UC-NRLF B ^ 512 331 -.."'. Sr r \, ^ ^ , I ■^^ ' ^;V BRYANT & STRATTON'S NATIONAL ••:"!ji'':i:vvDi- BOOK-KEEPING: A^ ANALYTICAL AND PROGRESSIVE TREATISE ON THE SCIENCE OF ACCOUNTS, AHD ■»>■ ITS COLLATERAL BRANCHES, rKSPARieU AP A 11UUK Of KEFEKENOE FOR THE OOUNTINQ-HOUSB, AND ALSO AS A TEXT-BOOK IN HIGH SCHOOLS AND ACADEMIES. BY H. B. BRYANT AND H. D. STRATTON, fOrSDEBS or THX XNTSBHATIONAL OHAXN of COMUERCIAl. COLLEOE8, LOCATKO IK THB FBIHOirAI. CITIES OW TBX IT S AND THE DOKIKION OT CANADA, AND S. S. P A CK A RD, •BSIDXHT PBISCirAI. OT THB RXW TORK CITT MSBOANTILX COLLSaS, 18 AND 19 OOOFZB XHBTITUTB. IVISON, BLAKEMAN, TAYLOR & COMPANY. NEW YORK: CHICAGO: !, i rr .ii 3 5- B9=2 Entered, according to Act of Congress, in the year 1880. Br BRYANT, STRATTONT -^ PACKARD, IC tne Clerk's Office of the District Court of the United States, for the Southern District of Nev TorieL SDUCATfON DEPT. • ««BEOT t LCD BT 6MITH & McDOUQAU, Si Baakman-Bt.. N T. CONTENTS. -••^ PUTACB, •. 5, 6 A jShort Address to Youno Men, 7 — ^10 iRTBODnCTION, Description of Day Book, Journal and Ledger 11, 12 Fornis of Principal Books 12, 18 Mercantile Terms 18 — 16 General Principles 16, 17 Questions for Review 17 General Plan of the Work , , 18 8n L — Representing tJie Business of a Singh Proprietor. (Pro9p0rling and Importing Business. Four Partners. (Prosperous.) Remarks on Set V 128, 129 Routine and Explanations 130, 131 Domestic Invoice Book 132 — 134 Foreign Invoice Book 185, 136 Sales Book 137—141 Cash Book 142, 143 Bill Book 144 Inventory Book 145 Journal 146, 147 Balance Sheet 148 Questions for Review 149 Ohajigino Single to Double Entbt. (Two Sets.) Remarks 152, 153 Cash Book 154, 155 Day Book 156, 157 Ledger 158, 159 Process of Changing i^.. 160, 161 Continued in Double Entry 162, 168 Statements 164 Exercises for the Learner. (Fifth Series.) 165 — 168 '▲BM Accounts, with several new features. Remarks * 170 Cash Memorandum Book 171 History of Transactions 172 — 176 Explanation of Six-column Journal 175 Journal — Practical Form 176 — 180 Trial Balance and Inventory 181 Statement 182 Practical Hints for Farmers .... .... 182, 183 Questions for Review . 184 General Instruction. Stocks 185—188 Joint Stock Business 189—191 Exchange 191—195 Commercial Calculations 196 — 209 General Hints as to Dividends 210 Questions for Review 211 Vocabulary of Mercantile Terms 212 — ^215 Abbreviations and Characters 215 Time Table . 21« 4 PREFACE. Wk oflFer no apology for adding this treatise to the almost endless list of text-books on commercial scienos. If It is not needed, the verdict of the public — from whose decision there is no appeal — wiD so be rendered ; If It ia, the same tribunal must announce the fact, and all the special claims, and ex parte statements put forth as an advertisement, by interested parties, will have little weight in the decision. The steadily increasing importance attached to commercial pursuits, and the very general attention which this branch of industrial economy is exciting throughout the civilized world, have, within the past few years, awakened such an interest in all efforts tending to promote its advancement, that whoever may say or do aught that shall add to the general momentum, can have the consciousness at least, that his effort will be felt, whether or not the hand that gave force, or the thought that directed, are recognized in the result. "While we are free to admit that considerations of a more personal nature have impelled us somewhat in this task, we will not affect an indifference which we do not feel, as to the part we may thus be acting in tht great purposes of life, or the value which may be put upon our labor by those whose good opinions we crave We understand the true object of a text-book to be the imparting of knowledge in some particular depart- ment of art or science. In the preparation of such a work the following prerequisites are essential : 1. A comprehensive understanding of the subject treated ; 2. A particular knowledge of the difficulties to be overcome in the mind of the learner. The very fact of the appearance of this book then, must be presumptive evidence that its authors claim for themselves the above qualifications; a point which it would be mock-modesty to attempt to evade. As to the grounds of this assumption, they may be permitted to observe that many years' active employment, both in the practical departments of commercial life, and in the arduous duties of professional teaching, have given them a degree of confidence, which might otherwise be deemed presumption. In their special department of labor, they have keenly felt the want of a work which should serve them in matters of reference, and give to oral instruction the additional force of well-digested propositions, clearly -expressed principles, and adequate forms ; a work suited not only to the tastes and wants of private students and adepts, but to tlie more gen- eral purposes of the class-room. Having made the specialty of instruction in Book-keeping and its collateral branches a life-business, they liave not been content to accept as ne. plus ultra, the crude and ambiguous for- mulas whicli constitute the chief merit of the earlier authors in this science. They are troubled with no superstitious veneration for those monuments of unrequited labor, which, in the twilight of commerce acted BO important a part in the then slowly-moving machinery of progress ; desiring rather to do those authors the simple justice of awarding to them the credit of being fully up to the requirements of their time. Ben jamin Franklin first discovered the laws of electricity, and Robert Fulton made the first application of steam In navigation ; and yet, who at this age would think of consulting the works of Franklin for practical hints un telegraphing, or of Fulton as to the construction of steam-engines ? As pioneers in developing the hidden laws of powerful agents, these men and their labors cannot be overrated ; but the more wonderful develop ments of the present day, show them to have made but an almost imperceptible beginning. It may not bo that the imorovements which have followed the primary enunciation of " equal debits and credits" — suppooed to have been evolved through the necessities of Italian commerce — have been so marked and distinctive ac the various steps in the progress of steam and electricity ; but it cannot be denied that the impetus which, during the last twenty years, has been given to commercial education in all parts of the country, first by the demands of commerce itself, and next through the laudable efforts of teachers and authors who have given the matter their special care, has rendered necessary a higher grade of exponents than those wonderful ap- propriations of " poetic license" which at one time threatened to convert all the Arabic numerals into " figiiret •>f speech." 5 PREFACE We believe that the science of Accounts is, enalnently, a teachable science; and that the most that >« necessary is to bring its terms within the comprehension of the learner, and to place in the hands of the teacher an assistant which can be relied upon to do thorough work. In the preparation of these pages, wc nave had special reference to the wants of the profession ; and in reviewing the labor, we have the assurance ©1 our more deliberate judgment, that if the hints and instructions, here inculcated, are faithfully carried out, there csan be no doubt as to the most favorable result Above Ml, have we aimed to make the work practical and expressive of the times ; and while we have not deemed it unimportant that at the outset the broad principles of the science should be disticctly an- nounced, and rigidly enforced, we have studiously sought to make the transactions themselves do the chief work of interpretation. We are fully aware that there may exist honest differences of opinion among teachers as to the best node of, conveying instruction; differences affecting not the principles taught, but the method of teaching; and that, often, the statement of a vital proposition may afford such an open field for discussion, that among /wo- fessional teachers, at least, such a thing as perfect harmony in all the diversified shades of reasoning Is im- possible. This is as it should be. A teacher who is worthy of the sacred profession he has chosen, must be endowed with powers that belong exclusively to himself. One cannot be a teacher and not a thinker ; and one cannot think without forming decided opinions ; and he who has an opinion, and dare not give it expres- sion, is possessed of a degree of modesty which will be very apt to be mistaken for cowardice. We would desire to call particular attention to one feature of the work, which, while it is unique, must commend itself at once to the faithful teacher. We allude to the plan of following each illustrated and ex- plained set, by a series of " exercises for the learner," embracing all the principles of the preceding set, to which the student, unaided, must give form and expression. No better test of proficiency could be given, and teachers should be careful that no part of these exercises be omitted. In its adaptation to the general wants of the tradesman, the farmer, and the merchant, we have sought to make the work ncceptable to the various classes interested in the science. It cannot, of course, be expected that, in so limited a space, every shade and variety of transaction and form will be given ; but we have done sufficiently, we think, to show the adaptation of Double Entry to every department of business. In conclusion, we would say, that in the inception and prosecution of this work — and in this view it has been truly a " labor of love "—we have had constantly in mind, first, the wants of the young men of the country, who, yet unexperienced in the drudgery of commercial pursuits, are looking forward to a " position in life," and ready to use with diligence, any honorable means promotive of the great end ; next, of that other great class who have passed from the chrysalis state into the open world of active employment, but are yet careful to lay hold of whatever may promise the instrument of real advancement ; and last, though by no means least, of that worthy army of self-sacrificing men and women, who, content with the humble lot and fortunes of the teacher, seem to be living in a world of their own, but living for the good of others, and who are, perhaps, of all others, best qualified to judge of the faithfulness of our labors. Of the first of these three classes, we have worthy representatives under our special daily care ; of the second, thousands have gone out from us, and are doing for themselves and their country in almost every city and hamlet in this broad union of states ; while among the third class, we are proud to reckon many of the most endeared and rtapected of our personal friends. In the hands of such we are willing to trust our labors, feeling well assured that if, in criticising the work, they " nothing extenuate," they will be equally cautious to " set naught down in malice." ^ BRYANT, STEATTON b PACKAJU) 18 CooPKB iNSTiTirrE, New Tobk.. 1860 A SHORT ADDRESS, RESPECTFCLLT DEDICATED TO THE YOOTG MEN OF THE OOHNTBY. EvKBT httman life has its purpose, as every thing in nature its uses ; and, however much the deaire maj ffrow to evade the responsibilities which rest on each individual soul, or to absorb them in the gener&l ap plication to the race, or to whatever extent we may throw onrselves npon the soothing thought — "There U a Dirtnlty that shape* onr ends. Rough-hew them how we will ;" — still ever within the heart there lives a consciousness that, in the duties of life, every one must answer bn himself, and not another. This very consciousness is the key-note of existence, lending to life its charmi- and to society its surest safeguard. We desire to accept it as the basis of a few suggestions, which we thin) not out of place in this connection. Let us come, then, directly to the point : What is your purpose in life, and how do you hope to accom plish it ? Do you desire riches ? You have but to stretch forth your hand and take them. Honor ? It in yours for the asking. Fame ? Many less noble and talented have won it, and so may you. Friends T They will come of their own accord, if you get but the others. There is, indeed, a wonderful potency in th« human will, and an efficiency in human hands scarce dreamed of by the brightest visionary. But let ns sep arately consider these desires, and the avenues which lead to their consummation. 1. RicHxa. It is folly to contend against this desire, even on moral grounds ; as he who would be able to make the clear- est caso, would still fail in convincing himitelf that a "reasonable" share of this world's goods would neces- sarily disqualify him for the highest state of human enjoyment. Even the Prophet, speaking through in- spiration, as positively denounces poverty as its opposite ; and the world has yet to see a philosopher, of whatever scliool, who would not make himxelf an exception to any rule which would constitute the getting of riches a moral wrong. The possession of wealth is, in itself, neither good nor bad. It is only the nxe of money which circumscribes its moral tendencies. Even the Bible— that highest text-book of morality — does not de- nounce riches per se. It is not money, but the lore of it which is called " the root of all evil." To desire riches, then, is no eviL On the other hand, we consider it to be not only legitimate, morally speaking, but highly commendable. The possession of wealth not only adds to one's importance in the community, but places wfthin his power almost limitless opportunities to do good. There is not an enterprise, having for its object the bet- tering of human condition, that does not depend, in the greatest measure, for its usefulness, upon money. Through its potency, states are inhabited, churches erected, knowledge diffused, the avenues of commerce kept open, industry rewarded, genius fostered, and the refining influences of civilization strengthened and perpetuated The acquisition of wealth, then, for the good it may do, is a worthy purpose of life. I low shall it be accomplished ? If one may judge by the flaming advertisements which disgrace the columns of our daily papers, there is no method which ingenuity cnn devise, or rascality concoct, tliat is not rosorted t^ for this end ; and the world will probably never be so good or so wise, this side of the millennium that such will not be the case. To become suddenly rich, is the passion of the age ; and if one out of every ten thous- and, who run the gauntlet of this mad ambition, succeeds, the nine thousand nine hundred and ninety-nin« 'lisaatrous faUures are lost si^ht of in the dazzling eflfulgence of that one success. Like policy-dealers, who 7 A SHORT ADDEESS. (flind the 'eye's bf willing;_victim8 to the almost inevitable result of their folly, by dwelling alone upon the mag i^c^DCte 6f ;cOvefed'but inaccessible prizes, so the deluded and deluding followers of mammon cheat theii ' own better juugmeuf in* the wild pursuit of impossible fortunes, expecting, despite experience to the contrary, by some grand coup detat to surprise the strongholds of wealth, and take her captive. It is not thus that sensible people seek to grow rich, nor thus that we would prescribe the means. Our suggestions on this head, though possessing not the freshness of novelty, nor the charm of mystery, shall be to the point. The three prerequisites to this enviable and attainable condition are : honesty, industry, and frugality ; three homely virtues, whose names are as " familiar in our mouths as household words," and which are as necessary to our personal comfort and self-respect as is the condition they would bring about. We are, in truth, the architects of our own fortime ; and this is the sweetest consideration of all. That which has become ours by patient, honest, unremitting endeavor, will be appreciated, and we shall the better know ho\f to dispose of it. Again, true riches cannot be wholly measured by any known financial standard. "Wealth is a purely comparative condition, and its extent has less to do with the number and significance of the figures composing its total than the relation which those figures bear to the real necessities of life. He who has enough for his own immediate wants — who owes no man any thing, and is not fostering in his own heart a brood of extravagant desires, is " comfortably rich." He who has more than this, is, to that extent, wealth i/. To such a position, it is not only the privilege but the duty of every young man to aspire ; for not only will the coveted prize repay all his exertions, but every well-meant endeavor will bring its own immediate reward in developing the internal resources, in raising the standard of self-respect, in enlarging the capacities of enr joyment, and in begetting the self-consciousness of having performed one's part and lot in the world 2. Honor. To be esteemed of men, is also a commendable desire ; and, next to riches, is it the ruling passion of lift. It is, in fact, to this end that most men desire riches. That position in life, however, which is the mere con- tingency of wealth, will not repay the effort necessary to acquire it. To be trtily esteemed of men, is to be the possessor of qualities which money cannot buy. To be worthy of that esteem, is the highest social posi tion attainable in this life. How shall it be reached ? Everybody has heard that " honesty is the best policy ;" and the truth of the maxim is substantiated in every phase of human history : but if no higher moral ground than this were possible, we should despair of ever witnessing a correct standard of honor. Honesty which springs from motives of policy, deserves not the name. It Is akin to that bastard friendship begotten of selfishness, and is not entitled to a place on the list of virtues. To be truly honorable, all actions must spring from pure motives, and pure motives can rest only on correct principles. So we come down to the posi- tion that correct principlex alone can produce that " noblest work of God " — an honest man. But how is one to judge of correct principles ? We might answer as most moral instructors would : Go to the Bible. The an swer would not be amiss; and yet, there is planted within every human breast a little monitor, the pure in- stincts of which are as unerring as truth itself. An appeal to conscience will invariably settle the little pei plexing questions which sometimes become so inwrought in the very constitution of moral actions as to threaten. the utter destruction of all safeguards. It is through neglect of this appeal that so many hundreds of names are yearly added to that dishonored catalogue of " ruined young men." The Jirnt step in a wron^ direction is always the most ditiieult. One such step, unrepented of, is a sure precursor to a course of infamy No young man, at the beginning of his career, coolly premeditates a life of dishonor ; but, having once launched upon the tide, he is like the im{)Otent boatman who permits his craft to drift into the rapids of Niagara. Occa sionally one such, in his swift descent toward the awful chasm, may strike upon a friendly rock, as did poot Averj ; but, as in his case, the relief will be but temporary, and the wild hopes of rescue will only add pangs to the certainty of destruction. Honesty is the best policy; and better than that, it is as the right hand of Sod, a " present aelp in every time of need." 3. Kamk, This is an empty bubble, at best, though men have willingly yielded up their lives to secure the heritage (br tneir children. It has been truly said that " some men are born great, others achieve greatness, while others have it thrust upon them." As, in this country, the first of these conditions is impossible and the last inaccessible by any human effort, there remains but the process of achievement for those who desire to be Cimious. It will be apparent to the most careless observer, that the very existence of fame is dependent upon Its opposite, as the existence of a moimtain would be impossible without its contiguous plain or valley. As the height of a mountain is estimated by the distance of its summit from " the level of the sea," so is the extent of a man's fame measured by his relative distance above the level of society. He who would court 8 A SHOKT ADDRESS. Fame, then, must not be content to do ropei debits and credits Involved in each transaction, preparatory to their entry upon the l^edger. '" It is sometimes combined with the Day Book, and sometimes omitted entirely, " its labor being performed mentally. Its essential character and convenience, however, are not to be questioned, "and the improvements which have been instituted in its form have rendered it Dot only important as an interpreter, but valuable for labor-saving purposes. "The Ledger Is the merchant's encyclopedia. All other books of the series are subservient and tribu- tary to this. *" Here are shown the results of all the transactions, arranged under distinct and appropriate heads, called accounts. " Each account has two sides, a Dr. and a Cr., each gov- erned by well-defined conditions, and showing certain important facts bearing upon the gen- eral result. FORM OF THE PRINCIPAL BOOKS. We give below the usual forms of the three principal books, showing their characteristic records of the same transaction : 1.— Day Book. New York, January 1, 1869. y Bought of James Monroe, on account, 500 Bbls. Flour @ $10 5000 1060 1 o Q J Sold Andrew Jackson, for cash, 100 Bbls. Flour @ $10.50 Statement of transaction. 2. — Journal. New York, January 1, 1859. Merchandise Dr. To James Monroe 2 Cash Dr To Merchandise Ih. Or. I 2 2 1 Ledger Titles. 5000 1050 5000 1050 si 12 INTRODUCnOJI Date Dr. 3.— Ledger. Merchandise. Or. 1859 ' Jan. 1 1 1 1 4 To Barnes Monroe Explanation or Opposite Ledger Title 1859 1 5000 Jan. 2 "vi « s V. s ^ V •>!i 1 :§ ^ 1 By Cash Etplanation or Opposite Ledger Tith ^ ^ > 1050 5 James Monroe. 2 1859 Jan. 1 ByMdse. 1 5000 Cash. 8 1859 Jan. 2 ToMdse. 1 1050 MEKCANTILE TERMS. Ledger Accounts. '"l- very person, species of property or cause, which enters into the transaction, producing a debit or credit, is designated by a name^ whic'i appears upon the Ledger, and is known aa an Account. Each account has two sides, one of which ("the left-hand side) is called Debtor, and the other, (** the right-hand side,) Creditor. Debits and Credits. * These terms are contradistinctive, and are used to denote the relation in which persons, property and causes stand to the business. ** In every transaction the sum of these must be equal. Various authors and teachers have spent much effort, and exhausted both time and ingenuity to bring these terms to the test of some general and " infallible" rale ; while others have gone so far in the opposite direction as to insist that the items of which they are com- posed "would form a list of incongruous facts, having no object in common." Their true significance and use can be ascertained in no way so well as by noting particularly their ap- plication to the various objects and causes which enter into each transaction. ** Each Ledge/ account, by the use of these terms, is made to show an important result of itself. 13 INTKODdCTION. Eesources and Liabilities. "Any kind of value belonging to the concern is a Resource, and **any debt owing by the etmcern is a Liability. "Cash Is tne title to designate money. *'The Cash account in the Ledger is debited with all re- ^eipt5 of cash, and *' credited with all disbursements. ** The difference between the two sidea must, at any time, exhibit a resource of the exact amount of cash on hand. " It will be evi- dent that the credit side of Cash account cannot exceed the debit, as more cash cannot be paid out than has been received. Bills Receivable. "By this title is meant all written obligations of whatever form,* in our possession, for which a certain specified amount is to be received. "The Bills Receivable account is debited with notes received, and "credited with those disposed of, or in any manner canceled. "The excess, if any, must be on the debit side, and will indicate that portion of our re sources consisting in notes. Bills Payable. "By this term is meant the written obligations of the concern, for which a specified amount is to be paid. Under this head are placed, on the credit side, *" our notes and acceptances issued, and on the debit side, *' such of them as have been redeemed. *^ The difference, if tliere be any, must exhibit our outstanding notes, or our liability on unredeemed paper. Merchandise. "This term may be more or less general in its application, according as it embraces a 'arger or smaller variety of property. It usually implies all property purchased or o^vned ' "ly the concern for purposes of traffic, and remaining in store. It generally embraces all such * There are, in common use, two forms of written obligations known as " negotiable paper." One is called • note, and the other a draft, or acceptance. They are precisely similar in their legal effect and value, differing only in form, from the different circumstances of their origin. A Note originates with the payer, and is a voluntary promise to pay, thus : — NOTE. 11000. 18 CooPEE Institutk, Nbw York, July 1, 1869. Sixty days after date I promise to pay S. 8. Packard, or order, one thousand dollars, for value received. H. B. Bbiant. A Draft originates with tke person on whage account the payment it to be made, being in the form of a request thus: — DRAFT. I'.JOO. New York, July 1, 1859. Sixty Days after date pay to H. D. Stratton, or order, one thousand dollars, value received, and chargt U the acxjunt ot S. S. Packabd. To H. B. Bryant, 16 CoorBR Institute, New York. To make the latter equivalent to the former, it is necessary that the person ou whom it is drawn, or of whou the request is made, should respond, wliich he does by writing across the face " Accepted." and signing his uama This IS now as virtually a " promise to pay" as the other, and there is no commercial difference between the two. u INTRODUCTION. property, ** unless the merchant, being curious to know his gains or losses on a particular kind, opens a separate account with that particular kind, under its own special title. ** This account, or any of its correlative titles, is debited with the cost of the property represented, and ** credited with its returns. As this kind of property has no standard or stipulated value, like cash and notes, but is usually bought at one price and sold at another, it will be evident that the difference between its sides cannot represent an exact resource ; but, rather, *' the debit showing its cost, and the credit its proceeds, the difference must be a gain or a loss. * *• ^this is the case, provided we reckon with the proceeds from sales the real value of that which remains unsold. Real Estate. *• This relates to such property as houses and lands, and " the account is similar m its objects and teachings to that of Merchandise. Bank Stock, Railroad Stock, etc.* "Accounts of this kind are not dissimilar to Merchandise and Real Estate, inasmuch as stocks of all kinds are bought and sold at their market value, rather than the value written on their face. Shipment or Adventure. " When property is sent away to be sold by an agent for us we should distinguish it from our merchandise in store by giving it a significant name, such as " Shipment to Buffalo," or ' Shipment to A," our agent, or " Adventure" to the place sent. All such accounts are debited with their entire cost, and credited with their proceeds, the difference being a gain or loss. Should we desire to show the result of our business, before receiving advice from our agent, it is proper to reckon this property as a resource at its cost. " This is but another name for Merchandise, and is used to distinguish between property in store and out of store. Personal Accounts. " Accounts representing personal indebtedness, and designated by the proper names of such persons as sustain relations of debtor and creditor to the concern, are capable of showing either resources or liabilities. " They are debited with such sums as, from time to time, the persons may become indebted to the concern, or the concern has paid them, and *' credited with what they have paid the concern, or the concern may have become indebted to them. " An excess of debits in a personal account will thus show a resource, and '* an excess of credits, a liability. Stock. iJeginners arc apt to misapprehend the term " Stock," supposing it to relate to some kind of property, or rather to property in general. Such is its common signification, but *" when used as a Ledger title, it means simply the proprietor of the business, or the stock-holdQT. " There woula be no valid >bjection to using the proprietor's name instead ; " but as no real * For a full description of Stocks, please refer to page 185. 15 INTEODUCTIOJ^ good would result from the change, authors, teachers and practical accountants have been content to accept the term which custom has suggested. This account is usually the first opened in the Ledger, and is important to show ** the net investment. It is generally credited with the whole investment, and debited with such liabil- ities as the concern assumes to pay for the proprietor. The difference is the net investment, or what the concern owes the proprietor. " It is not customary to use this account during the business, except for the purpose of recording subsequent investments ; but it will appear evident to any studious mind that " it would be philosophically correct to credit the account with any increase of resources, either from actual investment, or from the gains of the business, jtist as often as such increase occurs ; as also to debit it with amounts drawn out by the pro- prietor for his private purposes. ** Such a course, however, would be attended with many difficulties, and we would, by no means, recommend its adoption ; particularly as the same result is achieved with much less labor by the usual method. From the foregoing remarks we gather the following GENERAL PRINCIPLES. The person or persons investing in the business should be credited, under some title, foi all such investments, and also for his or their share of the gains. On the other hand, he or they should be debited for all liabilities assumed by the concern for him or them, for all sums withdrawn by him or them from the business, and for such losses as he or they are entitled to share. II. Cash account should be debited for all cash receipts, and credited for all disbursements. III. Merchandise, and all species of property bought upon speculation, should be debited, rnder some appropriate head, with the cost of the property represented, and credited with its proceeds. IV. Bills Receivable account should be debited with other people's notes, acceptances ana other written obligations when they become ours, and credited when they are paid, or Otherwise disposed of. V. Bills Payable account should be cred.'.ed with our notes, acceptances, or written promisefc to pay when they are issued, and debited when they are paid or redeemed. VI. Personal accounts, such as the names of persons, banks, or other institutions competent to sue or be sued, should be debited under their proper titles when they become indebted to us, or we got out of their debt, and credited when we become indebted to them, or they get out of our debt 16 INTKODUCTION. VII. All expenses, of whatever name, should be debited with the outlay, and all causes, of whatever kind, producing us value, should be credited, under some name, for the amount thus produced. The foregoing principles are all embraced in the followisg simple Formula. Debit what costs the concern value, and credit what produces the concern valuh QUESTIONS FOR REVIEW. Appropriate answers to all the following questions may be found in the foregoing remarks. The student ahould be able to give them without hesitation before proceeding to the main portion of the work. The teacher will, of course, exercise his own judgment as to the thoroughness of this review, and not confine him- self necessarily to these questions. 1. What is book-keeping ? 2. In what do business transactions consist ? 3. What has book-keeping to do with the exchange of values ? 4, How many methods of book-keeping are there, and how are they distin- guished ? 6. Which is the better method, and for what reason ? 6. What is the characteristic feature of Double Entry ? 1. Why must each transaction be entered twice on the Ledger ? 8. What are the three »Qain books in Double Entry ? 9, Which two are sometimes combined in one ? 10. Upon what do the num- ber and character of auxiliary books depend? 11. Describe the Day Book. 12. What should be the char- icter of Day Book expressions? 13. Why is the Day Book alone produced in court? 14. What other hnportance has it ? 16. What is the special use of the Journal? 16. Is it ever omitted? 17. When such is the case, how is its labor performed ? 18. Why is the Journal an important book ? 19. What is the character of the Ledger? 20. What is shown in the Ledger? 21. How many sides has each account, and what are they ? 22. What is an account ? 23. Which is the debit side of an account ? 24. Which the credit ? 25 How are the terms debit and credit used ? 26. What is a sure condition of debits and credits ? 27. Wha* importance is attached to Ledger accounts by the use of debits and credits ? 28. What is a Resource ? 29. What is a Liability? 80. What is meant by the term Cash? 31. For what is Cash account debited? 32. For what credited ? 33. What is shown by the difference between the sides? 34. Why cannot the credit side of Cash be the larger ? 35. What is meant by Bills Receivable ? 36. For what is Bills Receivable account debited ? 37. For what credited ? 38. What does the difference show ? 39. What is meant by Bills Pay- able? 40. For what is Bills Payable account credited ? 41. For what debited ? 42. What is shown by the difference? 43. What is usually implied by the term Merchandise ? 44. What exceptions are ther*^ to tliif general application ? 45. What is Merchandise account debited with ? 46. With what credited ? 47. What Is shown by the difference? 48. Is this always the case? 49. When is it? 50. What is meant by Real Es- tate? 61. How is the account kept? 52. Wherein are accounts with Bank Stock, Railroad Stock, etc., simi- lar to Merchandise ? 53. What is meant by Shipment, or Adventure ? 54. Wherein do such accounts differ from Merchandise? 55. What are shown by personal accounts? 56. With what are they debited? 57. With what credited? 58. What does an excess of debits in a personal account show? 69. An excess of credits? 60. What is meant by the term Stock 1 31. Would there be any valid objection to using the pr»> prietor's name instead ? 62. Why is not this done ? 63. What does Stock account show ? 64. Is it custon» ary to use this account during business ? 65. Would it be improper to do so ? 66. Why is it not done ? The student should either commit to memory the seven General Principles laid down, or satisfy the teacher that he fully understands them It is impossible that he should be able to proceed without the knowledge which they convey. 17 GENERAL PLAN OF THE WORK. The dosign of this book is to supply what its authors have been led to consldei ad important deficiency in the high schools and academies of the country — the want i»r a competent text-book on commercial science. With this view, great care has been taken to make the instructions progressive, and as full as possible. The first four sets — with their intermediate " Exercises for the Learner," — are intended to establish, as far as possible, the theory of accounts. These sets, although each is distinct' in itself, illustrate the continuation of the same business, from year to year, with sucl changes in proprietorship, and such varieties of success and adversity, as are usual m business. The process of opening a new set of books from the Balance account of an old, is here most thoroughly shown up, and cannot fail to give light upon a subject which is often calculated to confuse the tyro, viz. : the perfect analogy between a statement at closing^ and a statement at commencing business. The first three of these sets represent the business of a single proprietor, who, at the close of ihe third set, admits a partner, and the business itself undergoes an important change. Set 4, is both comprehensive and pract ical, written out in full, with numerous auxiliaries. The theory of Merchandise Company accounts, is here fully discussed and illustrated. The Day-Book and Journal are combined in one, and many important features are introduced. Set 5, is, perhaps, the most severely practical of the series, showing the routine and forms of a large Jobbing and Importing business. The materials for this set were obtained from one of the most extensive Importing and Jobbing houses in New York, and its importance cannot be over-rated. The introduction of Single Entry books in the body of the work is an original feature, and one which we feel sure will be appreciated by teachers. Ample instruction is here afi*orded in Single Entry, with a view of changing to Double Entry. The position assumed by the authors is that the peculiar features of Single Entry can be better explained to one under- standing the principles of Double Entry. The Farmer's set, which succeeds, embraces new and important features, among which Is the use of the six-column journal, and a few practical forms. In the transactions of thi» et, sufllicient variety has been given to fully illustrate the adaptation of farming business Uj systematic and satisfactory record. The "General Instruction" in the latter part of the book is necessarily circumscribed, and yet we trust its importance will not be overlooked. We have here been enabled to put forth hints and applications which could not well be done in connection with the main work, it is to be hoped that the teacher and i "^udent will not fail to consider this a part of the treatise. Especially should care be taken to carry out the design of the work in writing up the series of " Exercises for the Learner." This feature, more than any other, is relied upon to produce good fruits. 18 SET I. DAY-BOOK, JOURNAL, AND LEDGER : REPRESEFTING THE BUSINESS OF A SINGLE PROPRIETOR. BUSINESS PROSPEROUS. INSTRUCTIONS, INSTRUCTIONS FOR SET I. It should be the first care of every student to mark his own progress, not by the extent of his studies, but by the amount of useful information secured. Particularly should he be careful, in entering upon a new department of study, to thoroughly comprehend each progressive step in the unfolding of its principles, that in their application, he will be enabled to constantly keep in view the result of his labor. There is no science more liable to be gone over by the easy process of copying, than that of Book-keeping, as it is presented in the majority of text books. It is essentially a science o^ forms — or, more properly, its principles art* best shown through forms, which, being submitted, offer serious temptations to the mere copyist. We have endeavored to avoid this evil as far as possible, and have, therefore, left for the student plenty of brain-work, which, if he honestly performs, must advance him in the science. The general instructions given in connection with this set will apply with equal force to the succeeding work. They should, therefore, be properly heeded. To the majority of learners the following forms, and the order of entry to be observed, will be immediately apparent ; but for the benefit of those who may not observe so readily, and to follow out the original plan of this work — to divest the study of Accounts of even the appearance of mystery — we give the following brief exposition. In writing up this first set, it will be well to employ loose paper. If it cannot be obtained readily properly ruled, let the student rule it for himself This exercise will be found highly serviceable. First, copy the Day Book, observing well the form and expression. Do not copy the footings of the money column from the book, but perform the addition without assistance. First add the columns vpzvards, and then prove the result by adding dmvnwards. Careful accountants usually write the amount in pencil and carry forward. This is to avoid ink erasures, in case any of the additions should prove, on examination, to be incorrect. The ^ii's^ accountants are generally those who do the least scratching in their books. In journalizing the transactions, the careful student will always keep the Ledger in view, as the process is simply deciding how the accounts shall stand on the Ledger. Let the de- cision be made, in every case, in accordance with the principles laid down. In this set the transactions are the most simple that could be suggested, each requiring but one debit and one credit entry. Let the check-mark ( /) be made opposite the Day Book entry, ''immedi ately upon its being journalized — never before. Transferring to the Ledger is called '"posting." If the transactions are properly jour- nalized, the labor of posting is simply mechanical. It requires great care, however, and con- stant watchfulness, and nothing is more common with new beginners than errors in posting. •As these errors must all be found and corrected before he can progress, the student will find discretion to be the better part of valor, and, after confusing his brains and sharpening hi> wits as a detective for a few days, will come to the conclusion that errors are much more easily avoided than detected. Commence with the first account indicated on the Journal, and write it as a heading in the Ledger.* See if the amount opposite be in the debit or credit Journal column, and enter it * It is customary and proper always to open as the first accounts in the Ledger, * Stock, or the Partners. Some houaes, desiring to keep the particular interests of the partners, or the conditions of the copartnership from the public, or from the knowledge of any parlies except themselves, keep a private Stock Ledger, to which even the bot k-keeper has no access. In sicb cases the books are kept as Stock books, with but one account to represent the CADitaL 20 IjySTKUCllOJSIS, — SET 1. on the corresponding side in the Ledger, using as an expression *the opposite jouifl^ ^«^ am proouo^d.) €r. 1889 r |1859 li Jan. 8 To Cash 1 1400 Jan, 6 By Cash 1 1) 80O « 10 Bills Payable 1 286 " 6 H. D. Stratton 1 1 40 M u " " 2 1000 M 12 Bills Rec'ble 1 1 67 50 « 88 J. D. Comstock 8 96 " 16 20 Cash E. G. Folsom 2 1 2 ! 18 i76 115 ' (Vk rii " 26 Cash 2 !! 676 1 />m \JUt» IIIIM It I^M * ! 1 1 Wt. (Our % a^oliMt iWm.) H., ID. StrSftt-Oll. KEU fh againtt ub.) dTt. 1869 Jan To Mdse. 40 1869 Jan. 22 By Cash 20 • Tbis phrase may not seem, at first view, properly signiflcent ; but we apprehend that it is truthful, nevertheless. For, although it may not be true that the difference between the cost of merchandise and the proceeds of a certain portion sold exhibits the net cost of that which remains unsold, yet that difference does express what we lack so far, in receiving as much as we have paid for merchandise; therefore, we say it has really cost us this difference. If this amount should express the cost over proceeds, with the property all disposed of, it would represent a loss ; but a? there is yet actual value in that which remains unsold, we can safely anticipate farther proceeds equal to that value. When this is shown, as it will be in the final exposition, the difference between the cost and the returns will be th« gain or loss. D S6 2 LEDGER— SET I. DDr. {Our Mtet Bedtmed.) BUlS P^aySlTDle. {Our ITotet Umud:, €r. I 59 23 ToCaab 1869 2 600 Jan. (i 9 10 14 By Mdse. Peter Cooper Mdse. 1 286 1 500 2 1000 ITW IM> »'/» nUr. ( «A«-«' 2rou» recced.) BUls !E^eoeiva"ble. (cwur. kous ditpo»td qf) (Hr. '869 Jan. 12 To Mdse. 6Y 60 {Di '• (Outlay.) li^xpense. Cr. 1859 Jan. M 15 81 To Cash « 2 2 20 164 — Or. (Otir % «va. I 1235 %5 LEDGER, SET I.— Closed. mr. Bills PteceivalDle. €t. 1869 Jan. 12 ToMdse. I 57 60 1869 Jan. t(l By Balanct, =r 1 11 ei To Balance 67 60 1 EDt. Ituxpense. ar» 18459 /an. « 16 81 To Caslk 2 2 20 164 1869 Jan. 81 By Lou and Oain. =r i« 184 184 I3r l^r. E. Gr. F'olsom. J. ID. Comstook. (irr. ir>Hi r 1 1869 20 ToMdse. To Balance 2 IIB 1 1869 Jan. 81 By BaUme$ ^= 111 =:• F«6. 1 116 (Tr. Wt. 1869 /aTi. 81 6) '. Loss and. O-stiii. €r. To Expense Stci , 184 114 r& 1869 Jan. 81 ByMdse. 808 808 7« 808 76 78 Slhr. Balsmoe. sa Cr. '869 1859 . — Jhn. 81 To Mdse. 1888 sf Jan. 81 By Bills PayaDle* 1286 M 8] Cash 4429 76 " 81 J. D. Comstoci 96 M 81 H. D. Stratton 20 M 81 Stock 4624 76 M 81 Bills Receivable 67 60 M 81 E. G. Folaom 115 ' 6966 76 «»66 71 1 GEJSERAL EEMARKS. GENERAL REMAEKS. By referring to the Balance account in the preceding Ledger, we shall find "a full state ment of the resources and liabilities of our concern on the 31st of January. Should we desire to open a new set of books on the 1st of February, "we have all the necessary information for that purpose ; or we can represent the state of our affairs in our present Ledger, " simply >j bringing down the balances showing resources and liabilities under their separate accounts, fastead of transferring them to Balance account. "This we have done. It will now be evi- dent that ** there was no actual necessity of opening a Balance account ; the only object in doing so was ** to exhibit, under one title, the resources and liabilities. *' In practice, this account is rarely ever exhibited on the Ledger, but ** its contents are shown in a separate Balance Sheet, various forms of which we have given elsewhere in this work. It is often a matter of wonder to the new student in Accounts why the difference between the sides of Stock account, being transferred to Balance account, should equalize it. A mo ment's thought will dispel the mystery. " Before closing any of the accounts in the Ledger, we ascertain by the Trial Balance that our debits and credits are equal, and we take care, iu Q^ery step, to keep them so; for whenever we debit any account, we credit some other ofl^ count with the same amount, and vice versa. In "closing up" the Ledger, we call this process " transferring ;" but it is exactly ** equivalent to posting. Let us see if this is not so. "The first entry of this kind was to credit Merchandise and debit Balance with the prop- erty unsold. So far as this affected our Merchandise account, it was equivalent to selling the merchandise, and receiving therefor an absolute resource, which we have called " Balance," but which is Merchandise, reckoned at its true value. We can now treat our Merchandise account as if the property were all disposed of. This we do, in fact, by representing the dif- ference between the sides as a gain. We now debit Merchandise account with this gain, and credit Loss and Gain, preserving, as before, our fundamental rule of " equal debits and credits." We pursue this policy with all the accomits, transferring always to the opposite side from that on which the closing entry is made, and thus mamtaining a perpetual equilibrium. **The balances which we transfer to Loss and Gain account might, with equal propriety, be carried directly to Stock account, but that *'it is desirable to exhibit, in one amount, the net gain or loss during the business. It will be borne in mind, that the balancing or closing of an ao- vJuunt is simply "upon the principle of cancellation. The accoimt is made to "balance" only '" by taking away the excess. But that excess appears " elsewhere, and on the same side of the Ledger. These balances of gains, losses, resources, and liabilities are thus transferred to the two CAJcounts, " Loss and Gain" and " Balance," thus exhibiting in the former, all the gaina and losses, and in the latter all the resources and liabilities. This leaves, except the Stock ac- count but these two accounts open, which, taken together, must have equal debits and credits, " as w e have never failed in each step to produce this result. The Stock account, as it now Btands, shows ** the capital at commencing^ and the Balance account " the capital at closing. There must, of course, be a discrepancy between these two accounts, "exactly equal to the gain or loss in business. Now as the gains and losses are all shown in the Loss and Gain account, "the difference between the sides being the net gain or loss, it follows that this differ ence must exactly equal the discrepancy between the capital at commencing, and the capital at closing ; or, in other words, between the Stock and Balance accounts. If, then, we close the Loss and Gain account into Stock, we shall have exhibited in Stocii account, "first, the capital at commencuig, and next, the gain or loss during business, which, together, must equal the 37 • GENERAL KEMAKKS. capital at closing. " The Balance account showing all the resources, and all the outsme liabili ties at closing, must represent the same amount ; and hence, the balance of either transferred to the other, must equalize the sides. This is usually one of the most difficult points of comprehension in the student's path, but al. such difficulties give way readily to a little momentum of reason and determination. It will be apparent that throughout the discussion thus far, we have drawn a marked dis tinction between the proprietor and the business. It is necessary that this distinction be clearlj apprehended before we proceed farther ; as, if there is any thing peculiar in this treatise, it R'ill be found to emanate from this recognition.* The great fact to which we refer, is strik Ingly apparent in the first entry upon our books, which was to credit Stock with the invest ment. Now if we inquire who credits Stock, we shall be forced to the conclusion that there is a party represented here, entirely distinct from stock, or the proprietor; as it would be sheer nonsense to express the fact that a man owes himself. The person competent to con- struct a system of philosophy on such a basis, would be able to show how a man might lift himself by his own boot-straps, or get rich by taking money from one pocket and putting it in the other. The fact clearly stated is, that the books represent " the concern, and not the proprietor, and the account opened with " Stock" is precisely *' the same as that opened with any other person, except that the final settlement with Stock will not take place until the business ceases, or he withdraws from it. If Stock account, then, shows an excess of credits, "it is as much a liability as Peter Cooper's account, and must eventually be canceled by pay- ment as well. To make this still more plain, let us see in what light Stock himself views it. Suppose the investment in this enterprise is only one among many which he has made. Sup- pose he has, also, a mill, wherein he has invested $10,000; and a tannery where he has in vested $15,000. How will he keep an account with these three distinct concerns in his private books 1 According to the principles of accounts, he will charge the mill, the tannery, and the store, each with its cost, or the amount invested in it. He does this upon the principle of Holding these concerns responsible for such investment, and upon the full expectation that they >Till eventually pay him what they thus owe. Our reasons for crediting Stock on the books of the store (which is the concern here represented) will now be sufficiently apparent, and the attentive student cannot fail to see that this credit is as much a liability of the concern as any credit on our books. If there be still any doubt as to the correctness of this position, let us dissipate it, at once, by analyzing the second entry in the preceding series of transactions. The first entry, accord- ing to our theory, gave us a resource in cash of $5000, and a liability to Stock of the same amount. The second entry, which we propose now to consider, created a new liability to Peter Cooper of $500, but, at the same time, reduced the former liability to Stock in the same amount ; so that the relative position of our resources and liabilities was not changed. The reason for this entry was this : Stock was owing Peter Cooper $500, which he did not * All authors whom we have consulted — and " their name is legion" — agree that " Stock," as a Ledger title, 'epresents the proprietor, or as some few elegantly express it, "the owner of the hooks f while not one among them tttemftsto give a reason for crediting this account with the investment, except that it is used to represent the capital ; a" j of all the rules given, both fallible and "infallible," for journalizing, no one attempts to apply such mU? to the n/st, or opening entry. Now, it is impossible, grammatically, that the same set of books shou d, at the Sao.-* time, represent two distinct and opposite interests. All the expressions used in the books purport to em- anate from some person or persons having a common interest in the transactions, and all the entries, of whatever nature, must necessarily be tue exponent of the same interests. A pronoun in the lirst person, either expressed or understood, cannot property represent two separate and distinct parties in the same sentence, or the same dis- cussion. So, if it be necessary, in crediting Stock for the original investment to assume a position distinct from Stock, t'_e same necessity must exist, with equal force, through all the subsequent entries. The m-jre this Dosition ■h studied, the more apparent will be its truthfulness. 38 EXERCISES FOR THE LEARKER. care to pay from his private funds. He reasoiis thus : I have $5000 which I can invest in this business, but I also owe Peter Cooper $500, which is not yet due. Now I will invest this capital upon the condition that this liability be paid by the concern when it matures. The concern accepts this proposition, and first credits Stock with his investment, and next debits him wijh the amount assumed for him. The liability to Peter Cooper is now transferred from Stock's private books to those of this concern, and the concern's liability to Stock is decreased to the extent of the new liability thus assumed. EXERCISES FOR THE LEARNER. FIRST SERIES. It LS hoped that the preceding exercises in their fullness of explanation and illustration wi J enable the student to carry successfully through a series of transactions embracing the same general principles. The following memoranda will comprise a month's business, and the stu- dent is required to write up therefrom all the books represented in the preceding series. The form and arrangement of the books he will of course gather from the examples given ; and ne will find no point of difficulty which has not been fully discussed in connection with Set I. These exercises will require him to study well the form of expression in the Day Book, and the principles which govern the Journal, and will afibrd an excellent test of his proficiency in what he has passed over. The great objection to be urged against published text books in this science is, that too little is left for the mind of the student. There is a wide difference be- tween copying the forms in Accounts and originating them ; and hence we have followed each exemplified set of books, with a series of transactions embracing the same principles — which 3he student is required to put in proper form in the various books — and giving the result of ie entries which he is required to produce. If we are not greatly mistaken, this will be Sr.und the most useful portion of the work, and should, under no circumstances, be omitted. Memoranda. i.an. 1st Commenced business f E. B. Rockwell, $250. 31 sn Paid Store rent, in cash. $100 39 EXERCISES FOR THE LEARJS^EK INVENTORY* Mdse. remaining unsold Jan. Z\st. 50 bbls. Flour, .... 10 pieces Calico, .... 25 do Merrimac Prints, 10 do figured Silks, If these accounts are properly kept, the first Trial Balance and the Balance Account inll each represent the following statement : . $500 3 . . . 30 5 . . . 125 9 . 90 $745 First Trial Balance. 7180 3003 180 950 100 170 133 500 12216 75 75" Stock . . . Cash . . . Merchandise . Bills Payable Expense . Bills Receivable J. D. Williams W. E. Crocker R. C. Spencer E. B. Rockwell 6000 2883 2513 150 250 170 250 12216 75 75 Balance Account. Hesources Cash Merchandise . . . Bills Receivable . . R. C. Spencer . , E. B. Rockwell . . 4297 745 950 133 75 250 75 6375 Liabilities. Bills Pavable . J. D. Williams Stock . . . . 150 150 6075 6375 7i 71 • Tke 8'.'jdtnt will please ascertain if this ii oomn. 40 QUESTIONS FOR EEVIEW. QUESTIONS FOR REVIEW. CLOSING THE LEDGER. \. What is the chitf difficulty with learners m closing the Ledger ? 2. What is the eflfect of * ^ortng ij*" jn account? 8. Hjw is a Heal account closed when the sides are equal? 4. How, whtn UDf^quail . How is a /iepresen,000 6926 10000 2a , ! Sold J. T. Calkins, on his note @ 20 days, ^ I 50 yds. Broadcloth ^14 y y 14 Bought of S. S. Guthrie, Buffalo, on our acceptance at 60 days favor of A. M. Clapp, 200 Bbls. Flour @ $8 15 Sold D. L. Wing, Albany, for Cash, 50 Bbls. Flour @ |8.25 . . . . 16 Paid Drayman's Charges in full to date 18 H. B. Bryant has made the following additional investment of Re- sources bequeathed him by a deceased uncle, 50 Shares Union Bank Stock valued at $105 $5250 00 Cash deposited in Union Bank 1000 00 20 Sold for Cash to B. McGann, 20 Shares Union Bank Stock @ $108 200 1600 413 5C Sold John W. Gantz, 24 ylOO yds. Black French Cloth @ $5.75 . . . , Received in Payment, Cash $200 Balance oi jg 375 — $575 25 »/ I Paid for repairing store, per order on E. G. Folsom y y Beo'd Cash for 5 per cent, dividend on 30 Shares Union Bank Stock 28 -- Ptud Clerk's Salary to date $50 Paid Store Rent to date 100 6250 2160 575 65 150 150 28493 76 45 JOURNAL— SET II. NEW YORK, FEBRUARY 1, 1859. Bt. Or. Sundries Cash . . . Bills Receivable 1 Merchandise . E. G. Folsom H. D. Stratton Dr. To Sundries * To Bills Payable " J. D. Comstock " H. B. Bryant Sundries Cash . . . S. S. Packard Dr. To Merchandise . . . . Cash Dr. To H. D. Stratton Merchandise Dr. To Sundries To Cash " E. G. Folsom . . . " Ivison & Phinney . . Merchandise Dr. To Dawson, Warren & ITydej Bills Receivable Dr. To Bills Payable . . . . Cash Dr. To Merchandise 4429 57 1333 115 20 75 50 50 20 52 20 212 62 500 103 6926 50 50 1235 96; 4624 76 72 50 25 20 50 50 112 62 500 103 6926 50 50 50 25 • The term " Sundries" is difficult of explanation to a beginner ; and many teachers and a few authors h»Tt thought tc get rid of the difficulty by ignoring the term, upon the principle often quoted, that — " Where ignorance is bliss, 'tis folly to be wise ;" out, like most attempts of this kind, it falls very far short of its object ; for, however unnecessary the term may b« in journal expressions, its convenience will secure its perpetual use by practical men, and the sooner it is com- prehended by the learner the better. As used in this connection, it is, as will be readily seen, merely a eaptioH for the Journal entry, indicating that the entry consists of sundry debits and sundry credits. These sundry debits and credits being afterwards specifically named, and their amounts extended, it is easy to infer that "Sundries" is not used as a Ledger account, but merely as an expression. Its convenience will be more readily apparent in posting to the Ledger, as it affords an expression to be entered under the Ledger title. There are, iu reality, four kinds of journal entries, each requiring a different expression, viz. : 1. Those consisting of one debit and one credit ; 2. Those consisting of one debit and several credits ; 3. Those consisting of one credit and several debits ; 4. Those consisting of several debits and several credits. Each of these is illustrated in this joomal, and a little careful attention will make the student sufficiently acquainted with their characteriatict. 46 JOURN'AL — SET II. NEW YORK, FEBRUARY lO, 1859. Br. nr. Amount brought Forward 10 Real Estate Bills Receivable Meruiandise Gash Expense Sundries Union Bank Stock Union Bank . . Cash Sundries Cash . . . , John W. Gantz Expense Gash Expense Dr. 14 Dr. 15 Dr. Dr. To Cash 18 20 Dr. 24 Dr. To Merchandise. Dr. 27 Dr. 28 Dr. To Cash Dr. To Sundries To Cash " Mortgage Payable* . . 12 To Merchandise . . . . To Bills Payable . . . To Merchandise . . . . Dr. To H. B. Bryant . . . . To Union Bank Stock . . 6926 10000 2oo; 1600 412 25 50 To E. G. Folsom . . . . To Union Bank Stock . . 5250 1000 2160 200 375 65 150 150 28493 75 6926 1000 9000 200 1600 412 5 6250 2160 575 65 150 150 28493 25 50 75 • The term " Mortgage Payable" is but another name for Bills Payable : the accounts may be kept separate ot together. We have adopted the former method, for the purpose of illustrating the principle, and to express oui preference. There is a distinction between a promissory note and a mortgage on real estate ; and the majori^ 01 business men would prefer to have that distinction preserved in their accounts. 47 LEDGER,— SET II. tUr. PI . B. Bryant. OTr. 1859 Feb. 1859 Feb. 1 18 By Sundries IHM n 1 3 4624 6250 75 [Ur. Cash.. €r. 1859 1 lil859 1 i 1^ Feb. 1 To Sundries 1 4429 75 Feb. 3 By Mdse. 1 50 " 1 Mdse. I 20 " .10 Real Estate 2 1000 ' 1 H. D. Stratton 1 20 " 16 Expense 2 5 8 Mdse. 2 103 50 « 28 8 150 15 " 2 412 50 IMS 20 24 27 Union Bank Mdse. Union Bank Stock 2 2 3 2160 200 150 1 f«M n 1 1 t 1 1 mr. BiUs Reoeiv«%ble. €r 1869 Feb. To Sundries BiUs Payable Mdse. 1 87 1 60 2 600 8 200 « I Ur. lvlerolia,Tid.ise. Cr. 11369 To Sundries ] 1 1 1869 72 Feb. 1 1833 60 Feb. 1 By Sundries s " 8 |2 i 212 60 " 8 Cash 2 103 ft( 7 Dawson, W. A Hyde 2 62 60 " 12 Bills Receiyable 8 200 " 14 Bills Payable 8 1600 « 16 Cash S 412 M M* w « 24 Sundries 4 676 SDr. H. XD. Stratton, Cr. (869 ! ! Feb. I 1 To Sundries 20 1869 Feb. By Cash. 8U Wr. Wv. E. Gr. F'olsom. Bills Bayalole. Ct. 869 1 To Sundries 1 116 1859 Feb. « 8 26 By Mdse. Expense lU 1 8 60 66 Cr. 48 1869 Feb. By Sundries BlUs Receivable Mdse. 1286 600 1600 LEDGER,— SET II. IDt J". ID. Ooms-tock, dr. 1869 Feb. 1 By Sondriee [ . 96 Sr. S. S. Jb-'aokard.. €r. 1869 F«b. 1 loMdse. I 62 ' - JUr Ivison P'tLiniiey. Cr. 1869 Feb. 8 • • By Mdae. I 112 M IDr. IDa^wson, "W^arreii liyde. €r. 1869 Feb. 6 ByMdae. 1 «2 K mr. IFteal Estate. «r. 1869 10 To Sxmdriefl 2 10000 IDr. Iv^ortgage Fayable. dTr. {l869 Feb. 10 By Real £sUt« 9 9000 mr. Expense. Cr. 1869 M M 16 25 28 To Cash E. G. Folsom Cash w 8 8 4 6 66 160 1 JUr. Union Bsmk Stooh:. €r. 1869 ^«6. 18 EL B. Bryant 8 6250 1869 10 pByCash 1 2160 1 160 1 lUr. XJnion Bank. Cr. 1869 Feb. 18 To H. B. Bryant % 1000 Sir. Joiin "W. Grantz. ' Cr. 1II&9 /"eft. h roMdae. 4 876 \ 49 GENERAL STATEMENT,— SET II. GENERAL STATEMENT. In the preceding Ledger (Set II.,) we have the current condition of H. B. Bryant's business on the 28th of February, as far as that condition can be shown by the Ledger, without closing the accounts. This part of the labor we leave for the student ; but shall give, in this conneo- tion, a statement which will afford him efficient aid. It is essential that the principles of thii statement, as also the peculiar form and method of enforcing these principles, be clearly com prehended, as herein lies the key to much that at first seems mysterious and incompre- hensible. It will be seen that this statement differs from the previous one (Set I.,) only in form and arrangement. Trial Balance. Differences. Face of Ledger. Ledger Accounta, Face of Ledger. Differences. H B. Bryant T . . . . ! 10874 75 10874 7ft 6290 75 7495 75 . Cash ; 1205 757 50 757 50 . Bills Receivable ^ 1845 50 3208 20 50 . Merchandise . H. D. Stratton ^ . . . . 1363 20 1 115 . E. G. Folsom * Bills Payable \ . . . . J. D. Comstock .... 115 3335 96 3335 96 52 52 . S. S. Packard Ivison & Phinney .... 112 50 112 50 Dawson, Warren & Hyde . ' 62 50 62 50 10000 lOOOO , Real Estate . Mortgage Payable . 9000 9000 220 220 . Expense ' 2940 5250 . Union Bank Stock ... 2310 1000 1000 . Union Bank 375 375 . John W. Gantz . Equilibrium 23480 75 i 28493 75 28493 75 23480 7ft I Inventory of Unsold Property. 140 yds. English Broadcloth . . @ $3,00 . 200 do Domestic Cassimere . . @ 1.00 . 2 dozen Soft Hats @ 24.00 . 15 reams Foolscap Paper . . . @ 3.50 . 100 sets Spencerian Writing Books @ 75 . 38 Gold Pens @ 1.25 . 150 Bbls. Flour @ 8.50 . 30 Shares Union Bank Stock . . @ 1.03^ Store and Fixtures valued at 50 GENERAL STATEMENT,— SET II. Statement of Liosses and Gains. — ^Representative Accounts. MKRCHAia)ISB, 1 Profteda frc»n sales Vahu of that unsold {per Invoiced Total proceeds Cost 1363 00 2118 00 Lo8te». Gaina 220 i 2212 50 272 2000 160 3481 00 8208 60 272 60 12000 00 10000 00 2000 00 Rkal Estate, Oain Vahie of property unsold . . . Cost 50 Oain Outlay Proceeds sales and dividend . . Value of unsold Total proceeds Cost Expense, ' Union Bank Stock, . . . 1 * 2310 00 3100 00 6410 00 6260 00 Cfmn 160 00 JVW 9mn 50 2432 2432 50 _ Statement of Resources and Iiiabilities.— Real Accounts and Inventories 1st. From Inventories of Unsold Property. Merchandise Union Bank Stock Real Estate , Cash, 'id. From Ledger Accounts. Amount Received 7496 T6 Disbursed • 1206 00 Balance on hand 6290 95 Bills Receivablk, . Bills Payable, i J. D. Comstock, : S. S. Packard, I IviSON & PuiNNET, I Dawsc^n, Warren & Hyde We owe them Notes received, and on hand Notes iss7ied and unredeemed We Otoe him He owes us We Otoe them ; Union "Bank, i John W. Gantz, ' Mortgage Payable, H. B. Bryant, Deposits in our favor He owes us Mortgage issued and outstanding .... His net investment 10874 Y6 " " gain 2212 60 His present interest . . 18087 26 Reaourees. 2118 3100 12000 6290 75 JAabilitiu, 757 50 52 1000 375 3335 96 112 50 62 ,50 25693 25 9000 13087 25 25693 .25 51 EXERCISES FOK VRE LEARNER— 2d SERIES. The theory enforced by the preceding " General Statement," is one that must perpetnallj govern the record of business transactions, and one that will afford ample basis for explanation to those not thoroughly familiar with the science of Double Entry. It is, simply, that all gains or losses in business are substantiated by the actual increase or decrease of net resources. As simple as this proposition may appear, it will require not a little well-directed mental effort to comprehend it in all its special relations and applications. The student is now required to " Close up" the Ledger according to instructions in Set L EXERCISES FOR THE LEARNER. SECOND SERIES. Feb. 1st, Commenced business with the Resources and Liabilities shown in Balance account, Ledger A.* Sold John D. Hinde on %, 50 bbls. Flour, @ 111. Bo't of John Gundry for cash, 200 sacks Coffee, 13,000 lbs. @ 9 c. 2d, Accepted J. D. Williams' Draft on us @ 10 days, in favor of E. C. Bradford, in full of his %. 3d, Bo't of D. C. Collins 500 bbls. Flour, @ $8; Paid him cash, $1500; order on R. C. Spencer, $133.75; our note for balance, due in four months. 4th, Paid cash for sundry expenses, $15. Sold to J. A. Harper for cash, 200 bbls. Flour, @ $8.25. 5th, Received cash of Hiram A. Pryor, in full for his note of $950. 6th, Paid our note in favor of C. S. Sill, given him on the 4th ult., in cash, $150. 7th, Rec'd cash of E. B. Rockwell, in full of %. Paid Store rent in cash, $150. 8th, Sold Samuel Jones on his note, 300 bbls. Flour, @ $8.50. 10th, Sold J. II. Bell on %, 10 pieces Calico, @ $3.75. 15th, Received from the executors of my deceased father's estate, in cash, $1200. 16th, Paid cash for acceptance favor of J. D. Williams, 2d inst. 20th, Sold Henry A. Wise, 10 pieces figured Silk, @ $10. Received in payment his draft @ 10 days on John Brown. 22d, Bo't of James Buchanan on %, 6 pipes of Wine, 720 gallons, @ $3.50. 25th, Sold our sight draft on J. D. Hinde, to balance his %, for which received cash. 28th, Discounted our note of 3d inst., favor of D. C. Collins, due in four months from date Paid for face of note, less discount for 8 months @ 7 per cent., in cash, $2324.84. Trial Balance. e= — = . Differences. Face of Ledger, Face of Ledger. Differenctb. . . . Stock 7275 75 7275 75 3437 16 8897 . Cash .... 5459 84 3547 50 8435 . Merchandise . 4887 50 2650 1 3600 133 250 2666 150 550 75 25 . Bills Receivable . R. C. Spencer . . E. B. Rockwell . Bills Payable . . J. D. Williams . J. D. Hinde . 950 133 250 2006 150 550 75 25 165 165 . Expense. . . 37 50 j 37 50 . J. II. Bell . . . J. Buchanan . Discount . . 2520 41 41 ~50~ 2520 41 41 P837 16 24884 50 24884 9837 16 , 1 * This is, of course, the Ledger connected with the Mrii Series, the result of which the student is supposed U lave shown according to directions. 52 EXERCISES FOR THE LEARKEli— 2d SERIES. Inventory of Property Unsold. 25 pieces Merrimac Prints 200 sacks Cofi'ee, 13000 lbs 6 pipes Wine, 720 gals. . • • • • . . @$5 . . . . . . @ .09 . . . . . @ 3.50 . . . 126 1170 2520 3815 Balance. Resources. Cash Merchandise .... Bills Receivable. . . J. H. Bell 3437 3815 2G50 37 16 50 66 Liabilities. J. Buchanan .... H. B. Bryant. . , . 2520 7419 fi6 9939 9939 66 1 The student will see the importance of carrying these transactions through the necewarf books to their final result, as shown in the above Balance account. Let him not omit to make out a General Statement, and close the Ledger in strict accordance with the mstructiona on these points. 58 AUXILIARY BOOKS, We give below two of the most common and essential auxiliary books in use, the Cash Book and the Bill Book. A moment's inspection will suggest the great advantage of these books, as showing special facts not easily gathered from any other source. The Cash Book, when kept, is closed every night, and the balance — which must agree with cash items on hand — brought down as a basis for the next day's business. This necessity of having the difference between the receipts and disbursements of cash, as shown by the two sides of the Cash Bovjk, agree with the cash on hand, is the best possible safeguard against errors and omissions, and one which we shall more fully exemplify hereafter. Cash. Bools. Cash Received. mnjii-j ■ Feb 1 To Stock, . . . . Atnomnt invested ...... ! 4429 75 iti.sesi (( (( " Mdse., .... Sold S. S. Packard ' i 20 K 2 " II. D. Stratton, . Rec'd onfc 20 .( 8 " Mds'e., .... Sold J. H. Ooldvnith 103 50 »< 15 « (( SoldD.L. Wing 412 50 i' 20 " Union Bank Stock, Sold B. McOann 2160 U 24 " Mdse., .... Sold J. W. Oantz 200 (( 27 « Union Bank Stock, Rec'd for Dividend .... From old % 150 7495 75 7495 ~6290 75 To Balance . 75 Bill Book. m WhmBetfd. Ihateer or Endorser. Drawee or Maker, In Whose Favor. Far What Redd. \ Where PapabU 1 % 8 Feb. M « 1 7 12 B. McGann. H. B. Bryant. H. B. Bryant. 8. S. Packard. Digby V. Bell. J. T Calking. H. B. Bryant do do do do Inrestment Accommodat'n. Merchandise. Our Office. do do do do Bill Book. So. When Issued \ 1 Drawer or Endorser. Drawee or Maker. In Whose Finor. Fbr WhatChven. '■ • ■■■'■ ■ ■■'■g Wh^re Payabr* 1 Jan. 9 Francis k Loutrel n. B. Bryant. F. A Loutrel Merchandise. College Bank 8 « 14 Smith & Co. do do Smith A Co. do do do 8 M 10 Peter Cooper. do do W. H. Beebe. To Balance %. do do 4 Feb. 7 Digby V. BelL do do Digby V. BeU. Accommodat'n. do do B M 14 S. S. Guthrie. do do A. M. Glapp. Merchandise. do 4o 54 SET II. The Bill Book should never be omitted in any business dealings with notes, either payable or receivable ; and especially is it important to keep a record of the amount and condition of notes payable. It will be seen that the entries made in these auxiliaries are taken fiom the transactions of Set II., and hence the cash on hand, notes on hand, and notes outstanding, as here shown, will be found to agree with the balance shown in the proper Ledger accounts. The forms submitted are those m general use, and are sufficiently suggestive. CsLsli Bools. Cash Disbursed. Feb 3 ByMdse., . . . 10 " Real Estate, . Bo't of Ivison & Phinney . . . ' Paid on Store aiid Fixtures . . . : 50 1000 U 16 2ft u " Expense, . . •* Jtialance . . Paid Drayinan in full ..,.'. Pmid Cler/i^a salary and Store rent . . Amount on ksatd i 5 150 1205 6290 Tf ^^.--^^"^^^ 7495 76 ReoeivalDle. jjou. Tim*. WTienDu*. dm'nt. W?ien and hots Itm. MofUk. 1859 Jmm jiw ;jr«r Avf ^Hot *m M iMf 9V OM Mm Dm disposed of. 1469 Jan- 12 60d'8. SIM ^ M Feb. 7 sod's. 1859 A 500 « M 18 SOd's. 1859 14 900 Fsiyable. DaU. lltns. WhenDus. Am'rU. ^hen and Mm redeemed. Tmf. JfiwO. Tmr. /«. n» JTar Apr Ma, Jim Jul Am, *P OM Mm Dm 1S59 Jan. 9 90d'8. 1859 h S8S 1859 i< 14 40 d's. 1859 23 1000 1859 . « 10 lOd'8. 1859 f^ 600 Jan. 98 PW4 1859 Feb. 7 sod's. 1859 A 600 1859 I " 14 eod'ai 1859 H 1600 55 QUESTIONS FOR REVIEW. QUESTIONS FOR REVIEW, — SET II In the previous questions under this head, we have referred, by number, to the written answers in th« preceding remarks. We shall hereafter secure to the student the advantage of framing his own answers, aiming, however, to ask no questions upon which instructions have not been previously given. 1. Where are the Resources and Liabilities shown at the commencement of Set II, obtained? 2. Can Qaici and Losses be shown at the commencement of business ? 8. Why not ? 4, What has become of the gain shown to have been realized in the month of January ? 6. How does the interest of the proprietor at the commencement of Set II. vary from his interest at the commencement of Set I. ? 6. What has effected this difiference ? Y. When is it proper to increase the credit side of Stock account ? 8. When the debit side ? 9, Is the term " Sundries" used as a Ledger account? 10. For what purpose is it used? 11. How will its convenience be most apparent? 12. How many kinds of Journal entries are there, and what are they? 13. What is meant by the term "Mortgage Payable?" 14. What is the difference in effect between a Mortgage Payable and a Bill Payable? 15. Is there any difference ? 16. How may Ledger accounts are opened in Set IL ? 17. How many of them are canceled ? 18. Which of these Ledger accounts exhibit Resources ? 19. Which Liabilities ? 20. Which Gains ? 21. Which Losses ? 22. What is the distinction^ between the accounts of " Union Bank," and " Union Bank Stock ?" 23. What will be the first step in ascertaining the gain or loss in Merchandise account ? 24. K the fiet cost of merchandise exceeds the value of merchandise unsold, will the account show a gain or a loss? 25. Why do you carry the value of merchandise unsold to the credit of the Merchandise account ? 26. Why make the entry in red inV ' 27. Can you give a rule for the use of red ink entries in the Ledger ? 28. In transferring a red ink entry to another account why do you always carry the amount to the opposite side of the new account ? 29. What Ledger account in Set II. corresponds with Stock account in Set I. ? 80. What does H. B. Bryant's account represent, as it stands on the Ledger ? 81, How much does it fail to show his interest in the business on the 28th February ? 82. Where will you get the amounts which will make up the difference ? 83. Is it necessary that a " Loss an^ Gain " account should be opened ? 84. If not opened, to what account would it be proper to carry the losses and gains at the close of business ? 35. What advantages are gained by opening a " Loss and Gain " account ? 86. Is it necessary to open a Balance account ? 87. If a Balance account is not opened, how can the resources and liabilities be represented on the Ledger ? 38. Is it customary in business to open a Balance account? 89. What is the tluory of the "General Statement" as given in Set II. ? 40. What are the auxiliary books given in connection with this set ? 41. For what purpose is the Cash Book used ? 42, How ofton is the Cash Book closed ? 43. With what must the difference in the sides agree ? 44. What is the advantage of the daily test ? 46. For what purpose is the Bill Book used ? 46. What is the particular convenience of the Bill Book ?* 47. With what account in the Ledger will the uncanceled notes in the Bill Book Receivable agree ? 48. In the BiU Book Payable ? * The Bill Books in common ase have the records of Bills Payable In one part, and Bills Receivable in the other, convenely arranged, so that each seems to be at the commencemeDt of the book. It Is usual to put the last day of grace in the " \Vlien dnt" colomii, although some insist upon including the day upon which the note Is written to fall dae. When both dates are ipecifled. It b done in the farm of a fractl>n, slsllir to the example shown, 5« SET III. DAY-BOOK, JOURNAL, COMMISSION SALES BOOK, ACCOUNTS SA1.ES> [^Cmitinimtioii of Set 7/.] BUSINESS ADVERSE. DAY-BOOK— SET III. NEW YORK, MARCH 1, 1859. The following Resources and Liabilities are from H. B. Bryant's Ledger B. The business to be continued under his name. I Resources. 00 00 00 75 50 Merchandise as per Inventory 2118 Union Bank Stock, real value 3100 Real Estate, estimated at . 12000 Casii on hand 6290 Bills Receivable, notes on hand 757 S. S. Packard owes on ^ 52 00 John W. Gantz do 375 00 Union Bank, amount on deposit 1000 00 Liabilities* Bills Payable, outstanding notes 3335 00 J. D. Comstock, balance due him 96 00 Ivison & Phiuney " " them 112 50 Dawson, Warren & Hyde, balance due them 62 50 Mortgage Paj'able 9000 00 25693 Shipped per Peoples' Line, and consigned to Sheldon <& Co., Albany, to be sold on our ^ and risk, 140 yds. English Broadcloth . . . @ |3 50 . . 490 00 200 do Domestic Cassimere . . . @ 1 25 . . 250 00—740 00 Paid drayage on same in cash ... 1 00 : 2 zzm Sold James Monroe, for cash, 2 doz. Soft Hats, @ $26 .... . . , Received per N. Y. and E. R. R., from J. R. Wheeler & Co., Buffalo, to be sold on their 9^ and risk, 500 bbls Flour, invoiced @ $8 00 5000 bush. Wheat @ $1 25 Paid transportation charges, in cash ^ Sold S. R. Gray, Albany, 50 Sets Spencerian Writing Books @ 88c. 44 00 i 15 Reams Foolscap Paper @ $3 70 55 50 38 Gold Pens @ $1 50 57 00. Received in Payment Ivison & Phinney's Draft on us for $112 50 Cash for balance 44 00—156 50 Received Cash for rent of offices in second story 35 12606 741 52 100 156 Ml _ 500' 398481 75 • We have varied this statement from the former, for the purpose of illustrating tho different methods of open- ing books. The Liabilities here enumerated are simply those amounts owing outside the concern. The amount swing to tbe proprietor is, of course, the difference between the sum of these outside liabilities and the sum of all the resources, and, instead of being shown in one amount, as in Set II., will be indicated by the difference between the debit and credit of the Stock, or H. B. Bryant's account. 58 DAY-BOOK— SET III. NEW YORK, MARCH 4, 1859. Amount brought Forward - 4 Paid J. D. Comstock Cash, in full of % 5 Sold Wm. II. Crocker, on his note @ sixty days, 500 bbls. Flour, (J. R. W. & Co.'s Consignment) @ $9 Received per Steamer New World, from M. B. Scott, Cleveland, to be sold on his % and risk, 800 bush. Corn, invoiced @ 75c. 2000 do Oats, " @ 60c 500 do Wheat, " @ $1 38 Paid Freight and Insurance, in cash 6 39848 9o 4500 Sold J. C. Bryant, for cash, 5000 bush. Wheat, (J. R. W. & Co.'s consignment) @ $1 50 175 7500 Closed J. R. Wheeler & Co.'s Consignment, and rendered them an A" n. B. J3RYAKT'S BOOKS CLOSED. From the foregoing statement the student will be enabled to close up this Ledger with certaint/, and to produce the results in his Balance account which are exhibited under the head of Resources and Liabilities there shown. The only difference between this and the pre- ceding sets is, that the business has been a losing instead of a prosperous one, and that, conse- quently, the net resources of the concern are diminished. Mr. Bryant now proposes to change his business, and to take in a partner, Mr. H. D Stratton, who is to furnish an equal amount of capital. The new concern will commence with A cash capital and with no liabilities. A new set of books will be opened. Tliis will leava Mr Bryant to close up his old business in his own bocks. The Memoranda below are for that purpose, and the student is required to write up th transactions given, and produce a Balance Sheet of the result before commencing the next set. In closing up the business of II. B. Bryant, as per memoranda, it will not, of course, be necessary to open a new Ledger, nor even new accounts in the old Ledger; particularly, if there be sufficient space under the old accounts for the few necessary entries. The opening entries below, enumerating resources and liabilities are supposed to be taken from the last Balance account. The same purpose would be effected by bringing the balances down under their proper accounts, instead of transferring them to the Balance account. This method is shown at length in the succeeding set. Memoranda— H. B. Bryant's Books Continued. April L The following is a statement of the Resources and Liabilities of II. B. Bryant's private books, as taken from the Balance account of his Ledger : Resources.— Mdse on hand, $37.50 ; Real Estate, 112000 ; Cash, $11337.05; Bills Re- c^'.ivable, $4500; Union Bank, $1000; E. R. Felton's indebtedness, $4000. Liabilities. — Bills Payable outstanding, $11575; Mortgage Payable, $9000; Interest flue on same, $84; Bryant's net investment, $12216.15. 1. Invested in the concern of Bryant and Stratton, Cash, $10000,* 2. Received Cash of E. R. Felton, in full of %, $4000. 3. Sold Bryant & Stratton Store and Fixtures for $12500. Transferred Mortgage for $9000; Interest due on same, $84; received Cash for balance, $3416. 3. Paid our acceptance favor of J. R. Wheeler & Co., $11575. Gave in payment W. H. Crocker's Note, due May 7, $4500, less discount off 34 days, $29.75 ; Cash for balance $7104.75.1 10. Sold James Atwater, Lockport, for Cash, 50 sets Spencerian Writing Books, @ 80 cents, $40, 15. Deposited in Union Bank, Cash, $1688.90. 30. Drew from Union Bonk, and invested in Bryant & Stratton's concern, $2688.90. • The account with Bryant A Stratton should be treated In H. B. Bryant's books the same as any personal ao Knnt Mr. Bryant has, in reality, lent this money to Bryant & Stratton. He, therefore, should debit them and :redit cash. See corresponding entry on Bryant & Stratton's Books, Set IV. + The note which we hold against W. H. Crocker is really worth its face, less the interest for the time it has yet to run, and will be received only for its real value, 14470.25. In this transaction, therefore, we pay for our note, 111575, and for the discount on W. H. Crocker's note, js2it.75. Our entry, then, is,— i>«W<* ; Bills Payable, |11576; Interest, $id.7^—0redUg : Bills Receivable, $4500; Cash, $7104.75. COMMISSIOJN' BUSINESS, Trial Balance. A/VvW^0rvO0S« FboHngt. Footings. "■■ 90 75 37 12000 18793 4500 2688 11575 9000 4000 12688 29 50 65 90 90 75 70~ H. B. Bryant . . . Merchandise . . Real Estate . 12216 40 12500 18703 4500 2688 11575 1 9000 4000 15 65 90 12216 ll5 2 150 500 Gish 12688 29 Bills Receivable . Union Bank . . Bills Payable . . Mortgage Payable . E. R. Felton . . Bryant & Stratton . Interest .... 12718 65 75313 , — ., 75313 70 12718 Ob 1 1 Balance Account. Resources. Bryant & Stratton . . ' "; Liabilities. 12688 90 H. B. Bryant . . !j 12688 90 The above Balance account shows the final result of the three months' business of H. B. Bryant, embraced in the foregoing three Sets, and most clearly demonstrates the fundamental principle for which we have contended. It will be apparent that this result could as well, and much more easily, have been shown without closing the Ledger at the end of each month , but the student, if he has faithfully followed his instructions, will not find it necessary to in- quire why this was not done. We might have presented a greater variety of transactions had we chosen a different kind of business for each Set ; but that would have deprived us of one of our chief objects — that of exhibithig the method of opening a new set of Books from the Balance account of an old Ledger, and the continuation of the same business from one set to another. Having, as we think, faithfully accomplished this part of our design, we shall seek new attractions and illustrations in other channels. COMMISSION BUSINESS. SALES BOOK AND ACCOUNTS SALES. On the three following pages we give a few brief examples of the special forms necessary ic a Commission business. They are not submitted as models, but as forms most commonly m use. The Commission Sales Book on pages 72 and 73 contains all the particulars connect- sd with the three consignments which comprise a large share of our business in Set III., and the Accounts Sales on the opposite page are simply abstracts of those special sales, such as the com mission merchant sends to his principal upon the " closing cut'* of a consignment. We have varied the form in these Accounts Sales, that the student may become familiar with the differeni jaethods of expressing the same result, in use among business men. 70 ACCOUKTS SALES, — SET III. Account Sales of j 6oo2 bu^ wZii. [ on % and risk of J. R. Wheeler & Co. Mar. ' 5 I Sold Wm. II. Crocker, on his Note @ sixty days, 500 bbls Flour, @ $9 4500 00 || Sold J. C. Bryant, for Cash, 'i 5000 bush. Wheat, @ $1.50 7500 00 ii ______ Charges. 12000 [I Paid Freight, in Cash 100 00 ' I Storage and Advertising 25 00 Commission, 2^ % on $12000 300 00 J. R. W. & Co.'s net proceeds Due by Equation, March 30. E. K. N»w York, March 6, 1859. H. B. BRYANT, per Packard. 425 11575 1869 Mar. M. B. Scott — In Account Sales -with H. B. Bryajit. To Cash paid Freight and Ins. " Storage and Advertising . " Commission 2i % on $2890. " M. B. Scott's net proceeds Remitted herewith. ILK. Nbw Tohk, March 9, 1859. 1859 175 Mar. 7 40 72 25 9 2602 75 asw = , ! By 800 bush. Corn, @ 80 a . , . Taken to our account. By Cash, Sold C. Claghorn, 2000 bush. Oats @ 75 c. $1500 ■■ 600 bush. Wheat @ |1 50 750 , H. B. BRYANT, per Packard. 8260 ilv Sales of jf^So^'So.- IS^rfiui'"*"' "ir'l for % of C. S. Dole 8l Co. By H. B. BRYAI^'l E. R. Felton, @ thirty days Cash Cash Charges. Paid Freight in Cash Storage and Advertising . . . , . Commission on Sales, 2* % on |1275C . Net proceeds to Ci as cash, Marco 29 S. * 0. K. Barrels Barrdt 'Jik. Sup. I Huper. Fkur. 1 Fiouir. 600 600 600 600 H. B. BRYANT, per Pajdeard. '71 @t8 00 @ 9 00 @ 8 60 800 60 818 76 4000 4600 4aM T3fB0" M8 18081 AUXILIARY BOOKS, O ommission This Book is used for the convenience of the Commission Merchant, that he may be able k) see, at a glance, the condition of each Consignment. / 1S59/ # // J. R. Wheeler & Co.'s ifar.i 600 6000! Per iV. F. (& E. B. R. To Cash, Paid Trampfn Charges ' 100' Storage & Advertisino, 26 Commission, 2^^ on $12000. . . ,800 I ' J. R. Wheeler & Co., Net Proceeds , . . 60d 60001 Dtte by liquation Mar. 80^ 2859 ^^ ^^ ^^ M. B. Scott's T Mar. 4 800 2000 600 Per Steamer New World. To Cash, Paid Freight aitd Ins. ,\ 111 Storage & Advertising, Commission, 2i % on .... Cash, Net Proceeds remitted 4<> 12 26 287 ao , 260^ 78 aOOp 600 28M C. S. Sole &. Co.'f Kar. 1% 80^ 1000 8000 Per People's Line. ! To Cash, Paid Freight . . , %\ Storage & Advertising, Commission, On $12760 @2\ % C. S. Dole & Co., N'et Proceeds . . Due by Equation Mar. 2i| 800 1000 800() 800 60 8li 71 669 70 12081 26 1276(1 * The metkod of tquating time is fdlly explained in that portion of the work devoted to " Commerci«l CaicaU- Mobs.* 72 SET III. Sales BooJs. It wil^ be seen that the entries on this Book correspond with those on the Day Book, and its use in this connection will, it is hoped, give the student a better understanding of th< nature of Commission transactions. 1859 ^^ ^ Consignment. Mar. 6 By Bills Receivablb, Sold W. H. Crocker on kU Note @ 60 dayi. 5(K @ |9 00 .... 4500 " « By Cash, Bold J. a Bryant, 6000 @ $1 60 .... 7600 1 120W 6(K 6000 ■ 1200Q ' / ^ / ■ / 1859/ -(f i^ ^ Consignment. Mar. n 800 " 9 2000 600 800 2000 600| By SHn»*T. TO N.H., Assumed and Ship'd Cobb A Oo, @ 80 eta. . . . By Cash, -8°^ C. Claghom, @16 cts. . . . . @ 11 60 . . . 1600 760 '# * / € J 1859/ i/ ^/ // Consignment. It- — , (for. 13 600 By E. R. Felton, " 20 600 Cash, • n Cash, 600 8000 8000 Uffold. 500 1000 640 2280 tSM Sold him @ 80 days, @ $8 00 . . . . 4000 Sold Jno. R. Penn, @ |9 00 . . . .1 4600 Sold J. H. Goldsmith, @ $8 60 . . . . . 4260 ISfSO WK 78 EXERCISES FOR THE LEARNER —THIRD SERIES. EXERCISES FOR THE LEARNER. THIRD SERIES. Memoranda. March 1st, Commenced business with the Resources and Liabilities as shown in the Balanc* account of Ledger B.* 2d, Sold L. S, Bliss, for cash, 25 pieces Merrimac Prints, @ $5,75. 3d, Received from Joseph Gary, Albany, to be sold on his % and risk, 200 bbls. Flour, invoiced at $8 ; 10,000 lbs. canvassed Hams, invoiced at 11 c. Paid freight on same, in cash, $100. 4th, Shipped N. C. Winslow, Cleveland, to be sold on our % and risk, 200 sacks CofFee, 13,000 lbs @ 9 c. ; 6 pipes Wine, 720 gals., @ ^3.50 ; paid cash for Insurance on same, $50. 5th, Sole* W. H. Hollister, on his note at 60 days, 200 bbls. Flour, (Cary's Consignment,) @ $9. Re ceived cash in full of John Brown's acceptance, dated Feb. 20, at 10 days, $100. 7th, Ship ped per steamer Isaac Newton, and consigned to J. G. Deshler & Co., Bufialo, to be sold oxt our % and risk, 102 boxes Sugar, each 500 lbs. @ 5 c, which we purchased of Samuel Jones, giving in full payment therefor his note of Feb. 8, for $2550. 9th, Sold John J. Cape, at 10 days on %, 10,000 lbs. canvassed Hams, (Cary's Consignment,) @ 11 c. 12th, Closed Cary's Consignment, and rendered him an Account Sales of the same. Our charges for storage and advertising, $25 ; commission '2,\ % on $2,900, $72.50. Joseph Cary's net proceeds, $2702.50. Due by equation April 23. 14th, Received of L. S. Paine, Tonawanda, to be sold on his % and risk, 2000 bush. Corn, invoiced at 80 c. ; 1000 bush. Wheat, invoiced at $1.75 ; paid freight in cash, $150. 15th, Sold Stephen A. Douglas, for cash, 1,000 bush. Wheat, (Paine'*' Consignment,) @ $1.90 ; Sold Horace Greeley, for cash, 2,000 bush. Corn (Paine's Consignment ^ @ 90 c. IGth, Closed Paine's Consignment, and rendered him Account Sales. Our charges for storage, etc., amount to $15. Our commission, @ 2| % on $3700, $92.50. L. S. Paine's net proceeds remitted in cash. 20th, Received advice from N. C. Winslow, Cleveland, of the sales Df Coffee and Wine shipped him on the 4th inst. Our net proceeds of the same amount to onlj" $2500, which he has remitted us in cash. 21st, J. H. Bell pays us cash to balance %^ $37.50 22d, Paid J ames Buchanan's draft on us for $2520, in cash. 25th, Received advice from J. G. Deshler, Buffalo, of the sales of the sugar sent him on the 7th inst., our net proceeds of which are $2700, and for which he has remitted us his note @ 10 days from March 17th. Re. reived cash of John J. Cape, in full of his indebtedness. 26th, Closed our % with Joseph !3ary, due by equation, April 23 ; amount due him $2702.50 ; discount off, in our favor $14.70. Paid him W. H. HoUister's note, due May 7th, for $1800, less discount for 42 days. Cash for balance, $902.50.f 30th, Paid clerk hire and rent in cash, $175. Received cash ic full for J. G. Deshler's note of the 17th, due this day. * Second Series. \ In cases cf this kind, where a debit of int'^rest -nay offset a credit of the same amount, it may be optioniJ with the accountant whether or not he make any entry to the Interest account. It it be desirable to show the ictaJ amount received, and faul for interest, it will be necessary to enter all the debits and credits of the account, vrhcthei they cancel or not. 74 EXERCISES FOR THE LEARNER. Trial Balance. Total Footings. IbtalFoolings. BaJamem. . . Stock 7419 66 7419 66 3815 , .» Merchandise . . . . 3833 75 18 •"5 7150 . Bills Receivable . . . 7150 fi378 41 13718 37 41 50 . Cash . J. II 7340 37 50 . Bell 2520 . J. Buchanan 2520 2900 . Cary's Consignment . . 2900 1240 3740 2550 1100 . Shipment to Cleveland . . Shipment to Buffalo . . . John J . Cape . . . . ; 2500 2700 1100 150 . . Storage and Advertising . ] 40 40 . . Commission ' I 165 165 ' 2702 50 . . Joseph Gary 1 2702 50 3700 . . L. S. Paine's Consignment 3700 14 70 . . Interest 14 70 175 175 . . Expense T793 41 44123 11 44123 11 7793 4i Balance Account. Jieiourcet. Liabilities, Cash ... 6378 41 Stock 6878 41 TO THE STUDENT. It is presumed that you have, so far, followed out the design of the work in its practica. and progressive development of the principles of Accounts, omitting nothing which has been prescribed, because you could not, for the moment, appreciate all its benefits. If you have pursued this policy, you cannot, at this stage, fail to see the advantages derived from these series of " Exercises for the Learner." Our object in instituting this feature was to shield you from the temptation of passing over the work without the trouble of thinking. We know the strength of such temptations, and we know, also, the utter fruitlessness of the issue, when they prevail. We have, so far, confined our record of transactions to the old Italian method of historical Day Book, with Journal separate. We did so on account of its greater simplicity, and because we did not wish to distract the mind from more important considerations which it was neces- sary to enforce. As you are now more thoroughly grounded in the great truths of the science, we shall henceforth give a little attention to the n ore practical forms in use, and to a gi eater scope and variety of entries than heretofore. We wish you particularly to note the peculiar form of the Journal Day Book introduced in the following Set, that you may be able to ex- press, in this manner, any conceivable transaction, combining all the essential points of the separate Day Book and Journal. Very few business houses adopt the old method of first entering transactions in a historical Day Book, and journalizing therefrom. Where more severely practica. forms — for the purposes of condensation — are not in use, the Journal Day Book meets with great favor, as being both plain and practical. 75 QUESTIONS FOR REVIEW. QUESTIONS FOR RE V I E W, — S E T 1 1 1 1. In what j/articular does the statement on opening the books in this set diflfer from previous statements , I. "What liabilities can thnre be to a business except to outside parties ? 8. How can you ascertain what the concern owes to the proprietors or stockholders? 4. Is this amount always apparent? 6. Why not? 6 What does the account " Shipment to Albany " represent ? 7. In what particular does it differ fronr Merchandise account ? 8. What is represented by the account " J. R. Wheeler any sales with Logan, Wilson Ji Co., and rendered them an account of the same. To Storage & Adver " Commission Our charges @ 2J ^ on $4700 .... " Logan & Wilson Their i net gain, •* Loss AND Gain Out « " NiLKS 6l Knm 5 To Bills Patablk 2 " Cash Dr. To Sundries Shipped them to be Bold on our joint %, each ^, 20 hhds. Sugar, 24,000 lbs. @ 6 c. 1200 100 bags Cotlee, 14,000 lbs. @ 10 & 1400 100 boxes Raisins, 0! $3 ... . 800 Bo't of Acker, Merrall & Co., on our note at ninety days. For above nolo, Paid insurance ^ % on $3000 .... 8 Charles Stetson Dr. To Mdse. Co. B. Sold him @ thirty days, 600 bbls. Flour, @ |9, Mdse. Co. B. To Storage & Adver. *' Commission " NiLES & KiNNB " Loss AND Gain SUNDRIXS Cash Bills Keceiyablx Dr. To Sundries Closed sales in company with Niles A Eonne, of ButFa'.o, and rendered them an Ac- count tiolea. Our charges ......... 2^ fo on ^4500 Their ^ net gain Our " " 9 Dr. To MERcnANDisK, Sold Austin Packard, 30,000 lbs. Bacon, @ 6 c. Received His note @ thirty days, for balance . . 81 800 2915 10 117 330 336 50 25 25 4500 500 2900 15 4500 800 1000 59590 20 112 183 183 1800 59590 50 75 7f JOURNAL DAY BOOK— SET IV. NEW YORK, APRIL 9, 1859. Amounts brought forward 9 LooAN, Wilson & Co. Dr. . . . To Bills Payablk . . Accepted their draft on us @ thirty days sight, favor Geo. K, Chase & Co. in full of their %. Mdse. Co. C. To PtiNT Moore « S. G. Payn " Cash Dr. To Sltjdries .... Received per Mercliants' Line, from Pliny Moore, Troy, to be sold on joint % of himself, S. G. Payn, Albany, and our- selves, each i, as per contract, 1000 bbls. Flour, @ $8 50 . . $8600 For his and our J above invoice . . . {I 1 « « y ... Paid Freight 12 59590 4136 2a 8700 Steamer Empire Stock Dr. To Sundries Bo't of Daniel Drew, ^ Steamer Empire, for | IQOOO To Cash " Bills Payable Paid in hand . Gave our note 13 — ninety days, for Sundries Bills Receivablb Cash Dr. To Mdse. Co. C. Sold Watren P. Spencer, Buffalo, 1000 bbls Flour, @ 810 . . His note @ forty days, for . For Balance Mdse Co. C. To Storage & Adver. " Commission " Pliny Moore « S. G. Payn " Loss AND Gain 2 Cash 3 Merchandisb To Cash ' Acker, Mer. & Co. Dr. To Sundries .... Closed sales in company with Moore & Payn, and rendered them each an Account of the same. Our charges 2| fc on $10000 His i net gain Oar " " 15 Dr To Merchandise, Sold J. "W. Lusk, Cleveland, 6 casks Brandy, 800 gals., @ $3 . . IG Dr. To Sundries, Bo't of Acker, Merrall A Co. 80 hhds. Sugar, 30,000 lbs., @ 6 c. Paid in hand Balance on % 7000 3000 1300 59590 4136 1 15 6666 '61 2833 33 200 5000 5000 10000 900 1800 96426 30 250 340 340 340 900 two 1000 25 96426 1 2& 82 JOURNAL DAY BOOK —SET iV. NEW YORK, APRIL 18, 1859. Amounts brought forward 18 ^ «j Sundries Dr. To Cash 8 Expense Paid Clerk hire to 16th 7 ' H. D. Stratton, Priv. Paid Mm on % . . . 20 Sundries Cash Interest Dr. To Bills Receivable . Anstin Packard has discounted his note in our favor, due May 12th. Proceeds of note Discount ofif, 22 days 96426 50 150 25 NiLES & KiNNS Dr. To Loss and Gain . . Received an Account Sales of the Mdse. sent them to be sold on joint account, on the 7th inst. Our ^ net gain as above. 22 Sundries Dr. To Sundries Shipped S. G. Payn, Albany, to be sold od joint % of S. G. Puyn, Pliny Moore of Troy, and ourselves, each \. 80 hhds. Sugar, 30,000 Iba. @ 6^ c. $1950 Freight on same 60 S. G. Paxn Pliny Moore To Merchandise " Cash For his and our } above invoice For his J^ , As above Paid Freight $2000 995 73 4 27 SOD 25 H. B. Bbtanv, Private Dr To East River Bank . Drew on private %. NiLIS urter. 28 Cash Dr. To Store and Fixtures Received rent for upper apartments, to date. 1333 606 200 968 1500 96426 2A 200 1000 800 75 1950 50 200 968 ni 1500 4- 102595 102595 83 JOURNAL BAY BOOK— SET IV. NEW YOKK, APRIL 28, 1859. A.mounts brought forward 28 Steamer E^mpirr EXPEKSB Lobs akd Gaiv Caib Dr. To Steamer Empire Stock For our share of earnings of last trip, as per statement rendered this day. 29 Di To Cash Snndry expenses to date, as per Expense Book. 30 Dr. To S. G. Payn . . . For our J net loss on shipment of Sugar for joint % of Payn, Moore and ourselves, of the 22d i&st., as per Account Sales this day received. Dr. Toll. B. Brtakt . Amoont invested this day. 102595 250 159 115 2688 105807 90 90 102595 250 159 115 2685 105807 90 90 NE\V YORK, MAY 1, 1859. 7 I Mdsk Co. D Dr. To Sundries .... Received from Wm. K Sadler, Philadelphia, to be sold on our joint % each ^, 100 bbls. Cider Vinegar, @ $7 $ 700 60 do. Linseed Oil, @ $40 . 2000 40 h'f kegs White L&id, @ |S 120 To Wm. K. Sadler. For our ^ above invoice " East Rr"^B Bank Paid freight per check . £ast I^vxb Bajstb. Dr. Deposited. To Cash 84 $2820 1460 8500 9960 1410 50 8500 9960 JOURNAL DAT BOOK —SET IV. NEW YOHK, MAY Q, 1859. Amounts brought forward T 1 S 2 2 7 Sundries R. W. HOADLKT Shipment in Co. 1 To Merchandise " Cash Dr. To Sundries Shipped R. W. Ilaaclley, Philadelphia, to be sold on joint %, each ^, 200 bbls. Mess Pork, @ $9 Drayage charges .... $1800 18 fTFTB For his i above inyoice . " our i . . . , As above ..... Paid drayage ... 3 Cash Dr. To ]\f DSE. Co. D. . . Sold J. R. Bigelow, 100 bbls. Cider Vinegar, @ $7 60, Inburancs, Dr. To Cash Effected insurance for $5000 on any property that may be in our warehouse. Hakna, Beaser &. Co. Dr. To Mdse. Co. D. Shipped them to Detroit, as per their order, 60 bbls. Linseed Oil, @ $45 . . 2260 40 h'f kegs White Lead, (g |3 . 120 Payable @ sixty days. ~ Mdse. Co. D. To Charges *' Commission '• Wm. K. Sadler. " Loss &i Gain, Dr. To Sundries .... Closed sales in company with "Wm, K Sadler, and rendered him an Account Sales. Storage, Advertising and Insurance . 2i % on $3120 For his ^ Invoice $1410, and net gain $61 " our i net gain 5 W9«0 9960 909 909 750 37 2370 1660 50 1800 18 750 37 50 Exfensk Dr. To East River Bank . . Paid advertising bills of New York Ilerald per check. 6 Mdbk Co. £. Dr. To Sundries Received of F. A. Boyle & Co., New Orleans, to be sold on joint % of themselves, Camp, j bell A Strong, and ourselves, each J. I 100 hhds. Sugar @ $60 ... $6000 ^ I To F. A. BoTLB & Co. For our i invoice 2 " East River Bank Paid freight per check 85 150 2500 19245 2^0 50 78 1471 61 150 50 2000 500 19245 50 JOURI^AL DAY BOOK— SET lY. NEW YORK, MAY 6, 1859. Amounts brought forward 19245 50 19245 5( Mdsb Co. F. Dr. To Sundries Received from H. D. Van Syckel, St. Louia, to be sold on our joint % , each \, 600 bbla. Pork, @ $9 . . . . |4500 250 do Lard, 50,000 lbs., @ 6 a . 2500 17000 To II. D. Van Stckel Our ^ above invoice . . " Eabt River Bank Freight per chock ........ . 8 Sundries Dr. To Mdse. Co. E. Sold "Wm. A. IloUey, Fort Edward, 100 hhds. Sugar, @ $75 .... , . Bills Receivable Received in payment, Erastus Corning s note, dated January 1, 1859, due one day after date, Interest Due to date on above note Cash, For balance // Mdse. Co. E. Dr. To Sundries Closed Mdse. Co. E., and rendered Account Sales of the same to F. A, Boyle and Campbell 8 Amounts brought forward 23 East River Bank Dr. . . . , To Cash R. W. HOADLKY Deposited. 25 Dr. Wm. K. Sadler To Shipment in Co. 1 Received an Accoiint Sales of 200 bbls. Mess Pork, shipped him on the 2d inst. Our net proceeds aa above. 2C Dr To Bills Payable . . Accepted his draft on us @ thirty days sight, favor of B. McGann, for amount his due. 27 BiLLB Payable Dr. Cash To Cash Paid our acceptance favor of Hope ( 80 Acker, Merrall M €md Oain To Mdse. Co. E. Eiigt River Bank Hanna, B. Kinne. 1889 Apr. « u 6 20 86 To Sundries Loss and Gain East River Bank 8 4 4 1 2916 800 968 76 1869 Apr. « 1 4 8 By Mdse. Co. Oo. Cr. 869 Way IS To Bills Payable 8900 1869 Apr. By Mdse. 8900 EJr. Is/ldse. Oo . ^. €v. 1869 Apr. 4 6 To Sundries « 2 2 8900 800 1869 Apr. 6 By Cash Bills Receivable 1 2 1400 8300 4700 4700 CDr. Loga ,11. , VT'ilson Oo. (dr. 1869 Apr, 9 To Bills Payable 1 8 41S6 26 1869 Apr. 4 6 By Mdse. Co. A. I 8800 836 26 4186 26 4186 26 94 iSh[ LEDGER,— SET IV 3S^d.se. Co. B. Bv ]869 Apr. u V m 18 ^i-i -- -.- M 1 8 ,=n:.- --= IDr Bills r^euyalDle. «r 1 069 4 8 To Miles Oo. Cr. 1859 22 80 To Sundries BtUattct To Balanco 4 l6 1 666 6840 t 66 01 1869 Apr. >< 10 14 By Mdse. Co. C. By Balance 8 8 6666 840 «■} 6006 61 6006 6840 67 Maif 81 6840 oT May T 0' €t. 1869 Afrr. 22 80 To Sundries Btilanot To Balance 4 l6 J6 1888 1S54 84 1869 Apr. u 10 14 80 1 By Mdse. Co. C. Oo. Cr. 1869 Maj, M 4 16 To Mdse. Co, D. Loss and Gain 8 2870 275 1859 May 16 By Sundries ' 1 8 8645 8646 S646 87 LEDGER —SET IV, Hhr. Olieirges. art 1869 Mau i 81 To Loss and Gain 11 .... 150 1869 May u 4 8 18 By Mdse. Co. D Mdse. Co. E. Mdse. Co. F. 6 7 8 50 60 60 A=a 160 160 . 1 1 ... CBr. Ivlcise. Oo. E. (tv. 1869 6 8 To Sundriee « 6 1 2500 5000 1859 May 8 By Sundries 7 1 7600 r 7600 toOO \ ^X. F. Ji^, Boyle Co. €r. 1869 May 81 To Balance 11 4264 16 1859 3fay 6 8 By Mdse. Co. E. 6 7 2000 2254 16 4264 16 %iM If \ dr. ]Md.se Co ^ F. €x. 1869 May 7 18 To Snndriea 7 8 1 4000 2750 1869 May 16 18 By Cash « 8 8 4760 2000 6760 J 30 HJr. H. ID. Van Syolsiel. OTr 1869 May 17 To Cash 8 6616 62 1869 May 7 18 By Mdse. Co. F. i< « « 7 8 8600 3015 6i( 6516 63 6515 63 i mr. Oampbell East River Bank 10 21337 50 " Bills Payable 10 10781 M Interest Receivable 10 146 82 " Pliny Moore 11 6340 01 H « Bills Receivable 10 5000 " S. G. Paj-n 11 1954 99 « •• Steamer Empire Stk. U 10000 " F. A. Boyle 11 4254 Id « < Steamer Empire 11 250 - » Campbell & Strong 11 2254 IV H . 33971 12 21337 341 50 31331 25 . . East River Bank . 9993 75 60 341 60 . . Interest .... 150 150 . . Expense .... ' • 1 ! 484 37 . Loss and Gain . . . . 1 590 17 105; 80 6000 15300 . . Bills Receivable . . Commission . . . 103001 ! 434 25 1 434 25 8036 25 . . Bills Payable . . 18817 25! 10781 ! . . Pliny Moore 5340 01 i 5340 01 250 250 . . Steamer Empire . . 1709 1709 . . R. W. Iloadley . . 109 909 . . Shipment in Co. 1 . . 800 37 50 37 50 . . Insurance .... . , Charges 150 150 . . F. A. Boyle .... 4254 16 4254 16 V . . Campbell & Strong . • 2254 17 2254 17 . . S. G. Payn . . . 1954 99 1954 99 10000 10000 . , Steamer Empire Stock . 56009 ss.r; 1— 69 124445 18 124445 18 56009 1 69 V— 1 1 1 1 %-~^ INVENTORY. Resources and Ijiabilities not shovg^ in Ledger Accounts. Store and Fixtures, valued at Ij 15000 Steamer Empire Stock i| 10000 Interest due us on Notes $146.82 ) ' ,„j. Less, interest due from us 18.37 j i, |45 • The ftmontits in this column do not comprise, -ike those in the preceding balances, the footings ot at tO« Ledger accounts, but such only as do not balance or cancel. The footings of this column and its opposite will not, Iherefore. taLy with the footings of the Journal, as has been the case with the Trial Balances heretofore. Tha nethod here ado] ted is the on 3 most in use with accountants, but does not afford so sure a test of the correctness nl ihe Ledger. 100 BALANCE SHEF'^IS BALANCE SHEETS. "Wk give on the following pages two of the most condensed and perfect forms of stat imenl Known, the fix's;, representing the business of a single proprietor, as exhibited in Set I, and the second showing the result of the partnership business of Set IV. The symmetry of these Balance Sheets will commend them to the favor of all systematic accoimtauts, while the fulkess of their illustrations must satisfy all interested parties. This form of statement has beei used, with more or less variation, for the last twenty years, but has never been adopted lo any great extent by business houses ; the chief objection being its inadequency to conta a long lists of personal accounts. This objection can be overcome, in all cases where the general result alone is wanted, by using, instead of the persons' names, the general titles, — " Accounts Receivable," and " Accounts Payable." In most kinds of business this will reduce the number of accounts within the limits of this form. A degree of ingenuity, and some patience, are necessary in preparing these Balance Sheets ; but a little practice will overcome all such obstacles. The following brief explana- tion will enable the student to prepare this form. Get a sheet of paper of the proper size, and for a border rule double red lines around tb« margin.* First, rule the parallel head-lines, leaving proper space for the double captions, as in the example. Next, ascertain the number of Ledger accounts to be represented. This will, of course, embrace all the accounts in the Trial Balance that do not cancel. If the business is th!4t of a single proprietor, usually called " Stock business," rule, in pencil, as many lines as will contain all the accounts, and^ve additional. If it be a partnership business, with two or more partners, rule three additional lines for each partner. Thus : for " Stock" business five lines more than all the accounts ; for two partners, eight lines more than all the accounts ; for three partners, eleven lines more, and so on. Next, lay off proper spaces for debit and credit money columns ; first, for the footings of Ledger accounts, second, for Gains and Losses, third, for Stock — or if partners, for each partner — and fourth, for Resources and Liabilities; also, for a single money column for Inventories, and for the Ledger titles and their Ledger folios. The position of these columns you will see in the example given. These spaces can best be appropriated by using a pair of dividers, and giving each of the captions its just proportion. After denoting the proper space for each heading — which can best be done with pencil — commence to rule in red ink at the right hand, and bring all the lines of the first two captions — Real Accounts and Stock, or one of the partners— down to the lower pencil line. For the other partner drop two lines. For Losses and Gains drop two lines for Stock business, and an additional line for each partner. Next, rule the foot-lines as shown, and the schedule will be ready to receive the accounts. The process of showing results is precisely similar in its order, and the results the same at in " closing the Ledger," and will need no explanation aside from the example given. As this form of statement, neatly done, will always challenge the admiration of a system- atic business man, no student should permit himself to pass over it without fastening all )*« peculiarities indelibly upon his mind ; and as no one qualification is more essential to the proper appearance of a Set of Books or a Business Statement than clean ruling, the student can hardly choose a better exercise than that of preparing these Balance Sheets. ♦ The border may be made either plain or ornamental, as best suits the taste of the accountant ; but we would recommend in this, as well as all business statements, the utmost neatness, and the avoidance of that kind of affecta- tion or display vulgarly known as " gingerbread work." 101 r 6 ^ I O 00 O 91 OS •O O^ t-l © eOr-l OOh-'^ US • © rH eO •* O «5 00 f-l • 6 L. Folio. .1 o S « . = = 5^ '^ H w m w o CO O H H Eh LFolU> •^r^»^i-i0«MC000^>OIO>O«O»-»-*-*»a000fl000*> s^ ti 5 ■— s 03 . . .. bt — o c .2^ •» E«^-: ■5£.a"s®PT3o iS 03 © •^_ t; xSow^w. ~ • 9 002 103 AUXILIARIES. AUXILIARIES TO SET IV'. Wb give herewith a few of the auxiliary books and documents tirhich would be propel in connection with the transactions of Set IV. We have already remarked that " the number and character of auxiliary books depend upon the nature and extent of the business, and the amount and kind of information desired ;" we might have added, and upon the taste and ingenuity of the accountant. Perhaps ihero is lo way in which a business man can more satisfactorily exhibit the lucidness of hia yvm thoughts than by such methodical arrangement of the separate facts embraced in his transactions as are afforded in auxiliary forms. The only objection that can properly be urged against a multiplicity of auxiliary books is the additional labor required ; and in large establishments even this objection is removed by the use of special books and forms containing characteristic portions of original entries ; thus, all transactions involving the receipt or dis- bursement of cash are entered alon j in the Cash Book, and posted from that book directly to die Ledger. In the same manner, all sales of merchandise are first entered and posted from the Sales Book, etc. This method we shall hereafter briefly illustrate. We have already given, in connection with the preceding Set, (III.), one form of a Com- mission Sales Book. It is the form commonly in use, and is happily suggestive of the nature of the business. In this connection we give a different form, discarding the special columns for quantities of merchandise. The business also differs, the sales in this case being on joint account of the commission merchant and the consignor, and the net proceeds, shown both in the Sales Book and the Account Sales are made to correspond therewith. We also give a brief exposition of the books containing our Bank Account, and the usual method of showing, perpetually, the balance on deposit. These books are too simple to need much explanation. The letters and notes are not submitted as absolute models in their way. It would, in fact, be as difficult to afford a model of a business letter — one, we mean, which it would be proper for every one to cop]/ — as it would for an artist to produce a cast of features that everybody would consider perfect. And that class of humane authors who aim to bless the world by doing all the thinking, as well as talking, for their generation, furnishing to hand " ready letter vfriters," apt " poetical quotations," and " rhyming dictionaries," should find little favor with >ersons competent to think for themselves. To be able to write a good business letter is no small accomplishment, nor can it be ao quired by studying models, although much aid may be secured in this way, pertaining to form, arrangement, and even style, if undertaken with no undue surrender of individuality ; for a good business letter should be neither more nor less than the transcript of a man's thoughts, or what \c would say were he to speak with care and deliberation. Now, as no two men ever think or talk exactly alike, so no two could be expected to write alike. Hundreds of men, loing business for years with each other, enjoy the most intimate and satisfactory acquaintance ♦nip through their correspondence alone ; having, it is possible, never met face to face, they, nevertheless, learn each other's peculiarities with as much certainty as if reared in the same family. All proper business letters, therefore, will differ in their general aspect, form, tone, and construction, as their authors differ in those characteristics which mark their individuality. While all this is emphatically true, there are certain qualifications in business letters which are equally essential to all, and with reference to which, general instructions may be given. We will enumerate a few of these points : Firnt. A business letter, like all other documents in manuscript, should be, chirographically, well written. We have no particular reference to any " System of Penmanship," meaning, 104 AUXILIARIES. rather, by a " well written" document, one which, in its general appearance, as well as upon closer inspection, will at once commend itself to the reader. Neatness and legibility are the chief requisites in a hand- writing. Second. The grammatical construction should be faultless ; and, above all, no document should be disfigured with misspelled words. Third. The subject matter should be immediately apparent, stated without circumlocution, and in terms not to be misconstrued. One important characteristic in a business document is brevity ; but brevity should never be secured at the cost of perspicuity. The briefest are some- times the most unsatisfactory of communications, and an affectation of brevity is as reprehen- ibJe as an unnecessary display of words. The rule on this point should be, to speak plainly and direc^'y upon the topics discussed, avoiding unnecessary repetitions, and leaving no part of the instruction or information to be guessed at or inferred. There are other points which we might enumerate, but they are all subordinate to the three above-named ; besides, there is little fear that any one will be proficient in these, and deficient in the others. We cannot too strongly urge upon young men looking forward to a life of usefulness and honor, the importance of this department of their education, as there is no qualification which will more surely commend one to the favor of an employer than proficiency in Business Cor- respondence. It is scarcely possible, in a treatise of these dimensions, to give, in detail, all the docu- ments and forms which would enter into actual transactions such as are here recorded. We Dave supplied this necessity in a measure in the latter part of the work, but have not attempted a complete list. The forms of Deeds, Bonds, Mortgages, etxj., vary in the different states ; the printed blanks of which can be procured at any ordinary book or stationery establishment. The forms of Notes, Drafts, Receipts, etc., will be found on page 118. It should not be taken for granted that any of the forms here introduced are the best that could be invented. They will certainly answer the purpose, and, in the absence of better, will do to adopt ; but we would advise every intelligent accountant to learn to depend upon himself, and to ascertain and administer to his own wants. One of the most common objections urged against works on Book-keeping and Commercial Schools, is that the forms and illustrations thus inculcated are inefficient, from the fact that no two business houses use the same forms. If this argument proves any thing, it proves too much, as it would also render futile, knowledge acquired in the counting-room, as well as in the schoolroom, and the private studio. The fact is, different /orww are but the different methods of expressing the same great truths, and are to be estimated according to the degree of ex- plicitness with which they announce these truths. An accountant, possessed of the least originality or energy, will be better able to prescrib« nis own forms than any person unacquainted with all the details of hia particular business, however well versed in any other specialty of the science, o 105 COMMISSION 1859 Apr. ]Mcise. Co. -A.. To Logan, Wilson & Co. Cash Storage and Adver. Commission Logan, Wilson & Co. Loss and Gain Krrors excepted. Received from L. W. A Co., Pittsburgh, to be sold on our joint % and risk each ^ 800 kegs Nails, @ $3 $2400 20,000 lbs. Lead, @ 7 c. 1400 Paid freight ~, ~' Our charges 2i fo on 1^4 700 Their \ net gain Our " " " Account Sales rendered April 6. L. W. & Co.'s net proceeds, $4136.26. Due May. 2. 3800 100 10 117 330 50 25 336 25 Itoo Ivldse. Oo. B. 1859 Apr. To Niles & Kinne Storage and Adver. Commission Niles & Kinne Loss and Gain Rrrorm exct^ptM. Received fromN. /Id.se. Oo. 3D. 1859 May I u i 1 3 ! i To Wm. K. Sadler East River Bank Charges Commission Wm. K. Sadler Loss and Gain * 0. S, Account Sales rendered May 3d. W. K. S.'s net proceeds, |1471. Due by equation, June 20. Received from "W. K S., Philadelphia, to be sold on our joint % , each i, 100 bbls. Cider Vinegar, @ $7, 60 do Linseed Oil, @ $40 40 h'f kegs White Lead, ^ $3 Our J invoice ... . . Paid freight, per check Storage, advertising and insurance . 2^ % on P120 . .... His i invoice, $14 lO, and net gain, $6 Our i net gain 2000 120 12820 3120 iL^cise. Oo. E. 1859 May To F. A. Boyle & Co. East River Bank Charges Commission F. A. Boyle Campbell & Strong Loss and Gain S <* 0. M. Received of F. A. B. A Co., New Orleans, to Oe sold on joint % of themselves, Campbell A Strong, and ourselves, each i, 100 hhds. Sugar, @ $60 $6000 Onr ^ above invoice Paid freight per check Storage, advertising, etc., 2i % on $7500 His \ invoice $2000, and net gain $254.16 . . Their \ invoice $2000, and net gain $254.17 . . Our ^ net gain Account Sales rendered May 8. F. A, Boyle 9; May 1 14 By Cash 17 « Cash " Loss and Gain Sold E. A. Charlton, 600 bbls. Pork, @ |9.60 . , Sold Theron W, Woolson, 260 bbls. Lard, 60,000 Ib^, @ 4 a Oar net loss 4750 iOOO 484 r234 3T SI 1=^ 109 ACCOUNTS SALES,— SET IV. Account Sales of { 20000 ibs^'L^a",^' } on joint % of Logan, Wilson &, Co^ and ourselves, each \. 1859 Apr. H 5 6 3 6 Sold for Cash, 400 kegs Nails, @ $3.50 Sold II. Haywood, on his note @ 30 days, 20,000 lbs. Lead, @ 9 cents 400 kegs Nails, @ $3.75 .... $1800 1500 *400 3300 . . . 100 4700 563 M Paid Cash for Freight M Storage and Advertising . « « . . . 10 Commission, 2^ % on $4700 . . . 117.50 Our ij, net gain on Sales . . . 336.25 7fc Logan, Wilson & Co.'s net proceeds . . . Invoice, 800 kegs Nails, @ $3 . . 20,000 lbs. Lead, @ 7 cents \ net gain ...... Net proceeds as above . . S. B. Due by Equation, May 2. BRYANT & S New Y01S.K, April "'*• Older Vlneear, ) Sales of \ 50 do Linseed Oil, \ On jolnt % of W. K. Sadler and ourselves, ea k { 40 h'f kegs White Lead, \ •" ' ■ 1859 May Sold J. R. Bigelow, for cash, ■ 100 bbls. Cider Vinegar, @ $7.50 Assumed and shipped on our own %, @ sixty days, 50 bbls. LiTiscod Oil, @ $45 $2250 40 h'f kegs White Lead, @ $3 120 ' Chargea, • Freight per check 50 Storage, Advertising*and Insurance ......... 50 Commission 2^ % on $3120 78 Our J net gain 61 W. K. Sadler's net proceeds Invoice 100 bbls. Cider Vinegar, @ |7 . . . . 700 50 do Linseed Oil, @ 40 .... 2000 40 h'f kegs White Lead, @ $3 ... 120 2820 Net gain 61 N<»t proceeds as above $2881 B. B Due by Equation, June 20. BRYANT & STRATTON, New York, jMai/ 3, 1859. per Packard. * A duplicate of this statement is sent to S. O. Pajn. Ill 750 2370 3120 239 2881 AUCOUNTS bALES, — SET IT. Sales of 100 hhds. Sugar on joint % of P. A. Boyle 8l, Co., N. O., Campbell &, Strong, and ourselves, each ^. 1859 May Sold Wm. A. Ilolley, Fort Edward, 100 hhds. Sugar, @ $75 . . . Charges. Paid Freight 1500 Storage, Advertising, etc. 50 Commission 2^ % on $7500 187.50 Campbell & Strong's net proceeds 2254.17 Our 1 net gain 254.17 F. A. Boyle & Co.'s net proceeds* Invoice, 100 hhds. Sugar, @ $60 $6000 Your and our S invoice 4000 Your A net gain 254.16 7500 8.K Net proceeds as above $4254 .16 Due by Equation, May 8. BRYANT & STRATTON. New York, May 8, 1859. 3245 4254 d4 16 Sales of \llVfi- 1^1:1 oil Joint % of H. D. Van Syckel, St. Louis, selves, each i. and GUI 1859 May Sold for cash, 500 bbls. Pork, @ $9.50 . . . Sold for cash, 250 bbls. Lard, 50,000 lbs., @ 4 c. Charges, Paid Freight 1500 Storage and Cooperage 50 Commission 2^ % on $6750 168.75 718.75 Less our J net loss 484.37 H. D. Van Syckel's net proceeds Invoice 500 bbls. Pork, @ $9 4500 250 do Lard 2500 E.B. 7000 Less your i^ net loss 484.38 Net proceeds as above $6515.62 Due by Equation, May 16 BRYANT & STRATTON. N»w York, May 17, 1859. 47fO 2000 6750 234: 6515 * L duplicate of this statement is sent to Campbell ft Strong. 112 INVOICE BOOK,— SET IV OUTWARD INVOICE BOOK. This Book contains copies of invoices of merchandise shipped by us, -sv hether on our owe account or that of the consignee, or oj ^^^xU. % of both. These copies are usually taken with a copying press, and are, therefore, exact facsimiles of the invoices sent. The forms h^-t^ given are those most commonly in use. Invoice of Merchandise Shipped by Bryant & Stratton, to be sold on joint % of Niles & Kinne, Buffalo, and themselves, each \ A A A 20 hhds. Sugar, 24000 lbs., @ 5 c $1200 100 bags Coffee, 14000 lbs., @ 10 c 1400 10 boxes Raisins, @ $3 400 2900 •Charges. • iMurance i % on $3000 New York, May 6, 1859. E.E. BRYANT & STRATTON, per Packard. 15 2915 invoice of Mdse. shipped S. G. Payn, Albany, by Bryant &. Stratton to be sold on joint % of S. G. Payn, Pliny Moore, and themselves, each ^. PP 30 hhds. Sugar, 30,000 lbs., @ 6J c . ■ Charges.- Freight on same N«w York, April 22, 18& E.E. BRYANT & STRATTON vtT rnckard 1950 50 2000 118 INYOICE BOOK,— SET IV. Cnvoice of Merchandise shipped R. W. Hoadley, Philadelphia, to be sold on joint %, each i. 200 bbls. Mess Pork, @ f 9 charges. ■ Paid Drayage -.... !l800 18 isTb" BRYANT & STRA'l'l'ON, per Packard. New York, May 2, 1859. •". Cnvoice of Merchandise shipped Hanna, Beaser & Co., as per their ordei: <»> ■ — — — — —— ■' -...—.— 50 bbls. Linseed Oil, @ $45 2250 2370 40 h'f kegs White Lead, @ $3 120 ^ Payable @ sixty days. BRYANT & STRA'ITON, per Packard. New York, May 3, 1859. Invoice of Tea. KiKSET & ITiNDB, Cincinnati. Bought of Stephen V. Albro & K^v. Terms: 4 Months. 72 Chests Young Hyson Tea. 108 100 115 105 119 110 109 119 108 100 120 112 112 122 109 112 121 115 120 120 106 113 117 102 103 118 105 110 104 108 117 119 119 117 111 109 102 117 115 115 111 112 115 104 117 119 108 114 112 102 109 106 115 118 j 108 112 109 120 112 120 107 120 108 104 100 119 105 100 112 100 109 107 1924 1 1 15 1939 r-" 1318 i5od ib3J6 id^l i347 1346 8017 lare, '-ftu ^ off ?603 ' .«414/^.qnn. 3(1 ChargM. Drayage 5 Insurance 10 Nbw York, Jan. 13, 1860. 2(1" TI? INVOICE BOOK,— SET IV. Straw Goods.* Messrs. John Caldwell t Co. Temu : 8 Months. Note to your own order. New York, February 13, 1860. Bought of T. J. G. Clark. No. 342 516 271 403 233 453 423 543 603 321 2141 218 311 372! 412 415 425 549 629 456 327 454 517 612 4512 3857 3672 2837 2856 3756 4289 2432 3162 33 Cases assorted goods. 36 Fine English split Straw Bonnets @ 42 " " " 62 Embroidered Hair and Lace Bonnets 16 Neapolitan Bonnets 16 Pamela " 42 15 End Braid " 42 1 1 " " 42 Tulip and Coburg Braid Bonnets 36 Hair " " " 42 " Rustic " " . 62 Pedal Braid Bonnets 50 Florence " " 22 Fancy Lace Braid Bonnets 42 " " over Frame Braid Bonnets 3i doz. Canton Braid Riding Hats 3-1^ " Pedal Braid Bloomers 3-|2^ " Hair and Fine split Straw Riding Hats .... 5 " Open Hair Lace Riding Hats 6 " Coburg and Hair " 5 " Fine split Straw R. H. (trimmed) 5 " Pamela and Tulip " " 6tV " " Coburg " " 3rV " Eine Pedal « " 4tV " " Brown Lace « " 5-1^ " Men's English Dunstable Hats ...,,., 6 " Mixed Sennets " " 4tBj " Colored " " " 3-1^ " White Leghorn " " 4 " Assorted " " " 3t\ " Canton R. Brim Hats 5^ " Marnciiibo Hats 3 " Carracao '^. ..•••.•••.. 4^3^ " Palm Leaf " 12.37^ 2.00 1.87^ 1.75 2.00 0.87i 0.75 1.62J 2.25 2.25 0.42^ 1.85 3.12 J 1.87 J 5.50 6.50 18.75 16.50 19.62 24..')0 30.00 35.00 15.00 21.00 42.00 16.50 18.00 21.00 24.00 10.50 27.00 21.00 0.95 & JS. 85 84 116 28 32 36 31 68 81 94 26 92 68 78 19 23 60 82 117 122 150 215 48 98 234 99 84 68 96 38 139 63 4 12690 50 25 75 50 25 50 35 50 75 75 25 83 94 50 72 50 83 75 50 25 50 50 04 21 * This an 1 the preceding Invoice are not connected irith tb« trmnsBctions of thia S«t, bat are Babmitted. in thii •nnnectioe, for the purpoae of ezh.bitiDg a greater rarietj BACKING AUXILIARIES. All Banks of Deposit furnish their dealers with the necessary blanks for keeping a Bank Account. These are, mainly, a Check-Book, a Pass-Book. and Deposit-Checks, all of which are here exhibited. THE CHECK-BOOK, As will be seen, is a book of blank-checks, with a margin for memoranda, containing, in brief, the Bank Account. The checks are filled and torn off, leaving the memoranda. By adding deposits and deducting checks, the balance in bank is always apparent. Many houses keep no other bank account than this, in which case, the balance in bank is always included in the Cash Account. THE PASS-BOOK, Exhibited below, is a simple memorandum of depos- its, in which the receiving teller of the bank enters the date and amounts deposited, and as often as required the checks drawn are entered up, showing the bal- ance in bank. This is our Receipt- Book with the bank. The following example is intended to illustrate a folio, or two pages : Dr. East Rivke Bank in % | WTTH Bet ANT 4 Sbatton. Or. 1S59 1859 Apr\ May\ To Cash... .8 10000 il».26 ^' 26 ByCash.Ck. 1 200 " 8 8500 ' ..Ck. 2 968 76 '* 10 " 8 4000 May\ ' ..Ck. 3 60 "88 •• . ...8 10000 " 6 " 6 " 7 « 13 " 18 • ..Ck. 4 • ..Ck. 6 • ..Ck. 6 • ..Ck. 7 • ..Ck.8 150 500 600 4667 4186 60 86 — -u MaUu^o* rwr M 82600 88600 Balance 21887 DO DEPOSIT-CHECKS Accompany the deposits, and contain a memoran- dum of the kind of funds and the total of each de- posit. Tlie receiving teller compares these items, and if correct, enters the amount in the Pass-Book. By in EAST RIVER BANK, New York, G^/i*. 1, -869. Bank Billi •000 8eux 960 660 8|»eoie Check! <• lOOOO = 1869 "^^^ay EsLst Ptivei ^/^^/©^. <^JUc4QyVo. ^Apo4 Q/Vo, lOOOO 20O 9800 968 8831 SO 8781 8qoo 17281 150 17131 500 1 663 1 500 16131 4000 20131 4657 15473 4136 »i337 1 0000 213^7 75 '5 ^% *5 »5 *5 25 75 25 50 116 CHECK-BOOK. Ba,-n>r. No 1. ^. M. ^lyarU on ^nva^e ^ G^f^ 25, 1859. 200 No.^. M. '^our/tf^. ©^i150' ^iytmt ^^ <^iuU6m. JS. l1 No. 5. New York, oSty 6, 1859. EAST RIVER BANK, Pay to ^/Miut* Q^lopuAoUaium ^oi or Bearer^ ^1^1^ ^St*u/ud -^ Dollar i. Ifoo. £i*ymU ^

Sj Co., Twenty-nine Hundred Dollars, at the East River Bank. Bryant ds Stratton. 15000. Nkw York, April 12, 1859. Ninety days from date, we promise to pay Daniel Drew, or order, Five Thousand Dollara. Tftlue received. Bryant & Stratton. H136 fis. \^ Pittsburg, April 7, 1859. At thirty days sij^Ht, My to the order of Geo. K. Chase & Co., at their Banking House, 13 Cooper InstituJE^^IVjny-one Hundred Thirty-six -^^ Dollars, value received, and charge to account of U" "k Logan, Wilson & Ca To BrMiihrStratton, New York. NOTES, DRAFTS, ETC.— SET lY. 13900. » ' Nkw York, May 13, 1859. j ' ■ ^• At ten days sidft^pay,liin;he order of George A. Crocker Thirty-nine' Hundred Dollars, and charge to accoupJfof i/ ^ Hops & Co. To BryfitU (t ^ration, New York. "" y'^. $2881. (5^ Philadelphia, i/ay 25, 1859. At thirty days sigiit, pay to the order of B. McGann, Twenty -eight Hundred Eighty-OM Dollars, at the Afetropolitan Bank, value received, and charge to account of To Bryant & Strdtlon, New York. Wm. K. Saducr. LETTER BOOK. Messrs. Bryant 492 600 601 1254 1234 8 Cases 33 in Bleached Sheeting, 97'd4> yds. @ He. 924.78 .671.18 0.R Pi Discount off 5* 78.66 1492 68 2684 archases on time (taken to Ledger), b* Cash purchases (posted from Cash-Book), J49a_ J58 Total for the month. 4127 J2 134 FOREIGN INVOICE BOOK FOREIGN INVOICE BOOK.* NEW YORK, JULY 1. 1860. eierfins Currency. Federml ( ofrawi <*> 201 1 S. B. Higgins & Co., Glasgow, per Steamer " Edinburgh" June 3, 1S60. 50 pa. 9-8 printed Jaconets, 2572 ydi. @ 4id. £ 50 18 d. 1 £ «. d $ eta t eU Making up, Casing, etc. J_ n — 52 9 1 806 50 pg. 9-8 printed Jaconets, 2.540" yds. @ 4fJ. 50 5 7 Making up. Casing, etc _J_ 31 — 51 16 7 Vff 50 ps. 9-8 printed Jaconets, 25tiP yds. @ 4i>i. Making up, Casing, etc. 60 13 10. 11 1_ 68 4 8 808 60 ps. 9-8 10 B. and W. Jaconets @ 5#. 5d. 1 1 1 8 2 84 4 9 4 1 21 22} 23 24 24i 25 25i 26 26i 8T Making up. Casing, etc. 16 5 _4 17 • 809 58 ps. 9-8 10 B. and VT. Jaconets @ 5«. 5d. 2 2 42 S 6 1 2-% 24 25 25i 26 S6| 15 14 8 Making up, Casing, etc. J. _£ S_ 16 17 10 810 56 ps. 9^2 12<»» B. and W. Jaconets @ 7s. 3d. 1 1 4 88 11 1 18( 28 24 25 25} S< 20 6 Making up, Casing, etc _1. _«. j4. 81 8 4 811 56 ps. 9-2 12""' B. and W. Jaconets (cb 78. Sd, 20 6 Making up, Casing, etc. 1 8 4 81 » 4 818 64 ps. 9-8 14" printed Jaconets @ Ps. 9d. 1 1 3 3 84 9 111 144 23 24 24i 25 25i 26 27 88 23 18 6 Making up. Casing, etc _L A. — 24 858 11 A. 4 Discount oti' l^ fi 8 854 18 -1 9 Cartage 8 9 B. L., etc. 5 Commission H % A. It ±. * 858 A. 15 10 18SI « 0- A Duties 24 J6— Paid in Cash, in « 800 •1 lU P.B A Johnson, Quigley & Co., ^fanchester, per Str, ''Manchester " June 4, 1860. Tl 25 doz. Ladies' white Cotton Hose (g 2s. 9d. 20 " " " 3». 29 " " " 2«. lOi. 8 8 4 8 8 9 8 46 1 doz. Ladies' Pearl Spun Silk Hose, b* 20». 1 46 1 " " " 9 20». 1 1 4 " black " 9 19«. S 16 6 2 •' near! " 9 53«. i doz. Men's Novi Silk Shirts 89«. 5 6 « 19 6 «2 1 " " " 60«, 2 10 120 1 • " " 66». 2 15 66 1 " " " 62». 8 2 6a 8 doz. Ladies' Lisle Gauntlets 11<. 6d. 4 12 100 5 " " " 12*. 6d. 3 2 6 101 5 " " " 82«. 1034 " Inland Carriage Cases, Oil Cloth, etc. 5 10 2 10 la. -1- 15 8 Commission U % 18 5 46 18 8 881 11 Duties, 24 % on Cotton and Ic % on Silk 0- »• Paid in Cash. Amounts forward 44 81 ^ M4 '418. « Co^i'es of Foreign Invoices, with Import Duties added. 135 FOREIGN DfVOICE BOOK— SET V. NEW YORK, JULY 15, I860. Sterlins Curremcy. Federal ^Camnev- Amounts forwaru £ : d. £ «. d. $ Ictd 844 1 82 $ 1478 oil P. B A. & J. Bailey, Bradford, per Steamer '■'Etna," June 15, 18bU 64 60* Laveilas assorted, 3028^ @ 3W. Making up, Casing, etc. 48 2 17 6 11 10 Discount IJ % 51 4 12 9 9 Carriage to Liverpool GL B. Duties 19 %— Paid in Cash. 50 12 6 50 18 46 30 M« M 70 90 1 16 P.B A Co 620 S. T. Horton, Glasgow, per Steamer " ITali/ax," June 20, 1860. 400 9-8 14"" Robes a Les, 10 yds. each 4ts. &d. Off 36 ps. No 1, 9«., and 1* % £1 7». Card 4s., Box 17«., Com. etc., £1 12«. 88 2 4 13 90 17 Cartage 1 9 0. Bl uuties 24 % —Paid in Cash Total Imports for the month Duties on the same 90 18 9 105 25 440 It 497 2160 497 16 26 M67 41 . — SH F.B. ft Go. 29 William 'Khornton & Co., Bradford, per Str. ''Australia,'' July 1, 1860. CO* Mohair Mixtures, 2096 @ Sid. Case, Pkg, etc., 14«., Com. 19«. ^d. 89 1 18 2 6 40 18 8 80 60* Bye Cloths assorted, 2;t69 @ Sd. Case, Pkg, etc., 13«., Com. 18«. 6d. 87 2 11 8 6 88 18 » 81 60* Bye Cloths assorted, 2973 @ 3d. Case, Pkg, etc., 13«., Com. 18«. 7d. 37 8 11 8 7 83 14 10 82 60* Bye Cloths assorted, 2965 @ Sd. Case, Pkg, etc., 13«., Com. 18«. &d. 87 1 11 8 6 88 12 9 88 CO* Bye Cloths assorted, 2966 @ 3d. Case, Pkg, etc., 13»., Com. 18«. 6.^. 37 1 11 6 6 88 18 84 60* Bye Cloths assorted, 2965" @ 3d. Case, Pkg, etc., 13«., Com. 18». 6 13 14 16 18 20 14 16 18 20 16 18 20 2 ps. 10-4 Sheeting, 92} yds. @ 70c. $64.98 2 " " 92} " 76c. 69.66 2 " " 91} " 80c. 73.40 2 " " 92i " 85c. 78.41 1 " " 45i " 90c. 40.96 1 li-4 " 60^ " 84c. 42.17 1 " " i&i " 90c. 41.62 1 " " 44i " 95c. 42.04 1 " " 46i " $1 46.60 1 12-4 " 46 " 95c. 43.70 1 " " 45} " $1 45.75 1 " " Ui " $1.15 62.32 22 1 «' " 45} " $1.26 67.19 697 M Note @ 6 months from July 6. 10 W. P Pratt & Co., CSncmnati, 20€ 50 ps. Printed Jaconets, 2540^ yds. @ 14c. $865.67 207 60 " " 256 li " 14«. 868 61 714 28 Keceived Cash. Amoimte forward, 714 28 1862 41 L87 B.LAGo CM E.A E.A. D. C E N. E O. 733 734 735 539 540 3892 5788 G202 4187 5030 5685 169 170 171 172 SALES BOOK — SET V. NEW YOKK, JULY lO, I860. Amounts forward, Baldwin, Laundon & Co., 4 Cases Bleached Shirting, #760 761 753 764 Note @ 8 months from July 10 12 Charles Claghorn & Co., 10 ps. Black Doeskin, ^163 728 28{ 40 40 40 1732' 1736 1746' 1741" Elyria, O. 6966 yds. @ 12fj. Homer, IlL 870 764 864 860 766 769 750 822 833 Received Cash, 29 28} 28} 28i 28| 29| 29i 28} 29i 15 288} yds. @ ll.SO 714 28 1862 II 669 as 433 12 E. Mussey & Co. 6 cases Bleached Shirting, 1240' 1239 1234» 1208 1233 6156 yds. Note @ 8 months. • 20 ■ Amherst, O. ® IBc. Starr & Co., 62 Prints, 973 Elyria, O. 62 68 61 49 49 966 967 972 968 971 1868 1834 1895 1924» 1954 1929» 6687 yds, @ 12c. $670 44 6808 yds. @ 13c. 756.04 Note @ 6 months. 22 Murray Shipley & Co., Cincimiati, O 8 cases SSin Bleached Shirting, 1202" 1212' 1197' 1239 1223* 1254 1171' 1234 9734i yds. @ I6c. Note @ 8 months. Amounts forward, 923 'iti 1425 4^ 1460 1147 401 6540 14 6fl 138 SALES BOOK— SET Y. NEW YORK. JULY 25, 1860. 520 7 14 16 17 62 231 9355 9500 9095 231 19 B 1066 1 Amounts forward, Bidwell & Co., Adrian, ^fich. 200 9-8 14 »» Robes a Lea (10 yds.) @ $2.00 Heceived Cash. 1147 400 40 67% 28 Edwin C. Packard, Crystal Lake, Wis. 6 White Piques, 119' @ 75c. 189.44 2 " 37' @ 80c. 80.20 4 " 64' (3! SOc. ftl.40 1 U^ote @ 8 months from data. Sales on time, Sales for Cash, entered herein but posted from C. B. Petty sales, entered alone on C. B. Total sales for the month. 1547 980 If 40 75! 1 1= ! 6» 1 63 739 BLM August 1 O. C. & E. C. Wright, Lockport, N. Y. 1 bale Brown Sheeting, 663' yds. @ 14c. |78.89 60 doz. Gent's Linen Hdkfs. @ $6. 260.00 1 case Cotton Damask, 640 yds. @ 20c. 108.00 16 pes. Blk Bombasin, 668 yds. @ |1.25 710.00 1 case Silecia, 2200 yds. @ 13c 286.00 Note @ 6 months. 1* ■ C. R. Caulkins, Delaware, 0. 60 pa. Prints, 876 1782 60 " 813 1831* 8613» yds. @ 16c $542.06 68 " 826 1970' " 12c 236.49 778.66 5 % off. 88.92 Received Cash. David S. Hoadley, Berlin, 0. 10 pes. Black Bombasin, 860 yds. @ $1.10 $386.00 20 pes. Duck, 710 " 20c 142.00 Note (£$ 8 months. a J J). Hinde & Co., Cincinnati. 1 bale Stark Brown Sheetings, 829 yds. @ 10c. $82.90 1 bale 4-4 Shaker Flannel, 837' 60c 168.76 12 pes. Green Veil Barege, 200 35c 70.00 1 case Solid Check Ginghams, 2394 " 18c 480.92 Note @ 8 months. Amounts forward. 739 66 171 04 6711 70 2528 9239 11 85 1432 89 527 752 2712 57 46 139 SALES BOOK,— SET. V. NEW YORK AUGUST 10. I860. Amounts forward, Geo. A. Crocker, Rochester, 6 cases Columbian Prints, 739 63 2712 4(1 A.T. 596 958 2130* A.S. 587 969 1913' X. 351 341 1936 1886* A.C. 411 1742 9608 yds. @ 10«s. $960.80 6 % off 48.06 912 76 Received Cash, 15 Wm. H. Woodbury, Chicago, 111. 4 cases Harop Prints, M. 481 246 1381» 0. 491 1262 1581* M. 509 1108 1222 M. 97 12'76 1Y16* 6861 yds. @ 12c. $702.12 2 bales Brown Globe Drills, 1141 1032* 1147 1029 2061* yds. @ 10c 206.17 Note @ 8 months. 17 908 2»< C. C. Jones, Peoria, III. L0P 8 197 19 1 case Paper Cambrics, 2000 yds. @ 10c. $200.00 21 pairs White Blankets, @ $3.63 76.23 17 pes. Black Satinet, 469 yds. @ 75c. 851.75 17 pes. Duck, 662 @ 20c. 132.40 A.B. 1 case Cottonades, 687' @ 27c. 185.56 "•fc 945 94 Note @ 6 months. 9A Paul Roberts, Buffalo, N. Y. 9 cases Cotton Damask, 4860 yds. @ 20c. $972.00 6 % off, 48.60 923 40 Keceived Cash. 2b M. Tompkins & Co., Lasalle, 111. 90 doz. Ladies' Lisle Gauntlets, % $5 $450.00 6 « Kid Gloves, @ $7 85.00 486.00 6 % off, 24.26 460 75 Received Cash. C. J. Dietrich, Bellefontaine, Ind. 1 case Linseys, 1266 yds. @ 20c. $253.20 1 case Corset Jeans, 1493 " 10c 149.80 402 50 Note @ 8 months. Amounts forward. 3036 53 4969 Itf 140 SALES BOOK,— SET Y. NEW YOKK, AUGUST 25, 1860. Amounts forward, 3036 53 4969 10 Baldwin & Co., Qeveland; 0. 839 8615 9426 66 ps. Prints, 812 1845» 62 " 817 1803' 9737 64 " 814 1870' 6619 yds. @ 18c Note @ 8 moaths. 27 717 47 Ubsdell, Pierson & Co., St. Louis, OPACo 29 30 31 32 33 34 604 ps- Mohair Mixtures, 2996 @ 16c $449.40 60i " " 2969 @ 14c 416.66 60i " " 2978 @ 14c 416.22 60i " " 2966 @ 14c 416.10 60i " " 2968 @ 14c 416.24 60i " " 2966»@ 14c 416.17 35 60J ps. Fine M. Mixtures, 2877'® 27c 776.92 Note @ 8 months. 3303 71 Raymond & Co., Oeveland, 674 18 19 20 4 ps. WMte Piques, 76'@ $1.00 $76.26 1 " 16 @ $1.26 18.76 8 ps. Welts, 168 @ .40c 68.20 54 60J ps. Lavellea, 8028'@ .16c 484.62 641 73 Note @ 8 months. Jin ■ Jonas Stratton, Amherst, 0. 62 i doz. Men's Novi Sil^ Shirts, @ $20 $10 120 1 " -26 26 66 1 " "80 80 68 1 « "86 85 211 66 Printed Jaconets " 8 168 212 64 " " 8.60 189 457 Note @ 8 months. Sales on time. 10089 09 Sales for cash, entered here and posted from 0. B. 3036 53 Petty sales entered alone on C. B., ToUl sales for the month. 1122 77 4159 30 14248 39 141 CASH BOOK,- This is the most convenient form for a Cash-Book to be kept in connection with a general merchandise business ; the feature of special columns may be extended, if desirable. It will be seen that all cash entries,, debit and credit, are taken to the Ledger, either through the Journal or directly, from this book, together with all accounts producing or costing cash. The amounts distinguished as " per petty Cash-Book," are entered here from a book contaui- ID r. Oash.. 1860 1 1 1 3 5 6 8 IC 11 12 14 15 18 21 25 25 27 30 31 1 3 3 5 6 7 10 12 17 20 23 25 25 81 V V V V y V ^' V Amount on hand .... Mdse. Sales, per petty Cash-Book . J. II. Lewis Received on % Mdse. Sales, per petty Cash-Book . Loan Return from J. E. Jenkins J. H. Lewis Received in full of % , . . Mdse. Sales, per petty Cash-Book . Mdse. Sold W. P. Pratt, Cin'ti, (S. B.) W. Fennel In full of % Mdse. Sold C. Claghorn, Illinois, (S.B.) Bills Rec'ble John Gundry's note due . . Mdse. Sales, per petty Cash-Book . Bills Rec'ble S. S. Pomroy's note discounted Mdse. Sales, per petty Cash-Book . Bills Rec'ble Starr A Co.'s note discounted Mdse. Sold Bidwell & Co., Adrian(S.B.) Mdse. Sales, per petty Cash-Book . Mdse. Sales, per jjetty Cash-Book . R. Barker Rec'd in full of % . . . . Mdse. Sales for Cash . . Total Cash received daring month MdM. 1 Swndriet. Baloutet^. /uly 97 125 157 714 433 115 127 400 275 83 50 28 12 75 50 15, 500 1000 1200 483 1580 1000 1425 1000 50 48 6725 10717 20 2528 8188 2528 98 15 10717 13 13 17442 33 iug Balance on hand .... Mdse. Sold C. R. Caulkins, Del, (S. B.) Mdse. Sales, per petty Cash-Book . Interest Discount on note favor G. A. C. Bills Rec'ble Disc. 0. C. A E. C. Wright's note Mdse. Sales, per petty Cash-Book . Mdse. Sold Geo. A. Crocker, per S. B. Mdse. Sales, per petty Cash-Book . Mdse. Sales, per petty Cash-Book . Mdse. Sold Paul Roberts, per S. B. . Mdse. Sales, per petty Caun-Book . Bills Rec ble Discounted C. C. Jones's note . Mdse. Sold M. Tompkins, per S. B. . Mdse. Sales, per petty Cash-Book . Mdse. Sales for Cash . . . Total Gash rec'd during month 739 89 150 912 218 375 923 175 160 115 63 27 75 50 40 75 19 1432 945 41 8ft 94 J613 6557 06 4159 30 2398 4159 24 30 b4 6557 54 13170 60' U2 SET V. ing sales too insignificant to be entered on the regular Sales Book. The column headeo " Balances," will be found very convenient for the purposes for which it is used. The Check- marks, in the column following dates, are made to indicate that the amounts opposite in the "Sundries" column have been journalized. Were these amounts posted directly to the Ledger, the Ledger-page would be written instead of the Check-marks. Gsisli. €r. 1 1 3 3 5 5 7 10 10 12 15 18 20 23 25 25 25 25 29 i v/ 2 y/ 5 V 6 V 10 12 V 15 V 20 20 25 V 25 V 81 v/ Mdse. Mdse. Expense Loan Expense S. S. Packard Richard Beale Mdse. Mdse. Expense Mdse. Interest J. T. Calkins Bills Payable Mdse. Mdse. Expense Interest D. V. Bell Expense Loan Bills Payable Interest Mdse. . Expense J. C. Bryant Mdse. Mdse. Expense Interest Expense Paid duties, per Foreign I. B. .... Olmstead's Invoice, per Dom. LB. . . Francis & Loutrel's Stationery Bill . . . Lent J. E. Jenkins for one day .... Postage Stamps, $3 ; Drayage, |6 . . . Paid him on Private % Paid him in full of % Duties, as per Foreign LB Clafflin, Mellen raiDeror Kndorstr. Drawee or Maker. JkOe. j Time. 1 ^J^ Amount. WJtenandOom IH»t>oeed qf. 1 Julyl H. W. Ellswor 1 ih iJobn Gundry . . 1860 Jan. 11 6 mo. 1860 July 14 1580 cts 00 Jidy 14 Paid. a 8 " 1 " 1 Daniel Atwood P. B. & Co. . 8. S. Pomroy . . . . Gordon Bailey . . Mar. 12 July 1 8 mo. 8 mo. Nov. 15 1861 Mar. 4 1000 891 00 85 M IS UiM'td 4 « 1 H. B. Bryant . . Ira Packard . . . " 1 6 mo. Jan. 4 278 62 6 " 5 Paul Roberts . Siram Newell . . " 5 6 mo. " 8 697 54 • « 10 H. D. Stratton Baldwin, L. & Co. . " 10 8 mo. Mar. 13 869 88 T ' 15 P.B. ACo.. E. Mussey & Co. " 15 8 mo. " 18 923 26 8 " 20 J. G. Reid . Starr & Co. . . . " 20 6 mo. Jan. 23 1425 48 Jriy S6 DiaaTM. 9 " 22 Jno. D. Hinde . Murray, S. & Co. . " 22 8 mo. " 25 14«0 U 10 " 28 Wm. P. Eaton . E. C. Packard . . " 28 8 mo. Mar. 31 171 04 11 Aug. 1 James Atwatei r . 0. C. & E. C. Wright Aug. 1 6 mo. Feb. 4 1432 89 Aif. • DiM^ 12 " 5 P. B. & Co. . . David S. Hoadley . " 5 8 mo. April 8 527 00 18 " 8 do . . . J. D. Hinde & Co. . " 8 8 mo. " 11 752 67 14 " 15 J. 0. Eaton . . W. H. Woodbury . " 15 8 mo. " 18 908 29 v6 "17 P. B. & Co. . . C. C. Jones . . . " 17 6 mo. Feb. 20 945 94 A«f. 16 iMinA i6 » 25 do . . C. J. Dietrich . . " 25 8 mo. Apr. 28 402 60 17 " 26 do . . Baldwin & Co. . . " 25 8 mo. " 28 717 47 18 " 27 do . . Ubsdell, P. & Co. . " 27 8 mo. " 80 8303 7J 19 " 28 do . . Raymond & Co. . . " 28 8 mo. May 1 641 72 20 " 80 do . . Jonas Stratton . . " 80 8 mo. " 8 457 00 Bills BsiysLlDle. do. When Istued. 1 Jan. 20 2 Mar. 1 8 Apr. 12 4 July 5 6 " IC 6 " 20 7 Aug. 1 « Dr€MB«ror JSndoraer. H. G. Smith & Co A. S. Prentiss . Geo. A. Crocker C. F. Spalding J. Walker . . E. Lambert & Co. W. G. Hunt . Arnold & Go. . Dra/voee or Maker. P. B. & Co. do do do do do do do Date. Jan. 20 Feb. 26 Apr. 12 July 5 " 10 " 20 Aug. 10 " 20 Time. 6 mo. 8 mo. 6 mo. 4 mo. 8 mo. 8 mo. 8 mo. 8 mo. When Due. 1860 July 23 Oct. 29 Oct. 15 Nov. 8 1861 Mar. 18 Apr. 18 " 28 4000 3500 1426 558 1006 «60 708 1926 When and iio%» Jied-etmed. July A«g. Pftid. Dia(ft4 144 IKVENTORT BOOK INVENTORY BOOK. This book is used to enumerate the different articles of unsold merchand se, at such times as may be deemed desirable. It is, in this instance, purely an auxiliary, the amount of m-jrchandise on hand being included in the opening journal entry. Inventories are frequently copied into one of the Invoice Books ; but a separate book is preferable. Marks. Nm. Mdse. on hand, July 1, 1860. Yds PHm Amount. R. H.M. © I. <^ B. B. Y.<$>W. R. &X. A. S. B E S. 49 192 1 8 1072 1060 1085 197 231 19 1289 62 M. 190 4 3024 130 1066 4595 1 case Prints 60 pieces Doeskin 1 bale Brown Sheetings 1 case Black Tabby Velvet 1 case Paper Cambrics 21 pairs White Blankets 1 bale Denims 41 pes. Blk and Wht Tweedg . . . . 3 pes. Blk Doeskin 21 " Fancy Cassi meres 17 " Blk Satinet 1 case Printed Jaconets . .' . . . 1 " Woolen Shawls 26 pes. Blk Bombasin 37 " Duck 2 bales Blk Wadding .... doz. 110 Ptobes 1 case Cottonades 10 cases Cotton Damask 150 doz. Gent's Linen Ildkfs . . . . 150 pes. Diaper 50 -y Blay Linens 1 case Delaines 1 " Blk Alpacas 1 " Opera Flannel 1 " D. Bege 100 doz. Men's Gloves . . . . . 140 " Ladies' Lisle Gauntlets 5 " " Kid Gloves 1 bale Stark Brown Sheetings . . . 1 " 4-4 Shaker Flannel 12 pes. Green Veil Barege 1 case Solid Check Ginghams 25 pes. Coburgs 1 case Silecia ] *' Linseys 1 " Corset Jeans 1 bale Eajfle Ticks T35" 1905 1842 563» 796 2000 569 1369* 70 576' 469 2010 60 900 1392 80 687' 5400 1931» 1300 910 750 864 829 337* 200 2394 525 2200 1266' 1725' 700 .10 1.35 .11 .26» .06' 3.43 .10* .25 .92* .60 .52* .12' 4.89 .87* .15 .22 1.50 .22 .16 4.50 .90 .17 .25 .27' .37' .11 2.50 4.46 6.25 .08* .45 .29 .14 .50 .09' .17* .06 .11* 190 2486 61 212 125 72 59 342 64 345 246 251 293 787 208 17 165 154 864 675 135 328 325 250 281 95 250 624 31 70 151 58 335 262 203 221 103 80 11432 50 70 98 93 03 74 37 75 75 22 25 40 50 80 60 63 35 25 25 04 40 25 46 88 16 50 50 64 51 50^ ~84 JOURNAL— SET V. NEW YOKK. JULY 1, 1860. Sundries To Sundries Resources and Liabilities of S, S. Packard, D. V. Bell, J. C, Bryant, and J. T. Calkins, partners in the firm of " Packard, Bell tb Co.," doing a general Jobbing and Import- ing business in the City of New York ; as taken from the Balance Sheet of their last Ledger : Sk- Cash Amount on hand, per Cash Book . . . 6725 20 Merchandise " " Inventory Book il432 84 Bills Receivable Notes on hand, per Bill Book .... 2580 Store Rent Advance payment for rent 2ooe .T cih n T iPwi «i Balance of ^ 1700 1000 483 Robert Barker « William Fennel « 50 To Bills Payable Notes outstanding, per Bill Book . . . 8926 " R P. Beale Balance of % 185 « S. S. Packard Net Investment ... 4202 63< " D. V. Bell « 4202 4202 4202 63 64 64 « J. C. Bryant « J. T. Calkins u M 31 Merchandise To Sundries 4381 10 To Bills Payable For the following Invoices per Dom. L B. : From C. F. Spalding, July 6, $65S.6l " J. Walker & Co. " 10, 1006.64 To S. B. Higgins " E. Lambert A Co. " 20, 660.78 2220 1252 94 Invoice of July 1, per For. LB. ... 55 " Johnson,Q.&Co 10, « ... 221 '11 " A. & J. Bailey 16, " ... 246 36 « S. T. Horton 28, - ... 6711 70 440 14 Bills Receivable To Merchandise Sales for the month, per Sales Book: Gordon Bailey, July 1, $891.85 Ira Packard, " 1, 278.62 Hiram Newell, •; 6, 697.64 Baldwin, L. A Co. " 10, 869.88 E. Mussey & Co. " 15, 923.25 Starr «fe Co. " 20, 1426.48 M. Shipley A Co. " 22, 1460.14 Edwin C. Packard " 28, 171.04 10717 13 6711 70 // Cash To Sundries Receipts per Cash Book: To Mdse. Total Sales for Cash 2528 Id " John H. Lewis Rec'd on %, $600; 11200 1700 " Loan Return from J. E. Jenkins . ... 1000 " Wm Pennel In full of % 483 50 TT ill* X \^111101 " Bills Rec'ble Rec'd on Notes, $1680; $1000; $1426.48 4005 48 ** Robert Barker In full of % 1000 47781 47 47731 ^ 146 JOURNAL,— SET y. NEW YORK, JOLY 31, 1860. Sundries / To Cash Disbursements per Cash Book: Mdse. Purchases, etc., for Cash .... Expense Aa per Items, $16.76 ; |8; $66 ; $66 Loan Lent J. E. Jenkins S. S. Packard Paid on private % Richard Beale In full of % Interest Per Items, $16.92; $60.44 . . . . J. T. Calkins Paid on private % Bills Payable Redeemed note favor J. H. Smith . D. V. Bell Paid on private % Mdse. To Bills Payable Aug. 31 - To Sundries Invoices per Dom. I. B. From Wilson G. Hunt, Aug. 10, $708.40 " Arnold 4 C. " 20, 1926.14 " Wm. Thornton Invoice of Aug. 10, per F. L B. ... ** J. Muir&Sons " "20, " ... Bills Ref'ble To Mdse Sales for the month, as per Sales Book : O. C. A E. C. Wright, Aug. 1, $1432.89 David S. Hoadley, " 6, 627.00 J. D. Hinde 4 Co., " 8, 762.67 Wm. H. Woodbury, " 16, 908.29 C. C. Jones, " 17, 946.94 C. J. Deitrich, " 80, 402.60 Baldwin 4 Co., " 26, 717.47 Ubsdell, Pierson 4 Co. " 27, 8308.71 Raymond 4 Co., " 28, 641.72 Jonas Stratton, " 80, 467.00 Gsah To Sundries Receipts, per Cash Book : To Mdse. Total Sales for Cash " Interest Discount on note favor G. A. 0. . . ^ Bills Reol^Ie Received on notes, $1482.89 ; $946.94 Sundries To Cash Disbursements, per Cash Book : Mdse. Purchases, etc, for Cash Expense Per Items, $17.60; $100; $18; $60.76 Loan Lent J. H. Tobitt Bills Payable Discounted note favor G. A. OL . . . Interest Per Items, $49.60; $32.19 J. C. Bryant ^ P^d on private % ...... 10829 S7 5007 144 1000 100 185 67 150 4000 175 4277 16 75 80 2634 1454 188 54 64 6a 10089 09 6557 54 10089 4159 19 2378 4153 09 30 41 83 127 1814 181 500 1426 81 150 S5906 23 25 79 97 85906 97 147 pq PL, II ••••• 1 i : : : : : : : : gss"S3ss •S8i8;:ss • • •« • ■as ■ * O &i=.&oot/)a8 : CO m »> -t ■* o ; 't-i . .Aai ^ ^ ■*■*■* •-» >- e< r- low OS c^ . « o» -O ©1 O > 00 1-1 Ti r-n-< : :»-i !Ji'l^l= aiQi-»>-»o5SoQSad'-»-^oQ>J«QQ-('nO!^"»'^ u» =di QUESTIONS FOR REVIEW. QUESTIONS FOR REVIEW— SETS lY. AND Y. REMARKS.— PAGE 78. I. What are the peculiar characteristics of Set IV ? 2. What advantage does the Day-Book in Joarnal onn have over the Historical Day-Book ? ?. What objection can be urged against it ? 4. What is meant by ' Merchandise Companies ?" 5. In what particulars does this species of copartnership differ from general co partnerships ? 6. Wherein do the two methods of keeping Mdse. Co. accounts, as shown in this set differ 1 7. What is the principle recognized in the Jirst method ? 8. What in the xeccmd method ? 9. Give an illus- tration of each. 10. By the first method, when more than two parties are interested, what entry should the ccnitignee make on receipt of the property to be sold on joint % ? 11. What the consignor upon shipping the property? 12. What the other parties? 13. By the second method when three or more parties are inter- ested, what entry Mrill the coiutignee make on receiving property to be sold on joint % ? 14. What the con- tignor? 16. What the other parties? 16. Is there any difference in the final result by these separate methods? 17. When is the consignee considered responsible by the first method? 18. When, by the seC' end ? 19. Which method is absolutely correct? 20. What advantage has the other? 21. Are Mdse. Co. %'t to be classified as Real or Repref,entative ( 22. How may they be made Real f 23. How Representative • 24. What different method of closing the Ledger is shown in Set IV ? 25. Is there any necessity for • Balance account ? 26. How can its place be filled ? 27. What is the usual entry in bringing down balancA« of resources and liabilities ? 28. What is the advantage of using auxiliary books ? 29. Can special bool<* of entry be so used as to dispense with the Journal ? BALANCE SHEETS, AND AUXILIARIES.— PAGES 101 AND 104. 80. Explain the method of ruling the Balance Sheet. 31. What advantages has this form over any other in use ? 32. What objection may be urged against a multiplicity of auxiliary books ? 33. How is this ob jection removed in large establishments ? 84. What are the essential points in a good business letter ? 8* Can a sufiScient knowledge of business correspondence be learnt from models ? REMARKS ON SET V.— PAGE 128. 86. What epecies ot onsiness is represented by this set ? 87. What is its peculiar feature ? 38. Has this method any advantages over that of consecutive entries, hitherto exhibited in this work ? 89. Wherein do such advantages consist ? 40. What difficulty lies in the way of using the various books of original en- tries as principal books, from which to post or journalize ? 41. What should the Cash-Book show ? 42. How Is it made to show all receipts and disbursements ? 43. What will the difference between the two sides of the Cash-Book represent ? 44. When cash is debited on the Cash-Book, what is credited ? 46. Is every entry made oi either side of the Cash-Book really a double entry ? 46. What would be a proper caption for the debit side of the Cash-Book ? 47. What for the credit side ? 48. What credits are shown on the debit side of the Cash-Book ? 49. What debits on the credit side ? 60. Does the same principle hold with reference to the Sales Book and Invoice Books? 61. Will you now state the difficulty likely to occur in transactions required to be entered in two of these books ? 62. If the peculiar rights of each book is respected, will it be proper to post cash from the Sales or Invoice Book, or merchandise from the Cash-Book ? 63. What would be the effect of such posting ? 64. How many methods are there of avoiding this ctfficulty ? 66. What is the first ? 66. What the second ? 67. Which of these two methods is preferable ? 68. Which ia adopted in this Set ? 69. What does the Inventory Book in this Set contain, and how is it used ? 60. What doe« the Domestic Invoice Book contain ? 61. What entries are passed to the Ledger from this book ? 62. What does the Foreign Invoice Book contain ? 63. The Sales Book ? 64. With what will the total credit of Mer- chandise account for the month agree ? 66. Will you explain the characteristics and use of the Cash-Book T 66. Are all the debits and credits appearing on the Cash-Book posted ? 67. What amounts are entered in the " Sxmdries" column ? 68. How are these amounts posted ? 69. What does the check-mark, opposite these amounts denote ? 70. What would be written instead of the check-marks were the amounts posted hreetly from the Cash-Book ? 71. Can *.he Bill Book be used to advantage as a principal book T 149 SINGLE ENTRY CHANGED TO DOUBLE ENTRY, WITH AMPLE ILLUSTRATIONS AND EXPLANATIONS, EMBRAOINO TWO DISTINCT SETS OF BOOKS BY SINGLE ENTRY, ONX KBPRBSBNTINa THK BUSIXBSS OF A RETAIL MERCHANT ASD THE OTHER THAT 01 A BUILDER, BOTH 07 WHICH ABE CHANGED TO DOUBLE ENTRY, AND THE BUSINESS CONTINUED. ■ THE LA nEB BSr A DISSOI'TTION OF OOPARTNEUSinP TAKES PIAOE, AND THE STUDENT IS REQUIREB TO WRITE ^ ORIGINAL TRANSACTIONS TO COMPLETE THE SX^ CHANGING SINGLE, TO DOUBLE ENTRY. CHANGING SINGLE, TO DOUBLE ENTRY. Wb have, so far, omitted any special instruction in Single Entry Book-keeping for tn€ reasons, first, that we desired not to distract the mind from the mo^e important consid- erations bearing upon the science of Accounts, and secondly, that we deemed it much more easy to explain the characteristic features of Single Entry, to one thoroughly familiar wilh the principles of Double Entry. We have distinguished Double Entry Book-keeping as the " science of Accounts," becaus** ts theory rests on scientific principles, and its work is susceptible of scientific analysis. Single Entry, although, by no means, devoid of excellences as a system, cannot properly be called a science. It is, however, the beffimiing of a science ; bearing about the same relation to Double Entry that the three terms of a compound ratio do to the proportion fully expressed. We are not among the number who can see no mei'it in a system that does not square in all respects with our notions of symmetry and perfectness ; and we are, therefore, quite ready to accord to Single Entry Book-keeping, all the merits it may possess. But the chief difficulty in the matter is to decide upon the fact and extent of Single Entry ; and this difficult) becomes the more intense the more we seek its solution by any standard afforded in actual business. While all scientific accountants by Double Entry must agree as to the necessity of equal debits and credits — no matter through what forms expressed, Single Entry account- ants differ m this regard, according to the amount of light they may have, or the condition of the precedents which they follow. Thus, while some would represent on the Ledger only accounts with individuals, others who have had the ingenuity to concoct, or the good sense to observe, find an advantage in dealing in the same manner with the other various kinds of resources and liabilities. This is, sometimes, carried so far by intelligent accountants that, although without any suspicion on their part, their books will be found to contain nearly all the requisites of Double Entry. It is from this fact that we find it difficult adequately to define Single Entry. The term " Single Entry," as distinct from " Double Entry," has reference more particu- larly to the fact, that for every separate Day Book entry but one posting is made to the Ledger ; but to what extent these single Day Book entries shall be carried, or how much real information contain, has never yet been decided by authors, teachers, or business men. It is usually understood, however, that the difference in the two systems consists mainly in the fact that while the Single Entry Ledger contains only accounts with persons. Double Entry deals also, and in like manner, with property and causes. We have shown in the previous lectures that Double Entry Book-keeping, or the " Science of Accounts," comprises a perfect and continual record of resources and liabilities ; and we may now say, contradistinctively, that Single Entry comprises an imperfect record of resources and liabilities ; or, rather, a record of only a portion of them. Whenever thit* deficiency is supplied the requisitions of Double Entry are met. Therefore, To CONVERT Single, to Double Entry Books, open such additional accounts in the Ledger as are necessary to exhibit the entire resources and liabilities of the concern, II accounts have been previously opened with the partners, or an account with Stock, an the case may be, representing investments and sums withdrawn, it will, of course, be necessary first to carry the gain or loss of the business to those accounts, as a perfect record of resources and liabilities cannot otherwise be made. The method of ascertaining such gain or losu wll' be shown m the succeeding statement. 152 CHANGING SINGLE, TO DOUBLE ENTRY. It will thus be seen that Double Entry is but a continuation of Single Entry ; traveling with it hand in hand, as far as it goes, but carrying out its principles to their full symmetry and perfection. Those who array formal objections against the practice of Double Entry, on account of its intricacy, its additional labor, or its departure in any sense, from the recognized principles of debits and credits as practised in Single Entry, evidently do not know of vhat they spcAk. In changing a set of books from Single to Double Entry, it is not necessary to disturb any account already opened in the Ledger, nor to keep any such account differently thereafler. This fact will be clearly shown in the illustrations given. Li the exercises which follow, we have, first, a set of Single Entry Books, comprising a- tash B^ok, Da}- Book, and Ledger. The Cash Book is for the same purpose, and kept some- what upon the same principle as the Double Entry Cash Book, the only difference being it (Sie/orm of recording entries. As we neither journalize nor post from the Single Entry Cash Book, it is not ntcessary to specify Ledger titles, as in Double Entry ; the object of the Single Entry Cash Book bemg simply to complete the record of transjictions omitted in the Day Book, and to keep the necessary check upon receipts and disbursements of cash. It is also customary, in connection with Single Entry Books, to keep a Bill Book, for the purpv/se of recording Bills Receivable and Bills Payable. If, in addition to these, we should keep an Invoice Book and a Sales Book, either separate or together, for the purpose of recording purchases and sales of merchandise, we should embrace nearly all the requisites of Double Entry ; the chief difference being that instead of showing the entire result upon the Ledger, we divide the honor among these various auxiliaries. In the illustrations given we have shown first, a Single Entry Ledger, containing only personal accounts, and next, the additional accounts necessary to constitute a Double jEntry Ledger. In the student's manuscript these two parts will, of course, be united, forming together a Double Entry Ledger, fulfilling the requisites of equal debits and credits, and, consequently, equal resources and liabilities. The intervening statement preparatory to changingjshould be closely examined, and thoroughly understood. The memoranda of transactions following, are intended, of course, to be regularly written up and posted to the Ledger as changed ; and the general results exhibited according to the prmciples already laid down. To one who fully appreciates the advantages of Double Entry, no argument nor illustra- tion will be necessary to enforce its entire superiority over any other system, notwithstanding the crude notions sometimes expressed by those whose very position should render ignorance on so vital a point, inexcusable ; but it should, nevertheless, be the aim of every intelligent accountant to place himself beyond the pale of prejudice, and let him not insist, because he fcdteems his own way best, that there can be no merit in any other. It is but natural that men who have, for a lifetime been familiar with a certain routine of transactions, expressed through a certain medium, should become unalterably attached to both, and should look with jealousy upon any thing savoring of innovation. It is the duty of the accountant, who acts simply as such, to humor prejudices of this kind, rather than abuse ihem, and thus show his own superiority, by making even inadequate forms convey more substantial ani extended information than their friends and advocates have claimed for them. The chief advantages of Double, over Single Entry, consist, first, in the security afforded ■yj the Trial Balance test and next, in designating the particular channels through which gains and losses come. The fact of gains and losses, and the exact amount of either can be sis well ascertained by Single Eitry, provid^-d we have the means of knowing that the work is correct. « u 158 1860. CASH BOOK— SINGLE ENTRY. IReoeipts, Jan, 9 10 12 13 15 15 16 16 17 20 22 23 23 25 25 27 27 30 31 James Mason's Investment Kobert "Walker's Investment John Simmons, — Coat, $20 ; Pants, $9.50 ; Vest, $7 . . Joseph Kinsey, on ^g Miscellaneous Sales, per tickets W, H. Beebe,— Overcoat, $35; Vest, $7.50; Cravat, $1.50 Miscellaneous Sales, per tickets John Mason, Invoice ready-made Clothing ..... Balance on hand . Robert Hall, — 6 yards blue Broadcloth, @ $5 ... Wm. H. Joeckel, — Business Suit Bill of Goods ordered by P. T. Barnum 1 doz. Hdkfs. $3 ; 3 doz. Cravats, $30 ; 2 doz. Collars, A. B. Butts, — Dress Suit Miscellaneous Sales, this week, per tickets .... Balance on hand Bill of Goods to P. Evans, Cincinnati 3 doz. Cravats, $40; 5 doz. standing Collars, $13.50 . Assortment ready-made Clothing, — J. Allen, Pittsburg Miscellaneous Sales for the week, per tickets . . . . Balance on hand 2 doz. Cravats, $30 ; 6 Vest patterns, $35 . . . 1 pair Pants, $9 ; 1 dress Coat, $25 ; 1 Cravat, $1.50 Bill of ready-made Qothing— C. S. Sill, Troy . . 6 doz. Hdkfs, $20 ; 8 doz. French Yoke Shirts, $170 Ira Packard, — Dress Suit Miscellaneous Sales, this week, per tickets . . . Balance on hand 3000 1000 36 15 58 44 39 175 4368 4156 30 23 350 38 40 450 5087 5003 375 53 500 378 6311 6175 65 35 175 190 36 322 6999 6834 154 1860. CASH BOOK,— SINGLE ENTRY. 13 isTDTirsements. Jan 3 I Stationery, |10 ; Painting and Cleaning, $15 Seamstress's wages, 127 ; Clerk hire, $10 John Jones, on % Balance on hand 13 14 14 19 20 21 21 25 80 80 30 Sundry expenses, per Expense Book . . Seamstress's wages, $50 ; Clerk's hire, $18 Salanct on hand Sundry expenses, per Expense Book . . Seamstress's wages, $75; Clerk hire, $18 Office Desk and Chair Balance on hand Sundry expenses, per Expense Book Seamstress's wages and Clerk hire . Cutter's wages for the month . . Balance on hand . .... lOOS 5087 12 93 30 ^iT 15 75 76 «tt4 tf999 38 50 «8 ~08 Yl 7.^ 156 SINGLE ENTRY DAY BOOK PHILADELPHIA, JAN. 1, I860. James Mason and Robert Walker unite in copartnership in a Gentlemen's Furnishing establishment. They invest equally, and share equally in gains ai.d losses. James Mason, Cr. By Cash invested $3000 " Merchandise, per Inventory . . 4500 ** Sundry Notes, per B. B. . . 750 James Mason, Dr. To Balance due John Jones Robert Walker, Cr. By Cash invested flOOO " Store and Fixtures 6750 John Jones, Cr. By amount owing him by J. Mason 2 William Patterson, Dr. To 1 Pair Doeskin Pants I 9 " 1 Blue Broadcloth Coat 22 " 1 Figured Satin Vest 7 50 " 12 Pocket Handkerchiefs, @ 50 c 6 3 Joseph Kinsey, Dr. To 1 doz. Fancy Neckties 112 " 1 ^ doz. Byron Collars, @ $3 4 50 " 6 Vest Patterns, assorted 35 " 8 yds. Farmer's Satin 6 " 3 doz. Pairs Gent's Hose 9 Contra, Cr. By Cash on ^ 4 — James M. Dooley, Dr To 1 doz. Fine Shirts $24 " 3 « Lamb's Wool Undershirts, @ $15 ... 45 "3 " Pairs Flannel Drawers, @ $15 45 5 Sumner Packard, Dr. To 3 yds. Fine French Broadcloth, @ $5 $15 *' 12 " English Cassimere, @ $2 ...... . 24 . _ 7 John Jones, Dr. Tc Cash Paid on % 156 8250 500 7750 500 44 i»(l 114 39 l&O *>. % % » SINGLE ENTRY DAY BOOK PHILADELPHIA, JAN. 9, I860. Jdbez Dunham, Dr. To Wedding Suit, per contract 10 James M. Dooley, Cr. By 10 Tons Coal for use of the store @ $5 ^ 12 Robert S. ITayward, Dr. To 1 Frock Overcoat $30 " 1 Dress Coat 25 " 1 Pair French Cassimere Pants 10 14 ZIIZI Erastus'YounfT, Dr. To Making Dress Coat .19 « " Vest 3 " Repairing Coat 2 16 Robert S. Hayward, Cr. By his Note @ 30 days to Balance % 17 _ David T. Fuller, Dr. To 1 Frock Coat 130 « 1 Vest 5 50 " 1 Overcoat for Master Frank 12 18 Charles Claghorn, . Dr. To 6 Shirts, (French Yoke), @ 12.50 $15 " 10 Pairs Socks, @ 25 cts • 2 50 " Drawers and Undershirts, 2 each, $1. 25 5 20 ZZZZ Henry Dwight, Dr. To Frock and Pants for Master Silas 21 Schuyler Corbit, Dr. To 1 Dress Coat 123 " 2 Neck Ties 3 < " 6 Pocket Har a Kerchiefs 1 50 25 Wilson G. Hunt & Co. Cr. By Bill of Cloths, per Invoice 80 Henry Shaft, Dr. To 1 Pair Pants I » " 1 Dress Coat 25 59 50 65 14 65 47 .^0 22 10 50 27 575 84 50 167 LEDGER— SINGLE ENTRY. ^^' James Xs/lasozi. (St. I860 Jan. To Balance Due J. J. 600 1860 Jan. By InTestment " -J net gain 82B0 681 61 Wt* Robert "W^alker. «rr. I860 Jan, By Investment " -J net gain 1160 681 63 SDr* cTolm (Jones. Cr. I860 Jan. To Cash 1 160 1860 By Balance due him 600 SDr. "Wm. : Patterson. €t. I860 Jan. i To Snndries 1 44 so Shr* Joseph. Kinsey. (860 I860* Jan. 8 To Sundries 1 «6 so Jan. 8 By Cash 0 22 , 50 . Charles Claghom 22 50 10 . Henry Dwight . . 10 1 27 50 575 . Schuyler Corbit . Wilson G. Hunt . 27 50 575 84 , . Henry Shall . . 34 815 . Bills Receivable 815 6834 ' rs . Cash 6834 73 2975 . Merchandise . . 2975 615a_ J3 . Store and Fixtures , £750 17788 ! 17788 23 18503 5 1 18503 iw The books are now to be continued in Double Entry, from the following transactions. V 161 HISTORICAL DAY BOOK— DOUBLE EJfTRY. PHILADELPHIA, FEBRUARY 1, I860. Scld Robert Milburn for Cash, 1 doz. Suspenders $ 4 50. 4 " Cravats @ $15 ... 60 3^ " French Yoke Shirts (fine) . @ $30 ... 105 10 " Standing Collars .... @ $1 80 ... 18 — - .. 3 IZIIZ Received Cash for rent of upper story, one month ^aid Robert Walker Cash on private % 3, _ Accepted John Jones's draft on us @ 30 days, favor A. B. Butts . . . 6 Bought of Dunham Liabilities. ^-™— — Bills Payable $1050.00 James Mason, Investment $8431.61 " i net loss 1871.25 " Present Interest . . 6560.36 Robert Walker, Investment 8431.62 " Amount drawn 139.00 • i net loss 1871.25 2010.25 * Present Interest ', | ', ', 6421.37 14031.73 164 '^ ~" EXEECISES FOK THE LEAKNER. EXERCISES FOR THE LEARNER. FIFTH SERIEa Thb following memoranda of transactions will serve as material for a Set of Single Entry Books, which the student is requested to write up. Let him record the receipts and disbunwv- tnents of cash in the Cash Book, adopting the form used in the previous Set ; also, rule up a Bill Book, after the form on pages 54 and 55, in which enter the Bills, Receivable and Paya- ble. Should he choose, in addition, to keep a Sales Book and an Invoice Book, in which tc record receipts and sales of merchandise, it will much facilitate the labor of collecting resource* preparatory to deciding upon the gain or loss in business. We have here an important change in the business, occurring at the end of the first month. One of the partners retires from the concern, his interest having been purchased by the remaining partner, who continues the busi- ness in the same books. This is a most important matter for the student to understand, both because of involving in itself principles having a general application to the science, and for the reason that such events in actual business are of the most frequent occurrence. The first thing to be considered in buying or selling the interest of a partner in business i« to know the exact pecuniary amount of that interest, or how much of the net resources of th« concern belong to him. His prospective interest, or the " good will" of the concern, is an afte' and separate consideration. The interest which any sole or partial proprietor has in a con cern is equal to his net investment, plus his share of the gain, or minus his share of the loss. Consequently, if he has already been credited with his net investment, it is only necessary to ascertain his share in the gain or loss, which, carried to the credit or debit side of his account, as the case may be, will make that account express his real interest in the business. This principle will, of course, need no enforcement here, as it has already been so frequently ap- plied in its various bearings. The method of ascertaining gains and losses, where books are kept by Single Entry, is neither so direct nor satisfactory as the process by Double Entry, but it can be done, nevertheless, with certainty and exactness. That the student may learn the real diflerence in the two systems, he is requested to write up the following series, first in Single, and next in Double Entry form. This process will afford a more appreciable distinc- tion between the two systems than could be otherwise obtained. Memoranda— Partnership Books. Buffah^ Nov. 1, 1859. — W. P. Spencer and E. R. Felton unite in copartnership for the purpose of conducting the business of Building. Each to receive interest on his average in- vestment, and the gain or loss to be divided as follows : W. P. Spencer, ^\ E. R. Felton, ^ W.. P. Spencer Invests : Cash deposited m N. Y. and Erie Bank, $5000 ;* Bills Receivable as follows : Note of A M. Clapp's, favor of J. C. Bryant, dated July 1, @ 6 mo's, with interest @ 7% from date^ 1500; Wm. T. Bush's accepted draft, dra\vn by H. Newell, Nov. 1, 1859, @ 90 d's, for $1500 ;t Personal accounts, viz.: Robert Vail, $175; Henry Gray, $280; J. Pinner, $300; Cash, $259.58. * If it is deemed proper to keep a Bank account in the Ledger, it will, of course, be subject to the same condi- tions as any personal account ; for such it is. + In determining the exact investment, it is necessary to reckon these notes at their real value; hence, Ct« 165 EXERCISES FOK THE LEARNER. E. R. Felton Invest8: Cash, $150C ; Tools, Implements and Materials, $1000; Unfinished Contract with Smitn and Sons — ^present value, $5000.* 2d. Received from Smith & Sons, cash on %, 1750; Deposited the same in N. Y. & R Bank. 3d. Paid laborers cash as per Receipt Book, $375 ; Paid petty expenses, as per Ex pense Book, $10.75. 4th. Bo't horse and dray for use of business, for which gave check on N. Y. and K. Bank, $250 ; Contracted with A. H. Tracy to build for him on Delaware Street, a brick residence; amount of contract, $15,000. Received cash, in advance, as pet agreement, $5000. Deposited the same in Bank.f 5th. Paid plumber's bill on Smith «fc Sons' house, per check, $375 ; Paid masons and laborers on Smith & Sons' house, per check, $150. 6th. Finished small job for J. C. Gansevoort, on South Division Street, for which he owes us $540.64. 7th. Received cash of J. C. Gansevoort on account, $300. 9th. Entered into contract with Millard Fillmore, to build for him a cottage on Niagara Street, for $9000 ; Received cash on contract, $1000. 10th. Paid cash to C. Kohler for 100 M. pressed brick, @ $11 per M. ; Bo't of Seth Pierce, Lockport, on %, 20 bbls. cement, @ $1.50. 12th. Paid Dean Richmond's draft on W. P. Spencer, per check, $500 ; Paid carpenter's bill on Smith & Sons' house, per check, $1500. 13th. Finished Smith & Sons' contract, and delivered there the keys of the house. Rendered bill for the same, as per contract, $7500, which was ac cepted.| 15th. Paid laborers and masons cash, as per Receipt Book, $475 ; Paid cash foi sundry expenses, as per Expense Book, $25. 18th. Received of Smith ds Sons, note @ 60 days, to balance %, $5750. 20th. Received cash for small jobs this week, $400. 21st. Re ceived cash of J. Pinner on %, $150; also, of Henry Gray, in full of %, $280. 22d. Paid laborers, per Receipt Book, cash, $500 ; Paid sundry expenses in cash, as per Cash Book, $35. 25th. Paid E. R. Felton, cash, on %, $500. 25th. Finished job of repairing outhouse for Jacob Van Brunt, for which he owes us, as per bill of items, $175. 28th. Paid cash to laborers in full to date, $378.50. 30th. Paid office rent in cash, $50 ; Paid Book-keeper to date, per check, $125. former ($500) haviug already been on interest 4 months, is worth its face and the interest to date; while the latter ($1500), being drawn without interest, is worth its face, less the current rate of interest for 90 days — the date of ita maturity. (We shall, in this case, assume the legal rate of interest allowed by the State to be the current rate, which is Ifo-) Therefore, in giving Mr. Spencer credit for his investment, we will estimate the value of the first note at its face, '^500,plus the interest on $500 for 4 mo's, @ Ifo $11.67, making in all $511.67 j and the second, at its face, $1500, mlniut the interest on $1500 for 90 days, @ 7%, $26.25, making $1473.75. In the Single Entry Set it will be necessary only to credit Mr. Spencer with these real values, and enter the notes in the Bill Book. In Double Entry it will be proper also to open accounts with Interest Receivable and Interest Payable, representing the two amounts, which should be arranged under those titles. * It is customary, in business of this kind, to enter into written contract with the parties for whom work is to be performed, and either receive pay by regularly fixed instalments, or at the completion of the contract. In all Buch cases, it would be eminently proper to keep a book containing a transcript of such agreements, and a separate account with each job. This is often done, even where the books are kept by Single Entry. The estimated value of this " Unfinished Contract" is, of course, based upon the actual labor performed, and not paid for, and the approximate gain thus far realized. The anticipated gain in the farther completion of the work should, of right, be shared by the partners, the same as gains accruing from new contracts. t It would not, of course, be proper to charge Mr. Tracy, directly, with the amount of this contract, as th« •rorK is not yet completed. We should, however, credit him on account for the $5000 advanced. X Smith & Sons now owe us $7500, less what they have paid on ^, and with which they have already be«« sredited. It is therefore proper to charge them this amount. 166 EXEECISES FOR THE LEARNEK. Dissolution of Copartnership. The copartnership heretofore existing between W. P. Spencer and E. R. Felton is thii day dissolved by mutual consent, Mr. Spencer retiring from the firm. The conditions of the dissolution are, that the retiring partner shall receive for his interest, (as shown by his account after being credited with his share of the gain,) one-half cash, and one-half note, payable in si] months, with interest from date. The Resources and Liabilities of the Concern at this time are as follows : Resources. Liabilities. Cash on hand, per C. B. . . Balance in Bank Notes on hand Interest due on same .... Balance due on personal ac- counts Horse and Dray Tools and Implements . . . Valuation of unfinished con- tracts 440 8850 7750 14 740 250 1000 3500 22545 33 58 64 55 Balance due on personal ac- counts Interest for unexpired time on Bush's acceptance . 17.50 Do. on Smith & Sons' note 53.67 W. P. Spencer, net in- vestment . . 7500 Int. on same . 44.92f E. R. Felton, net inv. $7000 Lit. on same . 43.26 Total net gain .... W. P. Spencer 1% . 1113.72 E. R. Felton -^ . 742.48 From the above schedule we are enabled to arrive at the exact amount of Mr. Spenccr'a present interest in the concern, which is the interest to be purchased. The partners should now be credited each with the interest on his average capital, and also his share of the gain. When this is done, their individual accounts will show their separate interests in the concern. The business will now be continued, in the same books, under the sole proprietorship Oi Mr. Felton. * It ajaj not be strictly true that the concern owes this amount of interest; and yet, should we desire to get the two notes cashed, or to receive their net value in any other commodity, we should be obliged to abate thus much from their face. In other words, we have estimated the notes as resources at more than their present value, (for vhe purpose of expressing the value written upon them,) and we must now offset this excess of resources by a cor- lesponling liability. The same effect could have been wrought by reckoning the notes at their real value. The present form would be essential in a statement drawn from a Double Entry Ledger, where notes, either receivable or payable, are always reckoned at their written value. + According to the partnershi)> contract, each partner is to receive interest on his "average investro «nt." As the method of ascertaining the average capital is more fully explained in its appropriate place, we shall only indi- »ate, in this connection, that the most simple and direct method of obtaining this result is to reckon interest on all sums invested from the date of investment to the date of settlement, from which deduct the interest on all sums withdrawn from the date of withdrawal to that of settlement The difference will be the interest on the average Investment. 167 EXEKClfeES FOK THE LEAKNEK. Memoranda — Individual Books. December \, 1859. — E. R. Felton has this day purchased the interest of his former partner W. P. Spencer, in the concern of " Spencer and Felton," and proposes to continue the businesi in his own name. Paid for the same, check on N. Y. & E. Bank, $4329.32 ; Note @ 6 mo's, with interest from date, $4329.32. 2d. Received cash in full for prmcipal and interest on A. M. Clapp's Note, due Jan. 1, 1860; Note, $500; Interest to date, $14.58. 3d. Paid cash for tinman's bill, for roof and leaders on Mr. Fillmore's cottage, $150 ; Paid Charles Ely's bill in cash, for sills and lintels for A. H. Tracy's cellar, $50. 5th. Paid workmen to date in cash, $438.50. 6th. Completed job for S. G. Haven, as per bill of items, for which he owea $430. 7th. Paid cash for ton of hay, $20 ; and for 50 bushels oats, @ 75c., $37.50. 9th. Bo't of Jacob Van Brunt, on %, 10,000 feet pine lumber, @ 15c., $1500. 10th. Rec'd cash for job of mason- work, done for Peter Greiner, $125. 12th. Paid workmen to date, per check, $1475. 15th. Finished job of mason- work for Urial Driggs, Tonawanda, for which he owes $275. 20th. Completed contract with Millard Fillmore, and rendered him bill for the same, $9000. 22d. Paid laborers' wages, per check, to date, $1450. 23d. Passed our note, @ 60 d's, to Merritt Crandell, for bill of Lumber to date, $3000. 25th. Received casl< of Urial Driggs, in full of %, $275. 26th. Received cash of J. C. Gansevoort, in full of % $240.04. 27th. Paid workmen in full to date, per check, $563. 30th. Paid sundry expense* m cash, as per Expense Book, $175. Changing to Double Entry. Mr. Felton now proposes to change his books to Double Entry, preparatory to which h* makes the following statement of the condition of his business :* Resources. JLiabilities. Cash on hand, per C. B. Balance in Bank . . . Tools and Implements . . Notes on hand .... Due on personal accounts Horse and Dray . . . Value of unfinished contracts 724 1032 1000 7250 8755 250 4000 23012 55 -23 Due on personal accounts . " notes E. R. Felton, net investment " net gain . . n\ r , ;i 6355 , 11 7329 . '} 7785 1542 ^3UI2 32 74 17 "23 The student is requested to enter up these accounts in the Ledger, according to the exam- ples given in the previous Set, and to continue -the business in Double Entry form, for one month, originating his own transactions, and closing his Ledger at the end of the month, according to the principles of Double Entry. • It will be evident, from these frequent statements, that just as often as it is necessary, for any purpose, to enow ths exact condition of the business, the account or accounts representing the capital— usually called Stock Account, or Partners' Accounts — must be made to agree with the difference between the absolute resources of the concern and its outside liabilities. In Double Entry Books this is done by carrying to these accounts the result of the Representative accounts, which is the net gain or loss. As there are no such accounts in Single Entry, the same object is attained by taking the difference between the capital at commencing and at closing, which must, oi course, be the n€t gain or loss. Any statement showing resources and liabilities will afford all the necessary mat* rial for Double Entry Books, or for any purposes of negotiation where partners' interests are concerned. 168 FARM ACCOUNTS: mOLUDrNG PRACTICAL FORM OF JOURNAL, ▲HD OTHER NEW FEATURES FARM ACCOUNTS. FARM ACCOUNTS. In the exercises which follow, we have sought to illustrate, briefly, the business of fariLiiig it is, of course, impossible, in so short a space, to give the daily routine of what might be ex pected to occur in connection with this business ; but we have endeavored to make each record as much as possible the representative of a class, and thus, without unnecessary repetition, to indicate and enforce in this department of industry the principles which we have found applio- ible generally to business transactions. In certain essential particulars all departments of business assimilate ; and any peculiaritie which may exist will be found to depend, not upon a change of the principles, nor a difference in the application of those principles, but in the forms and methods of expression growing out of the transactions themselves. The conditions common to all business enterprises may be briefly stated, as follows : 1. Investment. — Capital, of some kind, is essential. It may consist in valuable resources^ such as cash, notes, merchandise, real estate, live stock, personal indebtedness, etc. ; or, in pro- ductive power, such as professional ability, talent, industry, a good name, etc. ; or in both. 2. Peoduction. — The prime object of all business is gain ; or, what is the substantial proof of gain, increase of resources. Something must produce this increase, whether it be financial capital, or enterprise, or both combined. In various kinds of business this producing power is properly represented under distinct titles, usually subdivisions of the general account. For instance, in common mercantile business, the entire gain or loss may be shown in a general '* Merchandise" account, or through a variety of correlative accounts, such as, " Shipment," " Adventure," " Expense," " Loss and Gain,"* and the specific titles of the different kinds of merchandise, such as, " Corn," "Wheat," " Flour," " Cloth," *' Sugar," etc. In a banking busi- ness the most common titles given to producing agents are, " Interest," which shows gains and U'sses accruing from money loaned, and " Exchange," showing similar results in buying and selling uncurrent or premium funds. In a purely commission business, " Commission" account Is. used for this purpose, and in any professional business, " Profession," " Service," or " La- bor," would answer the same ends. In short, it requires no great effort of the imagination to supply these terms, in advance, for any department of business ; and it is only necessary to know the routine of transactions to be able to prescribe, with great accuracy, both appropriate titles and forms. In the business before us we have no transactions which are not easily subjected to the gen eral principles already advanced ; and even the forms, although exceedingly practical, and con- taining the very essence of concentration, need only be examined to be readily and thoroughly understood. One essential point with the farmer is to be able to dispense with all unnecessary books ; n other words, to do as Utile writing as possible. The " Practical" Journal given in this con- ection will, if adopted, secure to him this advantage in an essential degree. This form, usually called the " Six Column Journal," is one of the most practical and comprehensive in use, and is applicable to any kind of business. Its principal feature — that of aflfording special columns for the accounts most used — may be carried to any extent desirable. The result is a vast saving of time in posting, and additional security as to the correctness of the work. The "* Six-column Journal" is extensively used in retail dry goods establishments. The subdivision of the " Farm" account, as shown in this connection, is also a feature of Bome importance, and may be adopted or not, at pleasure. * See concluding remarks on page SO. 170 OASn MEMORAl^DUM BOOK Cash Memorandum Book. The advantages of a Cash Book in business cannot be overrated ; and, to a thorough busi. nero man, any argument in favor of its use would be superfluous. It is the great conservator of Finance, and is alike essential to the merchant, the mechanic, the farmer, the professional man, and the man of leisure. It not only serves as a check on extravagant expenditures, but, from its frequent comparisons with actual results, guards, in an essential degree, against errors and omissions. To those who feel the force of these facts, but find it difficult to reduce the theory to practice through any of the rigid forms in use, we commend the following simpl form as possessing all the necessary qualities of a Cash-Book, besides being so simple an practical that a child may comprehend it. A small pocket memorandum book, such as all sta- tioners keep, is sufficient for this purpose, and the writing may be done either with pencil or ink. It should be carried constantly, that no excuse may exist for omitting the entry of receipts and disbursements of cash, which should always be entered at the time. The balancing Dr.ay be done daily or weekly, as most convenient. In the form below we have exhibited the cash transactions for one month, which is suffi- j»ent tc show the use of the form. Riverdale Fiirm, March 1, 1860. Bec'd. tfar 1 ; Amount on hand 1 Received for 10 lbs. Butter, $2; 10 doz. Eggs, $2 . . . . 5 Paid for Johnny's Boots, |!.3 ; Cap for Harry, 75c . . . . 6 Sold 10 bushels* Wheat, @ $1.50 6 Paid for set of Harrow Teeth, *3 ; Shoeing Horse, $1.50 7 Paid G. F. Wright & Co.'s Grocery Bill 10' Paid hired man for services to date, as per receipt . •15400 lOj Received for 15 bushels Potatoes, @ $1 . . . . . ssJTS ! BaUiiiM on hand 118.25 ! 121 Sold 2 year old Colt to L. S. Bliss, for 13 Paid premium for Insurance on Farm Buildings . . . . 15 Paid Mrs. M. for household expenses 16! Sold C. S. Clark & Co. 20 bushels Oats, @ 75c. . . gsg 25 17 Shoes for Netty, $1.25; Toys for Harry, 50c. . . . 19!25 Balance on hand 289.00 19 Paid for one year's subscription to Hampshire Gazette . . 19 " yearly contribution to Poor Fund, $25 ; Pew Rent, 1 quarter, $5 20 " Dr. Jones for filling Teeth, $5 ; Bridgman & Childs, for Books, $1 23 Sold Hillman &; Graves 10 Sheep, for 26I 00 24 Received for Poultry sent to market syiso Balance on Jiund 228.50 26 Deposited in Holyoke Bank 27 Received for Butter, $4 ; Cheese, $2.50 ; Apples, $3.75 . . 28 Paid for repairing Implements 233 75 31 " Charles Jones for painting House .... . 178.25 Balanc* on hand 55.50 171 120 4 15 15 125 15 20 2 10 326 25 25 12 5 1 30 6 150 3 25 66 326 75 50 50 50 75 50 25 se 25 FARM ACCOUNTS,— HlSTOKr OF TEANSACTIOJSTS. Riverdale Farm, Northampton, March 1, 1860. Ihe following List embraces the real and personal property and debts of William Mitchell, farmer who is sole proprietor of " Riverdale Farm," m the town of Northampton, Mass. Resources."- 75 acres cultivated land, @ $300; 10 do. woods pasture, @ $350; dwelling-house, out- buildings, and improvements, $2500 ; 2 carriage horses, $400 ; 2 work horses, $275 ; 1 colt $100 ; 3 milch cows, $100 ; 1 yoke oxen, $125 ; 10 hogs, $75 ; 30 sheep, $50 ; 2 calves, $5 ; 50 chickens, $10; 6 turkeys, $5; 10 geese, $6; farming \:.tensils, $250; 1 family carriage, $200 • household furniture, $600 ; 200 bushels wheat, $350 ; 500 do. corn, $375 ; 125 do. oats, $110; 10 tons hay, $120; 50 bushels potatoes, $37.50 ; feed, $25; 50 shares Connecticut River R. R. Stock, $5000 ; cash in hand, $120 ; do. deposited in Holyoke Bank, $1200. Liabilities. Mortgage on farm, due in five years, from January 1, 1859, with annual interest, @ 6% $4000 ; interest unpaid to date, on same, $40 ; Due Samuel Hill on %, $75. Bo't of Lewis 11, Bartlett, on %, 1 two-horse wagon, for $75 ; Sold for cash, 10 lbs. butte; 12; 10 doz. eggs, $2. 4 : — ^— Bo't of Jonathan Dawes, 10 head of stock cattle for feeding and grazing, for $650; Pai-^ him check on Holyoke Bank, $300 ; note @ 30 d's for balance. Paid cash for the following articles : Boots for Johnny, $3 ; Cap for Harry, 75o. Sold James Banks for cash, 10 bushels wheat, @ $1.50 per bushel; Paid cash lor set oi harrow teeth, $3 ; Shoeing horse, $1.50, Paid cash for G. F. Wright's grocery bill, $17.50. 10 Paid hired man cash for services to date, as per receipt, $10; Sold for cash, 15 bushels potatoes, @ $1 per bushel. 12 Sold L. S Bliss, Hatfield, 2 year old colt, for $125 3ash. 13 Paid cash for premium for insurance on farm buildings, $12.50. , 15 _ Paid Mrs. Mitchell cash for household expenses, $5. 16 Sold C. S. Clark & Co., for cash, 20 bushels oats, @ 75c. per bushel. 17 Paid cash for shoes and toys fo- children^ $1.75 ; Bo't of S. C. Parsons, on %, | tOB Feni yian guano, for $30. 172 FAKM ACCOUNTS ,— HISTOKT OF TRANSACTIONS. Riverdale Farm, Northampton, March 19, 1860. Paid one year's subscription to Hampshire Gazette, in cash, $1.50 ; Yearly contributiob ^ poor fund, $25 ; Pew rent, 1 quarter, $5. -20 Paic Dr. Jones cash for filling teeth, $5 ; Paid cash to Bridgman & Childs, for books |1 23 Sold Ilillman & Graves, for cash, 10 sheep, @ $2 per head. 24 Received cash for poultry sent to market, $2>. 26 Deposited in Holyoke Bank, cash, $150. - -27 Received cash for butter, cheese, and eggs, $10.25. , 29 Pail E. L. Kingsley, cash, for repairing farm implements, $3.25. — 31 Paid Charles Jones, cash, for painting house, $25. April 1 Keceived cash for marketing, as follows : 25 lbs. butter, @ 25c. ; 10 bush, potatoes, @ $1 _ 13 Paid Theo. Rust, cash, for 1 ton plaster, $8. 25 »*aid cash for winter's school bill, books, &c., $17.50. — 26 Bo't of James Hubbard, on %, 32 bcshels oats for seed, @ 60c. per bushel. 30 Paid hired hands in full to date, $40. May 1 Received cash for dividend on Conn. Riv. R. R. stock, 5% on $5000. 15 Paid cash for 1 new plow, $10 ; For repairing old plow, $3. _ 25 Exchanged horses with E. T. Wood ; Paid difference in cash, $25. - June 1 ' P«d hired hands to date, cash, $55. 15 Bo't for our own use, 1 rosewood piano, for $275 ; Paid for the same, check on FlolyokC Bank, $75 note @ 6 mo's for balance. Paid hired hands to date, $60. July 1 Sold, for cash, 3 bushels cherries, @ $4 per bushel ; 6 do. currants, at $1. 173 FARM ACCOUNTS —HISTORY OF TRANSACTIONS. Biverdale Farm, Northampton, July 10, 1860. Paid cash for groceries, $4.75 ; dress pattern, $8 ; Stoddard & Lincoln's bill foi drj goods $17.50. . ^ 20 Finished cutting and harvesting hay, which has been estimated at 75 tons, worth, on w average, $10 per ton.* 25 ^ Bo't of Henry Claghorn, for Cash, 2 Berkshire pigs, $15. 30 Sold for Citsh, 3 hogs, $25 ; 4 lambs, $10; 2 calves, $4. 31 Paid cash tc nired hands, $37.50. ■— ' ■ Aug. 1 Received cash of Benjamin Claghorn, in full for the rental of 10-acre lot, as per contract, $200. 5 . Received cash for pasturage, to date, $175. 10 Sold Graves Bro's, Florence, 10 tons hay, @ $11 ; received cash, $50; balance on !». 20 Finished threshing grain, and have put in J)ins, as the result, 250 bushels wheat, worth $1.50 per bushel ; 300 do. oats, @ 75c. ; 50 do. rye, @ 60c. . 30 Paid hired hands cash, to date, $50. Sept. 6 Sold for cash, 30 bushels wheat, @ $1.63. 10 Finished harvesting potatoes, the result of which is, that we have in cellar 75 buslieis, worth 75c. per bushel. 15 Sold for cash, 20 bushels potatoes, @ 87^c. 30 Have gathered from orchard, 100 bushels apples, worth 50c. per bushel. Oct. 6 Sold for cash, the following produce : 200 bushels wheat, @ $1.50 ; 300 do. com, @ 7.^ 40 do. potatoes, @ 1 ; 35 do. apples, @ 50c. 10 Paid hired hands to date, cash, $75. 15 ■ Received cash for pasturing 15 head of cattle, $75; 10 horses, $60 • ShouiQ we keej but one general producing account for the farm, this entry could not properly be made la tl e journal, as it would necessitate both a debit and a credit to that one account, inasmuch as there has been nothing disposed of, and, consequently, nothing actually produced. If, however, we desire to keep up the distinctions be- tween the different subdivisions of the general account, as in the Ledger form given, the entry in this case will be: " Pmdace" Dr. to " Real Estate," as each of the subdivisions should show its cost and proceeds, the same as an? general account. 174 FAKM ACCOUNTS— HISTORY OF TRANSACTIONS. Riverdale Farm, Northampton, Oct. 18, 1860. Paid Samuel HUl, jr., cash, in full of %, $75. . 21 Paid cash in full for note, favor Jonathan Dawes, due April 6. Face of note, $3.50 ; Interest io date, $11.37. 25 Sold Thayer & Sergeant, 4 fat cattle, for $350, cash. w_ ' — _ 28 . Sold Alvan N. Claghorn, on %, 5 tons hay, @ $10 per ton. 30 From inventory taken, we are prepared to estimate the amount consumed by family and live stock since March 1, which is as follows: Family Expenses — Mutton, $15 ; pork, $17; poultry, $18 ; eggs and milk, $10; flour, $40; potatoes, $10. Live Stock — Corn, $50; ha^, $75 ; feed, $25 ; oats, $37 ; pasturage, $50. 31 Upon careful estimation, the apportionment of expense, as charged in the " Expense" % ($329,*) should be as follows : To real estate, $164.50 ; live stock, $82.25 ; produce, $82.25. SIX-COLUMN JOURNAL. The peculiar characteristics of the practical Journal here introduced will be immediately undorstood and appreciated. Its advantages may be briefly stated, as follows : First — A vast saving of time and space in posting. Second — Embracing the principles of four books in one, viz. : Cash Book, Invoice Book, Sales Book and Journal.f Third — Showing monthly totals of the principal accounts in the Ledger that the same may be compared year after year. Fourth — Aflbrding an opportunity to post personal accounts immediately, the debits and credits appearing separately in the " Sundries" column. Fifth — Giving additional security of the correctness of the Ledger, there existing no prob ability of omitting debits and credits of the same amount. Want of space will prevent the giving of more than one month's transactions through this form. The student is requested to write up the remainder as given in the memoranda putting the months of April, May, June and July together as one month, and August, Sep tember and October as one. The method of posting from this Journal is extremely simple. The separate items in the "Sundries" column are posted the same as from the common Journal, while the amounts of the " Cash" and " Farm" columns are posted at the close of each month. This idea of special column3 is not original with any modern author, as variously claimed, but has been in use, to a greater or less extent, for a quarter of a century. The principle can be carried to any desirable extent ; and in some jobbing-houses as many as eight special debit and credit columns are used. The form given in this connection is sufficient to indicate the principle. • Paid for services and horseshoeing. t This is the case when the form is used in a general merchandise busi less : in which caae the tpecial coltuno^ riebit and creJit, would be " Cash," and " Mdse. ' 175 I i CO r-T §g S M S O O Ol O) CO J 02 o o o 3 «M cc la ■« « Ph o — o3 w ■• !•& o I S i3 o g ^ « t* 3 es « » © ^ *- -I H ■5" * J3 «& o O « S S ^n ^ ^ 5 o a •: 2 O V3 o O JS *x O O J3 s w o QQ tS^ M o o 02 o w o <»«^ O S fc 3 p § § Ph ^ H lo O ® .® 2 «» o 2 '^ . PS sil t3 o OS r =2 Mh id o 53 ^ O M M H M O 1 o o CQ r-7 © o o w to »— ' ^ O I § s I i o 176 , = ~ ■* . A ss S ^ 1. M Tf nr s 3 g? O C »ft lO s§ QO O -"f t t- l> o MO! 00 i ^ (M ^ 1 • • * • • . • . 1 t • •1- »o to « . . «> • 00 - (g) •l NDRIB8 . . lows : n January 1, mual interest Pi 5 14 :i: w S * ® si • • • ^6 5M . o o S5 •-' 9 02 00 ' ■< a, ^1 ^1 •< o 1 1 Dr. To Liabilities of Mortgage, I five years, wi on same to dat Dr. To of him on % 1 Dr. To 10 lbs. Butter, $2 ; 10 4 Dr. To Qf Jonathan Da part payment SO riftva. 5 Dr. To r Johnny, |3 ; Dr. To aes Banks 10 b o Q K 1 1 d O a «< Amount ir Interest Dun Viim t 151 § 2 1 ' j •-9 1 S <» •» o 2 -s < ORTGAGE IfABLE . Payablb 11,. . To CQ 5 o g^ H !>- OD CO -* -i s OD is5 • § ^o^i" 0) 00 1-9 Hi a m •5 2 1* !^ S: S H o o ^ ■< ^ o ^ ,-< ■•< t> ^ M m Eh H- ^ o J H- Ph :^ 02 W(*< 1 g s P ^ i-t ee - § 1 c* 1— t cc 1 to •A la 1 00 i 1 ^ ^w H^ [ — • 'd 7 r^ CD , H 00 • H r1 •« P5 '■% .(§) (1^ H -4 i • a H -S i-T 1 SB a so pa < \L H GU GQ >> £51 m CO c3 O CD "^1 t < ^ « ; ^1 ^ o O 'O ^1 09 00 o J 1 1 t= c «s 02 02 cl o < ■w 2 1 •o s 2 'I 1 4 n 5 H 5 s '^ • o P^ N w O '3 a; ^ M ^ <1 •^•7 ' "1? i c IfS ^ §' Cv » »« fc- 1 § > 1—1 o «A s « <^ c 5 2 Tt (?* — ift M O o ot f so .A i> r-l 1-1 t^ QfJ CO O CO rj< CO O OO --^ O M OO "-^ »^ 1— ' <* '^ Is CO i ^ ^ S eo t> < ffl 00 K5 . lO on >a '^ o« 9 « iM 04 "• 1^ 1— O « — IC rl rH — e^i-it-i • S; S * |S g a Jl 3 H O ^ r-« "r r2 S S: 3 .s 1-1 III 180 TKIAL BALA.NCE,— IN VENTOKl Trial Balance. p 1 = BaUmett. -, ' 1 ai Fact qf L»ag«r. 33923I 5(i .... Stock 4115 1 38038 58 €750 1 . . . C. R. R. R. Stock , . 5000 ! 250 97& 4000 40 , . . Holyoke Bank . . . Mortgage Payable , . . Interest Payable . 1350 375 4000 40 75 . . L. H. Bartlett 75 200 . . Bills Pavable. 350 550 22^1 25 30 . . Family Expense . . S. C. Parsons . 223 25 30 1075 OS . Cash. . . . 2208 40l 1133 37 50 ' . . A. N. Claghorn 50 31143 05 19 2€ . . Farm . . . . . J. A. Hubbard 34749 70 3606 19 65 20 60 . . Graves Brothers 60 11 37! 70 70 . . Interest. . . . 11 37 48117 B8287 38287 48117 72 72 Inventory. Beal Estate, Livs Stock. 85 acres Land, valued at . . . Dwelling-House and Improvements 4 Horses, $700; 3 cows, $100 . 1 yoke Oxen, 125 ; 5 Hogs, $40 . 12 Sheep, $20 ; 16 Lambs, $18 . 2 IJalves, $20 ; Poultry, $25 . . 10 head Stock Cattle Fixtures and | Farming Utensils Implements, j 1 Family Carriage, $200 ; 1 two-horse Wagon, $75 Household Furniture Produce, 220 bush, 162 " 355 " 50 " 25 « 65 " Wheat Corn . Oats . Rye . Potatoes Apples 67 tons Hay . @ $1.50 75 75 " ,60 " 80 " 50 " 11.00 Conn. River R. R. Stock 26000 2500 Interest due to date on Mortgage Payable, 181 800 165 38 45 750 250 275 800 330 121 266 30 20 32 737 50 25 50 28500 1798 1325 1537 33160 5000 $200 25 25 STATEMENT,— FAKM ACCOUNTS. STATEMENT— FAKM ACCOUNTS. The following form of Statement has the quality of brevity and plainness ; and though less satisfactory in detail than previous forms, it will sufficiently indicate the conditicn of the business on the date of rendering the Trial Balance and Inventory. Conn. River R. R. Stock Holyoke Bank Bills Receivable . Mortgage Payable Interest Payable . L. H. Bartlett . . Bills Payable . . Family Expense . S. C. Parsons . . Cash A. N. Claghom . Farm .... J. A. Hubbard Graves, Brothers . Interest .... NttGain Lot»e$. 160 223 11 1678 2267 25 87 6S 20 Oaint. 250 2017 2267 20 20 Stock, Investment . Net Gain . $33,923 50 . 1872 58 Present Interest . B«»otiree$. 5000 975 350 1075 50 33160 60 40670 03 25 28 LtahlHin. 1 — 4000 200 75 550 SO 19 357P6 08 40670 28 PKACTICAL HINTS FOR FARMERS. 1. — Measuring Grain. By the United States standard, 2150 cubic inches make a bushel. Now, w a cubic foot oontams 1728 cubic inches, a bushel is to a cubic foot as 2150 to 1728; or, for practical purposes, as 4 to 5. TTierefore, to convert cubic feet to bushels, it is necessary oulj to multiply by ^. ExAMPLB. — How much grain will a bin hold which is 10 feet long, 4 feet wide, and 4 feet deep ? Solution. — 10 X 4 X 4=160 cubic feet ICO x |=128, the number of bushels. To measure grain on the Jloor. Make the pile in form of a pyramid or cone, and multiply the area of the base by ono third the height. To find the area of the base, multiply the square of its diameter by th« decimal .7854. 182 PRACTICAL HINTS FOK FARMERS Example. — A conical pile ol" grain is 8 feet in diameter, and 4 feet high, now^ man} bushels does it contain 1 Solution. — The square of 8 is 64 ; and 64 x .7854 x a=83.776, tne number of cubic feet Therefore, 83.776 X f =67.02 bushels. Ansioer. 2. — ^To Ascertain the Quantity of Lumber in a Loo. Multiply the diameter in inches at the small end by one-half the number of inches, and his product by the length of the log in feet, which last product divide by 12. Example. — How many feet of lumber can be made from a log which is 36 inches is diameter and 10 feet long ? Solution.— SQx 18=648; 648x10=6480; 6480-^12=540. Answer. 3. — To Ascertain the Capacity of a Cistern or Well. Multiply the square of the diameter in inches by the decimal .7854, and this produ-st by the depth in inches; divide this product by 231, and the quotient will be the content in gallons. Example. — What is the capacity of a cistern which is 12 feet deep and 6 feet in diameter 1 Solution. — The square of 72, the diameter in inches, is 5184; 5184 x. 7854=4071.51 , 4071.51 X 144=586297.44, the number of cubic inches in the cistern. There are 231 cubic Biches in a gallon, therefore, 586297.44-^-231=2538+, gallons. To reduce the number of gallons to barrels, divide by 31 ^. 4. — To Ascertain the Weight of Cattle by Measurement. Multiply the girth in feet, by the distance from the bone of the tail immediately ov«r the hhider part of the buttock, to the fore part of the shoulder-blade ; and this product by 31, when the animal measures viore than 7 and less than 9 feet in girth ; by 23, when le^ than 7 and more than 5; by 16, when less than 5 and more than 3; and by 11, when less than 3. Example. — What is the weight of an ox whose measurements are as follows; girth, ) feet 5 inches ; length, 5 feet 6 inches 1 Solution.— ^xl■^^AO^^, 40fjx 31 = 1264-1-. Answer. A deduction of one pound in 20 must be made for half-fatted cattle, and also for cows that have had calves. It is understood, of course, that such standard will at best, give only ihe apfroximute weight. 5. — Measuring Land. To find the number of acres of land in a rectangular field, multiply the length by the breadth, and divide the product by 160, if the measurement is made in rods, or by 43560 if made in feet. Example. — How many acres in a field which is 1 00 rods in length, by 75 rods in width 1 Solution.— 100 )(.15=7b00; 7500-J- 160=46^. Answer. To find the contents of a triangular piece of land, having a rectangular comer, multiplj the two shorter sid*^s together, and take one-half the product. 183 QUESTIONS FOK KEVIEW. QUESTIONS FOR REVIEW CHANGING SINGLE TO DOUBLE ENTRY,— PAGE 162. 1 . Why should Double-Entry Book-keeping be distinguished as the " science" of Accounts ? 2. M»j Single Entry be properly called a science? 3. Why not? 4 What relation does Single Entry hustain ta Double Entry ? 5. What is the chief difficulty in defining and treating Single Entry ? 6. In whai particular do Single Entry Book-keepers differ among themselves ? 7. What does the term Single Entry denote ? 8. What is usually understood to be the difference between Single and Double Entry ? 9. What is the rule for converting Single to Double Entry ? 10. If an account has been kept with Stock, or accounts with the part- ners, what must be done with the gain or loss? 11. Do you consider Double Entry more intricate or labo- rious than Single Entry? 12. What, in your opinion are the principal advantages of Double over Single Entry? 13. In changing Single to Double Entry, is it necessary to disturb the accounts already shown on the Single Entry Ledger? 14. What are the usual books in Single Entry? 16. For what purpose, and how is • he Single Entry Cash-Book used? 16. What is the difference between the Single Entry and tlie Double- En^ry Cash-Book? 17. Is it customary to journalize or post the Single Entry Cash-Book? 18. What other books than the Day Book, Cash-Book, and Ledger are used in Single Entry ? 1 9. When all these auxiliaries are kept in Single Entry, how will it differ from Double Entry ? 20. Can the gains and losses in business be ascertained by Single Entry ? 21. How ? FARM ACCOUNTS,— PAGE 170. 22. Upon what Jo the peculiarities of business chiefly depend ? 23. What conditions are common to aU business enterprises? 24. What do you understand by Investment? 25. Can anylijif g properly be called an investment except tangible resources ? 26. Can you explain how professional ability, talent, a good name, etc., may be considered capital ? 27. What is the prime object of business enterprises ? 28. What is the substantial proof of gain ? 29. How is the increase of resources effected ? 80. How is the producing power In business variously represented ? 31. What are the general producing accounts in a mercantile business 32. In a banking business ? 33. In a commission business ? 34. In a professional business ? 35. Is it diffi cult to supply the appropriate terms in any kind of enterprise ? 36. What is the essential point in Farm Books? 37. Can you explain the " Six Column Journal," as used in this set? 38. What are the advantages of a Cash-Book in business ? 39. What is the peculiarity of the Cash-Book used in this connection ? 40. What are the five points of excellence claimed for the practical Journal used on this set? 41. How are the separate items posted from this Journal ? 42. How the amounts of the " F«-m" and " Cash" columns ? 43. Can this form be used in any other kind of business than farming ? 44. When used in mercantile business, what will be the titles to the special columns? 45. Can the number of special columns be increased? 46. What kind of business is peculiarly adapted to special columns ? 47. How many debit and credit colucuia are sometimes used in jobbing houses ? PRACTICAL HINTS FOR FARMERS,— PAGE 182. 4,*^ What rule have you for measuring grain in a bin ? 49. How many cubic inches in a bushel ? 60 Can you measure grain upon tlie floor? 51. How? 52. Give the rule for ascertaining the quantity of lun.ber in a log ? 53. What is the rule for ascertaining the capacity of a well or cistern ? 54. How can yoi gf.t the appioximate weight of cattle by measurement? 55. What is the rule for measuring land? 184 GENERAL INSTRUCTIOI^, EMBRACING A FEW PRACTICAL HINTS ON PRACTICAL SUBJECTS. STOCKS. Ik conuection with this subject, we present exact copies of a few of the different kinds of paper woicb fi^re so cxlensively in the financial world, under the name of Stockx, and shall here, as briefly and distinctly AS possible, treat of the characteristics and relative meritd of this class of commercial values. The public funding system originated in Venice in the 12th century, and was introduced into Florence in the year 1340. In England, the practice of pledging the public wealth for the repayment of loans had its rise in 1672-94, and has become so much a settled policy of the country, that many of her wisest statesmen main- tain that the perpetuity of the government centers in the public debt. We can readily understand how such would be the case were the holders of these pledges citizr ns, and the pledges held in small quantities, and by the various classes of the community ; for the greater pecuniary interest a people may have in their govern- ment, the more ardently will they seek to perpetuate its institutions, and the more jealously watchful will they be of its interests. In England, the term Stoch to applied mainly to government funded debt, such as Consols,* Bank of England Stock.f etc. ; and the term S/iares to the capital, or joint stock of railroad compa- nies, banks, manufactories, etc. In our own country, the term Slockx is used in a more general sense, inclu- ding United States funded loans, State loans, and che stocks, or shares in various corporations, joint-stock ccmpanies, etc. Stocks, in our common acceptation, may properly be divided into two classes, which, for the sake of dia tinction, we will denominate Inter eM Stocks and Dividend Stocks. Jntere.ll Stocks are those calling for a certain fixed percentage on the amount loaned, and are secured either by pledge of the public wealth, or by mortgage on adequate intrinsic value. Of this class are government securities of all kinds, bonds of railroads and other corporations, mortgages on real estate, etc. The only in- fluences which can really affect the value of this class of Stocks are the worth of money, and the character of the securities upon which they rest. Dividend Stocks are those which call for a dividend of the net earnings of certain, enterj^rises, and are se- cured by the net resources and earning capacity of such enterprises. Of this class are the shares in the cap- ital stock of railroads, banks, manufacturing and mining establishments, and other joint-stock corporations. They fluctuate in value according to the pecuniary success and prospects of the business which they repre- sent ; and, a« the intrinsic value of all propertj depends upon its producing power, so the dividends which are declared upon these shares —if the same are known to be from the legitimate earnings of the business — regu- aite, in the greatest degree, their market value. Other influences may force these values out of their proj;** relations to this test, but if left to their legitimate course, like other commodities, the parallel between ear* liigs and commercial value must hold good. Of these two classes of Stocks, the latter only, figures to any great extent in the market lists, from the fact that good securities pledging a regular, unvarying dividend, are not capable of sudden inflation and depletiou, like those which are dependent for their very existence upon a variety of unseen causes, and subject to disaa •ers from financial reverses, bad management, etc. There is, of course, a difl'erence in the value of what w« nave denominated Interest Stocks, not dependent upon the percentage of dividend. Such dift'erence musi of course, be coring, mainly, to the character of the securities For instance, United States Stocks, dividing e % • Consolidated fund of the English Government, bearing 8 ^ interest. t The Bank of England is a part of the government, and, consequently, cannot be classed with private corp4> "Mtions. T 185 GENERAL INSTKUCTIO]^ per annum, always sell at a premium ; while the various grades of railroad bonds, declaring froa Y to 8 % vary from 1 Jo premium to 90 % discount. The reasons for this will appear by a little investigation into th« comparative circumstances. In the case of United States Stocks, the country itself is pledged for the pay ment of principal and interest ; and even should the public property and revenue prove insufficient (which is scarcely to be supposed), there would be no difficulty in obtaining the consent of the people to be taxed Nothing can be more disastrous to the honor of a country than the repudiation of its debts ; and no fair-minded citizen of the United States would willingly permit so foul a stain upon his nation's glory. The same would prove true to a greater or less extent respecting states, counties, municipal corporations, etc., although the history of some of the states, in this regard, is not as creditable as could be desired. In the case of bonds and mortgages on private corporationi, real estate, etc., securities vary with the TO* cess of the enterprises and the value of convertible resources thus mortgaged. In all tliia class of Stocks, the value is regulated by the amount of interest to be paid and the character ol the securities. The rates of United States Stocks rule higher than those of state, county, and municipal Stocka on account of being better known ; and, therefore, more generally available. The true basis of value in Dividend Stocks is, first, the permanent prospects of the association represented, and next, its real net earnings. The law which makes it incumbent upon banks to publish, at certain periods, a sworn statement of their affairs, is eminently calculated to further the interests of the public ; and if one could always be sure that things are called by their right names in these statements, the process of estimating the value of such Stocks would be simple enough. Take an example: On the 19th March, 1859, the net re- ee^'ved profits in the Chemical Bank of New York were $586,176, and the capital stock $300,000. During the succeeding year this bank paid to stockholders a dividend of 12 %, and added to the "reserved profits," $42,056, which is equivalent to 14 % of the capital. The net earnings during the year, therefore, were 26 fe on the capital stock. The question now is: What is stock worth which produces 26 % ? or, what is its value as compared wit*' money ? The first thing to be ascertained, then, is the value of money, which, by reference to street quotations at this time, we find to average about 6^ fo. We have now a simple problem in proper- tion, viz.: ]f one dollar produces 6-J cents, how much will be required to produce, 26 cents f The solution is as follows : 6i : 26 : : 100 : 400. The answer is : One dollar in Chemical Bank Stock is worth four dollars in money ; which is the quoted market value of this Stock. Another example: The Atlantic Bank, on the 19th of March, 1859, had a reserved profit of $14,642, and a capital stock of $400,000. During the year the bank declared a dividend of 7 %, which reduced the reserved profits $8,430, being a little over 2 % on the capital. The net earnings, therefore, of the bank were a little less than 6 % — say 4f. What is the value of the stock ? Solution as before: 6^ : 4f : : 100 : 73. Atlantic Bank Stocks are quoted @ 70c., which varies only slightly from the above result. While it is true that upon a basis of this kind the approximate value of a large portion of the current Stocks can be ascertained, the parallel will not hold good in all cases. For instance, many of the railroads in the country pay regular semi-annual dividends of from 3 to 4 % — or 8 fo per annum — whose Stocks are never quoted at a liigher figure than 80c. The reason for this discrepancy between dividends and market value can exist only in alack of confidence in the management and prospects of the corporations. It is known, in fact, that railroad dividends are often declared without reference to earnings, for the purpose of giving a fictitious value to the Stocks. Of course, when such is the case, money for this purpose has to be borrowed, and must event- ually be paid. So reckless have some railroad companies been in these matters, that the original Stock which, by prudent management and a persistent course of honesty towards the public, might have been kept at a low rate of discount, if not at par, has been run down to zero, carrying with it, of course, all securities baaed upon it. There are various ways of " cooking up" the financial affairs of a large corporation, so that those who have no means of knowing the intrinsic worth of what are called its resources may be easily de- ceived. Nothing is more deceptive than an ingenious array of sober-looking figures. Efforts have been made by the ^'arious State Legislatures to infuse a little leaven of honesty into joint-stock associations by obliging them to make periodical statements to the public, under oath, of their condition ; but such enactments afford no absolute guarantee. It is a difficult matter to legislate men honest ; and corporations are, certainly, no better than men. It would be proper, in this connection, to dwell somewhat at length upon the dishonest influ- ences brought to bear upon Stocks by that class of speculators termed, not inaptly, " Stock Gamblers," but want of space will prevent it. We shall, therefore, close this subject by submitting a few copies of genuine documents : 186 tr. S. R egist ers Bond. No. , pMie ^>^ pUdged to pa,, j^ . 7V«aV. Departmmt RegUter't Qghtk ^!- '^ <2^«i *^^w^^ 4/'**rf/ day* o/ /amuuy arn/ ^^^j/, »** cacn yeat. QyifM / ^M Entered, June 10, 1847. Recorded, June 12, 1847. Signed, Reoisteb U. S. Tekasobt. Railroad Sharea m T3DIiEID d/^date^t <^ i4e 'i^a/u'fa/ ^^oc4o/^/^ DELAWARE, LACKAWANNA & WESTERN RAILROAD COMPANY, tut/n^jfeiaoui o^itu on ma ..SSoom o/ ina ^omAanu m ina ^^ciu of Q/Taw ^u 4 *< § "=c'-5o!- r. C >:•= a" nO bo -. 'J - I = -S rt 2i =* 01 '^ j: O a a^ «) " * =4 RJ O , ?! t^ =«§° c § a. ■ o t. CO J5 V > 5-a 5 Ells- = - « «- -« ^ ^- ^'.H - c =^ -g = 3 C- S O £ _ - ■? g 3 " J >"'5 ^-'g- .. >, g """is ^= ^ -; bt-S IJ S « ^- m o u o 3 o 5 ■; --55 »< •c S to J;_S cg.3, ; E.C _ _ 5 i> -■e "^'^ <^i ° 2 .rS'oS rj g £ — ^ R = ? 5 v '" J5 O ».13 — Wi ■C-3 v JO u, t, 3 s^ o I o If. c ^ ° < ST. c <— n o ^ sL.-'.'H •= i i 1 -r = t u a' 3 «) I ^ o >- ** a> k 0) oj ""Lj '^ aj oj -c «! © fsr JOINT STOCK 15USINESS. JOmX STOCK BUSINESS. The theory of joint stock business differs, in no essential particular, from that of individual or ^artnersliip ooncerns ; the prime object in all being the accumulation of gain through an intelligent application of capita] and talent. The means of joint-stock concerns are usually applied to enterprises requiring large investments, such as the constructing and working of railroads and manufactories, building and running steamships, pur chasing and working mines, establishing and conducting banks, and in the various channels of public enter prise where it is supposed such investments will ;>«//. The capital of a joint-stock concern is divided 'oto certain number of shares, each representing a stated investment, which shares are purchased and held by ihe owners or stockhohkrx, wlio, through appointed agents or directors, conduct the business of the concern. These shares are worth more or less tlian their nominal value, according to the present and prospective condition of the business they represent. If worth tlieir face, they are said to be at par ; if worth more, at a premium ; if less, at a dixcount. Some of the different tests of this value are given in the preceding chapter. The majority of joint-stock associations work under a special or general charter granted by the legislature of the states in which they are located ; and from this cause, and because such cliarters are guarded by wholesome restric tions, they have a kind of importance in the public estimation not shared by private concerns. Especially is this the case with banks, the promissory notes of wliicli are paid and received as cash, and comprise the great medium of commercial transactions. The restrictions which the laws of the different states throw around banking institutions are intended both to protect the public against an abuse of confidence and to encourage the concentration of capital in such legitimate channels as shall administer to the general good. Banks are the acknowledged financial agents of the community. They occupy a ])o3ition between the borrower and the lender, saying to those who have more money than they need. We will find you responsible customers who will pay you for the use of your surplus means ; and to those who are in want of funds for the prosecution of their legitimate business. We will supplj* your necessities at fair rates of remuneration. The bank also affords safe custody for the deposit of the surplus funds of its dealers, attends to the collection of their notes, negotiates exchanges, and, when properly conducted, serves an important end in facilitating financial operations. The special privileges which banks possess are, the issuing of bills payable which circulate as money with- out drawing interest, and the holding of large balances in favor of depositors without paying interest. Both the bills payable and deposits are emjiloyed in discounting paper, upon which interest is charged. The re- strictions under which banks operate constrain them to give ample security for the redemption of their own notes — which are always payable " on demand" — to keep a certain percentage of specie on hand for the ac- commodation of bill-holders and depositors, to abstain from speculations, and to confine their rates of interest within stated bounds. In order the more fully to secure these ends, the banks in most states are required to make periodical statements of their condition to the public. The following form is prescribed by the "Free Banking Law" of the State of New York, and is an exact copy of a "Bank Statement:" QUARTERLY REPORT. bTATEMENT showiug the true condition of the " Niagara River Bank," of Tonawanda, K Y., an Associated Bank, on the morning of Saturday the third day of June, 1854. Resourcet, 1. Loans and Discounts except, to Direc- tors and Hrokers 2 All sums due from Directors of this Bank 4. All sums due fron: Brokers .... 6. Bonds and Mortgages .... . . 7. Stocks 9. Loss ana Expense Account .... 11. Specie 12. Cash Items, (Checks, etc.) .... 13. Bills of Solvent Banks on hand . . . 16. Due from Bank* oc demand .... ToU 85595 13300 199 48971 6(5000 1200 712 627 1103 7731 215440 79 89 25 66 Liabilitiea. 1. Capital 104000 2. Trotits i liegisiered Bank Notes received I from Comptroller and not re- r^turued . 101200 j Less Notes on hand .... 2.5911 I 4. Leaves Keg. Bank Notes in Circulation j|5. Due Treasurer State of Now York . . 1 6- Due Depositors on Demand .... lis. Due Banks on Demand 189 Total JOINT STOCK busi:n'ess. County of Erik, xx : Erastus S. Peosser, President, and Titeron W. Woolson, Cashier of said Bank, being duly sworn, severally depose and say, that they are the President and Cashier as aforesaid, and that the fore^ going is, in all respects, a true statement of the condition of the said Bank, before the transaction of any busi ness, on the morning of the third day of June, 1854, according to the best of their knowledge and belief; that the said Bank is an Associated Bank, and is located in the town of Tonawanda, in the County of Ef ie, where it has a Banking House for the transaction of its business ; and that from the first of June, 1853 ap to the day cf making this report, the business thereof was transacted at such location. E. S. PROSSER, President, T. W. WOOLSON, Caxhier. Subscribed and sworn by both deponents ibis 2l8t day of June, 1854, before me, L. K. HADDOCK, \ CrN-ATi, May 10, 1860. Received of Jacob Strader the following enumerated articles, to be held in trust for him : One Goim Watch (hunting case); one Silver Watch ; two Promissory Notes, each dated January 1, 1860, and signed by Robert McDougal — one for Three Hundred Dollars, due in six months from date, and the other for Five Hun- dred Dollars, due in eight months from date. D. C. Coluns. Rkmabks. — There is absolutely no end to the variety of Receipts ; neither do thej need any special explanation, as each explains itself. The common business way of obtaining a receipt is explained in connection with checks and certificates of deposit. CertificateB of Deposit. $600. Union Bank. Albany, March 1, 1860. David T. Fuller has deposited in this Bank Five Hundred Dollars, payable to Albert H. Tracy <» Dfder, on the return of this Certificate, properly endorsed. (Na 1276.) James A. Tilford, Teller. Remarks. — The above is the usual form of Bank Certificates, and is suflSciently suggestive of their character. The particular convenience of such a document is its adaptation to the purposes of reniittauce. It is the same in effect as a " certified check," the bank being as much bound to redeem it as one of its own notes. It is much safer to remit than a bank-note, as, in case of miscarriage or theft, the payment is stopped, and a duplicate will be issued. It also serves as a receipt, inasmuch as the party in whose favor it is drawn must endorse it before it can be re- deemed. Checks. 1. Payable to " Bearer." flOO. Mercantile College Bank, New York, May 16, 1860. Pay to Joseph Dawjion. or bearer. One Hundred Dollars. £ ' per cent. In Alabama, 8 per cent. In California, 10 per cent. In Louisiana, 5 per cent. In most of the states the law permits a higher than the established rate, in cases of special contract. ~ In reckoning interest, at whatever rate, it is most convenient first to obtain it, for the given time, at 6 per cent., and then add or subtract for the diflference. Particularly is this the case, where 360 days are reckoned to the year ; 6 being an aliquot part both of 360, the number of days in the year, and 12, the number of month-x. There are many processes of reckoning interest, all more or less worthy of thought ; but we shall confine our practice to the one which, under all circumstances, we consider the best. Taking as a basis 360 days to a year, 30 days to a month, and 6 per cent, per annum, we are easily led to the following conclusion: If 12 months produce 6 per cent, 1 month will produce one-twelfth of 6, or one-half of 1 per cent., and two months, 1 per cent. One per cent, of any amount, therefore, is the interest on that amount for 2 months, or 60 days, at the rate of 6 per cent, per annum. One per cent, being the one hundredth part of any amount, is easily obtained by dividing by 100, or, what is the same, cutting off two right-hand figures. Example 1. — Required the interest on $3*760, for 2 months, at 6 per cent, per annnm . Solution: 87 | 60; or |37.60 Having this starting point, the process of obtaining the interest for any given number of months or day* becomes extremely simple. ExAUFJLE 2. — Find the interest on |4675 for 3 months, 15 days, at 6 per cent. Solution: 2)46175 = 2 months. 2)23 Jl 81 375 = 1 month. 6876 = 15 days. 8126 Revabks. — We first find the interest for 2 months by the process already ^ven, which is $46.76. Divid- ing this amount by 2, will give us the interest for 1 month, $23,375 ; and this by 2 will give the interest for one-half a month, or 15 days, $11.6875. By adding these results together, \/e get the grand result, $81.81 +. Should the number of days be no equal part of 60, nor of any other number for which the result is shown, it will be necessary to use such component parts as are equal parts of 60. Thus, if the number of days be 13, we can take 1 and 12, or 3 and 10; 1 being the sixtieth part, 12 the fifth; 3 the twentieth, and 10 the sixth of 60. If the number of days be 18, take 6 and 12, or 3 and 15, and so on. From these remarks and illustrations, we are prepared to submit the following rule for reckoning interest on any given amount for any given time, at 6 per cent, per ancnai.. Rule. — Cut off two figures from the right of dollars in the principal, by a perpendicular line; the result will he the interest for 60 days, the dollars being on the left, and the cents and mills on the right of the line. Multiply this result by one-half the number of months required, to which add, for days, that proporti'^n of the interest for 60 days which the given number of days is of 60. The using of a perpendicular line for the separatrix is of more consequence than will appear at first view. A.11 necessity for pointing off in the product is thus happily dispensed with, uid the work is brought within 197 COMMEECIAL CALCULATIONS. the smallest possible compass. For universal use, we do not know of a better rule for computing interee* than the foregoing. If the rate of interest be any other than 6 per cent., the proper proportions added to, or deducted from, 6 per cent,, will, of course, produce the result. If 5 per cent., deduct ^; if 7 per cent., add ^; if 8 per cent,, add f , or ^ ; if 9 per cent., add ^, etc. DISCOUNT. Discount is an allowance made for the payment of a debt before it is due. The present worth of such a debt is that sum which being put at interest for the given time, would at the end of that time amount to the face of the debt. Thus, if I owe $106 due in one year, without interest, and money is worth 6 per cent, per annum, the pres- ent worth of the debt is $100 ; because $100 at 6 per cent, will amount in one year to $106. The discount would, in such case, be $6 ; which is the difference between the present value of the debt, and its value one year hence. To find the present worth of any sum due at any given time and rate, it is only necessary to divide the sum by the amount of $1 at the given rate and time. To find the discount, subtract the present worth from the given sum. Example 1. — What is the present worth of a note for $750, due in 4 months, without interest, if the use of money is worth 6 per cent, per annum ? Solution. — The amount of $1 for 4 months at 6 per cent, per annum is $1,02 ; therefore, $750 divided by $1.02, wUl be the present worth : 750 -i- $1.02 = 1S5.29+ present worth. The discount on the above note can be obtained by subtracting the present worth from the note, viz, : 60 -735,29 = $14.71. The rule and process above will obtain the true discount ; but business custom varies from this standard. Business discount, as it is called, is simply interest on the face of the debt, taken in advance. Thus, if I owe $106, due in one year without interest, when money is worth 6 per cent, per annum, and I wish to dis- count the debt, or pay it now, business custom warrants me in computing the interest on $106 for the time, which interest is deducted from the debt, leaving the present worth, or the sura I am to pay. The interest for one year at 6 ^ on $106, is $6,36, which deducted from $106, leaves as present worth $99.64, instead of $100, which, as before shown, is the true worth. By this method I gain 86 cents, which, it will be seen, is the interest on the true discount, $6 for 1 year. The difi*erence between these two methods then, is, that by true discount the interest is considered due when the debt is due ; while by business discount it is considered due when the debt is discounted. Example 2. — What is the present worth of a note for $1500, due in 60 days without interest, when money is worth 6 fo per annum ; discount reckoned by the business standard ? Solution. — The interest on $1500 for 60 days at 6 ^, is $15 ; which deducted from the face of the note. $1500, leaves the present worth, $1485. There are various and conflicting opinions as to the legality of this mode of reckoning discount, but as it is almost universally used, both in banks and business houses, we must concede its practical authority. EQUATION OF PAYMENTS. Equation of Payments, or Average, as it is more frequently called, is the finding of an average or mean time for the payment of several amounts, due at different times ; and also, when the balance of an account having both debit and credit amounts, will average due, that no loss may be sustained by either party. The philosophy of equation is based upon the compound relation of money and time ; or upon a recognition of the fact that the value of the use of money is in proportion to the amount used, and the time for which it is used. As a simple illustration: if the use of $100 is worth a certain sum for one month, it is worth twice that sum for two months ; or, if $100 is worth a certain sum for one month, $200 for the same time is worth twice as much. 198 COMMERCIAL CALCULATIONS. Example 1. — A owes B $1200, payable as follows: $100, in 80 days; $400, in 60 days; and $700 in 90 days. When will the entire debt average due ? Solution. — The question is, how long may $1200 be used, to be equivalent to the use of $100, for 30 days-. $400, for 60 days ; and $700 for 90 days ? The use of $100 for 30 aays is equal to the use of $1 for 3000 days. $400 " 60 " « - $1 " 24000 " " $700 " 90 " " ■' $1 " 63000 " $1200 90000 Therefore, the use of $1 for 90000 days would be eouivalent to the time to which A is entitled on his debt ef $1200. We have, then, this statement: The use of $1 for 90000 days is equal to that of $1200 for 76 days, Th« average time for the payment of A's entire debt, is 75 days hence. We are thus enabled to give a general rule for finding the average time of payment of several amounts, dae at different times. Rule. — Multiply each payment by the number of dayx before it is due, and divide the sum of the fboduots by the swn of the payments. The (jnotient voill be the number of days (to be counted foneard frotn the date of reckon- inff), to the average time of payment, EzAHFLE 2. — Abram Jones purchased of Samuel Lincoln the following bills of merchandise: Jan. 1, 1860, a bill amounting $175.34 Apr. 16, " " " $638.25 Apr. 30, " " " $180.60 June 9, " " " $400.00 The term of credit on each purchase is 4 months. If Mr. Jones should propose to give his note for the full amount, due in 4 months from date, when should the note be dated ? Note. — To apply the foregoing, or any other adequate rule to a statement of this kind, it will be necessary first, to settle upon some date from which the time on each payment is to be reckoned. It is usually best to select the date, either of the fimt or laat amount, and reckon backwards or forwards, counting the average time accordingly. As the purchases are all made on 4 months' time, and the note is to be drawn at 4 months it will not be necessary to take either fact into consideration. If, in this caSe, we select the first date from which to count, we shall have the following solution : Amounts. 175.34 Days before due. Products. X = 638.25 X 104 = 55978.00 180.60 X 119 = 21541.40 400.00 X 159 ) = 63600.00 $1294.19 141119.40 The average is 108 days; which is the number to be counted /oncard from the date selected. Jan. 1. Tlif not« must be dated Apr. 19. AVERAGING ACCOUNTS CURRENT, An Account Current ia a statement of the transactions between two parties, showing dates, items, and amounts, both debit and credit, during a certain period. The balance of an Account Current is the difference between the debits and credits; or what one party ia owing the other, as indicated by the items. To average an Account Current is to fix the date when the balance is due. The adjustment is called " Com- pound Equation," or "Compound Average." The usual process is, fimt to average each side of the account; and then multiply the amount earliest due by the number of days between the average dates, and divide the product by the balance of the account. The quotient will be the number of days from the latest date, lohen the oatance will average due ; to be counted FORWAbd if the amount latest due is the larger, and backward if the amount laieai due is the smaller. 199 COMMERCIAL CALCULATIONS. A better process than this, we think, because more easily comprehended and practical, ie the averaging by interest. Not having space to exemplify more than one method, we shall choose the latter. Example 1. — The following account is found on my Ledger. The amounts on each side are supposed to be due at their several dates. When is the balance due ? Dr. John Anderson. Or. Jan. Apr. To Mdse 275 650 925 Solution. — First assume the date of settlement to be the latest date on which any amount, debit or credit, falls due, and reckon interest on the debit and credit items to that date, viz. : Credit— The, interest on $500 from Feb. 1 to Apr. 10, @ 6 %, is $5.'75. Debit.— ThQ interest on $275 from Jan. 15 to Apr. 10, @ 6 %, is 3.90. Excess of credit interest, $1.85, It will thus appear that on the assumed date of settlement, April 10, Mr. Anderson oWed me $925 of account, and $3.90 interest; while I owed him $500 of account, and $5.75 interest. In other words: he owed me the balance of the account ($425) less the balance of interest ($1.85). It would be very easy to settle the account at this date, provided the rate of interest was satisfactory, by deducting the balance of interest from the bal- ance of account ; but, instead of this, it is proposed that Mr. Anderson pay me the exact balance shown to be due by his account, at such time as will secure an equitable adjustment of the interest. It will be evident that were he to pay me the balance of account on the assumed day of settlement, April 10, he would be the loser of the balance of interest due him at that date. The simple question then, is, how long may he retain the balance of account ($425), to accumulate the balance of interest ($1.85)? First ascertain how much the balance of account will accumulate in one day, and divide the balance of interest by it : the quotient will be the number of days which the balance may be held. The interest on $425 for one day, at 6 ^ per annum, is $.u708. Then, $1.85 -j- $.0708 = 26 + = the number of days. In 26 days from April 10, then, which will be May 6, Mr. Anderson will owe me, by average, the balance of his account, $425. Example 2. — When will the balance of the following account average due, assuming the different items to be due at their several dates ? Alonzo Mitchell. Dr. Cr. May Jiily To Mdse 185 June 1 750 " 15 475 1410 By Cash Balance 400 200 810 1410 Solution. — ^Assuming the date of settlement to be July 1, we have: Debit Interest. $185 from May 1, to July 1 — 2 mo., $1.85 $750 " " 15, " "—1 mo. 15 da., $5.63 $7.48 Credit Interest. $400 from June 1 to July 1 — 1 mo. . . $2.00 $200 " " " " "—15 da. . . $0.50 $ 2.50 Leaving the excess of debit interest, $4.98 Un July 1 , the assumed date of settlement, therefore, Mr. Mitchell owes, not only his balance of account ($810) but a balance of Interest, ($4.98.) It is evident, then, that the balance of account has been due long 200 COMMERCIAL CALCULATIONS. enough to accumulate this interest. What is the time required ? By the process already shown, we ascertai* the time to be 37 days; which reckoned back from July 1, will make the average date May 25. From the foregoing examples, we adduce the following rule for obtaining the date when the balance of an account will average due : RcuE. — Asstime ax the date of settlement the latest date at which any amount, debit or credit, falls dite: ascer- tain the balance of interest due at that date, at any giveti rate, and how long it urill take the balance of account to accumulate this interest, at the same rate. The answer will be the time before or after the average date. If the balance of interest, and the balance of account are on the same side, reckon bacewakd ; if on opposite sides, reckon FO&WAKD. Note. — Although to average an account is to obtain a date when no interext is due from either side, ytfc the important principle recognized is, that the use of money is valuable to the user, in the compound ratio of time and amount ; and the real achievement of any correct process of average, is to make the value thus determined, on one side, balance that on the other. For this reason, the rate of interest is unimportant, so long as the same rate is used on both sides. We have chosen 6 % , because it is more easily obtained. Any other time may be assumed for the date of settlement, as well as "the latest date at which any amount falls due," but, for evident reasons, this date is preferable. We will now apply the foregoing rule in averaging the time for the payment of net proceeds in a few of the Consignment and Mdse. Co. accoimts in the body of the work. Example 3. — Account Sales of Flour and Wheat sold on % and risk of J. R. Wheeler & Co. (Page 71.) Dale. ArlicU. Amount. Tone. 66 da 62 da Inttrat. Date. ArticU. Amovftt. Time. Interest. Mar. 2 6* To Cash . . . Storage, etc . Net proceeds . Bal. Interest . 100 325 11575 1 8 73 77 10 36 04 60 Mar. May 6 n By Cash . . . 7500 4500 62 da 77 "77 60 12000 12000 50 Balance of account ($11675); and balance of interest ($73.04) on the same side. Ascertain the time it will take $11576 to accumulate $73.04, and count backward. Ans. 38 days before May 7, or March SO. Example 4. — Account Sales of Nails and Lead, sold on joint % of Logan, WUson & Co., and ourselves each i. (Page 110.) Date. Article. Anuiunt. Time. Interest. Date. ArticU. Amount. I>i»i«. Interest. Apr. « 8 6 To Cash . . . Storage, adv. Com. and Gain^ Net proceeds . Bal. of Interest 100 463 4136 76 26 36 daj 33 da 2 4 7 60 55 78 93 Apr. May 6 9 By Cash . . . « 1400. 3300 34 da 7 ~7 93 4700 4700 98 Balance of account, $4136.25 ; balance of interest, $4.78. Time from date of settlement, (May 9,) reckoned kfockward, 7 days. Equated time, May 2. • The Commission, Storage, etc., is assumed to be due when the account is rendered. + This is the assumed date of settlement, as the note given March 5, falls due at this time. — See Account Sales. X It must not be forgotten, that although the consignee is, in this case, a partner, his account is rendered sim- ply as an agent, or consignee. In this view, his own share of the net gain is as much a part of the " charges" aa is his claim for commission. In all these statements of Companj sales, we have considered the invoice furnished by the consignor as subject to the same time of settlement as the average sales. The fact in all such matters should properly be stated in the partnership contract. If the consignee's share of the invoice is considered due when tha property is shipped, it will, of course, vary the time of equation. 201 COMMERCIAL C ALCULATIOKS. Example 5. — Account Sales of Vinegar, Linseed Oil, and White Lead, sold on joint % of W. K. Sadlei and ourselves, each i. (Page 111.) Date. Arttcle. Amount. Time. |62 da 60 da Interest. Date. Arttcle. Amount. Time. Interett. May 1 3 To Cash . . . Storage, Adv. Coin, and Gain Net proceeds , Bal. of Jut.. . 50 189 2881 3120 — 1 5 7 52 89 09 60 May July 3 3 By Casli . . . 750 2370 60 da 7 ~7 60 3120 50 Balance of Account, $2881 ; balance of interest, $5.09, Time from date of settlement, (July 3,) 13 days, reckoned backward 13 days. Equated time, June 20. ExAMPLK 6. — Account Sales of Sugar, sold on joint ^ of F. A. Boyle & Co., N. 0., Campbell & Strong, and ourselves, each ^. (Page 111.) Date. Article. Amount. Time. Interest. | 1 Date. Article. Amount. Time. Interett. May 6 8 8 To Cash, paid Fre't Storage, Ad. etc. Our net gain . Het proceedis . 500| 237 50 25417 6508 33 2 da 17 17 May 8 By Cash, Note, etc. Bal of Int. . 7500 00 17 7500|00 7500 00 17 Balance of account, $6508.33 ; balance of interest, $0.17. The time it would take for the baMnce of account to accumulate this interest would be much less than one day. Equated time. May 8. Note. — It must be borne in mind that the net proceeds above comprise the amount due to both of the other parties. In equating time on an Account Sales — whether tlie consignee is a partner or not — the net proceeds, or "balance of account" should be the difference between the charges (including the consignee's share of the gain, when he is a partner,) ar.d the gross proceeds. This is upon the supposition that the consignee's share is subject to the same terms of payment as the net proceeds. ACCOUNT CURRENT, AND INTEREST ACCOUNT. The following illustrations are based upon an understanding between the parties that all amounts, debit and credit, shall draw interest after due, at a specified rate. The settlement may be effected at any time and interest adjusted as per agreement. This method is preferred by some to that of averaging payments. The • form will be sufficient without specific instruction : Dr. P. R. Spencer, in Account Cckrent and Interest with B. S. &. P., April 10, 1860. Or. 1860 To Mdse. . . . Amount. Days. 100 Interest. 1860 By Cash . , . Amount. Days. 69 \ Interest. Jan. 1 500 333 Feb. 1 675 7 76 " 10 ** ... 475 91 246 " 15 " ... 400 55 3 68 « 15 it 700 86 10 03 Bal. of Int. . 10 20 Mar. 1 « 870 40 5 80 Bal. Due . . 1480 20 10 BaL of Int. . To Balance . . 10 20 21 62 21 2555 20 \ 2555 20 — 1 62 Apr. 1480 20 I Note. — The rate of interest taken in the above is 6 % . The debit interest exceeds the credit interest on the day of settlement, $10.20, which amount is brought forward to increase the debit side of the account. The statement on the following page is somewhat more complex, owing to the necessity of both debit and credit interest columns on each side. We think this form altogether preferable to the one used by most aiv thors, necessitating tlie frequent transfer of interest from one side of the account to the other. 202 «^ <1 s ^ t» o « 1 in 1 t ^ =^ O i:- loll 1 s (M tN V3 o ^ S S l§l| 1 ^ PS rH « <^ rH l-H iM Oi t- M S OS (M ■* rH C) -""5:^ II 1 1 ^ :22-l8ll 1 R S oooo 0 CO O --C ,-1 w • OJ . . • . » .^^ . 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The basis of all such settlements is, of course, the original agreement or contract between the parties ; the terms of which should always be of the most plain and unequivocal nature, A few points, only, need be expressed in a partnership contract ; among which are : First The amount to be invested by each partner. Second. The services to be rendered by each, and the compensation to be allowed therefor. Third. The basis of gain or loss, and the proportion to be shared by each partner. It is frequently the case that partners, desiring to have everything expressed in the contract, and not ap- preciating the full bearing of certain conditions, defeat their own purposes, by making the terms themselvei incompatible. In such cases, the construction sh^^uld be in accordance with the evident intent of the parties. The difficulties existing in partnership settlements are so irregular, that any attempt at supplying compe- tent rules to meet every case, would be preposterous. It is, however, possible to give such general hints and illustrations as will apply in the majority of cases ; a thorough knowledge of the principles of accounts, with sufficient common sense to apply them, must do the rest. The following general statements, although many of them are self-evident, will serve a purpose m tne solutions umder this head : 1. The prexent worth of a concern is its net resources ; or the excess of its resources over its outside lia- bilities. To find the present worth, subtract the liabilities from the resources ; or, ascertwi the original investment, to wliich add the net gain, or from which subtract the net loss. Note. — If the liabilities exceed the resources, the difference la the net insolvency, 2. The net investment, in business, is the amount invested, less the amount drawn out by the partners. 3. The average investment is a sum which being kept in the business during the specified time, would be equivalent to the actual investments, in the compound ratio of time and amount. To ascertain the average investment, multiply each investment by the time of its continuance in the busi- ness, and divide the sum of the products by the time for which the average is wanted. The most satisfactory proof is to compute the interest on each investment for the time of its continuance, which must be equal to that on the average investment for the specified time of average. 4. The gain or loss during a certain period of business is measured by the increase or diminution of the net resources for that time. To ascertain the net gain or loss, get the difference between the net investment and the present worth. If the present worth is the larger, the difference is a gain ; if smaller, a loss. EzAMPLB 1. — ^A and B are partners, commencing with a joint capital of $10,000. The terms of the con- tract are that A shall receive f and B J of the net gain. At the close of the year, when the division is to b« Duule, the resources and liabilities stand thus : Resources. Cash, $5'793.25 Merchandise, . 8500.00 Bills Receivable 1600.00 Personal Accounts, 5500.00 $16293.25 1 Liabilities, Bills Payable, $3000 Personal Accounts, 1500 $4500 What proportion of the net resources belongs to each partner i Solution. — First ascertain the net gain, by subtracting the investment from the present worth, tIs.: Total Resources $16293.26 Less Total Liabilities, 4500 Leaves Present Worth, $11793.26 from which subtract investment, 10000 Leaving Net Gain, $1793.26 204 COMMEECIAL CALCULATIONS. Then add each partner's share of the gain to his share of the investment, vi*. : i of $1793.25 — $ 448.31, B's share of gain, f " " i_ 1344.94, A's " " " A's Investment, Plus his Gain 1844.94 Equals his Present worth $6344.94 B's Investment, .... $5000 Plus his Gain 448.31 Equals his Present "Worth 6448.31 Total Present Worth, as before shown, . . .$11793.26 EzAifPLE 2. — C, D and E invested as follows : C put in $4000, and drew out $ 700 D " 6000, " 825 E " 4500, " 1000 The gain in business is $1600, of which each is to share J. What is the interest of each in the business at closing ? Ann. Cs, $3800 ; D's, $4676 ; E's, $4000. Example 3. — F, G and H are partners. They invest in equal amounts. At the close of the year theii resources exceed their liabilities $27000 ; and their gains have been $4000, of which F is to share ^ ; G, ^ j and H, i. What was the capital of each at commencing ? What, at closing ? Note. — ^The capital at commencing, subtracted from the capital at closing, will equal the net gain ; and, consequently, the net gain subtracted from the capital at closing, or present worth, will equal the capital at commencing, or the net investment. Ans. to the above : F's capital at commencement, $7866.66+; G'a and Wb the same. E's capital at closing, I8S33.33 ; G's, $9000 ; H's, $9666.67. Example 4. — A and B are partners, investing equally, and sharing equally in grains or losses. At com- mencing business, their resources and liabilities are as follows : Besoiirces. Cash, Hdse Bills Receivable, . . . , $5000 1476 , 760 $7226 At closing, as follows ; Liabilitien, Bills Payable, $2000 Personal accounts, 126 $2126 Henources. Cash, Bills Receivable. . . . $7000 2000 $9000 Liabilities. Personal accounts, $1600 Bills Payable, 3000 $4500 "What is the whole gain or loss ? What each man's net capital at closing ? Example 6. — K and L enter into copartnership, with the understanding that the gain or loss shall be divided in proportion to the average investment. They remain in business one year, during which time they have invested and drawn out as follows : K Drawn out. Jan. 15,. . . $500 July 1, . . 650 Aug. 31, . . bOOO Invested. Jan. 1,. . Mar. 1, . . . 6000 L. 205 Drawn out. Jan, 31,. . Apr. 15,. . . 2000 Sept. 16,. . . 600 Invested. Jan. 1, . . $8000 July 1, . . 4000 COMMEKCIAL CALC U LATlOiN IS. At the close of the year their resources and liabilities are as follows : Liabilitiet, Bills Payable, $1500 Personal accounts, 1760 Resourcet. Cash, $5100 Bank Stock 6000 Real Estate, 7600 Bills Receivable, . . 4000 Personal accounts, . 2000 "What is each man's share oi tne gain ? What each man's capital at closing 1 Note. — ^There are two methods of obtaining a basis for the division of gains or losses under sucn aa trrangement as the preceding : one, to ascertain, according to previous suggestions, the exact average capital of each partner ; and the other, to compute the interest on the investments, which assume as relative capital. The latter is preferable, when the only object is a basis for division ; first, because interest is more easily obtained than the average capital, and next, because it is more easily used when obtained. We shall briefly illustrate both methods. First Solution. — Multiply each investment by the time of its continuance, and divide the sum of these pro- ducts by the time for which the average is wanted : K's Investments. $7000 from January 1, to January 16, i month = $3500 6500 " " 15, " March 1, 1^ " = 9750 12500 " March 1, " July 1, 4 " = 50000 11850 " July 1, " August 81, 2 " = 28700 8860 " August 81, " December 81, 4 " = 85400 |122360-4-12=$10195.88, K's average investment $122850 L's Investments. $8000 from January 1, to January 81, 1 month = 7600 " " 81, " April 15, 2^ " = 19000 6600 " April 15, " July 1, 2^ " = 14000 9600 " July 1, " September 16, 2^ " = 24000 9100 " September 15, " December 81, 8^ " = 81850 $96850 -i- 12 = $8070.88, L's average investment. K's average investment, $10195.83 L's " " 8070.88 Total " $18266.66 "We have, then, the familiar formula : " As the whole investment is to each man's investment, so is the whole gain or loss to each man's share of the same." Operation, $18266.66: $10195.83:: $3400: $1897.76 — K's share. 18266.66: 8090.82:: 8400: 1502.24 — L's " Second Solution. — Compute the interest on each investment for the time of its continuance, and take tae interest due each partner as his relative investment ; and proceed as with the average investment. K's Interest Account. Interest on $7000 from January 1, to January 16, i month = $17.60 " 6500 " " 15, " March 1, li " = 48.75 12500 " March 1, " July 1, 4 " = 250.00 « 11850 " July 1, " August 81, 2 " = 118.50 « 8860 " August 31, " December 31, 4 " = 177.00 206 $611.7^ COMMEECIAL CALCULATIOlSrS. i'« Interest Account. Interest on $8000 from January 1, to January 81,1 month = $40,00 " "7600 " " 81, " AprU 15, 2-J- " = 95,00 " 6600 " AprU 16, " July 1, 2i " = 70.00 - 9600 " July 1, " September 15, 2^ « = 120,00 •* 9100 " September 16, " December 31, 3^ " = 169.26 $484,25 Taking these amounts of interest due, as relative capital, we have statement as before, vit : $1096 : $611,75 :: $3400: $1897,76 = K's gain, 1096: 484,25:: 3400: 1502.24 = L's " K78 net investment is, $8850.00 " " gain " 1897,76 " " capital at closing, $10747.76 L's net investment is, " " gain " $9100,00 1502,24 " " capital at closing, $10602,24 Present worth of firm, $21360,00 Note. — In computing the interest above, as also, in multiplying the investments by the time of their con- tinuance, we have taken the common method of using the exact amotaiC of capital, from one date to another. The same purpose may be effected by getting the value of each investment from the time invested till the end of the year ; and also of each amount withdrawn from the time withdrawn to the end of the year, sub- tracting the latter from the former. This latter method is preferred by some, and is identical in its results, with the method shown. The plan of dividing gains and losses in proportion to investment is not adopted, to any great extent, in general copartnerships, but is peculiar to joint-stock concerns, where it is estimated as a percentage, theresult being precisely the same as by the above method. It is much more easy to declare a percentage dividend in joint-stock concerns, for two especial reasons: first, the capital does not fluctuate — the amount of stock which a man holds being always his average investment — and next the gains are not usually all divided ; so that an exact percentage may be divided, leaving the balance of gain as a sinking, or accumulating fund. The precise distinction between a general copartnership and a joint-stock association, so far as keeping the accounts is concerned, has chief reference to the basis of dividends. In all joint-stock concerns the gaina are divided according to the capital held, while in general copartnerships the usual method is first to equalize the capital by allowing interest on net investments, and then to divide the gain or loss equally. It is also customary in copartnerships, for the partners to draw regular salaries for services the same as employes. The more usual basis of a partnership contract is, first, to equalize the capital by allowing each partner interest on his average investment, and then to divide the net gain or loss in certain proportions independent of capitaL The following examples will illustrate this point. Example 7. — A, BAG are partners under a contract providing that each man shall receive interest on his average capital, at the rate of 6^ per annum, and the net gain be divided equally. They invest, and draw out as follows : C, Dravm out. May 1, . $300 Invented. Jan, 1,, $4000 Mar. 1, . 7000 Drawn out. Jan. 15, . $1.50 Apr. 1, . 200 Invested, Jan. 1, $5000 April 1, 6000 Dravm out. Invested. Jan. 1, $1000C At the end of six months, July 1, they ascertain that the business has gained $1500, not reckoning the Interest due on capital. To how much of the $1500 is each man entitled? and what is each man's interest in the business on the first of July? Solution. — Ascertain the interest due each on his investment, which deduct from the gain, leaving the amount to be divided equally. Add each man's interest to his \ net gain to obtain his share of the $1500. Add each man's share thus found to his net investment, to obtain his interest in the business on the first of July, 207 COMMERCIAL CALCULATIONS. Operation. A'« credit interest, $4000, for 6 months — $1 20.00 "ZOOO, "4 " — 140.00 $260.00 " . . . . . 3.00 debit 800, "2 " A's net interest, $26'7.0O B'b credit interest, SSOC'O, for 6 months — $150.00 6000, "3 " — 75. 00 $225.00 " debit " 160, " 6^ " — 4.13 200, "3 " — 3.00 7.13 B's net interest, . . . . . . . 217.87 Cs credit interest, $10000 for 6 months, 300.00 Total interest due partners, . . . $774.87 $1500 — $774.87 — $725.13, net gain to be divided equally; viz. : $726.13 4- 3=$241.71, A's net interest, . . $257.00 B's net interest, . . $217.87 Cs net interest, . , $800.00 " i net gain, . . . 241.71 " i net gain, . . . 241.71 " i net gain, . . 241.71 " share of total gain, 498.71 " share of total gain. 459.58 " share of total gain 541.71 " net investment, . 10700.00 " net investment, . 9650.00 " net investment. 10000.00 " capital, July 1, $11198.71 " capital, July, 1, . $10109.58 " capital, July 1, . $10541.71 Note. — In a set of Double-Entry Books, a settlement like the above would be easily effected, by carrying the interest allowed the lirst partners directly to the debit of Loss and Gain account, the same as any other expense which would leave in the Loss and Gain account the net gain to be divided. If we take into account the fact that the investment is borrowed l>om the partners, who receive interest thereon, the same as on money loaned to other parties, the proposition is simple enough. It is always proper, whether practiced or not, to deduct the interest on investment, as well as the salaries of the partners — if they are entitled to any — from the gains, before attempting to decide upon the prosperity of the business. Example 8. — A, B, C, and D are partners. The contract provides that A and B are to furnish the capital, and C and D to defray the expenses. The gain is to be divided as follows: A, i; B, J; C, J; and D, ^. The net gain, besides expenses, is $4000; the expenses, which have been paid from the business, are $500. How much of the net gain is each partner entitled to ? Solution. — It would seem at first view, that there is a hopeless incompatibility in the terms of this con- tract. It is true that if $4u00 be assumed as the gain, to be divided among the four partners, injustice would be done to A and B, as they were not to participate in the expenses ; and it will readily appear that if C and D had paid the expenses from their own pockets, instead of from the avails of the concern, the gain would appear $500 more. So far, then, as A and B are concerned, the net gain is $4500. i of $4500 — $1500, A's share of the gain. j. " 4500— 1125, B's " J " 4500— 112.5, Cs " " " ^ " 4500 — 750, D's " C and D are each to be charged with one half the expenses, $500, which deducted from their share of the gain as above, will leave the result : $1125 - $250 — $875, Cs share of the $4000. 750- 250— 500, D's " " Note. — ^There are, in reality, two distinct contracts to be regarded in the above adjustment ; one for the payment of the expenses, and the other for the division of gain ; and they should by no means be made to conflict. The difficulty which the tyro would be apt to encounter, would be the attempt to divide what seems to be the net gam — $4000. The fact is, C and D had no right to charge the expenses to a general account of the concern, thereby reducing the gains, but should have charged their own personal accounts, the same as for money drawn for any private purpose. The net gain is really $4500, and each partner should receive his appropriate share. As C and D have already received each $260, it should be deducted from their gain. 206 COMMERCIAL CALCULATIONS. Example 9. — Three metfiods of adjusting interest between partners. — X, Y, and Z enter Into equal copart- nership with unequal capital, each man to receive interest on his average investment. X's interest amounts to $300 ; Y's, to $250 ; and Z's to $180. How can the adjustment be made ? First. — The total amount of interest may be charged to Loss and Gtun account, which being divided equally between the three partners, each of whom are credited for their respective portions, will produce th« following results Br. X Cr. Dr. "^ Or. Dr. ^ Qr. 243.33 300 243.33 250 243.34 180 Stcond. — X's and Y's excess of interest over Z's may be charged to Loss and Gain account, and thej 'credited with the same ; the Loss and Gain account to be shared equal'y as before, viz. : Dr. ^ Cr. Dr. Cr. Dr. Z Cr. 63.33 120 68.88 70 63.34 TTiird. — A Jonmal entry may be made direct, without taking tbe amoimt to the Loss and Gain account, tul * Dr. X o, j)r, Y Cr. Dr. Z Qr. 66.67 6.67 63.34 It will be seen that the net debits and credits are the same in each of the three methods, clearly proving the essential identity of the different results. The former method is, perhaps, preferable, because more readily imderstood and applied. Example 10. — A, B and C enter into copartnership with equal capital, upon the following conditions: A to receive as a salary $1500; B, $1200; and C, $1000; the gain to be divided equally. At the close of thfl year, the net gain, exclusive of salaries, proves to be $3000. To how much of tiiis amount is each partnei entitled ? Solution. — It will be plainly seen that had the partners received their stipulated salaries and the total been carried to Expense %., instead of a gain of $8000 there would have appeared a loxs of $700. The pro- visions of the contract are that the " gains shall be divided equally ;" and it may be proper to suggest, that if there be losses instead of gains, the proportion must be the same. We have, then, the following result; A's salary, $1500 B's " 1200 C's " 1000 $3700 From which deduct gain, 3000 Leaves net loss, $700 A's i net loss, $233.33 ; B's, |288.88 ; C's, $288.34. Therefore, $1500— $233.33 = $1266.67, A's share. 1200—233.33=. 966.67, B's " 1000— 233.34=- 766.66, C'a " Total, . . $3000.00 A common fallacy with reference to settlements like the above, would be to divide the $3000 in proportion to the salaries. The reasoning would be this : If there had been earned just $3700, A would have received $1500; B, $12i)0; and C, $1000; therefore, if there be less than enough to pay these amounts, it should be divided in the same proportion. The solution, according to this understanding, would be as follows : $3700: $1500: 8400: 1200: 8700: 1000: $3000 ; 3000 : 8000 1216.22, A's share. 972.97, B's " 810.81, Cs « Total, .... $3000,00 The remedy for all such misconceptions is to understand the distinction between the separate contracts in the copartnership. The apportionment of salary, in the above case, is absolute, and is not at all contingent upon the gain or loss. To appreciate this fact fully, suppose the salary is to be paid to clerks instead of to the partners ; the result would be a loss of $700, as shown in the first statement. The partners act in the double capacity of proprietors and employes ; as employes, they ^rain each the amount of his stipulated salary ; as proprietors, they lose each i of $700. 209 GENERAL HINTS AS TO DIV1DENI3S. GENERAL HINTS AS TO DIVIDENDS. It is customary with all establishments to declare, periodically, the gains or losses in business. Joint- stock companies usually do this twice a year, and all other concerns as often as once a year. It is well to con- sider, in all such cases, not only what appears to be the condition of the business with reference to gains and losses, but what that condition really is. It is not impossible that the Representative accounts should make a fair show of prosperity, while the state of available resources would plainly indicate an entirely diiferent state of affairs. For instance, the credit side of Merchandise account may exhibit a commendable preponderance over the debit side, showing thereby a gain ; while the resources which that credit produced may have a fictitious value. Suppose the merchandise to have been sold on notes and personal accounts which are not worth more than half what their Ledger titles express. It wUl be evident that the Merchandise account exhibits a ficti- tious gain of exactly the amount of such depreciation of resources ; and any dividend declared on such a basis would be false to that extent : as it would fail, by so much, of being realized. The question, then, arises. Would it be best to dispose of these doubtful accounts by carrying their deficiency to Loss and Gain? Such a course would doubtless be legitimate, were it possible to determine just how worthless the accounts were, or how much of them it would be safe to retain as absolute resources. This uncertainty would suggest the pro- priety of permitting them to remain upon the Ledger until their worth could be ascertained ; besides, it would scarcely be advisable to close up a personal account so long as any chance remains of realizing it. What, then, is the best method of retaining these doubtful accounts on the Ledger, and yet avoid showing a fictitious Cfain? The most satisfactory plan of which we have a knowledge, is to open a general account to represent lia- bilities ; as, for instance, " Suspense," or " Sinking Fund" to the credit of which carry all doubtful resources, debiting Loss and Gain with the same. It is well understood that a liability will cancel a resource, and vice versa. As the " Suspense" account would thus be considered a liability, it would, of course, offset just so much of what appears elsewhere as resources ; and thus permit the dividend to be made from the actual gain. In all cases, however, where resources have been thus canceled, there should be some method of knowing which they are, that if any thing is thereafter realized on them, " Suspense" account may be charged and Loss and Gain credited. The result of this arrangement would be to guard, in the most eflfectual way, against excessive dividends, and to exhibit perpetually the accounts in " suspense," without exciting the suspicion of the parties from whom we may hope, eventually, to realize a fair proportion, at least, of the amounts shown to be due. Where the object is simply to declare dividends due partners that are to continue in the same relation, it is not necessary to be very exact in these estimates ; but if the purpose be to arrive at the actual condition of the business with a view to changing the relations of proprietorship, it wUl be necessary to estimate the real value of such doubtful resources, or as nearly as possible. The plan usually adopted of closing all doubtful resources into " Suspense" is not only injurious, but utterly useless, as the Suspense account must then represent a resource or a loss. If a resource, the accounts may as well have remained under their proper titles, and if a loss, they should have been carried directly to Loss and Gain. But the chief objection to such a course would be the exhibiting of accounts as closed which are yet owing, and may be paid. If Mr. A., for instance, whom we have thus considered doubtful, should desire to see his account on our Ledger, that he may pay it, it might be awkward to inform him that, having considered his account worthless, we had carried it to Loss and Gain. He might not desire to contribute so directly to our profit. In Joint-stock concerns, particularly, where the settled policy is, under no circumstances to decrease the capital stock, a " Suspense," or " Sinking Fund" account is exceedingly proper ; and it is well, under such cir- ctunstances, to carry to such account, not only the resources which are doubtful, but a sufficient amount to cover all contingencies. It is quite as easy to estimate the real value of a " Sinking Fund" account as that of any doubtful resource, and in case an exact statement of the condition of the concern is wanted, any exces* whicli may have been transferred hither may be easily restored. 210 QCJESTIONS FOK REVIEW. QUESTIONS FOR REVIEW, STOCKS.— PAGE 185. 1 "Where, and in what year did the public funding system originate ? 2, When wat it introduced into Florence? 8, When, into England? 4, What is thought of the effect of the public debt in England' 6. Under what circumstances would a heavy public debt be beneficial to a country? 6, To what does the term Stocks apply in England ? Y. To what in this country ? 8. Into how many classes may Stocks b« divided, and what are they ? 9. Define Interest Stocks? 10. Dividend Stocks? 11. Upon what does the earnings of Interest Stocks depend? 12. Upon what, Dividend Stocks? 13. Which of these two classes figures most extensively in the Stock market? 14. What causes produce fluctuation in Interest Stocks ? 16. Why are the Stocks of the United States, declaring a certain percentage, more valuable than those of other corporations declaring the same? 16. What is the true basis of value in Dividend Stocks? lY. Can the value of Dividend Stocks be estimated upon any correct statement of past earnings? 18. Why do Railroad Stocks, producing 8 % per annum, sell for less than Government Stocks producing 6 % ? JOINT-STOCK BUSIlfESS,— PAGE 189. 19 Does the theory of Joint-Stock concerns difiFer from that of individual or copartnership business ? iju. What is the prime object in all ? 21. To what are the means of joint-stock concerns usually applied ? 22 How is the capital of a joint-stock concern divided ? 23. By whom is it held ? 24. When are these shares said to be at parP 26. When at a premium? 26. When at a discount? 2Y. Why do joint-stock concerns have an importance in communities not shared by private companies ? 28. In what particulars are banks more intimately connected with the public than other joint-stock associations ? 29. What are the restrictions thrown around banks ? 80. What are their peculiar privileges ? 81. Will you explain how " Loss and Ex- pense" may be considered a resource ? 32. To what should the dividends in all joint-stock concerns conform ? EXCHANGE,— PAGE 191. 83. What is meant by the term Exchange f 84. How is exchange effected? 86. What is a Bill of Ex- .jhange ? 86. Who are the parties to a Bill of Exchange, and what are they called ? 87. Of what does Do- mestic Exchange consist? 38. Foreign Exchange? 39. How are Foreign Bills of Exchange remitted? 40. Will you give the form of a Set of Exchange? 41. What are the negotiable conditions of a Bill of Ex- change? 42. What is the intrinsic Par o/ ^a-c/fan^re / 43. What is the i»i, a term used to denote the difference between the real and nominal value of money. Allowance, deduction made from weights, etc. [See Tare.] Amalgamation. The operation of forming amalgam; mixing mercury with any metal. Ante-date, to date beforehand. Appraisal, a value set upon goods or property of any kind. Appraiser, one who appraises. Aqueduct, a channel or conduit for the conveyance of water. Arbitration, the hearing of a cause between parties in controversy ; estimating the value of exchange, nego- tiated through indirect channels. Assay, the trial or proof of the purity of metals. Assets, resources of any kind ; available means. Assessment, a valuation of property or profits, for the purpose of taxation. Assessor, one who assesses or values property. Assignee, a person properly appointed to transact business, or receive property for, or on account of any person or estate. Assignor, one who makes an assignment or transfers property or interest. Assignment, the act of making over property or trust to an assignee. Association, the union of persons in company, for the transaction of business. Assortment, a variety of sorts or kinds, adapted to various wants. Assurance, a guarantee or indemnity. [See Insurance.'] Attachment, a legal warrant for seizing a man's persoi or goods. Auction, a method of selling goods to the highest bidder. Auctioneer, one who sells goods at auction. Auditor, a person appointed and authorized to examine accounts, compare vouchers, etc. Average, a term used to denote damages or expenses re- sulting from accidents at sea; the mean time for the payment of several items due at different times. Avoirdupois, tne common standard of weight for all com modities except precious metals and drugs. BALANCE, a term used to denote the difference be- tween the sides of an account, or the sum necessary to make the account balance; an account in the Led- ger, showing resources and liabilities. Balance of Trade, the difierence between the value of im- ports and exports. BaUast, a heavy substance placed in the hold of a ship to keep her steady in the water. Banking, the business of a bank. Bankrupt, one who is unable to pay his debts. Bill, a general name given to a statement in writing. The following are some of the technical names of bills : Bill of Exchange, an order drawn on a person in a distant place, requesting the payment of a sum of money. Bill of Entry, a written account of goods entered at the Custom-House. Bill of Right, a form of entry at the Custom-, House by which the importer may examine his Bill of Lading, a list of goods shipped, having the signature of the master of the vessel, or the proper officer of the transportation company. Bill of Parcels, an account given by the seller to the buyer, of articles and prices. Bill of Sale, a writing given by the seller of per- sonal property to the buyer, equivalent to a deed. Bill of Health, a certificate from the proper author- ities as to the state of health of a ship's companj on leaving port. Bill of Mortalit]!, a certified account of the deaths at a certain place, during a certain period. Bill of Credit, a document for raising money on the credit of a state. Board of Trade, an association of business men, for tht general advancement of commercial interests. 212 VOCABULARI OF MEECAIS'TILE TEEMS. ,pna fide, in good faith. Bond, a deed by which the party binds himself, his heirs, executors and assigns to the performance of certaia conditions. Bonded Goods, those which remain in the Custom ware- bouse until the duties are paid. Bottomry Bond, a mortgage on the bottom of a vessel, that is, on the vessel itself, for the repayment of money loaned. Broker, a trader in stocks, moneys, or other commodities. Brokerage, the commission or percentage charged by a broker for services. CAPITAL, investment in business. Carat, the weight which expresses the degree of fineness of gold. Cargo, the lad.ng or freight of a vessel. Cashier, one who keeps the cash account; the financial officer of a bank, railroad, or mercantile house. Carrier, one who carries goods for another. Charter, an instrument bestowed with form and solem- nity, bestowing certain privileges and rights. Charter-party, a contract between the owner of a ship and the freighter. Clearance, a certificate from the Custom-House that a ship has permission to sail. Clearing, the obtaining of permission for a ship to leave port; the exchanging of drafts and settlement of bal- ances between diflerent houses. Clearing- House, the place where the operation of clearing is performed. Coasting, the trade carried on between diflerent ports of the same country. Coin, pieces of metal, usually gold or silver, impressed with a public stamp, and used as money. Commerce, the exchange of commodities. Commission, a percentage for the sale of goods or other service. Company, an association of persons for a common enter- prise. Compound, to settle with a creditor by paying a part only of the debt. Compromise, an agreement embracing mutual concessions. Consignee, one to whom goods are consigned. Consignment, goods consigned to be sold on account. Consignor, one who consigns goods. Consoh, an abbreviation of the term " Consolidated , Funds," applied to the chief public stocks of England. Consul, an agent for a government in a foreign land. Contraband, an article prohibited from being imported, exported, bought or sold. Contract, an agreement between two or more parties upon surticieat consideration, to do, or not to do a cer- tain thing. Contra, on the opposite side. Copyright, the secured privilege of monopolizing the publication of any book or work. Counterfeit, a spurious article resembling the genuine. Coupon, a French word, signifying cut off. It is applied to interest warrants, attached to public stocks, bonds, etc. When paid they are cut off from the bond. Credential, the official warrant of a delegating power, authorizing the holder to act in a specified capacity. Credit, trust given to one who owes. Currency, a term used to express the collective amount of money used in the business of buying and selling. Customs, the tariff charged by law on imports or ex- ports. CusPjm- House, the oHice where the business connected with customs is transacted. DAMAGED GOODS, in tLe language of customs, are goods subject to duties, that have received injury, either in the voyage home, or the bonded warehouse. Days of Grace, the time allowed by law and usage be- tween the written date of maturity- of a note or draft, and the date upon which it must be paid. Debenture, a certificate of drawback entitling the im- porter to return duties on goods shipped again. Debt, an amount owing from one party to another. Decimal, from the Latin decern, signifying ten ; any sys- tem of counting by tens. Decimal Fractions, fractions having any power of ten for their denominator. Deed, a written contract, sealed and delivered. Defalcation, diminution, deducted from. Defaulter, one who fails to account for money or valu- ables entrusted to his care. Delivery, the passing of goods or money from one to an- other. Demand and Supply, terms used to denote the relations existing between consumption and production. Demurrage, forfeit money for detaining a vessel beyond her time. Denier, a small French copper coin. Deviation, the departure of a vessel from the course specified in her insurance policy. Diplomacy, the art of conducting negotiations. Discount, consideration allowed for the payment of a debt before it is due. Dividend, division of profits among stockholders. Drawback, an amount remitted which has been previously paid as duties. Draft, an order for the payment of money. Drawee, the person on whom a draft is drawn. Drawer, the person wlio draws a draft. Duplicate, a copy or transcript of any thing. Duty, a government tax. EFFECTS, property of any kind. Embargo, a prohibition laid by the government on ships to prevent their leaving port. Embezzlement, the illegal appropriation of the funds of a principal by an agent or employee. Emporium, a commercial center; a mart. Endorse, to subscribe to any thing ; to write one's name on the back of a note. Engross, to monopolize ; to buy up produce for the pur- pose of aflecting the market ; to copy in manuscript. Exchange, the fundamental principle of trade; the species of paper by which debts «ire paid without the trans- mission of money ; premium and discount arising from the purchase and sale of funds. Exports, goods or produce carried abroad. Express, a messenger or vehicle sent on a special errand ; a regular conveuance for packages. FABRIC, manufactured cloth. Face, the amount expressed on a note or draft. Factor, an agent employed to transact business for an- other. Factory, a house or place where factors reside; a build- ing for the manufacture of goods. Fac simile, an exact resemblance. Failure, becoming insolvent. Fancy Stocks, usually api)lied to the stocks of joint-com- panies, subject to fluctuation in price. Favor, the polite term for a letter received; a note or draft is in favor of the person to whom it is to be paid. Fee simple, an estate held by a person in his own right. Finance, pertaining to money ; the public revenue. 213 VOCABULARY OF MERCANTILE TERMS. financier, an oflBcer of revenue ; one skilled in money matters. firm, the general title of a copartnership. Firkin, a measure equal to nine ale gallons. Foreclose, to cut the mortgager off from the equity of re- demption. Forestalling, buying up produce before it gets to market, to enhance the price. Form, a particular arrangement; a systematic method of expressing facts. Forecastle, the part of the upper deck of a ship for- ward of the mast. Folio, page of a book ; usually applied to the two pages opposite each other. Franc, a French coin, equal to about eighteen cents of American money. Free Trade, the policy of conducting international com- merce, without duties. FreigJit, goods being transported ; the price of transpor- tation. Fund, a stock or capital ; a sum of money appropriated to some special enterprise ; used in the plural to de- note wealth, generally. GAUGING, the art of measuring the contents of a cask or other receptacle. Gain, profit ; increase in wealth. O-ratwity, a free gift ; a donation. Gr-uarantee, or Guaranty, an undertaking or engagement by a third person that the agreement between two parties shall be observed ; a surety. HARBOR, a place where ships may lie at anchorage and in safety; a port for loading and unloading. Hawker, an itinerant pedler of merchandise. Highway, a public road or thoroughfare. High Seas, the waters of the ocean, without the bounda- ries of any country. Honor, to accept or pay when due. Hypothecate, to pledge as security. IMPORT, to bring from a foreign country. Importation, the act of importing ; the thing imported. Indemnity, a guarantee against loss. Insolvency, the condition of bankruptcy. Insurance, indemnity from loss ; the rate paid for indem- nity. Installment, part of a sum of money paid or to be paid at a certain time. Interest, the use of money ; commonly defined as a per- centage allowed by the borrower to the lender. Inventory, a list of goods enumerated in detail. Investment, the laying out of money in the purchase of property. Invoice, a bill of goods bought or sold. JETTISON, goods thrown overboard to lighten a ship in a storm. Jointure, an estate in lands settled on a woman, in con- sideration of marriage. Joint-stock, property held in common by a company. Journal, the chief book of the current entries in business. LEASE, a contract demising the use of property for a certain time. Ledger, the merchant's book of accounts. Legacy, a bequest ; money or property given by will. Letter of Credit, an open letter of request authorizing the holder to receive money on account of the writer. lAabillty, a debt or claim against a person. License, a legal permission to do a certain act such as selling goods, etc. Lien, security on land or other property. Lighter, a large, open, flat-bottomed boat used to carry goods to or from a vessel when loadmg or unload- ing. Lighterage, a charge or commission for carrying goods in a lighter. Liquidate, to pay or satisfy demands. Loan, that which is lent for a temporary purpose. Lucre, gain in money or goods. MANIFEST, a list of the articles comprising a ves- sel's cargo. Manvfacture, the process of converting raw materials into articles of use and sale. Manufactory, the place where goods are manufactured. Marine, a general name for the navy of a kingdom or a state. Maratim£ Law, law relating to harbors, ships, and sea- men. Mark, or Marc, a weight in European countries for esti- mating gold and silver. Maturity, the date when a note or draft falls due. Maximum, the highest price or rate. Mercantile Law, law pertaining to business transactions. Merchandise, goods ; the common articles of barter. Merchant, one who speculates in merchandise. Minimum, the lowest price or rate. Mint, the place where money is coined. Monopoly, the sole right to make or use a certain article. Monetary, relating to financial matters. Mortgage, the transfer of property to secure the payment of a debt. Mortgagee, the person to whom the transfer is made. Mortgager, the one who makes the transfer. NAVIGATION, the science of conducting ships or other vessels from one port to another. Net, or Nett, that which remains of a weight or quantity after certain deductions. Net Proceeds, the amount due a consignor, after deduct- ing charges attending sales. Nickel, a scarce metal resembling silver; used in the composition of the new cent coin of the United States- Notary Public, an officer whose chief business it is to protest paper for non-payment. Note, an incidental remark made for the purpose of ex- planation ; a written obligation to pay money or goods. PAR, equal in value. Partnership, an agreement between two or more persons to share in the profit and loss of any enter- prise. Pawnbroker, a person who advances money on goods, having power to dispose of the same if the money is not refunded as per contract. Policy of Insurance, contract between the insurer and the insured. Portage, the amount paid by a captain in running his ves- sel ; the price of carrying. Premium,, the sum paid for insurance; the excess of value above par. Pidce Current, a list of merchandise, with market value. Prirvcipal, an employer ; the head of a commercial house; the sum loaned upon which interest accrues. Protest, a formal notice to the sureties of a note or draft, stating that the same was not paid at maturity; or to the drawer of a draft stating that the same was not accepted upon presentment. 934 ABBREVIATIONS AND CHAHACTERS. QUARANTINE, restraint of intercourse to which a ship is subjected, upon the supposition that she may be infected with disease. RATE, price ; amount above or below par. Rebate, reduction for prompt payment Becevpt, a written acknowledgment of having received money or other value. Beprisal, the act of seizing ships or property aa indem- nity for unlawful seizure or detention. Resources, effects — property of any kind. Revenue, the annual produce of rents, excise, customs duties, etc., collected by a state or nation. SALVAGE, an allowance made by law for the saving of a ship's cargo from wreck or fire. Sample, a specimen. Seaworthy, in a proper condition to venture to sea. Seize, to take possession of by legal process. Shipment, goods shipped ; the act of loading a vessel for voyage. Sight, the time of presenting a bill to the drawee. Signature, the name of a person written by himself. Solvent, sound ; able to pay all liabilities. Sounding, trying the depth of the sea, and the nature of the bottom. Stock, capital in trade ; the title of the proprietor of a business. Stocks, shares in joint-stock companies, and negotiable debts of governments and corporations, drawing in- terest. Stockjobber, one who deals in stocka. Surety, indemnity against loss ; a person bound for th6 performance of a contract by another. TARE, an allowance or discount for the weight of boxes and other receptacles of merchandise. Tariff, a list of prices; duties on imports and ex- ports. Teller, an officer in a bank who receives or pays money. Tender, an offer for acceptance ; a legal tender is an offer of such money as the law prescribes. Tonnage, the weight of a ship's lading ; the capacity of a vessel. Transfer, to convey from one to another. Trustee, a person trusted ; one to whom some spedaX business or interest is committed. USANCE, business custom or habit which is generally conceded and acted upon. Usury, illegal interest; formerly, any consideration for the use of money. VEND, to sell, or transfer for a consideration. Voucher, a written evidence of an act performed, such as the payment of money. WAGES, compensation for services. Warehouse, a building in which goods are stored. Wares, merchandise of any kind. Wharfage, money paid for the use of a wharf. Wreck, the ruins of a ship stranded. Wreckers, persons employed in saving property from a wreck. ABBREVIATIONS AND CHAEACTERS. .A-BBRE VI.A-TI 1?TS . Ac't Account. Am't .... Amount. Ans Answer. Apr April. Ass't'd. . . Assorted. Aug ....August. £al Balance. B. ^....Bill Book. Bbl Barrel. £. Pay.. Bills Payable. B. ^ec.. .Bills Receivable. BPk Black. BoH Bought. Bro Brought. Cap Capital. C'.-B .... Cash-Book. Co Company. Com, Commission. Oont't.. . . Consignment. Or Creditor. Dec December. D'/t Draft. Do The same. Doz Dozen. Dr Debtor. D'g Days. ea Each. E. E Errors excepted. E.&O.E. Errors and omis- sions excepted. Emb'd. . .Embroidered. Eng English. Ejc Example. Exch .... Exchange. Ejcp Expenses. Fav Favor. Feb February. Fig'd Figured. Fol Folio. For'd... . . Forward. Fi^l Freight. Gal Gallon. Hhd. .... Hogshead. /. B Invoice Book. Ins Insurance. Inst Instant. Int Interest. Inv't . . . .Inventory. Jan January. lbs Pounds. L. F..... Ledger Folio. Mar. March. Mdse . . . .Merchandise. Mo Month. Ko Number. Nov November. ~ Oct October. O. I. .B. .Outward Invoice Book. p Page PayH.. . .Payment. P.C.B. .Petty Cash Book. Pd Paid. Pkg Package. Pr Pair. pr, per . .By. Prem . . .Premium. Ps. Pieces. Redd. Received. S.B Sales Book. Sept September. Shi-p't . . .Shipment. Sunds Sundries. 7ds Yards. Yr Year. CHARACTERS. @..At. «S^ . . Account. . . Per cent. ^fj!... Number. + . .Sign of addition. — . .Sign of subtraction. X • • Sign of multiplication. H — Sign of division. — . .Sign of equality. 215 1' . .One and one-fourth. 1* . .One and two-fourths. 1* . .One and three-fourtha TIME TABLE. Showing the time in months or days from any day in one month to the corresponding day in any other month. FliOM ( TO JANUARY. ] Months. ( Days... Jan. 12 365 Keb. 1 31 Mar. 2 59 Apr. 3 90 May 4 120 June 5 151 July 6 181 Aug. 7 212 Sept 8 243 Oct. 9 273 Nov. 10 304 Deo. 11 334 FEB'UARY. \ Months . ( Days... Jan. 11 334 Feb. 12 365 Mar. 1 28 Apr. 2 59 May 3 89 June 4 120 July 5 150 Aug 6 181 Sept 7 212 Oct. 8 242 Nov. 9 273 Dec. 10 308 MARCH . . . ] Months . ( Days . . . Jan. 10 306 Feb. 11 337 Mar. 12 365 Apr. 1 31 May 2 61 June 3 92 July 4 122 Aug. 5 153 Sept 6 184 Oct. 7 214 Nov. 8 245 Dec. 9 275 APRIL \ Months. ( Days. . . Jan. 9 275 Feb. 10 306 Mar. 11 334 Apr. 12 365 May 1 30 June 2 61 July 3 91 Aug. 4 122 Sept 5 153 Oct. 6 183 Nov. 7 214 Dec. 8 244 MAY ) Months. (Days... Jan. 8 245 Feb. 9 276 Mar. 10 304 Apr. 11 335 May 12 365 June 1 31 July 2 61 Aug. 3 92 Sept 4 123 Oct. 5 153 Nov. 6 184 Dec. 7 214: JUNE ] Months . ( Days... Jan. 7 214 Feb. 8 245 Mar. 9 273 Apr. 10 304 May 11 334 June 12 365 June 11 335 July 1 30 Aug. 2 61 Sept 3 92 Oct. 4 122 Nov. 5 153 Dec. 6 183 JULY ] Months . ( Days... Jan. 6 184 Feb. 7 215 Mar. 8 243 Apr. 9 274 May 10 304 July 12 365 Aug. 1 31 Sept 2 62 Oct. 3 92 Nov. 4 123 Deo. 5 153 AUGUST. . . ] Months . ,. (Days... Jan. 5 153 Feb. 6 184 Mar. 7 212 Apr. 8 243 May 9 273 June 10 304 July 11 334 Aug. 12 305 Sept 1 31 Oct. 2 61 Nov. 3 92 Deo. 4 122 SEPT'BER . ] Months . ( Days... Jan. 4 122 Feb. 5 153 Mar. 6 181 Apr. 7 212 May 8 242 June 9 273 July 10 303 Aug. 11 334 Sept 12 365 Oct. 1 30 Nov. 2 61 Dec. 3 91 OCTOBER . ) Months . (Days... Jan. 3 92 Feb. 4 123 Mar. 5 151 Apr. 6 182 May 7 212 June 8 243 July 9 273 Aug. 10 304 Sept 11 335 Oct. 12 365 Nov. Dec. 1 2 31 61 NOV'MBER ] Months . (Days... Jan. 2 61 Feb. 3 92 Mar. 4 120 Apr. 5 151 May June 6 7 181 212 July 8 242 Aug. 9 273 Sept 10 304 Oct. 11 334 Nov. 12 365 Deo. 1 30 DEC'MBER ) Months . ( Days... Jan. 1 31 Feb. 2 62 Mar. 3 90 Apr. 4 121 May 5 151 June 6 182 July 7 212 Aug. 8 243 Sept 9 274 Oct. 10 304 Nov. 11 335 Dec. 12 365 Suppose the time be required fiom July 10 to September 10. Find July in the left-hana column, and follow out the line to the right until you come to September; the number of months is 2, of days 62, If the date to wiiich we reckon be either greater or less than the one from which we reckon, the difference should be added or subtracted as the case may be. For example : How many days from February 1 to August 31 ? By following out the February line to the August column, we find the time from February 1 to August 1 to be 131 days, to which if we add 30, the difference between 1 and 31, the time required will be 211 days. If the time be required between February 28 and August 1, we find the time from February 28 to August 28, to be 181 days, from which, if we subtract 27, the difference oetween 1 and 28, we get for the number of days, 154. The Table is one of quite common use, but is none the less important. It may be used to great advantage in the processes of averaging. 216 RblURN EDUCATION-PSYCHOLOGY LIBRARY TO^ 2600 Tolman Hall 642-4209 LOAN PERIOD 1 'MONOG ^APH 4 5 6 ALL BOOKS MAY BE RECALLED AFTER 7 DAYS 2-hour books must be renewed in person Return to desk from which borrowed DUE AS STAMPED BELOW FPR 1 ?. 1993 UNIVERSITY OF CALIFORNIA, BERKELEY FORM NO. DD10 BERKELEY, CA 94720 HP 5^l(]31 YD I 1 426 UNIVERSITY OF CAUFORNIA LIBRARY ail nn 1 > '^ol^l 1 'l^l I 1