-A. .^, ^•j-i . >.c-k!Li____ 1 \ _J:* . -4t'i Digitized by the Internet Archive in 2007 with funding from Microsoft Corporation http://www.archive.org/details/concisetreatiseoOOfostrich CONCISE TREATISE COMMERCIAL BOOK-KEEPING, ELUCIDATING THE PRINCIPLES AND PRACTICE OF DOUBLE ENTRY AND THE MODERN METHODS OF ARRANGING MERCHANTS' ACCOUNTS. BY B. F. FOSTER •I Book-keeping Is an art which no condition of life can render useless, which must contribute to the advancement of all who buy or sell— of all who wish to keep or improve their possessions — of all who desire to be rich, and all who deaire to be wise. Let no man enter into business while he is ignorant of the method of regulating books.— Z>r. Johtuon. SECOND EDITION. BOSTON: PUBLISHED BY PERKINS &, MARVIN PHILADELPHIA: HENRY PERKINS. 1837. Entered according to Act of Congress, in the year 1836, By Perkins & Marvin, In the Clerk's Office of the District Court of the District of Massachusetts. PREFACE. *' There is no man," says Dr. Johnson, " who is not in some degree a merchant — who has not something to buy or something to sell, and who does not therefore want such instruction as may teach him to pre- serve his affairs from inextricable confusion." Every individual must keep accounts in some manner ; and in a country like ours, where men of speculation and enterprise often raise themselves from comparative indigence to affluence and wealth, a knowledge of Book-keeping is an object of the first importance to the rising generation as well as to the majority of adults. As a general study, this art is too much neglected. It is singular how little care is taken, even among merchants, to come at the right methods of prac- tising it, and how few bestow any thing like that attention which it intrinsically merits. In Holland it has become a proverb, that the man who fails in business did not understand accounts ; and, in fact, nine cases of insolvency out of ten arise from want of method in keeping books. The utility of Book-keeping is therefore too obvious to be insisted upon. The losses and embarrassments occasioned by its neglect, terminate so often in ruin, that it is equally the interest and duty of every person to make himself master of the most perfect and efficient system before entering upon the active pursuits of life. To the merchant, a knowl- edge of this art is absolutely indispensable ; and the affairs of the mechanic, the lawyer, and the doctor, as well as the man of leisure, require a systematic, self-verifying record of accounts : — a want of which has ruined thousands of industrious and enterprising men. Independently of its pecuniary advantages, the study of Book-keeping recommends itself as a means of intellectual culture, affording, as it does, an ingenious and beautiful illustration of the harmony of method and the use of numbers. u2mH'77 4 PREFACE. The Italian method of Book-keeping affords, unquestionably, valu- able facilities for regulating and elucidating intricate or complex accounts ; and no person who is ignorant of its principles can be an accomplished book-keeper. The name of its inventor is unknown, but the approbation of competent judges has been bestowed upon his art during four centuries, and unless a more satisfactory method can be devised, it will continue to deserve, as it has uniformly received, the preference of the commercial world. Absolute perfection in accounts has often been arrogated by writers upon this subject ; but perfection never has been and never can be attained. However correct an art may be in theory, its practice is inevitably subject to errors ; and no system liable to intentional neglect or accidental perversion, is secure from the arts of the fraudulent or the evil consequences of carelessness. The fundamental principles of Double Entry are as infallible in their application as their operation is extensive ; in practice, however, they are exposed to all the moral and mental imperfections of the account- ant : — they are neither exempt from the defects of ignorance — the errors of indolence — nor the practices of fraud, — and frequent and careful investigation on the part of the proprietor himself, is scarcely sufficient to render him secure from such evils, where those who are intrusted with the management of his books and accounts, are not entitled to implicit confidence. The equality of debits and credits is the great systematic proof in Book-keeping. This proof, however, is of a negative nature : — icithout it the books cannot be correct ; but with it they may be incorrect. It affords no check whatever on the first or primary entries, nor against those errors which are neutralized by counter-entries so as not to affect the equilibrium of debits and credits. This neutralization of errors, it should be observed, generally originates in design and fraud. The principal cases in which errors can be committed in the secon- dary entries, without- affecting the equality of debits and credits, are as follows : — 1. One Dr. entry may be short-posted, and another over-posted the same amount. 2. One Cr. entry may be short-posted, and another over-posted the same amount. 3. A Dr. and Cr. entry may be equally short-posted. 4. A Dr. and Cr. entry may be equally over-posted. 5. Similar cases may occur in the addition of accounts. 6. Similar cases may occur in the transfer of accounts. 7. Similar cases may occur in the entry and carrying down of haJances. PREFACE. 5 8. Another species of error consists in posting an amount correctly to the debit or credit side, but to a wrong account; — thus $100, which properly belongs to a personal account, may be posted to a nominal, or property account, without the cognizance of the systematic proof The common check against such fraudulent errors is that of calling over, comparing and examining the books, by two persons, neither of whom posted the entries ; and all the additions and transfers must be revised and examined, as well as the general balance itself A book-keeper of practical experience, habitual accuracy, and tried integrity, is, however, of more value than all the forms and checks that can be invented. The object of the present compilation is, to furnish schools and academies with a treatise on Book-keeping, so simple in its illustra- tions, as to be easily understood by those who are unacquainted with the art ; and yet so comprehensive, as to afford all the information requiwite for the practical accountant. How far the author has been successful, is for others to decide. His aim has not been to promul- gate new or fanciful theories ; but rather to select information from the best sources, and to embody the excellencies of the most approved writers upon the subject. The treatise of Morrison, which undoubt- edly possesses great merit, is the basis of the present publication. The author is indebted to the able work*of Cronhelm, for many useful hints and much valuable matter. He has also made free use of the article Book-keeping, in McCulloch's Dictionary of Commerce, — written by one of the official assignees under the new British bankrupt act, — which, says McCulloch, " exhibits a view of the art as actually prac- tised in the most extensive houses in London^ The exemplifications in the following pages are conformable to the system there laid down ; and the rules and directions, it is believed,^ are not only full and ex- plicit, but perspi 14, n 16, When due. Amount. 1 2 3 J. Allen, Chas. Fox, J. Clark, March 10. n 7. „ 5. J. Jones, J. Brown, H.Clay, J. Allen, C. Fox, J. Clark, 90 days sight, 15 // date, 30 days. June 10-13 March 22-25 April 5—8 235 25 145 75 341 25 The Journal Entries for the above Bills are as follows : — Sundries, Dr. to Bills Payable, Accepted this month. James Allen, 12th, No. 1, due June 13, . Charles Fox, 14th, No. 2, due March 25, John Clark, 16th, No. 3, due April 8, . 235 145 341 722 The Invoice Book. — The use of most of the Subsidiary Books, is sufficiently pointed out by their names ; but we shall add a few remarks on Bills of Parcels. In former times, it was the practice to fold them in a uniform size, and after writing on the back the name of the seller, date, &c., to put them away in bundles. But whenever the purchases are extensive, and the Bills of Parcels numerous, the better mode is to paste them into a blank book, made of cartridge-paper, of such a size as to contain the Bills of Parcels for one whole year. This book should have its pages numbered, and an index, with columns for dollars and cents. Arrange the Bills of Parcels as fast as received, one under the other, in regular order, and place the total of each in the money column ruled for that purpose, taking care that each INVOICE BOOK. 61 amount is entered opposite to its respective bill. The following is a specimen : — New York, ;Warc/i 1,1836. Messrs. James Brown & Co. Bought of R. Johnson, 170 00 20 ps. Fine Linen, ^ 4 75, 95 00 15 " do. ^ 5 00, 75 00 170 00 New York, March 4, 1836. Messrs. James Brown & Co. Bought of Robert James. 172 80 2 doz. Youth's Hats, ^ 24 00, 48 00 2 >' Men's do. (a) 60 00, 120 00 4 Cases, and Packing, fa) 1 20, 4 80 172 80 New York, March 15, 1836. Messrs. James Brown & Co. Bought of R. Johnson. 268 75 11 ps. Linen, 25 yds. ea.— 275 yds. to) 75 cts. . 206 25 5 // do. 25 n ea.— 125 " (a) 50 cts. . 62 50 268 75 611 55 The above purchases are Journalized as follows : — March, 1836. Merchandise, Dr. to Sundries, For purchases this month. To R. Johnson, 1st, 35 ps. Linen, 170 00 15th, 16 /' do 268 75 To Robert James, 4th, 4 doz. Hats, assorted, 438 172 611 62 BOOK OF SHIPMENTS, The Book of Shipments. Invoices of Shipments, are accounts of goods exported, with the charges attending them. Some mercantile houses enter the amount of the Shipments in the Day Book ; but the modern practice is to omit these entries in the Day Book, and keeping the Invoice Book Outward as a book of record for the original entries of the Shipments, to Journalize it monthly in the same manner as the Cash or Bill Books. The form of an Invoice of goods shipped to order, is as follows : — Invoice of Goods, shipped hy James Brown ^ Co. in the Venus, John King, Master, for JVew Orleans, by order of R. Johnson, Merchant there, for his account and risk, and to him consigned. New York, March 15, 1836. R. J. No. 1 2 3 48 ps. Cambric Check, 1,344 yds. fa) 40 cts. 537 60 Trunk, and Packing, 5 25 51 n Calico Check, 1,428 yds. (a) 25 cts. 357 00 Trunk, and Packing, 4 75 15 /' Fine Calico, 360 yds. . fa) 40 cts. 144 00 6 r' Cambric Check, 144 yds. fa) 50 cts. 72 00 20 " Muslin Check, 560 yds. fa) 30 cts. 168 00 Trunk, and Packing, 3 50 Charges. Cartage, Shipping charges, &c 4 00 Commission, 2^ r cent on 1,297 35, . . . 32 43 Insurance, 2 r cent on 1,318, and Policy, 1 25, 27 61 Commission, ^ F cent on sum insured, . . 6 59 542 361 387 1,292 70 1,362 The Journal Entries which result from the foregoing Invoice are as follows : — March, 1836. R. Johnson, Dr. to Sundries, 15th, For Goods, ^ the Venus for New Orleans, ^ Invoice Book. To Merchandise, To Commission To Insurance, To Charges, ACCOUNT SALES BOOK. 63 Account Sales Book. — In this book are entered the sales of goods received on consignment, together with the charges incurred upon thera. The forms of making out an Account Sales are various. Some accountants enter the charges on the left hand page, and the quantity, value and price of the goods on the right, in the manner of Dr. and Cr. In this case, the difference between the two sides exhibits the net proceeds. In the following example, we first specify the quantity, price and amount of the goods, and to whom sold ; next the various charges attending the sales, including commission ; — the difference between the gross amount of the sales, 1,312, and the charges, 77 30, is the net proceeds due to the consigner. AccoujsT Saue of ^00 pieces Lanen^ received by the Union from Dublin, on account James Forbes of that place. 1836 Mar. 9 Sold to Barclay & Co. at 4 months, Linen, No. 20 pieces, 30 " 25 >' 17 n 23 n 25 n 60 » 200 pieces. Charges. (a) (a) Co) (a) (a) (a) 5 50 6 62^ 6 00 6 50 6 75 5 50 7 50 Freight, Custom-house Fees, &c 38 50 Cartage and Porterage, 1 25 Storage and Advertising, 4 75 Commission on 1,312, at 2«i r cent, To James Forbes, for net proceeds, 44 50 32 80 New York, March 11, 1836. Errors Excepted, A. B. 110 198 150 110 155 137 450 1,312 77 1,234 00 30 70 Merchants usually subjoin the words ' Errors Excepted,' to their signature, on every account which they subscribe, in order that they may have it in their power afterwards to correct errors, should any be discovered. 64 ACCOUNTS CURRENT. Journal Entries resulting from the Account Sales :- March, 1836. Barclay & Co., Dr. to Sales of Consignments, .2 ! 9th, for amount of Sales 200 ps. Linen, r the Union, for account James Forbes, . . . 1,312 00 Sales of Consignments, Dr. to Sundries. 11th, for proceeds, &c., of T-inen, r the Union. To Consignment Charges, 44 32 1,234 50 80 70 To Commission, To James Forbes, ... for net proceeds, . . . 1,312 00 We have given examples of the Cash Book, Bill Books, Invoice Book, Book of Shipments, and Account Sales Book 5 which form the groundwork or materials for the Journal. The Day Book contains a record of such occasional entries as do not properly belong to the Subsidiary Books. Such entries are in general very few, because in every well-regulated counting-house the Subsidiary Books are used to record almost every transaction that takes place. Accounts Current. — Accounts Current, are rather the result than a constituent part of Book-keeping, being written out from the Ledger and Journal with very slight variation or addition. Accounts Current are prepared for transmission to correspondents, and contain the receipts, payments, and other transactions on their account during the preceding six or twelve months. The follow- ing is an example : — Dr. James Thompson, Esq. JSTew Orleans, in account current with A. B. JVew York, Cr. 1836 June 30 July 14 >t 23 Oct 12 f, 18 Dec. 31 To Balance of account dered, .... To Goods, ^ invoice, To Cash, ^ receipt, . To Goods, ^ invoice, To your draft paid Hill, To Postage, to date, . New York, Dec. 31, 1836. 325 750 325 150 125 1 1,677 54 1836 Aug. 15 Sept. 30 Dec. 31 By net proceeds of Cotton, ^ Cuba, due Sept. 15, . By proceeds of Sugar, ^ Louisa, due Oct. 15, . . By Balance, carried to new account, 875 578 1,677 54 Errors Excepted, A. B. ACCOUNTS CURRENT. 65 We have here on the Dr. side, all the payments made, or responsibilities incurred, for our correspondent; and on the Cr, side, the different receipts on his account. The balance, being the difference between the Dr. and Cr. sides, is carried to the next year. CHAPTER IX q,UERIES AND ANSWERS ON THE PRINCIPLES AND PRACTICE OP BOOK-KEEPING. The following queries and answers are intended to impress upon the mind the chief points in the daily practice of business ; and the learner will derive the greatest advantage from an attentive study of them. What is Book-keeping ? Ans. Book-keeping is the art of recording property, so as to show at all times the value of the whole capital and of each of its component parts. By how many methods may books be kept on distinct prin- ciples ? Ans, The form of keeping books varies according to the nature of the business ; but there are, strictly speaking, only two methods founded upon distinct principles ; namely, Single and Double Entry. What is meant by Single Entry ? Ans. Single Entry chiefly records transactions by simply debiting the person who receives any thing, and crediting the person who gives or delivers any thing. Of course the Ledger affords the owner no other knowledge than the debts which are owing to him and what he owes to others. What is meant by Double Entry ? Ans. When each sum or amount is entered twice in the Ledger ; (hence Double Entry,) namely, on the Dr. side .of one account, and on the Cr. side of some other account or QUERIES AND ANSWERS. 67 accounts. The Ledger exhibits not only the debts due to, or by you, as in Single Entry, but also the amount of cash and bills, the amount of the purchases and sales, the value of the goods on hand, the gain or loss on each article, or on the whole. What information ought a Merchant's books to exhibit'? Ans. The debts owing to and by him ; the goods or other property belonging to him ; the amount sold, or otherwise disposed of; and the quantity and value still on hand. What is the use of the Day Book ? Ans, The Day Book records the sales or disposal of goods ; and every other transaction which cannot be entered with pro- priety, in the Subsidiary Books. How many Subsidiary Books are generally used ? Ans. This depends on the nature of the business; but the most usual are the following : — Cash Book, Bill Book, Invoice Book, Book of Shipments, and Sales Book, What do the Subsidiary Books contain ? Ans. The Cash Book contains all receipts and payments of money ; the Bill Book, all bills received and accepted ; the Invoice Book, all goods purchased; the Book of Shipments, all goods shipped off or exported ; and the Sales Book, the sales of all goods received on consignment. What does the Account Current Book contain ? Ans. It contains duplicates of the accounts as they stand in the Ledger, with the particulars of every item, arranged according to the dates, being an exact copy of the account transmitted or delivered to the party whose name it bears. I. THE LEDGER ACCOUNTS. Wliat is the use of the Ledger ? Ans. The Ledger collects together articles of the same kind, under their respective heads. It is divided into several accounts, the Dr. and Cr. of which are opposite, to show how each account has been affected after these entries have been made. 68 QUERIES AND ANSWERS. What is meant hy the terms Dr. and Cr. ? Ans. These terms are used to denote the increase or decrease of an account. Explain more particularly the terms Dr. and Cr. ? Ans. Any thing on the debtor or left hand page, increases the account, and any thing entered on the creditor or right hand page, diminishes it. How many kinds of accounts does the Ledger contain 1 Ans. Accounts of Persons, Property, and Profit and Loss. What do the accounts of Persons contain ? Ans. On the Dr. side, the sums by which that person has become indebted to you ; and on the Cr. side, the sums by which you have become indebted to him. What do accounts of Property contain ? Ans. On the Dr. side, the property which you receive ; and on the Cr. side, the property which you deliver. What do accounts of Profit and Loss contain^ Ans. On the Dr. side, all your losses ; and on the Cr. side, all your gains. II. JOURNALIZING. What is the use of the Journal ? Ans. The Journal contains an arrangement of the trans- actions, collected monthly from the Subsidiary Books, with the Drs. and Crs. pointed out, that they may be easily posted into the Ledger. What is the general rule for Journalizing'? Ans. Whatever is received, or person accountable to you, is Dr. to whatever is delivered, or person to whom you are ac- countable. 1. How are the following Cash transactions Journalized? When you receive payment of a personal account ? Ans. Cash, Dr. to A. B. (from whom received.) When you pay a personal account^ Ans. A. B., (to whom paid,) Dr. to Cash. QUERIES AND ANSWERS. 69 WTien you receive money not connected with any account^ Ans. If it be a gain arising from the business, I enter Cash, Dr. to Profit and Loss; if it be a legacy, Cash, Dr. to Stock. When you pay money not connected with any account ? Ans. If for incidental expenses, enter Charges, Dr. to Cash; if for personal expenses, Private Account, J)r. to Cash; if for interest, discount allowed, Sic, Interest, Dr. to Cash. How is the Cash Book Journalized monthly'? Ans. For all money received, . . Cash, Dr. to Sundries. For all money ^aic/, . . . Sundries, Dr. ^o CasA. Specifying particulars, and classing anicles of the same kind together. 2. How are the following Bill transactions Journalized ? When you receive a bill in settlement of an account ? Ans. Bills Receivable, Dr. to A. B. (from whom received.) When you give your note, or accept a bill^ Ans. A. B., (to whom granted,) Dr. to Bills Payable. When you receive payment of a note or bill ? Ans. Cash, Dr. to Bills Receivable. When you pay a promissory note bill ? Ans. Bills Payable, Dr. to Cash. When you discount a bill? Ans. Sundries, Dr. to Bills Receivable. Cash, for the sum received. Interest, for the discount. When you endorse or pay away a bill ? Ans. A. B., (to whom endorsed,) Dr. to Bills Receivable. How is the Bill Book Journalized monthly ? Ans. For all bills received, Bills Receivable, Dr. to Sundries. For all bills accepted. Sundries, Dr. to Bills Payable. Specifying name, number, when due, and sum. 3. How are the following transactions Journalized ? When you buy goods for cash? Ans. Merchandise, Dr. to Cash. When you buy goods on credit ? Ans. Merchandise, Dr. to A. B. (the seller.) 70 QUERIES AND ANSWERS. When you purchase goods and give your note or acceptance ? A71S. Merchandise, Dr. to Bills Fayable. When you pay freight, duty, or other charges on goods? Ans, Merchandise, JDr. to Charges, How is the Invoice Book Journalized monthly !■ Ans, By making Merchandise, jDr. to Sundries, viz. — To each seller, . . for his invoices during the month. When you sell goods for cash ? Ans, Cash, Dr. to Merchandise, When you sell goods on credit? Ans. A. B., (the buyer,) Dr. to Merchandise. When you sell goods and receive a note ? Ans. Bills Receivable, Dr. to Merchandise, When you ship goods in consequence of orders ? Ans. A. B., (on whose account,) Dr. to Sundries, viz. — To Merchandise, .... for amount of goods. To Charges, for charges at shipping. To Commission, for commission. To Insurance, for premium and policy. When you ship goods as an Adventure ? Ans. Adventure to , Dr. to Sundries, viz. — To Merchandise, .... for the amount. To Charges, for charges at shipping. To Insurance, * .... for premium and policy. When the Agent renders you an Account Sales 1 Ans. A. B., (the agent,) Dr. to Adventure to for the net proceeds, which if greater than the outset charge, the difference is gain. How is the Account closed? Ans. Adventure to , Dr. to Profit and Loss ; but if there has been a loss, this entry is reversed. When you pay charges on goods consigned ? Ans. Consignment Charges, Dr. to Cash. When you sell these goods ? •^W5. If for cash, . Cash, . Dr.} rr» c 7 r n • * If on credit, . A. B.^ . Dr. [ ^^ *"'^ "f Conngnments. QUERIES AND ANSWERS. 71 When you take any of these goods to account? Ans, Merchandise, Dr, to Sales of Consignments. When the Sales are closed, what is the Journal entry ? jlns. Sales of Consignments, Dr, to Sundries. To Insurance, .... for premium and policy. To Consignment Charges, for duty, freight, &c. To Commission, .... on insurance and sales. To A. B., (the Consigner,) for net proceeds. 4. How are the following transactions in Bankruptcy stated } When the failure is a total loss ? Ans. Profit and Loss, Dr. to A. B. the Bankrupt, for the amount of my claim. When a partial loss is sustained ? Ans. Profit and Loss, Dr. to A. B., for the sum lost by his failure. in. POSTING AND COMPARING THE BOOKS. What is meant by Posting 1 Ans. Posting is the transferring the Journal entries into the Ledger, in order to show the state of each account. What is the general rule for posting '^ Ans. Debit the account that is Dr. to the title of that which is Cr., and credit the account that is Cr. to the title by that which is Dr. When an entry is posted, what do you do next ? Ans. Mark on the marginal column of the Journal the folio of the Ledger where the entry is made, and in the Ledger the page of the Journal. What is meant by comparing the Books ? Ans. Examining every entry before it is Journalized or Posted ; because a mistake in any of the Subsidiary Books must necessarily run through the Journal and Ledger. How is this accomplished 9 Ans. After Journalizing the Subsidiary Books, the Journal must be carefully compared with each book before posting the entries into the Ledger. 72 QUERIES AND ANSWERS. What is the best plan to compare the Journal and Ledger ? Ans. By two persons : one has the Journal and reads the Ledger folio, the title of the account, and the Drs. and Crs,, while the other turns to the account in the Ledger, and marks off the entry with a dot, (or \/j) if correct. The dots in the Journal show how far the comparison is advanced, and the marks in the Ledger show what entries are compared. How is it known when the comparison is finished^ Ans. By glancing over the Ledger and observing if the mark of comparison be affixed to each entry ; if not, turn to the entry in the Journal which had not been marked, and observe if it be right. What is the best plan to rectify omissions ? Ans. By inserting the entry omitted under the last article, when you discover the omission, and making a cross thus + against it on the margin, and another at the place where it should have been. If you have written a line entirely wrongs or in a wrong place, how do you proceed ? Ans. Write the word error at the end, prefix a cross, and omit or cancel the sum. How should errors be cancelled ? Ans. By drawing a line lightly through them, so that the old writing may still be legible ; by which, it will be evident that the book has not been vitiated for a fraudulent purpose ; and the same method should be followed in correcting errors in the Journal. IV. BALANCING THE LEDGER. What is meant by Balancing ? Ans. It is the equilibrating of, or making equal, all the accounts. What is the design of balancing the books ? Ans. To collect the various branches of business diffused through the Ledger, into a concise abstract of the debts owing to and by you ; the property you have on hand, together with the gain you have made or the loss sustained since you began busi- ness, or since a former balance. QUERIES AND ANSWERS. 7.3 What is meant by the Balance of an account ? Ans. Generally the difference between the Dr. and Cr. sides, which must be the sum either due to or by you at that account. How are accounts of persons balanced ? Ans, If the TJr. side be greater, credit the account By Balance for the difference ; being a debt owing to you. If the Cr. side be greater, debit it To Balance for the difference ; being a debt due by you ; carrying down the balance on the opposite side of the account, which is done in the same manner with every one that has a balance, whether accounts of persons or property. How is the Cash Account balanced ? Ans. Credit it By Balance for the difference; being the cash in hand. How is Bills Receivable balanced 9 Ans. Credit it By Balance for the difference ; being the bills in hand. Hoiv is Bills Payable balanced ? Ans. Debit it To Balance for the difference ; being the bills owing by you. Hoio is Merchandise balanced when the ivhole is on hand ? Ans. Credit it By Balance for the amount. How is Merchandise balanced when the whole is sold'^ Ans. If the Cr. side be greater, the difference is gain, which is closed by entering on the Dr. side of Merchandise, To Profit and Loss. If the Dr. side be greater, the difference is loss, and is therefore entered on the Cr. side of the same account, By Profit and Loss; transferring the sum to the proper side of Profit and Loss Account. How is an account of Merchandise balanced when only a part is sold ? Ans. Credit it By Balance for the value on hand ; then the difference of the two sides will exhibit the gain or loss ; and the account is finally closed to or by Profit and Loss, as the case may be, transferring the amount to the proper side of the latter account. How are Adventures balanced ? Ans. In a similar manner as the preceding accounts of Mer- chandise. 10 74 QUERIES AND ANSWERS. How are the accounts of Ships, Houses, Lands, or the like, balanced when the property is sold ? .^715. The interest is calculated and placed on the Dr. side of the property ; the difference then is profit or loss ; and the account is closed accordingly. How are such accounts balanced when the property is on hand ? Ans. By calculating the interest, and placing it as before ; and crediting the property By Balance for the present value ; the difference is profit or loss, which is entered as before. How is the account of Insurance balanced^ Ans. Credit it By Balance for the difference (if any), being the premiums still due to you. How is the Private Account closed !■ * Ans, By Stock ; and transfer the amount. How are the accounts of Charges, Interest, and Commission closed ? Ans. To or By Profit and Loss, as the differences happen either to be in favor of, or against you. How is Profit and Loss Account closed^ Ans. By transferring the result, if gain, to the Cr. side ; but if loss, to the Dr. side, of Stock. How is the Stock Account closed !■ Ans. To Balance for net Capital, or By Balance for net de- ficiency. V. GENERAL EXTRACT AND PROOF. How is a statement of your affairs made out ? Ans. By collecting all the balances of the accounts in the Ledger, being my debts and effects, and arranging them in the form of Dr. and Cr. * Some accountants transfer the amount of private account, or house expenses, to Profit aiid Loss ; but this is manifestly improper. A merchant's real gain may be $3,000 a year; if he expends $2,500 for his personal expenses, and the support of his family, and if this sum were placed at the debit of profit and loss, his books would only exhibit a gain of $500 ! QUERIES AND ANSWERS. 7l5 Explain particularly how the Balance Account is to be arranged ? Ans. A sheet of paper is ruled in the form of Dr. and Cr. with money columns, and headed as follows : Dr. . . . Balance . . . Cr» On the Dr. side place the balances due or belonging to you ; and on the Cr. side the balances due hy you ; the difference will then exhibit your net Capital or deficiency, which must always agree with the Balance of Stock Account. Why ought the difference of the Stock Account to agree with that of Balance Account at the closing of the Ledger^ Ans. The balance of the Stock Account shows the net Capital, and the other balances show its component parts. If therefore an extract be made of the latter, their sum must be equal to the balance of Stock ; in which equality consists the great proof of Book-keeping. VI. MERCHANTS' ACCOUJNTTS. What is an Account Sales ? Ans. It is an account of goods sold on commission, drawn out by the agent and sent to his employer, who made the con- signment. What is meant hy the JVet Proceeds ? Ans. The sum that remains after all charges attending the sales have been deducted, and which is due to the person from whom you received the consignment. What is meant hy an Account Current ? Ans. An Account Current is a state of our mercantile transac- tions with any person, drawn out in a plain, circumstantial manner, arranged in the form of Dr. and Cr. Does it require a knowledge of Book-keeping to understand the nature of an Account Current ? Ans. Yes : because the transactions are narrated as expressed in the Journal ; and where the collective term Sundries occurs in the Ledger, every particular is supplied. 76 QUERIES AND ANSWERS. VII. PARTNERSHIP OR COMPANY ACCOUNTS. We conclude these queries by proposing the following in com- pany trade. What is Partnership ? Ans, Partnership is a contract entered into by two or more persons to cany on a certain trade or business, for which they agree to join either their money, labor, or skill, or all of them, and to divide the gain or sustain the loss in proportion to the terms of copartnership. How should the hooks of a copartnership be kept 9 Ans. As if they belonged to one person only ; but the plural number should be used, ive, us, and ours, instead of /, me, mine, and the like. When the capital to he employed in the concern is fixed upon, how should it he entered ? Ans. Sundries, Dr. to Stock (in Co.) ; each partner for his share or proportion. When these shares are paid in ? Ans. Cash, or the article. Dr. to Sundries; to each partner for the amount of his share. Is one account in general sufficient for each partner? Ans. Yes : and it should be kept in the same manner as that of any neutral person. What should the partner^s accounts exhihit 9 Ans. They should exhibit only the money paid, or any other articles taken from the concern for private use, together with the interest on their respective shares. How are the partner^s accounts closed ? Ans. The balance is carried forward like any other personal account, until the profits be divided, or an alteration in the shares takes place, or the term of the copartnership expires ; previous to any of which, these accounts must be closed. QUERIES AND ANSWERS. 77 When the profits are to be divided among the partners ? Ans. Enter Profit and Loss, Dr. to each partner, for his individual share. When the profits are to be applied to increase the stock ? Ans. Profit and Loss, Dr. to Stock (in Co). If there has been a loss on the business? Ans. The above entries are reversed. Wlien an alteration in the shares takes place ? Ans. The books must be previously balanced and the partner's accounts closed. What is the stock to be considered? Ans. Stock in Co. is to be considered as a joint account, to be divided at such periods and in such proportions as are directed by the articles of copartnership. What should the Stock Account exhibit ? Ans. Stock Account should always include the anaount or value of the company's effects, both real and personal. CHAPTER X TRANSACTIONS IN TRADE JOURNAL ENTRIES LEDGER. For the purpose of more clearly exemplifying the nature of the Journal, and the relation between the terms Dr. and Cr., we have given in the present chapter a series of mercantile trans- actions, arranged in the order of their respective dates, on the left hand page ; and on the right hand page, immediately opposite, each transaction is entered singly, in the Journal form. In teaching the science of Book-keeping, the principal difficulty with the learner is to obtain clear and comprehensive ideas of Dr. and Cr., and of the various applications of these terms in the Ledger. It must be clearly borne in mind that the Journal is simply a preparatory book ; the main design of which is to facilitate the posting and balancing of the Ledger. All who have given attention to any particular art or science, are aware that there are certain elementary principles, the knowledge of which must be thoroughly acquired, before a pro- ficiency can be attained ; and unless this be done, the acquirement must necessarily be superficial and imperfect. This remark is applicable not only to the study of Book-keeping, but to the whole circle of the sciences. It is indispensably necessary that the abstract principle of Double Entry should be clearly understood before the learner is embarrassed with the forms and details of the Subsidiary Books, or with Monthly Journalizing. Experience has abundantly proved that the arrangement here adopted is highly conducive to the student's progress, and has the effect of rendering plain and simple that which would otherwise be con- fused and complicated. REMARKS ON TEACHING. 79 We have endeavored so to simplify the subject, that instructors who have not previously given their attention to this important branch of education, may be enabled to teach their pupils the rationale of the science, and to lead them step by step to a perfect understanding of the principles and practice of Book-keeping. Rules should never usurp the place of reasons, and particular forms should not be confounded with general principles. The following exercises, introdvciory to Sets I. and II., are intended to initiate the learner into the process of Journalizing. The transactions are mostly of a simple nature, which, with the assistance of the rules in Chapter V., it is presumed will be readily comprehended by the merest tyro. In these preliminary exercises each transaction is journalized singly ; as affording the most obvious and simple illustration of the nature and application of Dr. and Cr. But this method, however excellent as an initiatory process, is by no means recommended in real business; inasmuch, as instead of one entry monthly being sufficient at each account^ forty or fifty might be necessary ; and, to say nothing of the labor and loss of time in so doing, the liability to errors is always in proportion to the number of entries, and vice versa. If a hundred sums are transferred to the Ledger when one would answer, then a hundred chances of error are incurred where only one was necessary ; and, in the event of any error, a hundred entries must be examined instead of one ! See remarks, page 41. It may facilitate the process of Journalizing to state that in every account there must be a Dr. and Cr. side ; and although the word Cr. is never expressed in the Journal, it is always understood to follow the word To. Thus, if the Journal entry is " Cash, Dr. to Merchandise,'''' the meaning is that Cash Account in the Ledger is to be debited for the sum ; and Mer- chandise Account is to be credited for the like sum. The creditor may be also known by reversing the statement ; for if Cash he Dr. to Merchandise, then is Merchandise Cr. by Cash. By Debiting, is meant any sum entered on the Dr. or left hand side of the Ledger ; and, — By Crediting, is meant any sum entered on the Cr. or right hand side of the Ledger. 80 TRANSACTIONS IN TRADE. New York, January 1, 1836. Cash in hand on commencing business this day, which constitutes my net capital, Paid for Store fixtures, Stationary, Blank Books, &c. F Petty Cash Book, Bought of Charles Hammond, Goods, F Invoice, amounting to Sold James Bruce & Co. 15 pieces Broadcloth, amounting to Paid Cash for Sundry Goods bought at auction this day, ^ Bill Parcels, Bought of Hone & Co. a quantity of Goods, for which I have given them my acceptance, payable m 30 days, 12 Paid Cash for Advertising, Postages, &c. r Petty Cash Book, 15 Sold James Hill, as r Sales Book, sundry Goods ; and received in settlement his note, at 90 days, for the amount, 18 Sold for Cash, a quantity of Goods, as r Sales Book, 19 Accepted Charles Hammond's draft in favor of Smith & Co. payable 90 days from date, 15,000 325 8,151 957 2,125 857 25 785 280 4,000 00 38 25 12 75 75 18 50 31 00 JOURNAL ENTRIES. 81 New York, January, 1836. 1 1 1 Cash, />r. to Stock, 2 1 1st, for Capital in trade, 15,000 00 Charges, Dr. to Cash, i 1 2 3 2d, for Store fixtures, &c 325 38 Merchandise, Dr, to Charles Hammond, 3 9, 4tb, purchased of him, 8,151 25 James Bruce & Co., Dr. to Merchandise, 2 1 6th, for 15 ps. Broad-cloth, ^ B. P 957 12 Merchandise, Dr. to Cash, 2 2 7th, bought at auction for cash, 2,125 75 Merchandise, Dr. to Bills Payable, 2 1 9th, for my acceptance to Hone & Co 857 75 Charges, Dr. to Cash, 1 2 2 12th, for advertising, postages, &c 25 18 Bills Receivable, Dr. to Merchandise, 1 2 15th, for James Hill's note at 90 days ; in full for ffoods sold him, 785 50 Cash, Dr. to Merchandise, 3 9! 18th, for cash sales this day, 280 31 1 Charles Hammond, Dr. to Bills Payable, 19th, accepted his draft at 90 days, 4,000 00 11 82 TRANSACTIONS IN TRADE. New York, Januai'y 25, 1S36. I have drawn on J. Bruce & Co. at 10 days' sight, for the amount due by them, agreeably to then- request, . . . 28 Sold James Brown & Son a quantity of Goods, and re- ceived in payment as follows, viz. their Note, at 90 days, .for .... 600 00 Cash, for the balance, 600 00 29 Paid Charles Hammond, ^ receipt. Cash, in full, Sold James Bruce & Co. 30 Paid for Advertising, Postages, &c. this month, as ^ Petty Cash Book, February 1, 1836. Bought of Charles Hammond, Goods, as F Bill Parcels, Sold Goods this day to the following persons, as ^ Sales Book, viz. to — James Peters, . . . amounting to Rufus Dean, .... " Henry Pope, ... " Received in Cash the amount of my draft on Bruce & Co. rc. B 957 12 1,200 4,151 00 25 75 15 583 78 40 350 575 829 1,755 957 12 JOURNAL ENTRIES. Neavt York, January, 1836. Bills Receivable, Dr. to J. Bruce &f Co. 25th, for my draft on them, at 10 days. Sundries, Dr. to Merchandise, 28th, sold J. Brown & Son, ^ S. B. Bills Receivable, . . . . ^ B. B. . . Cash, r C. B. . . Charles Hammond, Dr. to Cash, 29th, paid him in full, James Bruce & Co. Dr. to Merchandise, 30th, sold him, as ^ Sales Book, . • . Charges, Dr. to Cash, 30th, paid for Postages, &c February, 1836. Merchandise, Dr. to C. Hammond, 1st, purchased of him this day, . . Sundries, Dr. to Merchandise, 4th, for Sales this day as follows : — James Peters, . . . . ^ B. P. . . . Rufus Dean, .... » ... Henry Pope, .... " ... Cash, Dr. to Bills Receivable, 6th, for Bruce & Co.'s acceptance. 83 957 600 600 1,200 4,151 15 12 25 75 78 583 350 575 1,755 957 40 22 88 75 85 12 84 TRANSACTIONS IN TRADE. New York, February 8, 1836. Received the following Notes, payable 30 days from the 4th iiist. viz. — James Peters', . . . ^ Bill Book, Rufus Dean's, ... it Henry Pope's, ... // 10 Bought Goods for exportation of the following persons, as ^ Invoices, viz. of Charles Hammond, . . . ^ Invoice, .... Buchanan & Co " .... James Finlay & Co. ... // .... 350 575 829 1,755 387 78 51 517 11 Paid for Postage, Cartage, &c. F Petty Cash Book, 25 15 Discounted at the Globe Bank, Henry Pope's note, due March 8. Cash received, 826 20 Paid discount, 3 55 829 75 Endorsed to Charles Hammond, J. Hill's note, due April 15, 785 50 Paid my note in favor of Hone & Co. as ^ Cash Book, 857 75 25 Bought of Simpson & Co. sundry Goods, as F Invoice; and gave them in settlement, — My Note, . . at 60 days, for .... 1,000 00 Cash, ... for the balance, . . . 800 00 1,800 00 JOURNAL ENTRIES. 85 New York, February^ 1836. Bills Receivable, Dr. to Sundries, 8th, for Bills received this day, ^ B. B. To James Peters, To Rufus Dean, To Henry Pope, . 350 22 575 88 829 75 ,755 85 Merchandise, Dr. to Sundries , lOth, for purchases this day. 3 To Charles Hammond, 4 To Buchanan & Co. . 4 To James Finlay & Co. 387 97 78 25 5175 517 97 Charges, Dr. to Cash, 11th, for Postage, &c. 25 Sundries, Dr. to Bills Receivable, 15th, for Henry Pope's note, discounted. Cash, .... net amount received. Profit & Loss, . for the discount, . . 826 3 829 Charles Hammond, Dr. to Bills Receivable, 15th, for J. Hill's note, endorsed to the former. 785 50 Bills Payable, Dr. to Cash, 15th, paid my note to Hone & Co. Merchandise, Dr. to Sundries, 25th, purchased this day. To Bills Payable, To Cash, . . . for my note, (a) 60 days, for balance, .... 857 75 1,000 00 800 00 1,800 00 86 TRANSACTIONS IN TRADE. New York, February 28, 1836. Sold James Bruce & Co. Sundry Goods, ^ Sales Book, Paid charges on shipments, &c. as f' Petty Cash Book, March 1, 1836. Effected an Insurance with the Globe Insurance Company, on Goods shipped ^ Jane, for New Orleans, and gave my note for amount of Premium and Policy, .... Shipped ^ the Jane for New Orleans, on account and risk of J. Dana & Co. there, as w Invoice Book Outward, — Sundry Goods, . . . amounting to Charges, at shipping, Insurance, as above, Commission, .... on Insurance, .... 2 Insured with the Hope Insurance Company on account of George Smith, New Orleans, 3,240 00 on 15 Hhds. Sugar, and 20 Bales Cotton, consigned to me for sale and returns, ^ the Ann. Paid Premium and Policy in cash, 77 28 Commission on amount Insured, 16 20 3 Received James Bruce & Co.'s acceptance, payable in 30 days, for 4 Paid charges on Produce consigned w the Ann, as f- Cash Book, 5 ~ Sold James Peters, (at 1 month,) 20 Bales Cotton, r Ann, F Sales Book, 1,579 23 58 97 27 14 975 31 27 5 84 42 14 52 92 93 220 896 48 75 27 75 JOURNAL ENTRIES. 87 New York, February, 1836. 4 3 2 2 1 5 2 4 2 2 5 5 4 1 5 2 ~3~ 5 1 3 5 James Bruce &, Co. Dr. to Merchandise^ 28th, as ^ Sales Book, 1 1,579 23 97 14 t Charges, Dr. to Cash, 58 March, 1836. Insurance, Dr. to Bills Payable, 1st, for my Note to Globe Insurance Company, . 27 J. Dana & Co. Dr. to Sundries, 1st, for Invoice ^ Jane, for New Orleans. To Merchandise, , 975184 To Charo'es, 31 4Q To Insurance, 27 5 14 52 92 To Commission, .•..........•• 1 1 1,039 George Smith, Dr. to Sundries, 2d, for Insurance on Produce, ^ Ann. To Cash, . . . paid Premium and Policy, . . . To Commission, . on amount insured, 77 16 28 20 93 48 75 Bills Receivable, Dr. to James Bruce ^ Co. 3d, for their acceptance, at 30 days, 989 Consignment Charges, Dr. to Cash, 4th, paid on produce, r Ann, 220 27 James Peters, Dr. to Sales of Consignments, 5th, for 20 Bales Cotton, ^ the Ann, 896 75 88 TRANSACTIONS IN TRADE. 5 New York, March 7, 1836. Paid Buchanan & Co. Cash in full, as W Cash Book, 8 Allowed to James Bruce & Co. a discount of 2 ^ cent on 1,579 00 for Goods damaged, 12 Rendered an Account Sales of George Smith's 20 Bales Cotton, W the Ann, as F S. B., and Charged, .... for freight and other expenses, . . . Commission, . . on sales, George Smith, . . net proceeds, 15 I have drawn on J. Dana & Co. for the amount of shipment made to them, at 90 days, in favor of Holmes & Son, in conformity to J. D. & Co.'s letter of advice, . . . 17 Effected with the Globe Insurance Company, an insurance on 2,800 00 on Goods ^ the Nero, for Jamaica. Paid Premium and Policy in cash, 18 Paid sundry charges on shipments, &c. as W Cash Book, 19 Shipped F the Nero for Jamaica, on account of George Smith, New Orleans, and consigned by his order to William James, there, as F Book of Shipments, — Sundry Goods, . . amounting to Charges, .... at shipping, Insurance, .... on 2,800 00, Commission, ... on Goods, Charges, and Insurance, . 21 Sold Buchanan & Co. (at 2 months,) 15 Hhds. Sugar, consigned r Ann, as r S. B 78 31 85 35 775 896 1,039 61 85 2,550 75 61 72 2,759 3,360 25 58 92 34 39 25 JOURNAL ENTRIES. 89 New York, March, 1836. 5 4 1 Buchanan & Co. Dr. to Cash, 1 8 7th, paid them m full, , i . 78 25 Profit & Loss, Dr. to James Bruce ^ Co, 5 8th, for discount allowed them, 31 58 Sales of Consignments, Dr. to SundrieSj 12th, for proceeds, &c. of 20 bales Cotton, ^ Ann, as ^ Sales Book. 5 5 4 2 4 To Consignment Charges, . . freight, &c. , , . To Commission, ..... on sales, To George Smith, net proceeds, . , , 85 35 775 30 87 58 896 75 Bills Receivable, Dr. to J. Dana Sf Co, 5 1 15th, for amount of my draft on them in favor of Holmes & Son, 1,039 92 Insurance, Dr. to Cash, 2 1 17th, paid Premium and Policy, on Goods ^ the Nero, 61 34 Charges, Dr. to Cash, 1 4 18th, paid sundry charges on shipments, .... 85 39 George Smith, Dr. to Sundiies, 19th, for Goods ^ the Nero for Jamaica, ^ order, as ^ B. S. 2 2 5 5 4 5 To Merchandise, . . . for amount, To Charges, at shipping, To Insurance, .... Premium and Policy, . . To Commission, ... on Goods, Charges, &c. . 2,550 75 61 72 30 37 34 87 88 2,759 Buchanan & Co. Dr. to Sales of Consignments, i 21st, for 15 hhds. Sugar, w Ann, 3,360 25 12 90 TRANSACTIONS IN TRADE. 6 New York, March 25, 1836. Paid my note in favor of the Globe Insurance Company, . 27 51 45 180 134 3,045 14 75 78 75 41 09 Paid J. Finlay & Co. Cash in full ?^ C. B Paid sundry charges on consignment ^ the Ann, 1 Made up the Account Sales of George Smith's Sugar, consigned ^ the Ann, as ^ S. B., and Charged, .... for freight, &c. . Commission, ... on sales, 15 hhds. George Smith, . . net proceeds, ?1 3,360 450 25 00 Paid the following expenses, in cash : — Store Rent, 300 00 150 00 Clerk's Salary, ;; 1 The Goods on hand, estimated at present value, amount, as r Inventory, to 5,786 00. JOURNAL ENTRIES. 91 New York, March, 1836. 6 1 2 1 4 1 5 1 5 1 4 2 1 Bills Payable, Dr. to Cash, 25th, paid note favor Globe Insurance Company, . 27 14 J. FiNLAY & Co. Dr, to Cash, 25th, paid them in full, 51 75 Consignment Charges, Dr. to Cash, 25th on produce, ^ Ann, 45 78 Sales of Consignments, Dr. to Sundries, 25th, for proceeds, &c. of 15 hhds. Sugar, ^ the Ann, as f- S. B. To Consignment Charges, . freight, &c To Commission, on sales, To George Smith, .... net proceeds, .... 180 134 3,045 1 75 41 09 3,360 25 Charges, Dr. to Cash, 31st, paid rent and clerk's salary, 450 00 LEDGER . — Introductory Set. INDEX. B Bills Receivable, 2 Bills Payable, 2 Bruce, James & Co 3 Buchanan & Co 4 Balance, 6 C Cash, 1 Charges, 2 Commission, 5 Consignment Charges, ... 5 D Dean, Rufus 3 Dana, J. & Co 4 F Finlay, J. & Co 4 H Hammond, Charles .... 3 I Insurance, 5 M Merchandise, 2 P Profit and Loss, 1 Pope, Henry 4 Peters, James 3 S Stock, 1 Smith, George 4 Sales Consignments, .... 5 LEDGER — INTRODUCTORY SET. 95 1 Dr. Stock. Cr. 1836 Mar. 31 To Balance^" . . . 17,191 36 36 1836 Jan. 1 Mar. 31 By Stock, By Profit ^ Loss, net gain, 1 15,000 00 2,191 36 17,191 17,191 36 • All the closing entries are printed in Italics. Dr. Profit and Loss. Cr. 1836 Feb. 15 Mar. 8 ,/ 31 // // To Bills Receivable, . To J. Bruce & Co. . . To Charges, .... To Stock, net gain, . 3 5 3 31 862 2,191 55 58 16 36 1836 Mar. 31 // // By Merchandise, . . By Commission, . . . 2,823 78 264 87 3.088 65 3,088 65 Dr. Cash. Cr. 1836 Jan. 1 // 18 „ 28 Feb. 6 // 15 To Stock, To Merchandise, . . To Merchandise, . . To Bills Receivable, . To Bills Receivable, . 1 1 2 2 3 i 15,000 280 600 957 826 00 31 00 12 20 63 1836 Jan. 2 f/ 7 ft 12 t, 29 ft 30 Feb. 11 // 15 // 28 Mar. '2 // 4 // 7 // 17 „ 18 // 25 // // » 31 // // By Charges By Merchandise, . . 1 By Charges, . . . . 1 By C. Hammond, . . S By Charges, . . . . S By Charges, . . . . C By Bills Payable, . . Z By Merchandise, . . S By Charges 4 By George Smith, . . 4 By Cash, 4 By Buchanan & Co. . 5 By Insurance, ... 5 By Charges 5 By Bills Payable, . . 6 By J Finlay & Co. . 6 By Consignra't charges ( By Charges, .... 6 By Balance, .... 325 38 2,125 75 25 18 4,151 -25 15 78 825 857 75 800 00 58 97 77 28 220 27 78 25 61 34 85 39 27 14 5175 45 78 450 00 8,198 12 17,663 17,663 63 96 LEDGER — INTRODUCTORY SET. Dr. Charges. Cr. 1836 Jan. 2 12 30 Feb. 11 // 28 Mar. 18 31 To Cash, To Cash, To Cash, To Cash, To Cash, To Cash, To Cash, 1 1 2 3 4 5 6 325 25 15 8 58 85 450 38 18 78 25 97 39 00 — 95 1836 Mar. 1 // 19 n 31 968 By J. Dana & Co. . By George Smith, . By Profit and Loss, 31 75 862 968 95 Dr, Bills Receivable. Cr. 1836 Jan. 15 25 28 Feb. 8 Mar. 3 15 To Merchandise, To J. Bruce & Co. To Merchandise, To Sundries, . . To J. Bruce & Co. To J. Dana & Co. 785 50 957 12 600 00 1,755 85 989 75 1,039 1 9-2 6,128 14 1636 Feb. 6 n 15 Mar. 31 By Cash, By Sundries, .... By Charles Hammond, By Balance, .... 957 829 785 3,555 6,128 77 Dr. Bills Payable. Cr. 1836 I Feb. 15 To Cash, . Mar. 25 1 To Cash, . 31 To Balance. 857 27 5,000 5,884 1836 Jan. 9 // 19 Feb. 25 Mar. 1 By Merchandise, By C. Hammond, By Mercliandise, By Insurance, . 857 4,000 1,000 27 5,884 Dr. Merchandise. Cr. 1836 I Jan. 4 7 9 Feb. 1 10 25 Mar. 31 To C. Hammond, To Cash, . . . To Bills Payable, To C. Hammond, To Sundries, To Sundries, To Profit and Loss. 8,151 2,li>5 857 583 517 1,800 2,823 16.859 90 1836 Jan. Feb. Mar. By James Bruce & Co By Bills Receivable, By Cash, .... By Sundries, . . By J. Bruce & Co. By Sundries, . . , By J. Bruce & Co . By J. Dana & Co. . By George Smith, . By Balance, . . . 957 785 280 1,?00 989 1,755 1,579 975 2 550 5,786 16,859 LEDGER — INTRODUCTORY SET, 97 3 Dr, Charles Hammond. Cr. 1836 Jan. 19 // 29 Feb. 1.5 Mar. 31 To Bills Payable, . . To Cash, To Bills Receivable, . To Balance,. . . . 1, 2 3 4,000 4,151 785 185 00 25 50 87 62 1836 Jan. 4 Feb. 1 // 10 By Merchandise, . . By do. . . By do. . . I 3 815125 583 40 387 97 9.122 62 9,1-22 1 1 Dr. James Bruce & Co. Cr. 1836 Jan. 6 // 30 Feb. 28 To Merchandise, . . To do. . . To do. . . ] 2 4 957 989 1,579 12 7.5 23 1836 Jan. 25 Mar. 3 // 8 By Bills Receivable, . By do. By Profit and Loss, . By Balance, . . . 2 4 5 957 989 31 1,547 12 75 .58 65 1» 3,526 3,526 Dr. James Peters. Cr. 1836 Feb. 4 Mar. 5 To Merchandise, . . To Sales Coosignm'ta, 2 4 350 896 22 75 97 1836 Feb. 8 Mar. 31 By Bills Receivable, . By Balance, . . . 3 1 350 896 2> 75 97 1,246 1,246 Dr. RuFUS Dean. Cr. 1836 Feb. 4 To Merchandise^ . . 1 2 575 88 1836 Feb. 8 By BilU Receivable, . 3 575 88 13 98 LEDGER — INTRODDCTORY SET. 4 Dr. Henry Pope. Cr. 1836 Feb. 4 To Merchandise, . . 2 829 75 1836 Feb. 8 By Bills Receivable, . 3 8^ 75 Dr. Buchanan & Co. Cr. 1 1836 Mar. 7 // 21 To Cash To Sales Consignm'ts, 5 5 78195 3,360 1 25 3.438; 50 183G Feb. 10 Mar. 31 By Merchandise, . . By Balance^ .... 3 78 3,360 25 25 5? 3,438 Dr. James Finlay & Co. Cr. laat) Mar. 25 To Cash, 6 1 . 75 laati Feb. 10 By Merchandise, . . 3 51 75 Dr. George Smith. Cr. 1836 Mar. 1 // 19 n 31 To Sundries, . . . To do. . . . To Balance^ . . . 4 5 93 2,7.59 967 48 88 31 67 1836 Mar. 12 // 25 By Sales Consignm'ts, By do. 5 6 775 3,045 58 09 67 3,820 3,820 Dr. J. Dana & Co. Cr. 1836 Mar. 1 To Sundries, . . . 4 1,039 92 1836 Mar. 15 By Bills Receivable, . 5 1,039 n LEDGER — INTRODUCTORY SET. 99 5 Dr, Insurance. Cr. 1 36 Mar. 1 n 17 To Bills Payable, . . To Cash, 4! 5 27 61 14 34 48 1 836 Mar. 1 n 19 By J. Dana &. Co. . By George Smith, . . 4| 5 27 14 61 34 88 88 48 1 Dr. Commission. Cr. 1836 Mar. 31 To Profit and Loss, . 1 264 87 1836 Mar. 1 t, 2 f, 12 ,f 19 // 25 By J. Dana & Co. . . By George Smith, . . By Sales Consignm'ts, By George Smith, . . By Sales Consignm'ts, 4 4 5 5 6 5','>2 16 20 35 87 72; 87 134 1 41 264 87 264 87 Dr. Consignment Charges. Cr. 1836 Mar. 4 n 25 To Cash, t 220 45 05 1836 Mar. 12 n 25 By Sales Consignm'ts, By Sales Consignm'ts, 5 6 P5 .30 180 75 To Cash, 266 266 05 Dr. Sales of Consignments. Cr. 1836 Mar. 12 n 25 To Sundries, . . . To Sundries, . . . 5 6, 896 3360 75! -! 00 1 1836 Mar. 5 // 21 By James Peters, . . By Buchanan & Co. . 4! 5 896 75 3,360 25 4,257 4.257 00 100 TRIAL BALANCE. Dr, Balance. Cr. Mar. 31 — Effects. — To Cash, To Bills Receivable, . To Merchandise, . . To James Bruce & Co. To James Peters, . . To Buchanan &, Co. . 1836 Mar. 31 — Debts. — By Bills Payable, . . By C. Hammond, . . By George Smith, . . Am't of my debts, . . By Stocky net Capital, 5,000 185 87 6,153 17,191 23,344 EXPLANATION. Cash. — The balance of this account, being the cash on hand, is part of your effects, and is, therefore, entered on the Dr. side of Balance. BUls Receivable. — The balance of this account, being the Bills in hand, is also part of your effects, and is entered as before. Bills Payable. — The balance of this account, being the amount you oioe in accepted Bills, is part of your debts, and is, therefore, entered on the Cr. side of Balance. Merchandise. — The balance of this account is the amount of goods unsold, and is ascertained in real business, by taking an Inventory. The difference between the Dr. and Cr. side, tohen the balance on hand is added to the amount sold, is the gain or loss ; and is transferred to the proper side of Profit and Loss Account. The Personal Accounts being debited for debts due to you, and credited for the reverse, the differences of these accounts are consequently either your effects or debts, and are entered in the Balance Account accordingly. TRIAL BALANCE. Folio. March 31, 1836. Dr. Cr. 15,000 00 17,663:63 9,465 51 35 13 968 95 106 79 6,128 14 2,572 37 884 89 5,884 89 14,036 12 11,073 90 8,936 75 9,122 62 3,526 10 1,978 45 1,246 97 350 ;22 3,438 50 78,25 2,853 36 3,820;67 264 87 59,718 54 59,718 54 Stock, . . . , , Cash, . . . . . Profit and Loss, . Charges, . . . . BilJs Receivable, Bills Payable, . , Merchandise, . . Charles Hammond, James Bruce & Co. James Peters, Buchanan & Co. George Smith, . Commission, . . CHAPTER XI. EXPLANATORY NOTES AND OBSERVATIONS. In the study of Book-keeping, there is at the outset, a difficulty which, to the inexperienced and undisciplined tyro, renders it dry and uninteresting ; namely, that of perceiving to what ultimate end the rules presented for his government in recording the various transactions, lead ; so that he will often have to work his way patiently through the system in the practical application of those rules, before he can clearly understand the reasons — the why and wherefore of all that he does. The same difficulty exists, more or less, in the acquisition of all abstract sciences. In the present Chapter, we shall endeavor to illustrate the prin- ciples upon which the rules for Journalizing depend, and the nature of the accounts in the Ledger, in such a manner as to afford a simple and comprehensive view of the subject. It has been shown in the preceding pages, that when books are kept by Double Entry, the merchant or proprietor, opens accounts, not only for the persons with whom he transacts business, but, also, for the articles or objects, in which he deals. In the man- agement of Personal Accounts ; in other words, in the application of Br. and Or. to them, no difficulty is experienced ; but why the " thing received should be made Dr. to the thing delivered," is not so obvious to a learner. The reason for this rule will be apparent, however, when it is considered that some of the accounts in the Ledger represent the merchant himself, so as to render it unnecessary to open any account bearing his proper name. These are, first, the accounts of property ; comprehending Cash, Bills Receivable, Merchandise, Ships, Houses, Lands, Bank Stocks, ^c. ; and secondly, the accounts of his gains and losses. 102 EXPLANATORY NOTES When, in the technical language of Book-keeping, any one of these is debited or credited, it is, in fact, the merchant himself who is debited or credited : thus, if I purchase goods of Charles Hammond upon credit, I do not say in my books, I owe Charles Hammond for goods bought of him; 1 say, Merchandise, Dr, to Charles Hammond. If I pay money to C. Hammond, I do not say, C. Hammond owes me for cash paid, but, C. Hammond, jDr. to Cash. It is evident that as to setting the parties to these transactions in their proper places in reference to Dr. and Cr.j when I say, in the one case. Merchandise, Dr. to Charles Hammond, and, in the other, C. Hammond, Dr. to Cash, it is equivalent to saying, I owe Charles Hammond for merchandise, and C. Hammond owes me for cash. We proceed to a more particular explanation of these accounts : — I. Cash. — On reference to the Ledger, it will be perceived that the Dr. side of Cash exhibits a statement of all monies received, and the Cr. side all monies paid. What, it may be asked, is the rule for making this account Dr. in some cases, and Cr. in others ? The rule is simple and uniform. For all sums received, cash is made debtor, and the parties paying the same are made creditors; while for all sums paid, cash is credited, and the parties receiving the same are debited. Let us suppose for illustration, that I employ a cashier. It is plain that he ought to be debited for the money intrusted to his care, and credited when it is withdrawn from him. We have only further to suppose that I keep an account with my cash deposite, under the title of " CasA," which I debit and credit as I should that of my cash-keeper, and the reason for the rule will be obvious. It will also be clear that when " Cash " is debited, the merchant himself is, in reality, debited ; and when this account is credited, the merchant is credited. For example, if I receive, in cash, from Brown U Co. $1,000, my Journal entry will be Cash, Dr. to Brown ^ Co. Now, since I am the only person respon- sible in this transaction, the above entry simply declares me to be liable to Brown &i Co. for |1,000; while it shows that my cash deposite owes me so much. Again, I purchase for cash a quantity of flour amounting to $500. In this case, my Journal entry will be Merchandise, Dr, to Cash, $500, — that is, I debit the AND OBSERVATIONS. 103 account entitled Merchandise, for the cost of the flour ; to pay which I have withdrawn from my cash deposite $500 ; and for this sum I must credit " Cash.^^ Hence this entry does not record a debt, but simply a change which has taken place in the name of my property ; namely, the increase of Merchandise, and the decrease of Cash, 2. Merchandise. — In order to obtain a clear idea of the nature of this account, we have only to suppose that the merchant per- sonifies his warehouse, and keeps an account with it, under the general title of ^'■Merchandise;" to the Dr. side of which he transfers the cost of all goods purchased or rec^ved, and to the Cr. side the amount of all such goods sold or delivered ; and any returns arising from them ; and we shall readily understand the principle upon which the purchases and sales of goods are re- corded. To illustrate this, we will refer to the transactions at page 80. On the 4th of January, a quantity of goods is supposed to have been purchased of Charles Hammond on credit, amounting to $8,151 25. In conformity to the rule, the Journal entry is, Merchandise, Dr. to Charles Hammond, for the value. Now, it is not intended by this statement that Merchandise is responsible to Hammond ; but that the merchant or purchaser is liable to him ; and that for this liability, value in goods has been received into his w^arehouse. Again, at the same page, 15 pieces of broad-cloth are supposed to have been sold to James Bruce & Co. The Journal entry is, James Bruce &i Co., Dr. to Merchandise. This is not meant to imply that Merchandise can have any claim against Bruce &i Co., but that the merchant himself has a claim upon them, and also that a certain amount of merchandise has been delivered from his store or warehouse. The accounts which are opened for any other kind of property, as Real Estate, Ships, Bank Stocks, and the hke, are analogous to that of Merchandise, being debited for the original cost and all charges, and credited for the returns, such as rents, freights, &c. 3. Bills Receivable. — Under this title in the Ledger, the merchant enters all written obligations by which he is entitled to receive money from others, such as Promissory Notes, Drafts, Bills of Exchange, Bonds, &;c. This account is debited for all Bills which come into his possession, and credhed when they are retired or otherwise disposed of. 104 EXPLANATORY OBSERVATIONS. 4. Bills Payable. — Under this title the merchant enters all obligations in writing, — as Promissory Notes, Accepted Bills or Drafts, &;c., by which he binds himself io pay money to others. This account, although classed by the majority of writers on Book-keeping among the accounts o( Property, is nothing more or less, in principle, than a Personal Account. Let us take, for illustration, the transactions of the 4th and 19lh of January, (page 80.) The first renders me responsible to Charles Hammond for $8,151 25, the second makes me liable for the same debt to the holder of Hammond's draft, which I have accepted, and thereby bound myself to pay when due. Now as this is merely a transfer of the debt from Hammond, with whom it was originally con- tracted, to the holder of my acceptance, I debit the former in the account bearing his name, and credit the latter in a general account which I open for all such debts or obligations, and to which I give the title ' Bills Payable.^ This account is managed precisely like any Personal Account; namely, it is credited for ail liabilities in the shape of Notes, Acceptances, Bonds, &:c., which the merchant grants, and debited for such of these as he pays or retires from circulation. It need scarcely be observed that nothing can be entered to the debit of ' Bills Payable,' except what has first been placed to the credit of this account ; for before a bill can be redeemed, it must have been issued. In opening an account for any species of property, the name or title is in the first instance perfectly arbitrary ; but when a title is once selected, all subsequent entries which relate to the same object, must be made in accordance with the original entry. For instance, suppose I purchase 500 barrels of flour, I may place the cost or value to the debit of the general account of ' Mer- chandise ' ; or open a particular account for this article alone, under the title of * Flour ' ; but when I dispose of this flour, I am not at liberty to credit, at pleasure, either of these accounts for the returns, — I must credit the one originally charged. In transferring the accounts to a new Ledger, or in opening a new set of Books, it is proper to close the old Books and make a General Balance ; when the items which compose the ' Balance Account ' will furnish materials for the Inventory, or statement of the assets and debts of the house. lijftai b 'in ean: sjitliflxo Jat su SET I. RETAILER'S BOOKS. Concern, Individual, Capital, Variable. Business, Commenced. Result, Profitable. 14 OBSERVATIONS. This set exhibits the business of a retail dealer for three months. The concern is supposed to commence on the first of January, 1836, without any prior stock of goods or debts ; so that there is no inventory at this date, and the books are opened by debiting Cash to Stock for the money in hand, which constitutes the capital brought into trade. It is a common prejudice, that from the nature of his business, the retailer is unable to keep his books by Double Entry, or in the same systematic manner as those of the wholesale dealer^or merchant. The difficulty, however, applies solely to the quantities of goods, and in no respect to the accounts, which are, in all kinds of business, composed of expenditure and returns, receipts and payments. These particulars the retailer can ascertain as easily as the merchant, and therefore he may, with equal facility, sys- tematize his accounts. The advantages which result from the following plan will be obvious to the man of business ; — each person's account being regularly made up in the Journal once a month, saves the labor of examining the Day Book to select the various items which compose the account ; while the process of posting and balancing the Ledger is rendered far more simple than ihat of Single Entry. In this set every transaction is recorded in the Day Book, except the receipts and payments of money. The Journal is composed from the Cash Book and Day Book, the bills received and ac- cepted being so few in number as to render a Bill Book unneces- sary or inexpedient. CASH BOOK— Set I. 108 CASH BOOK. SET I. Dr. CASH. Received. 18.36 Jan. 1 /' 30 To Stock, . . . To Merchandise, capital in trade, sales this month. Feb. 1 n 10 n 12 n 15 n 20 n 28 Mar. 1 1 5 13 14 15 19 21 30 Entered Journal ^ Page 1. To Balance, .... To Commercial Bank, To Benjamin Canfield, To Commercial Bank, To Charles Drummond, To Merchandise, . . from last month F order, . . on account, . ^ order, . . on account, . sales this mouth Entered Joumalj Page 2. To Balance, . . . , To Bills Receivable, . To Edward Ford, . . To Aaron Brown, . . To Commercial Bank, To Commercial Bank, To Bills Receivable, . To Benjamin Canfield, To Commercial Bank, from last month. No. 1, A. Brown, on account, . . do. . . F order, . . . do. ... No. 2, discounted, in full, .... W order, . . . Entered Journal^ Page 3. 5,000 00 187,58 5,187 58 342 21 150 00 120 00 500 00 34 26, 375,83 1,522 30 336 55 105 50 16 25 500 00 600 00 895 63 750 00 5 25 1,785 50 68 CASH BOOK. SET I, 109 CONTRA. Cr. Paid. 1836 Jan. 5 n 30 Feb. 2 10 15 21 27 Mar. By Commercial Bank, . deposited this day, By Charges, paid this month, . By Balance, to next month, Entered Journal^ Pog^ !• By James Andrews & Co. By Private Account, By David Evans, . By Merchandise, . By Charges, . . . By Balance, . . . on account, . . . for personal expenses, on account, . . . for cotton checks, . paid this month, . . to next mouth, . . Entered Journal^ Page 2. By David Evans, . By Commercial Bank, By David Evans, . By Bills Payable, . By Profit and Loss, By Private Account By Charges, . . By Charges, . . By Bills Payable, . By Balance, . . on account, . . . deposited this day, . in full, No. 1, Andrews & Co. discount on bill No. 2, for personal expenses, 1 quarter's rent store, clerk's salary, . . . No. 2, Brown & Co. on hand, 4,800 45 342 125 125 00 37 21 58 450 00 50 00 500100 150;00 3575 33G 55 1,522 30 60 13 350:00 1,000,00 895 63 56 75 6 35 250 1,785 611 4,994 00 50 11 68 Entered Journal, Page 4. DAY BOOK.— Set I. 112 DAY BOOK. SET I. 1 New York, January 1, 1836. Bought of James Andrews & Co. 16 ps. Broad-clolh, 1,450 25 12 " Cassimere, 445 38 8 Sold Aaron Brown, 14 yds. Blue Cloth, ... ^ 3 25, ... 45 50 8 '/ Black do. ... rS) 7 50, ... 60 00 15 Accepted a Bill drawn by James Andrews & Co. payable to then* order. No. 1, due March 15, 30 Received from Aaron Brown, his note, at 30 days, No. 1, payable March 1, . . February 2, 1836. Sold Charles Drummond, 8 yds. Cassimere, .... rS) 2 75, ... 22 00 n n Broad-cloth, ... r5) 7 50, ... 14 06 4 Sold Benjamin Canfield, 3 ps. Cassimere, 48 yds. . . (a) 2 50, . 6 Bought of David Evans, Cloths, Vestings, &c. ^ Invoice, 9 Sold Edward Ford, 15 yds. Cassimere, .... ^ 2 50, ^10 Sold Benjamin Canfield, 4 ps. Toilinette, 62 yds. . . ^ 1 00, 1,895 63 105 895 105 50 63 50 36 120 1,575 I 37 06 00 50 62 00 DAY BOOK. — SET I. 113 New York, February 12, 1836. Sold Edward Ford, 10 yds. Brown Cloth, . . . rS) 5 50, . . . 55 00 15 // Blue Cloth, .... rS) 8 25, ... 123 75 178 75 15 Sold Charles Drummond, 6 ps. Toilinette, 87-^ yds. . . ^ 1 00, 20- 87 50 Allowed to Charles Drummond, 5 F cent discount on 36 00, 25 80 Sold Benjamin Canfield, 12 yds. Black Cloth, ... rS) 5 25, ... 63 00 14 n Blue do. . . . ^ 8 00, . . . 112 00 175 00 30 Bought a quantity of Groods at auction, for which I gave my note, in favor of Brown & Co. payable in 30 days. No. 2, due March 30, I,785l50 Sold Benjamin Canfield, 28 yds. Cotttm Check, . . . ® 18| cts. 25 Sold Charles Drummond, 12 yds. Blue Cloth, . 10 // Black do. . 15 1 1 Brown do. . 28 " Cassimere, . 28 n Cotton Check, . ^ 7 00, . . ^ 5 00, . . ^ 5 50, . . rS) 2 75, . . (a) 181, . . 84 00 . 50 00 . 82 50 . 77 00 . 5 25 298 75 Sold George Harrison, Cloths and Cassimeres, ^ R P. for which he has given me his note, payable in 60 days. No. 2, due May 3, . . 750 00 15 114 DAY BOOK. SET I. New York, March 4, 1836. Received of Benjamin Canfield, his note, at 60 days, No. 3, due May 4, Sold Edward Ford, 28 yds. Cassimere, . ^ 2 50, 8 Sold Henry James, 3 yds. Cassimere, .... ^ 2 75, ... 8 25 U n Broadcloth, . . . . rS) 10 00, . . . 18 75 10 Sold John King & Co. 9 yds. Blue Cloth, 9 // Black do. 8 " Cassimere, 5 // Toilinette, /S) 8 00, (a) 8 50, (a) 3 00, (a) 1 25, 12 Allowed by David Evans, 1 W cent discount on 1,575 00, 13 Sold Aaron Brown, 2 ps. Blue Cloth, 56 yds. 3 n Black do. 75 // 4 /' Cassimere, 112 " 3 " Toilinette, 75 » Co) 5 00, (a) 6 50, (a) 2 50, (a) 75, Sold Charles Drummond, 28 yds. Blue Cloth, . 14 15 (a) 7 50, 72 00 76 50 24 00 6 25 280 00 487 50 280 00 56 25 Received from Edward Ford, his note, payable in 30 days, No. 4, due April 15, 21 Sold Edward Ford, 28 yds. Black Cloth, 14 II Cassimere, . /a) 8 00, . . . 224 00 ^ 2 55, . . . 35 00 237 70 00 00 27 00 178 75 15J75 1,103 210 200 75 00 00 259 00 DAY BOOK. SET L 115 New York, March 25, 1836. Sold Henry James, ]2 yds. Toilinette, . . . , (a) 75, ... 9 00 15 /' Cassimere, .... rS) 3 00, ... 45 00 10 n Black Cloth, ... rS) 7 50, ... 75 00 27 Sold John King & Co. 28 yds. Black Cloth, .... ^ 7 00, 28 Bought of James Andrews & Co. Merchandise, ^ Invoice, . . Sold Charles Drummond, 15 yds. Cassimere, . (a) 2 00, 30 Accepted a bill drawn by J. Andrews & Co., payable to their order. No. 2, due April 30, Received of Henry James, a draft on Thompson & Co., payable at 10 days' sight, in full for his account, . . . John King & Co have accepted my draft, payable 30 days from this date, 129 196 750 30 550 156 374 00 00 00 00 00 00 75 Note. — The merchandise on hand the 30 March, as ^ Inventory, amounts to 2,500 ; which must be entered at the credit side of the Merchandise Account in the Ledger, previous to closing the books. JOURNAL— Set I 118 JOURNAL. SET I. New York, January, 1836. Cash, Dr. to Sundries, Received this month, ^ C. B. To Stock, 1st, for Capital in trade, To Merchandise, 30th, for sales this month, Sundries, Dr. to Cash, Paid this month, ^ C. B. Commercial Bank, 5th, deposited this day, Charges, 30th, expenses this month, .... Merchandise, Dr. to James Andrews Sf Co. 1st, purchased this month, .... Aaron Brown, Dr. to Merchandise, 8th, for 14 yds. Cloth, . rS) 3 25, . 45 50 8 // do. . ^ 7 50, . 60 00 James Andrews & Co., Dr. to Bills Payable, 15th, No. 1, due March 15, Bills Receivable, Dr. to Aaron Brown, 30th, No. 1, due March 1, . . . . 5,000 00 1871,58 .187 58 4,800 45 4,845 00 37 37 63 105 50 895 63 105 50 JOURNAL. SET I. 119 New York, February^ 1836. 2 Cash, Dr. to Sundries, Received this month, ^ C. B. 2 To Commercial Bank, 10th, r order, 150 00 15th, r order, 500 00 2 To Benjamin Canfield, 12th, on account, 2 To Charles Drummond, 20th, on account, 3 To Merchandise, 28th, sales this month, 650 120 34 375 1,180 Sundries, Dr. to Cash, Paid this month, ^ C. B. James Andrews & Co. 2d, on account, . . . Private Account, 10th, personal expenses, David Evans, 15th, on account, . . . Merchandise, 21st, for Cotton Checks, Charges, 27th, postages, &c . . 450 50 500 150 35 1,185 00 00 00 00 75 75 Merchandise, Dr. to Sundries, For Purchases this month. 1 To David Evans, 6th, for amount of Invoice, 3 To Bills Payable, 30th, No, 2, due March 30, 1,575 1,785 50 3,361 38 V 120 JOURNAL. — SET I. New York, February, 1836. Sundries, Dr. to Merchandise^ For Sales this month. Charles Drummond, 2d, 8 yds. Cassimere, 1| // Broadcloth, 15th, S7h " Toilinette, . (a) 2 75, 22 00 (a) 7 50, 14 06 (a) 1 00, 87 50 Benjamin Canfield, 4th, 3 ps. Cassimere, 48 yds. /a) 2 50, 120 00 9th, 4 // Toilinette, 62 /' ^ 1 00, 62 00 25th, 12 yds. Black Cloth, . ^ 5 25, 63 00 14 Blue do. (a)S 00, 112 00 Edward Ford, 9th, 15 yds. Cassimere, . 12th, 10 f Brown Cloth, 15 " Blue do. ^2 50, 37 50 (a) 5 50, 55 00 ^8 25, 123 75 Profit and Loss, Dr. to Charles Drummondy 20th, discount allowed, March, 1836. Cash, Dr. to Sundries, Received this month, <^ C. B. To Bills Receivable, 1st, No. 1, A. Brown, 105 50 19th, No. 2, discounted, 750 00 To Edward Ford, 5th, on account, To Aaron Brown, 13th, on account, To Commercial Bank, 14th, r order, 600 00 15th, do. 895 63 30th, do 1,785 50 To Benjamin Canfield, 21st, in full, 123 357 216 56 00 25 696 81 80 855 16 500 3,281 5 4,658 JOURNAL. — SET I. 121 New York, March, 1836. Sundries, Dr. to Cash, Paid this month, ^ C. B. David Evans, 3d, on account, 60 13 13th, in full, 1,000 00 Commercial Bank, 6th, deposited this day, Bills Payable, 15th, No. 1, J. Andrews & Co. . . 895 63 30th, No. 2, Brown & Co 1,785 50 Profit and Loss, 19th, discount on Bill No. 2, Private Account, 25th, for personal expenses, Charges, 30th, rent, and clerk's salary, Sundries, Dr. to Merchandise, For Sales this month. Benjamin Canfield, 1st, 28 yds. Cotton Check, (cb 1^ cts. . . , Charles Drummond, 2d, Sundries, r B. P 298 75 14th, 28 yds. Cloth, . . ^ 7 50, . 210 00 25th, 15 " Cassimere, . r5) 2 00, . 30 00 Bills Receivable, 3d, No 2, G. Harrison, ....#... Edward Ford, 6th, 28 yds. Cassimere, . ^5) 2 50, . 70 00 21st, 28 " Cloth, . . ^ 8 00, . 224 00 14 » Cassimere, rS) 2 50, . 35 00 Henry James, 8th, 3 yds. Cassimere, rS) 2 75, . 8 25 n n Broadcloth, (a) 10 00, . 18 75 25th, Sundries, r B. P 129 00 John King & Co. 10th, Sundries, r B. P 178 75 27th, 28 yds. Black Cloth, ^ 7 00, . 196 00 Aaron Brown, 13th, Sundries, f B. P 1,060 350 2,681 6 35 250 4,383 538 750 329 156 374 1,103 3,257 25 75 00 00 00 75 75 50 16 122 JOURNAL. SET I. 5 New York, March, 1836. 3 4 2 2 1 3 3 4 3 1 1 Merchandise, Dr. to James Andrews Sf Co. 28th, for amount of their Invoice, 750 00 Bills Receivable, Dr. to Sundries, For Bills received this month. To Benjamin Canfield, 4th, No. 3, due May 4, To Edward Ford, 15th, No. 4, due AprillS, To Henry James, 30th, draft on Thompson, To John King & Co. 30th, for their acceptance, 237 200 156 374 00 00 00 75 967 75 James Andrews & Co. Dr. to Bills Payable, 30th, No. 2, due April 30, 550 00 David Evans, Dr. to ProJU and Loss, 12th, discount allowed by him, " 75 LEDGER— Set I INDEX. A Andrews, James & Co. ... 4 B Bills Receivable, 2 Bills Payable, 3 Brown, Aaron 4 JBalance Account, 4 C Ciommercial Bank, .... 2 Cash Account, 2 Canfield,B 2 Charges, 3 D Druramond, C 2 E Evans, David 1 F Ford, Edward 1 J James, Henry 3 K King, John & Co 3 M Merchandise, 3 P Private Account, 1 Profit and Loss, 1 S Stock, 1 LEDGER. •SET I. 125 Dr. Stock. Cr. 1836 Mar. 30 To Private Account, To Balance, . . . 85 5,556 1836 Jan. 1 Mar. 30 By Cash, . , . . By Profit and Loss, 5,oon 5,642 48 Dr. Private Account. Cr. 1836 Feb. 10 Mar. 25 To Cashy To Cash, 85 1836 Mar. 30 By Stock, 85 Dr. Profit and Loss. Cr. 1836 Feb. 20 Mar. 19 30 To C. Drummond, To Cash, . . . To Charges, . . To Stock, . . . 1836 3 1 80 Mar. 12 4 6 56 30 331 12 642 48 981 96 By D. Evans, . By Merchandise, 1575 966 21 981 Dr. David Evans. Cr. 1836 Feb. 15 Majr. 13 To Cash, . . . . To Cash, .... To Profit and Loss, 500 1,060 15 1,575 1836 Feb. By Merchandise, 1,575 1,575 Dr. Edward Ford. Cr. 1836 I Feb. 12 To Merchandise, Mar. 21 To Merchandise, 1 1836 3 216 25 Mar. 5 4 ^9 00 15 30 545 25 1 1 By Cash By Bills Receivable, . By Balance, .... 3 5 16 200 329 545 126 LEDGER. SET I. ■■ 2 j)r. Bills Receivable. Cr. 1836 Jan. 30 Mar. 3 30 1 To A. Brown, . . . To Merchandise, . . To Sundries, .... 1 4 5 105 750 967 00 75 1836 Mar. 19 30 By Cash, 3 By Balance, .... 855 50 967 75 1,823 25 1,823 25 1 1 Br. Commercial Bank. Cr. 1836 Jan. 5 Mar. 6 To Cash, To Cash, 1 4 4,800 350 00 00 00 1 1 .1836 Feb. 15 Mar. 30 30 By Cash, ..... 2 By Cash, 3 By Balance, .... 650 OC 3,281 IC 1,218 87 5,150 5,150 0( __ Dr. Cash. Cr. 1836 Jan. 30 Feb. 28 Mar. 30 To Sundries, .... To Sundries, .... To Sundries, .... 1 2 3 5,187 1,180 4,658 58 09 13 80 1 1836 Jan. 30 Feb. 27 Mar. 30 By Sundries, .... By Sundries, .... 5 By Sundries, .... ' By Balance, .... 1 4,845 3" 2 1,185 7 i 4,383 5 611 1 5 7 1 11,025 11,025 8 9 Dr. Benjamin Canfield. Cr. 1836 Feb. 25 Mar. 1 To Merchandise, . . To Merchandise, . . 3 4 357 5 00 25 25 1 1836 Feb. 12 Mar. 4 21 By Cash, By Bills Receivable, . By Cash, 2 190 5 237 3 52 5 362 362 2 5 Dr. Charles Drummond. Cr. 1836 Feb. 15 Mar. 25 To Merchandise, . . To Merchandise, . . 3 4 123 538 56 75 1836 Feb. 20 Mar. 30 By Cash, By Profit and Loss, . By Balance, .... 2 34 2 4 1 8 626 2 6 5 662 31 662 3 1 1 LEDGER. SET I. 127 Dr. Bills Payable. Cr. 1836 Mar. 30 To Cash, . To Balance, 2,68] 550 3.231 1836 Jan. 15 Feb. 30 xMar. 30 By J. Andrews & Co. By Merchandise, . By J. Andrews & Co. 895 1,785 550 3,231 Dr. Merchandise. Cr. Jan. 1 Feb. 21 30 Mar. 28 30 To J. Andrews & Co. To Cash To Sundries, . . . To J. Andrews & Co. To Profit and Loss, 1 1 1836 1 1,895 63 Jan. 30 2 150 00 3 s! 3,361 3c<| Feb. 28 5: 750 00 28 966 21 22 Mar. 30 7,123 1 1 By Cash, . By A. Brown, By Cash, . By Sundries, By Sundries, By Balance, 1 187 1 105 2 375 3 696 4 3,257 2,500 7,123 Dr. Charges. Cr. 1836 Jan. 30 Feb. 27 Mar. 30 To Cash, To Cash, To Cash, 45 35 250 331 1 1 1838 371 1 Mar. 30 75 00 By Profit and Loss, 331 331 Dr. Henry James. Cr. 1836 Mar. 25 To Merchandise, 156 00 Dr. John King & Co. Cr. 1836 Mar. 30 To Merchandise, 1 1 1 1836 1^ 1 1 1 .. 75I Mar. 30 1 1 ' By Bills Receivable, . 374 128 LEDGER. SET I. Dr. Aaron Brown. Cr. Jan. 8 Mar. 13 To Merchandise, To Merchandise, 105 1,103 1,209 1836 1 Jan. 30 By Bills Receivable, ar. 13 By Cash, . . . . By Balance, . . . 105 500 603 1,209 Dr. James Andrews & Co. Cr. laac Jan. 15 Feb. 2 Mar. 30 To Bills Payable, To Cash, . . . To Bills Payable, To Balance, . . 1 lb36 1 895 631 Jan. 1 2 450 00 Mar. 28 5 550 00 750 00 2,645 63 By Merchandise, By Merchandise, 1,895 750 Dr. Balance. Cr. 1836 Mar. 30 To Cash, To Bills Receivable, . To Commercial Bank, To Aaron Brown, . . To Merchandise, . . To C. Drummond, . • To Edward Ford, . . 1 1836 2 611 11 Mar. 30 2 967 75 1 2 1,218 87 4 603 75 3 2,500 00 2 626 25 1 329 00 6,856 By Bills Payable, . . By J. Andrews &. Co. . Am't of my debts, , . By Stock, net Capital, 550100 750100 1.300 5,556 6,856 73 * It will be observed that in this Set, no entries of Profit and Loss, arising at Balancing, have been brought through the Journal, these being closed as simple transfers from one account to another, in the Ledger only. FORM OF TRIAL BALANCE. 129 FORM OF THE TRIAL BALANCE, &c. When all the accounts have been collected from the Ledger, add both columns of the Trial Balance, and If they are equal, the Ledger has been correctly posted. If the two sides do not agree, some error has been committed. Accounts in which both sides are equals are omitted for the purpose of abridging the labor. See page 46. Trial Balance, March 30. Stock, Private Account, . . . Profit and Loss, .... Edward Ford, Cash, Bills Receivable, .... Commercial Bank, . . . Charles Druramond, . . Bills Payable, Merchandise, Charges, Aaron Brown, .... James Andrews & Co. — Drs. ■Crs. Differences. — Drs.— I —Crs 85 545 11,025 1,823 5,150 602 2,681 6,157 331 1,209 25 1,895 63 31,574 86 5,000 15 216 10,414 855 3,931 36 06 3.231 13 ! 4,623 605 2,645 31,574 22 86 85 329 611 967 1,218 626 25 1,533 331 603 6,307 39 5,000 7 550 750 6,307 00 00 39 Dr. PROFIT AND LOSS SHEET. Cr. To Sundries, F Ledger, To Charores, . . . . To Stock, gain. 8 331 339 48 642 48 981 96 By D. Evans, F Ledger, By Merchandise, . . . 15 966 981 96 Dr. BALANCE SHEET. Cr. Effects. To Cash, .... To Bills Receivable, To Commercial Bank, To Aaron Brown, . To C. Drummond, . To Edward Ford, . To Merchandise, . . 611 11 967,75 1,21887 603,75 626|25i 329 2,500 6,856 73 Dehts. By Bills Payable, . By J. Andrews & Co. Amount of my debts, By Stock, net capital. 17 550 750 1,300 5,.556 6,856 SET II MERCHANTS' ACCOUNTS EXEMPLIFIED IN THE BOOKS OF REED, JONES & CO., GENERAL MERCHANTS, NEW YORK. Concern, A Partnership. Business, Commenced. Result, Profitable. PARTNERSHIP. Partnership in business is a contract between two or more persons, by which they agree to join either their money, goods, labor, or skill, or all of them ; and to divide the gain or sustain the loss, in proportion to the terms of copartnership. John Reed, Thomas Jones, and B. F. Foster, form a co- partnership as general merchants, under the firm of REED, JONES h Co. Besides acting as agents, they agree to embark occasionally in speculations, or adventures on their own account or in company. They consider that fourteen thousand four hundred dollars will form a capital sufficient to enable them to carry on their business, and which they adcordingly a4vance in cash on the first of July, in the following proportions : — John Reed, . . . . ... 7,200, or 3-6 Thomas Jones, 4,800, or 2-6 B. F. Foster, ...... 2,400, or 1-6 14,400. Each partner holding an interest in the concern equal to his capital which is divided into six shares. B. F. Foster to keep the books of the company, for which he is to be allowed by the other partners, |480 per annum in name of salary. CASH BOOK— Set II. 134 CASH BOOK. SET II. Dr. CASH. 1836 July 1 Aug 20 / 30 Sept. 1 / 13 Oct. 1 > 19 , 20 / 24 To Stock, for joint Capital, . To Interest, from J. Thompson, To Bills Receivable, . . No. \, J. Sterling, . Entered Journal^ Folio 1. To Balance, from last month, To Bills Receivable, No. 4, J. Sterling, . Entered Journal, Folio 3. To Balance, from last month, . To Dawson & Co. . . in full, To Bills Receivable, . . No. 2, J. Thompson, To Vanderpoole & Co. . Bill negotiated 20th, Entered Journal^ Folio 5. Received. 14,400 7 480 14,887 22 14,278 480 14,758 6,493 5,088 960 3,782 16,324 46 30 CASH BOOK. SET II, 135 CONTRA. 1 Cr. 1836 Aug. 4 /' 20 n 31 II II Sept. 4 // 12 " 15 n 20 II II n 30 II II Oct. 1 n 11 ,1 22 n 29 // 30 1 By Charges, .... store fixtures, &c. . . . By John Reed, , . . personal expenses, . . . By Charges, .... postages, &c By Balance, .... to next month, .... Entered Journal, Folio 2. By ship Mars, . . , , for 1-6 share, . . . . . By Bills Payable, . . No. 1, Murray & Co. . . By Indigo in Co. . . for 1,696 lb. on joint-ac- count with J. Ramsay, each ^ concerned, . . By Cotton, freight, &c. r Ann, . . By Thomas Jones, . . personal expenses, . . . By Charges, .... sundries, r Petty C. B. . By Balance, .... to next month, .... Entered Jmimal, Folio 3. By John Ramsay, . . for sales Indigo in Co. By Bills Payable, . . No. 2 and 3, Murray & Co. By Bills Payable, . . No. 4, J. Thompson, . . By Bills Payable, . . No. 7, R. Mason, . . . By Consign m't Charges, duty, &c. F Cuba, . . . By B. F. Foster, . . . personal expenses, . . . By Charges, .... sundries, ^ Petty C. B. . By Balance, .... to next month, .... Entered Journal, Folio 5. Paid. 332;64 240 00 36 12 14,278 46 14,887 22 00 00 44 96 00 16 90 2,160 960 4,477 446 144 76 6,493 14,758 46 242 1,440 2,640 3,625 1,797 144 74 6,360 16 00 00 60 28 00 52 74 16,324 30 136 CASH BOOK. — SET II. Dr. CASH. 1836 Nov. 1 n 20 » 25 Dec. 1 n 2 n 20 n 25 n 27 To Balance, . . . To Merchandise, . To E. Robinson, . To Bills Receivable, To James Risk, from last month, . , draw back on Sugar, . on account of Cotton, No. 3, J. Thompson, . in full, to date, . . . Entered JournaL Folio 7. To Balance, from last month, . . . To Interest, discount from T. Ryder, To Bills Receivable, . . No. 9, Rees & Co. . . To Bills Receivable, . . No. 10, Curtis & Co. . . To Ship Mars, .... our 1-6 gain, . . . . To Bills Receivable, No. Entered Journal^ Folio 9. Received. 6,360 4,329 1,705 1,680 4,970 19,046 6,435 51 2,400 • 2,400 446 13.421 48 30 CASH BOOK. SET II. 137 CONTRA. Cr. 1836 Nov. 4 6 10 11 20 25 29 30 Dec. 1 2 10 12 13 14 20 30 By Charges, .... By Charges,'. . . . By Bills Payable, . . By John Reed, . . . By Thomas Jones, By B. F. Foster, . . By Charges, .... By Consignm't Charges, By Ross & Son, . . By Consignm't Charges, By Bills Payable, . . By Charges, ... By Balance, .... on Shipment, F Spooner, do. ^ Aurora, No. 5, J. Ramsay, . private account, do. do. do. do. rent, &c. r P. C. B. on Produce, f- Cuba, remitted to them, . on Produce, f- Cuba, No. 6, Ross & Son, sundry this month, to next month, . . Entered Journal, Folio 7. By John Ramsay, . By Thomas Ryder, By Bills Payable, . By Bills Payable, . By John Stirling, . By Bills Payable, . By Interest, . . . By B. F. Foster, . By Consignm't Charges, By Charges, . . . By Balance, . . . in full, do No. 8, W. Irvine, . No. 11, J. Ramsay, paid Gray, ^ order. No. 10, J. Thompson, discount on Bills, . private account, . on Produce, ^ Cuba, postages, &c. . . in hand, .... Entered Journal, Folio 9. Paid. 339 164 1,972 240 144 96 120 00 2,607|78 2,71240 1,523 42 2,6I9|80 69 72 6,435 98 19,046 48 598 08 1,684|56 2,2801.36 1,698 48 960 00 2,400 00 26,96 96 00 33|l4 62jl4 3,58158 13,421 30 18 DAY BOOK.— Set II REMARKS ON DAY BOOK.—Set II. To avoid increasing the number of Subsidiary Books, which in teaching has been found very inconvenient, every transaction, except the money received and paid, is entered in the following Day Book ; having always, reference to the Subsidiary Books for particulars. The amount of each shipment as well as that of each sale on consignment, is arranged in the order of their dates ; but in real business, when these are numerous, it is customary to use the Invoice Book Outward and the Sales Book as books of record for the original entries, and to journalize from these books. It is also usual to make the entries in the Day Book, in the Journal form, by pointing out the debtors and creditors of each, which is certainly preferable to that of common language ; but, for the purpose of teaching, the narrative form here adopted, is indis- pensably necessary. Instead of entering money paid upon goods consigned for sale and returns, to the account of Charges, an account, entitled *' Consignment Charges," is debited for every sum paid, and credited when the sales are adjusted. When the consignments are all sold, the difference of the two sides of this account is transferred to the credit of Profit and Loss, being for such items as are not a direct outlay. But when any of the consignments are unsold at balancing, it will be found sufficiently accurate, to consider the difference between the Dr. and Cr. sides, as the balance of the account. In preference to opening an account for the goods consigned by each vessel, or an account of each kind of goods, we have opened only one general account for all consignments under the title of Sales of Consignments, which is credited for the amount of the sales, and debited for the net proceeds and all charges. Should it, however, be intended before Balancing not to enter the net proceeds of any sale to the credit of the consigner until his consignment be all sold, the difference of the account, entitled " Sales of Consignments," will exhibit the amount of such sales, being the gross sum owing by you to the consigner. The forms of arranging consignments are very various. Some Book-keepers use the title ^' Sales per the ship ," mentioning her name, or A. B.'s Sales ; others number each sale, and open an account entitled Sales JVo. 1, Sales JVo. 2, &fc.; although any one of these titles may be adopted for the first entry, there is no room for choice afterwards ; every subsequent entry which relates to the consignment, must be journalized conformably to the original title of the account. DAY BOOK. SET IL 141 New York, Jvly a, 1836. Bought of John Ramsay, Goods, as ^ Invoice, . Effected Insurance with James Risk, on Goods ^ the Fame, for New Orleans. — Premium and Policy, Shipped ^ the Fame, for New Orleans, and consigned for sale and returns, to R. Mason, on our account and risk, as ^ Invoice Book, Goods, amounting to 1,972 96 Charges, at shipping, 80 28 Insurance, as above, 39 86 Received from John Stirling, a Bill on Foster & Co. No. 1, due August 31, 18 Effected Insurance with James Risk, on Produce consigned to us ^ Cuba from Jamaica, as follows, viz. — On account of J. Stirling, 1,200 00 on 10 Hhds. Sugar, 1,728 00 on 30 Puncheons Rum. 2,928 00 Premium and Policy, , . 70 72 On account of Murray & Co. 3,600 00 on 30 Hhds. Sugar, 1,200 00 on 10 Tierces Coffee, 432 00 on 40 Planks Mahogany. 5,232 00 Premium and Policy, . . 124 40 20 Ordered from Robert Mason, New Orleans, 100 Bales Cotton, which he has shipped W the Ann, amounting to 5,607 88 Insured with James Risk on the above Cotton, 5,607 00.— Premium and Policy, . 106 56 1,972 39 2,093 96 86 10 480 00 195 12 5,714 44 142 DAY BOOK. SET II. New York, August 6, 1836. Accepted Murray & Co.'s di*afts as follows : — No. 1, payable to T. Fraser, August 9, at 31 days' sight, 960 00 No. 2, Williamson & Co. 60 days' sight, ... 960 00 No. 3, Ellis & Co. 60 days' sight, 480 00 2,400 00 20 Effected Insurance with James Risk, 5,760 00 on 25 tons Hemp, r the Vrow from Riga. Premium and Policy, 106 56 To accommodate J. Thompson, we have received his two Bills as follows : — No. 9, on J. Mills, July 18, at 3 mos 960 00 No. 3, on W. Bell, July 22, at 4 mos. .... 1,680 00 2,640 00 For which we have granted him our acceptance. No. 4, payable to his order August 19, at 2 months' date, . . . 2,640 00 Accepted John Ramsay's draft. No. 5, payable to his order, August 7, at 3 months, 96 Received on account of J. Stirling, a draft on Lloyd & Co. No. 4, August 21, at 20 days' sight, 480 00 Accepted Ross & Sons draft payable to R, Field, No. 6, August 27, at 3 months' date, . September 1, 1836. Bought of William Irvine, Goods, as ^ Invoice, amounting to 2,619 2,280 80 Bought of John Ramsay, Goods, as ^ Invoice, amounting to 1,^ 48 DAY BOOK. SET II. 143 New York, September 3, 1836. Bought of Thomas Ryder, Goods, as ^ Invoice, amounting to 12 1,684 56 Insured with James Risk 6,720 00 on goods w the Spooner for Jamaica. — Premium and Policy, 159 60 13 Shipped on board the Spooner for Jamaica, by order and for account and risk of the following persons, as ^ In- voice Book Outward : — For John Stirling, Goods, . Charges, Commission, amounting to 2,024 40 at shipping, 158 12 on Goods and Insurance, 66 56 Insurance, . . on 2,400 00, 57 00 2,306 08 For Murray & Co. Goods, . . Charges, Commission, Insurance, . amounting to 3,639 00 at shipping, 227 16 on Goods and Insurance, 118 24 on 4,320 00, 102 60 00 6,393 08 15 Ordered on joint account and risk with Ross & Son, Riga, each party one half concerned, 25 t^|^ Hemp, which they advise having shipped for our address,jp^ the Vrow, as r Invoice received this day, amounting to 5^239 60. Our i of which is 2,619 80 19 Sold Dawson & Co. 16 Chests Spanish Indigo, 1,696 lb. . rS) 3 00 . . 5,088 20 00 Accepted R. Mason's draft in favor of C. Tyson, No. 7, at 30 days' sight, 3,625 60 Received from R. Mason an account sales of Goods con- signed to him ^ the Fame, the net proceeds being . . . 1,982 28 144 DAY BOOK. SET II* New York, September 20, 1836. Sold Edward Robinson, 25 Bales Cotton, 30 Bought of James Thompson, 40 Hhds. refined sugar for exportation. Amount, as ^ B. P Finished the sales of Indigo purchased on joint account with J. Ramsay, and charged, for Interest, .... on cost till due Commission, Charges, . . John Ramsay's Our half . . 2 F cent on sales, at delivery, . . h of net gain, is of net gain, is . October 4, 1836. 20 14,928 20 101 3 242 242 610 40 Accepted William Irvine's draft, No. 8, payable to his order Sept. 7, at 3 months, 2,280 11 36 Accepted James Thompson's two drafts. No. 9, October 9, . ^ 2 months, . . . 2,400 00 No. 10, n n, . (a)2 fi ... 2,400 00 4,800 00 Accepted John Ramsay's draft. No. 11, September 9, at 3 months, 20 Insured with James Risk, 11,520 00 on Sugar shipped r Aurora, for Rotterdam.— Premium and Policy, .... U 48 152 64 Shipped r Aurora for Rotterdam, on joint account and risk of J. Ramsay, Vanderpoole & Co., and ourselves, each \ concerned, as ^ Invoice Book, 40 Hhds. refined Sugar (less drawback), . 10,598 80 Charges, at shipping, 203 28 Insurance, as above, ]52 64 Commission, on Cost and Insurance, . . 360 24 11,314 96 DAY BOOK. SET II. New York, October 23, 1836. Charged Vanderpoole & Co. for expenses on Bill negotiated on them this day, 24 Sold E. Robinson, 25 Bales Cotton, amounting, ^ S. B., to Sold Pringle & Son, 50 Bales Cotton, amounting, ^ S. B., to 25 Procured by James Risk, the settlement of a total loss of Hemp, ^ the Vrow, on her voyage from Riga to New York ; insured the 20th inst. The sum insured being 5,760 00 less — his brokerage h f- cent 28 72 Net sum recovered, 5,731 28 For the following accounts : — Insurance, ... for Premium and Policy, . . . Commission, . . on Insurance and settling, . . , Ross & Son, . . their ^ net recovery, Hemp in Co. . . our i recovery, JVovemher 6, 1836mgj- Sold Fenn & Park, ^^^•l 26 Puncheons Rum, ^ Cuba, amounting^lPs. B., to . 12 Sold John Black, 4 Puncheons Rum, W Cuba, F S. B 20 Received E. Robinson's Bill, No. 5, October 25, at two months, — _ n , Received from Vanderpoole & Co. their draft on Vanderloo, No. 6, Nov. 20, at two months' sight, 145 10 3,381 75 72 60 106 56 144 2,740 2,740 5,731 3,207 461 1,686 2,400 08 32 32 28 54 16 72 00 146 DAY BOOK, ■SET II. Nbw York, JVovtmher 20, 1836. Made up Account Sales of J. Stirling's 30 Puncheons Rum, consigned ^ the Cuba, and credited, Insurance, .... for Premium and Policy, . . Consignm't Charges, for freight, duty, &c. . . . Commission, ... on Insurance and Sales, . . John Stirling, ... for net proceeds^ 25 Endorsed to James Thompson, Bill No. 6, on Vanderloo, due Jan. 23, 26 Received Pringle & Son's acceptance, No. 7, October 26, at three months 30 Received from Vanderpoole & Co. Account Sales of Sugar, consigned to them r Aurora, two thirds of the net proceeds being 8,856 00. John Ramsay, for his J proceeds, .... Adventure to Rotterdam, . for our \ proceeds, .... Charged Ross & Son, for Commission, Brokerage, n, tOY^gauai ses on Bill remitted them, cent on 2,712 00, . . December 1, 1836. Received Fenn & Park's acceptance. No. 8, Nov. 26, at two months Received from Vanderpoole & Co., 3 drafts. No. 9, on Rees & Co. Nov. 27, 2 mos. sight, No. 10, on Curtis & Co. n „ 2 „ No. 11, on Jones & Co. Dec. 1, 2 '' // 4156 454 98 100 36 3,071:80 3,668 70 2,400 00 3,38160 8,856 13 00 00 00 56 14 36 27 92 3,207 54 00 2,400 2,400 00 1,656 00 6,456 00 DAY BOOK. SET II. 147 New York, December 1, ]836. Charged John Ramsay, ^ Account Current, for Interest, .... on 4,428 00, till Jan. 30, . . . 30 24 Commission, - . h W" cent on do 22 03 20 58 27 Sold James Thompson, 10 Hhds. Sugar, consigned W Cuba, Net, 131 cwt. qrs. 14 lbs. at 20 00 V cwt. ^ S. B. 2,622 50 21 Sold Atwood & Co. 30 Hhds. Sugar, consigned w Cuba, Net, 378 cwt. at 20 00 r cwt. ^ S. B 7,560 00 23 Sold Dawson & Co. 10 Tierces Coffee, consigned w Cuba, Net, 60 cwt. 2 qrs. at 30 48, r S. B 1,844 04 Sold James Brown & Co. 40 planks Mahogany, consigned ^ Cuba, 1,344 feet, (a) 50 cts., r S. B 672 00 24 Endorsed to James Thompson, Bills No. 8 and 11, ... 4,863'54 Discount allowed by him on settlement, 242;36 31 5,105,90 Made up the Account Sales of produce, F Cuba, consigned by John Stirling, and Murray &, Co., ^ S. B. : — John Stirling, for net proceeds of 10 Hhds. Sugar, due January 20, Murray & Co., for net proceeds of 30 Hhds. Sugar, due February 21, ... . 3,824 31 10 Tierces Coffee, due March 23, ... . 1,108 86 40 planks Maliogany, due January 21, . . 341 86 1,411 10 Insurance, .... for Premium and Policy, Consignm't Charges, for duty, freight, &c. . . Interest, on Cash advanced, . . Commission, ... on Sales and Insurance, 5,275 031 153j56 5,506 64 39^47 312 74 12,698 54 148 DAY BOOK. SET 11. 8 New York, December 31, 1836. John Black having become insolvent, has offered his cred- itors 60 r cent on their claims, and considering it for the interest of our employers, we have accepted this offer. The loss to John Stirling, is Received a Bill on J. Caution, No. 12, dated December 12, for the balance, Made up the following accounts to this date, and charged f Account Current Book : — Interest, . . Commission, Charges, . . Murray & Co., for Interest, . . Commission, 8 42 on cash paid and received, 9 60 for postages, &c. ... 7 44 Charges, . 66 82 on cash paid, 12 00 for postages, 6 00 Due by the following, for interest to this date, John Reed, Thomas Jones, Ship Mars, Due to B. F. Foster, by the following, For 6 months' salary as managing partner, viz John Reed, Thomas Jones, his proportion, The Interest on our joint Capital to date, is Menwrandum. Our 1-6 of ship Mars is valued at 2,064 00. JOURNAL.— -Set II 150 JOURNAL. SET II. New York, July^ 1836. Cash, Dr. to Stock, 1st, for our joint Capital in trade. Merchandise, Dr. to John Ramsay^ 2d, for Goods, ^ Invoice, . Insurance, Dr. to James Risk, 3d, for Premium and Policy on ship- ment, F Fame, 39 86 18th, for Premium and Policy on Pro- duce, r Cuba, 195 12 Adventure to New Orleans, Dr. to Sundries, 4th, for Goods, ^ Fame, ^ Invoice Book. To Merchandise, To Charges, To Insurance, . Bills Receivable, Dr. to J. Stirling, 9th, No. 1, due August 30, . . 4 I Cotton, Dr. to Sundries, 20th, for cost of 100 Bales, W Ann. To R. Mason, . To James Risk, F Invoice, Insurance, August, 1836. Cash, Dr. to Sundries, As ^ Cash Book, Folio 1. To Interest, 20th, from J. Thompson, . To Bills Receivable, 30th, No. 1, John Stirlmg, 00 1,972 96 234 98 1,972 96 80 28 39 86 2,093 10 480 00 r 5,607 106 5,714 7 480 487 22 JOURNAL. — SET II. 161 New York, August^ 1836. 2 Sundries, Dr. to Cash, As ^ Cash Book, Folio 1. 2 Charges, 4th, fixtures, &c 332 64 31st, expenses this month, John Reed, 20th, for private expenses. 36 12 3G8 240 608 Bills Receivable, Dr. to SundrieSf For. Bills received this month. To James Thompson, 20th, No. 2, due October 21, . No. 3, due November 25, To John Stirling, 2 1st, No. 4, due September 13, 960 00 1,680 00 2,640 480 3,120 Sundries, Dr. to Bills Payable^ For Bills accepted this month. Murray & Co. 9th, No. 1, due September 12, . . 960 00 No. 2, due October 11, ... 960 00 No. 3, due October 11, ... 480 00 James Thompson, 20th, No. 4, due October 22, John Ramsay, No. 5, due November 10, Ross & Son, 27th, No. 6, due November 30, 2,400 1,972 2,619 9,632 Insurance, Dr. to James Risk^ 20th, for Premium and PoUcy on Hemp, ^ the Vrow, from Riga, the sum insured being 5,760 00, . 106 56 162 JOURNAL. — SET II. New York, September, 1836. Cash, Dr. to Bills ReceivablCf 13th, No. 4, J. Stirling, Sundries, Dr. to Cash, As ^ Cash Book, Folio 1. Ship Mars, 4th, our 1-6 share, Bills Payable, 12th, No. 1, Murray & Co Indigo in Co. 15th, for 1,696 lbs., on joint account with J. Ramsay, r B. P Cotton, 20th, freight, &c. r Ann, Thomas Jones, 20th, personal expenses, Charges, 30th, this month, Merchandise, Dr. to Sundries, Purchased this month. To William Irvine, ... 1st, To John Ramsay, .... 2d, To Thomas Ryder, ... 3d, To James Thompson, . . 30th, ....... Sundry Accounts, Dr. to Sundries, 13th, for Goods shipped ^ the Spooner, for Jamaica. — Drs. — John Stirling, 2,306 08 Murray & Co 4,087 00 6,393 08 — Crs. — To Merchandise, 5,663 40 To Charges, 385 28 To Commission, 184 80 To Insurance, 159 60 480 00 2,160 00 960 4,477 446 144 76 8,264 2,280 1,698 1,684 14,928 36 48 56 40 08 JOURNAL. SET H. 153 60 New York, Septemberj 1836. Insurance, Dr. to James Riskj 13th, for Premium and Policy on 6,720 00, \ Spoonei*, 159 Hemp in Co., Dr. to Ross &f Son, 15tb, for 25 tons, ^ Vrow from Riga, as ^ Invoice. Our h of which is, 3,619 Dawson & Co., Dr. to Indigo in Co. 19th, for 1,696 lbs. rS) 3 00 r lb 5,088 E. Robinson, Dr, to Cotton, 20th, for 20 Bales, ^p- S. B R. Mason, Dr, to Sundries, To Bills Payable, 20th, No. 7, favor Tyson, 3 535 To Adventure to New Orleans, 20th, net proceeds of goods ^ Fame, .... j ggg 1!L 4 80 00 20 Indigo in Co., Dr. to Sundries, 30th, for the following as ^ Sales Book. 1 To Interest, .... on cost, 20 1 To Commission, . . . 2 ^ cent, 101 2 To Charges, .... at delivery, 9 To John Ramsay, . . his ^ gain, 242 1 To Profit and Loss, . , our k " 242 76 62 16 16 610 56 20 154 JOURNAL. SET II. New York, October, 1836. Cash, Dr. to Sundries, As ^ Cash Book, Folio 1. 10 To Dawson & Co. 19th, in full, 2 To Bills Receivable, 20th, No. 2, J. Thompson, .... 9 To Vanderpoole & Co. 24th, Bill negotiated 20th, .... 5,088 960 3,782 9,830 Sundries, Dr. to Cash, As ^ Cash Book, Folio 1. 9 John Ramsay, 1st, in full, 3 Bills Payable, 11th, No. 2, Murray & Co. . . . 960 00 No. 3, // ... 480 00 22d, No. 4, J. Thompson, . . . 2,640 00 No. 7, R. Mason, 3,625 60 3 Consignment Charges, 29th, freight, duty, &c. W' Cuba, 6 B. F. Foster, 30th, for personal expenses, 2 Charges, 30th, paid this month, 242 7,705 1,797 144 74 16 9,963 56 Sundries, Dr. to Bills Payable, For Acceptances this month. William Irvine, 4th, No. 8, due December 10, James Thompson, 11th, No. 9, due December 12, . . 2,400 00 No. 10, '' n 14, . . 2,400 00 John Ramsay, 19th, No. 11, due December 12, Insurance, Dr. to James Risk, 20th, for Premium and Policy, on Sugar ^ Aurora, for Rotterdam, 2,280 4,800 1,698 8,778 152 36 00 48 84 64 JOURNAL. ■SET n. 156 New York, Odoher, 1836. 6 Sundry Accounts, Dr. to Sundries, 20th, for Sugar ^ Aurora, as ^ Invoice Book. — Z>r5.— 9 9 4 John Ramsay, his J, . . . 3,771 65 Vanderpoole & Co. . . . their ^, . . . 3,77165 Adventure to Rotterdam, . our J, . . . 3,771 66 11,314 96 ^Crs.- 5 2 1 2 To Merchandise, 40 Hhds. Sugar, . . . 10,598 80 To Charges, . . at shipping, 203 28 To Commission, on Goods and Insurance, 360 24 To Insurance, . Premium and Policy, . 152 64 11*^11 ll,Oi^ tJ\} 9 9, Vanderpoole & Co., Dr. to Charges, 20th, for expenses on Bill, 10 75 4 Sundries, Dr. to Cotton, For Sales 75 Bales. 8 8 E. Robinson, 24th, for 25 Bales, 1,686 3,381 72 60 Pringle & Son, 24th, for 50 Bales, 5,068 32 6 James Risk, Dr. to Sundries, 25th, for adjustment of total loss of Hemp ^ Vrow, from Riga. 2 1 7 4 To Insurance, . . Premium and Policy, .... To Commission, . on Insurance and settlement. To Ross & Son, . their ^ net recovery, .... To Hemp in Co. . our h " " .... 106 144 2,740 2,740 56 08 32 32 5,731 28 156 JOURNAL. SET 11. New York, jYovember, 1836. Cash, Dr. to Sundries, As ^ Cash Book, Folio 1. To Merchandise, 20th, drawback on Sugar, . . . To E. Robinson, 25th, in full for Cotton, .... To James Risk, 25th, in full, To Bills Receivable, 25th, No. 3, J. Thompson, . . . Sundries, Dr. to Cash, As ^ Cash Book, Folio 1. Charges, 4th, on Shipment f Spooner, . . . 339 72 6th, n do. ^ Aurora, . . . 164 70 11th, Rent, &c. r P. C. B 120 00 30th, Postages, &c 69 72 Bills Payable, 10th, No. 5, J. Ramsay, 1,972 96 30th, No. 6, Ross & Son, .... 2,619 80 John Reed, 11th, for personal expenses, Thomas Jones, 11th, for personal expenses, B. F. Foster, 11th, for personal expenses, Consignment Charges, 20th, duty, freight, &c. w Cuba, . 2,607 78 29th, do. do. do. . . 1,523 42 Ross & Son, 25th, remitted them, Sundries, Dr, to Sales of Consignments, For Sales of 30 Puncheons of Rum, f- Cuba. Fenn & Park, 6th, 26 Puncheons, . (a)^ months, John Black, 12th, 4 Puncheons, . . ^ 3 months, 4,329 60 1,705J20 4,970 94 ],680|00 12,685 74 4,592 240 144 96 4,13] 2,712 12,610 14 76 00 00 00 20 40 50 3,207 461 3,668 JOURNAL. ■SET ir. 167 New York, JVbvember, 1836. Bills Receivable, Dr. to Sundries, For Bills received this month. To E. Robinson, 20th, No. 5, due December 28, . . To Vanderpoole & Co. 20th, No. 6, due January 23, . . . To Pringle & Son, 26th, No. 7, due January 29, . . . Sales of Consig>'me]\ts, Dr, to Sundries, 25th, for adjustment of Sales of 30 Puncheons Rum ^ Cuba, as ^ S. R To Insurance, premium, &c. . . . To Consignment Charges, freight, &c To Commission, .... on Insurance and Sales, To John Stirling, .... net proceeds, . . . James Thompson, Dr. to Bills Receivable, 25th, for No. 6, on Vanderpoole, due Jan. 23, Vanderpoole & Co., Dr. to Sundnes, 30th, for two-thirds of proceeds of Sales ^ Aurora, viz: To John Ramsay, .... his | proceeds. To Adventure to Rotterdam, our J " Ross & Son, Dr. to Sundries, 30th, for expenses on Bill remitted them. To Commission, To Charges, h r cent, . . for Brokerage, 1,686 72 2,400,00 3,38160 7,468 32 4156 454 198 100 36 3,071 3,668 80 70 2,400 00 4,428 00 4,428 00 8,856 00 13,56 1436 27 92 158 JOURNAL. SET IL New York, December, ]836. I 5 Cash, Dr. to SundHes, As ^ Cash Book, Folio 9. To Interest, 2d, discount from T. Ryder, To Bills Receivable, 20th, / No. 9, Rees & Co. . . No. 10, Curtis & Co. . 27th, No. 5, E. Robinson, . . To Ship Mars, 25th, for one-sixth gain, . . 2,400 00 Sundries, Dr. to Cash, As ^ Cash Book, Folio 2. John Ramsay, 1st, in full, Thomas Ryder, 2d} in full. Bills Payable, 10th, 12th, 14th, No. 8, W. Irvine, 2,280 36 No. 11, J. Ramsay, .... 1,698 48 No. 10, J. Thompson, . . . 2,400 00 John Stirling, 13th, paid Gray, . . . Interest, 20th, discount on Bills, B. F. Foster, 20th, private account, . Consignment Charges, 30th, Charges, 30th, on Produce r Cuba, postages, &c. . . . Bills Receivable, Dr. to Sundries, For Bills received this month. To Fenn & Park, 1st, No. 8, due January 29, To Vandei-poole & Co. 1st, No. 9, due January 30, No. 10, due January 30, No. 11, due February 4, To John Black, 30th, No. 12, on J. Caution, . 2,400 00 2,400 00 ' ],656 00 51 84 6,486 446 6,985 1,684 6,378 960 26 96 33 62 9,839 3,207 6,456 276 32 54 9,940 22 JOURNAL. — SET II. 159 New York, December^ 1836. John Ramsay, Dr. to Sundries, 1st, as ^ Account Current. To Interest, To Commission, Sundries, Dr. to Sales of Consignments^ For Sales of Produce consigned ^ Cuba, as ^ Sales Book. James Thompson, 20th, 10 Hhds. Sugar, Atwood & Co. 21st, 30 Hhds. Sugar, , Dawson & Co. 23d, ]0 Tierces Coffee, James Brown & Co. 23d, 40 planks Mahogany, James Thompson, Dr. to Sundries, To Bills Receivable, 24th, for Nos. 8 and 11, To Interest, 24th, for discount on settlement, . . . , 10 9 7 10 10 7 6 Sales of Consignments, Dr. to Sundries, For adjustment of Sales of Produce ^ Cuba, as ^ S. B. To John Stirling, 31st, lb Hhds. Sugar, due Jan. 20, .... To Murray ^ Co. 31st, 30 Hhds. Sugar, 3,824 31 10 Trcs. Coffee, 1,108 86 40 pinks. Mahogany, . ... 341 86 To Insurance, 31st, Premium and Policy, To Consignment Charges, 31st, duty, freight, &c To Interest, 31st, on Cash advanced, To Commission, 31st, on Sales and Insurance, 36 24 22!03 58 27 2,622 7,560 1,844 672 12,698 54 4,863 54 242 36 90 5,105 1,411 5,275 153 5,506 39 312 12,698 160 JOURNAL. SET II. 11 New York, December, 1836. J. Stirling, Dr. to John Black, 31st, for loss by the latter's failure, Sundry Accounts, Dr. to SundrieSf As ^ Account-Current Book. — Drs. — John Stirlmg, 31st, for Interest, Commission, and Murray & Co. 31st, for Interest, Commission, and 25 46 84 82 110 28 — Crs. — To Interest, 75 24 To Commission, 21 60 To Charges, 13 44 1 Sundries, Dr. to Interest, ? 5 John Reed, 31st, for Interest on private account to date, . 5 Thomas Jones, 31st, for do. do. do, 5 Ship Mars, 31st, for Interest on our one-sixth, .... Sundries, Dr. to B. F. Foster, 31st, for 6 months' salary due him as manager. John Reed, . Thomas Jones, Interest, Dr. to Stock, Interest on joint capital to 31st inst. JOURNAL. SET II. 161 New York, December^ 1836. 12 10 2 2 5 5 5 6 6 7 10 10 10 Profit and Loss, Dr. to Sundries, To close the following Accounts to 31st inst. To Charges, To Adventure to New Orleans, Sundries, Dr. to Profit and Loss, For gain on the following Accounts to 31st inst. Commission, Adventure to Rotterdam, Hemp in Co Cotton, Ship Mars, Interest, Balance, Dr. to Sundries, For closing all Accounts which balance in our favor, to 31st inst. To Cash, To Bills Receivable, To Ship Mars, * . . . , To John Reed, To Thomas Jones, To B. F. Foster, To Murray & Co To Atwood & Co To Dawson & Co To James Brown & Co Amount of our effects, .... Sundries, Dr. to Balance, For closing all Accounts wherein the balances are against ns. Bills Payable, John Stirling, Ainount of our delta, 564 110 675 656 120152 612 12 316 57 3,581 3,658 2,064 630 387 96 1,296 7,560 1,844 672 21,789 2,400 1,966 4,366 00 21 LEDGER.— -Set II INDEX. Adventure to New Orleans, . 3 Adventure to Rotterdam, . . 4 Atwood & Co 7 B Bills Receivable, 2 Bills Payable, 3 Black, John ....... 9 Brown, James & Co. ... 10 Balance, 10 Commission, 1 Charges, 2 Cash, 2 Consignment Charges, . . . . 3 Cotton, 4 Dawson & Co. 10 Foster, B.F 6 Fenn&Park, 7 H Hemp in Co 4 I Interest, 1 Insurance, 2 Indigo in Co 4 Irvine, William ..... 8 J Jones, Thomas 5 M Merchandise, 5 Mason, Robert 6 Murray & Co 6 P Profit and Loss, 1 Pringle & Son, 8 R Reed, John 5 Risk, James 6 Ross & Son, 7 Robinson, E 8 Ryder, Thomas 8 Ramsay, John 9 S Stock, 1 Sales Consignments, .... 3 Ship Mars, 5 Stirling, John 7 T Thompson, James .... 9 V Vanderpoole & Co 9 LEDGER. •SET II. 165 Dr. Stock. Cr. 1836 Dec. 31 To Balance, 17,422 17,422 1836 July 1 Dec, 31 31 By Cash, . . . . By Interest, . . . By Profit and Loss, 14,400 432 2,590 Dr. Profit and Loss. Cr. 1836 Dec. 31 31 To Sundries, To Stock, . 675 2,590 1836 Sept. 30 Dec. 31 By Indigo in Co. By Sundries, . 242 3,024 3,266 34 Dr. Interest. Cr. 183C Dec. 20 31 31 To Cash, . . . . To Stock, . . . . To Profit and Loss, 516 85 1836 Aug. 20 SepL 30 Dec 2 1 24 31 31 31 By Cash, By Indigo in Co. . . By Cash, By J. Ramsay, . . . By J. Thompson, . . By Sales Consignm'ts, By Sundries, . . . . By Sundries, . . . . Dr. Commission. 1 7 4 20 9 51 10 36 10 242 10 39 11 75 11 43 516 85 Cr. 1836 Dec. 31 To Profit and Loss, 1836 1,261 17 Sept. 13 30 Oct. 20 25 Nov. 25 30 Dec. 1 31 31 1,261 By Sundries, . . . . By Indigo in Co. . . By Sundries, .... By J. Risk, . . . . By Sales Consignm'ts, By Ross &, Son, . . . By J. Ramsay, . . . By Sales Consignm'ts, By Sundries, . . . . 3 184 4 101 6 360 6 144 8 100 8 13 10 22 10 312 11 21 1,261 166 LEDGER ■SET II. Dr. Insurance. Cr. 1836 July 18 Aug. 20 Sept, 12 Oct. 20 To James Risk, , To James Risk, . To James Risk, To James Risk, 234 106 159 152 1836 July 4 Sept. 13 Oct. 20 25 Nov. 25 Dec. 31 By Adventure to New Orleans, . . . . By Sundries, .... By Sundries, . . . . By J. Risk, .... By Sales Consignm'ts, By Sales Consignm'ts, 1 39 3 159 6 152 6 106 8 41 10 1 153 653 Dr. Charges. Cr. 1836 Aug. 31 Sept, 30 Oct. 30 Nov. 30 Dec, 30 To Cash, To Cash, To Cash, To Cash^ To Cash, 368 72 1836 July 4 Sept. 13 30 Oct. 20 23 Nov. 30 Dec. 30 31 By Adventure to New Orleans, .... By Sundries, .... By Indigo in Co. . . By Sundries, .... By Vanderpoole & Co. By Ross & Son, . . . By Sundries, .... By Profit and Loss, . 80 385 3 203 10 14 13 564 1,275 Dr. Cash. Cr. 1836 July 1 Aug. 30 'Sept. 13 Oct. 24 Nov. 25 Dec. 25 To Stock, .... To Sundries, . . . To Bills Receivable, To Sundries, . . . To Sundries, . . . To Sundries, . . . 14,400 487 480 9,830 12,685 6,985 44,868 1836 Aug. 30 Sept. 13 Oct. 30 Nov. 25 Dec. 30 31 By Sundries, By Sundries, By Sundries, By Sundries, By Sundries, By Balance, 9,963 12,610 3,581 44,868 Dr. Bills Receivable. Cr. 1 480 GO 3 480 00 5 960 00 7 1,680 00 8 2,400 00 9 6,486 72 10 4,863 54 12 3,658 28 21,008 54 1836 July 9 Aug. 21 Nov. 26 Dec. 30 To J. Stirling, To Sundries, . To Sundries, . To Sundries, . 1836 1 1 480 00 Aug. 30 2 3,120 00 Sept. 13 8 7,468 32 Oct. 20 9 9,940 22 Nov. Dec. 25 25 27 27 27 21,008 54 By Cash, By Cash, By Cash, By Cash, By James Thompson, . By Cash By James Thompson, . By Balance, . . . . LEDGER. •SET 167 Dr, Bills Payable. Cr. 18bb Sept. 12 Oct. 22 Nov. 30 Dec. 14 31 To Cash, . To Cash, . To Cash, . To Cash, . To Balance, 7,705 4,592 6,378 2,400 I 22,037 183b Aug. 27 Sept. 20 Oct 19 By Sundries, By R. Mason, By Sundries, 9,632 3;625 8,778 22,037 20 Dr. Consignment Charges. CV-. 1836 Oct. 29 Nov. 29 Dec. 30 To Cash, To Cash, To Cash, 1,797 4,131 33 5,961 1836 Nov. 25 Dec. 31 By Sales Consignm'ts, By Sales Consignm'ts, 454 5,506 5,961 Dr. Sales of Consignments. Cr. Nov. 25 Dec. 31 To Sundries, To Sundries, 3,668 12,698 16.367 1836 Nov. 12 Dec. 23 By Sundries, By Sundries, 3,668 12,698 24 Dr. Adventure to New Orleans. Cr. July 4 To Sundries, 2,093 2,093 1836 Sept. 20 Dec. 30 By R. Mason, . . By Profit and Loss, 4 12 1,982 5 110 { 2,093 168 LEDGER. •SET II. Dr. Adventure to Rotterdam. Cr. 1836 Oct. 20 Dec. 31 To Sundries, . . . To Profit and Loss, 3,771 656 4,428 00 1836 Nov. 30 By Vanderpoole & Co. 4,428 Dr. Hemp in Co. Cr. Sept. 15 Dec. 31 To Ross & Son,. . To Profit and Loss, 2,619 120 1836 Oct, 25 By J. Risk, 2,740 2,740 32 Dr. Indigo in Co. Cr. 1836 Sept. 15 To Cash, . . To Sundries, . 610 5,088 1836 Sept. 19 By Dawson & Co. 5,088 5,088 Dr. Cotton. Cr. 1836 July 20 Sept. 20 Dec. 31 To Sundries, . . . To Cash, . . . . To Profit and Loss, 5,714 446 612 6,773 52 1836 Sept. 20 Oct. 24 By E. Robinson, By Sundries, . . 1,705 5,1 6,773 LEDGER. SET II. 169 Dr. Merchandise. Cr. Itf36 July 2 Sept. 30 To J. Ramsay, To Sundries, . 1.972 20,59J 22,564 1836 July 4 Sept. 13 Oct. 20 Nov. 20 By Adventure to New Orleans, . . . . By Sundries, . . . . By Sundries, .... By Cash, 1,972 5,66:5 10,598 4,329 22,564 Dr. Ship Mars, (our one sixth.) Cr. 1836 Sept. 4 Dec. 31 31 To Cash, . . . . To Interest, . . . To Profit and Loss, 2,160 34 316 2,510 1836 Dec. 25 31 By Cash, . By Balance, 446 2,064 2,510 76 Dr. John Reed. Cr. 1836 Aug. Nov. Dec. To Cash, . . . To Cash, . . . To Interest, . . To B. F. Foster, 840 240 630 1836 Dec. 31 By Balance, 630 630 00 00 Dr. Thomas Jones. Cr. 1836 Sept. 20 Nov. 11 Dec. 30 To Cash, . . To Cash, . . To Interest, . To B. F. Foster, 22 J 836 Dec. 31 By Balance, 387 387 00 00 170 LEDGER. SET II. Dr. B. F. Foster. Cr. 1836 Oct 30 Nov. 11 Dec. 20 To Cash, To Cash, To Cash, 336 1836 Dec. 30 31 By Sundries, By Balance, 240 336 00 Dr. James Risk. Cr. Oct. 26 To Sundries, I I 5,73] 5,731 1836 July 18 20 Aug. 20 Sept. 12 Oct. 20 Nov. 25 By Insurance, By Cotton, . By Insurance, By Insurance, By Insurance, By Cash, . . . ^ 1 106 2 106 4 159 5 152 7 4,970 5,731 56 64 Dr. Robert Mason. Cr. 1836 Sept. 30 To Sundries, 1836 5,607 88 July 20 By Cotton, 1 5,607 Dr. Murray & Co. Cr. 1836 Aug. 9 Sept. 13 Dec. 31 To Bills Payable, To Sundries, . . To Sundries, . . 2,400 4,087 84 6,571 1836 I Dec. 31 By Sales Consignm'ts, 31 By Balance, . . . , 5,275 1,296 6,571 LEDGER. SET II. 171 Dr. Jon^ Stirling. Cr. 183b I Sept. 13, To Sundries, Dec. 13 To Cash, . 31 To J. Black, 31 1 To Sundries, I To Balance, 2,306 960 184 25 1,966 5,442 1836 July 9 Aug. 21 Nov. 25 Dec 31 By Bills Receivable, . By Bills Receivable, . By Sales Consignin'ts, By Sales Consignm'ts, 48000 480 00 3,071 80 1,411110 5,442 90 Dr. Ross & Son. Cr. 1836 Aug. 27 Nov. 25 30 To Bills Payable, To Cash, . . . To Sundries, . . 2 7 8 2,619 2,712 27 .0 40 92 12 1836 1 Sept 15 Oct. 25 5,360 By Hemp in Co. By J. Risk, . 4l 6 2,619 2,740 5,360 Dr. Atwood & Co. Cr. 1836 1836 Dec. 21 To Sales Consignm'ts, 10 7,560 00 Dec 31 By Balance, 12 7,560 00 Dr. Fenn & Park. Cr. 1836 1836 Nov. 6 To Sales Consignin'ts, 7 3,207 54 Dec. 1 By Bills Receivable, . 9 3,207 54 172 LEDGER. SET II. Dr. William Irvine. Cr. 1836 Oct. 4 To Bills Payable, . . 5 2,280 36 1836 Sept. 1 By Merchandise, . . 3 2,280 36 Dr. Pringle & Son. Cr. 1836 Oct. 24 To Cotton, .... 6 3,381 60 1836 Nov. 26 By Bills Receivable, . 8 3,381 60 Dr. E. Robinson. Cr. 1836 Sept. 20 Oct. 24 To Cotton, .... To Cotton, .... 4 6 1,705 1,686 20 72 92 1836 Nov. 25 20 By Cash, By Bills Receivable, . 7 8 1,705 1,686 20 72 3,391 3,391 92 Dr. Thomas Ryder. Cr. "^' 1836 Dec. 2 To Cash, 9 1,684 56 1836 Sept. 13 By Merchandise, . . 3 1,684 56 LEDGER. SET II. 173 Dr. John Ramsat. Cr. 1836 Aug. 20 Oct. 1 19 20 1 31 Dec. To Bills Payable, To Cash, . . . To Bills Payable, To Sundries, . . To Cash, . . . To Sundries, . . 1,972 242 1,698 3,771 598 58 8,341 1836 July 2 Sept. 2 30 Nov. 30 By Merchandise, . . By Merchandise, . . By Indigo in Co. . . By Vanderpoole & Co. 1 1,972 3 1,698 4 242 8 4,420 8,341 Dr. James Thompson. Cr. 1836 Aug. 20 Oct 11 Nov. 25 Dec. 20 24 To Bills Payable, . . To Bills Payable, . . To Bills Receivable, . To Sales Consignm'ts, To Sundries, . . . . 2,640 4,800 2,400 2,622 5,105 17,568 1836 Aug. 20 Sept. 30 By Bills Receivable, By Merchandise, . 2,640 00 14,928 40 17,568 40 Di'. Vanderpoole & Co. Cr. 1836 Oct. 2 23 Nov. 30 To Sundries, To Charges, To Sundries, 3,771 10 8,856 12,638 1836 Oct. 24 Nov. 20 Dec. 1 By Cash, . . . . By Bills Receivable, By Bills Receivable, 3,782 2,400 6,456 12,638 Dr. John Black. Cr. 1836 Nov. 12 To Sales Consignm'ts, 1836 Dec. 30 3] By Bills Receivable, By J. Stirling, . . 276 184 461 174 LEDGER. SET II. 10 Dr. Dawson & Co. Cr. 183(j Sept. 19 Dec. 23 To Indigo in Co. . . To Sales Consignm'ts, 4 10 5,088 1,844 00 04 04 1836 Oct. 19 Dec. 31 By Cash, By Balance, .... i 5,088 1,844 00 04 04 1 6,932 6,932 1 Dr. James Brown & Co. O. 1836 Dec. 23 To Sales Consignm'ts, 10 672 00 1836 Dec. 31 By Balance, .... 12 672 00 Dr. Balance. Cr. 1836 Dec. 31 To Sundries, . ; . . 12 21,789 69 69 1836 Dec. 31 31 By Sundries, .... By Stock 12 1 4,366 17,422 8l| 21,789 21,789 69 TRIAL •BALANCE. 175 TRIAL BALANCE FOR SET IL December 31, 1836. Stock, Profit and Loss, . . . . Interest, Commission, Charges, Cash, ....... Bills Receivable, . . . . Bills Payable, Adventure to New Orleans, Adventure to Rotterdam, . Hemp in Co., Cotton, Ship Mars, John Reed, Thomas Jones, . . . , B. F. Foster, Murray & Co., . . . . John Stirling, Atwood & Co., . . . . Dawson & Co., . . . . J. Brown & Co., . . . . — Drs. - Totals . , — Crs.— Totals. 1 « (( 14,832:00 tc (( 242 16 458 96 << 516 3,261 85 17 458 96 16,852 1H 1,275 72 711 01 44,868 68 41,287 10 21 ,008 54 1 17,350 26 19,637 20 22,037 20 86,790 14 81,385 ^7 2,093 10 I 1,982 28 3,771 66 4,428 00 2,619 80 2,740 32 6,161 40 6,773 52 14,645 96 15,924 1^ 2,194 62 446 76 630 00 « it 387)00 ti « 336 00 240 00 1 3,547 6^ ' 686 76 6,57182 5,275 03 3,476 02 5,442 90 7,560,00 « « 6,932 04 672 00 5,088 (I 00 25,211 88 1 15,805 93 130,654 56 130,654 56 The Trial Balance is merely a, statement of the amount of the Drs. and Crs. in the Ledger, and is used to prove the posting of that book. See remarks, page 46. The principle upon which the THcd Balance is founded, is that for every sum posted to the Dr. side of the Ledger, a like sum is entered on the Ci\ side ; consequently the aggregate amount of the Drs. and Crs. must cor- respond, if the books are correct. The following are the most usual mistakes in posting which rfo not affect the Trial Balance, viz. 1. A sum entered to a wrong account; but on the same side of the Ledger as that to which it belongs. 2. A Journal entry wholly omitted. 3. A Journal entry twice posted. The most effectual check against the above, or any similar mistakes, is a comparison of the books by hco per- sons. One has the Journal, and reads the Ledger-folio, the title of the ac- count, and the Drs. and Crs. ; while the other turns to the account in the Ledger, and marks off the entry with a dot, if correct. When all the accounts have been thus examined, glance over the Ledger to observe if the mark of comparison be affixed to each entry. If not, turn to the entry in the Journal which had not been marked, and see if it be right. 176 BALANCE SHEET. SET II. Dr. PROFIT AND LOSS SHEET. Cr. To Charges, ....*. To Advent, to New Orleans, Net Gain, 564 110 675 2,590 3,266 By Commission, . . By Adv'r. to Rotterdam By Hemp in Co. , . By Cotton, .... By Ship Mars, . . By Interest, . . . By Profit & Loss, F Ledger, 1,261 656 120 612 316 14 57 89 242 16 3,266 34 Dr. BALANCE SHEET. Cr. Effects. — To Cash on hand. To Bills Receivable, To Ship Mars, . To John Reed, . To Thomas Jones, To B. F, Foster, . To Murray & Co. To Atwood & Co. To Davidson & Co. To J. Brown & Co. 3,581 58 3,658 28 2,064 00 630 00 387 00 96 00 1,296 79 1,844 04 7,560 00 672 00 21,789 69 Debts. By Bills Payable, No. 9, . By J. Stirling, .... Am't of our debts. By Stock, Net Capital, * This amount is transferred to the Stock Account, paofe 1, and is not entered in the Journal with the other Balances. See remarks, page 50. 2,400 1,966 4,366 17,422 81 21.789 00 69 The Trial Balance, Profit and Loss, and Balance Sheets, never appear in a merchant's books ; they are here inserted for the assistance of the learner. BILL BOOK.—Set II 23 178 BILL BOOK. SET a so o o o %J m 02 OJ o a, 0^ a< TS B s . . a o O O T3 "d O X ^ 6 ^ ^ 1— 1 s o O S7 (DO 0) :; :; ^ 1 . TT< 1 rr 05 :c ^ ■^ OJ -^r ''t CO C^ Oi 1 1—1 CO -h'^ of to !<" 1 TO'^oioTr-T cTI 1—1 ^ ICOO 00 CCOJ 000r:<»0 e . CO «^ c^^(^<^ (Mj^C^C^ OICOCO ^ 00 bJO o o 57 iri^ t4i > c a a ccasfl c3 o O^ o oo ooooo 1 o ££S a sa esaaa o COTtOi C^l (MCO OKMC^f^KM 05 00 C^ —t »0 OO COt^t^^tM r-^CiOi Cv? OJOt OJC^CM ^ 2 00 >> ^ 3 § c ^o ;?; C a s O 5 3 eg B 1 fa J. Mill, W. Bell, Lloyd & Co. Himself, Vanderloo, Themselves, Themselves, Rees & Co. I Curtis & Co. Jones & Co. J. Caution, _r d 6 6 6 s Thompson s Thompson Stirling, Edward RobinsoE Vanderpoole & C Pringle & Son, Fenn & Park, Vanderpoole & C Vanderpoole & C Vanderpoole & C John Black, a bB T3 5 ^ E2 2 Si c O a a o • Oi S - ri O ^CO i-lr-lrtr-O CO to Oi - 3 ill lis 1 Denni Jones, LeFe S a ^aa^s^ 1 G* (M ^ o» a Tl^Oi CO -< --< ^ Oi rt CO • +^ «3jy--os " QJ is mO 'Z Q CO CO 1 CO QO •^ *; Ci c» t^ CO CO "^ QO § 001 05 ot to QO C» 1 COOQO ^i^-H CO (^ QOOOCi t^ c»" « s- ^^-;::gl2^ §i 0(M -^ (M T— » I— 1 1-^ r^ ^« Sfti . . g. tf 03 :: :: 5 c«o ;?; Q ^j^+j-^j^ J3 -C -Q bjO be to • ji *S "3 'm m m m i£ :d i^ ^ s 00 m tn tS ":3 "3 flT -BS-B-B 1 >^ >> >% a S fl rt^^ Sop a ^00 ^ ° ^ » CO CC C« COCO P " a a G a 0000 1 sssa Ci 05 05 Ci l> t^ l> Ci ^ Ci B^ CO r-l C^ (M S|5> ^ *5 . *^ i qT s <1 iX2 020 m s; d 2' <^ 1 § d ^ ^ C C *r iT 03 03 2 ^ ^ - >^ fc n; :j3 03 03 ^*< t-i 0000 2 M 2 2 H^^WffiSd d •« •« .V fl fl g .rSS a i 555 If g Irvine homp 'hornp msay, i ^^^^^-3 i S^^^ §»!!»« l§ls^i ^ • S 03 03 rt ^S^^4p^ p^ >. as 3 • a> Ci Ci r>. ^ « Oi it otcviw a i-HfHrH •^ o •>• <5 ^ ^ •* d »H(MC0rj«U5CO t^ QOCi r-l ^ rH fH AN IMPROVED JOURNAL, COMBINING SIMPLICITY AND ACCURACY IMPROVED JOURNAL. In the following pages the transactions which compose the Cash Book and Day Book for Set I., are journalized upon an improved plan, which combines in a great degree the simplicity of Single, with the advantages of Double Entry. This plan is now followed by many extensive mercantile houses ; and perhaps no other form of a Journal, possessing equal facilities, could be devised. It is applicable to any business where entries of the same kind occur frequently, such as booksellers, retail dealers, jobbers, &ic. The improvements which have from time to time been effected in Book-keeping, do not comprehend any change in the principles of Double Entry ; but only in the form and arrangement of the books. Explanation. — This Journal is ruled with three columns for dollars and cents on the Dr. side, and three similar columns on the Cr. side, between which the transactions are entered in the usual technical form. The " Cash" and " Merchandise" columns exhibit the amount of Cash received and paid, and of Goods bought and sold ; these amounts are carried to the Ledger only once a month, which saves time, and prevents the merchandise and cash accounts from extending to a great length, which by posting each entry singly, is unavoidable. The personal accounts, and all other entries, except cash and merchandise, are to be arranged in the inner columns, headed " Sundries;" the Drs. in the left, and the Crs. in the right hand column; — these are to be posted daily in the usual manner. By adding the columns headed Merchandise, Cash, and Sundries, the accuracy of the Journal is ascertained ; for if correct, the aggregate of the Drs. must be equal to that of the Crs. In this specimen, the Cash is journal- ized daily; but it might with equal propriety, be entered weekly or monthly. IMPROVED JOURNAL. 183 Drs. Boston, Januat-y 1, 1836. Crs. 1,895 63 1,895 63 187 5,187 58 1,575 1,575 iSundries 4,800 105 105 45 5.952 5,187 1,895 13,035 450 63 120 00 Cash, Dr. to Stock, For capital in trade, Merchandise. Dr. to J. Andrews fy Co. Bought, as ^ Invoice, Commercial Bank, Dr. to Cask, Deposited this day, .... Aaron Brown, Dr. to Merchandise, 14 yds. Cloth, . (g) 3 25, . . 45 50 8 // do. . rg) 7 50, . . 60 33 J. Andrews & Co. Dr. to Bills Payable, For No. 1, due March 15, ... . 30- Bills Receivable, Dr. to A. Brown, For No. 1, due March 1, .... Cash, Dr. to Merchandise, For Cash Sales this month, Charges, Dr. to Cash, Paid this month, . Monthly totals. - . Sundries, . . Cash, . . . Merchandise, Proof, FeJrwary 2, 1836.- J. Andrews & Co. Dr. to Cash, Paid them on account, . . . Sundries 5,000 00 63 105 4,845 293 13.035 Charles Drcmmond, Dr. to Merchandise, 8 yds. Cassimere, (S) 2 75, . 22 00 IJ // Bro. Cloth, ® 7 50, . 14 06 B. Canfield, Dr. to Merchandise, 48 yds. Cassimere, . . @ 2 50, . Merchandise, Dr. to D. Evans, For amount his Invoice, . . B. Canfield, Dr. to Merchandise, 62yd3. Toilinette, . . ® 1 00, Amounts forward. 1,575 1,575 Cash. Mdze. 4.800 105 50 187 58 45 4,845 450 00 06 120 00 00 450 218 184 IMPROVED JOURNAL. Drs. Boston, February 10, 1836. — Crs.- Mdze. 1,575 81 150 00 Sundries. 668 37 50 120 00 500 34: 150 00 500 87 375 83 175 35 1,785 3,511 50 1,734 1,180 3,511 Amounts forward. Edward Ford, Dr. to Merchandise^ 15 yds. Cassimere, . . fS) 2 50, Cash, Dr. to Commercial Bank, border, Private Account, Dr. to Cash, For Personal expenses, . . . 12- Cash, Dr. to B. Canfield, On account, .... Edward Ford, Dr. to Merchandise^ 10 yds. Cloth, . (S) 5 50, . . 55 00 15 // do. . © 8 25, . . 123 75 15- Cash, Dr. te Commercial Bank, border, D. Evans, Dr. to Cash, On account, . . . C Drummond, Dr. to Merchandise, 87^ yds. Toilinette, . r® 1 00, -20- SuNDRiES, Dr. to C. Drummond, Cash, on account, . . Profit and Loss, . for discount, . . ■21. Merchandise, Dr. to Cash, Paid for Cotton Checks, B. Canfield, Dr. to Merchandise, 12 yds. Cloth, . ® 5 25, . . 63 00 14 ff do. . ', or do some other act, and he, in consideration thereof, promises to do a certain act, &c. National Debt, is a debt due by any whole I)olitical community, as represented by their egislature and government. Net Proceeds, the sum which goods produce after every deduction is made. Net Weight, the weight of any commodity, after every deduction is made, and lor which the price is charged. Non Claim, is where a creditor neglects to make his claim within a proper time, m which case he cannot enforce his demand. Notary Public, a person duly appointed to attest deeds and writings; he also notes or protests bills of exchange, inland and foreign, and promissory notes, when refused or re- turned. Note, a memorandum, or a written order for money. Noting, is the act of a notary when a bill or draft is not duly honored, or, in other words, refused acceptance or payment. Obligation, is a bond containing a penalty with a condition annexed, either lor the pay- ment of money, performance of covenants, or the like. Obligee, he to whom a bond is made pay- able. Obliger, the person who enters into a bond, or he by whom it is to be paid. Office, a place where business is transacted. Omnium, a term used among stock-job- bers, to express all the articles included in the contracts between government and the origi- nal subscribers to a loan. Order, a direction from one house to another to effect certain purchases, &c. upon limited or unlimited conditions. Puck or Package, any quantity of goods tied up for carriage. 'I'he latter term also denotes the charge made for lying up the goods. Packer, a person who carries on the business of packing goods. Par of Exchange, is the intrinsic value of the n.oney of one country, compared with that of another, with respect both to the weight and fineness. Parcel, a term applied both to small pack- ages of wares, and to large lots of goods. In this last sense, "10 hhds. of sugar, or more, if bought at one price, or in a single lot, ar^ denominated, " a parcel of sugar. ' Partnership, is when two or more persons unite in trade, and agree to participate in the profits or Tosses according to their respective shares in the capital employed in the concern. Part Owners, persons concerned in ship- matters, and who have joint shares therein. Pass in Conformity, or to state in confor- mity, is to acknowledge that an account transmitted is correct. Pierage, money paid for the support of an established pier. Policy of Assurance, the deed or instru- ment by which a contract of assurance is effected. Portage, nioney paid for sailors' wages while in port; also money paid for the use qf a port in shipping or landing goods. Posting, in book-keeping, is the mode of transferring articles from the journal, or the subsidiary books, to the ledger. Premium, the inoney paid an underwriter for insuring the safety of ships, goods, houses, (fee. Price Current, a list of the various articles of merchandise in the market, with the present prices annexed to each. In most of the great commercial cities and towns, lists of this description are generally published once or twice a week. Principal, the capital sum due, or lent, in opposition to interest. It also means the head of a Firm, or commercial house. Pro Forma, a term generally applied to a paper showing the terms or charges attending any particular business, as Pro Forma Ac- count Sales, &c. Promissory Note, a note of hand purporting the payment of a certain sum, at a stated period. Protest, a paper made out by a notary public, declaring a bill has been presented for acceptance or payment, and was refussed. Primage, so much per cent, generally al- lowed to the captain of a ship on the amount of freight. Procuration, the power of using the sig- nature of a house on letters and bills. Quarantine, the time a ship suspected of infection, is restricted from intercourse with the shore ; also certain duties imposed on ships. Quoted on board, means the price for which a merchant agrees to put goods on board, free of expenses of shipping to the buyer. Rebate, is an allowance in the purchase of goods, for prompt payment. Receipt, an acknowledgment in writing of having received a sum of money, or other value; and is either a voucher for an obliga- tion discharged, or one incurred. Respondentia, a contract by vdrich money is borrowed on the security of goods and merchandise, the same as in bottomry on the security of a ship. Reslitution, is that when money has been paid wrongfully or by mistake, the person so paying has a right to demand it back. KXPLANATION OF COMMERCIAL TERMS. 191 Retail, is a dealing in commodities, in small quantities. Returns, a term expressing the value in goods or in money, returned by the consignee of a cargo or parcel of goods to the con- signer : the term also means, a return or re- mittance of bills. Return of Premium, the whole or part of the premium of an insurance which is given back in terms of the Policy. Retiiiltance, a sum of money sent either in bills of exchange, or otherwise, from one house to another. Reneioal of a Bill, is the cancelling a bill or promissory note due, and accepting another at a given date in lieu thereof. Sample, a small quantity of an article at a public or private sale, as a specimen of the commodity. Salvage, a certain allowance due to those, through whose instrumentality property is saved from the perils of the seas, enemies, &c. Schedule, in commerce, the statement of a bankrupt's affairs, delivered by him to the commissioners appointed to investigate his case. SearcJier, an officer of the custom-house, whose business is to search all ships outward bound, to see whether any prohibited or un- customed goods are on board. Sea-vcorthij , is when a ship is, in every respect, fitted for her destined voyage. Seizure, an arrest of some merchandise, movable or other matter, either in conse- quence of some law, or jpxpress order of the government. Set off of Mutual Debts, is where trades- men are mutually indebted, one debt may be set against the other ; and in case any action be brought, notice is to be giveu of the par- > ticular sum or debt intended to be set off against another. j Smuggling, the act of importing or ex- j porting goods without payment of the cus- j toms, or excise duties. SolidUy, the character which a mercantile house bears as to property. j Staple Goods, such as are sold at a staple ; or, the principal produce of a country 5 and also, goods not being liable to perish, as wood; lead, iron, &c. Slock, a fund raised by a commercial com- pany to be employed in trade j in book-keep- ing, it denotes tlie owner, or owners of the books. Stocks is a terra likewise applied to the capitals of banks. Surety, is when one person becomes bound that another shall pay a certain debt, or per- form a certain act. Tally, a cleft piece of wood to score any account or reckoning upon. Tai-e, an allowance for the weight of the bag, box, Ccisk, or other package in which the goods are packed up. Tariff, a table or catalogue containing the names of different kinds of merchandise, with the duties to be paid. Tellers, clerks in public offices, who reckon, receive, and pay money. Tidewaiters, officers employed to see the loading and unloading of ships, in order to prevent contraband trade. Tonnage, the admeasurement of a ship, by which she pays the tonnage duty; or it is her actual capacity for stowage, and is in that case not unfrequently called her burthen. Trustee, a person who has an estate, or money, put or trusted in his hands for the use of another. Umpire, when two arbitrators cannot agree in settling a dispute, a third person is named, who is called an umpire, and whose decision is binding. Underwriters, (persons who insure ships, cargoes, yr other risks, which is performed by writing their names under a policy of in- surance. ^ury, consists in taking more than legal interest for the loan of money. Value, to value, in a mercantile sense, is to draw a bill ; the words " value received," or " value in account," are always mentioned in every bill of exchange. Wharfage, money paid for the use of a wharf. EQUATION OF PAYMENTS AVERAGE TIMES OF PAYMENT To find the average time at which several sums of money due at different periods may be paid, so that no loss shall be sustained by either the debtor or creditor, is called Equating^ or reducing the times of payment to one. For example : — A. owes B. $440, whereof $200 is payable ^p 2 years, $160 is payable in 3J years, and the balance, $8(3, is payable in 4J years. Now at what period me^ B. receive the whole Amount, so that the interest accruing on the sunis jvhich are overdue, may be counter- balanced by the discount on'tlfe sums which are not yet due? The sum due at the end of the first period, if not paid till the last period, will have the interest accruing on it during the intermediate time. The sum due at the second period, if not paid till the last, will likewise have the interest accruing upon it during the interval between the second and last period ; and so on. Now these several interests added together, will give the whole interest, if all the money were to be paid at the last period. But this would not fulfil the intended purpose, which is to discover a precise intermediate time, at which the interest due upon the portions payable before that time, would amount to the same sum as the discount receivable upon the portions payable after that time. By calculating interest upon the different portions, from the various periods of payment up to the day when the last sum is due, we have found what amount of principal and interest would be due if the whole debt were to be discharged at that period. To fulfil the intended purpose and annul the interest, we must ascertain what number of days' interest upon the entire principal will equal the aggregate interest upon the individual sums; and anticipating by that number of days the time at which the last payment will be due, we ascertain precisely the period at which the interest due upon the portions forborne is equal to the discount receivable upon the portions anticipated ; in other words, we EQUATION OF PAYMENTS. 193 have discovered the equation of payment. For this purpose men of business use the following general RULE. Multiply the amount of each debt hy the time it has to run till it becomes due, and divide the sum of the products by the amount of the debt; the quotient is the average or equated time of payment. Thus the equated time of payment in the preceding example is ascertained as follows : — 200 multiplied by 2 gives 400 160 " " 3J " 560 80 " '' 4| " 360 440=^moM«^ of the debt. 1 ,320=Sum of the products. Then 1,320 divided by 440 gives 3 years, which is the equated oi average time of payment. Illustration. — Suppose the interest to be calculated at 6 per cent, and that three years is the true equated time, as above; it is evident that A. gains the interest of $200 for one year, which is $12, by extending the term of payment to three years instead of two ; and that he loses the interest of $160 for half a year, and the interest of $80 for one year and a half, by paying these sums before they become due, which interests added together, make $12. Thus his gain and loss, on this consideration, appear to be equal. But we must recollect, that B. is not entitled to the interest of $160 for half a year, and of $80 for one and a half years, but to the discount of each of these sums. The rule therefore is not mathematically correct, but it affords an approximation exact enough to the truth, for all practical purposes to which it can be applied, and being easy, is generally used by accountants and men of business. Example II. Bought goods payable as follows, viz: — 850 on the 1st of May; $64 on the 4th of June; $86 on the 1st of August, and $90 on the 5th of September; — required the equated time for paying the whole sum once ] Ans. July 14th. May 1st, $50— due at this date.* June 4th, 64 X 34 days = 2,176 Aug. 1st, 86 X 92 " — 7,912 Sept. 5th, 90X127 " =11,430 290 21,518 -H 290 = 74 days. J sur 4 d; equated time. * The equated timo may be found by reckoning cither from the present period, or from the time that the fust payment becomes duo. In the latter case the time or multiplier of the first payment is. nothing. 25 — — , — , — ._ — J _ . 21,518, the sum of the products, divided by 290, the amount of the debts, gives 74 days from the first of May, which is July 14th, the 194 EQUATION OF PAYMENTS. CASE ll. When goods are purchased at different periods, but at the same length of credit. Rule. — Multiply the amount of each purchase (except the last) by the number of days from its date, to the date of the last purchase, and divide the sum of their products by the sum of the purchases ; the answer will be in days. Subtract the number of days, thus found, from the date of the last purchase, and the time will be carried back to the period of equation. JVo«e.— The day from which you compute, is not reckoned ; but the day to which you compute, is always included. Example. Bought goods as follows at six months' credit ; what is the equated timb of payment? Dates. Amounts. Days. Products. May 1st $ 50 X 26= 1,300 " 12th 150X15 = 2,250 " 19th 120 X 8= 960 " 27th 100 X 420 4,510 4,510-7-420=11 days, nearly ^ which subtracted from May 27th will carry the time back to the 16th of that month, the period at which a note payable in six months should be dated. The same principle will apply in equating the payment of accounts, a part of which is past due, the other part at a future day. Example. I have the following account against A. B. which he wishes to settle June 10th ; required the equated time of payment. Dates. February 2, March 4, May 10, August 7, Sept. 8, .^mounts. Days. was due $70X218 = 50X188 = 60X121 = will be due 40 X 32 = " " 30 250 lys, nearly, which, subtrf Products. = 15,260 = 9,400 7,260 1,280 250= 133 d; 33,200 icted from the 8th of 33,200 September, will carry the time back to the 28th of April ; and A. B. must allow interest on $250 from that time to the 10th of June, being 43 days. EQUATION OF PAYMENTS, 195 Another method of equating the payment of debts contracted at dif- ferent periods, but at the same credit, is to find the number of days from the first purchase to the second. Multiply the second purcliase by that number of days. Proceed in the same manner with respect to the third, and whatever other number of purchases there may be ; divide the sum of their products by the amount of purchases, and the quotient will be days. Add the number of days thus found to the date of the first purchase, and the time will be cmrned forward to the period of equation. The correctness of this principle will be tested by worst- ing the first example under this case. May 1, $ 50 " 12, 150X11 = 1,650 " 19, 120X18 = 2,160 " 27, 100X26 = 2,600 6,4l0-^ 420 = 15ii days, which, added to the 1st of May, carries forward the period of equation to the 16th of that month. Proof. — Multiply the amount of each purchase made before the equated time, by the number of days from its date to the equated time. Multiply, also, separately, the amount of each purchase made after the equated time, by the number of days from the period of equation to the time it was made, and if the sum of the former products be equal to the latter, the work is right, as is shown in the following operation. $50X15^ = 763^ 120 X 2f^= 328fi- $150 X 4H = 639if 100Xl0i|=l,073it ^rr 1,4021^ 1,402^1 The foregoing illustration is thought to be so apparent, that any further explanation is unnecessary. CASE III. When goods are purchased at different periods and at different terms of credit. Rule. — Find the time when each amount becomes due, from which make an equation as in Case II. Example. Bought goods as follows : — What is the equated time of payment for the whole amount? Ans. July 4th. Date. .Amount. Terms. February 1, $100 at 120 days February 15, 150 " 90 " May 7, 70 " 60 " August 12, 90 " 80 " 196 EQUATION OF PAYMENTS. Statement. The purchase made February 15, is due May 16, |150 1, " June 1, 100 X 16= 1,600 May 7, " July 6, 70x 51= 3,570 August 12, " Oct. 31, 90X168=15,120 410 20,290 20,290 -^ 410 = 49f f days from May 16, which will bring the equated time to July 4. CASE IV. When goods are bought at a given credit , and partial payments are made before the expiration of the stipulated term of credit, to know how long the balance may run to cancel the interest on the payments made before maturity. Rule. — First. Multiply the whole debt by the term of credit given. Second. Multiply each payment made before maturity, by the time it has run from the date of purchase, and subtract the amount of their products from the product arising from the whole debt multiplied by the term of credit. Divide the remainder by the balance due at the expiration of the term of credit, and the quotient will show the number of days that this balance may run from the time the sale was made. Example. Bought goods amounting to $2,500 at 12 months' credit ; at the end of three months, there was paid $400 ; at the end of six months, $500, and at the end of eight months, $200 j when will the balance of $1,400 become due? 2,500 X 12 = 30,000 400X3=1,200 500 X 6 = 3,000 200X8=1,600 5,800 5,800 24,200 -r- 1,400= 17f months 1,400 X 17f = 24,200 Proof. 30,000 CASE V. To equate an account when there is a debit and credit of different amounts, and the total of each due at different periods, so that neither the debtor or creditor shall be entitled to any balance of in- terest. Rule.— Find the number of days from the equated time that the first debt is due, to the period when the last is payable ; multiply the EQUATION OF PAYMENTS. ' 197 amount that becomes last due by this difference of time, and divide the product by the balance of the respective debts, the quotient will be days; and if the sum multiplied be the greater amount, add the num- ber of days so found to the date of the debt that first becomes payable : but if it be the smaller amount, subtract the number of days found from the time that the debt first due became payable. Example I. I have an account with A. B. the Dr. side of which is $800, due by equation May 16, and the Cr. side is $600, due May 1. When can the balance be paid without loss of interest to either party ? Ans. June 30. Statement. 800 X 15 = 12,000 -r- 200 = 60 days from the 1st of May, which will be June 30. From May 16, it will be 45 days, and $800 X 45 = $600 X 60, both being 3,600 ; hence it appears, that my being indebted to A. B. in the sum of $600 for 60 days, is equal to his being indebted to me in the sum of $800 for 45 days. Example II. C. D. owes me $600, which is due May 16, and I owe him $800, which is due May 1. When must I pay C. D. the balance, $200, without either party being entitled to interest ? Ans. March 17. Statement. X 15 = 9,000 -h 200 = 45 days, which, subtracted from the 1st of May, will carry the time back to the 17th of March. In this case, the amount of C. D.'s credit being greater than the amount of my debit, and being first payable, it is evident that interest will accrue from the 1st to the 16th of May on the amount of his credit, after which he will be entitled to the interest on $200 more than I shall, so long as the accounts from that time remain unsettled ; consequently, the longer the accounts run after the time of payment, the greater will be the balance of interest in C. D.'s favor. But if the accounts be settled on the 17th of March, I shall pay C. D. $800, 45 days before it is due, and he will pay me $600, 60 days before it becomes payable, and the interest of both amounts for the time that they are paid in advance will be equal. 198 EQUATION OF PAYMENTS. The following method of ascertaining the equated time at which the balance of an account-current is payable, is not essentially different from that given in Case V. Yet, in some respects, it is more con- venient, and therefore may be preferred. Rule. — First. Find the equated time of the Dr. and Cr. side, as before. Second. Multiply the smallest sum by the number of days between the dates, thus found, and divide the product by the balance of the account ; the quotient is the number of days to be carried back or forward, as the case may require. Q;/^ If the balance be on the side of the earliest date, subtract the quotient, or count back from that date ; if on the side of the latest date, add the quotient or count forward from that date. Example I. E. F. owes me, for goods purchased at different periods, $600, which is due, by equation, May 1 ; and, I have bought of him, at different dates, goods to the amount of $800, which is due, by equa- tion, May 16. When shall I pay the balance so that neither party shall be entitled to interest? Ans. June 30. Statement. $600 the smaller sum. 15 days, the difference of dates. Balance, 200 ) 9,000 ( 45, the quotient. 9,000 The balance in this example is on the side of the latest date, there- fore, add the quotient, or count forward 45 days from May 16, which brings the equated time to June 30. Proof From May 16 to June 30 is 45 days X 800 = 3,600 From May 1 to June 30 is 60 days X 600 = 3,600 Example II. When will the balance of the following account become payable so that neither party shall be entitled to interest? Ans. March 17. ^Dr.— G. H. — Cr.— When due. When due. May 1. To Sundries, $800. May 16. By Cash, $600. Statement. $600 X 15 = 9,000 -j- 200 = 45 days, subtracted from the 1st of May will carry the time back to the 17th of March. Proof $800 X 45 = 36,000 X 60 = 36,000 EQUATION OF PAYMENTS, 199 The preceding examples, it is thought, will be a sufficient guide to work any question that may arise under this case, but with a view of exercising the learner, the following example is given. Example III. Equate the time of payment of the debit and credit sides of the fol- lowing account, and state when the balance becomes due, so that neither party shall be entitled to interest. —Dr.-- A. B. May 6, To amount due this day^ $600 " 27, " " 700 June 11, " " 500 —Cr.— May 12, By Cash, $450 " 29, 600 June 15. 300 $1,800 $1,^550 600 700 X 21 r= 14,700 500 X 36 = 18,000 32,700 -^ 1,800 =18 days from the 6th of May, will carry the time forward to the 24th of that month. 450 600 X 17 = 10,200 300 X 34 = 10,200 20,400 H- 1,350 = 15 days from the 12th of May, will carry the time forward to the 27th of that month. —Dr.— —Cr.— May2i, $1,800. May 27, $1,350 1,350 X 3 = 4,050 -^ 450 = 9 days, which subtracted from the 24th of May will carry the time back to the 15th of the same month. JVote. In the equation of payments, when the sums are composed of dollars and cents, the cents, if under 50, are omitted, and if over 50 they are counted as one dollar. 200 TABLE OF TIME. TABIiE, SHOWING THE NUMBER OP DAYS FROM ANY DAY IN ONE MONTH, TO THE SAME DAY IN ANOTHER MONTH. To 05- Jan. Feb. Mar. April. May. June. July. Aug. Sept Oct Nov. Dec. From January.... 365 31 59 90 120 151 181 212 243 273 ;]0l aj4 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 April 275 306 334 365 30 61 91 122 153 183 214 244 jyfav 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 1 July 184 215 243 274 304 335 365 31 62 92 61 123 92 153 122 August 153 184 212 243 273 304 334 365 31 September . 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 JVovember.. 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 Explanation. — The months counted From, are arranged in the left hand vertical column ; — those counted To, are in the upper horizontal line ; — the days between those periods are found in the angle of intersection, in the same way as in a common multiplication table. If the end of February be included between the two points of time, a day must be added, in leap years. Suppose it were required to know the number of days from the 4th of March to the 15th of August. In the horizontal line marked March, and in the column under August, we find 153, which is the number of days from the 4th (or any other) day of March, to the 4th (or same) day of August; but, as we want the time to the 15th of August, 11 days (the difference between 4 and 15) must be added to 153, which shows that 164 is the number of days between the 4th of March and the 15th of August. Again, were the number of days required between the 10th of October and the 3d of June, in the following year : — Opposite to October and under June we find 243, which is the number of days from the 10th of October to the lOth of Junej but as we sought the time to the 3d only, which is 7 days earlier, we must deduct 7 from 243, leaving 236, the number of days required, — and so of others. The above table will be found very useful in the equating the time of payments, calculating interest, &c. and if not the best, is certainly the most concise that has yet appeared on the subject. PROSPECTUS OF THE COMMERCIAL ACADEMY, NO. 183 BROADWAY, NEW YORK. CONDUCTED BY B. F. FOSTER, AUTHOR OF THE ART OF RAPID WRITING ILLUSTRATED AND EXPLAINED J A CONCISE TREATISE ON BOOK-KEEPING J ELEMENTARY COPY BOOKS J COMMERCIAL CORRESPONDENCE, &C. NEW YORK 1 837. Book-keeping is an art which no condition of life can render useless, and which must contribute to the advancement of all who buy or sell — of all who wish to keep or improve their possessions — of all who desire to be rich, and all who desire to be wise. Let no man enter into business while he is ignorant of the method of regu- lating books. — Dr. Johnson. PROSPECTUS The design of Foster's Commercial Academy is to afford young men an opportunity of acquiring, in a short period, a frecj rapid hand-writing ; experiness in Jigures ; a practical knowledge of book-keeping ; merchants' accounts; and mercantile letter-writing. These branches, independently of their intrinsic importance, conduce most effectually to advancement in any mercantile situation. Classical and mathematical education is for the most part carefully attended to, in addition to which, the lawyer, the phy- sician, and the clergyman, each devotes years in preparing himself for the peculiar practice of his profession ; but the young man, intended for a merchant, is left to grope his way, so far as a prior qualification is concerned, in comparative igno- rance. When placed in the counting-house the youth enters a school, with this disadvantage, that he is without an instructor ; for it is neither the duty nor interest of the senior clerks to deviate from the routine of their own labors to impart that infor- mation which may enable another to supersede themselves ; and the merchant himself is generally too much occupied with busi- ness to take the trouble ; hence, the young clerk has to pick up his knowledge as he can, and gets into the way of performing his duties by dint of repetition only. 4 PROSPECTUS. There are probably thousands who yearly visit this city, for the purpose of devoting themselves to mercantile pursuits, whose Penmanship is totally unfit for the Journal, the Ledger, or even for a common Bill of Parcels, and whose knowledge of figures and book-keeping is so limited that they can neither calculate the interest on an account-current, equate a payment, nor record a simple transaction accurately. For the want of this requisite information, they are compelled to drudge, for years, in subor- dinate situations ; whereas had they been previously qualified, with special reference to this employment, they would have freely commanded a liberal salary. The advantages of this institution, although available to all classes, are yet more particularly held out to the following : — 1. To young men who have completed their classical and general education, and who wish to acquire rapidly, those quali- fications which are especially requisite for commerce. 2. To young persons whose friends are desirous that they should receive the practical advantages here offered, in addition to those they may have acquired at school. 3. To foreign gentlemen desirous of becoming well acquainted with the language and commerce of the country. This class may, while they are enlarging their mercantile and general knowledge, obtain an intimate acquaintance with the English language. 4. Adults, who experience any difl5culty in the free use and command of the pen, or, those who, from inattention, or the want of proper instruction, write an irregular scrawl, may have these obstacles removed in a few lessons, so as to ^rite a rapid, easy hand. PROSPECTUS. O The course of instruction at this institution, comprehends all the information connected with the duties of a clerk, and is peculiarly adapted to the wants of the mercantile community. Penmanship is taught upon a novel and improved plan, combining legibility with ease and rapidity of execution. Mii. Foster has given the most careful attention to the various causes which occasion bad writing, and is consequently desirous that this establishment may be viewed as a complete school for penmanship on undisputed principles, and as a harrier against the vague and improper encroachments of assumed talent so often pressed upon the notice of the public. Book-keeping, as applied to inland and foreign trade, is particularly attended to, and the most modern and approved methods exemplified, of arranging and classifying merchants' accounts. By divesting this study of numerous intricate terms and complicated entries too commonly adopted, the art is so simplified, that its principles are easily comprehended ; while their application to the ordinary transactions in trade is rendered apparent. The subject of closing and re-opening books ; balancing and adjusting individual and partnership concerns, is fully explained. By connecting systematic book-keeping with actual transactions, the forms and modes of business are made familiar to the learner ; and the knowledge thereby acquired is not only theo- retical but practical. Commercial Arithmetic, with its application to the exist- ing practices of trade, showing the abbreviated methods employed by merchants and brokers for the valuations and allowances of merchandise ; the calculations of per centages, interest, commis- sions, exchanges, equation of payments, &c. forms a prominent feature in the course of instruction. b PROSPECTUS. Mercantile Correspondence. — This department of instruc- tion has been so long needed, that it would be useless to enlarge upon its utility. It will embrace every particular relating to commercial letter-writing y including all the details of folding, superscribing, &c. Mr. Foster wishes it to be distinctly understood, that he does not profess to ** perfect pupils in twelve easy lessons of one hour each " ! He cannot limit himself to a precise number of lessons, as the successful attainment of an art must, in every instance, depend materially upon the capacity, attention, indus- try, and perseverance of the learner. In order, however, to enable young men to complete their studies efficiently, and in the shortest possible time, in addition to his own personal efforts, experienced and competent assistants are engaged. The division of labor in this institution is so nicely carried out, and the adjust- ment of the various parts so complete, that they cannot fail to produce, without loss of time, a sound and finished mercantile education. This, then, in brief, is the outline of the plan, upon which Foster's Commercial Academy is conducted ; the extensive support it has hitherto received, from the mercantile commu- nity in particular, and the public in general, has called forth renewed efforts to render it, in every respect, worthy the attention of those for whose improvement and benefit it is designed, and no labor or expense will be spared to qualify young men to fulfil the duties of the counting-house with credit to themselves and satisfaction to their employers. RULES AND REGULATIONS. 1. The TERMS are payable at entrance, namely, on taking the first lesson : from this rule there can be no deviation. 2. The hours of instruction are from 9 to 12 in the morning ; from 2 to 5 in the afternoon, and from 7 to 9 o'clock in the evening. 3. In all well regulated establishments strict order and decorum are ob- served ; every member attends to his own duties without in any way inter- fering with the other clerks ; and, as this institution is preparatory to the counting-house, and is conducted on similar principles, it is earnestly requested that all necessary conversation, during the hours of instruction, be carried on in an under tone. 4. The students, at this institution, being governed by the principles of honor, it is only considered necessary to suggest what is required of them to insure a ready compliance ; and, as these regulations are intended for their general good and advancement, they will, it is not doubted, be rightly appreciated. T E R xM S . The following branches are taught at the prices affixed, which being paid on entrance, entitle the pupil to remain at the Academy until he is com- pleted, without further expense, except for books and stationary. For a course of Lessons in Penmanship, in which the learner is taught to write a neat, rapid business hand, . . . . . . 15 00 For a course of Lessons in Book-keeping, in which the learner will be qualified to act as Book-keeper in the most extensive establishment, . 15 00 For a course of Lessons in Commercial Calculations; by which those who have neglected their Arithmetic, may acquire simple and expeditious methods of performing the various computations in business, . . 15 00 For a course of Lessons in Letter Writing and General Correspondence, in which the student will practise all the modes and forms that are in daily use in the Counting house ; including circulars, letters of advice, notice of consignments, remittances, Sec. . . , . . . . 15 00 For a course of Private Lessons in either of the above branches to one individual, at the class rooms, or at his residence, . . . . 25 00 *^* The charge for quills and ink is 50 cents per quarter. [CT A limited number of pupils, under sixteen years of age, will be re- ceived by the quarter ; but the institution is more particularly designed for Young Men and Merchant's Clerks. NEW WORKS, RECENTLY PUBLISHED, And for sale hy the Author at his Academy, 183 Broadway^ and by the Booksellers generally. 1. A CONCISE TREATISE ON BOOK-KEEPING ; elucidating the Principles and Practice of Double Entry and the modern methods of arranging merchants' accounts. Second Edition, revised, enlarged, and greatly improved ; — to which is added a chapter on Equation of Payments, &.c. By B. F. Foster. 1 vol. 8vo. This is decidedly the best treatise on Book-keeping which we have seen. It is simple, concise, and well arranged. Mr. Foster has confined himself to a plain explanation of the art, as practised in mercantile establish- ments, and we warmly recommend the residt of his labors to the public. — Boston Atlas. This work exhibits a comprehensive illustration of the art as it is prac- tised in well regulated counting houses. The author, who is a practical accountant, has displayed an extensive knowledge of his subject, and has produced a work which is of infinite value to those who have yet to obtain a knowledge of Double Entry. In pointing out the various methods by which books and accounts may he fraudulently vitiated, the author has given additional value to his publication, and rendered an essential service to the mercantile community. — N. Y. Mercantile Advertiser. Here is a new work on a very important subject, that is highly recom- mended by good judges. Its object is to furnish a treatise simple in its illus- trations, and comprehensive in all the information requisite for the practical accountant. The book contains excellent observations on the studies and qualifications of a merchant, and concludes with a glossary or explanation of commercial terms. — Boston Morning Post. As the pursuit of money in this country seems to be the ruling desire, it appears to us that no work can be offered to the community generally, which is related so intimately to their prosperity ; and it is incumbent on all to be acquainted with the principles and practice of an art of which this work contains a beautiful, simple and consistent elucidation. We recom- mend it to attention with much sincerity. — Boston Pearl. Foster's penmanship. The author of the treatise is a teacher of unquestionable ability. The rules and directions for the learner are full and explicit, and the exercises have a greater relation to real business transactions than is usual with elementary books. — N. Y. Herald. Although we have had leisure only for a hasty glance at this work, yet we feel justified in commending it to all who are desirous of acquiring a thorough knowledge of a qualification so essential not only to the accountant, but to every business man. The explanation of commercial terms, which occupies several pages, is well worth the price of the book. In this treatise, Mr. Foster has furnished ample proof of his ability to give instruction in this important branch of commercial education, and we are gratified to learn that his rooms are well filled with those who duly appreciate his talents as a teacher. — Staten-Islander. Tlie manner in which Book-keeping is frequently taught, conveys a very imperfect idea of the practice of merchants. The great difference between tkeorij and practice — between the study of an art and its application to prac- tical use, is too well known to need remark ; and we think Mr. Foster's plan possesses advantages worthy the consideration of all who wish to ac- quire the forms and modes of business in a thorough and effectual manner. His long experience in the counting house, and skill as a penman, are cir- cumstances which qualify Mr. Foster in a peculiar manner for the duties of his profession. — Boston Evening Gazette. %* The design of this work is to exhibit a view of Book-keeping as actually practised among well informed merchants, and to furnish learners with a text-hook so clear in its illustrations as to be easily understood, and yet so comprehensive as to afford all the information requisite for the practical accountant. It contains the latest improvements in the art, and will be found a useful guide to the learner, the merchant, and the man of business. 2. THE ART OF RAPID WRITING ILLUSTRATED AND EXPLAINED ; to which is added an elucidation of the Angular and Anti-Angular Systems. By B. F. Foster. 1 vol. 8vo., with plates. The bold, flowing, graceful writing, distributed throughout this work, is enough to proTC that the author is a skilful and competent teacher. The plan is novel, simple and ingenious, and admirably adapted to secure the attainment of fine penmanship. — N. Y. Evening Star. We conscientiously recommend this system to all who are intrusted with the education of youth, or who feel a natural anxiety for the progress of their children in so useful an accomplishment as that of penmanship. — Boston Mercantile Journal. Mr. Foster pretends to teach that style of writing which is wanted by men of business, and judging by the fac-simile in his book, and by what we ourselves have seen in his school, we are disposed to recommend the work most heartily, and to place great confidence in the teacher. — New England Galaxy. The rules laid down in this treatise aie sound, and if duly followed out, will lead to excellence. — New York American. There is nothing wanting in this new system to insure to a pupil of ordinary capacity, the acquisition of a hand- writing in which the utmost 2 10 Foster's copy books. legibility, expedition and elegance are united. It is founded on the most simple, natural and philosophical principles. — Bostojv Evening Gazette. Experience has abundantly proved, that a free and quick hand-writing can be acquired by this process in a very few lessons ; an advantage which the old system does not offer at the end of two years' application. — Albaky Evening Journal. Mr. Foster's Treatise is written with conciseness and perspicuity, and is well worthy the attention of all who are interested in this branch of educa- tion. — Boston Courier. 3. FOSTER'S ELEMENTARY COPY-BOOKS, designed to render the acquisition of Penmanship simple, progressive, and agreeable ; to save Teachers the trouble of setting copies, and to furnish schools and families with a practical system by which the art may be taught with facility and correctness. Nos. 1 to 8. %* The slope of the letters, the thickness of the down strokes, and the points where the hair strokes commence, are all indicated in the ruling with mathematical exactness, which produces a constant check on carelessness and inadvertency, and the learner is thus enabled to acquire an elegant and masterly use of the pen in one third of the time usually devoted to this ob- ject. DESCRIPTION or THE COPY-BOOKS. No. 1, is designed for beginners. The copies are placed at the top of each page, and consist of straight marks and exercises on the turns ; leading progressively from the simplest rudiments of the art to the formation of letters. No. 2, is a continuation of No. 1, and contains a series of exercises systematically arranged, which are designed to discipline the muscular powers of the fingers, and to prepare the learner for the easy execu- tion of large text hand. No. 3, contains the letters of the alphabet, arranged according to similarity, with reeded lines and grooved spaces to guide the learner in the formation of each letter, together with large text copies. No. 4, contains an alphabetical set of text hand copies, with outline capitals ; designed and engraved in the first style of excellence. No. 5, is a continuation of the preceding No. and consists of a series of medium or round-hand copies, each beginning with a capital, and is designed to prepare the learner for small-hand. No. 6, consists of small, round-hand exercises, and contains a set of small-hand copies, alphabetically arranged, preparatory to the lessons in running-hand. Nos. 7 and 8, complete the system, and consist of exercises in current-hand ; being an improved plan of teaching mercantile pen- COMMERCIAL CORRESPONDENCE. 11 manship. The specific design of these exercises is to teach stoifl writing. The cover upon each book contains practical directions to teachers and pupils, rules for holding the pen, position of the body, pen-making, &c. ; the whole illustrated with engravings, so that there is nothing wanting in this new system, to insure to a pupil of ordinary capacity, the acquisition of a hand- writing in which the utmost legibility, expedition, and elegance are combined. These Copy-Books, are the result of ten years' experience of one of the first teachers in the United States, and they cannot fail to secure to the learner a legible current-hand writing in a much less time than is usually consumed. Their low price, puts it in the power of most persons to avail themselves of their advantages. Each page contains an engraved copy, and is ruled so that the pupil cannot fail to learn the shape and proportion of the letters. — Eastport Sentinel. Mr. Foster has devoted himself successfully to the improvement of the art of writing, and has exhibited great ingenuity in devising a system which will not only relieve teachers from the trouble of setting copies, ruling, &c., but completely obviate the difficulties which have hitherto embarrassed young learners in their early attempts with the pen ; the simplicity and novelty of the plan enabling the pupil to proceed in his efibrs with pleasure, and with- out labor. Not one in a hundred of our primary schools, ever turns out a single superior penman. But let this system be adopted with resolution, and pursued with perseverance, and they will annually supply their thousands. — Edropean. Foster's Elementary Copy-Books, are an entirely new invention, unique in principle and the best calculated to impart ease in penmanship, of any that we have seen. This plan is "a labor-saving machine" of incalculable value, both to teacher and pupil, by which the latter cannot fail to acquire, without loss of time, a uniform, correct hand-writing. — Morning News. 4. COMMERCIAL CORRESPONDENCE; being a series of Letters connected with Foreign and Domestic Trade ; in- cluding the general forms of Letters of Introduction, Credit, and General Business, together with Invoices, Account Sales, Bills of Exchange, &c. By B. F. Foster. 1 vol. 12mo. (Jn Press.) TESTIMONIALS. Extract from the Report of a Committee appointed to award premiums for Penmanship in the Albany Academy. In awarding the premiums, the committee experienced much embarrassment from the almost equal proficiency exhibited by the pupils. It is in fact impossible, without denying the evidence before us, to dispute the advantages of the system taught by Mr. Foster, and the committee recommend it as superior to all others with which they are acquainted. Richard Yates, Theodore Olcott, \ Committee. Henry Bartow, Extract from the Report of a Committee appointed to attend the examination of the pupils in the Albany Female Seminary. OTT, > The specimens of writings exhibited, afford the most satisfac- tory evidence of improvement in this d!rt, and tend at once to confirm the opinion now nearly universal, of the great superiority of the system pursued by Mr. Foster, and to advance his high reputation as an accomplished teacher. Alfred Conkling, ^ Edward C. Delavan, > Committee. Samuel S. Fowler, ) Mr. Foster is unquestionably the first writing master in this city, — if not in this country, — and so far as much observation, and an acquaintance with him and his system, authorize us to speak, — utterly free from that humbug and quackery which dis- grace not merely the profession, but, in some of its results, the whole Christian community. Writing is an art valuable in itself, beyond what most persons are ready to admit. And it is not only valuable in itself, but the easy, elegant penman will extend his order and neatness into the whole circle of his habits, — intellectual, social and moral ; — at least such is the tendency. He who effects a reform in this department, will, in our view, be a great public benefactor, — Boston Moral Reformer. We are personally acquainted with Mr.. Foster, and take great pleasure in recommending his establishment to the notice of our fellow-citizens. We have examined his system in detail, — have observed his mode of instruction in full operation, — and are fully impressed with the practicability and utility of his plan. It facilitates beyond all other methods, the attainment of a free, elegant, and rapid business hand. — Boston Republican. THIS BOOK IS DUE ON THE LAST DATE i STAMPED BELOW AN INITIAL FINE OF 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $I.OO ON THE SEVENTH DAY OVERDUE. ■'. • > 1 '5' 1 FEB 7 1955 „ - ^^V 1 5 1UU4 lUl -- Hu ^^W ^"^ — , ^B ^^H IB LD 21-100m-12,'43 (8796s) IV.Je8;5877 Hi- ^^'\ 1 '( ^' THE UNIVERSITY OF CAUFORNIA LIBRARY