by you ? How often do merchants " take an account of stock V Should every business man do the same ? How often must it necessarily be done ? What is the best rule as to the value to be affixed to your property ? What is exhibited on the debit side of the Farm account ? What on the credit side ? Of what is this account an exemplification ? What does the account as here shown enable you to ascertain ? Of what is it a proof ? Mention the persons who owe you on closing business. What is the gross amount ? Mention those whom you owe. What is the gross amount ? What amount of cash was on hand at starting ? What amount of notes did you hold against others ? What was the total capital at starting ? How ascertained ? What amount of cash is on hand at closing ? What amount of property is owned by you i' W hat amount is due on personal accounts ? What are the total assets at closing ? How ascertained ? What amount of personal accounts do you owe ? How much on bonds and mortgages ? What are the total liabilities ? How ascertained ? What is the present worth or net capital at closing 1 How ascertained ? What have been your gains in business ? How ascertained ? What is the amount invested by you at starting termed ? What are the various items which make up this capital called ? What would the difference between your effects and debts at starting be called ? What are your available means at closing termed ? What is your indebtedness at closing termed ? What is the difference between your assets and liabilities termed ? How do you ascertain your gains in business. How your losses ? What is to be done, if bad debts exist at closing ? [See Note, page 18.] 54 SET IT, SINGLE ENTRY. I HAVE given a Crew's Leger in connection with the Western river Steamboat Set of books, pages 200-203, for keeping accounts with the hands on board the boat, and the form of accounts there shown is so simple, that I concluded, in revising for this edition, to give here an illustration of the same method, for the use of persons whose business is very limited, and who may prefer to adopt it. It is to use a Leger only, ruled like the Cash-Book to Set I, [page 19,] and to enter directly in it all the debits or credits to the different parties with whom you have dealings, without the intervention of the Day-Book. The Cash account may be kept in a portion of the Leger, instead of having a separate Cash-Book, and any property accounts may be also kept, if desired, as well as in the preceding Sets given. I have omitted the Cash account, because its form and treatment would be precisely like Cash-Book, Set I, above referred to; and also, to save room, have omitted all statements, deductions, &c. Indeed, I have not endeavored to make the Set complete, as I do not intend it to be written up. You will be able at once to comprehend it, by a mere examination, after having progressed thus far. The Index (here omitted) would of course be needed, for convenient reference to the Leger. 65 LEGER, SET IV. James B. Longhead. Dr. Cr. 1858. 1 Dec. 3 To Ke-setting 4 Tires to Wagon 3 00 " " Mending King Bolt 25 " 1 " '. " 2 Nuts to Bolts 13 23 " Shoeing Oxen, ^1-50, Clevis 37/ 1 87, (( " 6 Iron Wedges, diflFerent sizes, 3 38 a " Mending Eye to Trace Chain 10 27 By 4 Bush. Potatoes @ 35 / 1 40 31 " 16 1bs. Butter @ 20 >? 3 20 li " Bal to Neio % 4 13 8 73 8 73 1859. Jan. 1 To Bal. from Old % 413 1 Herman Logan. Dr. Cr. 1858. 1 Dec. 4 By 4 days' Work @ $1. 400 11 u 52 u u a |l^ 5 50 a To Cash on % 6 00 18 By 43 days' Work @ $1. 4i75 25 " 5 " " " $1. 500 31 u 31 u u » ^l^ 3 25 (( To Cash in full 16 50 22 50 2250 Orlando Chase. Dr. Cr. 1858. Dec. 10 By 4 lbs. Tea @ 45/ 1 80 « (( " 1 " Allspice 13 a a " 2 " Raisins @ 12V 25 a 16 To 5 " Wrought Nails for Doors® 25/ 1 25 ". 21 " Iron Bar for Store Windows 88 (( 24 By 20 lbs. Brown Sugar @,Vf 1 50 u 30 " 10 " Coffee "9/ 90 u a " 1 Gal. Molasses 40 (( 31 " 14 Yds. Merrimac Prints @ 12V 1 75 a a " 30- " Lowell Sheeting " 10/ 3 05 a " Bal. to New % 7 65 1859. Jan. 9 J8 9 78 1 By Bal. from Old % 7 65 Mrs. Mary Pennington. Dr. Cr. 28 To Ironing Sleigh, as agreed 1500 56 LEGER, SET IV. Wendall A. Lyons. Dr. C7. 1858. Dec. 6 To 4 New Linch-Pins 38 u 7 " 1 Pr. Iron Hinges for Barn 75 a (( li 2 " <' (' '( <' 62 (( 9 " Ironing Cart, as pr. agreement 10'50 a (( " Mending Plough l|25 i( 17 " Repairs to Carriage 313 ii li By 10 Bush. Wheat @ $1. 10 00 n 20 " 4 " Corn " 50^ 2 00 (( 22 " 20 lbs. Cheese " 7 /^ 1 40 u u To Mending Log Chain 25 (( 25 " Shoeing Horses, 5 New Shoes 1 56 (( 27 " Ironing York Wagon in the best manner, as agreed. 25 00 it li " Making 3 Screws and Nuts 45 (C 11 " Mending Stirrup to Saddle 10 a 28 " 4 New Teeth in Harrow 75 a 29 " Irons on Whipple-treea 1 00 li << By Cash on % 20 00 <( u " 15 Bush. Potatoes @ 35 ^ 5 25 a a " 3 " Oats " 40/^ L 20 a 30 To Log Chain 2 50 a (( " 1 Small Bolt 16 a u " Mending Iron Kettle 44 a a " Repairing Sleigh, as agreed 4 25 u 11 By Cash on % 5 00 a 31 To Putting Bands on Beetle 50 " 3 Strong Latches to Barn Doors " 1 Bolt for Pump 1 13 19 u 11 " Mending Shovel 31 a 11 " " Manure Forks 62 (I 11 " Staple & Ring for Hitching-Post 38 ii 11 " Repairing Wheel-Barrow 94 a 11 By Bal to New % 1 2 31 1859. Jan. 57 16 57 16 1 To Bal. from Old % . 12 31 Wilson 'P. Jones, Jr, Dr. Cr. 1858. Dec. ii 1 10 15 To Shoeing Horses, 4 New Shoes @ 31V^ 4 Shoes, reset, " 12V " Repairing Wago» By Cash in full 1.25 .50 1 2 75 25 4 00 4 00 4 00 H 57 i^irf^ii^n BY BftWB ^^A gf iki ja JS W ¥ S 59 INTRODUCTION TO DOUBLE ENTEY EOOK-KEEPING. Book-Keeping by Double Entry is the keeping of accounts in such a manner that each entry contains both a debit and a credit, and hence the name. Book-keeping by Single Entry, as already explained, embraces only the accounts of persons ; but, in Double Entry Book-keeping, persons and tilings are alike debited and credited, and accounts are kept, not only with individuals, but also with the different species of property in your possession, and with the different branches of your gains and losses in business. All accounts are representative, of whatever name or descrip- tion ; thus, accounts kept with persons represent your business relations with those persons, accounts kept with the different species of property in your possession repre- sent your business relations with those different kinds of property, and accounts with the various branches of your gains and losses represent you as gaining or losing in business. The distinguishing feature of Double Entry Book-keeping consists in carrying out a mathematical principle of equilibrium, under the titles of debtor and creditor, or of debits and credits. It is this : In amount, every debit must have a credit, and VICE VERSA, every CREDIT A DEBIT.* The particular method or form in which books are kept is not essential, so that they conform to the principles of Double Entry, and preserve strictly the equilibrium of debit and credit. The Origin of the science of keeping books by Double Entry has been a matter of much speculation by different writers on the subject, but nothing definite can be ascer- tained respecting it. McCulloch, in his Commercial Dictionary, says "it was first practised in Venice, Genoa, and other towns of Italy, where trade was conducted on an extensive scale at a much earlier date than in England, France, or other parts of Europe." Kelly, in his treatise on Book-keeping, published in London in 1833, (first edition in 1801,) says, "it is generally supposed to have been first practised at Venice in the fifteenth century, when that city was the grand emporium of Europe :" although he adds, "it is remarkable that the first European who translated Algebra from the writings of the Arabians is also supposed to have written the first treatise on Book- keeping. It was published in the Italian language at Venice, about the year 1495, by Lucas de Burgo, a friar, who likewise wrote several useful works on mathematical subjects." Colt, in a lecture delivered at Boston, says that the Italians "most likely picked up, among other things, all they ever knew of Double Entry Book-keeping, at Constantinople, Alexandria, or some other eastern city, whose traders more anciently may have practised it in their commerce with northern Africa, Hindostan, and the countries bordering upon the Red Sea:" — and thinks it more likely that the Hanseatio merchants are the inventors of Double Entry than the Italians. To whomsoever the credit properly belongs, the Italians have prettj* generally received it, and that system of Double Entry which is shown in the first part of this "'■■• Recollect that this equilibrium is an equilibrium of amount, and not in the number of debits and credits. One debit may be balanced by several credits, or one credit by several debits, if the gross amounts in each case are er[uaJ. 60 INTRODUCTION. 2 treatise — embracing the Day-Book in history form, (originally called "Waste-Book or Blotter,) the Journal, and Leger, as the main books of entry — is usually denominated the Italian method. Since the publication of the first work at Venice, there had been, previous to 1810, according to Isler, of Brussels, " 150 authors on Book-keeping in different parts of Europe, among whom he enumerates 70 in Germany, 25 in France, 7 in Holland, 3 in Italy, and 30 in England. Subsequent to that time, it is not improbable there have been as many writers on the subject ; and this country has recently had its full share. The author of this work has examined upwards of 20 different treatises on Book-keep- ing published in the United States since 1815, exclusive of a large number of small works on Single Entry. There have been constant improvements in the method of keeping accounts, and very many changes made in the form and use of the different books, so as the better to Adapt them to any specific class of business required ; but these improvements have been made, for the most part, by practical accountants, and writers on the subject have by no means kept pace with the progress that has been made. The old Italian method has been adopted in the first three Sets here shown, because it is the basis of all other forms, and therefore the best form from which to learn the first principles of the science. The main books of entry, as already stated, are the Day-Book, Journal, and Leger. More or less auxiliary books are used in connection with these, according to the nature of the business transacted ; but as a knowledge of these auxiliaries is easily obtained, it is not thought best to encumber the mind of the student with them at first, and they are accordingly omitted until a subsequent part of the work. In the fourth and fifth Sets, I have shown another method of keeping accounts, which somewhat shortens the work, and lessens the labor of the accountant ; and in the sixth Set nearly the same method is continued. Set VI, however, had been prepared with particular reference to its practical character, as suited to a foreign shipping and commission business ; and the various auxiliary books are here introduced for the first time. Set VII, of the High-School edition, illustrates one of the best forms for actual use, and one perhaps more used in the different kinds of business than any one form: — while in the Counting-House edition, a large number oi practical forms of accounts are given, some now used by and obtained from accountants in the various departments of trade and commerce in the United States, and others original with the author, which will materially lessen the amount of writing and labor requisite in keeping books. Thus the design has been, from the simplest commencement, to attain to the most thorough and practical results by a plain, easy, and gradually progressive process. DEBTOR AND CREDITOR DEFINED. Debtor signifies the person or thing which is held bound, which owes, or which ia under obligation. Creditor signifies the person or tldng which holds bound, which is owed, or which has conferred an obligation. Therefore, whenever any personal account, property account, or account of gains and losses is debited on your books, it signifies that the person or thing represented thereby owes you ; and whenever any account is credited on your books, it signifies that you owe the person or thing so represented. GENERAL RULE FOR JOURNALIZING TRANSACTIONS, OR FOR DETERMINING WHAT TO DEBIT AND WHAT TO CREDIT. Transactions or trades have their foundation in exchanges of value. In every trade in which you are interested, value (real or supposed) goes from your possession, and 61 3 INTRODUCTION. value is also received by you. The value with which you part is either given for the use and benefit of some person, without his immediately remunerating you for it, thus making him your debtor; or else it is given for some species of property or some branch of your gains and losses, which thus becomes your debtor, for this cost or outgo. The value which you receive is either furnished by some person, without your imme- diately remunerating him for it, thus rendering him your creditor ; or else is paid for through the medium of some species of property or some branch of your gains and losses, which thus becomes your creditor, for this value produced. As value exchanged is the basis of all trade, it should also be the basis of any rule or rules for entering transactions which occur in the course of trade ; and the great value of good rules consists not in their arbitrarily producing results, but in their con- taining within themselves the reason for such results, so that the learner cannot apply the rules without understanding the subject-matter. The following general rule for journalizing transactions^ (or for determining what to debit and what to credit,) is believed to be of such a character, and to be applicable to every transaction that will occur in the ordinary course of trade, whether on a limited or on an extended scale. RULE. IN STOCK BOOKS. • Any person or thing is Debtor when you give value or become obligated for it. Any person or thing is Creditor when it produces value or renders service for you. IN partnership books. Any person or thing is Debtor when the firm give value or become obligated for it. Any person or thing is Creditor when it produces value or renders service for the firm. Or Briefly. in stock books. Debit what Costs you value. Credit what Produces you value. IN partnership books. Debit what Costs the firm value. Credit what Produces the firm value. Note. — The above Rule will not apply for determining the opening Janmal entry of indiridaal or stock books, since the Rule ij ixily applicable to transactions between two or more parties in business ; but it will apply to the opening enta-y of partnership books, M &ere must necessarily be an agreement or bargain between tue parties at the commencement of business. 62 SET I, DOUBLE ENTRY. It should be borne in mind that each set is intended to represent a business by itself, independent of the others ; and particular attention should be paid to the opening anu closing of each, to discover clearly the various exhibits made of capital invested, gains or losses in business, and net capital or insolvency resulting therefrom. The continu- ance of each set for one month is intended to represent a year, this being as often as books are closed in a majority of houses, although some close every six months. 63 EXPLANATORY REMARKS, SET I. THE DAY-BOOK. The Day-Book, in the Italian method, is a plain history of your business transactions, written in the order and date of their occurrence. It is necessary to open the Day-Book by giving therein a statement of your effects at the commencement of business, and also of what debts you owe. Afterward record in detail every transaction that occurs in the course of business, making the entry, in history form, in as few words as possible, and have it complete. [See Day-Book, page 66.] THE JOURNAL. The Journal is used for arranging under Leger titles the entries that have been pre- viously made in the Day-Book, and for aflSxing to each Leger title the correct amount of debit or credit, which is called journalizing. This is done that the accounts may with ease be collected under their proper heads in the Leger. There are various styles of Journal. The one given with this Set has two dollar and cent columns, one for the debits and one for the credits. The debtors are written first, commencing at the left-hand marginal line, and having their amounts extended into the debit column. The creditors are designated by commencing at a short distance from the left-hand marginal line, by being prefixed with the word "To," and by having their amounts extended into the credit column. [See Journal, page 68.] THE LEGER. The Leger may be appropriately styled the grand reservoir of accounts, into which all records in the other books flow as naturally as streams to the ocean. It may also be styled the business-man's directory, from which- he can refer to the details contained m the books of original entry, with the same ease as he would trace out the residence of a friend by searching the street an i number in the City Directory. Its principal use is to collect under one head all sums belonging to the same account. Copying from the Journal to the Leger is called Posting. By examining the Leger, and tracing out a few postings, you will see that there are spaces ruled for particular purposes — viz. for the date, the name of balancing entry to each debit or credit, the folio of Journal, and the amount^^and that the form and mode of entry in a Double Entry Leger is very nearly similar to Single Entry. Note. — " By," whenever used in any of the hooka, !s the prejtu, ol the debtor, although generally placed on the creditor side of an a/ n/ y x/. ^/ >/ / Inventory of my effects on commencing business 400 Yds. Blk. Eng. Cloths @ $3. 460 " Ass'd " Do. @ $2.50 720 " Blk. « Cassimeres @ $1.50 385 " Ass'd " Do. @ %\. Cash on hand 2d. 1,200.00 1,150.00 1,080.00 385.00 3,815.00 2,000.00 Sold, for Cash, to Isaac Bates 100 Yds. Ass'd Eng. Cloths @ $3. 160 " Blk. " Cassimeres @ $2. _ 3d 300.00 320.00 Sold to James Melrose, for his Note @ 30 days, 190 Yds. Ass'd Eng. Cassimeres @ $1.16 5th Sold to Philip Somers on % 175 Yds. Blk. Eng. Cloths @ $3.75 Bought of Nathan S. Faxon, for Cash, 225 Yds. Blue Eng. Cloths @ $3.25 6th Bought of James Walton, on my Note @ 60 days, 350 Yds. Blk. Fr. Cloths @ $4. 195 " " " Cassimeres @ $2. 200 " " Eng. Do. @ $1. 8th "- 1,400.00 390.00 200.00 Bought of Elihu Barnes on %, @ 90 days, 238 Yds. Ass'd Fr. Cassimeres @ $1.25 9th Sold to Wm. Alexander 250 Yds. Blk. Fr. Cloths @ $5. Received in Payment, Cash, 450.00 His Note, @ 30 days, for the Balance 800.00 1,250.00. . 12th Sold to Thomas Carpenter & Co. 195 Yds. Blk. Fr. Cassimeres @ $2.25 Received Cash in part payment 300.00 The remainder sold on % 138.75 13th Paid Cash to L. W. Camden, for repairs of Store * These check-marks indicate that the entries have been journalized, and should be placed opposite each ontry as soon as it is transferred to the Journal. Some use the Journal folio instead. 66 5,815 620 220 656 731 00 00 40 25 25 1,990 297 1,250 438 50 12,069 00 50 00 75 00 15 DAY-BOOK, SET ^ _ ' Philadelphia, January l^th, \S ^^^ Q ftJL V V v/ x/ s/ %/ -y v/ v/ %/ Am't IBro't forward Sold to Martin Pemberton, on %, 125 Yds. Blue Eng. Cloths @ $4. 20th Sold to Philip Somers 230 Yds. Ass'd Eng. Cloths @ $3. Received payment in part by Elihu Barnes' Note, in favor of P. Somers, due March 4th, Am't The Balance sold on % 350.00 340.00 22d Bought of Elihu Barnes 400 Yds. Ass'd Eng. Cassimeres % $1.50 Paid in part by his Note, favor of P. Somers, due Mar. 4th 350.00 The Balance purchased @ 30 days' credit 250.00 2ad Bought of Ezra Peterson 240 Yds. Ass'd Fr. Cloths @ $3.* Paid Cash in part 400.00 Balance on % 320.00 -1 24th 720.00 Received Cash of Philip Somers on % 26th Sold to Thomas Carpenter & Co. 220 Yds. Ass'd Fr. Cloths @ $3.40 Received an Order of Samuel W. Fairburn on me 400.00 Cash 200.00 Balance on % 148.00 27th Appropriated Cash for Personal Expenses , 29th — Sold to Thomas Carpenter & Co. 225 Yds. Blk. Eng. Cloths @ $3.75 130 " Ass'd " Do. @ $3.00 200 " Blk. " Cassimeres @ $1.25 195 " Ass'd " Do. @ $1.16 Received in payment, Cash Their Note @ 60 days Balance on ^ @ 30 days ^ 31st 843.75 390.00 250.00 226.20 569.98 569.98 569.99 1,709.95 Paid Ezra Peterson Cash in full of his % Paid Cash for Rent of Store one month " '■'■■ ■'■ " Clerk hire " " " Gas Bill " " 75.00 75.00 5.00 r 67 12,069 500 690 600 720 656 748 15 00 oc 00 00 25 00 60 1,709 320 155 00 95 18,228 Ou 00 36 *J» JOURNAL, SET I. Philadelphia, January Is/, 1858. Dr. Cr. ;l.f. 1*1 1 1 Sundries Merchandise Cash Dr. To Stock You must imagine this to be your own business, and bear in mind that "Stock," as here used, does not mean goods on hand, but represents you, instead of your own name. This entry means simply Sundries Dr., and Stock (yourself) Or. Under the heading " Sundries," the several items which make up the sundries are always enumerated: — in this case, as you see, the items are Mdse. and OasJi, each of which is considered as obligated, or indebted to you for its ralue. You are credited, under the title of Stock, for the Effects inyested bjauu in business. See remflK on the opening of the Journal, page 65. 2d Cash Dr. To Merchandise The Cash which you get in this trade has cost you Mdse. to the value of S620, and is considered as owing you for its cost. The Mdse. which you have sold has been the means of your receiving $620 in Cash, and you are considered indebted to it for the value produced ; therefore, Oash is Dr. because it has cost value. — Afdse. is O. because it has produced value. dT" Be careful to notice the/or»» of each entry, and the manner of extending the amounts into the columns. In this case you perceive both a debit and credit extension on the same line. Notice, also, that several items of the same kind of property do not constitute sundries in the Journal, but the term Sundries is the caption when there are several Leger titles. 3d Bills Receivable Dr. To Merchandise By this transaction a Note is received for Mdse., instead of Cash, as in the preceding entry. Bills Sec. Costst value, and is Dr. — Mdse. produces value, and is Or. 5th Philip Somers Dr. To Merchandise You do not here receive immediate payment for the Mdse. sold, as in the.two preceding entries ; value has not, therefore, been given for Cash or Bills Rec, or any other species of property, and no property account is Dr. — But value has gone from your possession in Mdse. to the amount of S>656.25, for the use and benefit otJPhUip Somers, without his remunerating you for it : therefore he has been the occasion of an outgo, or expense, to you ; in other words, has cost you value, and is Dr. Mdse. has produced value in his indebtedness, and is Cr. Merchandise Dr. To Cash This and the two following entries are the exact counterparts of the three preceding ones. Here Mdse. costs value in Cash : — Cash produces value by paying for the Mdse. 6th Merchandise Dr. To Bills Payable Mdse. costs value in your Note : — Bills Pay. produces value by paying fi)r the Mdse. 8th Merchandise Dr. To Elihu Barnes Mdse. costs value in your indebtedness to Barnes : — E. Barnes produces value by furnishing you with the goods without pay. 9th To Merchandise Sundries Dr. Cash Bills Receivable Sundries — to wit. Cash and Bills Rec. — ^have cost you value in Mdse, and each is Dr. for its cost. Mdse. has produced value in the Cash and Note, and is Cr. 12th Sundries Dr. Cash Thomas Carpenter & Co. To Merchandise Cash and T. Carpenter & Co. have each caused you to part with Mdse, and have thus been a cost to you. Mdse. has produced you value in Cash and the indebtedness of Carpenter & Co. 8,815 2,000 620 220 656 731 1,990 297 00 40 25 25 00 50 45000 800 00 800 138 12,019 15 5,815 620 220 656 731 1,990 297 1,250 438 00 00 40 25 25 00 50 00 75 12,01915 * Omit the Leger folio until you post. t Whenever, as in this case, I am speaking of the Leger account of " Bills Rec." or « Bills Pay., I use the singular verb, bftcauss to(» ticun is really singular, although the word "Bills," of itself, is plural. 68 JOURNAL, SET I. Philadelphia^ January 13M, 1858. Dr. Cr. 2 |L.F. 2 1 : 2 1 1 1 1 2 Am'ts Bro't forward Store Expenses Dr. To Cash store Expenses hare lost yon value, and are Dr. — Cash has produced you ralue, by paying for repairs, and is Cr. 19th — Martin Pemberton Dr. To Merchandise The elucidation of the entry of the 5th inst will fully explain this transaction. 20th Sundries Bills Receivable Philip Somers Dr. To Merchandise You have given Mdse. to the value of S690 for Barnes' Note and for Somers" obligation ; therefore, Bills Rec. and P. Somers are Dr. for what they cost you, and Mdse. is Cr. for Uie value it produces you. 22d Merchandise Dr. To Sundries To Bills Receivable " Elihu Barnes Mdse. costs S600, and is Dr. — Bills Rec. and K. Barnes produce value ; Bills Rec by paying for part of the goods, Barnes by furnishing part without pay. 23d Dr. To Sundries Merchandise To Cash " Ezra Peterson Mdse. costs value. — Cash and E. Peterson produce value. 24th Cash Dr. To Philip Somers Cash has cost you the former indebtedness of Somers. — Somers has produced value by paying his account. 26th To Merchandise Sundries Dr. Samuel W. Fairburn Cash Thomas Carpenter & Co. An Order is a request in writing that yon will pay a certain sum for another person. Here you have parted with Mdse. to the value of S400, at the request of S. W. Fairburn; thus he has cost you that much, and owes you for it, or is Dr. For remainder of entry, see elucidation of 12th inst. 27th Personal Expenses Dr. To Cash Personal Expenses cost value ; Cash produces value by paying these expenses. 29th Sundries Dr. Cash Bills Receivable Thomas Carpenter & Co. Sundries cost value in Mdse. To Merchandise 31st Ezra Peterson Dr. To Cash Peterson costs you S320 in Cash. — Cash produces value by paying the debt. Store Expenses Dr. To Cash store Expenses cost value in Cash. 69 12,019 50 500 350 340 600 720 656 400 00 00 00 25 00 20000 148 00 60 569 569 569 320 155 00 00 00 18,228i35 12,019 50 500 690 15 00 00 00 350 250 400 320 656 748 60 1,709 00 00 00 00 25 00 00 95 320iOo 155100 18,2281,35 1 LEGER , SET I. Dr. Stock. Cr. Date. Balancing Entry, J.F. Amount. Date. Balancing Entry. J.F. Amount. 1858. 1858. I Jan. 31 To Bal {Net Cap.) 3 6,752 10 Jan. 1 By Sundries 1 5,815 00 11 31 " Profit & Loss 3 937 6,752 10 6,752110 10 ! il Br, Merchandise. Cr. 1858. 1858. Jan. 1 To Stock 1 3,815 00 Jan. 2 By Cash 1 620 00 u 5 " Cash 1 731 25 a 3 " Bills Rec. 1 220 40 u 6 " Bills Pay. 1 1,990 00 a 5 " P. Somers 1 656 25 c; 8 " E. Barnes 1 297 50 a 9 " Sundries 1 1,250 00 (( 22 " Sundries 2 600 00 a 12 11 a 1 438 75 u 23 a il 2 720 00 11 19 " M. Pemberton 2 500 00 8,153.75 a ^0 " Sundries 2 690 00 " 31 " Pro/.&Loss (gain) 3 1,2 2 10 li 26 (( a 2 748 00 y^ li 29 (( 11 6,833.35 2 1,709 95 _x << 31 " Bal (Inv't.) 3 2,5 2 2 9,355 50 9,355 85 8.5 Dr. 1 Ca 1 ' sh. 1 Cr. 1858. 1858. Jan. 1 To Stock 1 2,000 00 Jan. 5 By Mdse. 1 731 25 (( 2 " Mdse. 1 620 00 a 13 " Store Expenses 2 50 00 a 9 (.(. li 1 450 00 li 23 " Mdse. 2 400 00 (< 12 a n 1 300|00 11 27 " Per. Expenses 2 60 00 u 24 " P. Somers 2 656 25 11 31 " E. Peterson 2 320 00 u 26 " Mdse. 2 200 00 li il " Store Expenses 2 155 00 11 29 il 11 • 4,796.23 2 569 98 11 31 1,716.25 " Bal. (on hand) 3 3,0 7 9 98 J 4,796 23 4,796 23 Br. i: ■ II 1 1 1 II 1 Bilk Receivable. Cr. 1 8o8. 1858. Jan. 3 To" Mdse. 1 220 40 Jan. 22 By Mdse. 2 350 00 u 9 il 11 '.f- 1 800 00 <( 31 " Bal. (unpaid) 3 1,59088 u 20 ti il 2 350 00 ^y '' |29 I', 11 2 569 98 ^^ 1 1,940:38 II ^^^ 1,940 38 1 i 1 ^ 1 70 Br. LEGER, SET I. Philip Somers. Cr. 1858. Jan. 5 20 To Mdse. 996.25 J.F. 1 2 656 340 25 00 1858. Jan. 24 3 1 By Cash « Bal. {due me) J.F. 2 3 656 340 25 00 996 25 1 996 25 1 Dr. Bilk Payal ble. Cr, 1858. Jan. 3 1 « To Bal. (unpaid) 3 1 1858. 1,9 90 00 Jan. 6 Bj Mdse. 1 1,990 00 \— 1 Br. Elihu Barnes. Dr. Thomas Carpenter ^ Co. Cf. 1858. Jan. 31 To Bal. [due him) 3 547 50 1858. Jan. 8 22 By Mdse. J4r.50 1 2 297 250 50 00 547 50 547|50 Cr. 1868. Jan. 12 26 29 To Mdse. SS<.74 1 2 2 138 148 569 75 00 99 1858. Jan. 31 By Bal. (due me) 8 856 74 856 74 856 74 ' Dr. Store Expen ses. Cr. 18587 Jan. 13 31 To Cash MS.OO 2 2 50 155 00 00 18)8. Jan. 31 By Prof. & Loss (loss) 3 205 205 205 00 00 00 Dr. ^- Martin Pemberton. Cf 1858. Jan. 19 To Mdse. 2 500 ta 1858. Jan. 31 Bi/ Bal. {due me) 3 500j00 : 71 LEGER, SET I. Dr, Ezrc I Peterson, Cr. 1858. Jan. 31 To Cash J.F. 2 320 00 1858. Jan. 23 By Mdse. J.F. 2 320 00 1 1 I Dr. Samuel W. Fairburn. Cr. 1858. Jan. 26 To Mdse. 2 400 00 1858. Jan. 31 By Bal. [due me) 3 400:00 Dr. Personal . Expenses. Cr. 1858. Jan. 27 To Cash 2 60 00 1858. Jan. 31 B^ Prof. & Loss (loss) 3 6000 Dr. Profit Sf Loss. Cr, 1858. Jan. a n 31 To Store Expenses " Per. " 265.00 " Stock [net gain) 2 3 1 — 205 60 937 00 00 10 1858. Jan. 31 By Mdse. 1 1,202 10 1,202 10 1,202 10 Dr. Balance. Cr. 1858. Jan. 31 To Mdse. " Cash " Bills Bee. " P. Somers " T.Carpenter&Co " M. Pemberton " S.W. Fairburn 9,289.60 2,52250 3,079 1,590 340 856 500 400^00 9,289' 9811 38; 00 74! 00 1858. Jan. 60 31 By Bills Pay. " E. Barnes 2,53r.50 " iStocJc (net cap.) 1,990 547 6,762 9,289 00 50 10 60 72 ON POSTING. Having journalized all the transactions recorded in the Day-Book, the next step is to post them, i. e. transfer them from the Journal to the Leger. This process I will endeavor to explain to you. Look at the first entry in your Journal, " Sundries Dr. To Stock," and you will perceive that Stock is Cr. $5,815.00, which is now to be transferred to the account of Stock on the Leger. After opening this account thus, "Dr. Stock Or.," as shown in the Leger here given, place underneath this heading, on the credit side, the date of Journal entry, what Stock is Cr. by, the Journal folio from which the post is made, and the amount. Having done this, you post-mark the entry ; i. e. place, in the left hand margin of the Journal, the folio of the Leger to which it is posted. This completes the first post. Next comes the Drs. of this entry, of which Merchandise is the first. Open an account for it thus, " Dr. Merchandise Cr.," below Stock on the same folio, leaving enough lines intervening between the two to receive all the posts which are to be made to the Stock account. Underneath this second heading, on the debit side, place the date, description. Journal folio, and amount, as directed for Stock, and lastly post-mark it in the Journal. Next take the debit to Cash : open an account for Cash in the Leger, and post as directed for Merchandise. The whole of the first entry in the Journal is now posted. The second entry requires two posts, one to the debit of Cash, and one to the credit of Merchandise, which two accounts you have already opened on the Leger. This entry will also require two post-m^rks, the upper one for the debit, and the lower one for the credit. Proceed in this manner regularly, opening new accounts as you come to them, until the whole Journal is posted, when you will be ready to take a Trial Balance ; for an explanation of which see the following. TRIAL BALANCE, LEGER, SET L B... L.F. 1 Leger Titles. Dr. Amount Columns. Cr. Dr. DiflFerence Columns. Cr. Stock . - - . 5,815 00 5,815 00 1 Merchandise 8,153 75 6,833 35 1,320 40 1 Cash - _ - - 4,796 23 1,716 25 3,079 98 1 Bills Receivable - 1,940 38 350 00 1,590 38 2 Philip Somers - - - 996 25 656 25 340 00 2 Bills Payable 1,990 00 1,990 00 2 Elihu Barnes - - - 547 50 547 50 2 Thomas Carpenter & Co. 856 74 856 74 2 Store Expanses 205 00 205 00 2 Martin Pemberton 500 00 50000 3 Samuel W. Fairburn 400 00 400 00 3 Personal Expenses 60 00 60 00 17,908:35 17,908 35 8,352 50 8,352 50 The Trial Balance of the Leger is made when the Journal is all posted to it, to ascertain whether equal amounts of debits and credits have been posted, or if the whole Leger balances. It is made in the following manner : — First, add up the debit and credit side of each account in the Leger, and place their amounts to the left of the dollar column, with a pencil, as shown by the small figures in the Leger given. Then, having headed the Trial Balance, write down in it the titles of the several Leger accounts, commencing with Stock ; and place opposite each title, in the amount columns, the debit and credit foot- ings, as set down with a pencil in the Leger : also, place in the difference columns the K 73 TRIAL BALANCE {continued). differences between these debit and credit footings. Accounts that balance in the Leger need not be brought in. The left hand marginal column is for the Leger folio. Add up the several columns of the Trial Balance. Now, since for every debit made upon the Leger there has been an equal amount of credit, and for every credit an equal amount of debit ; and since the amount columns of the Trial Balance embrace every debit and credit upon the Leger, (except those accounts whose debits and credits are equal ;) therefore, the debit and credit totals of these amount columns must be equal. And, if the totals of the amount columns are equal, then the totals of the difference columns must also be equal. If this equilibrium does not exist, there is an error, which must be sought.* A Trial Balance may be taken with the amount columns only, or with the difference columns only. The latter is the usual mode in business ; and, in subsequent Trial Balances in this work, the differences of the Leger accounts will only be used. la a real business, the Trial Balance mai/ be taken monthly, and should be taken as often as once in three months, even though the books are closed but once a year. You will next find use for the Inventory. INYENTORY-BOOK, OR ACCOUNT-STOCK-BOOK, SET L Inventory of Merchandise remaining unsold Jg,n. 31, 1858 : 100 yds. Blk. Fr. Cloths, @ $4. 20 " Ass'd " do. @ $3. 100 " Eng. Blue do. @ $3.25 560 " Blk. Eng. Cassimeres, @ Sl.50 400 " Ass'd " do. @ $1.50 238 " " Fr. do. @ $1.25 This is a small book used to take down the Inventory of goods remaining unsold at any time, generally called by merchants "taking an account of stock," — stock, as here used, meaning goods on hand, and not your own name in business, as it does in the Journal and Leger. This Inventory, or account of stock, is taken by actual observa- tion and estimate of the goods or other property remaining on hand, either at cost price or at the estimated value ; and is usually made out once a year, as most houses close their books yearly ; but houses that close their books semi-yearly, must take an account of stock once in six months, as the property on hand is always made use of in closing the Leger. In this set, if you will go over the Day-Book, carefully selecting the goods of each kind bought, adding them to those of the same kind on hand at commencing business, and deducting therefrom those of the same kind sold, you will find whether the Inventory here given is correct. This test of correctness would not generally be practicable in business, owing to the diversity and number of items bought and sold. Having thus described how the Inventory is taken, I will now explain what use is made of it in closing the Leger. ON CLOSING THE LEGER. Preparatory Steps. After making a Trial Balance, open a Profit and Loss account, (unless previously opened,) and a Balance account. Next bring in the property on hand, i. e. place to the credit of each speculating! property account, in the Leger, the amount of property belonging to that account, as shown by the Inventory-Book. Ent^r this in red ink, giving the date on which you close, and saying ^^ By Balance (Inv't.)," • For manner of detecting and correcting errors, see page 111. t Each account representing any species of property which you buy and sell to speculate upon — as Mdsi\ or Real Estate. 74 ON CLOSING THE LEGER {continued). . to show that it is to be transferred to the Balance account ; and make the opposite entry immediately on the debit side of Balance account, in black ink, saying " To Mdse.," or " To" whatever property account you have just made the red ink entry. In the column usually occupied by Journal folios, place the Leger folio of the account indicated by the entry. This entry of the property unsold is sometimes made through the Day-Book and Journal, but considering this useless labor, I have adopted the shorter and simpler method of placing it directly upon the Leger. All speculating property accounts must have the balances of property unsold credited to them in this manner, before they are closed. In this set there is only one such account — Merchandise ; and the whole of the goods unsold must be credited to it. The Leger is now ready for closing. Leave Stock open for the present. Commence at the first account after Stock, and close each account which shows a gain or loss into Profit and Loss, and each account which shows a balance that will add either to your assets or liabilities into Balance. It will suflBce my present purpose to state, in short, that Merchandise, Bank Stock, and all other speculating property accounts — Premium, Interest, and Discount — Personal Expenses — Store Expenses, and all similar accounts, show gains and losses, and are closed into Profit and Loss: while Cash — Bills Receivable — Bills Payable — Bank — accounts with individuals, and the like, show assets and liabilities, and are closed into Balance. To close an account, find the difiierence between the debit and credit side of it by subtraction, and enter this diflFerence on the smaller side of said account in red ink, saying "To" or "By" that account into which you wish to close it; and then enter the same amount in black ink on the opposite side of the account into which you close it, saying " To" or " By" the account you are closing. Then rule the account with red ink, and add it up with black ink, after the pattern given you, and the closure is complete. Make all closing and transfer entries and all rulings in the Leger in red ink. Italics in the Legers given in this work indicate red ink. Continue thus to close the accounts successively, until only Stock, Profit and Loss, and Balance remain open. In order to prove that your work thus far has been done correctly, you may now take another test, which I shall call a Second Trial Balance. SECOND TRIAL BALANCE, LEGER, SET L L.F. Leger Titles. Dr. Amount Colnmns, Cr. Dr. DiflFerence Columns. Cr. 1 3 3 Stock - - - - Profit & Loss Balance - - - - 265 9,289 00 60 •5,815 1,202 2,537 00 10 50 6,752 10 5,815 937 00 10 9,554 60 9,554 60 6,752 10 6,752 10 1 This Second Trial Balance, as you see, consists of the three accounts now open, and its debit and credit totals must be equal, since, throughout the closure of the Leger, every debit has had its credit, and every credit its debit. In real business, neither the Balance account is used, nor the Second Trial Balance, as here shown. But of this you will be informed in Set IV. Finally. — After proving your work thus far, close Profit and Loss into Stock, thus transferring your net gains or losses in business to the account which is your own representative. The difierence between the two sides of the Stock account will now show your net capital or your net insolvency, which you must close into Balance, making the last entry in Balance account also in red ink, as it becomes the closing entry to that account. This completes the closing of the Leger. 76 STATEMENTS, SET I. If you have carefully considered "what is embraced in the foregoing pages, you will have acquired, I think, a pretty clear idea of the business represented in Set I ; but, to make it still plainer, and also to give you more general ideas of what is embodied in the Leger, I will now show you some abstracts from it, in the form of statements, (worded as if drawn off by yourself from your own Leger,) by which your capital at commencing business, your gains during business, and your net capital at closing, will be clearly represented. Statement Ist, showing Net Gains. I have gained, as shown on the credit side of Profit ^ Loss account, By trading in Merchandise $1,202.10 I have lost, as shown on the debit side of Profit ^ Loss account, By payment of Store Expenses $205.00 " " " Personal do. 60.00 ^ Deduct total losses ------ 265.00 My net gains in the business are - - - - $937.10 Which is the excess of credit in Profit & Loss account. Statement 2d, showing Net Capital at closing. My available means, called "Resources," or "Assets," are shown upon the debit side of Balance account, and consist of Merchandise remaining unsold to the am't of - - - - - $2,522.50 Cash on hand 3,079.98 Bills Receivable, or other persons' Notes held by me - - - 1,590.38 The indebtedness of P. Somers 340.00 " " " T. Carpenter & Co. 856.74 « " " M. Pemberton 500.00 « " " S. W. Fairburn 400.00 Total resources or assets ----- $9,289.60 My indebtedness, called " Liabilities," is shown upon the credit side of Balance account, and consists of Bills Payable, outstanding against me - - - - $1,990.00 Amount due E. Barnes 547.50 Deduct total liabilities 2,537.50 My net capital, or present worth, is ----- - $6,752.10 Which is the excess of debit in the Balance account. Statement 2>d, proving Statements Ist and 2d. The amount of Effects invested by me at the commencement of business as shown by the credit side of Stock account, is $5,815.00 The net gains, shown on credit side of Stock, and by Statement 1st, are 937.10 Thus, the net capital or present worth (as by Statement 2d) is - - $6,752.10 Which is seen also in Stock account. Note. — If any additional inTestment had been made by you during the business, it would find its place also upon the credit side of Ptock account. The dibit side of Stock account contains the amount of your indebtedness at commencing, any sums withdrawn by you during th« business, and your net losses in business : but, in Set I, nothing has occurred requiring a debit to it. 76 STATEMENTS {continued). Therefore : — In a gaining business, commencing with net capital, To find your present worth, or net capital at closing : 1st. Add the net gains in business to the net capital at starting 2d. Deduct the total liabilities from the total assets. To find your net gains in business : 1st. Deduct the total losses from the total gains. 2d. Deduct the net capital at starting from the present worth. QUESTIONS FOR REVIEW, SET I. The following questions are intended as a review of all that has been written thus far on Double Entry. Answers to all questions asked can be found on some of the foregoing pages', and teachers will do well to require their pupils to search them out and learn them. What is Book-Keeping by Double Entry ? How does Double Entry Book-Keeping differ from Single Entry ? What do accounts with persons represent ? What do accounts with the different species of property represent ? What do accounts with the various branches of your gains and losses represent ? What is the distinguishing feature of Double Entry ? Is an equilibrium in the number of debits and credits required ? What then ? Why is the old Italian method of Book-Keeping adopted in the first three Sets of Double Entry*/ What are the main books of entry in the Italian method ? Define debtor. Define creditor. In what have transactions or trades their foundations ? Repeat the general rule for journalizing transactions. Repeat it briefly. Does this rule apply for determining the opening Journal entry of individual books ? Does it apply to the opening entry of partnership books ? What is each Set intended to represent ? Why should particular attention be paid to the opening and closing of each ? What is the continuance of each Set for one month intended to represent ? How often are books closed in a majority of houses ? Describe the Day-Book in the Italian method of Book-Keeping. For what is the Journal used ? Why is this done ? Describe the Journal given with this Set. In making entries therein, how do you distinguish between debtors and creditors ? What may the Leger be styled ? What is its principal use ? Of what is " By" the prefix ? On which side of an account is it generally placed ? Of what is " To" the prefix ? On which side of an account is it generally placed ? Define Bills Receivable. Define Bills Payable. When are notes said to be negotiable ? What name is given to an individual in business by himself? What are his books called ? Explain the opening of the Journal for Stock books. What would you debit, and what credit in journalizing each of the following transactions, and for what reasons ? 1st, Sale of Mdse. for cash. — 2d, Sale of Mdse. for another person's note. — 3d, Sale of Mdse. on account. — 4th, Purchase of Mdse. for cash. — 5th, Purchase of Mdse. for your own note. — 6th, Purchase of Mdse. on account. — 7th, Sale of Mdse. for cash and another person's note. — 8th, Sale of Mdse. for cash and on account. — ^9th, Payment of expenses for the store in cash. — 10th, Sale of Mdse. for another person's note and on account. — 11th, Purchase of Mdse, for another person's note and on accoimt. — 12th, Purchase of Mdse. for cash and on account. — 13th, Receipt of cash on account. — 14th, Sale of Mdse. for another person's order on you, for cash and on account. — 15th, Payment of cash for personal expenses. — 16th, Sale ^^f Mdse, for cash, for another person's note and on account. — 17th, Payment of an account in cash, — 18th, Payment of rent, clerk hire and gas bill in cash. 77 QUESTIONS FOR REVIEW {continued). What is the next thing to be done after journalizing? What is meant by posting? What is meant by post-marking ? How do you post-mark when there is both a debit and a credit on the same line in the Journal ? What test of the Leger is taken when the posting is completed ? Describe the process of taking a Trial Balance, and its use. Is it usual in business to take it with the difference columns only ? How often is it taken ? What is the Inventory-Book ? How is the Inventory or Account of Stock taken ? What accounts do you open preparatory to closing the Leger ? What is the next step after opening these accounts ? What class of accounts have the balances of property unsold credited to them ? Define speculating property accounts ? In commencing to close the Leger, what account do you leave open ? What class of accounts are closed into Profit & Loss ? What class into Balance ? In closing the Leger, is the first entry made in the account you are closing, or in the account into which you are closing it ? On which side of the account and in what colored ink ? Where is the opposite entry made, and in what colored ink ? In what cases is red ink used in the Leger ? How indicated in this work ? When is thelSecond Trial Balance taken, and of what accounts does it consist ? Is the Second Trial Balance used in a real business ? Which is the first account closed after the taking of the Second Trial Balance ? After the Profit & Loss account has been closed into Stock, what does the difference between the two sides of the Stock account show, and how is it closed ? In what account, and on which side, do you ascertain your gains in business ? In what account, and on which side, do you ascertain your losses in business ? What is shown by deducting total losses from total gains ? How is this shown in the Profit & Loss account ? What are your available means at closing styled, and where are they found ? What is your indebtedness at closing styled, and where is it found ? What is shown by deducting total liabilities from total assets? How is this shown in the Balance account ? Where do you find the amount of your effects invested ? Where do you find the amount of your indebtedness at commencing (if any) ? On which side of Stock account are your net gains shown ? On which side your net losses ? What is shown by adding the net gains in business to the effects invested at commencing ? Where is this seen ? Wliat are your total gains in Set I ?* Total losses ? Net gains ? What are your total resources or assets at closing Set I ? Total liabilities ? What is your net capital or present worth ? What is the amount of your effects invested added to your net gains? In a gaining business, commencing with net capital, by what two methods can you ascertain your present worth ? By what two methods, your net gains ? * The pupil may have hia Leger before him in answering this and the following questions. 78 SET II, DOUBLE ENTRY. You can write up this Set in the blank books which accompany this treatise. You will perceive that no Journal or Leger is here given, because I wish you now to rely upon your own reasoning powers, aided by such elucidations as are necessary, for apply- ing the principles already learned. Copy the Day-Book ; then journalize it, referring to the elucidations of the different entries for any suggestions required. Having journalized, post from your Journal into the Leger, and take a Trial Balance, which, if correct, will agree in every respect with the one given on page 83. If it does not agree, there is an error, which must be sought and corrected, after the manner described on page 111. When the Trial Balance fs right, proceed to close the Leger in the same manner as described for Set I, taking a second Trial Balance when you come to it, as a test of the closures thus far. You can make out, from your Leger, statements of the net gains and net capital at closing, and compare them with the statements on pages 83 and 84, which will be a still further check upon the correctness of your work. Set I was a gaining business, and closed with net capital ; but this is a losing business, and closes with net insolvency. By comparing carefully the two Sets, and the state- ments drawn from them, you will acquire clear and definite ideas of both prosperous anil adverse business. Note. — The Kty is designrl solAy for the Uacher, and the scholar should in no ease he permitted to use it ; or if at all, nicre»y lo ompare \m hooks after \>t -'Vtcher has pronounced them correct. Be should hunt hU own mistaJxi, as this is most excellunt practice pr him. 19 DAY-BOOK, SET II. Philadelphia^ February 2d, 1858. s/ ^ v/ s/ I commence Business with the following Effects : Cash on hand Merchandise, amounting pr. Invoice, to 60 Shares Reading Rail-Road Stock @ $25 Sundry Notes which I hold against others Joseph B. Lownes owes me on % V. C. Burrell & Co. owe " " " 1,125.00 6,250.00 (Par value «50.) 1,250.00 2,875.00 -200.00 341.50 I owe as follows : On Notes held hy sundry persons against me To Charles T. Mayland on % " Burgess & Pinkerton " " , " Levi Williams k Co. " " " Evans, Peters k Co. " ;' 7,000.00 500.00 1,240.56 960.44 1,150.50 Making my Net Capital $1,190. 2d Insured Mdse. in the American Fire Ins. Co. to the Am't of $6,000, @ l^^Prem., for which I have paid Cash Sold to v. C. Burrell & Co., @ 6 mos., 5 Cases, 60 Prs. Men's Stout Boots % $1.75 2 " 24 " " Kip " " 2.00 2 " 24 " " Calf Pegged" " 2.50 1 " 12 " " " Sewed " " 3.50 . 3d . 105.00 48.00 60.00 42.00 v/ / Sold to Walter Stockton & Co. 3 Cases, 180 Prs. Boys' Stout Brogans @ 75/ 2 " 120 " " Kip " " 80 2 " 120 " Men's Goat Nullifiers " 80 2 " 24 " " Stitched Boots " $6 Rec'd. in Payment My Note, Philip Beldon's favor, now due, for Cash for Balance 4th 135.00 96.00 96.00 144.00 320.00 151.00 Accepted Burgess & Pinkerton's Draft on me, @ 30 days' sight, favor Wm. G. Ashton, for 7th Bought of Charles T. Mayland, Mdse., amounting pr. Invoice, to Paid in part by my Draft on Joseph B. Lownes @ sight Remainder Bo't. @ 6 mos. credit 80 200.00 1,800.00 12,04150 10,851 50 90 00 255 00 471 00 67500 2,000 00 DAY-BOOK, SET 11. Philadelphia^ February 9lh, 1858. Paid in Cash my Note, Myers, Claghorn & Co.'s favor, Am't 12th Exchanged Notes with Isaac McGrath, each drawn @ 30 days, for his Accommodation -^— "14th Bailey & Davis, whose Note I hold for $750.36, have failed, and Compbnnded with their Creditors for 70/ on the dollar, J to be paid in Cash and J in Goods. Rec'd in Cash 262.62 Mdse., as pr. Invoice, amounting to 262.63 Lost the Balance 225.11 16th Sold to Allen Thompson 50 Prs. Children's Calf Brogans @ 37*/ 18th Bought of Manly & Co. Mdse., as pr. Invoice, Am't Paid in part by Note of Lyman Bellamy, my favor Gave my Note @ 30 days, for Paid the Balance in Cash 20th 425.00 400.00 375.00 Sold to Thomas Stotesbury & Co. 6 Cases, 300 P/s. Men's Stout Brogans @ $1.10 330.00 5 " 300 " " Kip " " 1.00 300.00 4 ." 240 « Women's " Lace Boots " .60 144.00 2 " 120 « " Calf " " .90 108.00 Rec'd their Note @ 4 mos. for 441.00 Cash for Balance 441.00 882.00 — 21st Discounted my Acceptance of the 4th Inst. @ 30 days, favor of Wm. G. Ashton, Am't Paid in Cash 673.20 Discount on $675, for 16 days, is 1.80 t 28th On the Night of the 22d Inst., my Stock of Goods (with theCtore) were almost entirely consumed by Fire. ^ The small portion recovered was yesterday sold at Auction for Cash, netting, after payment of Auctioneer, Drayman, &c. Rec'd in Cash of the American Fire Ins. Co. the Am't for which I was Insured on my Stock of Goods 81 600 1,200 00 00 75036 18 1,200 75 00 882 00 675 00 32050 O'.OOO.OO ELyCIDArqiONS for journalizing DAT-BOOK, SET II. ^ ' ' " February 2d This Entry of your effects invested must be commenced in your Journal, " Sundries Dr. To Stock," the same as the opening entry to Set I ; and then the different species of property must be debited for the value which you intrust to each, and the different persons for the amount each owes you. Stock (yourself) is Or. for the whole amount of your investment. In entering in your Journal this record of your debts at starting, commence it thus: "Stock Dr. To Sundries," extending into the debit column the whole amount of your indebtedness, to show that Stock (yourself) is Dr. for this amount, at commencing business. Then credit Bills Payable for the Am't of notes outstanding against you, and credit the different persons for the sums due each. See remarks on opening the Journal, page 65. 2d Mdse. is Dr. for the cost of insuring the goods. Cash is Cr. for producing the means (value) to pay the Insurance. Commit to memory the general rule for journalizing, page 62, and apply it constantly. V. C. Burrell & Co. have cost you value in the goods which you have furnished them, without immediate remuneration — and must be debited. Mdse. has produced value in the indebtedness of V. C. Burrell & Co. — and must be credited. 3d Bills Payable and Cash have cost value in Mdse. Mdse. has produced value in your note and the money received. This is one of the notes which were outstanding against you at the commencement of business. It is supposed to have passed from the hands of Philip Beldon to Walter Stockton & Co., and now, coming due, is offered by them in payment for the Mdse. 4th For definition of Draft and Acceptance, see the Vocabulary, page 9. Tour accepting a draft makes it a Bill Payable, and it is the same to you as taking up the draft by giving your promissory note for it : while it is better to the party holding it, as it binds the drawer to payment in case you should fail. Whenever you pay a draft on yourself, either by acceptance or in any other way, the drawer must be debited, because value goes out of your possession, at his request and for his benefit. In tate case, Burgess^^Pinkerton cost value in Bills Payable. 1 7th ^^ Mdse. costs value, and is Dr. — J. B. Lownes produces value by permitting vou to draw upon him in pay ment for a portion of the goods bought; and C. T. Mayland produces 'V8nire*b5^ftirnishing*part\f them without immediate pajonent. Whenever you draw a draft on another person, that person must be credited, as he produces you value by paying the draft. 9th Another note, issued by you prior to the commencement of this business, falls due and is paid. Bills Payable costs value in Cash. 12th Bills Receivable costs value in my note issued. Bills Payable produces value in McGrath's note obtained. J4t,h' Bills Receivable has produced value only to the !m^Mt»c(f!.^he Cash and Mdse. received; but it must be credited ih^full amount of the note, $750.36, in order ttiat the diffei^nice o\ the Bills Receivable account on the Leger may at all times agree with the amount of i^otes on J)&nd unpaid; (Dasll is Dr, for what it has cost, $262.62 — Mdse. is Dr. for what it has cost, $262.63 — andV'ro^^ ^ Loss, which is the*re«lkacie of all your gains and losses, must be debited for the balance, $225.11, in order to transfer the los^to that account. This debit to Profit & Loss, and credit to Bills Receivable of $225.11, is not explained on the principle of debiting what costs value, and crediting what produces value, but it is merely a transfer entry, to carry the loss into its proper account, instead of permitting it to remain in Bills Receivable. 16th Mdse. has produced value in the indebtedness of Allen Thompson. 18th Lyman Bellamy's note is one of those you held against others at commencing business. Mdse. has cost value — Sundries have produced value. N. B. — It is prope? in recording purchases in the Day-Book to say " aspr. Invoice," and omit the items, since your invoice is preserved on file. But in entering sales, the articles should always be specified in •ieta'l. 20th Sundries have cost value in Mdse., and Mdse. has produced value. 82 ELUCIDATIONS {continue^ February 21st A draft which has been accepted by you is styled your "Acceptance^' — another name for it in«(tead of note. DUcountivg a note means paying it before due, for the sake of the discount. Bills Payable (your acceptance) has here cost Talue. Sundries, viz. Cash and Discount, have produced value. , 28th Cash costs value in Mdse. Mdse. produces value in Cash. Insurance oflBces do not generally pay as promptly as here shown : they have usually a proviso in their agreements, allowing from 30 to 60 days' time for payment of losses incurred. TKIAL BALANCE, LEGER, SET II. Dr. Cr. L.F, 1 1 1 1 1 2 2 2 2 2 3 3 3 3 Stock - - . . Cagh . . - Merchandise - - - Reading Rail-Road Stock Bills Receivable - V. C. Burrell & Co. - Bills Payable Charles T. Mayland - Burgess & Pinkerton Levi Williams & Co. - Evans, Peters & Co. Profit & Loss Allen Thompson - Discount - - - INVENTORY-BOOK, SET H. 6,561 1,855 1,250 3,340 596 225 18 13,848 30 1,190 7,680 2,30'b 565 960 1,150 13,848 00 00 00 56 44 50 80 30 There remains on hand unsold, Feb. 28th, 1858 : 50 Shares Reading Rail-Road Stock, which is now selling @ $22 pr. Share 1,100 01 SECOND TRIAL BALANCE, LEGER, SET IL j^ Cr. L.F, 1 3 3 Stock - Profit & Loss Balance 2,228 2,228 69 69 STATEMENTS, SET II. STATEMENT IST, SHOWING NET LOSSES. 1,190 1,038 2,228 O'; 69 69 Losses. Gains. Bills Rec, 30 % of B. & D.'s note Mdse., lost by fire more than gains Reading R.-R. Stock, depreciation Total losses Deduct gains Ifjrliet losses are 226 1,855 150 2,230 1 2,228 Discount on note paid before due 69 (f??l \ 80 STATEMENTS, SET II (continued). S*tATEMENT 2d, SHOWING NET INSOLVENCY AT CLOSING. Resources, or Assets. Liabilities. Reading R.-R. Stock, Am't unsold Cash on hand Bills Rec, held by me V. C. Burrell & Co., Bal. due me A. Thompson, " '« " 1,100 6,561 3,340 696 18 00 92 64 50 75 Bills Pay., held by others C. T. Mayland, Bal. I owe Burgess & Pinkerton, " •' " L. Williams & Co. " " " Evans, Peters & Co. '« " " Total liabilities Deduct assets My net insolvency is 7,680|00 2,300;00 565!56 960 44 1,150 50 Total assets 11,617 81 12,656 11,617 50 81 1,038 69 STATEMENT 3d, PROVING STATEMENTS IST AND 2d. My debts at starting were Add net losses (Statement 1st) 10,851 2,228 50 69 My net capital at starting was Add net insolvency (Statement 2d) Gives net losses (Statement 1st) 1,190 1,038 00 69 Deduct effects invested at starting 13,080 12,041 19 50 2^28 69 Gives my net insolvency (Statement 2d) 1,038 69 Therefore : — In a business commencing with net capital and closing with net insolvency, To find your Net Insolvency : 1st, Deduct the net capital at starting from the net losses in business. 2d, Deduct the total assets from the total liabilities. To find your Net Losses in Business : 1st, Deduct the total gains from the total losses. 2d, Add the present net insolvency to the net capital at starting. QUESTIONS FOR REVIEW, SET II. With what must the Trial Balance of your Leger agree, to show that you have journalized and posted this Set correctly ? Wherein does the business represented in this Set, differ from that in Set I ? What should be debited and what credited in the following transactions, and why ? 1st, Cash paid for insuring Mdse. — 2d, Mdse. sold on account. — 3d, Mdse. sold for your note outstanding and for cash. — 4th, Accepting another person's draft on you. — 5th, Buying Mdse. with your draft on another person, and on account. — 6th, Taking up your note by pay- ing cash for it. — 7th, Exchanging notes with another person. — 8th, Failure of a party whose note you hold, payment of part in cash, part in Mdse., and balance lost. — 9th, Sale of Mdse. on account. — 10th, Purchase of Mdse. for another person's note held by you, your own note, and cash. — 11th, Sale of Mdse. for another person's note and for cash. — 12th, Discounting your own note. — 13th, Sale of Mdse. for cash. — 14th, Receipt of cash from an Insurance Co. for Mdse. destroyed by fire. ^Vhat are the total losses in Set II ? The total gains ? What are the net losses ? How ascertained ? What are the total assets ? Total liabilities ? What is the net insolvency ? How ascertained ? What is the amount of your debts at starting, added to your net losses ? What remains after deducting from this amount your effects invested ? How much was your net capital at starting ? What is found by adding to this your net insolvency ? By what two methods can you ascertain your net insolvency in this Set ? By what two methods can you ascertain yovir net losses in this Set ? 84 SET III, DOUBLE ENTRY. In this Set you are supposed to have made a satisfactory arrangement with your creditors, so as to resume and continue your business, which was summarily ended in the last Set, by your stock of goods being consumed by fire. 85 ^ DAY-BOOK, SET III. Philadelphia, March 1st, 1838. I have the following Eflfects on resuming business. Cash on hand Sundry Notes of other persons, my favor 50 Shares Reading Rail-Road Stock, @ $22 V. C. Burrell & Co. owe me on % Allen Thompson owes " " " 6,561.92 3,340.64 1,100.00 596.50 18.75 I owe on sundry Notes outstanding, favor of others To Charles T. Mayland on% " Burgess & Pinkerton " " " Levi Williams & Co. " " " Evans, Peters & Co. " " '. 1st 7,680.00 2,300.00 565.56 960.44 1,150.50 Bought a new set of % Books, of Murphy & Co., for Cash ■ 2d Bought of Charles T. Mayland Mdse., as pr. Invoice, Am't •Paid him in part by Note of Root, Warden & Co., my favor 1,699.64 Cash for the Balance 1,300.36 Bought of Burgess & Pinkerton, oh.%, @ d mos. Mdse. as pr. Invoice, Am't 3d Sold to Allen Thompson, 6 Cases, 360 Prs. Women's Calf Lace-Boots, @ 5th Paid Levi Williams & Co., Cash, in full of % 8th Sold to B.ent, Foster & Lewis, 10 Cases, 120 Prs. Men's Stout Boots, @ $2.00 240.00 2, " 120 " " Lasting Gaiters, " 1.75 210.00 6- " 360 " Youth's Stout Brogans " .62* 225.00 8 " 480 " « Kip " " .50 240.00 3' " 180 " Children's Calf " " .37" 67.50 Rec'd.their Notes, one @ 30 days for 327.50 " " 60 " " 327.50 " " 90 " " 327.50- 982.50 10th Sold to Blackman & Packard, for Cash, 2 Cases, 120 Prs. Men's Goat Nullifiers, 120 120 120 120 60 60 Wom.en's Grain Buskins " Lasting ^ Gaiters " Col'd " " " Kid Slippers R. R Misses' Goat Lace Boots " R. R. Paris Ties 86 @ 80/5 " 60 " 90 " 85 ," 70 " 75 " 62' 96.00 72.00 108.00 102.00 84.00 45.00 37.50 11,617. 12,^6 20 3,000 81 50 00 00 2j^imo 3^06 960 982 54450 44 50 DAY-BOOK, SET III. Philadelphia, March \Wi, 1858. 450.00 207.00 300.00 216.00 Sold to Wilson, Fenner & Welsh, 6 Cases, 360 Prs. Women's Calf Lace Boots, @ $1.25 3 " 180 " " Goat Buskins, " 1.15 4 " 240 " " Lasting Gaiter-Boots," 1.25 4 " 240 " " Kid Slippers R. R. " .90 Rec'd in payment my Note of 17th ult., @ 30 days, favor of Manly & Co. 400.00 Cash for Bal., including Discount 773.60 1,173.60 The Discount on my Note, $400, for 9 days, am'ts to 16th My Note, favor Isaac McGrath, dated 12th ult., @ 30 days, coming due this day, has been taken up by him, and returned to m,e, for which I have given him his Note, my favor, of same tenor and date , 22d Bought of Myers, Claghorn & Co., at auction, for Cash, Mdse., amounting, pr. Invoice, to 24th Reading Rail-Road Stock having suddenly risen, I have had my 50 Shares sold by a Stock-Broker, @ $30 pr. Share 1,500.00 Rec'd the Cash, less his Com., @ J%on $1,500.00, for sellin g 7.50 27th Thomas Stotesbury & Co. have discounted their Note of the 2Qth ult.,@ 4 mos., my favor, for Rec'd in CJsh 434.53 Discount on $441, for 88 days, is 6.47 30th ^^^^^ ^^=->t Sold to T^. I*. Godwin, for his Note @ 3 mos., 10 (5ases, 120 Prs. Men's Calf Stitched Boots, @ $5.25 630.00 6 " .60 " " " Sewed " " 3.50 210.00 31st Rec'd from the Executors of my Aunt Mrs. Whiteman's Estate, Cash in full of her Bequest to me. No Ins. has been effected in this Set, because it was not deemed advisable to occupy space with the entry. Many other entries, which, in a real business, would occur, such as paying Rent of Store, &c., have been omitted, in this and the other Sets, for a like reason. 1,173 00 60 1,200 1,522 1,492 441 00 36 50 00 840 500 00 00 \ 87 ELUCIDATIONS FOR JOURNALIZING DAY-BOOK, SET IIL March 1st — — The opening entries are so nearly like those of Set II, that I think you -will need no additional explana- tion of them. The old books having been badly damaged by fire, you have closed them up, and purchased a new set for use in the Counting-house. Store Expenses have cost value. Cash has produced value. 2d Mdse. costs value in Sundries. Sundries — viz.. Bills Receivable and Cash — produce value by paying for the goods. Mdse. costs you value. Burgess & Pinkerton produce you value by furnishing the goods without payment. 3d A. Thompson has received value of you to the amount of goods you furnish him — in other words, has cost you value — and is Dr. Mdse. has produced value in his indebtedness. 5th Levi Williams & Co. have received value from you in Cash. Cash has produced value by paying their account. * 8th Bills Receivable costs value in Mdse. Mdse. produces value. 10th Cash costs value in Mdse. 13th Bills Payable and Cash have cost value, and Mdse. and Discount have produced value. As this is the first case in which sundry debtors and sundry creditors occur in the same entry, I will journalize it, to show you the form. Sundries Dr. To Sundries. Bills Payable ----------- 1 Cash 8 To Merchandise - - - -- 3 " Discount 400 00 77360 1,173 In postiil^ this transaction, the entries in the Leger should be "To Sundries," and "By Sundries;" and neither a post nor a post-mark is required to the word " Sundries." 16th On the 12th ult. you exchanged notes with Isaac McGrath for his accommodation, because he could use your note, with his endorsement on it, better than he could his own note. He made uee of your note, and when it came due to-day, paid it, and now returns it to you and receives his note, which he had given you as security. Bills Payable has cost you value. Bills Receivable has produced you value. Mdse. has cost value in Cash. 22d 24th Cash has cost value in Reading R.-R. Stock. Reading R.-R. Stock has produced value. Note. — Stock-Brokers in Philadelphia and some other cities charge commission on the nominal par value of the Stock sold, which, in the Eeading K.-R. Stock, is $50 pr. Share, making, in this transaction, $2,500 on which to reckon commission ; but as this is a local arrangement, I have preferred to estimate commission only on the real price of sale. Cash and Discount have cost value. Bills Receivable has produced value. Bills Receivable has cost value in Mdse. 27th 30th 31st This Cash forms a new investment, and must be credited to Stock, the same as effects invested at the com- mencement of business. The general rule for transactions does not here apply. Cash having been received without value having been given for it. 88 TRIAL BALANCE, LEGER, SET IH. Dr. Cr. L.F 1 1 1 1 1 2 2 2 2 2 3 3 3 Stock .... Cash ... Bills Receivable - Reading Rail-Road Stock V. C. BurreU & Co. Allen Thompson Bills Payable Charles T. Mayland - Burgess & PiiJcerton Evans, Peters & Co. . Store Expenses Merchandise Discount ... INYENTORY-BOOK, SET IIL 538 6,503 1,822 596 378 20 3,138 5 392 6,080 2,300 3,081 1,150 13,004 56 1 13,004 50 00 00 56 50 56 There remains on hand, unsold, Mar. Slst, 1858, Merchandise amounting to* 3,918 51 STATEMENTS, SET IIL The total gains accruing from this business are - - - " « losses " " i( a «... Making the net gains $1,172.65 25.87 $1,146.78 The total assets at closing the books are " " HabiUties " " " " Making the net capital, or present worth - $13,220.15 12,612.06 $608.09 I commenced business with a net insolvency of From which deduct the bequest of my Aunt Whiteman ..... Debit balance of Stock account . - - . - I have gained sufficiently to cover this indebtedness, and to have a net capital now of Making the net gains, as above . . . - $1,038.69 500.00 $538.69 608.09 $1,146.78 My net gains in business have been The debit balance of Stock account is Making the net capital, as above - $1,146.78 538.69 $608.09 Therefore: In a business like the present, To find your present worth : 1st. Deduct the total liabilities from the total assets. 2d. Deduct the debit balance of Stock account from the net gains in business. To find your net gains in business : 1st. Deduct the total losses from the total gains. 2d. Add the present worth to the debit balance of Stock account. ♦ In a real Inventory-Book, of course all the details of the Mdse. or other property unsold would be specified, as ftifi is the yery object of the book. M 89 . QUESTIONS FOR REVIEW, SET III. How can you retain cash, notes and other effects in your possession, and commence a new business therewith, as in this Set, when you are really insolvent at the outset ? [See page 85.] What would you debit, and what credit in each of the following transactions — and why ? 1st. Purchase of a new set of account books for cash. — 2d, Purchase of Mdse. for note of another person in my favor, and for cash. — 3d, Purchase of Mdse. on account. — 4th, Sale of Mdse. on time. — 5th, Payment of cash in full of an account which you owe. — 6th, Sale of Mdse. for three notes of another person. — 7th, Sale of Mdse. for cash. — 8th, Sale of Mdse. for your own note and cash, your note not being yet due, and you being allowed a discount thereon. — 9th, Receipt of your note previously exchanged with another, and relinquishment of the other person's note held by you. — 10th, Purchase of Mdse. for cash. — 11th, Sale of Reading Rail-Road stock for cash. — 12, Discount by another person of his note held by you. — 13th, Sale of Mdse. for another person's note. — 14th, Receipt of a bequest in cash. What are the total gains accruing from the business in Set III ? What are the total losses ? What the net gains ? What are the total assets ? The total liabilities ? The net capital ? What was the net insolvency at commencing ? What was the amount of Mrs. Whiteman's bequest to you ? What is the debit balance of the Stock account after deducting this bequest ? What amount do you obtain, by adding your present net capital to the debit balance of Stock account ? What is this amount called ? What balance remains after deducting the debit balance of Stock account from the net gains in business ? and what is this balance called ? In a business like the present, what two methods are there for ascertaining the present worth ? What two methods for ascertaining the net gains ? GENERAL REMARKS. You have now been presented with three Sets of books by Double Entry : — the first, representing you as commencing business with a snug capital, and without any debts ; pursuing it prosperously, and thus increasing your capital. In the second, you com- menced with greater means in possession, but owing debts to nearly the same amount : — you were attended with misfortune, in the destruction of your goods by fire, without a full insurance, and probably too for want of experience in the business in rhich you engaged, neither bought nor sold to the best advantage ; thus sustaining •« large loss, which swallowed up your net capital, and left you with about an equal insolvency. In the third, you resumed and continued your business so summarily ended in Set II, retaining in your hands all the means left you until such time as you are able to pay your creditors, who are supposed to appreciate your business talents, to confide in your integrity, and to agree to extend the time of payment. Having learned by experience to be more cautious and skilful, you thus make sufficiently large gains to cover your insolvency, and have a small net capital again. A bequest from your Aunt somewhat increases this capital. I now propose furnishing you with some examples of partnership business, both where the partners share alike in gains and losses, (as in Set IV,) and where their shares and interests are unequal, (as in Set V.) I shall also now present you with another style of keeping accounts shorter than the old Italian method, and used by houses engaged in general trading operations, shipping business, and some other mercantile pursuits. It will at first require more thought on your part than the preceding Sets have done, but those you are now supposed to have mastered, and thus to be prepared for a higher step on the road to a thorough knowledge of accounts ; and no task should be thought too hard, which care and patience will overcome, and which will lead to knowledge. 90 SEYMOUR & FITCH. SET IV. DAY-BOOK KEPT IN JOURNAL FORM, AND NO JOURNAL USED. 01 EXPLANATOEY EEMAEKS, SETS lY AND V. The Sets of books thus far shown in this work have all been conducted upon the old Xtalian method. I now propose to show you a plan which is far more in use at the present time, and by which much useless writing will be saved. It is to entirely dis- pense with the Day-Book in History form, and use instead a Day-Book in Journal form, in which the entries are recorded in such a manner as not only to present a complete history of the business transactions, but also to furnish debits and credits under the proper Leger titles, ready for posting ; thus rendering it useless to keep a Journal, and doing away with the labor of journalizing. The general rule for journalizing becomes now a general rule for determining the proper debits and credits in making original entries. I have given a separate history of the business, as it is supposed to have occurred, with elucidations of such transactions as seemed to require elucidating. This history you should be careful to distinguish from the historical Day-Books, which you have already passed over, as it is not used in actual business, and is not intended to take the place of any book which is used ; but is given solely for the purpose of exhibiting the transactions as they would occur before you in actual commercial operations. The postings are made direct from the Day-Book, which is the book of original entry. I have omitted, as in the preceding Sets, the Cash-Book, Check-Book, and all other books used merely as auxiliaries, because your mind will thus be less burdened, and you will the better understand the primary and more important books of entry. The various auxiliary books are shown in connection with Set VI. Instructions for Writing up. Set IV. This Set represents a partnership business, in which the partners invest equal amounts of net capital, and share equally in gains and losses. It is a prosperous business. After examining the form of the Day-Book sufficiently to acquaint yourself with its peculiarities, lay it aside, and turn to the history given of the business. Apply care- fully the directions previously received for opening books, and the general rule for determining what to debit and what to credit, in each case ; having decided which, write down the entry in regular Journal form, mingling therewith sufficient explanations to convey to the mind of a stranger a clear idea of the business transaction. Make out your Day-Book on a loose sheet of paper, and depend upon your own skill in so doing, looking at the Day-Book given as little as possible, until you have completed your own. You can then compare and make any necessary corrections. The next step is to post. Then close up your Leger, make out exhibits, &c., as heretofore shown. In posting, let the partners' accounts be the first accounts opened on the Leger. I have omitted the Index to the Leger ; but this you can make out for yourself, as you post. In closing the Leger, you will observe no Balance account is opened ; but instead thereof, the balances (of such accounts as would be closed into it) are " brought down to new account," in the same manner as in Single Entry. [See explanation on page 18.] The gains or losses in any account go into Profit & Loss, as heretofore ; and Profit & Loss is closed into the accounts of the two partners, half of the net gains to each. When the Leger is entirely closed, take your Second Trial Balance — not to be preserved, but as a mere proof of accuracy. It will consist of all the balances brought down to new account, and, if the Leger be correctly closed, the debit balances will be equal in amount to the credit balances, including the partners' net capital. Instructions for Writing up, Set V. In this Set, there are three partners, sharing unequally in gains and losses, the capital being invested by two of them. It is a losing business. No Day-Book or Leger is given, but only the history and elucidations, from which you can write up your books as explained for Set IV. First prepare your Day-Book on a sheet of paper, and, when corrected, copy it into the blank book designed for it, and post up your Leger also in the accompanying blank book. Draw ofi" statements from your Leger, and compare them with those on pages 109 and 110, with which they should agree. Teachers will again find use for the Key. 92 HISTORY AND ELUCIDATIONS. SET IV. l St. Louis, April 1st, 1858. Bela N. Seymour and Albert Fitch have this day entered into partnership, for five years, under the firm and style of Seymour ^ Fitch, for buying and selling Real Estate, Steamboat Stocks, &c. : — the parties to invest equal amounts of net capital, and to share alike in gains and losses. B. N. Seymour's Efiects invested are as follows : Cash on deposit in the State Bank of Missouri 5,000.00 One-Fourth of Steamboat Sultana, valued at 6,500.00 One-Eighth of Steamboat Neptune, " " 4,500.00 816,000.00 He owes a Note, favor of Blackwell & Co., due May 18th, which the Firm assume, $ 7,500.00 Making his Net Capital $8,500. Albert Fitch's Effects are Cash on hand 8,000.00 A Note in his favor, drawn by Thos. Coleman, due May 22d, 3,525.50 $11,525.50 He owes Debts which the Firm assume, to wit : — To Coffin & Waite 890.00 " Silas George & Son ' 2,135.50 $3,025.50 Making his Net Capital $8,500. ^^©~ There are quite a number of new Leger titlee introduced into thia Set, and they should be care/uUi/ eonsidered. In all the preceding Sets, no Bank account has been kept, and all moneys in bank have been counted as eash, the bank being considered as merely another place for keeping money, instead of the safe, and the account with the bank being regulated by the Bank-Book and the Check-Book, (which should always be kept when there are any dealings with bank, and which will be hereafter explained.) This is the usual method ; but some houses prefer keeping accounts with the different banks with which they deal, in the same manner as accounts with persons, in their Leger — debiting sums deposited therein, and crediting sums checked out In this Set the latter method is illustrated. In the above transactions between the parties at commencing business, observe that — 1st State Bank of Missouri, Steamboat Sultana Stock and Steamboat Neptune Stock have cost the firm value in their obligation to B. N. Seymour. B. N. Seymour has produced the firm value in his investment 2d. B. N. Seymour is Dr. because he costs the firm all that they assume to pay for him. Bills Payable is Cr. because it produces the firm value in the indebtedness of B. N. Seymour. 3d. Sundries cost the firm value in their obligation to Albert Fitch. Albert Fitch produces the firm value in his efiects invested. 4th. Albert Fitch costs the firm value by their assumption of his debts. Co£Sn ' '^^ ^ ^'><. V ^^ ^^ Shipment to Galveston has cby^alue in BiHs'.Pi^^le. ' '"* ' V "v 17th Sold to Richard Stockton & Co. 20 Hhds. N. 0. Molasses, 2,000 Gals. ©"27/; 100 Bbls. Prime Beef @^9 ; 100 Bbls. Mess Beef @ $11.50. Bec'd Cash in part, $1,295 ; their Note @ 60 days, for Bal., including Discount, $1,308.74. The Discount on Note ($1,308.74) is for 63 days. Cash and BiUs Receivable have cost the firm value. Mdse. and Discount have produced value. Reckon this discount in the same manner as interest is calculated, and if right, the amount obtained and the total amount of Mdse. here sold, added together, will equal the gross sum of the money and note received in payment. 7-^. 18th Accepted Claremont, Smith & Co.'s Draft on us, @ 30 days' sight, favor of Oakland & Co.,^r $1,000. Claremont, Smith & Co. have cost the firm value in Bills Payable. ^ 23d Shipped, pr. Steamboat Ben Franklin, to T. W. Boswell & Co., Vicksburg, for their %, and pursuant to their order, 150 Bbls. Mess Beef @ $11.50. Paid Drayage in Cash, $4.75. Here the goods are not shipped for your own account, but for account of another party who ordered them. This is therefore a regular sale; and T. W. Boswell & Co. have cost you value in Mdse. aild in Cash. 107 3 HISTORY AND ELUCIDATIONS, SET V. Cincinnati, June 26th, 1858. Rec'd intelligence that the Steamboat Buena Vista, on which we made a Shipment on the 14th inst., was wrecked in the Gulf of Mexico on the 20th inst., — Boat and Cargo total loss. This is a mere memorandtun, to prepare you for the entry of the 29th inst, and showing that in the course of business the firm would now receive this information. /( requires no Bay-Book entry. 26th Discounted our Acceptance of the 18th inst., @ 30 days' sight, Oakland & Co.'s favor, Am't $1,000. Discount for 25 days on $1,000 is $4.17 — Bal. paid in Cash. Bills Payable has cost value in Cash and Discount 28th Paid George Anderson Cash for private use $200. 29th / The Cincinnati Mutual Ins. Co. has failed, and is able to pay but 10^ on the dollar, of its indebtedness. Accordingly we have received from the Assignees 10^ on the Am't of our Ins. on Ship't to Galveston of 14th inst., pr. Steamboat Buena Vista, which was wrecked in the Gulf of Mexico on the 20th inst. — Boat & Cargo total loss. Am't insured $2,608.61 @ 10% = $260.86, for which we received our Note of 14th, @ 15 days, $33.61 ; and Cash for Bal. The loss of goods belonging to Shipment to Galveston is the means of the firm's receiving $260.86. Ship- ment to Galveston has therefore produced the firm that amount of value in Bills Payable and Cash. Rec'd an Account-Sales from Osterhaut & Evans, Mobile, of Ashes and Beef sent them on the 7th inst. Net proceeds $2,976.15. Rec'd also a Draft, remitted by them, on Biddle Brothers, at sight (for part proceeds), which has been paid in Cash, $1,500.00. An Account-Sales is a detailed statement of the sales of goods, and of the charges attending the same. Adventure to Mobile has here produced value in Cash, and in the indebtedness of Osterhaut & Evans for the portion of proceeds stiU in their hands. 30th Rec'd an Account-Sales from Goodhue & Co., New Orleans, of 200 Bbls. Mess Beef, belonging to Ship't to them of 4th inst. Net proceeds ^2,380.86. Shipment to New Orleans has produced value in the indebtedness of Goodhue & Co. Paid Cash for Rent of Store $75 ; for Clerk hire $100 ; for Laborers $38. Due to Timothy H. Porter for Int. on Capital invested, $10,000, for one mo., $50. " " David Harrington « " " " " $10,886.64 " " $54.43. Interest has cost the firm value in their indebtedness to each of these two partners. T. H. Porter, and David Harrington have each produced the firm value in the use of capital invested. 108 TRIAL BALANCE, LEGER, SET V. Dr. Cr. L.F. 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 Timothy H. Porter - David Harrington - - - George Anderson Cash Merchandise - - - Bills Payable - - - Interest, Discount & Premium Shipment to New Orleans Store Expenses - - - Claremont, Smith & Co. - Adventure to Mobile - Shipment to Galveston - Bills Receivable T. W. Boswell & Co. - Osterhaut & Evans - Goodhue & Co. - - - 200 00 9,906 04 5,237 75 96 54 396*36 243 00 2,347 1,308 1,729 1,476 2,380 25,322 94 10,050 10,941 2,610 1,225 496 25,322 00 07 72 00 15 94 INVENTORY-BOOK, SET V. II = Property remaining unsold June 30th, 1858 : Merchandise^ 175 Bbls. Mess Pork @ $9.00 1,575 00 150 " " Beef " 11.00 1,650 00 50 " Beef Hams « 16.00 800 00 30 Hhds. N. 0. Sugar, 30,750 lbs. « .04^ 1,460 63 10 " " Molasses, 1,000 Gals. « .26^ 262 50 5,748 13 Shift to New Orleans, 125 Bbls. Superfine Flour « 4.25 531 25 6,279 38 STATEMENTS, SET V. The total losses of the firm in this business have been gams Making the firm's net losses - Timothy H. Porter's share is f = $618.35 David Harrington's " " f = $618.35 George Anderson's " " i = $309.17 - $2,687.29 1,141.42 - $1,545.87 The total assets of the firm at closing are " " liabiUties" " " " " $23,080.92 3,835.72 Making the firm's net capital or present worth $19,245.20 109 STATEMENTS {continued). Timothy H. Porter invested at commencing - - - - $10,000.00 ' Add interest, as agreed - . - . - . 50.00 Total credit to his account - - - $10,050.00 Deduct his | net losses, as before - - - - 618.35 His net capital is .... $9,431.65 David Harrington invested, at commencing, a net capital of - - - $10,886.64 Add interest, as agreed ..-..--. 54.43 Credit balance to his account $10,941.07 Deduct his f net losses, as before - - - - - - 618.35 His net capital is - - - ... $10,322.72 George Anderson has drawn out for private use, as pr. total debit to his account $200.00 Add his ^ net losses, as before 309.17 His net insolvency is - - - - $509.17 . , , J Porter's net capital or present worth - - - . . $9,431.65 ^^^ \ Harrington's " « « « 10,322.72 $19,754.37 Deduct Anderson's net insolvency ..--.. 509.17 Firm's present worth, as before - - - . $19,245.20 Therefore : — In a partnership business with three partners, like the present, in which two of the partners invest the capital, while the other partner invests nothing, but draws out for private use, and they do a losing business. Deduct total gains from total losses — to find the firm's net losses. Divide firm's net losses, according to the original agreement — to find each partner's share of net losses. Deduct total liabilities from total assets — to find the firm's net capital. Deduct the net losses of each partner who invests capital from the credit total, or balance, of his account — to find his net capital at closing. Add the net losses of the partner who makes no investment to the debit total (or balance) of his account — to find his net insolvency at closing. Deduct the net insolvency of one partner from the sum total of the net capitals of the other two — to find the firm's net capital — ^which must agree with the difi'erence between the firm's assets and liabilities. Note. — It will be seen that the net capital of Porter and of Harrington consists in part of the indebtedness of Anderson to the firm. 110 DETECTION AND CORRECTION OF ERRORS. Much has been said and written about the detection of errors in Book-keeping, and many so-called infallible schemes have been put forth, by which to discover at a glance whether an error exists, and, if so, to trace it to its origin. But no plan has yet come before the public which will bear the test of rigid scrutiny ; and the only certainty of accuracy in every respect appears to be an examination of items in detail. The Trial Balance is the best short test of correctness in posting yet discovered, and this is defective, inasmuch as errors may exist while the Trial Balance is apparently entirely correct : — such as posting to the wrong account, although on the right side ; omitting to post a debit and a credit of equal amount, &c. But if the Trial Balance is not in equi- librium, there is certainly an error, which must be sought and corrected. Detection. 1st. See whether the pencil footings on the Leger, made preparatory to taking tne Trial Balance, are correct, and whether the balances of the different accounts have been transferred into the Trial Balance rightly. 2d. If there is still an undiscovered error, examine each post separately, checking the entries in both Journal and Leger as you proceed, until you have been over the whole ; and then look through again, to see if any amount remains unchecked, and, if so, investigate the cause of the omission. In this manner, you can scarcely fail to discover the mistake, provided the Journal is correct ; but great care should be taken to see that the Journal is in equilibrium before posting, as any discrepancy there will give you much trouble in the Leger. Correction. In the Bay-Booh (or any other book of original entry) erasures are not admissible, since this book is taken as evidence in courts of justice, and any thing obliterated or erased looks suspicious, would probably render invalid the entry with which it is con- nected, and in some cases might even throw the whole book out of court, as evidence unfit to receive. Errors in it should therefore be corrected by making other entries explaining them ; or the erroneous entry, if it has not been journalized, may be marked "Void," and remain without further alteration, a new and correct entry being made of the transaction. In the Journal, erasures are sometimes admissible, although it is generally advisable to treat errors as directed for the Day-Book. In the Leger, if an entry be posted to the wrong account, or to the wrong side of the account, make ciphers of the figures, and leave the remainder, so as not to deface the Leger ; then post the entry to its proper place. If a wrong amount be posted, alter it to the right. And if a duplicate post be made, make ciphers of the figures in the erroneous one. QUESTIONS FOR REVIEW, SET V. How many partners in Set V ? "^ How do they share in gains and losses ? ( ^ ^ .il Questions see mw ^2 How many of the partners invest capital 1 C^^^ answers to these questions, see page MZ. Is it a gaining or losing business ? J In the following transactions of a firm, what are the debits and credits — and why? 1st, Investment of cash by one partner. — ^2d, Investment by another partner of cash and Mdse. — 3d, Assumption by the firm of notes outstanding against that partner. — 4th, Sale of Mdse., and receipt of payment by Mdse., by a note of the firm outstanding, and by cash — the note not being yet due, and they being allowed a discount thereon. — 5th, Payment in cash of the firm's note with interest on same from date. — 6th, Purchase of Mdse. for Mdse. and cash. Ill QUESTIONS FOR REVIEW {continued). — 7th, Shipment of Mdse, to New Orleans, to be sold for account of the firm, and payment of drayage on same in cash, and of insurance by firm's note, — 8th, Purchase of Mdse. on account. — 9th, Shipment of Mdse. to Mobile to be sold for account of the firm, and payment of drayage and insurance on same in cash. — 10th, Receipt of Mdse. previously ordered from abroad, but not paid for, and payment of freight, drayage, &c. on same in cash. — 11th, Purchase for cash, @ 1% premium, of a bill of exchange, and remittance of same to pay an account which the firm owe. — 12th, Purchase of wheat by firm's note, and shipment of same to Glalveston to be sold for their account, insurance thereon being also paid by their note. — 13th, Sale of Mdse. at cash price, receiving part cash, and for the balance a note sufficiently large to cover discount thereon, so as to make it equal to cash. — 14th, Acceptance by the firm of a draft on them. — 15th, Shipment of Mdse. to another person, pursuant to his order and for his account ; and payment of drayage in cash. — 16th, Discounting, by the firm, of their acceptance outstanding. — 17th, Payment of cash to a partner for private use. — 18th, Receipt of the firm's note and cash from an Insurance Co., for 10 % on the amount insured on goods shipped to Galveston, which have been wrecked. — 19 th, Receipt of an account-sales of goods consigned abroad, ac- companied by a draft for a portion of the amount, which you immediately convert into cash. — 20th, Receipt of an account-sales without any remittance. — 21st, Payment of store rent and clerk hire in cash. — ^22d, Allowance of interest to two partners on capital invested What are the total losses of the firm in Set V ? The total gains ? The net losses ? What is Porter's share of the net losses ? What is Harrington's share ? What is Anderson's share ? What are the total assets of the firm ? The total liabilities ? The net capital ? What is the net capital of Timothy H. Porter ? How ascertained ? What is the net capital of David Harrington ? How ascertained ? What is the net insolvency of George Anderson ? How ascertained ? What is the balance resulting, by deducting Anderson's net insolvency from the amount of Porter and Harrington's net capitals added together ? ^ In such a business as Set V represents, how can you find the firm's net losses ? How each part- ner's ? How can you find the firm's net capital ? How can you find the net capital of each partner who invests capital at starting ? How the net insolvency of the partner who makes no investment, but draws out funds for private use ? If you deduct the net insolvency of one partner from the sum total of the net capitals of the other two, what will the difierence show : — with what must it agree ? QUESTIONS ON DETECTION AND CORRECTION OF ERRORS. Has any short and infallible method been discovered for detecting errors in books ? What afibrds the only certainty of accuracy in keeping books ? What is the best short test of correctness in posting yet discovered ? Why is this test defective ? Mention some errors that may exist when the Trial Balance is apparently correct. If the Trial Balance is not in equilibriima, what may you be certain of? Explain how to detect errors made in posting, or taking a Trial Balance. How should an error be corrected in the Day-Book ? How should an error be corrected in the Journal ? How should an error be corrected in the Leger ? 112 BALANCE SHEETS AND LEGER ACCOUNTS. 118 BALANCE SHEETS EXPLAINED. Take a sheet of unruled foolscap or letter paper, and draw a double red line around it close to the edge, for a border ; then draw a pencil line across the sheet lengtlnvise, about three-quarters of an inch from the border on one side ; follow this with two other pencil lines, one-half that distance apart ; then draw a double red line under the first and last pencil lines. This serves for a heading. For ^^ Stock" Sheets, commence under this heading, and rule enough lines, with pencil, to receive all the accounts in your Trial Balance, and leave eight extra. Now turn the sheet, so that the heading will be at your left, and commence ruling, with red ink, the money columns, after the pattern shown on the following page, dropping three lines after "Balance," two after "Stock," two after "Profit & Loss," and one after "Face of Leger." Next rule the footing and closing lines at the bottom of the columns. In '■^Partnership'' Sheets, for two partners, rule twelve more pencil lines from the heading than your Trial Balance contains accounts ; then, in ruling for the money columns, drop four lines after "Balance," two after the first partner, two after the second partner, three after "Profit & Loss," and one after "Face of Leger." For three partners, rule sixteen extra pencil lines ; and, in ruling for the money columns, drop five lines after "Balance," two after the first partner, two after the second, two after the third, four after "Profit & Loss," and one after "Face of Leger." Having prepared your Sheet thus, and made the proper headings to it, first bring into it the Trial Balance of your Leger, which, you will now observe, is called in the Balance Sheet, "Face of Leger." Next, enter to each property account the property remaining unsold, as pr. Inventory- Book; placing the amount in small red ink figures in "Face of Leger" column, on the credit side, immediately below the line containing the difi"erence of said account ; and making the opposite entry in " Balance" column, on the debit side, in black ink. At this state, the sheet is like the Leger when ready to close. You will now transfer the diflference of Stock, as shown in the " Face of Leger," into the column appropriated for it, headed " Stock ;" then follow with the next account in order, taking its difierence into "Profit & Loss," or "Balance," agreeably to its nature; and thus continue until all the accounts in the "Face of Leger" have been transferred. In each speculating property account which has a balance of property unsold, as shown by the red ink entry in " Face of Leger" column, this balance must be counted in as a credit to the account, and then the difference must be transferred into "Profit & Loss." After finishing all these transfers, "Stock," "Profit & Loss," and "Balance" only remain open, and the Balance Sheet corresponds to the Leger when ready for taking the Second Trial Balance. Finally, close "Profit & Loss" into "Stock," when the differences of the "Stock" and "Balance" columns should just equal each other, and should both show your Net Capital, or Net Insolvency. Footing up these columns completes the Balance Sheet, which will now be found to agree with your Leger when closed. Balance Sheets are given for Sets I and IV. You may make these out for youp self, and also make those for Sets II, III and V. Note. — When the personal accounts are numerous, they may be summed up together, under two heads, "Personal %j due me," "Personal %j I owe." See page 168 High School edition, or 238 Counting-House edition. 114 t 1 o o o o o o to "-• o CO o t- t— cq OS d Ci ""H CO «o OO 05 lO tO^ *^ .... "=> O tH o tH to t- > -a 1 •tj .s ' ii 0 >0 ^ rti rH . . G<1 CO T-l CM CM >■ G■>»> « »^ o • O O CO • o ; CO o iO O CO o 1 CO 00 u • • lO • • CO • O CO • o o S5- -5^1 o ir- t- rH T-i 00 a PQ <*J CO ^ ■w» O to O O 1 lO «3 O t) * • • • • • • 'O • rH • • 1— t f— 1 1 CO ^ o »o ■* ■* CO Ph o • • • • ' • • ' lO ' ' ' t- »^ o -* -4 t-H QO CI (M -^ o o o o O O .o = ■= o .s: O o o " o o * o o ■=■ * * => o O O O CO LO O => ■=■ ® r-^ p o O lO • »0 G^ • CO o •=> • •* • • ■= r-i ^ fcD >0 "^ t^ 1— 1 t- O ■" o « CD ^iO 1-4 00 CO . . r-t •«•.«. . ^- o . .O lO o CO o o:. 1-H H ^- P=q Bela N. Seymour Albert Fitch State Bank of Missouri Steamboat Sultana Sto Bills Payable . Cash . Real Estate Pike Co. Bonds & Mortgages Paj Real Estate Main St. Profit & Loss Steamboat Sioux Stock Interest & Discount Bonds&Mortgages Rece State Bank of Missouri a:! 00 in on o I-H .a o ■^' — M CO 1 ! 116 LEGER ACCOUNTS If you have written up the several preceding Sets of books, individual tmd partnership, you Lave been made acquainted vrith the main facts a.nd principles which govern the science of Double Entry Book-keeping, in journalizing, posting, opening and closing Legers, and making out exhibits there- from. Before proceeding further, it will be well to note the application of these principles to the different Leger accounts, tracing out the reasons for every debit and credit therein contained, and thereby fixing in the mind such facts as are necessary to guide you in your future progress. I shall, therefore, here furnish a concise explanation of the various accounts which occur in the more simple business operations, omitting such as pertain exclusively to Shipping and Commission business for a subsequent part of the Counting-House edition. Observe the fact, that the rule for journalizing is constantly applied in these explanations; thus showing that it is not only of utility as an assistant in journalizing, but is the main key for unlocking aU the treasures of the science. Cash. The Cash account is kept to show the amount of cash received, the amount paid out, and the balance on hand at any time. Cash costs value, and is debited, when it is received ; consequently, the debit side shows the amount received. Cash produces value, and is credited, when it is paid out ; consequently, the credit side shows the amount paid out. • The balance on hand is ascertained by deducting the total credit from the total debit. The debit side is always the larger as long aa there is any cash on hand, since cash must be received before it can be paid out. This account is closed " By Balance." Note. — When no BdUuux account is opened in the Leger, the entry in dosing Cash is " By Balance to new account," — and so In ffanilar closuies. Merchandise, and other Speculating Property Accounts. Merchandise account is kept to know the cost and proceeds of merchandise ; and as a consequence, the gains or losses thereon. Merchandise costs value when it is purchased — it is debited when it costs value — and consequently the debit side show's its cost, or purchases. Merchandise produces value when it is sold — it is credited when it produces value — and consequently the credit side shows its proceeds, or sales. When all is sold, the difference between the two sides will be a gain or loss. If a portion of goods remains on hand unsold, this balance must be credited to the account, prior to closing, as an offset thus far against its cost. If the debit side is the larger, it is closed " By Profit & Loss," if the credit side is the larger, " To Profit & Loss," always into Profit & Loss. Real Estate, Bank Stock, Rail-Road Stock, Steamboat Stock, Shipment accounts. Adventure accounts, and all other speculating property accounts, are kept for the same purpose, and treated in the same manner as Merchandise account. Personal Accounts. Accounts are kept with persons to show your business dealings with them. A person is debited when he is the occasion of any outgo or expenditure to you ; in other words, whenever he costs you value ;. and he is credited whenever he produces you value in any way. The debit side shows what the person owes you. "I f The difference shows the balance The credit side shows what you owe the person, j \ either due you or due hirc TJiese accounts are closed either " To Balance" or "By Balance." 117 ^ LEGER ACCOUNTS (continued). Sundry Debtors. Sundry Creditors. Sundry Debtors. — This account is the representative of persons who owe you, and is used to avoid opening numerous petty accounts upon the Leger. It contains entries to persons with whom your deah'ngs are too limited to open a separate account to each. On the debit side of the account, in the Leger, instead of writing " To Merchandise,'' (or "To" whatever other title constitutes the balancing entry,) it is customary to place the name of the person who is debtor, thus — " To John Barbour," " To Samuel Black," &c., — and by this arrangement you can see in the account who it is that owes you. Then each credit is commonly posted on the same line as the debit which it cancels — leaving a blank space opposite to the names of such persons as have not paid. The closure is " By Balance." Sundry Creditors. — This account is exactly the reverse of Sundry Debtors, in its treatment and the mode of entry to it : — and is kept for the same purpose, viz. to avoid opening numerous petty accounts upon the Leger. Note. — When no Balance account is opened, these accounts would be permitted to remain unclosed, as each line constitutes in feet a separate account, and has its own independent balance. * Bad Debts, or Suspended Debts. Into this account are transferred such personal accounts as are considered of too doubtful a character to be relied upon as constitutuag a part of your assets. It is closed " By Balance," but whenever any portion is positively ascertained to be bad, that portion is closed into "Profit & Loss." Bills Receivable. The object in keeping this account is that you may know the amount of other persons' notes received, the amount that has been paid, and the balance yet due you. Whenever you receive a note, it costs you value, and this account is debited ; therefore the dehit side shows the amount of notes received. When a note which you hold is paid, it produces you value, and this account is credited ; therefore the credit side shows the amount paid. The dehit side is always the larger, if either, and the excess shows the balance of notes on hand unpaid. When all the notes you hold are paid, this account closes itself; but if any remain unpaid, it is closed "By Balance." Bills Payable. Bills Payable account is kept that you may know the amount of your own notes issued, the amount taken up, and the balance still outstanding against you. Whenever you issue a note, it produces you value, and Bills Payable account is cre- dited, hence the credit side shows the amount of notes issued. When a note which you have issued is taken up by you, it costs value, and Bills Payable account is debited, hence the dehit side shows the amount taken up. The credit side is always the larger, if either, and the excess shows the balance of notes outstanding unpaid. When all the notes issued are paid, this account closes itself, but if any remain unpaid, it is closed " To Balance." Bonds (h Mortgages Receivable. Bonds & Mortgages Receivable are a class of Bills Receivable, and might be kept under that head, but it is usually preferable to open a separate account, which is treated precisely like Bills Receivable. 118 LEGER ACCOUNTS, (continued). Bonds ^ Mortgages Payable. Bonds & Mortgages Payable are a class of Bills Payable. This account is treated precisely like Bills Payable account. Bank* When a Bank account is kept, it is similar in its treatment to Cash and Bills Receivable, the debit side showing the amount of value deposited in bank, and the credit side the amount checked out : consequently the difference is a balance in bank — closed "By Balance." Generally no Bank account is kept in the Leger, and sums of money in bank are counted as cash on hand in balancing the Cash account. Your dealings with the bank would then be regulated by the Bank-Book and Check-Book. Premium, Interest, Discount, Exchange, Commission, Guarantee, Insu-" ranee. Expenses, Charges, ^'c, ^ These and similar accounts are kept to ascertain what they cost you, what they pro- duce you, and, as a consequence, whether you gain or lose thereon. Excess of debit shows a larger amount of cost than proceeds, and a consequent loss upon the account ; while excess of credit shows a larger amount of proceeds than cost, and a consequent gain. These accounts are always closed into " Profit & Loss." Remittances. Remittances account is used for preserving a record of sums sent to agents to be applied by them for your benefit, according to your direction. This account costs you value, when you send the money abroad, and is debited ; hence the debit shows the amount remitted to your agent. It produces you value, when the money previously charged to it is used in transacting your business, or is remitted to you again ; hence the credit shows the amount disbursed by your agent. The difference shows a balance still in the hands of the agent, and is closed "By Balance," the debit being always the larger, if either. This account may also be used for preserving a record of sums remitted to yoUy to be disbursed for others. In this case the credit side would receive the first entries, and would be the larger so long as any funds remained in your possession ; and therefore the closure would be "To Balance." m*- Loans. This account is used as the representative of persons to whom you loan and of whom you borrow money. The debit side contains sums loaned by you to others, and payments by you of moneys previously borrowed of others, because in these cases the Loans account costs value. The credit side contains sums borrowed by you of others, and payments by others of moneys previously loaned to them, because in such cases the Loans account produces value. If the debit is larger, it shows you have money due you on loans — if the credit 13 larger, it shows that you owe borrowed money. It is closed " To" or " By Balance." ^ 119 LEGER ACCOUNTS, {continued). Profit 4* Loss. This account is the receptacle of your gains and losses in business. During the business, any outgo or expenditure which has no other appropriate account for its recep- tion, is debited to this account, and any income which cannot properly be classed under another head, is credited to this account. In closing the books, all gains and losses are transferred into this account, losses being placed on the debit, and gains on the credit, as in the accounts from which the transfer is made. Therefore : — The debit side contains losses. The credit side contains gains. The difference shows net gains or losses. This account is closed into Stock, or into the partners accounts. Stock. This is your representative, when conducting business without a partner, and is used instead of your own name. Debts at starting, sums drawn out during the business, and net losses at closing, are placed upon the debit side of Stock : — EflFects invested at starting, sums invested during the business, and net gains at closing, are placed upon the credit side. After receiving the gains or losses, if the credit of this account is the larger, the excess is your net capital ; if the debit is the larger, the excess is your net insolvency. It is closed into Balance. Partners' Accounts. The debit side of a Partner's account contains debts assumed by the firm for him, either at starting or during the business, sums received by him from the firm, and his share of the net losses at closing : The credit side contains his investment at starting, sums invested during the business, and his share of net gains at closing. After receiving the gains or losses, an excess of debit shows net insolvency, an excess of credit net capital. The account is closed into Balance. Balance. When this account has received all the balances which are closed into it, the debit side contains the available means of the individual or firm whose business is represented, consisting of property on hand, and balances of accounts due, styled resources or assets. The credit side contains the indebtedness of the individual or firm, styled liabilities. If the diifference be a debit excess, it is net capital; if a credit excess, it is net insolvency. The balance brought down from Stock account closes this account. In a partnership, the balances from the several partners' accounts close it. N. B. The final proof of Double Entry Book-keepinq consists in the agreement of Stock and Balance diflFerences ; and is the result of an arrangement to bring all the gains or losses of the business through Profit & Loss into the account of Stock, thus increasing or diminishing that account just in the same pro- portion that the assets and liabilities are increased or decreased, as shown in the Balance account. In the closure of the Legers to the first three Sets of books given in this work, a Balance account has been used, believing that you would thereby obtain a better knowledge of the agreement between accounts which show gains and losses, and accounts which show assets and liabilities. In actual business, however, this account is seldom, or never, used, and it is therefore omitted in the other Legers given. But the same principles apply in closing Legers without the Balance account as with it ; and the same proof exists, since the assets and liabilities are as really contained in the Leger, although found under the various accounts isnally closed into Balance. (Continued on page 183 Counting-House edition.) 120 QUESTIONS ON LEGER ACCOUNTS. For what purpose is the Cash account kept ? What does the debit side show, and why ? What does the credit side show, and why ? How is the balance on hand ascertained ? Which side must be the larger, if either ? How is the account closed ? Why is Merchandise account kept ? What does the debit show, and why ? What does the credit show, and why ? When all is sold, what will the diflference between the two sides be ? If a portion remains unsold, what is to be done prior to closing ? How is this account closed ? Why are Real Estate and other speculating property accounts kept, and how treated ? For what object are personal accounts kept ? What is shown upon the debit ? What upon the credit ? What by the difference ? How are these* accounts closed ? Of what is the account of Sundry Debtors the representative ? Why is it used ? What does it contain ? How are entries made therein ? How closed ? Explain the account of Sundry Creditors, and its use. Explain Bad Debts, or Suspended Debts. For what is the account of Bills Receivable kept ? ' What does the debit show ? What does the credit show ? Which side is the larger, if either, and what does the excess show ? How do you close this account ? Explain the object of Bills Payable. Explain the credit — the debit. Which side is the larger, if either ? How is this account closed ? Explain Bonds ^ Mortgages Receivable. Explain Bonds ^ Mortgages Payable. To what is Bank account similar in its treatment ? What does the debit — the credit — and balance of this account show ? How closed 'i Is a Bank account usually kept in the Leger ? Why are accounts kept with Premium, Interest, Expenses, and the like ? What is shown by an excess of debit ? What by an excess of credit ? How are such accounts closed ? For what is Remittances account used ? When do you debit, and when credit Remittances, and why ? Which side of Remittances is usually the larger and how is the closure made? For what other purposes may this account be used ? What does the Loans account represent ? What does the debit side contain ? What does the credit ? What does the difference show, and how is the account closed ? Of what is Profit ^ Loss the receptacle ? During the business, with what is it debited and credited ? In closing the books, what are transferred into it ? What does the debit contain ? What does the credit ? What does the difference show ? How is the account closed ? Whom does Stock represent, and instead of what is it used ? d What items are placed upon the debit side ? What upon the credit ? How does it show the net capital, or net insolvency ? How is it closed ? What does the debit, and what the credit of a Partner s account contain ? After receiving the gains or losses, what does the difference show ? How clo?ed '( What is contained on the debit side of Balance account ? What on the credit ? What does the difference show ? How is the account closed ? Wherein does the final proof of Double Entry Book-keeping consist ? Of what is it the result ? Is Balance account generally used in business ? Does the same proof of correctness exist in closing without a Balance account as with it ? 111 THOMAS HARYEY & CO. SET VI. FOREIGN SHIPPING AND GENERAL COMMISSION BUSINESS. 128 EXPLANATORY EEMAEKS, SET VI. In every thing connected with this Set, my endeavor has been to make it pre-emi- nently prac^e'caZ. To accomplish this the better, I visited, in the spring of 1849, some «ight or ten of the heaviest shipping-houses in New York and Philadelphia, and con- versed at length with the Principals, and with their Book-keepers, on the nature of foreign transactions; the port-charges, duties, and other expenses incidental to traf- ficking at foreign ports ; the method of making payments in, and the currency of different countries, &c. &c. I procured actual foreign Invoices, Account-Sales, and Account-Currents : examined into the method of keeping books adopted by the different Accountants with whom I conversed, and compared their ideas with my own : had interviews also with several gentlemen who were formerly Captains in the East India trade : and have thus striven to embody the experience of many, for the good of all who may take the trouble to investigate the following pages. There are some details connected with this business which are too extended to be embraced within any limits that could be reasonably appropriated to it, but a little thought will readily supply them. Such details as are given may be relied upon for accuracy, especially in the Adventures to Canton and the West Indies, in which the pro- portionate expenses, the time required to make the voyages, and the season of year best adapted to them, have been carefully arranged. The length of the Canton voyage has forced me to occupy about a year's time with this Set, and I have divided this time into three periods of four months each, in order to represent, so far as the closing of the books and the agreements of the partners are concerned, a three years' business — the first two years with two partners, and the last with three partners. At the end of the first year (represented by four months) the accounts are closed in the Leger, by bringing the balances down to new account ; and at the end of the second, when another partner enters the Firm, the books are supposed to be full, and new ones to be purchased, into which the business is transferred. The two Day-Books and Legers are distinguished by being lettered "A." and "B." The Cash-Book, in conformity with the usual practice of Shipping-houses, is made one of the main hooks of original entry, and then, at the end of every month, the entries from it are transferred into the Day-Book, from which all postings are made to the Leger. By this means, the Cash account, to which the debits and credits are very numerous, receives but one debit post and one credit for each month. Note. — Interest, in this Set, as throughout the work, is calculated at six per centum, although seven per centum is the legal interest Jn New York State, the rate varying in different States according to special statutes therein enacted. CASH-BOOK, SET VI. The Cash-Book is always an important book, for the Cash account is found to be the most difficult to keep correctly of the whole list of accounts, because Cash is the basia of all trade, and is constantly passing out for purchases and expenses, and coming in for debts and sales. In Double Entry, as well as in single, the debit side of this book contains all cash recp\j^ed, and the credit side all cash paid out, and the difference between the two sides (or the debit excess) should always show the exact amount of cash on hand, counting — if you keep no Bank account in the Leger — the amount in bank, as well as that which is not in bank. This balance should also agree, at all times, with the balance of the Cash account in the Leger, when that account is posted up. In connection with Sets I to Y inclusive, a Cash-Book would be only for the purpose just mentioned, to preserve the Cash account from errors ; but, as used in this Set, it has another and still more important office, for it is the exclusive and only book of original entry for cash transactions, and the Leger titles (as well as the explanations) should be carefully ascertained and correctly recorded, otherwise the Day-Book entries therefrom will be erroneous. Although generally the Cash-Book may be balanced daily, or at such times and as often as suits the taste and convenience of the book-keeper, yet, as here used, it will be found more convenient to make a formal balance of it but once a month ; in order that the monthly total debit footing of this book (less the balance 124 CASH-BOOK {continued). brought down at the commencement of each month) shall agree with the gross amount of the entry "Cash To Sundries" in the Day-Book; and that the total credit footing (less the balance at the close of each month) shall agree with the gross amount of the entry " Sundries To Cash" in the Day-Book. But once a week, or as often as it is wished to make trial of the correctness of the Cash account, the debit and credit columns may be footed up on a scrap of paper, and then the amount of cash in bank (as shown by the Check-Book) and the amount in Safe may be added together, and if their sum be equal to the difference of the cash columns, it proves the account correct. Some transactions require entries on both the debit and credit sides of the Cash-Book at the same time, as, for example, on the 10th Nov., we have Cash Dr. " To Bills Re- ceivable, No. 8, discounted at Phenix Bank, $5,530.42," as if the firm actually received the full amount of the note ; and then, on the opposite side. Cash Cr. " By Discount on Bills Rec, No. 8, pr. contra," for the discount on the note. In making out Account-Sales and Account- Currents, the Cash-Book, which is not posted until the end of the month, must be examined, to see if any items are entered on it which will affect the Account-Sales or Account-Current. So also in the settlement of accounts with individuals. LEGERS, SET VI. The accounts of Ship Massachusetts and Adventure to Canton are both left open in closing Leger A, because there is no means of ascertaining the value of the property unsold belonging to either of them. As Insurance has been effected thereon, however, it may be considered safe for the firm to estimate each of these accounts as secure for its cost thus far, and to let them remain open, counting nothing gained or lost upon them as yet. There are various ways of transferring accounts from one Leger to another. Some open a Balance account in the old Leger, closing all the accounts into it, as shown in the first Sets given in this work, and then make a Day-Book entry of the effects and debts on commencing the new business. But the method here shown, of transferring the differences of the accounts direct from one Leger to the other, answers the purpose equally well, when all the accounts are to be transferred, and saves considerable useless writing. Great care should be taken, however, to have equal amounts of dej)its and credits appear in the new Leger at starting, since, if there is not an equilibrium, the Leger will ever after be out of balance ; just as a pair of scales, with one side heavier than the other, if you continually add equal weights to the two sides, will never lining true. To be sure, therefore, that you are in equilibrium, it will be well always to take a Trial Balance of the new Leger immediately after opening all the accounts therein. INSTRUCTIONS FOR WRITING UP, SET VL In the Counting-house edition, the Day-Books, Cash-Book and Legers are given, because Accountants and others who use it as a book of reference will thereby be better accommodated; and where it is adopted as a text-book in Com- mercial Institutions, the pupils will be of sufficient age and discretion to consult their own best interests by not con- sulting the book until after they have finished the work for themselves. But in the High-School edition, these books are omitted, and are inserted in the Key, for the use of teachers or of private students. The history of the business is given, as in Sets IV and V, and from this the pupil will make out his Day-Books and Cash-Book, first on loose sheets of paper for correction, and then in the blank books which are prepared for them. Transactions in no wise connected with cash are to be entered only in the Day-Book — exclusive cash transactions, only in the Cash-Book — and those of a mixed nature, in both Day-Book and Cash-Book, as elucidated. At the end of each month transfer to the Day-Book all the entries made in the Cash-Book during the month. Commence with the debit side — " Cash To Sundries" — and enter the various receipts to the credit of the proper accounts, and place together the several sums received at different times from the same account, so as to add up and post them in one amount to the Leger. This renders it necessary to look over the whole of the Cash debits carefully for each account entered, to find all the receipts therefrom; and, to avoid omissions and errors, check each sum in the Cash-Book, as soon as jouraal- iAd. To afford convenient reference from the Day-Book to the Cash-Book at any time, affix to each sum its proper date. Having completed the debits, next journalize the credit side, saying " Sundries To Cash," and debiting all accounts for which payments have been made during the month. The two columns for dollars and cents are not used to distinguish debits from credits, but the first is for items, and the second for the extension of sums total. In posting the entries transferred from the Cash-Book, the last day of the month may be used for the date in the Leger. ^S©~ Be particular and make your own additions, extensions, and other calculations, wherever they occur in any of the books. In the Elucidations, " [D.-B.]" signifies "enter in the Day-Book," and " [C.-B.]"—" enter in th« CasV-Book." y 125 HiSTOET AND ELUCIDATIONS, SET VL New Fork, July Qd, 1858. Thomas Harvey and Salmon P. Nixon have this day formed a partnership for conducting a foreign shipping and general commission business; the parties agreeing to furnish equa* capital, and to share alike in gains and losses. No Interest account is to be kept. Settle- ments are to be made yearly, and each partner's share of gains, if any, accruing from thv business, to be added to his account, as a new investment. The partners can draw out fundi from time to time, as needed for private use. Title of Firm — "Thomas Harvey & Co." Thomas Harvey accordingly invests as follows : Cash in Phenix Bank 9,000.00 Ship Massachusetts, valued at 25,000.00 A Note against Bagley & Thompson, due Aug. 10th, No. 1, 1,000.00 $35,000.00 Salmon P. Nixon invests Cash in Bank of Commerce 10,750.00 Do. on hand in Safe 318.75 11,068.75 A Note against Wm. Longfellow, due July 20th, No. 2, 4,500.00 " " " Jonas Savage & Co.," Aug. 30th, "3,2,225.50 « " « Ezra Coe & Co., " Sep. 8th, " 4, 645.00 " " " John Vanarsdale, " Nov. 2d, " 5, 1,960.75 9,331.25 Ginseng, amounting, pr. I.-B., fol. 1, to 14,000.00 Store Fixtures, valued at 600.00 $35,000.00 By agreement, the Notes are to be received by the Firm without Discount. 1. Ship Massachusetts and Bills Rec. cost the firm value. T. Harvey produces the firm value. "I m t> i 2. Bills Kec., Mdse. and Expenses cost the firm value. S. P. Nixon produces the firm value. J L^'""-J 3. Cash costs the firm value in their indebtedness to T. Harvey, I rri tj t 4. Cash costs the firm value in their indebtedness to S. P. Nixon. J L^'"^-J ■ 9th We are preparing the Ship Massachusetts for a voyage to Canton, China ; and have freighted her in part with Merchandise consigned to Hughes, Miller & Co., of that city, to be sold for our ^ and risk, as pr. O.-I.-B., fol. 1, to wit : Drills, Bo't of A. A. Lawrence & Co., pr. I.-B., fol. 1, on our Notes, No. 1 @ 4 mos. for 14,000.00 " 2 " 6 " " 14,000.00 " 3 « 8 « " 14,000.00 42,000.00 Grinseng from Store, invested by S. P. Nixon, as pr. L-B., fol. 1, 14,000.00 Lead, Bo't of Haines, Hampton & Co., pr. I.-B., fol. 1, pr. Check on Bank of Commerce, Am't 7,000.00 $63,000.00 Passed our Note No. 4, @ 12 mos., to the Atlantic Insurance Co., for Ins. on $72,000, @V% 1,080.00 And for policy 1.25 1,081.25 Com. on $63,000, @ 2^ % 1,575.00 2,656.25 Due, pr. Average, Nov. 12th, $65,656.25 It matters but little what title you give this voyage, so that whatever name Is once assumed be preserved uniformly in making all subsequent debits or credits to it. It might be termed " Adventure No. 1," " Adventure pr. Ship Massachu- setts," " Adventure to Canton," or any other title you please to give. I have called it " Adventure to Canton." You wili perceive that the sum insured is about 10 per cent, larger than the Am't of the Invoice. This is customary in Marine Ins. This Adventure has now cost value, and Bills Pay., Mdse, Haines, Hampton & Co., and Com. have produced value. [D.-B.1 Again, Haines, Hampton & Co. have cost value in Cash. [C.-B.] Agreed with John HoUingshead & Co. to bring home for them, from Canton, in the Ship Mas- sachusetts, Fillmore master, 250 Tons Freight @ $20 pr. Ton, allowing them also the privi- lege of sending out Freight to Canton, by said Ship, to an amount not exceeding 200 Tous, free of charge. A Captain, 1st and 2d Mates, Carpenter, Steward, Cook, 10 Seamen, and 2 Boys, compose the crew of the Ship Massachusetts. No Day-Book entry is required for this history. It is a small piece of information famished you for use hereafter. 126 ^ HISTORY AND ELrCIDATIONS, SET Vl.^ New York, July 1 2th, 1858. Bo't of various Persons, as pr. Bills, the following Provisions for Ship Massachusetts : Pr. Check on Phenix Bank, 20 Bbls. Beef @ ^11, 220.00 " « " " " 20 " Pork " 9, _180.00 400.00 " " « Bank of Com. 100 « Bread « 3, SOOO « « " " " Cabin Stores and Small Stores^SO.OO 750.00 Paid Cash for getting 4,000 Gals. Water on board, 10.00 $1,160.00 Keep an account of the outgoes for, and income from the Ship under its own head, separate from the Adyentu'e. Ship Massachusetts costs TaJue. Cash produces value. [C.-B.] 14th Kec'd the Passage-money of 6 Passengers to Canton, pr. Ship Massachusetts, (which we have deposited in Bank of Commerce,) @ $300, $1,800.00 Ship Massachusetts produces ralue In Cash. [C.-B.] The fact that this Cash was deposited In the Bank of Commerce does not alter the entry, and need not be mentioned in the Cash-Book. It is given here that you may be able the better to understand the Check-Book. You will find minute details of the business frequently given in thi« history, for the purpose of making the whole transactions clear to your mind ; but which need not be written in your books. While omitting them, however, you should be careful to leave out nothing which is important to be recorded. 16th Paid the New York Ins. Co., by our Note No. 5 @ 12 mos., for Ins. on the Ship Massachusetts, for $27,500, @ 7% . 1,925.00 And for policy 1.25 $1,926.25 Ship Massachusetts costs value in Bills Pay. [B.-B.] Paid Custom House Charges in Cash, for Clearance of Ship Massachusetts, which sails this day for Canton, $5.60 Ship Massachusetts costs value in Cash. [C.-B.] 20th Bills Rec, No. 2, drawn by "Wm. Longfellow, favor of S. P. Nixon, deposited in Phenix Bank on the 10th inst. for Collection, comes due this day, and is paid at the Bank Am't $4,500.00 Cosh costs value in Bills Rec. [C.-B.] In a real business, the Cash-Book would here require an entry of the Cash received, the Bill-Book a memorandum of the payment of this Note, and the Check-Book a record of the deposit in Bank of the proceeds thereof. You may make the entry in the Cash-Book only for the present, but refer to the Bill-Book and Check-Book given, to see the connection between the entries. Aug. 2d Chartered of HoUister, Son & Co., the Bark Phillis, of 200 Tons register, for a voyage to Kingston, Jamaica, and back to New York, by way of Havana, with 25 lay days in the two ports. We are to pay all foreign Port Charges, and $2,000 Charter-money — one-half con- sidered earned at Havanna. Demurrage, $25 pr. day. No Day-Book entry is here requisite. Lay days are the days agreed upon for a vessel to remain in port. Demurrage is the forfeiture for each day she ia detained beyond the time specified in the Charter-party — which is the agreement drawn up between the parties when a Tessel is chartered. U Passed our Note, No. 6, @ 12 mos., to the American Mutual Ins. Co., for an open policy of Insurance, to cover all shipments by us or consignments to us, during the year, within the limits of the United States, or the West Indies, until the premium on the same amounts to the Note, $2,000.00 This method of Marint Insurance is quite customary. The Ins. Co. takes a Note as security for a certain amount of premium, and furnishes the House insuring with an open policy. Then, at any time, when the House ships goods oi receives information of goods being shipped to them, they notify the Ins. Co, and get it entered on this open policy At the end of the year, if no losses have occurred, settlement is made, and so much of the Note is paid as has been used up by the Prem. on goods insured. A per centage is also charged by the Co. (usually 10 per cent.) on the Bal. of the Note. If goods so insured are lost, the Note is returned in part payment thereof. Here the American Mutual Ins. Co. has cost value in our Note. 1 m m Bills Pay. has produced value m the obligation of the Co. on open policy. J [■''•"B.J 127 HISTORY AND ELUCIDATIONS, SET VL New Fork, August 2d, 1858. Bought of Morton & Grodwin, pr. Check on Phenix Bank, Flour, pr. I.-B., $4,540.00 Bought of Otis & Brother, pr. Check on Bank of Com- merce, Meal and Corn, $3,540.00 Shipped the above on board Bark Phillis, Bingham, master, bound to the West Indies, and consigned as pr. O.-I.-B., p. 1, to Daniel Starr & Co., Kingston, Jamaica, to be sold for our <% and risk. Am't ^ 8,080.00 Insured for the voyage in American Mutual Ins. Co., on open policy, $9,000, @ 3 % 270.00 And for policy 1.25 271.25 Drayage and Labor ^ 71.50 Commission on $8,080, @ 2*^ 202.00 5 44.75 $8,624.75 Adventure pr. Bark Phillig costs value. Morton & Godwin, Otis & Brother, American Mutual Ins. Co., Charges, and Commission have each produced value. [D.-B.] Charges is an account to which we credit all sums charged for drayage, labor, storage, weighing. &c., on goods consigned to us to be sold, and debit sums paid draymen and laborers, when their bills are rendered, or their month's wages is due. Again, Morton & Godwin and Otis and Brother have cost the firm value in cash. [C.-B.] . 10th Bagley & Thompson's Note, No. 1, Thomas Harvey's favor, fell due and wa^ paid this day, at the Phenix Bank. Am't $1,000.00 Bills Rec. produces value in Cash. [C.-B.] 24th Paid Thomas Harvey Cash on % $130.00 30th Jonas Savage & Co.'s Note, No. 8, favor of S. P. Nixon, fell due and was paid this day, at the Bank of Commerce. Am't $2,225.50 31st Paid S. P. Nixon on % pr. Check on Bank of Commerce 125.00 " Wages of Clerks to date in Cash 95.00 220.00 Sept. 8th Note No. 4, favor of S. P. Nixon, Ezra Coe & Co. drawers, was this day paid at the Bank of Commerce. Am't $645.00 22d Rec'd from John Gundry & Co., Cincinnati, 500 Bbls. Flour, to be sold for their ^ and risk. Am't, pr. Invoice, $1,579.75. Paid Freight on same, pr. Check on Phenix Bank 425.00 Drayage 15.75 $440.75 You may keep an account of this Flour under the head of " Sales for account of John Gundry & Co.," which now costs the Pirm value to the am't of the Freight and Drayage, $440.76, and must be debited therefor in C.-B. "and D.-B. Cash produces the Firm value by paying Freight. [C.-B.] Charges produces the Firm value in Drayage. [D.-B.] Oct. 5th Having rec'd advice, pr. Mail, (by Steamer to Charleston,) that an Invoice was about to be shipped from Havana, pr. Bark Phillis, of upwards of $14,000, we have effected an ad- ditional Ins. on open policy, in the American Mutual Ins. Co., for excess of homeward Cargo over the $9,000 insured thereon. $6,000, @P% $90.00 Adventure pr. Bark Phillis here costs value. Axierican Mutual Ins. Co. produces value. 128 HISTORY AND ELUCIDATIONS, SET VI. New York, October 10th, 1858. The Bark PhUlis arrived in port this day, having reached Kingston, Aug. 27th, and Havana Sept. 10th, and having been detained in the two ports 30 days. At Kingston, the Flonr, Meal, and Corn were sold, as pr. the following Account-Sales received. Sales of Merchandise, received pr. Bark Phillis, Captain, Bingham, from New York, for account and risk of Messrs. Thomas Harvey ^ Co. Bbqueb Beotheb.8, Payable @ 60 days, 500 Bbls. Flour Pebvost & DEtAifET, @ 30 days, 700 Bbls. Corn Meal 100 Bags Com S. W. Cattell & Son, 600 Bbls. Flour MiTCHBti., Attbrbt & Co., I 300 Bags Corn 800 Bbl^ Corn Meal 60 days, @28«. @18«. " 8*. @28«. @ 8». " 18». Charges. To Cash paid Duties, 1000 Bbls. Flour @ 3j. 1000 '« Meal " Vd. 400 Bags Corn « Zd. " " " Port Charges on vessel " " " ^Vharfage " " " Lighterage " Advertising in Kingston papers " Bank Discount on Sales " Prem. & Stamps on Sterling Bills Exchange in favor of Suarez Brother & Co., Havana, @ 60 days " Com. on £2,460 @ 5 % " Bal., being Net Proceeds of Sales, carried dotcn By Net Proceeds Bro't down To a Set of Colonial Bank Bills, on Court Directors, London, in favor of Daniel Starr & Co., and endorsed by them over to Messrs. Suarez Brothers & Co., Havana, To a Set do. do. do. To a Set of Jamaica Bank Bills, on Baring Brothers & Co., London, in favor of Daniel Starr & Co., and endorsed by them over to Messrs. Suarez Brother & Co., Havana, @ 60 days. E. & 0. E. Kingston, Jamaica, Se^t. 6tk, 1852. Daniel Stahb & Co. pr. John Brown. 680 40 120 270j 150 81 6 65 80 2 28 83 123 1,994 £2,460 1,000 794 200 £1,994 10 £ 700 670 700 890 £2,460 £2,460 1,994 £1,994 10 10 The Sterling Sets of Exchange obtained for the Net Proceeds of this Sale, were taken to Havana, and there sold, as appears by the Account-Current of Suarez Brother & Co., Com. Merchants, @Q % Prem., and the proceeds used by them in purchasing Sugars for our ^, as pr. the following Invoice. R 129 HISTORY AND ELUCIDATIONS, SET VI. New Fork, October 10th, 1858. Invoice of Sugars, shipped hy Suarez Brother ^ Co., pr. Bark Phillis, Captain Bingham, for New York, hj order, and for account and risk of Messrs. Thomas Harvey ^ Co. p. B. # 1 to 300 P C #301to*500 P. D. # 501 to 600 300 Boxes Sugar, ea. 20 arobes (25 lbs. pr. arobe) 6000 arobes, @, 6 rials 800 Boxes @ 26 rials , 200 Boxes Sugar, ea. 20 arobes, @ 6 rials 200 Boxes @ 26 rials 100 Hhds. Sugar, ea. 60 arobes, @ 5 rials 100 Hogsheads @ $5 ' Charges. Export Duty, 3 rials pr. Box 7* " " Hhd. Cartage & Weighing, 2 " " Box 4 " " Hhd. Brokerage on $13,375, @\ % Consul's Certificate $187-4 93-6 $125-0 50-0 Com. on $18,900 © 2« ^ E. & 0. E. Havana, Cuba, Sept. 28th, 1858. IT. S. Currency, $14,247.63 SUABEZ BbOTHEB. & Co. Dols. 4,500 976 Rials. J.OOO 650 3,750 500 281 175 66 Dols. 5,475 3,650 4,250 Rials. $13,375 625 $18,900 347 $14,247 They also paid the Charter money falling due at Havana, and the Port Charges at that place, remunerating themselves for the excess of outlay over the proceeds of the Sets of Exchange received from Kingston by drawing on us for the balance, charging 1' % for negotiating the Draft, and 3 ^ as the rate of exchange required to convert it into Cash : — all of which appears by the following Account-Current. Messrs. Thomas Harvey # Co., In Account with Juarez Brother ^ Co. To One-half Am't Charter Money, paid Captain " Invoice of Sugars, purchased for them «* Cash paid Port Charges By a Set of Colonial Bills for £1,000, sold @9% Prem. $4,844.44 " " " " " £794.10s. " 9 '< " 3,848.91 " «* Jamaica Bank Bills for £200" 9" " 968.89 •' Our draft on Thomas Harvey & Co., @ 30 d's sight $6,430.77 Less Prem. for negotiating I'' /o and Exch. 3 fo 289.38 Havana, Cuba, Sept. 2Sth, 1858. E. & 0. E. SUAKEZ BeOTHKK & Co. Dr. 1,000 14,247 666 $15,803 63 Cr. 9,662 6,141 $15,803 Balance due Suarez Brother & Co. (including Prem. & Exch.) drawn on us. 5,430.77, for which they have Adventure pr. Bark Phillis, as shown by the foregoing statements, has cost the firm $16,093.01, and has produced the firm $9,662.24. The total cost might be debited, and the total proceeds credited, but the same result is accomplished, and with Icfg writing, by debiting only the excess of cost over proceeds, or the amount for which Suarez Brother and Co. have drawn on the firm— $6,430.77. Suarez Brother & Co., by advancing the additional outlay required for the Adventure, have produced the firm value, and must be credited the Am't due them — $6,430.77. It might seem, that as they have remunerated themselves by drawing on us, therefore nothing is due them, and they should receive no credit. But the Draft has not yet been presented to the firm for acceptance. When it is accepted, Suarez Brother & Co. will receive a debit which will balance their account. See entry of the 20th inst. __ HISTORY AND ELUCIDATIONS, SET YL New York, October IQth, 1858. Paid pr. Check on Phenix Bank, Duties on Invoice of Sugar, received pr. Bark Phillis, from Havana (Sales of Sugar,No. 1), Am't, §14,247.63, @ 30 % ' ^,274.29 This is an expenditure for Adventure pr. Bark Phillis, and might he debited directly to that account, hut when Mdse belonging to an AdTenture is taken into the Store to be sold, it is customary to open a Sales Account for it, as you would for a Consignor, debiting thereto all charges and expenses, and crediting all Sales ; then, when the Mdse. is all sold, the net proceeds are transferred to the Adventure account. Sales of Sugar, No. 1, has cost value in Cash. [C.-B.J 12th Paid HoUister, Son & Co. pr. Check on Phenix Bank, for Bal. of Charter Money, due on the voyage of Bark Phillis to the West Indies. 1,000.00 5 days' Demurrage @ 825 pr. day 125.00 $1,125.00 Adventure pr. Bark Phillis costs value in Cash. 15th Sold J. FallstaflF & Co., for their Note @ 6 mos., No. 6, 300 Boxes and 100 Hhds. of Sugar, received pr. Bark Phillis (Sales of Sugar, No 1), Am't, pr. S.-B. $16,455.00 Sales of Sagar,No. l,has produced value in Bills Rec. 18th Sold Lyman F. Bache, for his Note @ 6 mos.. No. 7, 200 Boxes Sugar, received pr. Bark PhiUis, (Sales of Sugar, No. 1,) Am't. pr. S.-B. $6,240.00 After writing up your Day-Book to this point, you may post it to the Leger, so as to be able to understand more clearlv the closure of Sales of Sugar, No. 1, which occurs in the next entry. And in each closure of a Sales account hereaftei occurring in this Set, the Leger should be posted up before making the closing entry. 18th The Sugar belonging to Sales of Sugar, No. 1, has all been sold. Total Proceeds 22,695.00 Less Duties entered 10th inst. 4,274.29 $18,420.71 Cooperage, Storage, and Labor 55.50 Interest on Duties, $4,274.29, for 8 days 5.70 Our Commission on $22,695 @ 2* % 567.38 Net Proceeds, due pr. Average June 8th, 1859, to be credited to Adventure pr. Bark Phillis, 17,792.13 $18,420.71 Sales of Sugar, No. 1, has cost value in Charges, Int. and Com., and in our obligation to Adventure pr. Bark Phillis, foi Net Proceeds of Sales. This entry is made with a view to close Sales of Svgar, No. 1, and at the end of the month, ("after the Cash entries have been transferred from the Cash-Book into the Day-Book, and posted,) you may rule and add up that account upon the Leger. You can trace out the details here stated as follows : — Turn to Sales of Sugar, No. 1, in your Leger, and if it is posted up to this point, you will find two credits amounting to $22,695, which, by reference from the Leper to Day-Book, and flrom the Day-Book to Sales-Book, you will see are the Total Proceeds of Sugar sold. You will also find, on the credit cide of your Cash-Book, one debit (not yet posted) of $4,274.29, which you will see is the charge for Duties paid. Deducting these Duties flrom the Total Proceeds, you have $18,420.71, the Am't which must be debited to the account to close it This Am't is made np of the following items: Cooperage, Storage, k Labor, which are supposed to have been preserved in small memorandum books, kept for the puf- pose, until this time. Int. on Duties from time of payment, so as to bring the charges all up to the present date, for con- venience in averaging. Com. of firm on Sales $22,695, at ^ «g ; and Net Proceeds, due Adventure after paying all charges. . 20th Accepted a Bill of Exchange of Messrs. Suarez Bro. & Co., Havana, on us, @ 30 days sight, for $6,430.77 Suarez Bro. k Co. have cost the firm value in Bills Pay. 22d There is Interest to be charged Adventure pr. Bark Phillis, as pr. Account-Current of dat^, (A.-C.-B., fol 1,) 699.09 The Net Gains, as shown by the Accoun^Current, are 822.52 $1,521.61 Adventure pr. Bark Phillis has here cost value, and Int has produced value, $699.09 : — and in order to transfer the Not Gains to Profit and Loss account, you must also debit the Adventure, and credit Profit & Loss with $822.63 — thus taakin^ the entry " Adventure pr. Bark Phillis To Sundries." 30th Paid Draymen and Laborers in Cash, 94.75 " Wages of Clerks to date 95.00 « K«nt of Store " " • 400.00 495.00 $589.75 Obtained the requisite amount of funds in hand, by checking on Phenix Bank for $600, Charges and Store Expenses have cost value in Cash. End of first year's business. 131 HISTO.E.Y AISTD ELUCIDATIONS, SET VL New Fork, November 1st, 1858. We have agreed, pr. correspondence, to enter into a Pork Speculation in Company with Faxon, Field & Co., Cincinnati, sharing equally with them in the expenses and proceeds thereof; they to receive 2* ^ for purchasing, and we 2^ % for selling. They have accordingly purchased 1,000 Bbls. Pork, and shipped to us, as pr. advice this day received, on which we have effected an Ins. in the American Mutual Ins. Co., on open policy, for $10,000, @ 1* %. $150.00 We will call this " Sales of Pork, Co. A." Sales of Pork, Co. A., has here cost value, and American Mutual Ins. Co. has produced value. 2d John Vanarsdale's Note, S. P. Nixon's fa,vor, No. 5, deposited in the Bank of Commerce on the 18th ult. for collection, falls due this day. Am't $1,960.75 Cash costs value in Bills Beceivable. [C.-B.] 5th Rec'd, pr. Steamboat, Canal, and Railroad, via Pennsylvania, from Faxon, Field & Co., Cin- cinnati, 1,000 Bbls. Pork, (marked TH,) to be sold for their and our joint ^, amounting, pr. Invoice of the 26th ult., to $9,256.25, of which our J is $4,628.12 Paid Freight, pr. Check on Phenix Bank, 850.00 The Drayage amounts to 31.25 881.25 $5,509.37 Sales of Pork, Co. A., has cost the Firm value in their indehtednesa to F., F. & Co., and in Freight and Prnyage. Enter all except the payment of Freight in the Day-Book, [D.-B.]— but place this payment in the Casb-Book, [O.-B.] 6th Paid the Saratoga Fire Ins. Co., pr. Check on the Bank of Commerce, for Ins. on Stock of Goods in Store, for one year, to the Am't of $15,000, @ 1* % , 225.00 Policy 1.25 $226.25 You may debit Charges with this cost, and let it stand to that account, to cover some credits of Ins. which will hereaftet occur. Cash has produced value. [C.-B.] (( Sold to Jeremiah Brown 500 Bbls. Pork, belonging to Co. A., @ $11 $5,500.00 Took his Note, No. 8, @ 30 days, for $5,530.42. The Discount on $5,530.42, for 33 days, (to make it equal to Cash,) is 30.42 $5,530.42 Sales of Pork, Co. A, and Discount have produced value in Bills Rec. Remitted to Faxon, Field & Co., pr. their Order of 1st inst., a Bill of Exchange on Bacon & Bos- well, Cincinnati, purchased at par of Clark, Prime & Co., pr. Check on Bank of Commerce, for $5,000.00 Faxon, Field & Co. have cost value in Cash. 8th . Bo't of Caleb Johnson, on our Note, No. 8, @ 6 mos., 150 Hhds. Cuba Molasses, 15,360 Gals., @ 19 ^ 2,918.40 125 " " Sugar, 157,500 lbs., " 4« 7,087.50 500 Bbls. Lard, 100,000 " « 5' 5,250.00 $15,255.90 Mdse. has cost value in Bills Payable. lOth .. Sold to H. S. Pierson & Co., for their Check on Phenix Bank, which we have deposited, 500 Bbls. Flour— Sales for % John Gundry & Co.— @ $5. 2,500.00 500 " Pork— Sales of Pork, Co. A. —"10.75 5,375.00 $7,875.00 Sales for account of John Gundry 4 Co., and Sales of Pork, Co. A., have each produced value in Cash. Had J. Brown's Note, No. 8, due Dec. 9th, discounted at the Phenix Bank. Am't $5,530.42, netting 5,503.69 Dis. for 29 days is 26.73 $5,530.42 Bills Rec. has produced value In Cash $5,530.42. \ r„ n „„. j-vii „„„ credit! Discount has cost value in Cash $26.73. / L^-^"' *"^® '^^^^^ °°* '***"^-' 12th Paid at the Phenix Bank our Note, No. 1, favor of A. A. Lawrence & Co. Am't $14,000.00 Bills Pay. ba« cost value in Ca«h. . ' 132 ft HISTORY AND ELUCID ATTOK'J^aJJ^ Yl^ New York, November 15/A, 1858. Bcndered J Gundiy & Co. an Account-Sales of 500 Bbls. Flour, consigned to us, to be sold for their %. Am't of Sales, as pr. S.-B., 2,500.00 Deduct Charges entered Sept. 22d 440.75 Excess of credit now on Leger $2,059.25 Additional Charges : ~ Int. on $440.75 from Sept. 22d 3.97 Storage, Labor, Cooperage, &c. 60.25 Commission, @ 2^ %, on Total Sales 62.60 126.72 John Gundry & Co.'s Net proceeds, due 12th inst. 1,932.53 $2,059.25 Sales for account of John Gundry & Co. has cost Talue in the Tarious Charges, and in the Firm's indebtedness to John Gundry & Co. Interest, Charges, Commission, and John Gundry & Co. have produced value — the latter by permitting the Net Proceeds now due them to remain in the bands of the Firm. u Eendered Faxon, Field & Co. an % Sales of 1,000 Bbls. Pork, sold for % of " Sales of Pork, Co. A." Total Sales 10,875.00 Deduct Charges entered 1,031.25 " " and Commission as below 465.19 1,4^6.44 Net Proceeds $9, 378.56 Interest on Charges to date 1.82 Storage, Labor, Cooperage, &c. 41.50 Ins. vs. Fire, 1^ % on $10,000 150.00 191.50 Com. on 10,875, @ 2' % 271.87 Faxon, Field & Co.'s i Net Proceeds, due 10th inst. 4,689.28 §5,154.47 SaJes of Pork, Co. A., has cost value In Int, Charges, and Com., and in the indebtedness of the Firm to Faxon, Field t Co., for their Share of the Net Proceeds. (( Our Share of the Net Proceeds from " Sales of Pork, Co. A.," is 4,689.28 " " " First Cost Do. was 4,628.12 Making our Net Gains $61.16 Ton here debit Sales of Pork, Co. A, with the Gains thereon, and credit Profit A Loss. This is a mere tranter entry, to take the Gains to the proper receptacle for them, and the Kule for determining debits and credits in transac^tions does not apply 16th Sold to James Maitland & Co., for Cash, (dep. in Bank of Commerce,) 500 Bbls. Lard. Am't, pr. S.-B., 5,250.00 50 Hhds. Molasses. " " 1,024.00 $6,274 00 Mdse. has produced value in Cash. 22d Paid, at the Bank of Com., our Note, No. 7, draft of Suarez Brother & Co., Am't $6,430.77 =_^_=_ Dec. 6th _=_=--=_^ Sold to Stiles & Nesmith, for their Check, which we have dep. in the Bank of Commerce, 125 Hhds. Sugar. Am't, pr. S.-B., $7,875.00 10th ~- Paid James Buchanan, pr. Check on Bank of Commerce, the Bal. due John Gundry & Co., in accordance with advice received from them, as pr. letter of 1st inst Am't due Nov. 12th 1,932.53 Interest for 28 days on $1,932.53 9.02 $1,941.56 John Gundry Wi, 1859. il:f, 1 Ship Massachusetts To Interest, Debit Bal. of Int. on the Ship's %, to July 1st 30th 1,431 84 Interest To Thos. Harvey, " S. P. Nixon, " Jas. L. Grant, To Sundries, Int on Capital to July 1st « (I « (( 735 735 300 06 00 00 Sundries S. P. Nixon, Thos. Harvey, Adventure to Canton, Expenses, Charges, To Cash, pr. C.-B. 11th It 18th 30th 1,770 500 450 7,344 665 237 9,196 06 00 00 00 50 00 50 148 THOMAS HARVEY & CO CASH-BOOK. SET VI. 149 Dr. CASH-BOOK, SET YI. Cash. 14 20 2 10 30 1 2 10 16 To Thomas Harvey, " Salmon P. Nixon, " Ship Massachusetts, " Bills Receivable, To Balance, " Bills Receivable, " Do. Amount invested « « Passage money of 6 Passengers to Canton No. 2, collected at Phenix Bank Brought down from July Slst No. 1 collected at Phenix Bank No. 3, " " Bank of Commerce To Balance, " Bills Receivable, To Balance, From Aug. Slst No. 4, collected at Bank of Commerce from Sept 30th To Balance, From Oct 30th " Bills Receivable, No. 5, collected at Bank of Commerce " Sales for % of John Gundry & Co., 500 Bbls. Flour, sold H. S. Pierson A Co., @ $5. " Sales of Pork, Co. A., 500 « Pork, " " " $10.75 " Bills Receivable, No. 8, discounted at Phenix Bank << Merchandise, Sale to J.Maitland ^ A Thomas Harvey - - - Salmon P. Nixon James L. Grant ... Cash . . - - , Ship Massachusetts Bills Receivable Bills Payable - - . American Mutual Insurance Co. 'axoii. Field & Co. Adventure to Cincinnati, Co. C Douglass, Forest & Co. - Charges - - - - Commission . - - Profit & Loss - - - Interest - - - . Hughes, Miller & Co. Expenses - - - - 167 1,861 20,102 107,218 1,346 4,954 1,598 665 137,746 37,109 37,064 15,300 23,000 228 4,077 171 5,360 11,617 3,818 137,746 08 02 00 29 25 86 35 93 11 00 89 •^.'±.^>^' UKflTBE^ AUXILIARY BOOKS FOE SET YI. BANK-BOOK. CHECK-BOOK. BILL-BOOK. INVOICE-BOOK. SALES-BOOK. OUTWARD-INVOICE-BOOK. ACCOUNT-SALES-BOOK. ACCOUNT-CURRENT-BOOK. LETTERrBOOK. W 169 BANK-BOOK AND CHECK-BOOK. BANK-BOOK. This is a small memorandum book given by Banks to individuals who deposit funds with them. The deposits made in Bank are entered in it by the receiving clerk, at the time of deposit ; and about once a month a clerk of the Bank enters the amounts that have been checked out, and balances the book. This is called writing up and balancing. Notes and Drafts lodged with the Bank for collection are noted inside the money column, but not extended. When collected they form a deposit in Bank, and are extended ; but if protested for non-payment, a stroke of the pen is made through the figures, and they are not extended. If the Note or Draft does not fall due be- fore the time of writing up and balancing, instead of an extension a new entry must be made when collected. No Bank-Book is given with Set VI, since the form is so simple as not to require it. CHECK-BOOK. This is a printed book of blank checks, with a broad margin, in which is noted deposits made in Bank. When- ever it is wished to draw out funds from the Bank, one of these blank checks is filled and torn ofi", and a me- morandum of it also made in the margin. By adding all sums deposited, and subtracting all sums withdrawn or checked out, the amount remaining in Bank is always readily seen, and must agree with the balance of the Bank-Book when that book is writ- ten up and balanced. Notes and Drafts deposited for collection are entered in this book when they are collected. Some make a memorandum of them at the time of deposit, but this is unnecessary, as the Bank-Book is the voucher for their having been left with the Bank, and they do not form a real deposit upon which to draw until they are collected. Houses doing business with more than one Bank have a separate Check-Book for each. In Set VI, the Eirm has dealings with the Phenix Bank and the Bank of Commerce ; but I have given a portion only of the Check-Book of one of these Banks, this being sufficient to show the form. It will be a good exercise for you to fill up the remainder of this book, and also to make out a Check-Book for the Bank of Commerce from the history of the business. Note. — The portion of this page occupied with the explanation of the Bank-Book and Check-Book constitutes properly a part of the Check-Book, being the back or blank side of the checks. When the checks are torn of^ nothing remains iu this book but the inner marginal memorandums. Phenix 1858. i 9,000 .i^oo 00 00 ^,600 00 SA^ 20ti. , QN'otedS'o.2o^[Lote^ 4500 00 iz^im 00 ^^Ul dS'o. 2 jfMo 00 ^,560 00 Q)S'ofcedS'o.'r<^X«^te^ T,000 00 9,560 00 SPe^v. 225. ^OeoK, Olfo. 3 .^25 00 9,f35 00 Oct. iO\L. ^^UL dS'o. Ji, Jfy21Jf 29 jf,teo 7^ ^€Uf^ dS'o. 5 170 ^,-125,00 3,735 li CHECK-BOOK. SET VI. Bank, No. 1. Date. 5'ul^f2l^,1858. Favor of jsro.2. Date. Q/(cu^. 2S, 1858, Favor of M. 3. Z>ate. 9*cjv. 22^,1858. Favor of Date. Oct. -rOt^, 1858, Favor of iVb. 5. Z)ate. Ccfc. 121^, 1858. Favor of ptf^ ^voAteV/ vJ2>tl(i)oacu. .^,5^0 00 .4^00,00 Jt25 00 -^,27^ '(,T25 29 00 iV^o. 'f. New York, ^J^ f2tfv, 1858. jPay to J (»€4v^ tWeC»€u. ^ 2»u.tfi«v, or Bearer, tToM/V ^^feiMt^te^ ^ Dollars. J^OO Dolls. wT cfe. UdonuZii <^t^atveu ca i^o. \ No. 2. New York, Qkny^ 2^. 1S58. JPa^ to vJi'tWtUw' ^ c ^^iMi^ieS cut^ ti^oUu- ^Dollars. Jt^bJpQ DoHs. ^ cts. U nomad (^azveu ^ ^o. No. New York, >>.- AZ^ 18.// Pay to or Bearer, ioo Dollars. f Dolls.: cts. /^ ! New York,. -18. [pHUEiax^ ©ia^aaiK. - or Bearer, "ioo Dollars. Dolls, cts. New York, 18 — Dolls, cts. 171 BILL-BOOK, SET YL Bilh i When Received. Drawers. In whose favor. For what received. Where payable. Date of Note. 1858. 1858. 1 July 2 Bagley & Thompson Thomas Harvey For % of T. Harvey Phenix Bank May 7 ti tt <( Wm. Longfellow Salmon P. Nixon " " S. P. Nixon New York May 18 3 (( (( Jonas Savage & Co. << ( U <( (( <( Oct. 18 8 Nov. 1859. 6 Jeremiah Brown i< Sales of Pork,Co. A Phenix Bank Nov. 1859. 6 9 Jan. 21 James Maitland & Co. <( Sales of Mdse.,Co. B, Bank of Com. Jan. 21 10 Feb. 19 Watson G. Gaylord << (( i( t< New York Feb. 19 11 Apr. 9 Leonard Barber & Co. i< << <( (< a (( Apr. 9 12 May 18 Carrigan & Allen Myers & Wolbert Sales of Tea, No. 3 Bank of Com. May 18 18 <( (( Brooks & Monteith <( (( << t( (( << (< May 18 14 <( (( Burrill & Webb (< . ii) & *i i o When paid. Remarks and Endorsements. >-> fH s < a •-» 1^ 10 ^ 6 z :=: 3 mos. 1,000 00 Aug. 10 60d'8 20 4,500 loo July 20 Deposited in Phenix Bank July 10th. 4 mos. 30 2,225j50 Aug. 30 6 mos. 8 645i00 Sep. 8 6 mos. 2 1,960175 Nov. 2 Deposited in Bank of Commerce Oct. IStfr 6 mos. 18 16,455 00 Apr. 18 Discounted at Phenix Bank Jan. 10th. 6 mos. 21 6,24000 Apr. 21 Deposited in Phenix Bank April 13th. 30d's 9 5,530|42 Dec. 9 Discounted at Phenix Bank Nov. 10th. 4 mos. lOd's 6 mos. 4 24 12 4,657 25 2,931 50 5, 525100 May Apr. 24 26 r Dep. Mar. 1st, and protested Mar. 4th \ Paid with Int. & Charges April 26th. 6 mos. 21 14,256l25 Endors'd to our order by Myers &Wolber(' 6 mos. 21 29,434j33 <( <( (( 6 mos. 21 35,620i20 Bemarks and Endorsements. 1858. 1858. July 9 4 mos. Nov. 1859. Jan. 9/12 14,000 00 Nov. 12 E. 8,(J00.00 40.00 00 <^ F. 202.00 71.50 00 8,080 273 271 00 50 270.00 1.25 25 E. E. Thomas Haevet & Co. $8,624 75 Invoice of Merchandise, shipped pr. D. Leech # Co.'s line, via Pennsylvania, and consigned to Faxon, Field ^ Co., Cincinnati, to he sold for joint account of Shippers and Consignees. [WA] 2,000 Sacks Coffee, 181,520 lbs., @ &f Charges. Ins. on $9,500, @ l^% 142.50 Drayage, Labor, Weighing, Mending Bags, &c. 61.20 Com. on $8,548.80, @ 2?% 218.72 E. E. New York, Feb. 6th, 1859. Thomas Haevet & Co. 8,548 417 $8,966 80 42 22 In the Outward-Invoice-Book, copies are taken of Invoices shipped abroad, or con- signed to others to be sold for your account. 176 ACCOUNT-SALES-BOOK, SET VI. Sales of Sugar {No. l),/or account of Adventure pr. Bark PMllis. p. B. # 1 to 300 P. D. #501to600 1858. Oct. 15th. Oct. 18th. New Tc Sold J. Fallstaff & Co., @ 6 mos., 300 Boxes Sugar, ea. 480 lbs., @ 6'f 9,000.00 100 Hhds. " " 1,420 " " 6' 7,455.00 16,455 i 6,240 00 P. C. #301to500 Sold Lyman F. Bache, @ 6 mos., 200 Boxes Sugar, ea. 480 lbs., @ 6^/ ChargeB. Duties paid Oct. 10th 4,274.29 Int. on $4,274.29 for 8 days 5.70 Cooperage, Stor. & Lab. 55.50 Com. on $22,695, @ 2^% 667.38 00 22,695 4,902 00 87 E. E. Net Proceeds due June 8th /59 vk, Oct. ISth, 1858. Thomas Haevet & Co. $17,792 13 Account-Sales of Flour, received, pr. D. Leech ^ Co! 8 line, from Cincinnati, for account and risk of J. Gundry ^ Co. * 1858. Nov. 10 By H. S. Pierson & Co., n. 600 Bbls. Flour, @ $5 Charges. To Freight & Drayage " Int. on $440.75, from Sept. 22d " Stor., Lab., Cooperage, &c. " Com. on $2,500, @,2^fo • E. E. Net Proceeds due Nov. 12th New York, Nov. \bth, 1858. Thomas Harvey & Co. 440.75 3.97 60.25 62.50 2,500 667 $1,932 00 47 53 When goods received on commission are sold, the agent makes out, for the inspec- tion of the consignor, a detailed account of the sales of said goods, together with such charges as have been made on account of the same. In making out an Account-Sales, the mode of procedure is, to turn to the proper account in the Leger, and from thence refer to the necessary details, as found in the books of original entry. For the details of the sale, reference must be had to the Sales-Book ; the charges, commission, &c., will be found in the Day-Book. A vajjiety of forms are here given, of which the first and last are the most common in business. Thinking it unnecessary to occupy space with them, I have omitted 177 ACCOUNT-SALES-BOOK, SET VI. Faxon, Field # Co. and Thomas Harvey ^ Co., Dr. In Account-Sales with Thomas Harvey ^ Co. Or. 1858. 1858. K. Nov. 1 To Ins. on $10,000, @ \^% 150 00 Nov. 6 By J. Brown, 5 " Freight " Dray age 850 31 00 25 TH 500Bbls. Pork,@$ll 6,500 00 (( 15 " Int. on Charges to date 1 82 it 10 " H. S. Pierson & Co., 1 (( (< " Stor., Lab., Cooperage, &c. 41 50 TH 500Bbls.Pork,@$10.76 6,375i00 (< << '« Ins.. vs. Fire, on $10,000, @12^ 150 00 y 25,909 lbs. Loaf Sugar, @ 9 / 2,331.81 <£> 29,068 " Crushed '« «' 8 2,325.44 4,657 25 Feb. 19 Sold Watson G. Gaylord, @ 10 days, 50 Tierces Rice, 90,200 lbs., % Z'f 2,931 50 7,588 75 Charges. Ins. vs. Fire on $6,500, (J Am't Ins.,) @ \^% 97.^0 Cooperage, Weigh., & Lab. 19f62 Com. & Guar, on $7,588.75, @ b% 379.44 Net Proceeds,«due Apr. 27th 496 56 $7,092 19 Faxon, Field §; Co.'s J net proceeds 2,364.06 Douglass, Potest & Co.'s J " " 2,364.06 Thomas Harvey & Co.'s J " " 2,364.07 E. E. New Tcn-k, Feb. 28th, 1859. Thomas Harvey & Co. several of the Account-Sales rendered in Set VI, and you can test your knowledge obtained of the ones given by making out those omitted. The object of the Account-Sales-Book is to preserve a copy of the Accoiy;it-Sales rendered to consignors. 178 ACCOUNT-CUREENT-BOOK, SET VI. Account-Current of Adventure pr. Bark PJiillis, with Interest to June %th, 1859. Sate. Description. Time. Interest. Amount. 1858. A-ug. Oct. •< << << 2 5 10 12 « 18 Dr. To Invoice of Flour, Corn Meal, and Corn, Shipped to Kingston, Ja., as pr. O.-I.-B. " Ins. in American Mutual Ins. Co., on $6,000, @ 1^% " Bal. due Suarez, Brother & Co., Havana, "as pr. their Account-Current Int. on $6,430.77, from Nov. 22d, the date when their. Draft on us falls due " Balance of Charter money 1,000.00 «' Demurrage, 5 days,*@ $25 125.00 10 m. 6 d's 8 " 3 " 6 " 17 " 7 «« 27 " 439 86 3 65 21114 44 44 8,624 90 6,430 1,125 699 8SS 00 77 00 Total Interest Net Gains, due June.8 /59 Cr.' By Net Proceeds of Sales of Sugars, due, pr. average, June. 8 /59 699 09 09 5t 17,792 13 1858. Oct. 17,792 18 E. E. New York, Oct. 22d, 1858. Adventure to Canton in Account-Current with Thonias Harvey ^ Co. Interest calculated to Feb. 23c?, 1860. Date. Description. Time. Interest. Amount. 1858. July 1859. Mar. June 9 25 18 6 << 1 15 Dr. To Invoice of Cargo, as pr. O.-I.-B., due Nov. 12th " Our Note @ 6 mos., to the Atlantic Ins. Co., for Ins. on Cargo homeward " Set of Exchange, @ 90 days' sight, on Baring Bro- thers & Co., London, Bo't pr. Check, and remitted to cover Hughes, Miller & Co.'s Drafts from Can- ton, due in London, Oct. 3d. • Am't £1,530, @ 8^ Prem. Debit Bal. of Interest Net Gains, due Feb. 23 /60 Cr. By Bal. in Hughes, Miller & Co.'s hinds, Due Jan. 1 /59 1,598.24 bfo Dig., to convert to Canton funds 84.12 15 m. 11 d's 4 " 25 " 8 " 5 " 13 m.22 d's 13 "22 " 2 " 9 *« 5,044 27 299 69 40 88 65,656 1,133 7,344 4,167 1 1, 7 8 S 25 75 00 21 5( 5,371 115 142 947 4,1«7 87 62 12 02 90,084 77 1859. May 1,682 2,069 82,349 3,982 36 00 Oi Tf( CO (M 00 i-H CO CO t^ lO 05 •«. 05 05 -o CO " CO I-H 05 CO 00 r-i 5 "S 1 p< ■g 1 ' U ai *i 00 §^ '^ 05 X; >o 01 CO =" t-H tH • CO •si«a uO CO •soH t^ Tj4 eo 1 < irl rH CO rH I-H CO 05 10 05 U3 CO 1-1 »o 00 I-H ""• "^ •^ 10" TtT -"jT rlT CO 00 I-H C5 CO 00" r-l >* i 1 g 1 1 g§ sl^^l ^^ So -Si \ oM oP 0:3 § a t>%oU^o Eh H EH E-i H \ \ m n 1 00 1 n 00 CO cj;' rH *0 ^ i-t i-5 TH 3 » s p a 1- 5'^ ■TS A d ■— ! detai an A ences .2 ^^ -•p=! '^ C ci , n3 ^OC oa >■ ^'1 s 53 C -1-3 3 '^ 2 S i«! :rp urren intere frecfu '^-'^ -M p) d "53 * « ^.2 ^ '^^ e3 p4 rents with the H •*a «(H 53 13 9 <= -tj ^ "ore » i-f l^^l « SriJ h -^^ «2'^ "S nS 03 O) 4) w •^ t< a w OQ <» .-H.^^ A< <^ ^ ^t p?g^ -tJ >H © fi -^ Ti 0^ ^ 53 ^ 1 a £3 4> Q.S >> 1 no i-H if 13 :8 g^ E3 pS M e« IS . « c? 03 JJ 2 fl "S « M a sh ^ c5 3 *= ■So.S 180 LETTER-BOOK, SET VI. New York, September 22nd, 1858. Messrs. John G-undry ^ Co., Cincinnati: Gentlemen, — We have this day received, pr. D. Leech & Co.'s line, 500 Bbls. Flour, in good order, consigned to us to be sold for your % and risk, as pr. your Invoice of the 13th inst. As prices are rising, we think it advisable not to push it upon the market at pre- sent, but shall endeavor to seize the most favorable opportunity for effecting sales to advantage. Very respectfully, Your ob't servants, Thomas Harvey & Co. New YorTc, February 5th, 1859. Gentlemen, Your reply to our proposition to unite in a Company speculation of Mdse., to be sold at Cincinnati, came to hand on the 1st inst., and in accordance therewith, we have this day shipped 2,000 Sacks Coffee, as pr. Invoice enclosed, and consigned them to you to be sold for your and our ^, jointly. One-half of the Invoice we have charged to your %, in accordance with the terms of our agreemenjt. — Am't $4,483.11. A portion of the Sugars consigned to us for joint % of yourselves, Douglass, Forest & Co., and ourselves, have been advantageously sold, and ther^ is prospect of another sale soon. Hoping this new adventure may prove for our mutual benefit, We remain, gentlemen. Very respectfully, yours, Messrs. Faxon, Field ^ Co., Thomas Harvey & Co. Cincinnati. This book is used for taking copies of all business letters of importance, written to others. Letters received are usually filed away. A business letter should be written in brief terms and yet explicitly. To be well skilled in mercantile correspondence is no small acquirement. 181 ADDITIONAL AUXILIARIES. In addition to the auxiliary books already given, there are several others of less import- ance, but still convenient in some branches of business ; among v^hich are the following— Order-Book, for takmg copies of all orders received for merchandise. Memorandum-Book, for noting down mercantile affairs of importance, that have occurred or are likely to occur. Expense-Book, for keeping an account in detail of those smaller expenses which are constantly occurring about an establishment. Postage-Book, for keeping an account of postages paid. Time-Book, for keeping the time of hands employed. See Form below. FORM OE TIME-BOOK. September. /#/#!4///#/#/ 1858. /f/m/f/i'/t/ Spinning room No. 1. Names. 6 7 1 8 1 9 1 10 11 1 o 6 Wag's Am't. 13 1 14 1 15 1 16 1 17 1 18 1 6 Wag's Am't Remarks. Ann Robins 4,00 4 00 4,00 4 00 Good h'd. Mary J. Linn 1 _ 1 h 4i 3,00 2 25 1 1 1 1 1 1 6 3,00 3 00 (( (I Anne Bowen 1 1 h ^ 1 5 3,00 2 50 1 - - — - - 1 3,00 50 Sick. Bet.S.Collins 1 1 1 ^ h 5 3,50 2 92 1 1 1 1 1 1 6 3,50 3 50 Good h'd. Susan Holt h 1 — 1 a 3,50 2 62 h 1 ^ 1 1 1 5 3,50 2 92 (( (( Phebe Martin 1 1 1 1 6 2,50 2 50 1 h 1 1 1 1 ^h 2,50 2 29 Slow Manufacturers generally make use of this book. When hands are employed by the month, the columns for days may be increased in number to twenty-six, the number of working days in a month. 182 LEGER ACCOUNTS. {Continued from Page 120) Sales Accounts, or Consignment Accounts. These accounts show the charges on goods consigned to you to be sold for othcrfc, and the total sales or proceeds of the same. The debtor exhibits all charges against them, the creditor all sales of goods con signed, and the difference the net proceeds due the consignors. An account of this kind is closed bj a Day-Book entry, debiting it and crediting the consignor with the amount of net proceeds. Or if payment be made immediately, the account which furnishes the means of payment may be credited instead of the consignor. Merchandise in Co., and other Co. Speculating Accounts. These accounts are kept to ascertain what you make or lose in each Co. Speculation of which you have the management ; also the amount of net proceeds due each indi- vidual of the Co. The debit side contains all that the Co. costs you, viz. : the amount of your invest- ment, the charges and expenses paid by you, your commission for selling, and the amount of net proceeds due the other individuals of the Co. The credit side contains all that the Co. produces you, viz. : the total proceeds of Co. goods sold, and, at closing, your portion of the balance unsold, if any. The difference will be your gain or loss on the Co., which is usually carried to the Profit & Loss account by a Day-Book entry, although it may be transferred upon the Leger. Adventure, or Shipment Accounts. The debit side of an account of this kind shows the cost of goods consigned by you to another, to be sold for you. The credit side shows the net proceeds of sales as rendered by the party abroad, or the net proceeds of sales, by you, of goods received in return for those sent abroad. The difference will be a gain or loss, which is carried to the Profit & Loss account, usually by a Day-Book entry. There are frequently other items of debit and credit, especially in foreign adven- tures, but the general rule of debiting what costs you value and crediting what produces you value, will enable you always to make the correct entries. Adventure in Co., or Sliipment in Co. The debit side is to show what the adventure costs you, or your share of the Invoice of goods consigned; and the credit side the amount it produces you, or your share of the net proceeds of sales, as rendered by the party abroad. The difference is always a gain or loss, and is closed into Profit & Loss, usually by a Day-Book entry. If all the Ac't-Sales have not been received at the time of closing, the account may be credited "By Balance," for the amount remaining unsold. 183 QUESTIONS FOE EEVIEW, SET YI. What kind of business is represented in Set VI. ? How many years' business, and with how many partners for each year? Explain the object and treatment of a Cash-Book, as used with Set I. to V. inclusive. What other and still more important office has it, as used with Set VI. ? How often should it be balanced? In making out account-sales and account-currents, and in settling accounts with individuals, what must be done with the Cash-Book? Why are the accounts of Skip Massachueetts and Adventure to Canton left open in closing Leger A? Explain how to transfer accounts from one Leger to another. What test of the now Leger should be taken immediately after opening all the accounts in it? In this Set, what are the proper entries to be made by the iirm, in both Day-Book and Cash-Book, for each of the following transactions — and why ? 1st, Shipment of a cargo to Canton, pr. Ship Massachusetts, part of which was bought on their notes, part for cash, and part furnished from store; their note being also given for insurance, and they charging a commission for doing the business. 2d, Giving their note to an Insurance Co. for an open policy of marine insurance. 3d, Purchase of a cargo for cash, and shipment of same, pr. Bark Phillis, to the West Indies, to be sold for their account; insurance being effected ou open policy, and a charge being made for drayage, labor and commission. 4th, Receipt of flour on consignment, to be sold for account of another person, and payment of freight thereon in cash ; the drayage being performed by the firm's drays. 5th, Insurance on open policy, upon homeward cargo of Bark Phillis from the West Indies. 6th, Receipt of statements in detail of proceeds and expenditures on account of Adventure pr. Bafk Phillis, by which it appears there is a balance owing by the firm to the commission-merchants at Havana. 7th, Payment of duties on invoice of sugar received pr. Bark Phillis. 8th, Payment of charter-money and demurrage on voyage of Bark Phillis. 9th, Sale of sugar received pr. Phillis, for another person's note. 10th, Closure of the Sales-account of sugar, received pr. Bark Phillis, debiting it with the proper charges, and trans- ferring the net proceeds to the Adventure account 11th, Debit excess of interest on the Adventure account, and net gains as shown by the account-current 12th, Effecting insurance on open policy on pork to be sold for joint account of firm and another person. 13th, Receipt of pork from a person abroad, furnished by that person to be sold on his and their joint account, and payment of freight on same in ca«h, drayage done by the firm's drays. 14th, Salo of pork at cash price, receiving in payment a note sufficiently large to cover the discount, and make it equal to cash. 15th, Sale, for cash, of flour received to bo sold for account of another person. 16th, Closure of the Sales-account of flour sold for another person, and transfer of the net proceeds to his account 17th, Debiting the Sales-account of pork sold on joint account, with the proper charges, and transfer of a share of the net proceeds to account of the person interested with the firm in the company speculation. 18th, Entry of gains accruing on the joint pork speculation. 19th, Shipment of coffee to another person, to be sold by him, on his and their joint account, with insurance on open policy charges and commission thereon. 20th, Protest of another person's note at bank. 21st, Payment by another of his note which has been protested, with interest. 22d, Receipt of statements of voyage to Canton, showing a balance against the commission-merchants there, 5 per cent discount being required to convert United States currrency into Canton funds. 23d, Receipt of statements showing that a portion of the proceeds of Adventure to Canton were appropriated to th« payment of expenses of Ship Massachusetts at Canton. 24th, Closure of Sales of Tea, No. 3. 25th, Receipt of an account-sales for a joint adventure abroad. i 26th, Closure of Sales of Matting, No. 2. 27th, Purchase forcasli,ofa set of exchange, and remittance of same to cover drafts from Canton on account of the voyage. 28th, Closure of Adventure to Canton, by entry of debit balance of interest and the net gains. Describe the form and use of the Bank-Book;^— Check-Book; — Bill-Book; — Invoice-Book; — Sales-Book; — Outward- Invoice-Book; — Ac't-Sales-Book; — Ac't-Current-Book; — Letter-Book. What other auxiliaries are sometimes used, and for what ? What do Sales accounts or Consignment accounts show? What does the debtor exhibit? — What the creditor? — What the difference? — How closed? For what are Merchandise in Co. and other Co. Speculating accounts kept? What does the debit side contain? — What the credit? — What will the difference be, and how closed? What does the debit side of Adventure or Shipment accounts show ? What does the credit side show? — What will the difference be, and how closed? What does the debit side of an Adventure in Co. or Shipment in Co. show? What does the credit side show ? — What is the difference, and how closed ? 184 SET OF STEAMBOAT BOOKS. This set of books is adapted to the western river business, and will be found particularly serviceable to clerks on board western boats, but may also be applied to other boating operations. The books given are a Freight-Book, Passage-Book, Cash-Book, Leger, and Crews' Leger, which are all described under their .several heads. There are, besides, several smaller lv)oks, used for taking memorandums ; as, the Deck-Passage-Book, for entering sums received from deck passengers ; the Fuel-Book, which contains printed blank receipts, to be filled up, when fuel is purchased, and signed by the person to whom pay- ment is made ; and a memorandum book for taking an account of goods when received on board or delivered, from which the record is made in the Freight-Book. A Bill-Book is sometimes kept, although it is generally unnecessary, on account of the small number of notes taken, the business being principally cash. INSTRUCTIONS FOR THE STUDENT. In order the more readily to comprehend these books, it will be well to ima^e your self on board the Steamboat Sultana, acting in the capacity of clerk. After ruling, according to the forms given, enough paper for the several books, enter in the Cash-Book the amount of cash advanced by Simonds & Morrison, the owners of the boat, for its use. Next set down in the Crews' Leger the name of each of the hands, and the agreement made with him : after which, record in the Freight-Book all the goods taken 'on board at Cincinnati. Then enter in the Journal the note given for charges on Bill Lading No. 1 ; and in the C.-B. the cash paid on B. L. No. 2, and the cash received on B. L. No. 3 : also enter in the C.-B. the sums paid for groceries, marketing, and wharfage. Next record in the Passage-Book the passengers from Cincinnati ; after which make the entry, in the C.-B., of cash received for freight on goods landed at Louisville, and record in the Freight-Book the goods taken on board at that place. Then enter the following items in the order mentioned, putting them in the Cash, Freight, and Passage books alternately, as indicated by the nature of the entries, viz. : wharfage and canal tollage paid at Louisville ; passengers from Louisville ; Do. from Smithland ; wharfage paid at Cairo ; cash received for freight on goods landed at Memphis ; goods taken on board at Do.; passengers from Do. ; marketing and wharfage at Do. ; passengers from Vicksburg ; cash for freight on goods landed at Natches ; passengers from and wharfage at. Do. Now foot up the Passage-Book, and enter on the C.-B. the total amount received for fare. Next in order comes the amount paid for fuel — marketing at New Orleans — cash received for freight on the different bills — freight paid Brig Adelaide on goods re- shipped — and lastly the wages paid the hands, which are to be entered both in the C.-B and Crews' Leger. You may now close up the C.-B. after the manner described under that head, and jour- nalize it ; then post the Journal. Proceed in the same manner with the next trip ; and, having completed it. close up the Leger, and make a Balance Sheet. Y 185 STEAMBOAT SULTANA'S Steamboat Sultana's Trip No. l^from Shipper. Embarkation. Consignee. Destination. <« a O c^ Mark. Joseph S. Smith John Farlan H. Jennings Anson Avery P. Arbuckle & Co. Fellows & Co. Armour Lake & Co. Cincinnati Louisville Memphis 0. A. Ogden N. Orleans Townsend&Williamson James Morris J Moore & Co. " J. C. Buckles Louisville Pease & Co (C E. C. Stockton Pervis & Wood Memphis N. York N. Orleans N. Orleans (C Matches N. Orleans .A A © M; F This book is used for recording all goods received on shipment. The headings of the different columns will show the manner of entry. It frequently happens that the boat pays previous charges on goods for freight, storage, &c., or that she pays freight on goods reshipped by her. Sums so paid are entered in the " Freight and Charges paid" column, at the time of payment. The amount paid ior pre- vious charges, as shown by this column, is added to the boat's charges for freight as shown 186 FREIGHT-BOOK. Cineirmati to New Orleans, June ist, 1859. Description of Freight. Weight. Rate. Amount Freight and charges paid. Freight and charges received. Remarks. 200 Bbls. Whiskey 500 " Flour 44 30 88 150 00 00 75 25 700 00 00 00 313. 408 1,425 31 9 9 ,10 250 00 00 00 50 88 25 00 00 Gave note for charges on this bill $75 238 00 700 Bbls. Pork 300 Firkins Butter • 44 25 308 75 00 00 383 00 700 Bbls. Flour 900 " Pork 75 1,00 525 900 00 00 Shipper paid freight to New York. Shipped on Brig Ade- laide atN. Orleans, and p'd her freight. 1,425 00 10 Bbls. Eggs 20 " Apples 75 " Potatoes 30 30 30 3 6 22 00 00 50 $700. 31 50 45 Bbls. Flour 50 Boxes Cheese 2,500 15 6 3 75 13 9 88 40 Boxes Candles 35 " Soap 1,600 2,100 25 25 4 5 00 25 9 25 50 Pieces Bagging 50 Coils Rope 10 10 5 5 00 00 ' 10 00 250 Bales Cotton 1,00 250 00 800,00 2,456,63 by the "Amount" column, and their sum is extended into the "Freight and Charges received" column ; which gives the total amount to be received. This may be done at any time when convenient during the trip. When the trip is posted, the debit side of Freight account in the Leger should agree with the " Freight and Charges paid" column, and the credit side of the same account with the " Freight and Charges received" column. 187 STEAMBOAT SULTANA'S Steamboat Sultana's Trip No. 2, from Shipper. Embarkation. Consignee. Destination. Mark. i^ T. Saunders N. Orleans L. & G. Farwell & Co. St. Louis (C 9 m C( (( Louisville Memphis 24 00 " Bates ) «c C( I. Peterson u New Orleans 15 00 11 3 D. C. Budd Smithland 3rt J^^' STEAMBOAT SULTANA'S CREWS LEGER. This is used for keeping the accounts of the hands. It is a book of original entry, and in fact entirely independent of any of the other books. Its form is so simple as scarcely to need any description. The names of the hands are recorded in it similarly to the titles inthemainLeger, and if needed for convenience, an alphabet may be used for referring to them. Under the name of each person, the time when he commenced, and the agreement with him for wages, &c., is stated. Amounts paid him from time to time are entered to his debit, and, as often as is desirable, a settlement is made and credit given for wages. (^ This book is an exemplification of a short and easy mode of Single entry Book- Keeping, which may be used to advantage by a farmer, or mechanic, whose accounts are few and small, in preserving his business relations with his neighbors. See pages 55 — 57. It will also be found very convenient for keeping the accounts of the hands in a manu- facturing business. 200 CREWS LEGER. i James Maiming^ (Capt.) Dr. Cr. 1859 June (( 10 20 Commenced June Isf^ 1859, at $125 pr. mo. To Cash on % " Do. in full By § month's Wages 10 73 00 34 83 34 1 i 83 34 83 34 1 i 1 !~ Thomas J. Bates, {curk.) Dr. Cr. 1859. June c( 10 20 Commenced June Isi, 1859, at $60 ^r. mo. To €a,sh on % " Do. in full By f month's Wages 10 30 00 00 40 00 40 00 40 00 1 1 David Lyndes. ipuot.) Dr. Cr, 1859. June (( 10 18 a Commenced June 1st, 1859, at $100 pr- mo. To Cash on % " Do. in full By 4 month's Wages 10 . 50 00 00 00 6000 60 6000 1 Samuel Johnson, {Er,gineer.) Dr. Cr. 1859 June a 10 18 Commenced June Ist, 1859, at $100 pr. mo. To Cash on % " Do. in full By 1 month's Wages 20 40 00 00 60 00 60 00 60 00 Ralph Brown, iMato Dr. Cr. 1859. June a it 10 18 Commenced June 1st, 1859, at $60 pr. mo. To Cash on % « Do. in full By 4 month's Wages 15 21 00 00 00 36 00 36 361 00 2A 201 CREWS LEGER. Bmj. Stockton^ {Steward.) Dr. Cr. 1859. June 10 18 Commenced June 1st, 1859, at $25 pr. mo. To Cash on % " Do. in full By 1 month's Wages 4 11 00 00 15 00 15 00 15 00 1 B. E. Patterson^ {Carpenur.) Dr. Cr. 1859. June 10 18 Commenced June 1st, 1859, at $45 pr. mo. To Cash on % " Do. in full By 1 month's Wages 12 15 00 00 00 27 00 27 27 00 ■ ir Morris B. Butler^ {Deckhand.) Dr. Cr. 1859. June 10 (( 18 (( (( Commenced June 1st, 1859, at $18 pr. mo. To Cash on % " Do. in full By -I month's Wages 10 2080 To,80 J. C. Mlen^ {Deckhand.) Dr. Cr. 1859. June 10 18 , Commenced Jun£ 1st, 1859, at $15 pr. mo. To Cash on % " Do. in full By I month's Wages 00 Henry Webb, {Dtckhand.) Dr. Cr. 1859. June 10 c: 18 a Commenced June 1st, 1859, at $18 pr. mo. To Cash on ^ « Do. in full By I month's Wages 202 500 5|80 lOSO CREWS LEGER. Nathan Hatch^ (Fireman.) Dr. Cr. 1859. June 10 18 Commenced June 1st, 1859, at $20 pr. mo. To Cash on % " Do. in full By I month's Wages 3100 900! 12 00 Caleb Wbolson, (Firema*.) Df, Cf, 1859. June 10 18 Commenced June 1st, 1859, at $20 pr. mo. To Cash on % " Do. in full By 4 month's Wages 00 00 12 00 Sarah Williams^ (chambermM.) Dr. Cr, 1859. June 10 18 u Commmced June 1st, 1859, at $12 pr. mo. To Cash on % " Do. in full By 1 month's Wages 3 4 00 20 7 20 Peter Laivrence, (ca««6<,y.) J)r. Cr. 1859. June 10 (C 18 (( o 1> lO PM CO 05 o • o . G^ o o COo U lO r-< lO o o o o CO o rH t- o o o o CO o CO 05 CO 00 CO 00 05 Oi 1-1 lO lo Oi 05 I- .2 *^ Co "2 ^ o & I- ^« §^ o 00 o O CN O O --I o o o o o o r-i '^ (X 00 CD O L. Folio. •J 3 :a a Pi i-lr-(C5*iOlOiO 00 00 8 S3 c o o o P5 I f4 c D- O o • c CO o • — ii c a:§ A CO o o O lO lO lO t- CD o o 1—1 ?»> 216 PRACTICAL FORM, No. 2. This Form is intended for a retail merchandising business, in which the purchases are made periodically, or in large amounts. It is so arranged as to post to the credit of Mer- chandise monthly, and thereby save much labor. The books of original entry are a Day- Bookj Cash-Book, and Petty-Cash-Book. Posts are made from the Day-Book only. DIRECTIONS FOR WRITING UP. Prepare the necessary blank books, by ruling, heading, &c., after the formulas given. Enter in your Day-Book the effects invested on 1st inst., as shown in the Day-Book given ; also, in your Cash-Book, on the debit side, the Cash entry of 1st inst. Next enter, on the debit side of the Cash-Book, the receipt of Cash for Bills Receivable on the 7th inst. ; then, on the credit side, the payments of Cash for Expenses and Merchan- dise on the 8th. Follow with the entries of 9th inst., in both Day-Book and Cash-Book, then of 11th, and so on, in order of date, until the 16th inst. Now transfer all the entries from your Cash-Book to your Day-Book, as follows : — Say in Day-Book "Cash To Sundries" — seek the first debit to Cash (after the amount invested), and place it down underneath, with the date, to the account of Bills Receivable, checking opposite the amount in the Cash-Book, to show it is entered in the Day-Book ; — examine to see if there be any other receipts from the same source, and, if so, place them down also, with the date, checking, as before, in the Cash-Book ; — after finding all that comes under the head of Bills Receivable, take the next account in order in the Cash-Book, and so on, till all the debits are transferred. Write up the credits in the same manner, heading them, " Sundries To Cash." After this, continue the Cash-Book and Day-Book connectedly, until the end of the month. For convenience, all the postings may be omitted until the end of the month, although it will be seen that the arrangement is such, that, in actual business, the accounts of persons might be posted from day to day, so as to be always ready for settlement. DAY-BOOK. All transactions are entered in this book as they occur, except receipts and payments of Cash, which are first entered in the Cash-Book, and then brought into this once a month, or oftener. This book has an extra credit column, into which all the credits (sales) of Merchandise are extended. This column is footed, and the am<)unt carried forward from folio to folio, until the close of the month, when the sum total is posted to the credit of Merchandise. The items entered in the other two columns are posted from day to day, as convenient. By examining the formula given, the manner of entry and extension in the different columns will be readily comprehended. It will also be seen that the two credit columns are, together, equal to the debit ; thus at the close of the month, when all are posted, we have carried out strictly the principle, that "In amount every debit must have a credit," with very little more writing than Single Entry books would have required for the same business, and with much more satisfactory results. In order to have a proof of each page, an amount equal to the footing of the Merchan- dise column must also be carried forward into the Sundries debit column. 2 C 217 Dr. CASH-BOOK, FORM 2. Cash. Date. Mdse. Sundries. 1858. Oct. 1 1 Stock, Amount invested 910 50 (C 7 " Bills Receivable, Rec'd for D. Mann's Note, No. 3 525 OOv/ (C 11 " Merchandise, Sales pr. P.-C.-B. 25 37 (( 12 ** Do. '« << " 123 44 cc 13 ** Do. " «« " 62 31 ii 14 " Bills Receivable, John Allen's Note, No. 2 125 50 ^/ (C cc " Merchandise, Sales pr. P.-C.-B. 10 15 (( 15 " Do. " " 2 16 (( 16 " Do. " »' '« D.-B., folio 1, 217 42 440 440 85 85v/ 1858. 2,001 85 Oct. 18 To Balance from Old % , 566 09 li cc " Wm. Bates, in full of % 30 50v/ (.(. cc " Bills Receivable, siade & Co.'s Note, No. 4, due Jan. 18th /59, less Dis., pr. Contra 51 60v/ ii cc " Merchandise, Sales pr. P.-C.-B. 76 50 a 19 " Do. «• .« 110 00 i( 20 « Do. «> u » 31 00 li 21 " Do. "- «< " 60 78 (( 22 " ' Do. « «« «« 26 10 ic 23 " Do. «' « 356 05 it 25 " Do. <• " " 91 10 cc 26 " Do. "• " " 46 13 cc 27 " Bills Receivable, J. Bailey's Note, No. 6, due Feb. 12th, less Dis., pr. Contra 100 00%/ cc cc " Merchandise, Saies pr. P.-C.-B. 77 77 cc 28 " Isaac Norris, On^% ' 10 OOv/ (C (C " Merchandise, Saks pr. P.-C.-B. 81 29 cc 29 " Interest, Dis, on Note, No. 1, pr. Contra 8 76v/ cc cc " Merchandise, Saleg pr. P.-C.-B. 106 10 cc 30 " Do. D.-B., folio 3, 251 • 66 1,314 1,314 48 48x/ 2,081 43 1858. 1 To Balance from Oct 30th /58. Nov. 965 96"" The above Cash-Book is believed to be the most convenient form for a business like that to which it is intended to apply. The additional columns introduced are merely as a matter of convenience, to facilitate in transferring the entries into the Day-Book. The Merchandise column, on the debit side, is for all sales effected for Cash, and receives an entry at the close of each day from the Petty- Cash-Book. At the end of the month, or whenever you choose to transfer your Cash entries to the Day-Book, this column is added up, and the amount extended into the Sundries column. All receipts of Cash during the month, except for sales made, are entered at the time in the Sundries column, so that, whenever the sales are extended into it, the footing shows the total Cash debits. The Expenses column, on the credit side, is the recipient of sums paid for expenses from 218 CASH-BOOK, FORM 2. Cash. Cr. X/ato. Expenses. Sundries. fsssT Oct. 8 By Expenses, Travelling Fare, Board at Boston, • and other Incidental Expenses, as pr. Memorandum 31 25 u " Merchandise, Paid Freight 12 50v/ 9 ■L'O. Purchases, pr. Invoices 1,353 26v/ 11 " Expenses, Blank Books, pr. BiU 11 75 12 "Do. 1 Ton Coal 4 50 16 " Barber T. Lee, On % 6 00%/ u " Expenses, Wages of Clerks D.-B., folio 2, 16 50 64 64 00 OOv/ It u " Bal. on hand to Mw % 1 566 09 1858. 2,001 85 Oct. 18 By Interest, . pis. on Note No. 4, pr. Contra 77%/ a " Barber T. Lee, on % 2 OOv/ 22 " Expenses, Paid for Store Fixtures 13 00 « " Do. «« Bill of Stoves 22 50 23 " Do. «« Wages 8 75 25 " Do. " Porterage 1 13 27 " Merchandise, Bo't of Philip Trent, Agent of Abbott Lawrence, Boston, pr. Invoice 510 28v/ (C " Interest, Dis- on Note No. 6, pr. Contra 1 77%/ 29 " Bills Payable, Note No. l, favor of Draper & Warren, Boston, due Feb. 9th, having been sent, by my request, to the Quincy Bank for collection, I have paid the same, less Dis., pr. Contra, Am't 520 40v (( 30 " Expenses, Paid Wages Do. « Rent of Store, 1 mo. 9 15 12 00 (C C( " Barber T. Lee, «« in full D.-B., folio 3, 10 69 75%/ 69 50 50%/ (( (( " Bal. on hand, to Nov. 1st J58 965 96 ^^^^^-^^'^^ 2,081 43 time to time. Prior to entering in the Day-Book, it is added up, and the amount extended into the Sundries column, which then contains all Cash credits. In transferring either debits or credits from the Cash-Book to the Day-Book, only those items which are embraced in the Sundries column are taken ; thus the credit to Merchan- dise, and debit to Expenses are in sums total in the Day-Book. When Bills Receivable are paid before due, as in the entry of I8th inst., the whole face of the note is first entered, as if money was really received to that amount ; and then on the opposite side Interest is debited for the amount of discount on the note ; this gives the right credit to Bills Receivable. The same remarks apply to Bills Payable, when paid before due. As it would not be convenient in this arrangement of Cash-Book to make a formal balance of it nightly, this is done in the Petty-Cash-Book. 219 PETTY-CASH-BOOK, FORM 2. North Mams, Mass., October 11th, 1858. EXPLANATION. The Petty-Cash-Book here given is a small memorandum book, which lies in the mo- ney drawer where the receipts for sales during the day are placed. Each salesman or sales- woman, coming to the drawer to make change, or to place therein sums received, enters in this book the items sold. Then, at night, the footing must agree with the amount of money in drawer ; and this sum is entered in the Cash- Book, as the day's sales. The left hand marginal column is used for the initials of the persons by whom the goods were sold. This book is also used for balancing the Cash account, nightly, which should always be done in a retail business, to avoid errors. ^ Note. — ^The sales of only two days are here given. This will be sufficient to serve as a sample. When the business is suf- ficiently large to require it, a Petty-Cash-Book may be ar- ranged and used, as described under Form 5. L. W. Sewing Silk 6f, Thread if 10 B. T. L. 8 Yds. Fig'd Lawn, @80jf 2 40 S. A. J. 1 Pr. Kid Gloves 1137 L W. Tapes & Ribbons |35 B. T. L. 25 Yds. Eng. Thread Lace, @ 28/ 7.00 << 10 *' Lisle Edging " 30 f 3.00 1 " Bobbin Lace .15 (< 12 " Emb'd Muslin, " 55/ 6.60 1675 } lb. Sewing Silk, «' 8.00 200 S. A. J. Lace 10/, Sewing Silk 4/, Cord 7/ 63 <( 2 Prs. Lisle Thread Gloves, @ 31i/ '< 1 " Col'dKid 87 L. W. 1 (< <( << <( Oct. 11th /58. p.-B. 69 25 37" Cash debits, pr. C.-B., Mdse. column 25.37 Sundries «' 1,435.50 i,m,8i Cash credits, pr. C.-B., Expenses column 43.00 Sundries " 1,365.76 1,408 76 Balance Cash on hand 52 11 S. A. J. 1 Velvet Mantilla 35.00 B. T. L. 2 Yds. White Illusion, @ 32/ .64 35 64 Blk. Twist 13/, Edging 22/ 35 L. W. << 1 Box Artificial Flowers Floss 25/, Twist 15/ 1 50 40 S. A. J. 1 Changeable Silk Mantilla 18 00 B. T. L. 3 Lace Capes, @ 4.75 14 25 <( Artificial Flowers 25 << Inserting 30/, Gloves 56/ 86 L. W. ^ Doz. Italian Cravats @ 12.00 6 00 S. A. J. Trimmings 83 B. T. L. 1 Emb'd Robe 5.50 <( 12 Yds. White Satin, @ 1.25 15.00 L. W. 6 " Col'd Velvet, '< 3.00 15.00 35 2 50 ^ Doz. Neck Ties, " 4.75 37 " Twist 09 B. T. L. 2 Lace Capes, @ 3.50 7.00 << 2 Prs. Linen Gloves, "45 90 1 90 Oct. 12th /58. C.-B. 123 44^ Cash debits, pr. C.-B., • Mdse. column 148.81 Sundries " 1.435.50 1,584 31 Cash credits, pr. C.-B., Expenses column 47.50 Sundries " 1,365.76 1,413 26 Balance Cash on hand 171 ui ~ 220 DAY-BOOK, FORM 2. North Mams, Mass., October 1st, 1858. L.F 1 2 Sundries To Stock, For Effects invested ^3Sh, In Quincy Bank Bills Receivable, Sundry Notes, pr. B.-B. Merchandise, stock on hand, pr. Inventory 9th Merchandise To Sundries, For Good3j)urchased by me, in Boston, pr. Invoices To Bills Payable, Notes issued, pr. B.-B. " AbbottrLawrence, Invoice @ 6 mos. " Daniel Webster, 11th l( (< Wm. Bates To Mdse., pr. wife, 2 Yds. Linen Lawn @ 65 10 '« Cambric Edging " 26 16 «* " Inserting " 34 8 " Swiss " «« 22 1 Velvet Mantilla 1 Lace Cape 14th Expenses To Wm. Bates, For his BUI of Repairs 16th Mrs. Eliza Anderson To Mdse., 1 Pr. Blk. Kid Gloves Isaac Norris To Mdse., pr. daughter, 1 Blk. Silk Mantilla 2 Embroidered Collars (^ 1.122 Cash To Sundries, pr. C.-B., To Bills Rec, 7th 525.00 Do. 14th 125.50 " Merchandise, Cash Sales ' Mdse. carried forward 221 Sundries Dr. 910 1,200 389 50 3,696 25 75 150 375 1 2 5 4 25 4 1000 69 2 1,091 1500 25 7,363 35 04 Sundries Cr. 2,500 2,230 845 00 62075 1000 650 506 50 29 7,363:04 Mdse. Cr. DAY-BOOK, FOEM 2. North Mams, Mass., October l&7i, 1858. L.F. Sundries, Merchandise, Do. Barber T. Lee, Expenses, Mdse. brought forward To Cash pr. C.-B., 8th 12.50 9th 1,353.26 16th Sundries Dr. For the mo. 18th Barber T. Lee To Mdse. 1 Blk. Italian Crayat 20th Hiram T. Owens To Mdse., pr. son, 1 Yd. Col'd Silk Velvet 1 Pr. Blk. Kid Gloves 2 <« Lisle Thread «« @31« 21st Isaac Norris To Mdse., pr. -wife, 5 Yds. Svriss Muslin @ 25 1 " Green Barege 1 White Demi Veil 1 Blk. «' " 1 Fancy Silk Scarf Mrs. Eliza Anderson To Mdse.. 1 Embroidered Robe ! 25th Misses T. & M. WilUams To Mdse. 1 Ps. Blk. Crape 3 " Col'd «' @3.25 26th Profit & Loss To Bills Receivable, Note No. 1 is lost, the drawer, P. T. Lamb, having failed. James Peabody To Mdse., 1 Pr. Silk Thread Gloves 2 Pongee Silk Hdkfs. 29th 1.00 Hiram T. Owens To Mdse., pr. wife, 2 Yds. Bonnet Ribbon @ 80 3 " Cap " " 15 1 Muslin Cape i Mdse. carried forward 222 506 1,365 6 64 Sundries Cr. 29 25 00 300 975 2500 2,004 91 Mdse. Cr 1,435 76 2500 4 539 2,004 55 60 91 DAY-BOOK, FORM 2. North Jidams, Mass., October 29th 1858. CLF 2 5 1 5 2 5 3 ^/ 1 3 Mdse. brought forward Hiram T. Owens To Mdse., {continued) 3 Neck Ties @ 31' 2 Prs. Embroidered CnfFa " 56' 1 Box .Artificial Flowers 4 Linen Cambric Hdk'fs " 45 SOth Expenses. To Barber T. Lee, 1 month's Wages to date Cash To Wm. Bates, isth ""Bills Rec, " Do. 27th " Isaac Norris, 28th " Interest, 29th " Merchandise, To Sundries, pr. C.-B., 51.60 100.00 Cash Sales Sundries Interest, Do., Barber T. Lee, Dq. Merchapdise, Bills Payable, Expense^, To Cash 18th 27th 18th 30th 27th 29th pr. C.-B., .77 1.77 2.00 10.75 For the mo., Total- Merchandise Credits Sundries Dr. Sundries Cr. Mdse. Cr, 53960 455 94 2000 1,515,34 254 1275 51028 52040 69 50 3,«00 20 2000 3050 15160 lo'oo 876 1,11547 1,863 87 3,200 20 53960 9 79 1,31448 1,86387 TRIAL BALANCE, LEGER, FORM 2. Dr. Cr. L.F. 1 1 1 2 2 2 Stock - - - . Cash ... - Merchandise - Bills Receivable - Bills Payable - Expenses - - - Interest - - - - Profit & Loss Abbott Lawrence - Daniel Webster - James Peabody Mrs. Eliza Anderson - Isaac Norris - - - Hiram T. Owens - Misses T. & M. Williams 965196 4,09792 37290 163 25 1393 14179 1275 5,68207 2,500 00 1,709 60 6 22 845 620 5,682 07 In closing this Leger, the Mdse. remaining unsold, as pr. Inyentory, may be called $4,563.89. 223 o EH o O lO o o o oo 1 o to oo Tfi CO ci to oo -^ Ci t- t- tO 05 CO "^ CM CM o to to t^ to c> . ■* CM 00 CO 05 CO CO oo CO c CO CO Oi t- .CO Ci O CO T-l to CM lO Oi CO Tt^ CM L. Folio. rHTHTH^ ;a pQ fi a» K bll a a> t-i o ^ TO o ,^3 P>» ClH CL, o p w> TO ^ a ^ J5 32 o >> o o o a s l-H 1 il^ y y 7 E. M- LAFOURCABE, SON & CO. PRACTICAL Fpe^NO. 3. PLAN FOR JOURyA^ZING MONTHLY. ^'^4 SD S25 EXPLANATORY EEMAUKS, POEM 3. This Set exhibits a method of keeping books known to almost every experienced accountant as the plan of "journalizing monthly." It is designed for a wholesale, jobbing business ; but a similar form of accounts may be used to advantage in many other kinds of business, by varying the books of original entry slightly, as occasion may demand. In manufactories, in large retail stores, and in houses doing a general trading business, such a form is often used. The important books of original entry are Cash-Boolf,» Bill-Book, Sales-Book, and part of the Journal — which is used during the month Tor making such entries as would otherwise require a separate Day-Book. The first three mentioned are journalized monthly, by which process the various entries in each to any given account are summed up together in the Journal, and the postings are made in monthly totals, instead of a separate post for every separate entry. These four books (including the Journal only so far as it is so used) are in fact all Day-Books, i. e. they all contain the daily original re;pords of transactions, and are the books which must be relied upon for evidence in courts of justice. Therefore, the remarks made on page 111, as to corrections of errors in the Day-Book, are equally applicable to each of these books as used in this Set, which should be so kept as to be above suspicion of fraudulent intent or erroneous result. Besides these, there are various auxiliary books needed, examples of which have been given, with explanations accompanying them, on pages 170-182. CASH-BOOK. The explanation of Cash-Book, Set VI, pages 124 and 125, may be taken almost entire as the explanation of this Cash-Book, substituting the word " Jcurnal" wherever the word "Day-Book" occurs. Once a week, or as often as it is wished to make trial of the correctness of the Cash account, the debit and credit columns may be footed up, and then the amount of cash in bank (as shown by the Check-Book) and the amount in Safe may be placed in red ink a little to the left of the credit footing, and if their sum be equal to the differ^ce of the cash cplumns, it proves the account correct. In each subsequent testing of the account, the last preceding footings of the columns should be included in the additions made ; thus the gross amounts are carried forward until the end of the month. BILL-BOOK. Bills Receivable and Bills Payable are usually bound in opposite ends of the same book, styled Bill-Book. This book is so simple, that you will see by inspection its utility ; and all necessary explanations are made by the headings of the different columns. The entries extend across two opposite pages of the blank book, which together constitute but one page, or folio, of the Bill-Book. Other persons' notes to yon are entered in this book at the time of their reception, ano^our own notes to others are entered at the time they are issued. The amount of unpaid notes held by you against others, as shown by this book, must agree at all times with the balance of Bills Receivable account in the Leger ; and the amount of unpaid notes outstanding against you, as here shown, must agree with the balance of Bills Payable account in the Leger. This, like the Cash-Book, may be a mere memorandum book, for keeping a correct record of notes received and issued, or it may be, as it is in this Set, an important book of original entry from which to journalize. The total of the Journal entry " Bills Re- ceivable To Sundries" must correspond with the gross amount of notes received ; and the total of the entry " Sundries To Bills Payable" must agree with the gross amount of notes issued. 226 SALES-BOOK. The Sales-Book, like the books already spoken of, is often used as a mere auxiliary. But, in this Set, it is one of the main books of original entry, and one from T^hich Journal entries are made. All sales, both for cash and on credit, are entered in it, at the time the sale is made. At the close of each day, the sales for cash are transferred to the Cash-Book — first noting on a slip of paper the amounts of the several cash sales, adding them up, and comparing the total with the money actually received during the day for sales, which receipts should be kept separate from the other moneys on hand for the purpose of this comparison. If any portion of ^ch receipts are deposited in bank, a memorandum can be kept thereof, and counted in as so much cash ; so also with any other sums added to or taken from the same. The credit sales are supposed to be at six months, when no mention is made of the time. Credit sales are extended into the outer or right-hand column, but cash-sales are kept in the left-hand column, or if the amount of an entry has been extended, and subse- quently, but before the entry is journalized, it is paid, the figures in the outer column should have lines drawn through them, so that they will not be included in the footings of the Sales-Book. The credit sales are added up, and the amount carried forward from page to page till the end of the month. This book is journalized under the head- ing of " Sundries To Merchandise," and the total credit to Merchandise under this head must agree with the final footing of the Sales-Book. Nora.— Houses doing a different kind of business, can vary Uie books of original entiy, adopting such aa arc mort eonT«nient^ and (tUl journalize monthly, if desirable. Jt^ The disadvantage of this Form, compared with Form 4, is, that aooonnts of persons are seldom posted up ready for setUement, bnt are generally nearly, or quite, a month behindhand. JOURNAL Transactions oftentimes occur in the course of business which cannot appropriately be entered in the Cash-Book, or Bill-Book, or Sales-Book ; and for these some have a sepa- rate Day-Book, and journalize it monthly like the other books. But I prefer using the Journal as a Day-Book during the month, and placing such entries in it ; and then posting them directly from this first entry to the Leger. Purchases of goods on credit, and such cash purchases as you wish to have appear on the Leger, in the account of the person from whom you buy, are entered also originally in the Journal. The invoices are kept on file until the end of the month, when they are arranged in order, and entered " Merchandise To Sundries," all the purchases of any one man being brought together in one total in making the entry, so as to save labor in posting. The remaining and legitimate use of the Journal (that from which it takes its name) is to receive the entries transferred into it monthly from the other books. Directions for Writing up. Blank books are prepared for this Set, and accompany the treatise. Commence with the first day of the month, and by examining you will find one entry in the Journal, four in the Cash-Book, one in the Sales-Book, and three in the Bui-Book on that day, which you will enter in the same manner in your Journal, Cash-Book, Sales- Book, and Bill-Book — leaving the Leger folio columns blank, to he filled wlien you post. Next examine the different books of original entry, to see what transactions occur on the second day, and enter the same in your books. After completing them, proceed with the third day in like manner. And so on with each succeeding date, recording, in the proper books, all transactions that take place on any particular day, before making any entry of the day following it. This will give an idea of the exact process of entry in the counting-house. At the close of the month, journalize one of the books of original entry entire, then a second, and so on, until all are journalized It makes no material difference which book is journalized first, but the Cash-Book is the one here selected. Commence with thu debit «ide — " Cash To Sundries"' — and enter the various receipts to the credit of the proper accounts, and place together the several sums received at different times from the same account, so as to add up and post them ia one amount to the Leger. This renders it necessary to look over the whole of the Cash debits carefully for each account entered, to find all the receipts therefirom ; and, to avoid omissions and errors, check each sum in the Cash-Book, as soon as journalized. To afford convenient reference from the Journal to the Cash- Book at any time, affix to each sum its proper date. Having completed the debits, next journalize the credit side, saying " Sundries To Cash," and debitinjc all accounts for which payments have been made during the month. Journalize the Bill-Book under the headings " Bills Keceivable To Sundries," and " Sundries To Bills Payable," checking the itema as you proceed. " Sundries To Merchandise" is the proper heading Ibr the Sales-Book. The two columns for dollars and cents are not used to distinguish debits firom credits, but the first is for items, and the serond foi the extension of sums total. In posting the entries journalized, the last day of the month may be used for the date in the Leger. In opening the accounts in this Leger, you may observe the usual counting-house arrangement of them, which is to open the accounts of partners, property accounts, and all the general business accounts, in the first part of the Leger, by themselves; and to let all the personal acconats follow them. This renders convenient the taking of Trial Balances and other exhibits from the Leger. iO~ Be particular to make your own additions, extensions, and other calculations, wherever they occm: in any of the boolss. 227 CASH-BOOK, FORM 3. Dr. Cash. 1858. Nov. 1 To Edwin M. Lafourcade , Am't invested 10,000 OO^'' u i( " Louis P. Lafourcade, <( ii 5,000 ooy a li " Chas. Boutelier, Jun., (t It 5,000 00/ a 2 " Merchandise, Sales this day 37 oOr/ a 3 " Do. Of Grayson & Co., less Dis. pr. contra 357 40;/ a 4 " Do. Sales this day 319 80y^ u 5 " Do. <( « « 25 00|/ (I 6 Do. « (( « 37 88|/ 20,777 58 ii 8 " Samuel Tillotson, On'Tc 500 OOv/ a 9 " Merchandise, Sales this day 339 00^/' (C 10 " Interest, Dis. on Bills Pay. No. 3, pr. contra, $2,806.84 @ 5 % 140 34|/ u 11 " Bills Receivable, No. 1, discounted by Durbin, Payson / Bank of Louisiana 3 165|75 ^/ 11,985;84 v' ^^ 231 SALES-BOOK, FORM 3. New Orleans^ November \st, 1858. V- Ferree & Brother, Natchez. 15 Cases, 180 Prs. Men's Stout Boots @ 2.00 360 00 3 « 180 " " Lasting Gaiters 1.75 315 00 1^ Cooperages "r1 25 4 50 679 56 Ad V Durbin, Payson & Co., (Note pr. B.-B.) Vicksburg. 1 Case, 60 Prs. Men's Goat Nullifiers @ 80 48 00 3 " 180 " Women's Grain Buskins 80 144 00 2' " 120 " " Lasting \ Gaiters 90 108 00 1 " 60 " " Col'd " " 80 48 00 2 " 120 " " Kid Slippers R. R. 70 84 00 2 " 120 " Misses' Goat Lace Boots 76 90 00 1 " 60 " « R. R, Paris Ties 623 37 50 12 Cooperages 25 3 00 562 50 V Dolbear k Reikert, Memphis, Tenn. 128 Ps. Straw Trimmings @ 60 64 00 24 " French Straw Lace 1.25 30 00 12 " " Inserting" 1.50 18 00 Box A Cooperage 75 112 75 Paid Cash Sales, 50 Scores Sacramento Plait (§272 13 75 60 " " " 472 23 75 37 50 OCl V Willard Brady & Co., (Note pr. B.-B.) Orange St 75 Score? Rock Lnton Plait, No. 4 (§45 33 75 100 " " " " " 5 50 50 00 8 Mails' Coburg Bonnets " 2 25 2 00 18 « China Pearl " " 1 33 5 94 12 Women's " " " 378 4 50 16 _ « GofFer'd Edge " 33 5 28 2 Cases 50 1 00 Cooperage 50 102 97 Paick Grrayson & Co., Natchez. lessDis. 3 Cases, 180 Prs. Women's Calf Lace Boots % 1.25 225 00 119 Maids' Feather Edge Bonnets 1.10 130 90 4 Cooperages 25 1 00 1 Case 50 %^t ^ 4111 Paid Cash Sales, 10 Prs. Men's Stout Boots It @ 1.98 19 80 V Dolbear & Reikert, Memphis. 48 Women's Cap'd Bonnets @ 1.122 54 00 48 " Tulip " 1.20 57 60 60 " Eng. Straw " 372 18 75 Box & Cooperage It 75 131 10 Paid Jones, Brother & Co., (Net) Canal St. 4 Cases, 240 Prs. Women's Lasting Gaiter Boots^ @ 1.26 300 00 Am't forwa^ 1 1,588 82 23^ SALES-BOOK, FORM 3. New Orleans, November 6th, 1858. 1/ Paid Paid 12th 1/ Paid / Paid Paid V V Samuel Tillotson, 10 Cases, 600 Prs, Women's Goat Buskins 30 Ladies' Open Fancy Bonnets Gravier St. @ 1.15 382 Paid / Cash Sales, 100 Infants' China Pearl Bonnets @25 Jacob Lukens, Jun., 4 Cases, 240 Prs. Women's Kid Slippers R. R. 6th St. Louis St. @90 Morris L. Halsey, 6 Prs. Youths' Stout Brogans Camp St @ 622 Caleb Jarden & Nephew, 30 Infants' Diamond Satin Bonnets 40 Prs. Misses' Goat Lace Ties 8th Jackson St. @26' 75 Ferree & Brother, 10 Ps. Swiss Straw Cord 20 Doz. Tassels Natchez. @4.50 1.50 9th Cash Sales, 5 Cases, 300 Prs. Men's Stout Brogans Carson k Co. @ 1.10 Cash Sales, 20 Scores Rock Luton Plait @ 45 Mrs. Mary Green, 25 Women's Rock Luton Bonnets Calliope St @31> 11th Decoursey & Wise, 120 Scores China Pearl Plait 160 " " " " " California " 19 15 12 112 " Sacramento " " Tulip " 180 " Alboni 130 " Bedford 50 10 10 10 Fancy Coburg " Patent " II It Split Straw " Cash Sales, 18 Maids' Triplar Bonnets William P. Lewis, 2 Doz. Fr. Straw Lace, Emb'd 13th 15th (Note pr. B.-B.) Jackson, Miss. @ 15 25 17 35 472 26 31' 37 50 90 1.25 60 2 Boxes & Cooperage @ 35 Market St. @ 6.00 2E Am't forward 233 690 11 00 55 25 00 7 30 00 37 45 30 330 00 00 00 00 18 40 3 5 5 29 56 48 25 9 12 6 1 00 00 23 25 70 12 25 10 00 00 50 00 50 30 1,588 82 701 55 ;4400p 75 75 00 81 259 65 12 00 li 2"^48l58 SALES-BOOK, FORM 3. NeiD Orleans, November \Sth, 1858. 2,648 58 V Julius & George Lee, (Notes pr. B.-B.) Baton Rouge. 4 Cases, 48 Prs, Men's Stout Boots @ 1.75 84 00 4 " 48 " " Kip 2.00 96 00 4 " 48 " « Calf Pegged 2.50 120 00 4 " 48 " « " Sewed " ^ 3.25 156 00 4 " 240 " Boys' Stout Brogans 75 180 00 4 " 240 " " Kip 80 192 00 4 " 240 " Women's Kip Lace Boots 60 144 00 4 " 240 " " Calf " " 90 216 00 32 Cooperages 10+1t 25 8 00 1,196 00 IJtH Paid Peter Phelps, (Net) Market St. 23d 20 Doz. Blond Straw Lace @ 4.50 90 00 20 Ps. Swiss " Cord 4.50 90 00 ^^P 00 ZUtli Paid Cash Sales, 50 Doz. Tassels @ 1.50 75 00 on,i ^^d V Ferree & Brother, Natchez. 12 Maids' Feather Edge Bonnets @ 1.03 12 36 50 " Plain Straw " 622 31 25 62 Paper Boxes 3 1 86 45 47 ZOlll V Julius & George Lee, (Notes pr. B.-B.) Baton Rouge. 6 Cases, 72 Prs. Men's Calf Stitched Boots @ 5.00 360 00 6 « 72 " " " Sewed " 3.25 234 00 594 00 ^Otll Paid Benjamin Loper & Co., Poydras St 29th 8 Cases, 480 Prs. Women's Kid Slippers, R. R. "•7+11 @ 85 m 00 ^.iXa. Paid Cash Sales, 12 Prs. Children's Calf Brogans It @372 4 50 V Samuel Tillotson, Gravier St 15 Cases, 900 Prs. Misses' Goat Lace Boots @75 675 00 15 " 900 " « R. R. Paris Ties 60 540 00 1,215 00 Paid Cash Sales, 20 Girls' Diamond Satin Bonnets @272 5 50 "O+li ijJXsU. Paid Cash Sales, 18 Maids' China Pearl Bonnets @ 33J 6 00 30 Women's Tulip " 1.15 34 50 40 50 ■ oUtU V^' Benjamin Loper & Co., Poydras St. 5 Cases, 300 Prs. Youths' Stout Brogans @ 622 187 50 5 " 300 " " Kip " 50 150 00 5 " 300 « Children's Calf " 372 112 50 2 " 120 " Women's " Lace Boots 1.25 150 00 600 00 Total Sales on time for the month 6,299 05 234 JOURNAL, FORM 3. New Orleans, November \st, 1858. 1 1 Merchandise To Edwin M. Lafourcade, Invested, as pr. Invoice 13,628 34 3 ^'^f>l It) in 3 Joseph Ralston To Dolbear & Reikert, Order of J. Ralston on us, favor of Dolbear A Reikert, 25 00 2 ofl+li OUIU 3 1 Expenses To Joseph Ralston, • Wages for one month 65 00 Merchandise To Sundries, Purchases this month, pr. Invoices. 3 To Dufour, Nephew & Co., Notes @ 2, 4 A 6 mos., Ist 8,420 50 " " « « 3 mos.. 10th 652 36 << << « « g « 16th 422 10 << a « (> ^ (t 23d 210 28 3 " Webster & Shaw, Boston, Mass., Draft, 30th 3d 165 75 9,870 99 725 00 " " " " 4 mos.. 17th 556 50 3 " Margot & Haines, Note @ 60 days. 25th 5th 1,342 64 2,624 14 492 50 3 " Bouvier Brothers, 2 mos., 29th 13th 910 35 1,402 85 840 60 4 " " 4 ". " Lewis Davis & Co., 3 " 26th 18th 610 18 1,450 2,133 78 90 4 " Jones & RiggS, Lynn, Mass., 6 " 22d 1,840 00 4 " Brainerd & Son, 4 « 29th 1,445 80 4 " E. B. Bolton, Note @ 4 mos., « 712 00 21,480 46 Cash To Sundries, Receipts pr. C.-B. To Edwin M. Lafourcade, 1st 10,000 00 " Louis I . Lafourcade, « 5,000 00 " Charles Boutelier, Jun., « 5,000 00 " Merchjjndise, 2d 37 50 (( li 3d 357 40 (( a ^ 4th S19 80 a a 6th 25 00 « u 6th 37 88 11 i( 9th 339 00 (I (( 12th 216 00 a (( 13th 6 30 a (( 20th 75 00 u a 23d 180 00 a « 27th 10 00 a <( 29th 408 00 4 a te " Samuel Tillotson, << 8th 40 50 2,052 38 500 00 2 " Interest, 29th 10th 500 00 1,000 00 140 34 2 " Bills Receivable, 16th 11th 4 27 144 61 562 50 5 a (I " Mrs. Mary Green, (Sundry Debtors) 25th 30th 398 67 961 7 17 81 24,165 97 *J 1 235 JOUENAL, FORM 3. New Orleans, November 30^A, 1858. Sundries Merchandise, To Cash, Payments pr. C.-B. 1st 5th « 9th 15th 20th 27th Expenses, Joseph Ralston, Bills Payable, a Interest, Webster & Shaw, Louis P. Lafourcade, Bouvier Brothers, 30th 2d H 6th 9th 18th 22d 30th 8th 20th 10th 16th 3d 11th 12th 26th 29th 13th 18th 26th 30th -r" Bills Receivable , To Sundries, To Durbin, Payson & Co., Willard, Brady & Co., Ferree & Brother, a Decoursey & Wise, Julius & George Lee, Rec'd pr. B.-B. 2d 3cl 8th ti \ ' 11th 18th 25th Sundries Dufour, Nephew & Co., To Bills Payable, Issued pr. B.-B. 1st 10th (Entry continued) 643 162 15 82 562 780 56 232 1,554 113 465 2,101 186 571 30 12 3 14 2 150 50 94 00 10 00 74 75 94 34 50 87 79 40 12 00 25 50 25 75 75 00 5 10 00 00 2,806 492 84 50 17 28 10 19 20 87 12 80 93 40 377 377 25 25 398 398 398 297 297 67 67 66 00 00 2,806 2,806 2,806 652 83 83 84 36 9,072 86 7,528 99 213 15 3,299 97 725 500 1,000 13,378 562 102 754 259 50 00 34 12 00 00 00 95 50 97 50 65 1,790 3,460 00 62 236 t\ JOURNAL, FORM 3. New Orleans, November 30^A, I808. L.F. 3 4 1 5 4 3 5 4 5 5 5 5 5 5 2 1 1 1 Siyidries Dufour, Nephew & Co., it Margot_& Haines, E. B. Bolton, To Bills Payable, (continued) 16th 23d 30th 5th 29th « 9,072 86 42210 210 28 165 75 9,870 1,402 712 99 492 50 910 35 85 679 75 45 50 00 47 00 11,985 84 Sundries Ferree & Brother, (I Durbin, Pay son & Co., Dolbear & Reikert, ii Willard Brady & Co., Samuel Tillotson, I" Morris L. Halsey, Mrs. lyiary Green, Decouis^ey & Wise, William P. Lewis, Julius & George Lee, u Benjamin Loper & Co., To Merchandise, Sales pr (Sundry Debtors) « u (Sundry Debtors) ic S.-B. 1st 8th 22d 2d « 4th 3d 6th 27th 6th 9th 11th 15th 18th 25th 30th 799 562 243 97 112 131 75 10 50 85 701 1,215 55 00 102 97 1,916 55 1,196 594 00 00 375 7 81 259 65 12 00 1,790 00 118 23 25 14 92 00 600 00 6,299 05 1 Literest To Sundries, To Edwin M. Lafourcade, On Capital to Dec 1st " Louis P. Lafourcade, " " " « " " Chas. Boutelier, Jun., " " « " " 167 06 1 ! TRLAJL BALANCE, LEGER, FORM 3. Nov. ZOth, 1858. Dr. Cr. Dolbear & Eeikert Samuel" Tillotson ...... Ferree & Brother ..... Sundry ©ebtors Be^jamih leper k Co. .... Personal %a haTing balances due firm Joseph Etilston - Webster & Shaw Bouvier prothers Lewis Daris & Co. Jones & Kiggs Brainerd-& Son Perscihal ^ j haying balances firm owe* Edwin M. Lafq Louib P. Lafour Charles Boutelier, Jun. Cash .... Merchandise • Bills Receivable . Bills Payable - Interest . - . - Expenses Personal %a due firm Personal o/q a firm owe 218 916 45 15 600 1,796 ,787 02 ,28636 ,508:45 119 57 278 50 796.62 25 1,899 450 2,133 1,840 1,445 7,794 23,746 4,623 5,025 8,686 7,794 62 49.77(1 52 237 This Trial Balance, it will be seen, is made out in a different manner from the preceding ones. It is so done to show how personal accounts, which in real business are almost always numerous, may be brought within a suflBciently small space, so that Balance Sheets and similar ex- hibits can be easily made. The third division, commencing with the partners' names, is all that will be required in making out a Balance Sheet. See next page. In closing this Leger, the Mer- chandue remaining unsold, as pr. In- ventory, may be called §36,637.11. The Leger is given in the Key. PRINGLE & FIELD. PRACTICAL FORM, NO. 4. POSTING DIRECT FROM VARIOUS BOOKS OF ORIGINAL ENTRY. 289 EXPLANATOEY REMAEKS, FOEM 4. This Form is intended for wholesale, jobbing, importing, or manufacturing houses, and ■will be found a labor caving and accurate method of keeping their accounts. The books of original entry are Day-Book, Cash-Book, Expense-Cash-Book, Sales-Book, and Bill-Book. No Journal is used, and posts are made directly from each of the books of original entry, except the Ex- pense-Cash-Book. The books are so arranged that entries to the accounts of individuals may be posted daily, while most of the property and profit and loss accounts, which require numerous entries, are posted' monthly, or at other stated periods. A particular description follows each book given, except the description of the Sales-Book, which will be seen below. SuflBcient illustrations of Letter-Book, Check-Book, Time-Book, or other auxiliaries needed, have been given in the preceding portions of the work. DIRECTIONS FOR WRITIN& UP. You will find it of great advantage to write up this Form, which should be done in the following order, in the blank books which have been prepared for the purpose. On ihe first day of the month by examining you will find one entry in the Day-Book, and two in the Cash-Book, which you will enter in the same manner in your Day-Book and Cash-Book — leaving the Leger folio columns blank, to be filled when you post. Next examine the different books of original entry, to see what transactions occur on the second day, and enter the same in your books. After completing them, proceed with the third day in like manner. And so on with each succeeding date, recording, in the proper books, all transactions that take place on any particular day, before making any entry of the day following it. This will give an idea of the exact process of entry in the counting-house. After writing up the month's business, post from the several books to the Leger in the same order as above described, that is, in order of date. To distinguish to which book of original entry the folio in the Leger refers, all posts (except monthly total postings to the property accounts) should be entered as follows, viz., those from the Cash-Book, "To" or "By Cash;" from the Sales-Book, "To Sales;" from the Bill-Book, " To Bills Pay." or " By Bills Rec. ;" and those from the Day-Book should be marked " D.-B." before the folio. In opening the accounts in this Leger, you may observe the usual counting-house arrangement of them, which is to open the accounts of partners, property accounts, and all the general business accounts, in the first part of the Leger, by themselves ; and let all the personal accounts follow them. This renders convenient the taking of Trial Balances, and other exhibits from the Leger. 55" Be particular and make your own additions, extensions and other calculations, wherever they occur in any of the books. SALES-BOOK. This book is a record in detail of all sales, cash and credit. We have supposed the credit sales to be all at six months, and have therefore not mentioned the time, which should be done if sales are made at different terms of credit. Posts may be made daily, or at convenience, to the debit of the parties purchasing. The sales for cash, as entered in this book for any given day, must be summed up at night, on a slip of paper, and entered in total in the Cash-Book as " Cash Sales, This day," which total must also agree (in business) with the actual amount of cash received for sales during the day. These " Cash Sales" must then be marked " C-B." in the Sales-Book, to indicate they are transferred to the Cash-Book, and " S.-B." in the Cash-Book, to show they come from the Sales-Book; and must receive no debit post from this book. They should be summed up, however, in the amount taken forward from page to page, and posted in total with the other sales^ at the close of the month, to the credit of merchandise. Thus the credit post from this book exceeds the several debit posts by the amount sold for cash during the month. But this is offset, and an equilibrium produced by the postings from the Cash-Book, where the monthly debit post to cash exceeds the several credits by just the same amount. If a credit sale be paid before it has been posted, it can be noted in the margin as paid on such a date, marked " C.-B.," and entered in the Cash-Book as " Cash Sales." — See entry of 4th inst. When a sale is made for cash, the entry can be brought through the account of the individual on Leger, if preferred, as in case of S. C. Atkinson, 24th inst. Sales for notes must be debited the individual to whom sold in this book, and the note credited to his account in the Bill-Book. Houses of extensive business frequently have two Sales-Books, called odd and even Sales-Books, which are alternately used on the days indicated by their titles. The object of this is to give the book-keeper an oppor- tunity to post up the books. Note. It is the practice with many jobbing houses to take notes of all their customers. Many of these notes are not nego liable, but are taken merely as evidence of debt. For them a separate Bill-Book is kept, and they are not posted to the account of Bills Rec. in the Leger, but the sale remains to the debit of the individual as if he had given no note, and whea »ny navraenls are made, they are passed to the credit of his account, being endorsed on the note as usual. 240 DAY-BOOK, FORM 4. Philadelphia, January 1st, 1859. L. F. 1 — 1 Merchandise To Sundries, 1 To J. S. Pringle, Invested pr. Invoice, 565 15 1 2 « R. N. Field, « " 1 O.U 436 24 1,001 39 loia Interest To Laflia and Stephens, 4 For Int. on H. C. Corbit's Note, No. 3, Rec'd of ihem this day, as pr. B.-B., in part for Sales pr. S.-B. 1 F)*l< 4 83 2 H. C. Corbit To Sundries, i 1 To Bills Receivable, For >'o- 3, now due, 500 00 ■ 2 « Interest, On ^^ above, on.T. 5 25 505 25 5 Sundries To Brown, Shipley & Co. 5 Leaf & Morrison, Manchester, For their Draft on B., S. k Co., Liver- pool, in payment for Mdse., as pr. invoice of Jan. 2d, rec'd this day, Amt. £606, 13?. 8d. (@ 4 mos.) 2,696 37 1 Merchandise, B.,atCo.'»Com.®ii ^920 Shipping Charges at Liverpool, 12 4 Int. on Com. and Charges, 3 mos. 3 1 46 09 2,742 £10 7s. 5d. 46 2 Expenses To Sundries, 3 To P. C. Mortley, One month's wages. 60 00! 6 1 " Sam'l Bartlett, « " « 30 00| 90 00 Merchandise To Sundries, Purchases this month, as pr. Invoices and Cash-Book. 2 To Henry C. Corbil, Part Cash, Bal. Note, 3 mos., 2d. 11,245 65 4 « Do. Do. & 3 mos., 13th. " See, Brother «& Co., Note & 4 mos., 6th. 543 30| 11,788 95 1,54525 5 " Do. Do. Cash, 25th. « Leaf • In these averages grace ia added to the sale, but not to the Cash payment 242 CASH-BOOK, FORM 4. Cash. Cr. Bate. 1859. Jan. 2 " 3 " 4 2 D.-B, By 7 3 7 ^/ " 11 " 11 " 11 " 13 " 14 " 15 " 16 " 17 " 18 " 20 " 21 " 21 «' 25 " 25 " 25 « 25 D.-B. D.-B. 1 D.-B. 3 v/ D.-B. 6 v/ D.-B. D.-B. 4 31 M 81 « 27 v/ « 27 D.-B ' 27 6 ♦ 27 v/ ' 29 1 « 30 v/ v/ Henry C. Corbit, Cash Purchases, Expenses, Paid in part for Purchases, • • • Walsh & Co., Paid pr. Exp. C.-B. this week,- 8,275.50 1 g^290.62 15.12 J In Bank, In Safe, ^%' • Discount 5 ^ on P. G. Collins & Co.'s In full for our Note No. 2, favor P. C. Mortley, Interest, Bill of 4th, as pr. contra, Bills Payable, See, Brother 4 Co., due May 9th, less Discount pr. contra, Cash Purchases, Walsh & Co, Interest, Discount on Bills Rec No. 1, pr. contra,* Expenses, ^^^ P'- B^* C-B. this week, In Bank, 8.6*2.on In Safe, 64.2l/^^^ Cash Purchases, A. Clark, J. S. Pringle, On ^, Cash Purchases, Walsh 4 Co, P. C. Mortley, On ^, Interest, Discount on B. k W.'s «|g, as pr. contra, Expenses, Paid pr. Exp. C.-B. this week, In Safe, 60.84 J ^ Paid Duties, $806.70, and Freight, ' T. P. Cope," from Lirerpool, • • • Sent them this day, Benson 4 Co.'s Cash Purchases, $19.56 on Mdse, pr. ship Downer & Stewart, Draft on Bicknell 4 Co, New York, Interest, Paid l^% Prem. on above Draft, Cash Purchases, A. Gark, Do. Do. Walters4Co, See, Brother & Co. I'aid in full for Purchases this day, they allowing 3 ^ Discount, Expenses, Paid P'- Eip. C-B. this week, InBanJc, 5,886.211 hi Safe. 35.86r'^^°^ Bills Payable, !•» fiii f"' o"' Njte No. 3, favor Brown & Bowen, due April 5th, £617, Is. Id Cash Purchases, Exchange ® 9 ^ Prem. on above Note, Samuel Bartlett, On o^, • • • Interest, Discount on C. 4 B.'s a(. , pr. contra, R. N. Field, On a^, Interest, ^ Discount on T. W. L. & Co.'s ^, pr. contra, Expenses, Paid pr. Exp. C-B. this week, Expenses this month, pr. Exp. C.-B. $292.56, Interest Debits this month, Bills Pay. " " " Cash Credits " -" MBank, $4,517.70, In Safe, $96.35. By Sconce, 17 37 95 54 12 68 72 B. Pay. Dr. 1,545 2,742 4,287 25 46 71 CashCr. 7,500 225 28 7,753 12 1,545 53 17 36 9,424 545 175 454 25 512 33 25 10,662 825 1,341 1 150 125 850 54 14,011 2,742 246 16 3 95 4 139 17,259 4,614 21,873 33 14 41 * In calculating Int and Dis. in Forms 4 and 6, the time is reckoned in lays. 243 EXPENSE-CASH-BOOK, FOEM 4. Philadelphia, January 2d, 1859. 1859. Jan. Paid Store Fixtures, G. Sims, = 1 Ream Paper, J- Elliot, ' Drayman, ' Stove Bill, , . R- Simpson, ' Labor, E. Patrick, ' Advertising, U. S. Gazette, ' 2 Reams Letter Paper, J- Elliot, « Stationery Bill, " ' 1 Ton Coal, Peterson, > Painting, Thomas, ' Gas Light Bill, ' Freight pr. " Ocean," from N. Y ' Carpentering, G. Sims, ' Sundry Bills for Labor, < McCleary's Bill for Drayage, ' Circulars, U. S. Gazette, ' Postage, pr. Postage-Book, ' Rent of Store to Feb. 1st, < John Thomas for wages, « Peter Baker « « ' S. C. Martin « « Ent'd on Cash-Book, folio 1, 28 63 36 3a 54 139 50 25 o2 56 292 56 CASH-BOOK. In this Book are entered, either directly or through the medium of the Sales-Book and the Expense-Cash- Book, all cash transactions. In posting from it, all entries on the debit side (except the total Cash debit) are posted to the credit of the different accounts affected, and vice versa. In order to save posts, two additional columns have been introduced on each side of the Cash-Book. On the debit side, one column is for Interest credits and one for Bills Receivable credits. On the credit side one is for Interest debits and one for Bills Payable debits. A glance at the book will show that entries, affecting either of these accounts for which separate columns are introduced, have their amounts extended into two columns the cash column and one other. No posts are made daily to Interest, Bills Rec, Bills Pay. or Cash, but the amounts extended to each of these accounts must be carried forward in the columns provided for them, and posted in total at the close of the month. Items to the debit of Expenses, as brought in weekly from the Expense-Cash- Book, for the balancing of the Cash account, may also be passed over in posting, and the total expenses, as shown by the footing of the outer column of the Expense- Cash-Book, maybe entered in the margin of this Book at the close of the month, for the purpose of posting. " Cash-Sales," as explained in remarks on the Sales-Book, are marked "S.-B.," and receive no post except m monthly total to the debit of Cash. When Cash is paid out for goods bought — or for duties, exchange, freight, &c., where these items of expense are properly a part of the cost of purchase — the entry must be made " By Cash Purchases," in this book, and marked "D.-B." At the close of the month, these must be written up in the Day-Book with other purchases, and marked "C.-B." to show they are taken from the Cash-Book. No post is made to the debit or credit of " Cash Purchases," but an equilibrium is produced by including the amount in the monthly debit post to Mdse. from the Day-Book, and in the monthly credit post to Cash from the Cash-Book; the process being precisely similar to that described in the treatment oi " Cash-Sales." ♦ Purchases for cash may, if preferred, be brought through the account of the individual in the Leger. See Ent. to See, Bro. & Co., 25th inst. Once a week, or as often as it is wished to make trial of the correctness of the Cash account, after bringing in the amount from tjje Expense- Cash-Book, the debit and credit cash columns may be footed up, and then the amount of cash in bank (as shown by the Check-Book) and the amount in safe may be placed a little to the left of the credit footing, and if their sum be equal to the difference of the cash columns, it proves the account correct. The entries may then be continue'd on without closing the book till the end of the month. When a Bal. of Cash on hand is brought down from a preceding month, this balance must be deducted from the footing of the debit column, to obtain the right amount for posting to the debit of Cash. This may be done in the margin. ^ Note. In this Form no Bank account is kept in the Leger. Deposits in Bank are treated as Cash. *' EXPENSE-CASH-BOOK. This needs no explanation. It is a small book of expenses kept after the formula shown, and having its foot ngs taken to the Cash-Book as often as desirable. 244 SALES-BOOK, FOEM 4. Philadelphia, January 2d, 1869. L. F. — 3 N. L. Lippincott «& Co. 132 ^ Second Si. 129» 5 Ps. Italian Lustring 128' } 648 Braces, 405 Yds. @ 80 127 131«J 324 00 "A C-B. <4a Cash Sales, J. Milton. 3 1 Doz. Cashmere Scarfs 28 00 Elliot & Burnap, (Note pr. B.-B.) Walnut St 5 Ps. Cashmere d'Ecose 93 Aunes, 122« Yds. @ 60 73 50 8 " Mouseline de Laine 195 " 243« « 50 121 88 6 " Super Gros d'Afric 396 " 495 « 82 405 90 601 28 C^B od Cash Sales, F. Bates. 3 1 Doz. Ladies' Kid Gloves - , . , , it 7 25 Samuel C. Atkinson, Chestnut St. 2 P». Col'd Gros de Levant 118 Aunes, 147> Yds. @ 90 132 75 10 "\ Blk. Alpacca 320 « 47» 152 00 20 "i CoPd Do. 610 " 45 !}74 50 6 "' Olive French Merino 200 Aunes, 250 " 75 187 50 C.-B. 6 " Blk. Paris Crape 72 « 40 28 80 775 55 Cash Sales, F. Bates. 1 Litht Silk Shawl 9 00 \ jlfh C.-B. P. G. Collins & Co., Market St. ^ 8 Ps. Fig'd Alpacca 243 Yds. & 30 74 40 •a 2 " Plaid Do. 60 « 41 24|60 •1 4 Barege Shawls 5,00 20 00 119 00 otn CB. Cash Sales, S. Burke. 12 Ps. Irish Linen 144 Yds. & 80 115 20 3 4 " Mull Muslin 48 " 30 14 40 129 60 Jos. Roberts & Co., (Note pr . B.-B.) Harrisburg. 5 Ps. White Paris Crape 60 Yds. @ 45 27[00 8 " Blue Do. Do. 96 " 50 48! 00 lO " Super Balzarine 555 « 65 305 25 C-B. 20 " Barege 885 « 37» 331 88 712 13 Cash Sales, R. Bacon. C.-B. 1 Ps. Blk. French Merino 42 Aunes, 52« Yds. ® 72 37 80 Cash Sales, J. Myers. 1 Doz. Elastic Mitts 4 25 cjin 4 Turner, Wheelwright «fe Co. Pittsburg. 10 Light Silk Shawls 10,00 100 00 14 Barege Do. 4,50 63 00 16 Cashmere Do. 7,50 120 00 10 Brochea Do. 12,00 120 00 12 Embroidered Thibet Shawls 10,50 126,00 8 Plain Do. Do. 7,50 60 00 6 Do. Do. Do. wool fringe 4,00 | 24|00 7 Do. Blk. Do. Do. " " 3,75 Am't forward 26 25 639 25 3,387ill 245 SALES-BOOK, FORM 4. Philadelphia, January 9 th, 1859. L. F. C.-B. C.-B. C-B. C.-B. C.-B. C.-B. C.-B. C.-B. C-B. Cash Sales, 8 Brochea Shawls 16 Embroidered Thibet Shawls Bryan & Co. (a) 10,00 9,00 Cash Sales, 30 Ps. Assorted Alpacca Cash Sales, 1 Ps. Linen Cambric Burgess & Walker, 4 Ps. Swiss Muslin 10 " Jaconet Do. 10 " French Lawn 9th 10th nth 13th Turner & Bates. 923 Yds. & 45 T. Walker. Lancaster. 48 Yds. & 38 120 " 40 300 « 35 Laflin & Stephens (Corbit's Note in part pr. B.-B.) Cincinnati. 20 Ps. Col'd. Florence 50 " Assorted Persians 1482 Aunes, 1852" Yds. & 32 1650 Braces, 1031' " 20 T. W. Lakeman & Co. ■ 12 Cashmere Scarfs 20 Barege Do. 6 Doz. Prs. Black Kid Gloves 4 " " Light Do. Do. 14th Spruce St. 2,50 2,00 7,25 7,00 Cash Sales, 5 Ps. Black Lustring 578 Braces, 361' Yds. 80 Cash Sales, 3 Ps. Bandana H'dk'fs. S. Burton. 7,25 15th Cash Sales, 2 Doz. Prs. Light Net Gloves Cash Sales, 1 Ps. BIk. French Satin Cushing & Brother, 6 Ps. Linen Cambric 4 Doz. Prs. i Fing'd Mitts 2 " " Elastic Do. 16th 17th 18th G. Murray. 52Aunes, 65 Yds. & 1,00 Chestnut St. 72 Yds. ® 1,30 3,75 4,25 Cash Sales, 3 Ps. Poult da Soie S. Evans. 180 Aunes, 225 Yds. & 75 Cash Sales, 6 Ps. Pongee H'dk'fs. 1 « Blk. Silk Velvet Clark & Co. (g> 3,50 18 Aunes, 22" Yds. & 3,00 Miles «fc Ransford, 10 Ps. Shusan 10 " Crape de Laine 6 " Green French Merino 5 « Drab Do. Do. 5 « Blk. English Do. 20th (Note pr. B.-B.) Columbus, O. 330 Yds. (S> 20 270 Aunes, 337" " 23 236 " 295 " 65 176 " 220 « 72' 164 « 205 « 50 Am't forward 246 80 144 18 48 105 692 206 66 00 94 50 191 75 159 50 102 50 614i25 6,525;60 SALES-BOOK, FORM 4. Philadelphia, January 2l5^, 1859. L.. F. C-B. 5 C-B. 3 C-B. C-B. 3 C-B. 6 C-B. C-B. 6 C-B. 1 Cash Sales, 3 Ps. Fig"d Gros de Nap. 1 Doz. Barege Scarfs 22d Jte pr. B 23d 24th 1 27th « 28th 29th rant « « « 31st ngs T. Walker. 189 Yds. ® 67 126 24 63 00 25 50 00 12 40 52 23 6,525 150 228 37 1 536 221 23 475 670 154 141 225 249 40 60 63 116 52 60 Wm. Chapman, (^" 2 Ps. Col'd Poult de Soie 15 " Pongee H'dk'fs. 10 " Choppas Do. -B.) Canton, O. 124 Aunes, 155 Yds. @ 75 3,50 6,00 75 334 230 Cash Sales, 4 Ps. Crape de Laine 114« Aunes, 142» Yds. ® 26 12 Samuel C Atkinson, 4 Ps. Blk. Satin Vesting 4 " Fig'd GroR de Nap. Chestnut St. 112« Metres, 121» Yds. 2,75 256 Aunes, 320 " 72 discounted 5 ^ for cash 564 28 29 144 77 00 50 Cash Sales, 4 Ps. Col'd Marcelline 3 " Blk. Bombazine L. M. Oviatt. 240 Aunes, 300 Yds. (3) 43 62 " 77« " 1,00 50 1 1 Cash Sales, 4 Ps. Blk. Crape B. Wesley. 00 N. L. Lippincott & Co., 3 Ps. Blk. Silk Velvet 2 « « « Serge Second St. 56 Aunes, 70 Yds. 3,15 204 " 255 " 1,00 220 255 50 00 50 107 310 253 00 00 44 00 00 00 00 Cash Sales, 3 Ps. German Merino 4 " Col'd Fig'd Gros de Lei 7 " " Marcelline E. Ely. 133» Yds. 80 24S Aunes, 310 « 1,00 576 " 44 44 66 75 Aiken & Ransford, 2 Ps. Blk. French Satin Seventh St. 112 Aunes, 140 Yds. 1,10 00 Cash Sales, 6 Ps. C^l'd Fig'd Alpacca 1 " " Gros de Levant Binney & Co. 165 Yds. (S 40 60 Aunes, 75 " 1,00 00 225 24 Cash Sales, 5 Ps. Blk. SUk Vesting J. Emm. 90 Aunes, 112» Yds. @ 2,00 00 Welty & Martin, 15 Doz. Blk. Italian Cravats 2 lbs. Blue Blk. Italian Sew Broad St Sol E. 6. 6. 812, 15, 13, 812 00 Cash Sales, 6 Thibet Shawls 6,70 20 Total month's Sal es posted to Credit of Mdse. i ' 1 9,678 C3 / BILL-BOOK, FORM 4. Bills No.of Note. When Rec'd. To Orcrfit of whom. ►4 Drawer. In whose favor. For what rec'd. Date of Note. 1 2 3 4 5 185' Jan. (( 2 6 13 20 22 Elliot & Burnap J. Roberts «fc Co. Laflin & Stephens Miles & Ransford Wm. Chapman 3 3 4 5 5 1 Elliot & Burnap Ourselves on J. R. & Co. H. C. Corbit Miles and Ransford Wm. Chapman Debit total Bills Rec'd Ourselves Ourselves Laflin & Stephens Ourselves Ourselves this month . . Mdse. « « « 1859 Jan. 1858. Nov. 1859. Jan. 2 6 16 20 22 Bills No.of When Note. Issuea. 1859. 1 Jan. 2 2 (( 6 3 « 20 4 « 29 To DeMiofwhom. H. C. Corbit See, Bro. & Co Brown, Shipley & Co., Liverpool S. B. Rawley Drawer. Ourselves Ourselves Brown, Shipley & Co. on ourselves Ourselves Credit total Bills Issued In whose favor. H. C. Corbit See, Bro. «fc Co. Brown & Bowen S. B. Rawley this month . . For what given. Mdse. <( Account of B. Shipley & Co, Mdse. BILL-BOOK. A moment's inspection will show that the entries in this book extend across two opposite pages, which together constitute but one page, or folio, of the Bill-Book. When the note to be entered is an accej^ted draft, both the drawer and drawee may be mentioned in the column headed " Drawer," as in Bills Rec. entry of 6th inst., and Bills Pay. of 20th inst. Bills Rec. are entered in the Bill-Book at the time of their reception. They are posted to the credit of individuals daily, or at convenience, and to the debit of Bills Receivable account in monthly totals. Bills Pay. are entered in the Bill-Book when issued. They are posted to the debit of individuals daily, and to the credit of Bills Payable account in monthly totals. Bills Payable and Bills Receivable usually occupy opposite ends of the same book. REMAUKS ON THE PRIVATE LEGER. Houses frequently find it desirable to keep from public observation the amount of their capital and by whom invested, their gains and losses in business, &c. For this purpose some have a Private Leger, in which they keep the partners' accounts. Merchandise, Profit and Loss, Interest, and such other gaining and losing accounts as they think proper, and some- limes, also, the accounts of the different clerks employed. In connection with this Leger, a Private Day-Book is usually kept, in which entries on opening the books, entries for interest on capital invested, for salaries, &c., are made. Those who wish to make use of this Leger will find the plan of posting from the books of tf original entry, pursued in Form 4, very convenient for so doing. Entries in any of the books w of original entry, (Private Day -Book included,) either to the debit or credit of accounts kept in the Private Leger, must be posted to this Leger, and all other entries must be posted to their proper accounts in the main Leger. Thus the two Legers contain the same matter usually embraced in one, and may be considered as constituting strictly but one, although bound in two covers ; and Trial Balances, Balance Sheets, and other Leger exhibits, must contain the acfounts in both. . m) ^ 248 V BILL-BOOK, FORM 4. Recdvalle. Time. 6 mos. 6 mos. 6a d's. 6 mos. 6 mos. "Where due. When due. | Amount. Remarks. i 18 i a < "-> 5 9 23 25 1 1 J. z i Philadelphia Bank of N. America Philadelphia « 601 28 712 13 500 00 61425 228; 75 Discounted Jan. 1 Ith. C Int. from date, I Charged Corbit on the 18th. Rec'd Jan. 28th, $400. 2,656 41 i Time. "Where due. "When due. i 1 i 5 5 9 2 •-» i < i u &_ 1 3 mos. 4 mos. 3 mos. 3 mos. 1 Bank of N. America Philadelphia Philadelphia Philadelphia Bank 3,745 1,545 2,742 1.260 65 25 46 75 C Purchases $11,245 65 |Cash 7,500 00 Discounted Jan. 9th. £617 Is. Id. Discounted Jan. 27th. 9,294 11 t \. ^ ^ ^ TRIAL BALANCE, LEGER, FORM 4. N. L. Lippincott & Co. S. C. Atkinson .... Turner, Wheelwright & Co. Laflin & Stephens .... Aiken & Ransford .... Welty & Martin .... Personal ^^cd having balances due firm H. C. Corbit . . . . . P. C. Mortley Samuel Bartlett . . . . . C. W. Churchman .... Personal °>c4 having balances firm owe J. S. Pringle R. N. Field . Cash . . . . Merchandise . Bills Receivable . Bills Payable . Interest Expenses Personal ^^ due firm . Personal jC) firm owe 2G 799! 50 87555 33925 294122 154100 249100 2,211 52 4,614 05 16,04194 1,155 13 382 2,211 24,405 20 2,563175 2,638!30 8,390'l5 8,340 79 6,006l40 29 56 2,638,30 24,405:20 This Trial Balance is mads out in the same manner as the Trial Balance to Form 3, ano for the reasons there given. In closing this Leger, the Jfdse. remaining unsold, as pr. Inventory, may be called $18,260.25. The Leger and Balance iSheet are given in the Key. 249 ^ d 2; o o O Pu .0 o u >-. c! nJ bo .■S o ^ !^ "S b «1 ID H S O fl rf ^ " 2 "» » o rt 13 S ^ a ii a fc£ i P S ^ .-I n3 -^ aj rt o ?T< f^'S 0} 0) ^ lU !>, . do .2 -" ci o a M -C ^ C! w bo's 3 H O C -ti &(!y aj IS ri rt Ki tuo i: Li ii CO n3 -Sdc|^2:S w^ § " >S c2 OJ c^ c4 »v .a 1 O) t_ C IJ «> CO a? cti "e ^^Sc ^ 5S g52-« « "is-S-g •« -"co fe S rt as ^J2 ^ •-• C '^ ^ '".'rf !2 w w CO •S .r: ♦" ■"" — fj .-H B ea /- ••■.-s ^ co w a a u o Cd ID O cd ^g5-s.-SvH^^coOjg>>2S'^ P5 "i^ja^gf^s^::^^ _ ii a d ^ t. - o •r^ O 4, « 13 a d a o J J3 Oh-O ^ - „, - dgW^.2W-fco"M-o •^t^^e-S^J . °-^ « O « — «S-£^:SQ3co^^g.> l^g o^^g-^« a „ « C S Oh te 4, ^ ■SP-'^ g O d •*-* (T^ '^J KA CU CO >> 2 - ** fc." fl> s s 4,-1^ a sf=^ ^ S rt "^ =i ?l.t.,2g.&sl?Si.|t.-|!S ,$:'± " g W "« -' >.^ d .S cd OJ t« ^ cd .2 H -= = >;^ g N « « I Oh a M Ph ^ 3 o o I W EH EH 1^ 3 ^ 3 2 s 1 ■^ i-< > > 1 ^Sg^S — in 51 »n 10 t>. -N 10 S2 ■0 1 rt CM as ■* OrH ^ iSS SR H CO m *« . cd . ^ . . . • >-j Oi • • • . • • lO 05 w ■ t-M • • • • 00 . • -H . . , /an. n, . a • ■ S 1 . • . '-n • 1 5> . . 3 &> » • § "W . -= e 0. . <^ » j< 3 a • -sm Wed erage, onery, n Coal, ig Boor L ertising in in Drawer s . S . c ^ 3 - S -S is^^al -3 BhM^&h-iJ cq g;fcPKx t> n ifi m a> 03 w to rf "* M CO 05 10 2|:33?JSS S 1 3 1 rt'^ra r-1,-1 IN 1 iH CSi^TfCC A • 1 1 1 % aoc-i-*os •^ r & * I-- 35 1 1 n' e> « « -■| 1 mootooor^ira Trcii?5irjot(NT-( U5 w OS oj o< t» in lo ej rH rH IS 00 CO 0» b: I ■* 1 i-cio i^cs o> 'S PJ "> "» ' ' 1 250 JAMES DUNLAP & CO. PRACTICAL FORM, No. 6. The main featmes of this form are taken from the practice of one of the largest commission houses in the city of Philadelphia. Great care has been bestowed upon its arrangement, to make it acceptable and useful to those for whom it is particularly intended, and it is confidently believed that commis- sion and company speculating houses will find it better adapted in its general arrange- ment, and more accurate in detail, for their business, than any thing before in print. A mode of connecting wholesale merchandising with commission operations, is also illustrated, by which Sales for account of Merchandise are treated the same as Sales for account of a Consignor. A particular description of each book will be found immediately following it. Posts are made from the Cash^ook, Sales-Book, and Journal. f DIRECTIONS FOR WRITING UP. Blank books have been prepared for this Form also. In writing up this Form, first take the Cash-Book, Sales-Book, Journal, Receiving- Book and Expense-Cash-Book, and make entries in them severally and successively in order of date, as explained in directions to Form 4. Having completed them all, (except the entry of 31st, " By Charges," on the credit side of Cash-Book, and the last entry in Journal — which you will leave for the present,) transfer the sales, as shown in your Sales-Book, to the difierent " Sales for account of" consignors in the Account-Sales-Book. This process is entirely similar to posting. Next enter, underneath each Account-Sales, the charges as found in the Receiving-Book, and calculate for yourself the interest, commission, and guarantee. Then journalize the Account-Sales-Book, which will complete the Journal. Lastly, add together the itfems of interest in the several Account-Sales, and enter the total in the Cash-Book " By Charges" — also bring in the expenses from the Expense-Cash-Book. When the books have all been prepared, post the Sales-Book to the Sales-Leger ;* and then post all other entries from the Cash-Book and Journal, in order of date. Note. — Some prefer to have the Bill-Book prepared with twelve divisions, one for each month in the year, and marked upon the outer edge of the leaves, similar to the Alphabet of a Leger. Then, whenever a bill is to be entered, place it in that division marked with the month in which it falls due. By this arrangement, a ready reference can at all times be had for ascertaining what bills ikU due in any month. If more bills usually fell due in one month than another, let the division for that month be the largest, * See remarks on Legers, page 261. 251 CASH-BOOK, FORM 6. Bt, C«s^, iVo/es and Interest. ., « Date. L.F. Int. Dr. B. Rec. Dr. B. Pay. Dr. Cash Dr. 1859. Mar. 1 1 To J. Dunlap, Capital invested 3,000 00 (1 (( 1 " S. Robinson, " " 3,000 00 (( (C 1 « T. W. Welch, 3,000 00 (( 10 4 « B.Warner & Co., Their note for sales, due July 13th, No. 1, 1,420 00 (( 11 4 « E. Jones, His check on Phila. B'k for sales 1,535 75 (( 14 4 " J. Thompson, Rec'd for sales 2,001 75 (( 17 5 " J. Lapsley& Co., « " « 1,895 25 u 24 ^/ " Bills Receivable, Rec'd in full for note No. 1, due July 13th, Am't $1420 26 27 1,393 73 (« (( 4 " J. Thompson, His note for sales, due Sept. 27th, No. 2, 607 00 tt (( 4 « Shepherd & Co., In full for «g, due July 15th, Am't 3,068 57 78 3,010 22 «« 29 n/ " Cash, Paid note No. 1 and Int., pr. contra. 14 49 3,621 69 n (( n/ " Do., " « « 2 « " 4 66 1,866 04 ^k 30 4 " J. Smith, For note in full for ^, due July 18th, No. 3, 2,474 72 t( 31 4 2 « B. Warner & Co., Their note for sales, due Aug. 3d, No. 4, K Interest debits this month 1 219 83 M 103 20 (( (( 2 Bills Rec, « " ^ 4,721 55 4( 2 1 Bills Pay., « V Cash « « 5,487 73 t( 18,896; 70 Apr. 1 To Bal. from Old % 5,518;52 ^ The object of entering notes and interest in this book, in preference to the Journal, is twofold, — first, they ai* most frequently connected with cash entries, and second, in this book we are enabled,- by appropriating a set of columns for all cash, bills and interest entries, to post in weekly or monthly totals to these accounts, while the other accounts which balance these columns are posted daily, or as often as we choose. When either Cash, Bills Payable, Bills Receivable, or Interest are debtor, and some of them also creditor in the same transaction, the entry may be made on hoth sides of the book, for the purpose of bringing into columns all the sums entered to these accounts — as seen in entries of 24th and 29th. Then, in posting the individual items of the book, those accounts found debited or credited, which have columns appropriated for them, must t)e checked and passed over. The footing of each of the several columns this month is the amount to be posted to 252 CASH-BOOK, FORM 6- Cash. Notes and Interest. Cr. Date. L.F. Int. Cr. B. Rec. Cr. B. Pay. Cr. Cash Cr. 1859. iWar. 5 1 By Charges, • Our bond for duties on Mdse., due Apr. 7th, with Int., No. 1, 3,621 69 (i i( 2 " Lovering&Bache, BiU of exchange on Barings «& Co., London, for £900, Bo't of Clark &, Co., and sent them this day 4,000 00 ii (( 1 " Merchandise, -j- Premium on the above bill ©91 % • 370 00 i( 14 1 " Charges • Our bond for duties on Sharpless & Co.'s cons' t., due Apr. 16th, with Int-. No. 2, 1,866 04 (« 24 v/ " Cash and Int., Rec'd on note No. 1, pr. 1" 25 2 contra " Sharpless & Co., Paid at sight theu- bill of exchange on us at 10 days' sight, 8. 0. Mor- ton's favor, for $3,000 6 50 1,420 00 2,993 5fl »• 29 x/ " Bills Pay. and Int., Paid note No. 1, dated 5th inst 3,636 18 it (( v/ " Do. Do. « « « 2, « 14th 1,870 70 l( 81 1 " Charges, For am't of Int credited charges in Ac't-Sales rendered this day, pr Ac't E S.-B. 5 89 i « «* 1 " Do. Paidas pr. Expense C.-B., M U ( M M it 3 2 2 2 1 this month «♦ Store Expenses, «« * « « « Interest credits this month Bills Rec. " «' Bills Pay. «' " Cash •» *' 73 345 162 30 50 12 39 1,420 00 5,487 13,378 18 M (( by Balance on hand, to New ^ 5,518 52 __ 18,896 70 • the debit or credit of the account shown by the heading; but the footing of the " Cash debit" column of the next month will be too large by the amount of the balance brought down, which sum will need to be deducted from it to obtain the amount for posting. The entries from the Expense-Cash-Book may be made at any time ; and the cash account then proved by footing up the cash columns, and minuting opposite the footings their difference, or the balance on hand, after the manner shown in Cash-Book, Form 4. Those who prefer to do so, can substitute the Cash-Book of Form 4, instead of this ; or may use a simple one column Cash-Book, and enter bills and interest in the Journal. ♦ By law of August, 1842, duties are required to be paid in cash, but these bonds with interest are introduced here to show a variety of entries. tThisjiremium is passed to the debit of -VercAaiuiMe, because the sum paid is strictly a part of the cost of goods purchased of 253 SALES-BOOK, FORM 6. Philadelphia, March 3d, 1859. 8. L. F. Consignor. 1 4 John Smith, Market Su 8 m. x/ CD. B 476 1 Case Prints, 1,000 Yds. 10 100 00 -y u B 466 and 468. 2 Bales Drillings, 900 « « 12 108 00 s/ p. K. c 111 and 112. 2 « Tickings, 900 « « 17 153 00 V (( c 113 and 114. 2 « Extra Do., 4th 850 « " 20 170 00 531 00 4 * E. Jones, Coates St. 6 m. V E.D.&O. E 210 1 Case Satinets, 600 Yds. 70 420 00 V (( E 208 1 « Do., 720 « « 65 468 00 V (( E211 1 « Cassimeres, 500 « « 1,00 500 00 V (C = 212 1 " Ribb'd Do., 500 « «' 1,25 625 00 V p. K. c 1 1 5 and 1 1 6. 2 Bales Tickings, 900 " " 15 135 00 ^/ (( c 117 and 120. 2 « Do., 800 « " IB 128 00 %/ C. D. B 467 1 « Check Cottons, 6th 600 « «« 12 72 00 2,348 00 4 A. Edwards & Co.,' Race St. 6 m. x/ E.D.&O. E 209 1 Case Satinets, 550 Yds. 70 385 00 V CD. D 532 and 533. 2 Bales Check Cottons, 900 « « 10 90 00 s/ li D 526 and 529. 2 « Drillings, 950 « " 10 95 00 v/ M. <^ 81 2 Ps. Fine Blk. Cassimeres, 80 « « 2,50 200 00 x/ (< «< 2 « Extra Fine Bl'k. Do., 80 « « 2,75 220 00 %/ « <^84 4 « Super W. D. Blk. Cloths, 92 « « 9,25 851 00 %/ u « 5 «« Fine Blue Blk. Do., Rth 120 « "7,50 900 00 2,741 00 4 John Smith, Market St. 3 m. v/ M. <^ 86 7 Ps. Assorted Brown Cloths, 175 Yds. 4,75 831 25 ^/ (C ^81 4 « Extra Blk. Cassimeres, 160 « « 2,75 440 00 ^/ (( <^82 4 «' Oxford Mill'd Do., 152 « « 2,32 352 64 >/ (( <^83 2 « Mill'd Drab Do., 10th 84 « « 2,30 193 20 1,817 09 4 B. Warner & Co., Arch St Note ® 4 m. N?' CD. B 469 and 470. 2 Cases Extra Fine Prints, 2,000 Yds.® 14 280 00 ^/ (C D 525 and 528. 2 « Ginghams, 1,800 « « 20 360 00 %/ E.D.&0. B 201 and 202. 2 « Satinets, nth 1,200 « « 65 780 00 1,420 00 4 E. Jones, Coates St. Check on Bank. M. <^ 87'" 5 Ps. Blue Cloths, 125 Yds. 5,25 656 25 (C « 2 « Extra Blue Cloths, 50 « « 6,00 300 00 (( « 2 " Light Mix'd Do., 50 « « 4,75 237 50 (( « 3 « Dark " Do., 72 « « 4,75 Am't. forward 342 00 1,535 75 10,392 84 254 SALES-BOOK, FORM 6. Philadelphia, March 12th, 1859. e. L.F Consignor. 10,392 84 4 Shepherd & Co., Chestnut St. ♦ 4 m. v/ E.D.&O. E 204 and 205. 2 Cases Cassimeres, 800 Yds. (a> 1,50 1200 00 s/ 11 K 203 1 " Do., 400 « « 1,25 500 00 k/ U. ^ 85 4 Ps. Blk. Cloths, 100 « « 6,00 600 00 V u <^ 88 8 « Victoria Do., I^th 192 « « 4,00 768 00 3,068 00 4 J. Thompson, Fourth St Cash. x/ S. & Co. n 26 6 Ps. Assorted Green Cloths, 150 Yds. 4,75 712 50 v/ li « 6 " « Brown Do., 126 « « 5,50 693 00 V a « 5 " « Blue Do., 15th 125 « « 5,25 656 25 2,061 75 5 Bonnard & Bates, Filbert St 6 m. y/ E.D.&O. E 206 1 Case Satinets, 425 Yds. 72 306 00 x/ (( E207 1 « Do. 17th 450 « « 50 225 00 531 00 5 J. Lapsley & Co., Second St V M. <^ 89 3 Ps. Superfine Inv. Green Cloths, 75 Yds. 7,50 562 50 >/ S. & Co. G 28 2 « " Olive Brown Do., 48 «< « 7,50 360 00 v/ u « 2 « « Blue Do., 48 « « 7,50 360 00 %/ u « 6 « Victoria Do.; 150 « «' 4,75 712 50 1995 00 Discount 5 ^ for cash 99 75 1,895 25 5 Smith & Williams, Broad St 6 m. v/ M. <^ 89 6 Ps. Fine Drab Cloths, 9nth 150 Yds. 3,75 562 50 4 A. Edwards & Co., Race St 6 m. v/ S. & Co. D 27 5 Ps. Black Cloths, 125 Yds. (» 0,75 843 75 u CD. « 4 « Extra Fine Blk. Cloths, '>4th 96 «« « 0,25 888 00 1,731 75 4 J. Thompson, Fourth St Note (3> 6 m. %/ D 521 and 522. 2 Bales Drillings, 950 Yds. (S» 10 95 00 >/ (C D 534 1 Case Ginghams, 925 « « 16 148 00 v/ *r\ T7" B 475 1 « Fine Prints, 1,025 « " 12 123 00 %/ P. K. c 125 1 Bale Tickings, 475 " « ir, 76 00 v^ a c 119 1 «« Do., 500 « « 15 75 00 %/ li c 124 1 « Extra Do., 450 « «' 20 90 00 607 00 4 Bonnard & Bates, Filbert St 6 m. V S. & Co. Q 28 2 Ps. Superfine Inv. Green Cloths, 48 Yds. ® 7,50 360 00 v/ (( « 3 « Victoria Do., 75 « « 4,75 356 25 x/ 11 □ 29 6 « Extra F. Blk. Cassimeres, 236 « « 2,50 590 00 s/ u 3 « Drab Mill'd Do, 118 « « 2,00 Am't forward j 236 00 1,542 25 22,392 34 255 3 SALES-BOOK, FOEM 6. Philadelphia, March 27th, 1859. S.L.F. Consignor. 4 v/ CD. n/ (( 5 s/ S. & Co. s/ C( V C( 4 %/ CD. x/ « 5 John Smith, Market St. B 472 1 Bale Check Cottons, B 474 1 " Drillings, 29th 650 Yds, 525 « 6 m. (S) 11 " 102 Smith & Williams, Broad St 4 m. □ 27 5 Ps. Blue Blk. Cloths, 125 Yds. 6,00 n 29 3 « Oxford Mill'd Cassimeres, 125 « «• 2,32 « 2 «« « Mix'd Do., 80 « " 1,90 31st B. Warner & Co., B 477 1 Case Prints, B 480 1 « Do., Arch St Note & 985 Yds. 970 « 4 m. & 102 « 12 Total month's sales, posted to Sales ^ 71 55 750 290 152 103 116 22,392 126 1,192 219 23,930 34 6i 00 83 80 In making entries in the Sales-Book, the initials of the consignors and the marks and numbers of the packages are given, as an index in transferring to the Account-Sales- Pook. Entries in this book are posted to the Sales Leger, and therefore they must in all cases be made to the debit of the individual to whom goods are sold ; and if payment be made by note or cash, it must be passed to his credit on the Cash-Book. All the debits are posted daily, or as ojften as convenient, and at the close of the month the total sales are posted to the credit of the Sales Account. From time to time, as convenient, the sales, as shown by this book, are transferred to the Account-Sales-Book, the items being checked as fast as transferred, to prevent omissions. 'ib^ ACCOUNT-SALES-BOOK, FORM 6. Sales for account of Charles Duncan, Date. 1859. Mar. To whom sold. John Smith Do. E. Jones A. Edwards & Co. Do. B.Waraer&Co.(Note) Do. J. Thompson (Note) Do. Do. John Smith Do. B. Warner &Co.(Note) Do. Time 8 m. 6 m 4 m 6 m. Mark 4 m. B D (( B D B No, 476 467 532 d33 526: 529 5554 475 472 474 477 480 Description of goods. 1 Case Prints 2 Bales DriUinofs Check Cottons Do. Do. Brillinffs 2CasesExtraFinePrinls 2 " Ginghams 2 Bales Drillings 1 Case Ginghams 1 " Fine Prints 1 Bale Check Cottons 1 " Drillings 1 Case Prints 1 " Do. Yds 1,000 900 600 900 950 2,000 1,800 950 925 1,025 650 525 985 970 Price 10 12 12 10 10 14 20 10 16 12 11 10^ 10' 12 Charges. Insurance 12,72 Freight 41,63 Drayage 2,37 Int. on $32,72 from Mar. 1st, 16 " $24,00 " " 5th, 10 Com. and Guarantee at 5 % Net proceeds, due Sept. 6-9 E. E. Philadelphia, March 31s/, 1859. Am't. lOO'OO 10800 90 00 ^00 280,00 36000 9500 14800 123 00 7150 5513 10343 11640 56 90 72 26 Total. 208 00 7200 185 00 640 366 126 219 1,817 00 00 63 83 46 147 1,669 85 61 J. DtJNLAP & Co. Sales for account of Peter Kelly. Date 1859. Mar. To whom sold. John Smith Do. E. Jones Do. J. Thompson (Note) Do. Do. Time 8 m 6 m Mark c No, 125 119 124 Description of goods. 2 Bales Tickings Extra Do. Do. Do. Do. Do. Do. Yds. 900 850 900 800 475 500 450 Price 17 20 15 16 16 15 20 Cliarges. Freight 9,08 Drayage 1,50 E^E. Philadelphia, March 31.y/, 1 859 2ll Int. on $10,58 from Mar. 1st 05 Our Com. at 2^ ^ .... 20 68 Net proceeds, due Oct. 10-13 J. DtTNLAP & Co Am't. 153 00 170 00 135 00 128 00 76 00 75 00 90 00 1058 Total. 323 00 263^00 241 00 827i00 3131 705 69 2 ACCOUNT-SALES-BOOK, FORM 6. Sales for account of E. Dickson and Ourselves, (Co. R.J Date. 18S9, Mar To whom sold. E. Jones Do. Do. Do. A. Edwards & Co B.Warner&Co.(Note) Shepherd & Co. Do. Bonnard & Bates Do. Time 6 m. 4 m 6 m, Mark E No. 210 208 211 212 209 203 206 207 Descriptioa of goods. 1 Case Satinets Do. Cassimeres Ribb'd Do. Satinets Do. Cassimeres Do. Satinets Do. Yds. 600 720 500 500 550 1,200 800 400 425 450 Price 70 65 1,00 1,25 70 65 1,50 1,25 72 50 Charges. Ins. $22,14, Fr't. $22,04, Dray. $1,00 Int. on $45,18 from Mar. 3d Com. and Guarantee at 5 ^ Net proceeds, due Aug. 19-22 E.D's ^$2,546,58,Our ^$2,546,58 Am't. 42000 468 500 625 1200 500 306 225 45 270 Total. 2,013 385 780 1,700 531 5,409 315 5,093 00 00 00 00 00 00 84 16 E. E. Philadelphia, March Slst, 1859. J. DuNLAP & Co. Sales for account of Merchandise. Date. To whom sold. Time Mark No, 81 84 86 81 82 83 87 (( (( (( 85 88 89 89 Description of goods. Yds. Price Am't. Total. 1859. Mar .1 6 n " 8 n •( 11 « 12 17 19 A. Edwards & Co. Do. Do. Do. John Smith Do. Do. Do. E. Jones (Check) Do. Do. Do. Shepherd & Co. Do. J. Lapsley & Co. Smith & Williams 6 m. (( (( (( 3 m. (( (( (( 4 m. « 6 m. « «( (( i( (( <( t( (( 2Ps. Fine Blk. Cass. 2"Ex. F. Blk. Do. 4" Su.W.D. Blk. Cloths 5 " FineBlueBlk.Do. 7 " As'd. BroAvn Do. 4 " Extra Blk. Cass. 4 " Oxford Mill'd Do. 2"MiU'dDrab Do. 5 " Blue Cloths 2 " Extra Blue Do. 2 " Light Mix'd Do. 3 « Dark Do. Do. 4 " Black Do. 8 " Victoria Do. 3 " Su.Inv.GreenDo. Dis. 5 ^ for cash 6 Ps.FineDrab Cloths 80 80 92 120 175 160 152 84 125 50 50 72 100 192 75 150 2,50 2,75 9,25 7,50 4,75 2,75 2,32 2,30 5,25 6,00 4,75 4,75 6,00 4,00 7,50 3,75 200 220 851 900 00 00 00 00 2,171 1,817 1,535 1,368 534 562 00 4< 831 440 352 193 25 00 64 20 09 656 300 237 342 25 00 50 00 75 *• 600 768 00 00 00 ft 562 28 50 12 38 . r^ lO 1 (>( T}* 1-H c s (N -* 1 f- tH CO t^ lO (N o CO ) £•« o o o •e (3 -*-> -(-> ■*J 2| I— 1 t— t I-H rH 1—1 1-H 00 s M Q o W <^ a <*- ta O CO O lO CO C<> o:?i C<< i-H I-H T-i C5 "^ ^;pu ' — s ^•rt HI >^ , o B O O V 11 P CO 0) P,Ph CO 1-:; ■S -5 ■s tJ ■5 ^ c w «•'-' "^ I-H CO lO Tf 2 > g . ^ I-* 00 fc4 « ^ S S § 0) "TS 0) 4) (—4 Oh^ c c > s B ° S S c S N O CO O -^ If •p^pq ^PQ =^^ .^^ re I--1 2t-J » &H o ho o ^a bfio ^ a ^ a Oi H a CO pq pq pq CO •^ M 1-5 „ 1/3 .a o » o -^ a c ;:3 =3 ~ O (V "^ o O Zj S yj ^ rt bo OJ a ^ G ** O « o <^ «J "rt a ij a bo cj - §-« bbgi ^^ re c #81. Merchandise on hand March 31st, 1859. 1 6 Ps. Fine Blk. Cassimeres 240 Yds. @ $1,24 297 60 " #82. 3 < ' Oxford Mill'd Do. . 114 " " 1,24 141 36 7 ' * « Mix'd Do. 266 " " 1,00 266 00 « #83. 1 ' ' Drab Mill'd Do. 42 " " 1,22 51 24 3 ' ' Fine Blue Do. 126 « " 1,22 153 72 3 ' ' " " Mill'd Do. 126 " " 1,22 153 72 5 ' ' Assorted Col'd Do. 212 « " 1,11 235 32 « #84. 2 < ' Super W. D. Blk. Cloths 46 " " 5,00 230 00 2 < ' Fine Blue Blk. Do. 48 " " 4,00 192 00 « #85. 4 ' ' Black Do. 100 " " 3,00 300 00 7 ' ' Assorted Green Do. 175 " " 3,00 525 00 « #86. 7 ' ' " Brown Do. 175 " " 3,00 525 00 " #87. 2 ' < Light Mix'd Do. 50 " " 2,50 125 00 2 ' ' Dark " Do. 48 « « 2,50 120 00 •' #88. 2 ' ' Victoria Do. 48 " " 2,00 96 00 5 ' ' " Do. 120 " « 2,78 333 60 " #89. 5 ' ' Superfine Drab Do. 120 " " 3,00 360 00 4,105 56 Add 50 ^ for Freight, Charges, Duties and Exchange 2,052 78 $6,158'34 263 INYOICE-BOOK, FORM 6. Invoice of Cloths and Cassimeres, shipped per Saranak, Turley, bound to Philadelphia, on ac't and risk of James Dunlap Sf Co., Merchants there, and to them consigned, pursuant to their order. ! £ S. i (]. <^ #81. 6 Ps. Extra Fine Blk, Cassimeres 240 Yds. @ 65 9d. 81 8 " Fine Blk. Do. 320 " '' 5 7 89 6 8 " #82. 7 " Oxford Mill'd Do. 266 " '' 5 7 74 5 2 7 « " Mix'd Do. 266 " " 4 6 59 17 " #83. 3 « Mill'd Drab Do. 126 " " 5 6 34 13 3 « Fine Blue Do. 126 " " 5 6 34 13 3 " " " Mill'd Do. 126 " " 5 6 34 13 5 " Assorted Col'd Do. 212 " " 5 53 " #84. 6 " Super W. D. Blk. Cloths 138 « =' 22 6 155 5 7 « Fine Blue Blk. Do. 168 " ' 18 151 4 " #85. 8 « Black Do. 200 " ' 13 6 135 7 " Assorted Green Do. 175 " ' 13 6 118 2 6 « #86. 7 " « Brown Do. 175 " " 13 6 118 2 6 7 « « « Do. 175 " ' 11 3 98 8 9 « #87. 5 « Blue Do. 125 " < ' 12 6 78 2 6 2 « Extra Blue Do. 50 " ' 14 8 36 13 4 4 « Light Mix'd Do. 100 « ' ' 11 3 56 5 5 " Dark " Do. 120 " < ' 11 3 67 10 " #88. 10" Victoria Do. 240 " < ' 9 108 5 " " Do. 120 " < ' 12 6 75 " #89. 3 " Superfine Inv. Green Do. 75 " ' ' 18 67 10 6 " Drab Do. 150 " « ' 8 4 62 10 5 " Superfine Drab Do. 120 " « ' 13 6 81 1,870 ~1 "5 9 Packing Boxes and Drayage 2 10 Xl,872 11 ~5 Liverpool, Feb. 12th, 1859 (Signed) Lovering & Bache. Note. — The Inventory on the preceding page is that portion of the above Invoice that remains unsold, room the other Invoices are omitted. To save FORM OF A CONTINUED TRIAL BALANCE. On the opposite page is given a form for a Continued Trial Balance of the Leger, in which the differences only of the accounts are entered. It will be found of great service in enabling the heads of an establishment to see at a glance the standing of the account of any mdividual, or of any species of property, and to compare it with the former position of that account. This sheet may be made out monthly, or once in two or three months, at discretion, and it would be well to have a book ruled for the specific purpose. 264 cr (M N c» i^ cc c -^ Qq_ O CD O C= (M I ^ I J:: n /a m 05 t^ O 00 T* 00 .to in IN ' tf> * ■» CD • oi • to Ol cf • -<" ' Too" O CO O C5 n c* ct 05 t» CO ffl Tj" TO o i« jo_e*_ eo_ o O CO . CO i« c< « . . s* 5 o • N ■ • to • •<* CO n eo M « — t^ (^» c* m 00 • t- ■ • o • CO a> • • • • 9t N 5< >0 l~ CO ■^ o cT • -* • • w • ?o e« • • • • • • o _w , © .to lO _ in . , C5 in — 05 in « c* «e; eo e* 1^ • c* • CO r- CO C5 N m eo m o o o CO e* N p» eo o lO ' e* • T- C* • CO • • m i~ CO • OD l^ « c» 00 — N •* la •»* PS C5 O a> o 5 • •«* CO • • • « N • « — ^ o t^ T)< . CO 00 e* «> . . eo « o '00 m 'CO • -< CO * o • a> 00 CO e* — • t^ e< c* o OO 'CO • <^ • C5 • 00 31 • • • 00 • • eo e* o> eo in — CO eo ■* >. OJ • • •* • C< • CO c» • • • • • eo 3 c* CO m o CO in in — o m eo b .CO • e* • o * t- CO t^ CO • O Oi cs T*" e« in m W N 0» 00 eo o • W • — • C< * 00 • • M t^ CO • T* t~ eo CO e« — — eo ■>* « eo © •^ a • 0* • CO • eo • • • Tf ft • c» c« eo O CO . ■* CO in CO CD eo o ^^ ' lO CO • e< N o OS 00 t~ 6* ,^ t^ in e< eo 00 • 00 • w • C5 • CO OS oc • • • eo c* t^ eo in CO t^ PS 00 o> • >* • N • mM ... es 00 l^ " t^ _ I 'it; • o "CO in -H 00 Ti< s in o ' iC t» lO "e^ p» •^ ' CO f» m — TT t~; • o 2 rt a -^ O TS bcJiU75CrSv:^iuaj.^-S ^5 c 2 So cs b,—"Ti'inMineococot-c3sr^ooo— ' 21 265 FORM OF A RECEIVING AND FORWARDING BOOK. Nashville^ Tenn., 1859. How Received. Date Rec'd. For whose ac't. No. of Pll'gS. Weight, Rate. Freight. Storage. Drayage. Total. Leger Folio. Talleyrand fr. N. Orleans Apr. 15. Jas. Swanson, Williamson Co. 10 5000 Char 50 gas. 25 25 7 10 00 00 50 00 5 3 00 00 1 25 75 56 21 25 25 300 600 Cumberland fr. Smithland Apr. 22. Saml. Walker, Columbia,Tenn. 11 3000 Char 25 ges. When the receiving and forwarding operations of a house are confined to regular cus- tomers, with whom the house has running accounts, it will be found convenient to post directly from this book to the Leger — the amounts extended in the total column being posted to the debit of the individuals for whose ac't received, and the footings of the Freight, Storage and Drayage columns being posted monthly to the credit of their re- spective accounts. The footing of the Freight column, taken to the credit of that account, should equal the amount previously debited the same account for freight and charges paid on goods when received. When a cash business is done, this book will be used only as a register of particulars in relation to goods received, and no posts will be made from it. The postings will come through the medium of the Cash-Book. FORM OF A RECEIVING BOOK. Philadelphia, May 2nd, 1859. Shippers. Maries. Consignees. Articles. Weight 3175 1145 925 Rate. Charges. Am't. Hoffman & Co. A.Swain & Co. P. Camden Pittsburg Park & Selden Cincinnati 8 Boxes Dry Goods ^50 60 61 6^ 66 67 68 70 2 Crates Crockery #il^-|^ 2 Boxes Hardware ^^^^^ 1,25 8V 87" 1 38 75 50 41 10 8 07 77 59 FORM OF A FORWARDING BOOK. Philadelphia, May M, 1859. Mark. Consignees. P. Camden Park & Selden Weight 8 Boxes 300+600+400+ 5004-450+350+250+325= 2 Crates 520 + 625 2 Boxes 450 +475 John Morris, Conductor, Cars No. 200, 520, 315, 626, 3175 1145 925 The last two Forms are for houses which have regular transportation lines owned in connection with them. In the Receiving-Book are mentioned all the particulars concerning goods received ; and when goods are forwarded the weights and marks are taken down in the Forwarding- Book, also the numbers of the cars in which sent, and the name of the conductor who takes charge of them. Then, by comparison with the Receiving-Book, it can be seen whether the weights, &c., agree, and whether the goods of any consignee are all sent. Note. — The examples given suppose the transportation line to be cars, but if it were boats, the Forms woulJ answer equally well. 266 ROUND HILLS MINING CO. PRACTICAL FORM, NO. 7. JOINT STOCK COMPANY BUSINESS. 207 EXPLANATORY REMARKS, FORM 7. The commencement of such a business consists in opening a Subscription-Book for the Stock or Capital of the Company ; in which the different members, or persons pro- posing to establish the business, enter their names, with the number of shares of the Stock or Capital which they will take, at a given price, previously fixed. As it is desirable to make these forms as concise as possible, I will not occupy space by showing all the books required, but will merely mention them, and describe particularly only such as differ materially from those described in the previous portions of this work. The main books of original entry needed for this business are Day-Book, Cash-Book, Bill-Book, Stock-Book, Transfer Stock-Book. I have only given portions of these, sufficient to show the manner of opening, and the style of entry required. In addition to the above-mentioned, there will be needed several minor auxiliary books, (similar to those described in connection with Set VI., p. 182, and in other parts of this work ;) and tivo Legers, — a Stock Leger and a Main Leger, used in conjunction, similarly to those of Form 6, described on p. 261. DIRECTIONS FOR WRITING UP. The most convenient arrangement for this form of Accounts is to open the books, as if for an individual business, similar to the plan described in the first three Sets in this Book. Under this arrangement, you will make the opening entry in the Day-Book, debiting Stock Account for the value of all the shares of Stock issued, or subscribed for, and crediting each person for the value of the number of shares taken by him, as shown by the Subscription-Book mentioned above. (See first entry in D. B., p. 277.) Next make out the first Instalment List, (see p. 271,) in which enter the names of Subscribers to the capital, with the number of shares each one owns, and the amount due at the date of the first instalment; then, as each pays, mark "paid" opposite his name. When all the first instalments are collected, enter the total amount in the Cash- Book, (see p. 272,) to the credit of Stock Account; and proceed in the same way at the date when each successive instalment falls due. Place in the Stock Leger only Stock Account and the accounts of the Stockholders : and then, as will be readily seen by tracing out the entries in the Stock Leger given on p. 278, when all the instalments are paid, the Stock Account will balance, while the accounts of the Stockholders retain credits, each for the amount of Stock owned by him. The Main Leger will contain all the miscellaneous accounts, and be managed precisely as for an ordinary individual business. When it is desired to take a Trial Balance of the Books, both Legers must be used, as described in Form 6. 268 DIRECTIONS {continued). The gains of the Company are found, after closing the proper accounts into Profit and Loss, in the same way as in individual business. The balance of this account is then to be divided by the number of shares of stock issued, and either passed to the credit of the Stockholders, thus increasing their interest in the concern, (for which additional certificates, called ^^ scrip,"* are usually issued,) or it may be declared as a dividend, and paid off at once to the Stockholders, according to the discretion of the Managers of the Company. In the latter case, open a Dividend Account in the Main Leger, to the credit of which pass the gross am't of the dividend, and then debit this account in the Cash- Book whenever it is paid. It will also be necessary to make out a Dividend List, similar to the Instalment Lists, leaving, however, sufficient margin for the signatures of each person who receives his dividend. STOCK BOOK. This is a book of blank printed certificates, which are filled up, as occasion may require, with full particulars of name, number of shares, date, &c., and signed by both President and Secretary. In the left-hand margin, opposite the certificate, is placed a full description of the same, and still farther to the left, on the opposite page, is a blank receipt, which is to be filled up, and signed by the person obtaining the certificate. (See pages 274 and 275.) When it is desired to transfer any shares of Stock from one party to another, the usual manner of procedure is, to recall the original certificate, and issue another to the purchaser. Or if only a portion of the shares of stock included in the first certificate is transferred, two certificates are issued, one for the party purchasing stock, and the other to the original holder for the remainder not transferred. These last are called Balance Qertificates. It will be seen, by referring to the specimens given, that on the space representing the back of the certificates are introduced two forms of blank ^^ powers of attorney" to transfer the stock. The first one shovrs the legal form for a separate power of attorney ; while the second shows a more concise form, which is often printed at the bottom of each certificate, for convenient use in transferring stock by the hands of an attorney. DAY-BOOK. The Day-Book occupies a prominent place in this form of accounts, as in it are entered all stock transactions, whether in first commencing, or in after-transfers. It is also used for such general entries as cannot, in the regular course of business, be placed in either of the other books of original entry. In entering transfers of stock, the party disposing of shares is to be debited, and the purchaser credited, thus showing, in the account of the latter, the amount due him. * The difference between " Scrip" and Certificatet of Stock is, that the former pays no dividend, but i? merely an obligation of the Company to the Stockholders, payable at a set time. 269 TRANSFER STOCK-BOOK. This is a book of printed blanks, to be filled up by the Secretary, and signed by the person who desires to transfer stock from his own name to that of another, (see page 276.) From this book the entry is made in the Day-Book, noting in the entry the number of the transfer, and also the number of the certificate issued therefor, to afibrd convenient reference. In the margin, opposite each transfer, note the folio of the Day- Book to which it is taken, (see page 277, entries of April 9th, and 23d, and May 20th.) Those who prefer so to do may post directly from this book, instead of entering in the Day-Book, by placing in the margin the names of the debtors and creditors, with the amounts belonging to each. 270 INSTALMENT LIST NO. 1, FORM NO. 7. Due April Ist, 1859, bQ% payable on each share, par value $500. James Brown ------ paid 8 shares 2,000 00 T. R. Glentworth paid 12 ' 3,000 00 Myron B. Jenkins paid 6 ' 1,500 00 Simon Timmins ------ paid 8 ' 2,000 00 R. H. Hall paid 10 ' ' 2,500 00 Amos Kendall paid 4 ' 1,000 00 Stephen B. Moss paid 4 ' ' 1,000 00 J. R. Townsend ...... paid 4 ' 1,000 00 A.' H. Hart paid 10 ' ' 2,500 00 0. M. White paid 8 ' 2,000 00 Chas. Fowler ------ paid 12 ' 3,000 00 John T. Green ------ paid 4 ' ' 1,000 00 Robert Jones Entered in C. B. fol. 1. paid 10 ' <• 2,500 00 100 shares ||25,000 00 INSTALMENT LIST NO. 2. Due May Ist, 1859, 25^ payable on each share. James Brown - T. R. Glentworth Myron B. Jenkins Simon Timmins R. H. Hall Amos Kendall Stephen B. Moss Peter D. Ring A. H. Hart - 0. M. White Charles Fowler Enoch Evans John T. Green - Robert Jones Entered in C. B. fol. 1. paid paid paid paid paid paid paid paid paid paid paid paid paid paid 8 shares 12 6 8 10 4 4 4 10 8 6 6 4 10 100 shares 1,000 1,500 750 1,000 1,250 500 500 500 1,250 1,000 750 750 500 1,250 00 00 00 00 00 00 00 00 00 00 00 00 00 00 i2,5oo;oo 271 Dr: CASH-BOOK, FORM 7. Cash. Date. 1859. April May June L. F. 1 1 12 19 1 To Stock, Amount of instalments due and paid this day, as per Instalment List No. 1. " Stock, Amount of 2d collection of in- stalments due this day, per List No. 2. " S. R. Haines, Rec'd in payment for supplies furnished for men " Bonds & Mortgages Receivable, M. Harvey's note of 20th ult., collected at Bank of Ky. " Stock, Amount received on List No. 3, being the final instalment of Capital Int. Cr. Bills Rec.Cr. Cash Dr. 25,000 12,500 900 10,055 12,500 00 00 00 00 00 Instalment Lists. These Lists are prepared from the Subscription Book, and consist simply of a list of the names of the subscribers, the number of shares taken by each, and the amounts of the instalments due from each. (See page 271.) In this set of books I have supposed the capital of the company to be composed of one hundred shares, at $500 per share ; the instalments to be three in number, payable monthly, — one-half at the first, and one-quarter at each of the other payments. Only two of the lists are given, though the entries are made in the Cash-Book for all of the payments. By examining "List No. 2," it will be seen that the names are not all the same as in "No. 1." This is owing to some transfers having taken place, which are described under the Day-Book and the Transfcr-Stock-Book. 272 t^'^JSn CASH-BOOK, FORM Cash. •I Date. 1859. I April 10 20 20 3 15 30 1 May June L. F. 17 19 8 23 12 3 By M. L. Roth, Paid him oa % of grading as per Order No. 1, dated 9th inst. A. M. Baldwin, Paid Bill for Stationary Engine as per Order No. 3 of date. Bonds & Mortgages Receivable, Loaned M. Harvey on his note @ 30 days, secured by Mortgage on his Farm in Brown Co., per Order No. 5. M. L. Roth, On %, per Order No. 2 of 30th ult. Q. R. Norris, Paid in part for Cars, ac- cording to contract, per Order No. 4 of lOtb inst. S. R. Haines, Paid him in full of con- tract for laying track and building engine- house, Order No. 6, dated 28th inst. Expenses, Paid Bill of A. Schunck for Office furniture, chairs, &c., Order No. 8. Int. Dr. BillsPay.Dr.l Cash Cr. 500 3,000 00 00 10,000100 750 00 2,500 3,250 372 00 00 90 Cash-Booh. This book has been arranged in a shape similar to the one shown in Form 4, as that is believed to be far preferable for common use in such a business, since it saves much labor in posting to accounts which almost invariably would require numerous posts in any other form. There are no entries given in this Set which affect either of the extra columns, but their use will be sufficiently understood by referring carefully to the explanation given on page 244. It will be seen that all payments are made on presentation of orders from the Board •if Managers, signed by the Secretary, which are filed and numbered. 2K 273 STOCK-BOOK, FORM 7. ml \t l^fl ^^.. ^^ u,7ui6ivocavty- cotMUlicte and ahhotni- lo ve Imi6 and uiuf/cci aMowzcu, foif — jznd en— name, and <>^enaM, io aelt, a7i or ^ieMonMUtUiUct6 $n SSaitne^s SSaijerrof _ ^^. 4eu,untc ,ei fiand and aeat ini<) diu o/.. , 4^ Vi-WiiAb. WfcjtjyJt. ^T-^^j jiFor bahie receibeti,. -4eu to. oi^ me toiaun, ■menko'ned d^ocn, and Heieou condiilule at{o^r^e'u ic itana-ier i/ie ttwrnc en tne mo/id 0/ Inc '^omhanu. }T). jinaiM of tne ^aAtta* c/ toc/i of tne atandinn at tne hte4€7it titne in nrwu name en tne i'OOK^ o/ tne ^ omhanij. Jyitne^M flfvwi iHmiatute, \. d\. cyooAwiiijc/vvd. ' i ^. ^ ^. ^D. 276 DAY-BOOK, FORM 7. Union, Redioood Co. Ky., April \st, 1859. Stock To Sundries, For valuo of Certificates of one hundred shares Stock issued. Par value §500. To James Brown, " T. R. Glentworth, *' Myron B. Jenkins, " Simon Timmins, '' Ft. H. Hall, " Amos Kendall, " Stephen B. Moss, " J. R. Townsend, " A. H. Hart, " 0. 31. White, " Chas. Fowler, " John L. Green, " Robert Jones, Cer. No. 1, for 8 shares ' 3 ' '12 " . 4 . ' 6 " ' 5 ' « 8 " ' 2 • '10 " '8 « ' 4 " ' 9 « ' 4 " «10 ' < 4 .< ' 6 ' '10 " '11 ' . 8 " . 7 . '12 " '12 ' ' 4 " '13 « '10 " Chas. Fowler - 9th To Enoch Evans, Transfer of 6 shares Stock per T. S. B., fol. 1, No. 1, and Stock Book, Nos. 14 and 15. ■20th- Bonds & Mortease Receivable To Interest, On M. Harvey's note @ 30 days pr. B. B. taken this day for loan of §10,000, am't of note $10,055. 23d J. R. Townsend To Peter D. Ring, Transfer of 4 shares Stock, per T. S. B., fol. 1, No. 2, and St'k B'k, No. 16. May 18th Construction ^ To S. R. Haines, For job of laying track and building engine-house, com- pleted as per contract, and accepted this day by the "Com- mittee of Construction." ■20th- Sundries To Amos Kendall, Robert Jones, Transfer of 3 sh's.— St'k B., No. 18 0. M. White, " " 6 " " "19 S. B. Moss, " " 4 " " " 20 See Trans. S. B., fol. 2, N. 3, St'k B., No. 17. 4,000 6,000 3,000 4,000 5,000 2,000 2,000 2,000 5,000 4,000 6,000 2,000 5,000 00 00 00 00 00 00 00 00 00 00 00 00 00 50,000 3,000 55 2,000 3,250 00 00 00 00 00 1,500 2,500 2,000 00 00 00 6,000 00 277 Dr. Stock. Cr. Date. Balancing Entry. Folio. Amount. Date. Balancing Entry. Folio. Amount 1859. April 1 To Sundries D. B. 1 50,0C0 50,i00 00 1850. April uay •Juue 1 1 1 By Cash C B. " Do. " " Do. " 1 1 1 25,000 12,500 12,500 00 00 00 5U,U00 JO 1 Dr. James Brown. Cr. Balancing Entry. D. B. Folio. No. of Cer. No. of Transf. Date. 1859. April Balancing Entry. By Stock D. B. Folio. No. of Cer. No. of! I Transf., ! 4,000 00 Dr. T. B. Glentworth. Cr. 1859. April By Stock 6,000 00 Dr. Myron B. Jenkins. Cr. 1859. April By Stock 3,000 00 Dr. Simon Timmins. Cr. 1859. April By Stock 4,000 00 278 Dr. E. K Hall. Cr. Sate. Balancing Entry. D. B. Folio. No. of Cer. No. of Transt Amount. rat3 Biilancing Entry. D.B. Folio. 1 No. of Cer. No. of Transf. Amount. 1809. April 1 By Stock 2 5,000 00 Dr. Amos Kendall. Cr. 1859. April May By Stock " Sundries 8 17 2,000 00 6,000 00 Dr. Stephen B. Moss. Cr. 1859. May 20 ToA.Kendall 20 2,000 00 1859. April By Stock 2,000 00 Dr. J. R. Townsend. Cr. 1859. April 23 To P. D. Ring 10 2,000 00 1859. April By Stock 10 2,000 00 Dr. A. H. Hart. Cr. 1859. April By Stock 5,000 00 279 Dr. O.M, White. Cr. Date. Balancing Entry. D. B. Folio. No. of Cer. No. of Trausf. Amount. Date Balancing Entry. D. B. foUo. 1 No. of Cer. No. of Transf. Amount. 1859. May 20 ToA.Kendall 1 19 3 2,500 00 1859. April 1 By Stock 11 4,000 00 Dr. Charles Fowler. Cr. 1859. April To E. Evans 14 3,000 00 1859. April By Stock 6,000 00 Dr. John L. Green. Cr. « 1859. April 1 By Stock 12 2,000 00 Dr. Robert Jones. Cr. 1859. May 20 ToA.Kendall 18 1,500 00 1859. April By Stock 13 5,000 00 Dr. Enoch Evans. Cr. 1859. April ByC.FowIer 15 3,000 00 Dr, Peter D. Ring. Cr. 1859. April 23 By J. E. Townsend 16 2,000 00 280 PRACTICAL FORM, NO. 8. JOINT-STOCK BANKING BUSINESS. 2L 281 EXPLANATORY REMARKS, FORM 8. The formation of a Banking Company is similar in all respects to that of a Joint Stock Company for the prosecution of any other business. The principal transactions from which the profits are derived are discounting notes, and buying and selling bills of exchange on Banks in other places. The opening of the books for this kind of business should be similar to the method explained in Form 7. There will, however, be needed some additional books, besides those mentioned in that form. The principal of these would be. Receiving Teller's Book, Paying Teller's Book, Note Clerk's Books, Discount Clerk's Books, Foreign Note Clerk's Books, and Deposit Legers ; each of which will be described hereafter in connection with the explanation of the duties of the several Clerks. The business of a Bank is entirely under the control of a Board of Directors, elected at stated periods from among the stockholders. The principal officers are the President, and the Cashier, who fills the position of Secretary at the meetings of the Board and has a general oversight of the employees of the Bank. THE FIRST, OR PAYING TELLER. The duties of the First Teller are to pay all Checks drawn by depositors, on pre- sentation at the counter of the Bank ; to keep a correct account of the amounts so paid, and to render the same, from time to time, to the Clerks who keep the Deposit Legers. When checks are presented, the Teller, after ascertaining that they are genuine, and that the account is not overdrawn, pays them and sticks them on a file ; from which, at intervals, an assistant removes them and enters them properly in the Paying Teller's Book. The book used for this purpose is ruled with several columns, according to the number of Deposit Legers kept. Each column is headed with the initials of the Leger to which the amounts contained therein are to be transferred. These amounts are again, from time to time, — generally every hour, — taken ofi" by an assistant, on slips of paper, and handed to the different Leger Clerks, who enter them to the debit of the respective drawers' accounts. Then, at the close of the day's business, the footings of each of the different columns of this book must agree with the total of the posts for the day, in the corresponding Deposit Leger. 282 THE SECOND, OR RECEIVING TELLER. The Second Teller's duties are to receive all deposits of money, and keep an account of the same ; rendering statements to the Deposit-Leger Clerks, from time to time. He enters all deposits promiscuously in his book, at the time of deposit, entering the same in the Bank-Books of depositors, which are presented with the sum to be deposited. Then, at intervals, an assistant takes off from this book, into small books, the amounts to be credited to different depositors, and hands them to the Deposit-Leger Clerks. At the close of the day's business, if correct, the total footing of this book will agree with the sum of the credit posts to all the Deposit Legers. DEPOSIT-LEGER CLERKS. The number of these Clerks varies with the amount of business done by the Bank. It is their duty to keep the accounts of persons depositing funds with the Bank, and checking out the same. When there are several such Clerks, the accounts are dis- tributed to them in divisions, according to the alphabetical order of the initials. Each clerk has a Leger, and a "Scratcher" or Blotter, in the latter of which is first entered the amounts rendered from each of the Tellers' books, as well as accounts handed in by any other Clerks, which may affect the account of depositors. These items are then posted into the Leger. Each Deposit-Leger Clerk, at the close of the day, takes off from his Scratcher a Summary, in the form of the following specimen. Dr. SUMMARY OF DEPOSIT LEGER. Cr. Paying Teller's % [Checks] Rec'g Teller's " [Checks deposited] Note Clerk's •* [Checks paid in] Balance carried forward, 0.000 00 00 0.000 00 00 00 00 Bal. bro't down from 10th inst. Rec'g Teller's % [deposits] Note Clerk [Notes collected] Foreign Note Clerk [Drafts collected] Discount Clerk [Notes discounted] OOOOO 1 ooo o o I OOOOO OOOOO o o o d d 00.000 00 00.000 00 Balance bro't down from 11th inst. O.OOOiOO If the Balance thus obtained exactly agrees with the difference between the total amount of all the debit and credit posts for the day as shown by the Leger, this agree- ment constitutes a proof of the correctness of the day's records. It will be observed that the accounts of the Receiving Teller and Note Clerk appear on both sides of this summary. This is owing to the fact that often checks of deposi- tors are included in deposits made by others, or are received by the Note Clerk in pay- ment for notes, instead of being first drawn, and then the money deposited or paid for the note. The items enclosed in brackets are merely explanatory, and are not inserted in actual practice. THE GENERAL BOOK-KEEPER. This person each day receives statements from the Paying Teller, Receiving Teller, Note, Foreign Note, Discount, and Draft Clerks, and enters the same on his Books. He debits ^^ Deposits" account with the amount of the Paying Teller's statement, and credits the same account with the amounts shown on the statements of the Receiving Teller, Note Clerk, Discount Clerk, &c., making the suitable counter-entries in Bills Receivable, Discount, Cash, &c., as the case may be. 283 THE GENERAL BOOK-KEEPER {contmued). Each morning he compares the amounts on the ^^ summary'' with the accounts rendered him by the various clerks, to ascertain if they agree. When a Draft is received from a Bank in another place, it is treated in the same manner as the check of a depositor, except that it is handed directly to the General Book-keeper, who keeps all accounts with other Banks, debiting them for the amounts of their Drafts paid by the Bank, and crediting them with the amounts of Drafts on them issued by the Bank. DISCOUNT CLERK. The business of the Discount Clerk is to receive, and enter, all notes offered for dis- counting at the Bank. Notes to be discounted are endorsed by the applicant, and enclosed in an envelope, and dropped in a box attached to the Discount Clerk's Desk. He enters them in a book called an Offering-Book, ruled with columns for full particulars of names of drawer and endorser, date, time to run, amount, &c. This book is then laid before the Board of Directors, who pass upon each note separately, and, as action is taken upon them, they are marked in the margin "A" or "D," according as they are accepted or declined. Upon the return of the Offering-Book, the Discount Clerk enters in the Discount-Book those which are accepted, while the declined are returned to the owners. The Discount-Book is arranged with columns in which are placed full details of the notes discounted, together with the amount of discount on each, and the balance payable to the owner of the note. From the Discount-Book the notes are entered by the General Book-keeper on his Day-Book, debiting Bills Receivable for the whole amount of notes discounted, and crediting Discount with the amount of Interest taken off, and "Deposits" account with the balance. The Offering-Book is sometimes ruled with additional columns, for the extension of the items mentioned above as belonging in the Discount-Book, thus combining the two books, and saving the labor of re-writing the names, &c. The Discount Clerk renders to the Deposit-Leger Clerks the amounts to be credited each individual for whom a note is discounted. Another book is very generally used in banks doing a large business, called a "Tickler," one page of which is devoted to the discounted notes falling due on each day. Into this the Discount Clerk transfers the names of the drawers of notes which have been discounted, and the amounts of the same ; and the book then serves as a guide to the Board in determining what additional notes may be discounted. NOTE CLERK. It is the duty of the Note Clerk to receive, and enter, all notes left with the Bank for collection, making, at the time of reception, an entry in the Bank-book of the depositor, inside of the money column, as explained on page 170 of this work. He also receives 284 NOTE CLERK, {continued.) the money paid for notes falling due, and returns the notes. His book of original entry is a Bill-Book on an extended scale, having a separate page devoted to the notes falling due on each particular day. When any notes are paid, he reports them to the proper Deposit-Leger Clerk, who credits the depositor of the note with the amount received. If any portion of the sums received for notes should be in the form of Checks on the Bank, these are also reported, and debited to the drawers' accounts. It may not be improper, in this connection, to give a brief explanation in regard to the process pursued in reference to collecting notes by the Bank. When a note left for collection is within about two weeks of maturity, it is customary for the Bank to send to the drawer a notice, stating the date on which the note falls due, and the amount. Then, if on the day of maturity the drawer pays the note before the termination of Bank-hours, (usually three o'clock p.m.) it is passed to the credit of the owner, as above explained ; but if he fails in this, a process is immediately issued by a Notary Public employed by the Bank, which is called a "Protest," stating that the drawer of said note has been duly notified of the maturity of the same, and has failed to pay it. Then, if the note was discounted, the person in whose favor it was discounted is liable for the amount of the note. If it was not discounted, it is returned to the depositor on payment of Notary's fee. The specific design of this Treatise does not allow of an elaborate explanation of the liabilities of endorsers of notes; but it is presumed that any person who intends to become connected with a banking institution will acquaint himself with the laws per- taining to mercantile paper, as they are of great importance. FOREIGN NOTE CLERK. All notes or drafts, on persons or corporations in another State, are considered, by decision of Court as foreign bills, and come under this head in the arrangements of the Bank. The duty of this Clerk is to enter, in a book similar to the Note-Clerk's Book, full details of all notes, or drafts, on persons or Corporations in other States, left with the Bank for collection, together with the address of the Bank, or person to whom they are remitted, to be collected; and to render an account, to the proper clerks of the returns, for entry in the respective personal accounts affected by the same. DRAFT CLERK. This Clerk's duties are merely to fill up drafts at the direction of the Cashier, attend to correspondence, &c. The Cashier enters, in a book, all the drafts on other Banks as they are presented to him for signing, and renders the account to the General Book-keeper at the close of the day's business. 285 QUESTIONS ON PRACTICAL FORM, NO. 1. What kind of business is this form of books intended for ? What books are required for this form? With what is the left-hand page of the Day-Book occupied ? How many columns has the right-hand page? What are they for? What is entered in the Cash Dr. column ? What in the Cr. ? What is entered in the Shop Dr. column ? What in the Cr. ? What accounts are entered in the columns headed Sundries ? How many pages of the blank-book used constitute one folio in the D. B. ? Is a separate Cash-Book required? How do you balance the Cash accounts ? In the subsequent balancings, are the preceding footings of the columns included in the addition ? Why is this done ? What is done with the columns at the bottom of each page ? How often can you post those items extended into the Sundries columns? How often those in Cash and Shop columns ? How should the items passed over in posting be marked ? Why ? When the time selected for posting arrives, will the final footing of each of the Cash and Shop columns be the correct amount to post to the Dr. or Cr. of those %s? Which amount will be incorrect, and what must be done with it to find the proper amount for posting? Where must the Balance of Cash on hand be placed, on commencing again, in order to produce an equilibrium? How is the proof of each page obtained ? QUESTIONS 0^ PRACTICAL FORM, NO. 2. For what kind of business is this form intended ? By this arrangement, how often do you post to the Cr. of Mdse? What are the books of original entry ? From which do you post ? What transactions are entered in the D. B. at the time of their occurrence? How often are the Cash entries brought in ? Describe the form of this Book. What is entered in the extra column? Explain how this column is used, and when it is posted. How often may the entries in the,k0^er two columns be posted? How is the correctness of each page tested ? In order to have a proof of each page, what must be done when the amount of Mdse Or. column is carried over? Why are the additional columns introduced in the Cash-Book? 286 QUESTIONS ON PRACTICAL FORM, NO. 2 {contmueol). What is the extra column on the Dr. side for ? When are the entries made in it? What is done with this column previous to transferring to the Day-Book ? What will the Sundries column on the Dr. side then contain ? The extra column on the Cr. side is for what? When are the entries made? Prior to entering in the Day-Book, what is done with it? From which columns are the amounts taken in transferring the items to the Day-Bool '* What is the advantage of this arrangement? When Bills Rec. are paid before due, how should the entry be made ? Is the same rule applicable to Bills Pay. ? In which book is the Cash balanced in this form ? What is the Petty Cash-Book ? Where is it kept ? Who makes entries in it ? With what should the footing of this book agree at night ? What is placed in the left-hand marginal column ? What will be the heading of the entries in transferring the Cash to the Day-Book ? [Note. The answer to this question will be found under "Directions for Writing up," page 217, which should be carefully examined.] QUESTIONS ON PRACTICAL FORM, NO. 3. By what name is the method of keeping books shown in this form generally known ? For what kind of business is it appropriate ? What are the important books of original entry? To which of the Cash-Books already given is the one shown in this form similar? Explain the process of balancing the Cash-Book. Should the last footings of the columns be included in the next addition? Give the headings for the Journal entries from the Cash-Book. How are Bills Rec. and Bills Pay. Books usually bound up ? How many pages of the blank-book used constitute one page of the Bill-Book ? When are other persons' notes to you entered ? When your own notes to them ? With the balance of what account in the Leger must the amount of notes held by you against others, per Bill-Book, always agree? With what the balance of notes outstanding against you, per Bill-Book ? Give the heading for the Journal entry of Bills Rec. Book, Bills Pay. Book. What is entered in the Sales-Book of this form ? What is done with the cash sales at the close of each day ? If any portion of the receipts for sales has been deposited, how must this be counted? At how long a time are the credit sales supposed to be made? Into which column are the credit sales extended ? Into which the cash sales ? If a credit sale is extended, and afterwards, before the entry is journalized, it is paid, what must be done ? What is the Journal heading of the entry from the Sales-Book ? With what should the amount of this entry agree ? Is it necessary that the books should always be of this style in order to journalize them monthly ? What is the disadvantage of this form as compared with Form 4 ? During the month, when entries occur which cannot properly be placed in the Cash- Book, Bill-Book, or Sales-Book, where are they made? 287 QUESTIONS ON PRACTICAL FORM, NO. 3 {continued). What other items are entered originally in the Journal ? Explain the manner of entering purchases. For what are the two columns for dollars and cents used ? What date may be used in posting from the Journal ? In opening the accounts in the Leger, what order should be observed ? QUESTIONS ON PRACTICAL FORM, NO. 4. For what sort of business is this form of books intended ? What are the books of original entry? From which books are posts made ? How often may they be made ? Of what is the Sales-Book a record ? How often may the parties buying be debited ? What is done with the sales for cash, as entered in this book for any given day ? Should they receive any debit post from this book ? Should they be included in the total to be posted to the credit of Mdse at the end of the month ? How is an offset to this excess of credit produced ? If a credit sale is paid before.it is posted, what may be done with it? Explain how a sale made for cash can be brought through the account of the individual purchasing the goods. How must sales for notes be entered ? Why do houses of extensive business use two Sales-Books ? What are they called ? For what purpose is the Day-Book used ? At the close of the month, of what is it the receptacle ? Explain the treatment of invoices of goods purchased. From what place are the purchases on time entered in the Day-Book ? Where are the cash purchases found ? How marked ? Should they receive a separate post ? What transactions are entered in the Cash-Book ? In posting from it, to which side of the accounts affected should the entries on the debit side be posted? To which those on the credit side ? What is the object of introducing additional columns in this book? What are the extra columns on the debit side for ? What on the credit ? When an entry is made which affects either of the accounts which have columns, into how many places must the amount be extended ? Do you post daily to the debit or credit of those accounts which have columns ? How may Expenses account be managed to save posts ? When cash is paid out for goods bought, or for any items of expense which may properly be considered as a part of the cost of the goods, how should it be entered ? How should these entries be marked? To what book are they to be transferred? When? Can "cash purchases" be passed through the account of the individual on the Leger? Should cash purchases receive any debit post from the Cash-Book ? Explain how to balance the Cash account. When a balance of cash on hand is brought down from a preceding month, what must be done with it in order to obtain the right amount for posting at the end of the month ? 288 QUESTIONS ON PRACTICAL FORM, NO. 4 {continued). How are deposits in bank treated in this form ? How many pages of the blank-book used does one folio of the Bill-Book occupy ? When a note to be entered in it is an accepted draft, what must be entered in the column headed "Drawer"? When are the Bills Rec. entered in this book ? How often may they be posted ? When are Bills Pay. entered? How often posted? QUESTIONS ON PRIVATE LEGER. For what purpose is a private Leger kept ? What accounts does it contain ? What other book must be kept in connection with the private Leger ? What entries must be posted to this Leger ? Must this Leger be used in making trial balances, &c. ? QUESTIONS ON PRACTICAL FORM, NO. 5. By making a few changes in Form No. 4, we have a form which is convenient for what sort of business? What book needs to be changed ? What is used in its place ? How many columns has the debit side of this book ? Of what is it a record ? For what is the credit side used ? Explain in full the custom in houses of this kind in regard to making change and entering cash sales. What memorandum must the Cashier preserve in order to balance his cash at night ? Where must the amount received for each day's sales be entered ? In what manner ? What must be done with the debit total footing at the end of the month ? What will the Sales-Book then show? Where may the credit total footings be entered ? QUESTIONS ON PRACTICAL FORM, NO. 6. What kind of business is this form intended for ? What operations are illustrated as connected with the Commission Business V How is " Sales for account of Merchandise" treated ? What are the books of original entry in this form ? From which books are posts made ? 2M 289 QUESTIONS ON PRACTICAL FORM, NO. 6 {continued). What is the object of entering notes and interest in the Cash-Book ? When either Cash, Bills Rec., Bills Pay., or Interest, are Debtor, and some of them also Creditor, in the same transaction, how must the entry be made ? In posting the individual items of the book, what must be done with those accounts which have columns appropriated to them ? Will the footings of the several columns at the end of the month be the correct amounts to post to the debit or credit of those accounts indicated by the headings ? Which one will be incorrect ? Can the Cash account in this style of Cash-Book be balanced at any time with ease ? Similarly to what form already given ? In making entries in the Sales-Book, what marks must be given ? Why is this necessary ? To which Leger are posts made from this book ? To which side of a person's account must they always be made ? If the person pays by note or cash, where must he be credited ? How often can posts be made from the Sales-Book ? To what book are the items of goods sold transferred from this book ? What are the two advantages gained by making the Account-Sales Book one from which to journalize instead of using it only for preserving copies of account-sales rendered ? Explain the process of making out the account-sales ? Explain the Journal entry made from the Account-Sales Book ? When goods of various kinds are received from the same consignor and he wishes an account-sales rendered of each separately, how can you distinguish them in the Account Sales-Book ? What entries are made in the Journal ? How often are the account-sales generally brought in ? Suppose you desire to render an account-sales to a consignor prior to this periodical journalizing: what is to be done? How will you then distinguish, in the Journal entry, between the times when the different account-sales were rendered ? Explain in what account on the Leger a proof of correctness is found, and how it is obtained. Why are two Legers used in this business ? What are they called ? In making out trial balances, &c., how must these Legers be treated ? How do you distinguish in the Leger from which book postings are made ? What does the Receiving-Book contain ? In making out account-sales, what must be taken from this book ? How many columns has the Expense-Cash Book ? What are they for ? QUESTIONS ON PRACTICAL FORM, NO. 7. What sort of business is represented in this form ? How is such a business commenced ? What is entered in the Subscription-Book ? What are the main books of original entry needed ? What additional books will be required ? How is it advisable to open the books for this form of accounts ? In which book should the opening entry be made ? Explain it in full. 290 QUESTIONS ON PRACTICAL FORM, NO. 7 (continued). What is the next step ? Explain the manner of entering instalments in the Cash-Book. What accounts are placed in the Stock Leger? When all the instalments are paid, what becomes of Stock account? What will the main Leger contain ? When you desire to take a trial balance, what must be done ? How are the gains of the Company found? Explain the different methods of disposing of the dividend. What is the difference between "Scrip" and "Certificates of Stock"? When it is decided to pay to each of the Stockholders his share of the gains, what ac- count must be opened? Explain the treatment of this account. How does the ^^ Dividend List" differ from the ^^ Instalment List" P Describe the Stock-Book. What is placed in the left-hand margin ? Where is the receipt for the certificate placed ? Explain the two methods of transferring stock. What entries are made in the Day-Book ? How are transfers of stock entered in this book ? What is the Transfer Stock-Book ? To Avhat book are entries made from this book ? How can this book be used to post from ? How are the instalment-lists prepared ? Why are some of the names in the second List given different from the first ? To which Cash-Book already given is the one adapted for this form similar ? How are payments of cash made in this form ? What is done with these orders ? QUESTIONS ON PRACTICAL FORM, NO. 8. In what respect is a Banking business like a Joint-Stock Company business ? From what transactions are the profits of the business principally derived ? How should the books for a Bank be opened ? What additional books are needed beside those used in a Joint-Stock business ? How is the business of a Bank directed ? What are the principal officers ? What are the duties of the First Teller ? Explain the process of disposing of checks when presented. Describe the form of the Paying Teller's Book. What is done with the amounts entered in this book ? At the close of the day's business, with what must the footings of the several columns in this book agree ? What are the duties of the Receiving Teller ? How does he enter deposits ? How are the items conveyed to the Deposit Leger ? At the close of the day's business, what is the test of accuracy in these transfers ? What are the duties of Deposit Leger Clerks ? How are the accounts distributed when there are several such clerks ? What books has each clerk ? How are entries made in them ? When is the ^^ Summary" taken off? Explain it. How is the proof ascertained ? Why do the accounts of the Receiving Teller, and Note Clerk, appear on both sides of the '■^Summary"? From whom does the General Book-keeper receive daily statements ? What account does he debit with the amount of the First Teller's statement ? How does he enter those received from the Second Teller, Note Clerk, and Discount Clerk? 291 QUESTIONS ON PRACTICAL FORM, NO. 8 {continued). What examination must lie make each day to be certain of correctness ? When a draft is received from another bank, how is it treated ? What is the business of the Discount Clerk ? How are notes presented for discounting ? Where does he first enter them ? What is then done with this book ? Upon the return of the Ofiering-Book, what does the Discount Clerk do with the accepted notes ? What with the declined ? How is the Discount-Book arranged ? From this book where are the entries made, and how ? What does the Discount Clerk render to the Deposit Leger Clerks ? What other book is used in connection with discounting-operations ? How is the Tickler arranged ? What is entered in this book ? For what purpose is it used ? What is the duty of the Note Clerk ? When notes fall due, what does he do ? Describe his book ? When notes are paid, to whom does he report them ? If any portion of the amounts received for notes should be in the form of checks, what does he do with them ? Explain the process pursued in relation to the collection of notes. If a note which has been protested was a discounted note, who is he^d liable for the amount ? If it had not been discounted, what is done with it ? What are considered "Foreign Bills"? Explain the business of the Foreign Note Clerk. What duties belong to the Draft Clerk ? Who renders to the General Book-keeper the accounts of drafts on other banks ? 292 COMMERCIAL CALCULATIONS; OR, MERCANTILE ARITHMETIC. 293 COMMERCIAL CALCULATIONS. INTEREST. Interest is a premium or per-centage paid by the borrower to the lender for the use of money lent. There are several methods of calculating mterest, of which we give the foUowing. I. To OBTAIN THE INTEREST, WHEN THE PRINCIPAL, TIME, AND RATE PER CENT. ARE GIVEN. Rule I. Multiply the principal by the rate per cent, per annum, and cut off" two figures in the pro- duct^ as decimals : the result will be the interest for one year. Multiply this interest by the number of years in tlie given time, and taJce aliquot parts for the months and' days, Rule II. Express the time given as th^ fractional part of a year. Multiply this fraction oy the rate per cent, per annum, and the principal by the product obtained, and in the last product point of two decimal places. Rule III. 1st. When the interest is at 6 per cent, per annum. Multiply the principal by one-half the number of months in the given time, and point off two places as decimals in the product. If the given time be days, multiply the principal by one-sixth the number cf days, and in the product point off three decimals. 2d. To find the interest at any rate per cent. Obtain the interest at 6 per cent., as above, and take aliquot parts of the same for the required interest : — thus, if the rate per cent, be 5, deduct one-sixth from the interest Jound at 6 per cent. — j/*4, deduct one-third — ifl, add one-sixth — i/'9, add one-half; and so on. Note. — In working by rules II. and HI., if the time consists of loth months and days, get the interest for each separately, and add the amounts together to obtain the whole interest. Examples, 1. What is the Int. on $2,954 for 3 montns, 10 days, at 6 pr. ct. .? By rule I. 2954 6 3mos. are \ of y'r 4)177,24 lOd's areiof 3mos. 9)44,31 4,92^ Ans. $49,23^ By rule II. 3 mos. are -^^ or i of a y'r, and 10 d's are -^^-^ or 3?^ of a y'r, then ^x6=^-x2954=44,31Int.3mos. Jg-X6=^x2954=_4^ Do.lOd's Ans. $49,23| By rule III. of 3 mos. is li, and I of 10 d's is If, then 2954 X H=44,31 Int. 3 mos. 2954x11 = 4,92,3| Do.l0d's. Ans. $49,23,31 294 COMMERCIAL CALCULATIONS. 2. What is the Int. on $3,670 from Mar. 1st, 1858, to July 11th, 1859, at 7 pr. ct. > By rule I. 3670 7 3)256,90 Int. 1 y'r 12) 85,63J. « 4 raos. 7,13^V" 10 d's $349,66 U Ans. By rule II. 1859, 7, 11 1858, 3, 1 1 y'r 4 m. 10 d's time. 1^x7=9^ X3670=342,53| Int. 16m. ^^^X7=^VX3670= 7,131-i " 10 d's Ans. $349,66-11 By rule III. 3670x8=293,60 Int. at 6 pr. ct 16 mos. 3670xl|= 6,ll,6|Int.at6pr ct., 10 d's. 6)299,71,6|wholeInt.at 6 pr. ct. Add I 49,95 ,211 Ans. $349,66,9yV 3. What will be the Int. for 7 months, at 9 pr. ct., on $6,745,52 ? 6745,52x9=607,09,68 2 )607,09,68 Int. 1 y'r 3= $480,00. Ans. LOSS AND GAIN. I. To ASCERTAIN WHAT IS GAINED OR LOST PER CENT. IN BUYING AND SELLING GOODS. Rule. Find by subtraction tJie gain or loss on the articles sold (either on the whole amount, or pr. box^ bale, y^d, Sfc), annex two cyphers, and divide by the purchase price : the quotient uiill be the gain or loss per cent. Ex. 1. If I buy 50 Yds. of Broad Cloth at $5,25 pr. Yd., and sell it at $7pr. Yd., what do I gain pr. ct. ? 7,00 — 5,25=1,75 gain on a Yd. ; to which annex two cyphers. Then 175,00h-5,25= 33| pr. ct . Ans. Ex. 2. Bought 1,200 Bbls. Flour at $4 pr. Bbl., and getting it damaged sold the whole for $4,000 ; what did I lose pr. ct. ? 1200 X 4=4800— 4000 =$800 total loss. Then 80000 -v-4800= 16| loss pr. c t. Ans. II. The gain or loss per cent, being given, to ascertain the whole gain or loss Also to ascertain at what price merchandise must be sold to gain or lose a stipu lated per cent. Rule, \st. Multiply the cost by the rate per cent., and in the product point off two decv- trial places. The result will be the whole gain or loss. 298 COMMERCIAL CALCULATIONS. 2d. If a gain, add it to the cost, and if a loss, deduct it therefrom, and you toill obtain the selling price. Ex. 1. If I sell $5,000 worth of Mdse. at 33^ pr. ct. advance, what do I gain? 5000x33^= |1666,66f Ans. Ex. 2. If I buy Pork at $8 pr. BbL, what must be my selling price to make 20 pr. ct on the first cost ? 8x20=1,60 gain pr. Bbl., and 8+ 1,60= $9,60 pr. Bbl. Ans. III. To ASCERTAIN AT WHAT PRICE MERCHANDISE MUST BE BOUGHT IN ORDER TO SELL IT AT A STIPULATED PRICE AND MAKE A CERTAIN RATE PER CENT. Rule. Annex two cyphers to the selling price, and divide by one hundred increased by the rate per cent., and the quotient will be the purchase price. Ex. 1 . I sell goods to the am't of $800, which includes 10 pr. ct. on the prime cost, what was the prime cost ? 800, annex two cyphers, 80000-4-1 10= $727,27 JL. Ans. Ex. 2. In order to sell sugar at $7,50 pr. 100 lbs., and thereby make 15 pr. ct., what must be my purchase price ? 75000-4-115= $6,52JVV pr. 100 lb s. Ans. EQUATION OF PAYMENTS. The object of Equation of payments is to find the medium or average time for the pay- ment of several sums of different dates, or different terms of credit, or both. Rule I. When the sums are of the same date, but having different terms of credit. Multiply each sum respectively by tfie time it has to run, and divide the sum of the several products obtained by the whole debt : the quotient will be the averaged time of credit. Ex. A. purchases of B. goods amounting to $1,025, payable as follows— $200 in 3 months ; $360 in 4 months ; $300 in 5 months ; and $165 in 6 months : but concludes to give one note for the whole. At what time shall it be made payable ? 1025)4530(4 12-r«,VT 4100 4 mos. 13 d's. Ans. Am'L Time. Product 200 X 3 = 600 360 X 4 = 1440 300 X 5 = 1500 165 X 6 = 990 430 30 $1025 4530 J2900 2650 2050 600 Rule II. Multiply each respective sum by the time intervening between the date when the FIRST amount falls due, and the date on which each sum falls du£. Divide the sum of ihe several products by the whole debt, and the quotient will be the average time of payments to be counted forward from the date of the first amount falling due. 299 COMMERCIAL CALCULATIONS. Ex. A owes B. $2,000, for purchases at different dates, and on various credits, as below stated. Required the equated time for the payment of the whole debt. Statement from Book Ac't. Date of purchase. Amount. Time of Cr. When due. Jan. 16 - - - $300 - - - 3 mos. - - - April 16. « 24 . . 500 - - - 2 " ... March 24. Feb. 1 _ • 250 - - - 4 " - - - June 1. " 15 - . 350 - - - 3 « ... May 15. March 8 600 - - - 4 " - - - Statement arranged as an equation. July 8. Due. Amount. - Time (in days.) Product March 24 . - 500 X 00 = 0000 April 16 . . 300 X 23 = 6900 May 15 . . 350 X 52 = 18200 June 1 . . 250 X 69 = 17250 July 8 - - 600 X 106 = 63600 $2000 Then 53 days from March 24, is May 16. Ans. ) 105950 (52^1*° days. Rule III. Multiply each sum respectively by the time intervening between the date on which it falls due and the date on which the last amount Jails due. Divide the sum. of the several products by the whole debt, and tlie quotient will be the equated time, to be counted backward frorn the date of the last amount falling due. Ex. Suppose I purchase goods at sundry times as follows : Jan. 5 a bill of $376,40 on a credit of 6 months. Jan. 15 " « « 125,75 « « " " 3 " Feb. 1 " " " 295,25 « « " " 60 days. INTar. 2 " " " 325,00 no credit : and on making the last purchase wish to give my note for the whole. When must it be made payable .-' Statement as an equation. Due. Amount. Days. July 5 - . - 376* X 00 April 15 - - 126 X 81 April 2 - - - 295 X 94 March 2 - ■ - - 325 X 125 Product 0000 10206 27730 40625 $1122 Then 70 days backward from July 5 is April 26. Ans. ) 78561 (70^11^ days. Rule IV. By Interest. Calculate the interest on each sum respectively for the same time that you would multiply it by in working by the preceding rules. Sum up the several items of interest obtained, and find how long it will take for the whole debt to accumulate that amount of interest : the result will be the equated time, to be counted forward or back- ward, according to the day from which you reckon. Note. — To show that this produces the same answer as the preceding rules, we will take the three examples already given, working the first at 5 pr. ct interest, the second at 7 pr. ct, and the third at 6 pr. ct ♦ In working this equation we have omitted the cents when less than fifty, and when more than fifty called them a dollu ThU will usually be found sufficiently exact. 300 COMMERCIAL CALCULATIONS. 1. Example given under Rule I. Amovmt Months. Int & 5 per ct $200 - . . - 3 - - - 2,50 360 - . . . 4 - - - 6,00 300 - ■ . - 5 - - - 6,25 165 - . . - 6 - - - 4,12,5 Int. on $1025 one mo. is $4,27,1 Then 18,87,5^4,27,1 4 mos. 13 days. Ans. as by Rule I. 4i||4 mos. or $1025 $18,87,5 2. Example given under Rule 11. Due. Amount Days. Int ® 7 per cL March 24 - - 500 - - 00 - - 0000 April 16 - - 300 - . 23 - - 1,34,2 May 15 - - 350 - - 52 - - 3,53,9 June 1 - - 250 - - 69 - - 3,35,4 July 8 - - 600 - - 106 - - 12,36,7 For $2000 to gain $20,60,2 Int. it requires 53 days (nearly.) Then 53 days from March 24 is May 16. Ans. as by Rule II. 3. Example given under Rule III. Due. Amount Days. Int @ 6 per ct July 5 . - - 376 - - 00 - - 0000 April 15 - - 126 - - 81 - - 1,70,1 April 2 - - 295 - - 94 - - 4,62,2 March 2 - - 325 - - 125 - - 6,77,1 For $1 122 to gain $13,09,4 Int. 70 d's are required (fraction omitted.! 70 days backward from July 5 is April 26. Ans. as by Rule III. Remarks. — In all the preceding rules we have reckoned the time from the date either of the first or last amount falling due ; but any other time previous to the first date, or succeeding the last, may be chosen if preferred. Thus, in the Ex. given under Rule 11., we might with equal propriety have reckoned the time from March 1st, in which case there would have been 24 days' time for the first item, and the others increased proportionally : then, in the result, the number of days obtained would have been counted forward from March 1st When there are a great number of small items to be equated, all those which fall due in one month are Ue- quently summed up together and called due on the first of next month. The days of grace (which are now almost universally allowed) may be added to the time of each item to be equated, or the equation may be first worked, and then the addition of grace made. The latter mode is much the easiest, and produces the same result COMPOUND EaUATION. By Compound equation we ascertain at what time the balance of an account that con tains both debits and credits becomes due. Rule I. First find by simple equation the averaged time when the debits and credits of the account Jail due, without regard to their relation to each other. Then multiply the smaller side of the account, (whether it be the debit or credit,) by the number of days between the days of equated time obtained, and divide the product by the balance of the account : the quotient uxill be the time required for calculation. If the earlier date of equated time b^ 301 COMMERCIAL CALCULATIONS. affixed to the larger side, {vjhether debit or credit,) count the time back from the earlier date ; but if the later date be affixed to tlie larger side, count the time forward from the LATER date, and you will obtain the day on which the balance becomes due. Ex. 1. I have an ac't with Samuel Wells — Am'ts and times of payment as below stated — and wish to know the equated time when the balance shall be paid. Date. Jan, 4, Feb. 1, " 15, Mar. 2, Time to run Due. Amount. 2 mos. - Mar. 4, - $250 30 d's. u 3, - 140 2 mos. - Apr. 15, - 450 1 " - " 2, - Total debits 100 $940 Date. Jan. 1, " 20, Feb. 8, Mar. 4, " 25, Time to run. 6 mos. ■ 60 d's. - 30 d's. ■ 3 mos. ■ 2 " - Due. July 1, Mar. 21, " 10, June 4, May 25, Amount $500 200 350 240 120 Total credits $1,410 Due. Mar. 4, " 3, Apr. 15, " 2, Amount. 250 140 450 100 $940 Mode of operation. Due. July 1, Mar. 21, '^ 10, June 4, May 25, Days. Product 1 = 250 = 000 43 = 19350 30 = 3000 Amount. 500 200 350 240 120 Days. 113 11 00 86 76 Product = 56500 = 2200 = 0000 = 20640 = 9120 $1,410 88460 1410) 88460 (62|^4, 63 days from Mar. 10. $1410 due May 12. 22600 940) 22600 (24/^, 24 days from Mar. 3 is Mar. 27. $940 due Mar. 27. From Mar. 27, to May 12, is 46 days. Credits 1410 ^ Smaller side. Days. Bal. Debits 940 C 940 x 46=43240-7-470=92 days, which, counted ybr2i;ary Ans. 35160 27 sixpences: 9) 35187 :13s. 6d 3909,66,66 7,41=4d. 3909,74,07 par value. 351,87.66 add prem.at 9 pr.ct $4261,61tVo Ans. 304 COMMERCIAL CALCULATIONS. II. To REDUCE FEDERAL TO ITS NOMINAL PAR VALUE IN STERLING MONEY. Rule. Multiply by 9 {the sixpences in a dollar) and divide the product by 40, {the six- pences in a pound,) and the quotient will be the answer in pounds, and deciinats of a pound, which reduce to shillings and pence. Ex. 1. What is the nominal par value in sterling money of $8,322,54? 8322,54 jei872,571 9 20 4^0 )74902,8,6 s. 11,420 ^61872,571 1? d. 5,040 JE 1872, lis. 5d. AnS. Note. — The real value is as much less than the nominal par value as the premium of exchange at the time. Ex. 2. The net proceeds of a sale amount to $4,261,62, which a factor wishes to remit to his consignor in England. For what amount will the bill of exchange be drawn, pay- ing 9 pr. ct. premium on the same } 4261,62 109 : 100 : : 958,8645 9^ 100 4,0) 38354,5,8" 109) 95886,4500 par value je958,8645 >£879,6922=j E879, 13s. lOd. Ans. INDIRECT EXCHANGE. Owing to the difference in the rates of exchange between different countries, it is fre- quently more advantageous for a person wishing to remit funds to any foreign country, to purchase a bill on some other place, and direct his agent there to invest the proceeds in bills on the place to which he wishes to make the remittance. This is called indirect exchange, or arbitration of exchange, and will be readily comprehended by the following examples : Ex. 1. Suppose the exchange of Philadelphia on London to be 10 pr. ct premium, of Do. on Hamburg 35^ cents pr. marc banco, and of Hamburg on London 13^ marcs banco pr. pound sterling, and a merchant wishes to remit ^£5,000 to London. How much would he gain by an indirect remittance through Hamburg, if his agent at that place charge ^ pr. ct. commission for procuring the bill on London. Direct to London. 5000 40 9 )200000 $22222,22,2 par. 2222,22, 2 prem. @ 10 pr. ct. $24444,44,4 To London through Hamburg. £ m.b.prjE 5000 X 13^=67500 marcs banco 337,5 Com. @ ^ pr ct. 67837,5 Then m. b. cts. pr. m. b. 67837,5 X 35^= $24082,31, 2 Cost of direct exchange $24444,44,4 " " indirect " 24082,31,2 Ans. $362,13,2 Ex. 2. An agent in Havana (Cuba) wishes to remit to his principal, in Pans, the amount of funds in his possession, $4,000. How much more will the principal receive 2 305 FOREIGN COINS AND MONEYS OF ACCOUNT. (after the expenses of exchange have been deducted) by an indirect remittance through New York, than by a bill direct on Paris; provided 1 dollar Havana currency be equal to 5 francs, and the exchange of Havana on Paris be 1 pr. ct. prem., of Do. on New York 4 pr. ct. prem., and of New York on Paris 5 francs 30 centimes pr. dollar, and the agents in Havana and New York each be allowed ^ pr. ct. com. for doing the business ? To Paris through New York. $4000 Havana cur. 20 agent's com. at Hav. 3980 153,08 prem. at 4 pr. ct. $3826,92 am't of bill on N. Y. 19,13 agent's com. atN. Y. 3807,79 5,30 francs pr. dollar. 11423370 1903895 To Paris direct. $4000 Havana cur. 20 agent's com. at Hav. 3980 5 francs pr. dollar. Francs 20181,2870 am't of bill on Paris. 19900 197,03 prem. at 1 pr. ct. Francs 19702,97 am't of bill on Paris. Francs 20181,29 am't rec'd. via N. York. " 19702,97 " " direct. " 478,32 Ans. FOEEIGN corns AND MONEYS OE ACCOUNT.* Moneys of Account are those denominations of money in which accounts are kept and sales and purchases usually effected. They generally correspond in name with some of the coins of the country, but not unfrequently differ in value, representing a paper currency depreciated below the value of the coins of corresponding names. Thus, in our own country, the coins are pieces of gold of the value of $20, $10, $5, $3, $2^, and $1 ; pieces of silver of the value of $1, 50 cents, 25 cents, 10 cents, 5 cents, and 3 cents ; and the one-cent piece, which is made of a compound of copper and nickel : and accounts are kept in dollars and cents. At the present time the dollar of account 18 equivalent to a specie dollar; but so recently as during the years 18-37 to 1840, its value was from 10 to 25 per cent, less, throughout the greater part of the Union. The subjoined table comprises a list of the moneys of account of the principal com- mercial nations of the world. In those cases where the unit of the money of account corresponds in value with one of the coins of the country, (for example, the pound sterling and the English sovereign,) the value of said coin, estimated according to the United States mint price of the metal (gold or silver) of which it is made, is given; and when the money of account represents a depreciated currency, it is so stated, and its approximate value is named. The standard fineness, and the quantity of the metals of which the coins of a country are composed, are regulated by the laws of each country, and are, of course, subject to change ; and the prices paid for gold and silver by the mint of each country are regu- lated by the laws of said country, and are also subject to change. If any of the coins contain more of either of the precious metals than accords with the mint price of that metal, such coins, being worth more than their nominal value, will be withdrawn from circulation, and sold for the market value of the metal which they contain. And if, on the contrary, any of the coins contain less of either of the precious metals than accords with the mint price of that metal, such coins, being worth less than their nominal value, will be retained for circulation in that particular country, but will not * For the above valuable article on Foreign Coins and Moneys of Account, revised and amended, August, 1857. the work is again indebted to W. Vogdes, LL.D., Professor of Mathematics in the Public Central High School of Philadelplua, and author of " Tho Dnitod States Arithmetic," for which work it was prepared. — S. H. C. 806 FOREIGN COINS AND MONEYS OF ACCOUNT. be remitted to foreign countries to pay indebtedness. Thus, in our country, the mint price of silver is ^1.225 per ounce; the silver dollar piece must by law contain, when coined, (which rarely occurs now,) at the rate of $1.1636+ per ounce: and the half dollar, and all the smaller pieces, are coined at the rate of $1.25 per ounce. Hence ♦^he silver dollar pieces are really worth $1.05 J, at the mint price of silver, and are withdrawn from circulation, or used only for remittance to foreign countries where silver is in demand, while the smaller silver coins are retained for our domestic currency ; and for the payment of adverse balances of trade the gold coinage of our country is remitted to most foreign countries. The following remarks on the balance of trade, the par of exchange, and the course of exchange, it is hoped, will prove interesting and instructive to those seeking for information relative to foreign moneys of account. 1. The Balance of Trade is, with nations or commercial communities as with indivi- duals, that sum which, after the interchange of merchandise for a given period of time, remains due and to be paid by one party to the other. 2. The Par of Exchange between two countries is determined by the quantity of the precious metal (gold or silver) contained in the kind of coin usually remitted to pay the balance of trade, said quantity or contents, in our country, being ascertained by assay at our national mint, and officially reported. Thus, the English mint price of gold \\ihs fine is <£3 17s. lO^d. per ounce, and the value of the sovereign or pound sterling, at our mint price of gold i^^ths fine ($18,604+ per ounce), would appear to be $4,866 + [see note on page 314] ; but, by reason of wear and a slight deficiency of fineness, it is found that the average yield of English sovereigns is about $4,845. If, therefore, the balance of trade should be in favor of our country with England, and a remittance of English sovereigns be contemplated to our country, the par of exchange would be $4,845 for the pound sterling ; but should the balance of trade between our country and Eng- land be against the United States, and a remittance of American gold coin to England be intended, the wear of our coin, as determined by melting at the English mint, might place the par of exchange above $4,866+ for the pound sterling. Gold, assayed and put into the form of bars by the United States Mint, is, however, generally remitted from our country, thus avoiding loss from wear, and making the par of exchange about $4,866+ for the pound sterling. It may not be amiss here to state that the nominal par value of the pound sterling, uniformly quoted in operations in exchange, is $4.44|, an old custom-house valuation for silver : hence, when exchange between the United States and England is really at par ($4,866+ for the pound sterling), it is quoted in the United States at 9 J per cent. $4.44* X 9A premium, $4.44f H =^w^ being equal, or very nearly equal, to $4,866+. 3. The Course of Exchange deviates from par, according to the superabundance or deficiency of the supply of bills of exchange for sale. Thus, if, owing to the balance of trade being in favor of the United States with England, or to loans of money made by parties in England to others in the United States, there should be a superabundance of bills of exchange on England for sale in the United States, the course of ex- change would be against England, and the rate or price would be below $4,866+ per pound sterling. If payment for bills of exchange be made in a paper currency of a value depreciated below the mint value of specie, the rate of exchange is advanced cor- respondingly, as was the case in our country in the years 1837 to 1840. Professor Vogdes acknowledges his indebtedness to the Assayers of the United States Mint, for valuable aid in the preparation of this article. United Kingdom of Great Britain and Ireland. Accounts are kept in pounds, shillings, pence, and farthings: Prices of articles are also not unfrequemly quoted in guineas. 4 farthings (qr.) = 1 penny, (d) 12 pence = 1 shilling, (s) 20 shillings = 1 pound sterling, (Xstg.) 21 shillings = 1 guinea, (g) 307 FOREIGN COINS AND MONEYS OF ACCOUNT. The sovereign, or pound stg. in gold, is worth $4,867, at the U. S. mint price for gold. France. Accounts are kept in francs and centimes. 100 centimes (c) = 1 franc (f). The franc is worth about 19.6 cts., at the U. S. mint price for silver. Belgium. Accounts are kept mjiorins or guilders, and cents or hundredths. The florin is worth about 42 cts., at the U. S. mint price for silver. The coinage of Belgium since 1832 has been similar to that of France. Holland. Moneys of account same as in Belgium. Bremen. Accounts are kept in current rix-doUars, grotes, and scTiwares. 5 sch wares = 1 grote, 72 grotes = 1 rix-doUar current = 75.2 cts., U. S. currency. The old rix-dollar (silver) = 85.8 cts. ; that since 1840 = 75.2 cts., at the U. S. mint price for silver. Hamburg. ' Accounts are kept in marcs, sols or schillings, and pfenings, currency or lubs, (mean- ing "of Lubeck.") 12 pfenings = 1 schilling, 16 schillings = 1 marc. The marc currency, which is a silver coin, is worth about 30 cts., at the TJ. S. mint price for silver. The marc banco, which is an imaginary money, based upon certificates of deposit of bullion and jewelry in the Bank of Hamburg, fluctuates 2 or 3 per cent, above or below its par value, which is 23 per cent, more than the marc currency, or about 36.9 cts., U. S. currency. Accounts are also sometimes kept, particularly in exchanges, in pounds, schillings, and pence, Flemish. 12 grotes or pence = 1 schilling, 20 schillings = 1 pound. 1 pound Flemish, banco = 7| marcs banco. Denmark. Accounts are kept in rix-dollars, marcs, and shillings. 16 skillings = 1 marc, 6 marcs = 1 rix-dollar. The new rix-dollar, or rigsbank dollar, (silver,) is worth about 55.3 cts., at the U. S. mint price for silver. The money used in commercial transactions is bank money, which is commonly at a heavy discount. Norway. Accounts are kept in rix-dollars species and skillings. 120 skillings = 1 rix-dollar species. Value of the specie dollar, (silver,) at the U. S. mint price for silver, §1.106. Norway has no gold coinage. Sweden. The currency of Sweden consists almost entirely of paper money, of Avhich there are two descriptions, the one issued by the government bank, called riksgald, the other issued by the national bank, called banco, the latter being worth 50 per cent, more than the former. 308 FOREIGN COINS AND MONEYS OF ACCOUNT. Accounts are kept in rix-doUars, shillings, and rundstt/cJcs, riksgald, or banco.' 12 rundstycks = 1 skilling, 48 skillings = 1 rix-dollar. The value of the specie dollar (silver) or coin of the realm, at the U. S. mint price for silver, is about ^1.116 : that of the paper money fluctuates, but may be said to be, of the rix-dollar banco, about 39 cts. ; of the rix-dollar riksgald, 26|^ cts. Russia. Prior to the year 1840, accounts were kept in paper roubles, 3J of which were equal to 1 silver rouble : from that period the silver rouble and the eopec, of one-hundredth part its value, have been adopted by law as the moneys of account. Value of the silver rouble, at the U. S. mint price for silver, about 79 cts. Prussia. Accounts are kept in thalers or dollars, silver groschen, and pfenings. 12 pfenings = 1 silver grosch, 30 silver groschen = 1 dollar. Value of the dollar, (silver,) at the U. S. mint price for silver, about 73 cts. Austria. Accounts are kept va. florins and kretdzers. 60 kr. = 1 florin. Value of the florin, (silver,) at the U. S. mint price for silver, 51J cts. Venice. Accounts are kept in lire divided into 100 centesimi. These are imaginary moneys of the value of the French franc and centime respectively. Sardinia. Accounts are kept in lire and centesimi or hundredths ; corresponding in value with the French franc and centime respectively. The value of the gold and silver coinages also corresponds with that of France, diflfering only in name. Tuscany. Accounts are principally kept in pezze of 8 rials, or dollars, soldi di pezza, and denari di pezza. 12 denari di pezza = 1 soldo di pezza, 20 soldi di pezza = 1 pezza of 8 rials. But for transactions of small amount accounts are kept in lire, soldi, and denari. 12 denari = 1 soldo, 20 soldi = 1 lira, 6f lire = 1 pezza (silver) = about 95 cts., at U. S. mint price for silver. Papal States. Accounts are kept in crowns or scudi and lajocehi. 100 bajocchi, or 10 paoli = 1 scudo (silver) = $1.06, at U. S. mint price for silver Payments of greater amount than 5 scudi are made in paper money, which, not being redeemable in specie on demand, is at a discount. Naples. Accounts are kept in ducati and grant. 100 grani or 10 carlini = 1 ducat. Value of the ducat, Csilver,) about 83.2 cts., at U. S. mint price for silver. Sicily. Accounts are kept in oncicj tari^ and grani. 309 FOKEIGN COINS AND MONEYS OF ACCOUNT. 20 grani = 1 taro, 30 tari = 1 oncia. 1 oncia = 3 ducati of Naples ; and 1 taro = 1 carlino, of Naples. The oncia (gold) = $2.48J, at U. S. mint price for gold. Spain. Accounts are kept, at Cadiz, Malaga, and in most of the provinces of Spain, in riaU of old plate, quintos, and maravedis. 2 maravedis = 1 quinto, 16 quintos = 1 rial of old plate. lOf rials of old plate = 1 silver dollar. Value of the dollar, (silver,) $1.05|^, at U. S. mint price for silver. At Barcelona, accounts are kept in libras, sueldos, dineros, and mallas. 2 mallas = 1 dinero, 12 dineros = 1 sueldo, 20 sueldos = 1 libra. The libra is likewise divided into rials de plata Catalan, of 3 sueldos each, and into rials ardites, of 2 sueldos each. 1 libra = j% silver dollar. Portugal. Accounts are kept in milrees and rees. In notation the milrees are separated from the rees by a crossed cypher (©), and the milrees from the millions of rees by a colon :) — thus, 5:400©300 rees = 5,400 milrees and 300 rees. 1 milree or crown (silver) = 1.18, at the U. S. mint price for silver. Greece. Accounts are kept in draehme and lepta. 100 lepta = 1 drachm^. Value of the draehme, (silver,) 17.5 cts., at U. S. mint price for silver. Turkey. Accounts are kept in piastres, paras, and aspers. 3 aspers = 1 para, 40 paras = 1 piastre. Some foreign merchants resident in Turkey reckon 80, others 100 aspers to the piastre, in their accounts. The value of the piastre (silver) was depreciated from 60 cts., in 1764, to 3 cts., in 1832. Its present value is about 4 cts., at the U. S. mint price for silver. Egypt. Accounts are kept as in Turkey. The piastre (silver) is worth about 5.06 cts., at the U. S. mint price for silver. Cape of Good Hope. Accounts are kept in pounds, shillings, pence, and farthings, sterling ; or in rix-dol- lars, schillings, and stivers. 6 stivers = 1 schilling, 8 schillings = 1 rix-dollar = Is. 6d. stg. Mauritius. Accounts are kept in dollars and cents currency. The current dollar is worth 4 shillings stg., or about 97^ cts., U. S. currency, when exchange is at par. East India Company's Territories. Accounts are kept in Company's rupees, annas, and pice. 12 pice = 1 anna, 16 annas = 1 Company's rupee. Value of the Company's rupee, (silver,) at the U. S. mint price for silver, about 46.8 cts. Notation. 1,00,000 (100 thousand) = 1 lac ; 1,00,00,000 (10 millions) = 1 crore. 310 FOREIGN COINS AND MONEYS OF ACCOUNT. Java. Accounts are kept in Jlorins and cents, as in Holland. ManiUa. Accounts are kept in dollars and rials 8 to the dollar. The dollar (Spanish) = $1.05J, at U. S. mint price for silver. Sydney, N. S. W. A-Ccounts are kept in sterling n;^ney. Canton. Accounts are kept in taeU, mace, eandarines, and cash. 1 tael = 10 mace = 100 eandarines = 1000 cash. The cash is the only money coined by the Chinese government, and is made of a mixture of copper and lead. It is generally worth more than its nominal value, and when much in demand for change a tael will sometimes purchase only 750. 72 eandarines are considered equal to 1 U. States dollar of account ; but specie dollars are generally worth from 8 to 10 per cent, more than the dollar of account. British Provinces op North America. Accounts are kept in pounds, shillings, pence, a,nd farthings, Halifax currency; or in dollars and cents, of same value as U. S. currency. The pound = $4 U. S. currency. 4 farthings = 1 penny, 12 pence = 1 shilling, 20 shillings = 1 pound. British West India Colonies. In these islands accounts are kept in pounds, shillings, pence, and farthings, of the same relative value as in England; but the value of the pound currency, as compared with the pound sterling, varies in the different islands. Cuba and Porto Rico. Accounts are kept in Spanish dollars and rials plate of 8 to the dollar. The value of the dollar is $1.05J, at the U. S. mint price for silver. Note. — Peso, the Spanish word for dollar, is used to designate that coin, in all the American states which were Spanish colonies. St. Domingo. Accounts are kept in dollars, and centimes or hundredths. The dollar (silver) varies in value from 25 to 30 cts., U. S. currency. Mexico. Accounts are kept in dollars and rials. 8 rials = 1 dollar, (silver,) worth about $1.05, at U. S. mint price for silver. Venezuela, New Grenada, and Ecuador. Accounts in these republics, formerly united under the name of Colombia, are kept in dollars, and rials 8 to the dollar. The coinage of these states is very irregular in value; some dollars (silver) being worth rather more than the dollar of the IJ. States; some not more than -| its value; but most being of less value than our coin. 311 FOREIGN COINS AND MONEYS OF ACCOUNT. Brazil. Accounts are kept in mihees and rees, currency. 1000 rees = 1 milree. In notation the milrees are separated from the rees by ||. The piece of 2||000 rees (silver) = about $1.02, at U. S. mint price. The currency of Brazil is chiefly paper and copper, redeemable in silver only at a very great discount : the rate varying very much in different provinces, and at different times in the same province. Monte Video. Accounts are kept in dollars currency, rials, and centesimos. 100 centesimos = 1 rial, 8 ria^p = 1 dollar currency. The dollar of account or currency = about 87.8 cts, U. States currency. There is no paper currency. Buenos Ayres. Accounts are kept in dollars currency and rials 8 to the dollar. The value of the dollar currency fluctuates very much, having sometimes been as low as 6^ cts., U. States currency. Chili. Accounts are kept in dollars and rials 8 to the dollar. The dollar (silver) is worth about 98.2 cts., at the U. S. mint price for silver. Peru. Accounts are kept in dollars and rials 8 to the dollar. The dollar (silver) is worth about $1.05, at the U. S. mint price for silver; but the fractional parts of the dollar, about 6 per cent. less. There is a duty of 5 per cent, on dollars exported. FOREIGN GOLD AND SILVER COINS NO LONGER LEGALLLY CURRENT IN THE UNITED STATES. By Act of Congress, of February 21st, 1857, all former acts authorizing the currency of foreign gold or silver coins, and declaring the same a legal tender in payment for debts, were repealed; and it was made the duty of the director of the United States Mint to cause assays to be made, from time to time, of such foreign coins as may be known to our commerce, to determine their average weight, fineness, and value, and to embrace in his annual report a statement of the result thereof. ViLUE OF FOREIGN MONEYS OF ACCOUNT, IN COMPUTATION AT THE CUSTOM-HOUSES IN THE UNITED STATES, AS FIXED BY ACT OF CONGRESS. By Previous Laws, c. Franc of France = IStVoV ^'• Austrian Guilder = 48 c c. Denmark Rix-dollar = $1.00 c. Pound Stg. Great Britain = $4.84 " of Halifax = $4.00 c. " of Jamaica = $3.00 c. Pezza of Leghorn == 90t^" c. Ducat of Naples = c. Rix-dollar of Prussia = Rial of Plate of Spain = Ounce of Sicily = $2.46 312 By Law of March 3, IS 43. Thaler of Prussia = 68^ Milree of Portugal = $1.12 Rix-dollar of Bremen = 78| Thaler of Bremen, 72 gi-otes = 71 Milree of Madeira = $1.00 " of Azores = 83^ Mare banco of Hamburg = 35 Rouble of Russia = 75 Rupee of British India = U\ T5T5 80 c. 8R 3 9 10 c. 2S COCOCOC^COCOCOC^COCOCOCOCOCOITOCOCOCOCOCQCOCOCOCOCOCOCQCOCOCOCO »-ic^co'*iocr)t^ooc50'-i(»c^"^iocor^oociO'-i(Nco'rt<>ocor-ooo50'H lOCOtr^OOOO'-iC^JCOTt^iOCOt^GOaiO'— iC^C0-rt00CiO'— 'CNiTOtJ* OOOOOrHrHi— I.— ii— ii— ii-H— 11— ii— iC^C<>G<>CNC<(rorOCOCOro i:OCOCOCOCOCOCQCOC*3COCOCOeOCOCOCO(73COCOCOCOCOCOCOCQCOCOCOOOCO r-HCNCOTfxOCOt^OOClO •== 2 mS '^u:2tot'CoajOi-HfNiro-<:j^»ocr>i>cooO'-HCNroTj*iotoi:~oociO'--'C<>(ro-^ t-r^r-c-t^r^oococococooocoxooxo^cic^c^icjcncjciciaiooooo '^iOCOt-OCC^Or-((NrO'^iOOl~-OOCiO'-HO}rOT}l-OOCTsO'-'C<>CO ,— (,-ti— li— li— li— ti— ii— It— ii— iC^O)0)0CO ,_,^Hi— It-Hi— li— It— (rHrHi—l(NCNC^C^C<(}(>>POrO oooo50>-iG<>roTt*iooog50'-i(N (»(X)00oocKooooooc50iOic:>05a5a505a5a)OOOOOOoooorHr-H^ ,_^,_(rHi— li— (i-Hi— (i-Hi— ii— ii-Hi— ii— ii— li— (1— II— ti— 'CNG<(G^(N(NC<(CNC<>0OOCT:0'-iC<»rO'<:J00050'-ifNirO'^^^t— OOOiOrH i-lC<>COTl-OOCiO'-iCt^t-l>t~l>t^^-oooooooooooocoooooooo5 .-(C^COTjCO-^vOCOt^00050>-lCOCOT}*xOCDt^OOC^Or-(C^CO"«+iOC01~-0005 ,_(,_(,_,,— ii—ii— (I— It— ii—l!—iG<(C<)(N(C^CMC Jan. Feb. March. April. May. June. July. August. Sept. Oct. Nov. Dec. 365 31 59 90 120 151 181 212 243 273 304 334 i February 334 365 28 59 89 120 150 181 212 242 273 303 • March . 306 337 365 31 61 92 122 153 184 214 245 275 1 April . . 275 306 334 365 30 61 91 122 153 183 214 244 May . . 245 276 304 335 365 31 61 92 123 153 184 214 June . . 214 245 273 304 334 365 30 61 92 122 153 183 ! July . . 184 215 243 274 304 335 365 31 62 92 123 153 August . 153 184 212 243 273 304 334 365 31 61 92 122 Septembei • 122 153 181 212 242 273 303 334 365 30 61 91 October , 92 123 151 182 212 243 273 304 335 365 31 61 November 61 92 120 151 181 212 242 273 304 334 365 30 December 31 62 90 121 151 182 212 243 274 304 335 365 ■ This table will be found very convenient for ascertaining the number of days between any two dates not more than a year distant ; also for ascertaining with accuracy and de spatch the time when notes, drafts, &c., fall due. Each of the numbers in the table shows the length of time (in days) from any day of the month standing opposite to it on the left, to the corresponding day of that moD*h which is over it. Examples. What is the number of days from March 15th to Nov. 15th.'' Opposite March, and under Nov., we find 245, the number required. What is the length of time from May 4th to August 16th.'' Opposite May and under August is the number 92, showing the days from May 4th to August 4th. To August 16th it is 12 days more, which, added to 92, give 104, the answer. How many days from December 25th to June 12th .'' Opposite December and under June is 182, the number of days from December 25th to June 25th ; but to June 12th is 13 days less, which, deducted from 182, gives 169, the answer. If a note be drawn July 14th, at 90 days, when will it fall due, grace included .' In the line of figures opposite July, seek that number which is nearest in amount to the number of days for which the note is drawn. This is found to be 92, which stands under October, showing that 92 days, from July 14th, brings the time to October 14th, to which add one day, (the excess of 93 over 92,) and you have October 15th, answer. Note (referred to on page 307). — The sovereign contains 123.274 grs. of standard gold (l^ths fine), or 113.001 grs. of pure gold : hence, the English mint price for standard gold is £3 17s. lO^d., or for pure gold £4: 4s. 11.45+d,, per ounce. The eagle, or $10 gold coin of the United States, contains 258 grs. of standard gold (^^jths fine), or 232.2 grs. of pure gold: hence, the U. S, mint price for standard gold is $18.6044-, or for pure gold $20,671+, per ounce. And hence £4 4s. 11.45+d. : £1 : : $20,671+ : $4.866|+, the U. S. mint valuation of the British sove- reign, when perfect. 314 2- //^m^ // / / iTssr TTY 01 VI ^F 14 DAY USE EGES, RETURN TO DESK FROM WHICH BORROWED LOAN DEPT. This book is due on the last date stamped below, or on the date to which renewed. Renewed books are subjert to immediate recall. 8Nov'60aiVl RFC/L OCT 2C ^ 9 60 THOMAS'S FII- LYND'S CLASS OSWALD'S ET- The aboTe-named se and the whole or a pai Private Schools in othi_ CLEVELANE CLEVELAND These two volumes ~" Belectiona from their w century; the second c autliors. The '•Comp<_ Union ; the second vol CLEVELAND HARRISON C- LANGUAOK. This wo to the subject. FISKE'S ESC; A text-book in llarvai &c. &c. Colleges. FISKE'S CLA designed espeoiftllyforQCn Tt O'CQ O DM Konian Mytholupy andJI ar ^ \J OJ ~i^ T ITl SUPPLEMENT cal Literature, but not MAP OF THE - the treatise on Classic! believed to conform to brown and black.) presi- OUTLINES 01 Jerusalem. A class-boc rec ' d ci r c. mar 7 — m socves lECISION IN THE USE - LANGUAGE. 'ublic Schools of Philadelp jnd extensively in Public -CENTURY. •onologically arrarused : ch lors from the 14th to the ] e present century, and \b "iss Seminaries throughout idatiou and favor of teachc i'/t'/ "RE OF THE ENGLI! 3 given much patient resei REC^D LP i50cf64W i. Eleventh thousai ^rtmouth, Amherst, Bowd 5f Classical Literatu -Tonology, and on Qrecian the Manual of Clas REC'U LD jT adapted to illustri )iled with great care, am 1 in four colours, (red, h Price, $6 per copy. the Destruction ~4 m Vogdes and Sam OCT 2 4 '64 -3 PM MAR 2 5 1983 LD 21A-50m-4,'60 (A9562sl0)476B Geaeral Library Univertity of California Berkeley TO Ditto. Used BY SINGLE A] jOOK-KEEPING 1 ~ro Ditto. Blank Books OOK-KEEPING ] JDENTS AND PRACTIC THE UNITED AIsop. In press. RING'S THRI" the Public Schools of Bn CRITTENDEN. DOUBLE ENTRY: DEI CRITTENDEN SINGLE AND DOUBLL. DlTTO. CRITTENDEN' STNOLE AND DOUBLI accountants. Key .„ ^..,„. a,i..-.i,«. a.vuo.3 rmi L'lnu. The merits of the above series of practical treatises on Book-keeping have been fully tested in schools of the several grades which the different volumes are designed ; and a large and steadily increasing sale, in every quarter of the Union, forcibly presses the favorable opinion of them formed after using them. ALSOP'S FIRST LESSONS IN ALGEBRA. Key to Ditto. ALSOP'S ALGEBRA; for High Schools, Academies and Colleges. Key to Ditto. These works by Mr. Alsop are used in the Public High, Normal and Grammar Schools of Philadelphia, and extensively elsewh« In thorn the principles of the science will be found lucidly and concisely presented, and illustrated by copious examples well adap to infix these principles in the pupil's mind. The publishers believe them worthy the examination of teachers who desire strengthen and discipline the minds of their pupils by means of mathematical studies. VOGDES'S MENSURATION AND PRACTICAL GEOMETRY. Key to Ditto. A text-bo in the Public High and Grammar Schools of Philadelphia. MONGE'S STATICS. Translated from the French, by Woods Baker, A. M., of U. S. Coa Survev. A text-book at Princeton College, ■ writings for children being exti'emely popular lEALE'S GRAPHICS. In this lluctory to Writing and to all the Arts, use&' and Normal Schools, in Girard College,-' I'Schools of Baltimore, Ac. fcc. -^ )NTROLLERS' COPY S^ Bg, as contrasted with the Carst^r | \ 1 hand, and Introduction to H^ I alphabet. These sets or aK I they are used in the Pubjr Iarding's ALF' Print; together r delphia, &C. y IN FRENCH. By Berquin. M. Berquin T f Mr. S.G.Goodrich or Mr. Jacob Abbott in our own coun is reduced to its most simple principles, as is us«l as a book of isitruction in the Philadelphia Public I'rotustant Kpiia-opnl Chur;;!:, Philadelphia, in the l*ublic ps are of the old fashioned round style of consists of four sets, viz.. Large Text hand, Text hand 25 slips, or sentences, commencing with different letti rs pasted on separate slips' of binder's boai-d. In this latter I German Text, Old English, Plain and Orna Used as a book of instruction in the Public Iligh School of THE PAINTING dies beautifully colored. OF FLOWERS AND FRUII 3io -10 of MoniJ and Sacred Sonu xIOOLS. A collection of the choicest sacred lyrics of our .e additional, for special occasions: «ach hyma being. prefiiced by an appropriate and popular tunes are appendeJ/ jIREL. a New System of Musical Notation, Avith a choice col- Designed for Juvenile Singing Schools. IKIN'S CHRISTIAN MINSTREL. A New System of Musical Notation, with a collection ;ilm Tunes, Anthems and Chants. '. above-named works of Mr. Aikin have had a large sale, which is steadily increasing, showing that bis system meets with (he 'val of those who have tried it. BOOKS FOR SCHOOL LIBRARIES AND POPULAR USE. WORKS OF THOMAS DICK, LL.D., in 10 duodecimo volumes, illustrated by wood-cuts nting more than 500 different objects, and embellished by a portrait of the Author, from an engraving on steel. The woiks id are as follows : — . 1.— THE PHILOSOPHY OF A FUTURE STATE. . 2.— THE CHRISTIAN PHILOSOPHER; or, The Connection of Science and Philosophy ligion. FroEt the eighth London edition ; revised, corrected and greatly enlarged. 3.— THE PHILOSOPHY OF RELIGION ; or, An Illustration of the Moral Laws of the . 4.— ON THE IMPROVEMENT OF SOCIETY BY THE DIFFUSION OF KNOWLEDGE , Illustration of the Advantages which would result from a more general Dissemination of Kational and Scientific Informa- ong all ranks. . 5.— ON THE MENTAL ILLUMINATION AND iVIORAL IMPROVEMENT OF MAN or. An Inquiry into the Means by which a General Diffusion of Knowledge and Moral Principle may be Promoted. . 6.— AN ESSAY ON THE SIN AND THE EVILS OF COVETOUSNESS, and the Happy ts which would Flow from a Spirit of Christian Beneficence. Illustrated by a variety of facts, selected from sacred and civil i'y, and other documents. ol. 7.— CELESTIAL SCENERY; or, The Wonders of the Planetary System Displayed, Illus the Perfections of Deity and a Plurality of Worlds. bl. 8.— THE SIDEREAL HEAVENS; and other subjects connected with Astronomy, as Illus e of the Character of the Deity and of an Infinity of Worlds. ol. 9.— THE PRACTICAL ASTRONOMER, comprising Illustrations of Light and Colors , I ioal descriptions of all kinds of Telescopes ; the use of Astronomical Instruments ; and other topics connected with Astronomy ol. 10.— ON THE SOLAR SYSTEM; AND ON THE ATMOSPHERE AND ATMOSPHE \Li PHENOMENA: the two works in one volume. 10 vast fund of useful knowledge contained in the writings of Dr. Dick, together with the high-toned morality and religicus nu; perviidiug them all, justly entitle them to a place in every School and Family Library: for which purpose, the conveniint ".' ^^^. joli'mes, and the legible character of the type of this edition, render it peculiarly well fitted. lis edition is published on two different qualities of paper, and in various styles of binding, to suit the taste and means of •hasere. 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