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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. (Pro9p0r<m$.)
Instructions 20, SI
Dav Book 22
Journal , 28, 24
Ledger 95, 26
General Statement 27 — 32
Questions for Review 82
Closing the Ledger 88
Order of Closing 84
Ledger Closed .... 35, 86
General Remarks 87 — 39
Exercises for the Learner. (First Series.) 89, 40
Questions for Review 41
Index to Ledger B 42
Bern. — Continuation o/ Set L (Prosperous.)
Day Book 44, 46
Journal 46, 47
Ledger 48, ^
General Statement , 50, 61
Exercises for the Learner. (Second Series.) 52, 58
Auxiliary Books 54, 60
Questions for Review 50
8r IIL — Continuation of Set II. (Advorae.')
Day Book . . 6&— 61
Journal , ... 62 — 66
Trial Balance and Inventory 67
Statement 68
Closing of H. B. Bryant's Business 69, 70
Commission Business exemplified 70- --78
Exercises for the Learner. (Third Series.) , 74, 78
Questions for Review 78
3
541B3I
C0NTENT8.
Set IV. — Partnership Business. (Prosperous.) Paob
Remarks »♦,.... 78, 79
Journal Day Book 80—90
Ledger ,.....»»••••♦• 81 — 98
Trial Balance and Inventory 99
Balance Sheets explained ... ,...,.. 101
Forms of Balance Sheets . . . . . . . . • 102, 103
Auxiliaries to Set IV. explained 104, 105
Commission Sales Book .... .... 106 — 109
Accounts Sales . . • • HO — 112
Outward Invoice Book 113 — 115
Banking Auxiliaries . . . . : 116, 117
Notes, Drafts, etc • ... 118, 119
Letter-Book 119—123
Exercises for the Learner. (Fourth Series.) 124 — 126
Set V. — Jof>ling 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 <u well as others. Negative virtues count as nought in such a contest
and no one who has not the positive qualities of energy and perseverance can hope ft<r success in this endeavor.
4. Feikxds.
Sentimentalists talk of friendship as self-created connoisseurs in art point out the beauties of an Italisa
l?cape, or a boarding-school miss would apostrophize " a love of a bonnet." So widely prevalent is the
disgust wliich these sickly views of the noblest of human sentiments have produced, that we are fast becoming
infidels on tliis point ; and no opinion is more common or more freely expressed than that " friendship is but
» name." We are not willing to accept this conclusion, for many reasons. First, history proves its fallacy ;
»nd next, to yield this point, would be to strike from the world every living virtue ; for if pure, unselfiah
friendship does not exist, then truth has no abiding-place, and love, the sum of all the virtues, would be with
out foundation. It is the privilege of every young man to contribute to a healthier sentiment in this regard,
first by deserving friends, and next by enjoying them. By friends we mean not those summer birds who
twitter about the opening petals of our joy, and sing in the branches of our prosperity, while tlie warm sud
gives life, and the soft breezes stir the tender foliage. Flatterers are not friends, how musical soever mnj
be the sweet cadences of their adulation. Those, and those only, are our friends in the mirr(;r of whose
hearts the angles of incidence and reflection are rendered equal from a surface unruflled by pride or any
selfish quality — who can tell us of our faults as they would point out a malady which threatened to under-
mine our health — not for the gratification it may give them, or the mortification us, but that eflScient
means may be taken for its eradication. As a father affords the strongest proof of love for his child by
hiflicting i)ain that good may follow, so the surest test of friendship is a fealty to our good which will not
shrink from any duty towards us, however unpleasant, or liable to be misconstrued. Again, society is not so
depraved as we are apt to think, and men will learn to put a true estimate on character, entirely independent
of extraneous considerations. Beauty and symmetry liave charms, even to those who are themselves most
nncoraely ; and if one desires the acquisition of such friends as will not desert when most their friendship is
needed, the surest metliud of obtaining them is not to seek by flattery and fawning, or at the expense of one
particle of self respect, but to drserve by a life and character which must force them into the ranks. One
friend thus secured is worth a thousand flatterers who live in the sunshine and die in the storm.
We have thus briefly reviewed some of the important desires which actuate young men in adopting rules
of conduct which are to regulate their lives. Let us, a little more explicitly, consider the points which bear
*pon
The Choicb of Vocatiow.
Very few young men before fairly starting in life have any decided predeliction for a special calling. It
ts true that the organ of hope, which so preponderates in the earlier stages of life, draws extravagant pictures
of what we shall be " when we are men ;" but even this ambition changes with the shifting panorama which
produced it ; and we run in imagination, through the entire category of professions and positions, impelled alone
by the distant halo, which in our youthful wonder, surrounds the objects of our envious regard.
It is, perhaps, as well that this is so ; for no decision abstractly made, and without experience to give it
force, would bind our riper judgment, if not in accordance with it. Besides, it is absolutely impossible thus
to dispose of our future selves. For instance, it is one of tlie peculiar and fascinating doctrines of our republic,
that the highest positions of honor and emolument are open to its children. It is common when referring tc
the humblest scion of the humblest stock — " the unwashed democracy" — to remark, " Here may be a future
president," or, " Disguised in that torn and faded apparel is an embryo governor ;" and history is not wanting
in examples to prove that, in this country at least, the end of human success can never be estimated from ita
beginning. The accident of birth has no weight in deciding destiny. Suppose, then, reasoning from this
basis, every ambitious young man should say; " There is nothing in my birth, position, or constitution which
can stand in the way of my elevation to the presidential chair ; it is worthy of my best efforts, and I will not
rest until that purpose is accomplished." The very supposition proclaims its own folly. It is true that al'
aspirations of this kind may be legitimate ; but, considering how few presidents are chosen in each generation,
the chances for such preferment are even less than that of obtaining the chief prize in a lottery scheme by the
purchase of a single ticket. A great man — one who was himself nearer to the realization of *.his fond dream
than any other who failed — has left on record a sentiment which does him more honor than would the office
he coveted. It is appropriate here : " I would rather be right than president," If this be the ruling ambition
in life, the accident of place — for it is, at best, but an accident — will be valued only as it can be made best to
Bubserve the higher purposes of existence. " I was once called upon," said a popular divine, " by a conscien-
tioua member of my church who confided to me the secret wish of bis heart to become a preacher of the Go»
B 9
A SHOKT ADDRESS.
peL He was a haokor, able, consistent, and prosperous, and he desired my advice as to the propriety ol
forsaTjing- his chosen vocation, that he might the more efFcctually win souls to Christ. ' Preach the Gospel,
I said to him, ' by all means ! Preach it daily and hourly ; but do not forsake your business. Tour countei
is your best pulpit, and the sermons which speak through the common transactions of life have efficacy such
as seldoDi follows the exhortations of those who make a profession of Theology, and are paid to preach the
Go«pel ' There is common sense as well as sound theology in such advice ; and so we would say to every
ambitious young man • Be not so careful concerning the particular line of your duties, as you are to make
your position the means of scattering blessings around you.
Again, young wyv are apt to be impatient of preferment, and to place a higher estimate on the intrinsi*
value of their ser\-icps than the state of the market will warrant. " I have one objection," said a shrewd busi
ness man to us, " to employing graduates of Commercial Colleges. They are apt to think when their prelim
inary studies are finished, that they know all that is worth learning, and to value their services accordingly.
This remark does not apply alone to the graduates of colleges, however truthful it may be in this application.
It indicates a constitutional weakness which, like the measles and whooping-cough is quite sure to -visit us all
at flome stage of life. If the disease can be forced outward, or, as physicians say, " driven to the surface," it
may be of short duration and leave the system in better condition than before the attack ; but if it " strikes
In," much skill j^nd courage is required to take the patient safely through.
Of one thing aspirants for position and preferment may rest assured, that the business world will put an
estimate on every man entirely independent of his own self-valuation, and in strict accordance with his merits
The universal law of " supply and demand" is as inexorable in prescribing social position as in regulating tb-
markets ; and the surest way to attain to a certain desirable point is to cultivate those qualities which are ei»
sential to its duties. That detestable cowardice which whines at the " fickleness of fortune," and lays suo«
serious charges at the door of an " unappreciating public," should be purged from every heart. WhoevN
would win for himself a place must expect to contest the ground, inch by inch, using each obstacle overconc'^
as a stepping-stone to his own advancement.
Above all, let us earnestly beseech you, do not wait for something in the future which, to your unpractiscr*"
eye, promises greater reward than that which is at present attainable. If, by a well-directed effort, you can
secure the starting-point which you most desire, as congenial to your tastes, and, in your judgment possessing
the germ of success, strike out boldly and fearlessly. Should you fail in this, do not despair, but turn your
attention to the next most desirable object. There is nothing so hopeful of future success as prcient employ-
ment. Never be idle. There is always something for willing hands to do ; and no class of persons have less
favor with right-thinking men than those who are " out of employment."
Do not set your heart upon city life. It is a mistaken idea which seems to have taken possession of
certain young men reared in the country, that the surest road to wealth and distinction leads through the
metropolis. It is true that the majority of those who are eminent for wealth or talent in the large cities are
coimtry born ; but they compos< a meagre share of that almost ceaseless tide of influx which is daily swelling
the ranks of the restless horde ol adventurers clamorous for something to do — any thing to obtain a foothold
in the city. It is true that young men are wanted in every avenue of city life, and that without them the
very channels of commerce would become stagnant ; but there is already an over supply of those •' to the
manner born," while beyond the limits of city life there are fields of adventure, and enterprises of industry,
actually suffering for strong hands and stout hearts. Besides, there are no qualifications which would secure
eminence in city life, that may not be made equally productive, if not more so, in less populous districts. In
all large commercial centers, every department of industry is filled with competitors, a few only of whom can,
in the nature of the case, stand at the head of their business. In the country, competition is less severe, and
appreciation assumes a more genial type. In large cities, the eternal strife necessary not only to obtain
position and wealth, but to retain them, tends to selfishness and moroseness, shuts out the nobler heart-
qualities, fossilizes the affections, and makes men recreant to their own better natures. We do not say that
this is so, necessarily ; but the commonest observation will substantiate its essential truth.
In conclusion, we would say to the young men, and particularly to such as are about entering upon busy
life : Be in earnest. Whatever is worthy of your attention at all, is entitled to your best energies of thought
and action. Do not despise the day of small things. If you would be sure of success in any department of
life, earn it. Do not place a false estimate upon yourself, but accept the estimate of others as the safest
standard upon which to act. Never despair of obtaining what you desire, and have a right to possess. Seek
to rise upon your own merits, rather than through the favor of friends. Do not defer action, in hopes of some
better starting-point in the future. In whatever you r*", act from principle, appealing to your own conscience,
and the revealed Word for decision in every doubtful case.
If, by adhering to all these requirements you should at length fail of riches, honor, fame and friendly
you may still have the consciousness of a lile well spent, and an eternal reward,
10
[INTRODUCTION.
' Book-keeping is ihe faithful and systematic record of business transactions.
'All business transactions consist in an exchange of values; and hence, 'Bookkeeping ii
the science by which these exchanges are recorded and their results shown.
* There are two methods of Book-keeping in general use, distinguished as Single and Doubl ^
Entry. Both of these methods may be made to show the same general results, but *the latte*
is conceded to be greatly superior, both from its better facilities for developing results, and it-«-
more excellent tests for determining Hip correctness of the work.
•The characteristic feature of Double Entry may be inferred from its distinctive titlt»
' Each transaction must be entered to two or more L.edger accounts, as two or more persoBn
or things are affected thereby.
'The three main books used in Double Entry are the Day Book, Journal and Ledger.
'The Day Book and Journal are sometimes combined in one.
"The number and character of the auxiliary books depend somewhat on the nature and
extent of the business, but more on the amount and kind of information desired. Of these
we shall speak more fully hereafter.
"The Day Book
Is the book of original entry, and contains a consecutive history of the transactions in the
date and order of their occurrence. '* It should be plain, concise, and unequivocal in its state-
ments ; neither confusing the mind by redundancy of language, nor leaving room for improper
inferences from lack of sufficient explanation. " As the records in this book are supposed to
be made when the transactions and all the circumstances connected therewith are fresh in the
mind, it is the only book allowed in court, in cases of litigation. ^ Its importance, from this
fact, and also on account of its being the basis of all the results shown by the other books,
cannot be overrated.*
* There is, perhaps, no one thing leading more directly to unpleasant and mischierous results than the lack of
clearness in the original record of transactions. So palpable is this fact to the minds of many experienced business
men, that they insist upon putting in black and white every thing which may affect the interests of any party,
however remote; writing out all contracts in full, and even preserving the figures upon which all agreements are
based. We cannot too strongly commend this practice, either in connection with the Day Book, or in a book kept
for the purpose. Much of the difficulty growing out of misunderstandings would be 'eadily avoided by reference
to all the circumstances affecting agreements ; and particularly if these circumstances ' re written down at tht turn
It' such agreements.
11
[NTRODCJGTION,
"The Journal
Is distinct from the Day Book, insomuch as its special use is to decide upon tne i^>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<iI entrj,
For example, suppose the journal entry to be " Cash Dr. To Merchandise." This expression
implies, of course, that Cash is to be debited, and Merchandise credited. Under Cash account
in the Ledger, on the debit side we say, " To Merchandise ;" and cari*y the amount to the
money column. Also, under Merchandise account on the credit side, we say, " By Cash," an4
carry the amount into the credit column. 'It is not really necessary thai any expression
should be made in the Ledger, as the fact which we are after is expressed by Xh&Jigures.
However, *the expression properly made is suggestive of the transaction, and hence is raiely
ever omitted by accountants. In posting from the Journal, be careful to enter in the column
It the left of the account, and directly opposite, the jiuge of the Ledger to which the amount
fe posted, * immediately after the amount is entered in the Ledger, but never before*
There is nothing in business that pays better than system ; and it should be rigidly en
forced at every step. No legislative body can be properly conducted without an " oi'der of
business," much less the intricate machinery of business itself. Let each student feel, there-
fore, that his success in life will depend, in a great measure, upon his habits of order, and let
him be as careful in observing the minute essentials in these exercises, as though his reputa^
tion depended upon it. Learnei's are too apt to think that in these initiatory steps no impor
tance should be attached to neatness and accuracy, as no real financial results depend upoN
them ; and, thus reasoning, adopt slovenly habits, which may follow them through life. It i«
a pungent truth, that " Whatever is worth doing at all, is worth doing well," and nowher«
will the sentiment better apply than in the work before us. It is scarcely to be expected thj'X
the beginner should be able to carry out his instructions so fully at the first as to avoid entirely
the " errors and omissions" which even more experienced persons have to guard against with
watchfulness and care ; but if he makes each error a lesson which shall preclude its own
repetition, his progress will be real as well as apparent, and the study of what he at first con-
sidered an abstract and difficult science will become as a pleasant pastime, and infinitely more
profitable.
It will be well in all these primary exercises, and until the student is so thoroughly drilled
in the principles as to be beyond the recurrence of the little perplexing errors which so much
annoy, to employ loose paper ruled for the purpose, and continue to write and re-write all the
books, until the proper results are satisfactorily achieved. This kind of practice is what is
needed to fasten theory^ and fit one for the more arduous toil of actual business.
Our earnest advice, then, is to attach importance to the most minute instructions bearing
either upon principles or arrangement, and, under no circumstances, to progress more rapidly
tiian the subject is fully understood.
• This instruction will, of course, apply only to cases where the post-mark is used also as a check mark It
ts customary with some accountants, in order to facilitate the labor of posting, to enter opposite the Journal entnes,
Oe/ore posting, the pnge of the Ledger to which eiich entry is to be posted ; and to indicate the/acf of posting by afl
additional post^mark. In this case, of course, the check mark and not the Ledger page, is subject to the abuv<
rnstci stioD
*»1
DAY BOOK, SET I.
NE\^;^ YOKK, JANUARY 1. 1859.
EL B. Bryant invests in business this day Cash amounting to
He also owes Peter Cooper on %, which is to be paid from the business
3 ' -—
Bought of Wilson G. Hunt, for Cash,
400 yds. English Broadcloths @ $3 . . $1200
200 yds. Domestic Cassimeres @ $1 . . 200
5 _
Sold Digby V. Bell, for Cash,
200 yds. Broadcloth @ $4
6
Sold H. D. Stratton, on %
10 yds. Broadcloth <^ $4
9
Bought of Francis & Loutrel, on our note at 90 days,
50 reams extra Foolscap @ $3.50 . . $175
20 do Superfine Letter @ 3.00 . . 60
10
Accepted Peter Cooper's draft on us at 10 days' sight, favor of W. H. Beebe
12
Sold S. S. Packard, on his note at 60 days,
10 reams Foolscap @ $4.00 . . $40.00
5 do Letter @ 3.50 . . 17.50
14 ■
Bought, on our note at 40 davs,
250 yds. Black French Cloths @ $4
Paid Cash for Set of Books for use of store
16 -
Sold R. C. Spencer, for Cash,
5 reams Foolscap . . .
@ $3.75
18
Sold E. G. Folsom, en %
20 reams Foolscap @ $4.00 ... $80
10 do Letter @ 3.50 ... 85
22
Received Cash of H. D. Stratton, on %
23
Paid our acceptance, favor of W. H. Beebe, in Cash
- 25
Sold J. T. Calkins, for Cash,
150 yds. Black French Cloths @ $4.60
28
Bought of J. D. Comstock, on «sg
4 dozen Soft Hats @ $24
31
Paid Cash as follows :
For Clerk Hire $60
For Rent of Store, one month 100
For Gas Bill 4
22
5G
5000
500
1400
800
40
285
500
57
1000
20
18
115
20
500
676
96
164
11141
75
25
JOURNAL— SET I.
NEW YORK, JANUARY 1, 1859. Br,
Or.
Cash Dr.
To Stock
" Stock" is the title chosen to represent the person investing ; in
this case, H. B. Bryant. It is credited with the investment according
to Principle 1. Cash is here received by the concern, and is made Dr.,
according to Frinciple 2.
Stock Dr. ...
To Petek Coopkr
St/)ck is debited for the liability assumed by the concern, Prin. 1.
Peter Cooper is credited, because the concern has assumed to pay
him a certain amount, and is, therefore, indebted to him. Prin. 6.
3
Merchandise Dr
To Cash
Merchandise coU $1,400, and is debited, Prin, S. Cash was paid
for merchandise, and is credited, Prin, 2.
5
Cash Dr
To Merchandise
Cash is debited for its receipts, Prin, 2. Merchandise is credited
for its proceeds, Prin. 3.
H. D. Stbatton Dr
To Merchandise
H. D. Stratton Dr., Prin, 6. Merchandise Cr., Prin, 8.
9
Mkrchandisk Dr
To Bills Payable
Merchandise Dr., Prin, 8. Bills Payable Cr., Prin. 6.
10
Pktbr Cooper Dr
To Bills Payable
Peter Cooper is here made Dr. because we have canceled our indebt-
edness to him by promising to pay the amount to another person
whoff he has authorized to receive it, Prin. 6. Bills Payable is
credited fv.r our new liability thus assumed, Prin. 6. (For the form
of the draft see note on page 15.)
The only change wrought in our affairs by this transaction is the
transfer of a liability from a personal account to a note. We must
now meet this obligation at its maturity, or be disgraced by having
oar paper protested.
i2
Bills Rbcbivable Dr
To Merchandise
Bills Receivable Dr., Prin. 4. Merchandise Cr., Prin. 8.
5000
5000
500
500
1400
1400
800
40
285
500
800
40
28(1
500
57
8532
50
501
57
8532
50
"50
J0UR:NAL,— SET I.
NEW YORK, JANUARY 14, 1859. Dr.
Cr,
Amounts brought forward,
Merchandise Dr.
1
3 To Bills Payable
Merchandise Dr., Pi in 8. Bills Payable C5r., Frin. B.
15
Expenses Dr.
To Cash .
. Expenses Dr., Prin. 1. Cash Cr., Prin, 2.
16
Cash Dr
To Merchandise
Cash Dr., Prin. 2. Merchandise Cr., Prin, S.
^ _ 18
E. G. FoLsoM Dr
To Merchandise
K G. Folsom Dr., Prin. 6. Merchandise Cr., Prin, 8.
22
Cash Dr
To H. D. Stratton
Cash Dr., Prin. 2. H. D. Stratton Cr., Prin. 6.
23
Bills Payable Dr.
To Cash . . .
Bills Payable Dr. Prin. 6. Cash Cr., Prin. 2.
. 25
Cash Dr.
1 To Merchandise
Cash Dr., Prin. 2. Merchandise Cr., Prin, 8.
— ^ 28
Mkrchandise Dr.
To J. D. COMSTOCK
Merchandise Dr., Prin. 8. J. D. Comstock Cr., Prin, 6.
31
Expense Dr.
To Cash
Expense Dr., Prin. 1. Cash Cr., Prin. %,
24
8532
1000
20
18
115
20
500
675
96
164
11141
50
75
8532
1000
20
18
lib
20
5<:
75
5UU
25
67ft
96
64
11141
2a
LEDGER,— SET I.
jm /lAabUiHM a^sumtdforthe Proprietor\ ch^ t rtr
lilir. V. and Amounts drawn out. } i^XOGii. (,Capiial iiitt,4ttii hy 'Ju rroprMior.) \^
1869
/an.
To Peter Cooper
600
1859
•/aft. 1
By Cash
5000
IDr.
/S63
Jan.
{Montif rto t t va d ,)
OsLsh..
(JToiMy d4»po$ta «/.)
To Stock
Mdse.
H. D. Stratton
Mdse.
iht ^ 4MU
1859
1
6000
Jan.
8
1
800
"
15
2
18
76
"
28
a
20
"
81
s
676
By Mdse.
Expense.
Bills Pftj'ablo
Expeuse .
€r
1
1400
2
20
2
500
2
164
CBr. 'Omr % agatntt kImL) Fet-SP OOOpSr. (BU % agatnt m.) (Ht,
1869
fan
10
To Bills Payable
Canfeua
000
1H69
Jan.
By Stock
Canceled
500
SDr. ( wAa* Mdf. *<M cotL) Xv^ erclia<iid.ise. ( ^f>^ ^«^ 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<n«« Mm.) E. Gt. F'olSOlIl. {MU % ofaimH uc.) <tt.
1869
/an.
20
To Mdse.
Bttrntm
•Ml
116
©r. {Our % agatfut Mm.) J. ID OoniStOOlS. {HU % ogaiMt ui) dr.
1869
/an.
28
By Mdse.
W* «a« Ua
M
26
TRIAL BALANCES.
GENERAL STATEMENT.
After posting all our transactions to the Ledger, in accordance with the principles laiid
down, we are enabled to deduce therefrom the following result : —
Dr,
Trial Balance. — ^Face of Ledger.
Cr.
5001
65131
500
2731*
40 1
500
57
184
115
11141
75
50
25
Assuip^d by the Concern^ Stock . . .
Received Casu
Our ^ against him . Petkb Cooper
Cost Merchandise
Our ^ against him . II. D. Stratton
Our notes redeemed . Bills Payable
Others^ notes received . Bills Receivable, Others'* notes disposed
Outlay Expense . . .
He owes us . . . . E. G. Folsom, .
J. D. CoMSTOCK . We owe him . .
Invested as capital .
Paid out ....
His ^ against us .
Returns from sales
His % against us .
Our notes issued .
Equilibrium
The above statement is called a " Trial Balance," for the reason most apparent ; " it is a
trial to ascertain if the debits and credits of the Ledger are equal, or balance. " It does not,
as some suppose, prove the Ledger to be absolutely correct, as there are many circumstances
under which the Ledger may balance, and yet be wrong. " This form of Trial Balance, how-
ever, is so nearly a test, that, under ordinary circumstances, it may be considered satisfactory-
"By observing the footings you will see that they exactly agree with those of the Journal,
which could rarely be the case if any of the Journal entries were omitted to be posted ; "and as
the footings of the Journal columns also tally with that of the Day Book, we must be satisfied
that all the original entries have found their way into the Ledger. "This leaves but two
chances of error in the accounts, viz. : from improper Journal entries, or from posting to the
wrong accounts in the Ledger.
"It will be seen that, in order to afford this additional test, we have found it necessary to
carry into the Trial Balance the total footings of the Ledger. "If we desired only to test the
balance of our Ledger, this would not be necessary, as will be seen from the following
example :
"Trial Balance.-
-Differences of Ledger Accounts.
Dr.
OK
Stock
Cash
Net investment . . .
. Amount on hand
Net cost ....
4429
1024
20
57
184
115
75
75
50
4500
1235
96
Merchandise . .
H. D. Stratton .
Bills Payable . .
Bills Receivable .
Expense ....
He owes us . . ,
Our outstanding notes
Others^ notes on hand
. Incidental expenses .
He owes us . . .
E. G. Folsom . .
J. D. CoMSTOCK
We owe him
£quilibriv
,m
531
5881
»
,^
27
ACCOUNT OF bTOCK.
Here we have a test of equal debits and credits quite as satisfactory as the other, and
much more brief, '* upon the principle of cancellation ; that is, permitting a debit to offset a
credit of the same amount, and vice versa. These forms have each its peculiar advantages,
and "accountants have found it very convenient at times to combine them in one. This latter
method is exemplified in another portion of the work.
We will now turn our attention more particularly to the object and sphere of the Ledger.
*' The important consideration with the business man, is to keep his resources and liabilities
constantly in view. '* He is thus enabled to estimate, not only theoretically, but practically,
4;he degree of his prosperity. ''A Ledger properly kept will show, at any time, all resources
(having a real or fixed value, and all liabilities of whatever kind. There is a class of resources,
however, that cannot be determined from the Ledger. ^ This embraces all property purchased
on speculation or subject to fluctuation in price. "The real value of such property can be as-
certained only by actual appraisal.
**By reference to the Ledger, in Set I., it will be seen that the only property represented
which is subject to fluctuation or speculation, is Merchandise. Had we sold our merchandise
f jr the same price for which we purchased it, " the difference between the sides would show
the value cf that remaining unsold, reckoning it at the cost price ; or had we credited Mer-
chandise account with only the cost price of that which was sold, the difference would alpo
show the value of that remaining unsold. But we have adopted the usual plan of crediting
the Merchandise account with its proceeds from sales, and as it was previously debited with
its cost, '*the difference will fail to represent the amount on hand in the exact amount of the
discrepancy between the cost and the proceeds from sales : and as we have no means of know-
ing what this discrepancy is, "our only method of ascertaining the value of unsold merchan-
dise, is to go to our shelves and estimate by actual inspection. ""This process is called
" taking an inventory," or " taking an account of stock."
This we now proceed to do, with the following result :
INVENTORY.
Merchandise remaining unsold, Jan. 31, 1859.
190 yards English Broadcloths @ $3 .
200 do Domestic Cassimeres @ $1 .
100 do Black French Cloths @ $4 .
4 dozen Soft Hats @ $24 .
15 reams Extra Foolscap . @ $3.50
5 do Letter Paper @ $3 .
We have now sufficient data to enable us to ascertain the exact condition oi our affairs on
the 31st of January, and to show us, beyond a reasonable doubt, how much has been gained
or lost in the month's transactions.
In the statements which follow, such forms have been adopted as would seem to place the
facts aimed at in boldest relief, having little reference to symmetry of arrangement, which will
be more fuLy appreciated when the truths inculcated are better comprehended.
It is hoped that the instructions given in this treatise will enable each student to originate
his owe forms, as well as to detect the truth, in whatever garb it may be clothed.
28
STATEMENT OF RESOURCES AND LIABILITIES.
Statement of Resources.
L Taken from the Ledger.
( Amount received
Cash ....•< Amount paid out
( Balance on hand . . .
i Our account against him . . .
H. D. Stratton \ Ilis account against us ... .
r He owes us |
Bills Receivable Others' notes received, and on hand
E. G. FoLSOM . He owes us
2. Taken from Inventory.
Mbrchandibk . Value of that unsold . ....
Total Resources . . .
6513
i 2084
!
i
75
4429
20
57
115
1333
40
20
i
1
7S
1
i
1
51
50
^55
-15
Statement of Idabilitiev.
Taken from the Ledger.
Bills Payable
j. d. comstock
Stock
Our Notes issued,
" redeemed,
" outstanding, ....
We owe him
Amount invested for the proprietor,
" assumed for "
Net investment
Total Liabilities^ {less unappropriated gaim,)
1735
500
5000
500
1235
96
4500
5831
t From these statements it appears that the Total Resources of the ) 15955 75
\ concern are
And the Total Liabilities (as shown) • ^831 _
Leaving an excess of. *124 75
It is plain that this excess of resources must have accumulated during the business, as at
the commencement the resources and liabilities were shown to be equal, upon the principle
thaf. the concern owed " Stock" or the proprietor for his net investment. Upon the same
principle Stock should be credited with the increasi or gain, and, as we have before intimated,
it would be proper to do so at any time when such increase or gain can be ascertained.
Should we now credit Stock with this excess— $124.75— it will equalize our resources and
liabilities, and place the proprietor's account in the same relative position to the business
which it occupied at the commencement, viz. : as showing the net investment.
Tlie fact most cleariy demonstrated thus far, then, is that, whether apparent or not, the dif-
ference between the resources of a concern and its outside liabilities is what the concern is
owing to the proprietor, or his real net investment, and should be equal to the excess of credits
of Stock or Partners' accounts, when those accounts are made to show their adequate re-
suits.
This will be mjre plainly seen in the following schedules :
29
STATEMENT OF KESOullCES AND LIABILITIES.
At the Commencement of Business.
Resources.
Gash
5000
5000
Liabilities.
Peter Cooper
Stock . .
500
4500
5000
On the 31st of January.
Resources.
Cash
Bills receivable
H. D. Stratton
E. G. Folsom
Merchandise
4429
57
20
115
1333
75
50
50
Liabilities.
J. D. Comstock
Bills Payable
Stock
— — —
96
1235
4624
75
5955
75 1
5955
7h
1
It will row be evident that "when the real condition of any concern can be ascertained, it
must exhibit equal resources and liabilities ; and that, if at any time during the business this
fact is not apparent, it is only from some temporary cause or convenience. Let us see if this
cause can be ascertained.
By reference to the statement showing the resources and liabilities of the concern on the
31st of January, it will be seen that all the open Ledger accounts are there represented ex-
cept Merchandise and Expense. It is true that the amount of merchandise on hand, as shown
by the inventory, is reckoned among the resources, but this had nothing whatever to do with
the Mercha dise account in the Ledger. Why were these two accounts omitted 1 "Evi-
dently because they were not necessary in showing the resources and liabilities. "What then
do they show? **The debit of Merchandise account shows the cost of merchandise, and the
credit the proceeds from sales. If to these proceeds we add thf anticipated proceeds of that
remaining unsold, we shall have the total in value of what has been produced by merchan
dise. From this amount if we ded .cl its cost, we shall get the gain on merchandise ; or, if
the cost be more than the proceeds, the excess will be the loss.
The credit side of merchandise account, or the proceeds from sales is $1706 25
The inventory of mercha. .aise unsold, or the anticipated proceeds is. 1333 50
Making Total 1 roceeds 3039 75
The debit side or cost of merchandise is 2731
Which, deducted from the proceeds, shows a gain of. $308 75
It would now seem, at first view, that we must have made in business, $308.75, and such
would be the case if we had incurred no further expenses than what appear on the debit side
of our Merchandise account. Now, if we dissect the items which make up our Expense ao-
oount ($184), we shall find that, of that amount, $20 was paid for a set of books, in which
30
STATEMENT OF LOSSES AND GAINS.
to record our business transactions, and the balance, $164, for store rent and clerk hire.
" It is reasonable to suppose that all these expenses were incurred to facilitate the purchase
and sale of merchandise, as that is the only property we have dealt in ; and, such being the
case, would it not have been proper to debit Merchandise account with these items, mstead of
Expense 1 Had this method been pursued, our gains on merchandise would appear to be
$184 less than they now show. Our gains in business would thus be reduced to $124.75,
which, it will be seen, exactly agrees with the excess of resources already shown. "Inasmuch,
therefore, as we choose to exhibit our contingent expenses under special titles, such as " Ex-
pense," we must not forget that the amounts thus taken from the legitimate accounts for which
the cost was incurred, thereby forcing such account to show an excessi\-e gain, must ultimately
be used to cancel that excess. This fact will be more apparent l^ the following
Statement of Iiosses and Gains.
'Returns from Sales jl 1706
Anticipated returns (mdse. unsold) . . j 1333
Merchandise
Total Returns v. 3039
Cost !l 2731
Gain on Merchandise
Expense
Outlay
No Returns
Loss on Expenses
184
Ifet Gain
85
50
75
308 !7r
i 184
i 124
75
From the foregoing schedules, it will be readily seen that "there are two classes of a*
counts,* ^ from one of which can be ascertained the resources and liabilities of the concern,
and from the other, the unappropriated ffains and losses. We learn, moreover, that whenever
the resources and liabilities of a concern can all be shown they nutsi be equal; and that, "if
\t any time these are not apparent on the Ledger, it is from the use of certain temporary
accounts for the purpose of containing the gains and losses of the business, until such time as
it may be convenient or desirable to distribute them under their proper accounts.
As we shall n- ed frequently to refer to these two classes, and desire them in their applica-
tion to be thoroughly understood, we will denominate them Real and Representative, with
the simple definition that ^Real accounts are such as exhibit, from an excess of debits or
credits, real resources or liabilities, and *^ Representative such as represent the stockholder or
stockholders, by exhibiting such gains or losses as are ultimately to be carried to his or their
proper accounts. *'When it is further understood that all gains in business must appear, either
in an increase of resources, or a decrease of liabilities ; and that all losses must appear, either
in a decrease of resources, or an increase of liabilities, it will be sufficiently plain that the two
Classes of accounts we have named, must always run exactly parallel.
• Formerly authors and teachers were accustomed to divide accounts into three classes, under various titles
So far «a we know to the contrary, the credit of first reducing this number to two, and of giving substantial reasons
for the division in clear and satisfactory analyses, belongs to Thomas Joxes, author of " Book-keeping and Account-
kntship," published in 1853. Mr. Jones distinguishes by the appellative terms " Primary" and " Secondary," cltw i-
ifying " Stock" or Partners' accounts with those which do not show resources or liabilities.
31
QUESTIONS if'OR REVIEW.
We will now make a practical application of these lessons, in restoring our Ledger to its
proper condition. By referring to the Stock acxjount, you will see that it has remained un-
changed since the commencement of the business ; while we know, from the foregoing state-
ments, that the business itself has changed in a material sense. You may remember that
** Stock account was opened for the purpose of showing the net capital or investment. **It
answered this purpose thoroughly at the start, and would do so even now, if the capital or
investment had remained the same. But such is not the case, and consequently. Stock account
fails of its full mission in just the amount of the fluctuation of invested capital. We have
already shown, by two processes, what this fluctuation is, and it is now "with a view to re-
storing Stock account to its normal condition, that we " close up" the Ledger accounts, ex-
hibiting the grand result by the balances of resources and liabilities. We wish this process
distinctly noted, as the entire theory we have sought to advance is herein practically demon-
strated.
QUESTIONS FOR REVIEW.
GENERAL INSTRUCTIONS.
1. "Why should the student keep the Ledger in view when journalizing ? 2, When should the check-mark ( \^ )
be made in the Day Book, and where ? 3. What Is transferring to the Ledger called ? 4. Why is it neces-
sary to observe care in posting? 6. "What is the first account opened in the Ledger? 6. "When an account
Is posted to the Ledger what expression should be made? 7. Is it necessary that a7iy expression should be
made ? 8. Of what should the Ledger expression be su^estive ? 9, "When should the page of the Ledger
to which an amount is posted be entered in the Journal, and where?
GENERAL STATEMENT.
10 "Why is a Trial Balance so called ? 11. Does the Trial Balance prove the Ledger to be absolutely cor-
rect? 12. Is the test afforded by the Trial Balance usually satisfactory ? 13. What test is afforded proving
»11 the Journal entries to have been posted? 14. What to prove that all the original entries have been
Journalized? 15. When these precautions are used, how many chances are there for errors which may
escape the Trial Balance test? 16. What must be the condition of the Trial Balance which affords these
tests? 17. Would it be necessary to carry the total footings into the Trial Balance did we not desire this
additional security? 18. Can a correct Trial Balance be had which will contain simply the balances of the
Ledger accounts ? 19. Upon what principle is this effected ? 20. Are these two forms of Trial Balance ever
combined in one? 21. What is the important consideration with the business man in connection with his
accounts? 22. What does this enable hira to do? 23. What will a Ledger properly k^pt show at any time?
24. What kind of resources cannot be shown from the Ledger ? 25, How is the real a alue of such property
ascertained? 26. Is there any property of this kind represented in Set I., and what is it? 27. What wiH
the difference in the sides of Merchandise account show, if debited and credited with the same value ? 28.
When the Merchandise account is debited with the cost of merchandise, and credited with its proceeds, how
much will the difference between the sides fail of showing the value of merchandise unsold? 29. When the
account is so kept what is our only method of ascertaining the value of merchandise vmsold ? 30. What is
the process called? 81. When the real condition of a concern is stated, what must it exliibit? 32. In the
statement of resources and liabilities on page 29, why were not the Ledger accounts of Expense and Mer-
chandise takei. cognizance of? 83. What is shown by these accounts? 34, Is there any similarity in these
accounts ? 35. What must be borne in mind with reference to the nature of such special accounts as Ex-
pense ? 36. How many classes of accounts are there ? 37. What can be learned from each ? 38. When the
resources and liabilities of a concern do not show to be equal, what must be the reason ? 39. What accounts
arfl called Real ? 40. What Representative ? 41. How is it shown that these two classes of accoimts run exactly
parallel? 42. For what purpose is Stock account opened? 43, Why does not Stock account perpetually
represent the net investment? 44. For what purpose is it necessary to close up certain of the Ledger
•ccounts ?
32
CLOSiJSG THE LEDGER.
CLOSING THE LEDGER.
This phrase is much more technical than descriptive ; and, although the process may be
easily learned, experience has taught us that ' the great difficulty in the matter with learners ia
to be able clearly to understand the object to be attained by " Closing the Ledger." Wo will
endeavor to explain.
'To " close up" an account in the Ledger is to put an end to its airrent condition. This maj
De for a temporary purpose only, or it may be final. * In closing a Real account, if the side
D6 equal, it is necessary only to add up the two sides, and draw red^ lines underneath the
amounts of each. The account thus becomes canceled, and, so far as our business is affected,
is as though it had never been. * If the sides be not equal, and we desire to close the account,
for the purpose of showing the result, we enter upon the smaller side, in red ink, an amount
which will make it equal to the larger side. This will, of course, be the difference between the
Bides, or the excess of the larger, and must be shown as such, either in a continuation of the
same account, or in another account of the same import. The balance thus shovv^n will be
either a resource or a liability. If the sides of a Representative account be equal, and the proceeds
all shown, it is also closed by adding up the debit and credit columns, and drawing red lines
underneath ; * if unequal, the excess will be entered on the sraaller side in red ink, and will re-
Dresent a gain or a loss. The columns will then be added, as in the other case.
So much for the process. Let us now ascertain for what purpose the Ledger accounts are
closed at all, and each step will then suggest its own philosophy. We have already shown
that 'just as soon as the invested capital begins to fluctuate or change in value, Stock account
ceases to represent the real interest of the proprietor. ''This is simply because the gains and
losses are not carried to Stock account when they occur, but are allowed to remain in the Repre-
sentative accounts. *As often, therefore, as we wish to show what is the proprietor's interest in
he business, or what the concern is owing him, we must take these gains and losses from his
Representative accounts, and carry them to the Stock account. We do this by " closing up" the
atccounts, and transferring their balances. * The usual method is to open a general account,
vSalled " Profit and Loss," or " Loss and Gain," and first transfer to it all the gains and losses.
" This enables us to get the net gain or the net loss in one amount, which we carry to Stock •
" if it be a net gain, it will go to the credit side of the account, increasing the investment; "if
a loss, to the debit side, decreasing the investment.
"This can all be accomplished without disturbing the Real accounts. "If, however, it ia
desired to show in a tabular form the resources and liabilities of the concern, we can easily do
so by opening an account for this purpose called " Balance," and close the Real accounts into
it. " Or if we wish to show an era in our business, we can close up these accounts, and bring
he balances down, as shown in the Ledger which follows.
'* The object, then, of closing the Ledger accounts is to restore the proprietor's account to
the same relative position towards the business which it occupied at the commencement, viz..
as showing the net investment, or net interest of the proprietor.
" An entry in red ink on the Ledger, denotes that the amount thus written is to be trant-
/erred, either to some other account, or to another position under the same account. It
also shows that the entry is _first made in the Ledger, not having passed through the usual pre-
liminary books of entry. '* Red ink entries are always transferred to the opposite side from
where they first appear, " for the reason that they indicate an excess of that side.
B 33
OEDER OF CLOSING.
ORDER OF CLOSING.
In closing the Ledger accounts, for the purposes of a general exposition of affairs, the
following order should be observed :
*• Open an account with " Loss and Gain,*' (if not already opened,) and another with
" Balance ;" *' the former to exhibit the losses and gains, and " the latter the resources and
liabilities.
2.
" Ascertain from the inventory if any property remains unsold ; and, if so, credit each
account for which such property was originally debited with the value of that unsold, making
the entry in red ink, " 8y Balance," and transferring the amount directly to the debit side of
Balance account, making this entry in black ink, " To Merchandise," or " To Real Estate," or
any other account from which the amcunt is transferred. ** The Ledger accounts will each
show, now, one of the four following results, viz : a Resource, a Liability, a Gain, or a Loss.
3.
** Omitting Stock account, (or Partners' accounts,) commence with the first account in th*'
Ledger. First ascertain which of the above results it shows, and make the closing entry ao
cordingly. If the difference represent a resource, or a liability, enter upon the smaller sidr.
in red ink, '■^To,^'' or " By Balance," as the case may be, and transfer the amount in black in^
to the opposite side of Balance account. If the difference represent a gain or loss, enter o»
the smaller side in red ink, " To" or " By Loss and Gain," and transfer the amount, in the
same manner to Loss and Gain account. Close all the accounts (except Stock or Partners')
and transfer the balances as directed. "The Loss and Gain account will now show, on the
debit side, all the losses, and on the credit side, all the gains, the difference being the net gain
or net loss. ^'The Balance account will show on the debit side all the resources, and on the
credit side all the liabilities, (excepting the result of Stock or Partners' accounts,) the differ-
ence being the real interest or present investment of the proprietor or proprietors.
4.
" Take a " Second Trial Balance," or a Trial Balance of the remaining open accounts :
Stock or Partners', Loss and Gain, and Balance. " If the balances have been properly trans
ferred the debits and credits of these accounts, taken together, must be equal.
6.
*" Close the Loss and Gain account into Stock, or, if it be a partnership business, into the
partners' accounts dividing the gain or loss according to agreement. *' The Stock or Partners'
accounts will now show the original investment, increased by the gain, or decreased by the
loss ; the difference being the present net investment. *' As the Balance account shows the
same thing, they must, of course, agree.
6.
** Close Stock account (or Partners' accounts) into Balance account, which must equalize that
account, it showing now, ** on one side the total resources, and on the other the total liabilities,
and presenting in the most condensed form, the exact present condition of the business.
The student will please observe this order in making the closing entries which follow. It
vill be seen that this Ledger presents the same accounts as the preceding, and differs only in
having disposed of the gains and losses. The balances of the Real accounts (except Stock)
agree with the Trial Balance, showing balances on page 27, while the Representative account*
bave ceased to exist, their results being exhibited in the Stock account.
34
gr.
LEDGER, SET I.— Closed.
stock.
Cr.
1859
Jon.
1 To Peter Cooper
5 1 Balance
1
2
500
4624
75
185*
Jan
1
31
By Cash
Loss and Gain
Slim
By Balance mtis
t
1 5000
41 124
75
1 5124
7!
! 5124
. 1
J}
FA
1
f 4624
75
ir.
Cash..
€x.
1*
is.-}'
Jan
1
5
1(
25
2J
To Stock
Mdse.
Mdsc.
H. D. Stratton
Mdse.
e.'n.i 7a
•MM
AAJHi
To Balance
1
1
?
2
2
5000
800
18
20
675
71
1855
Jan
«
3
IJ
2;
31
31
By Mdse.
Expense
Bills Payable
Expense swi
Balanca
1 1400
2J 20
2i 500
2J! 164
4429
7$
1 6513
7^
6513
75
Fen
1
1 4429
^
H 1
ir.
JPeter Cooper.
1859
Jan 1(
To Bills Payable
1
500
1855
Jan
1
By Stock
€x.
500
gr
.
iMerdiandise.
Cr.
1859
!
1859
Jan.
3
To Cash
ll
1400
Jan.
5
By Cash
1
8G0
"
10
Bills Payable
1,
235
6
H. D. Stratton
2
40
"
14
« ii
2'
1000
12
Bills Receivable
2
57
50
«
28
J. D. Comstock sra
2
96
16
Cash
3
18
76
"
31
Loss and Gain
303
75
20
25
E. G. Folsom
Cash
3
3
115
675
1333
31
BafancB
en
.5«
3039
75
3039
75
Feb, 1
To Bfllflnce
1333
50
— -\
1
gr
.
H
. D.
Stratton.
€x.
1859
'Jan.
6
To Mdse.
To Balance
40
if*
1
40
1859
Jan.
It
22
31
By Cash
Biihince IniK
2
20
20
40
-rr
40
Feb.
20
1
gr.
Bills P*ayable.
1859
1859
—
r i
Jan.
23
To Cash
S
500
Jan.
9
By Mdse.
1
235
31
Balance
1286
«
10
14
Peter Cooper
Mdse.
1
2
500
1000
1735
By Balance
LBS
!
1735
1
F<i>.
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 <rith a cash capital of $6000. 2d, Bo't of E. R. Felton, for
3830. 100 bbls. Flour, @ $8. 3d, Sold W. E. Crocker on %, 20 bbls. Flour, @ $8.50. 4th,
Bo't on our note, @ 30 days, of C. S. Sill, 20 pieces Calico, @ $3 ; 10 do. figured Silks, @ |9.
5tn, Sold E. C. Packard, for cash, 30 bbls. Flour, @ $8.25. 6th, Paid cash for set cf
Socks for use of store, $15, 7 th, Bo't of E. P. Selmser, for cash, 200 bbls. Genesee Flour, @ $9 ;
paid Drayage on same, in cash, $3. 10th, Sold Hiram A. Pryor on his note @ 30 days, 100
bbls. Genesee Flour, @ $9,50. 12th, Sold W. H. Clark, for cash, 10 pieces Calico, @ $3.75.
i5tn. Paid Cash for repairing store, $15. 16th, Bo't of J. D. Williams, on %, 50 pieces
ftlerrimac Prints, @ $5.- I7th, Sold R. C Spencer, on %, 25 pieces Mernmac Prints,
& $5.35. 20th, Sold R. W. Hoadley, for cash, 50 bbls. Genesee Flour, @ $9.50. 21st, Re-
ceived Cash, in full, of W. E. Crocker's %. 22d, Paid J. D. Williams Cash on %, $100.
2oth, Paid Clerk hire in full to Feb. 1, $50. 27th, Sold E. B. Rockwell, on %, 50 bbls.
Genesee Flour, @ $10. 29th, Received Cash on % ->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<a<i«e account closed when the sides are unequal? 6. At what stage of the bvujiaess
does Stock account cease to represent the proprietor's interest ? 7. Why is this ? 8 How can we at any
time ascertain the proprietor's interest ? 9. What is the usual method of carrying gains and losses to
Stock account? 10. What is the advantage of opening a "Loss and Gain" account? 11. To which side of
Stock account are gains carried, and how do they affect that account? 12. To which side are losses carried,
and how do they affect the account? 13. Can the gains and losses be thus disposed of, without disturbing
the Real accounts? 14. What is the object of opening a "Balance" account? 15. How can we dispose of
the amounts properly carried to Balance account, if we \vi3h merely to show an era in our business ? 16.
What, then, is the prime object in closing the Ledger accounts? 17. What does an entry in red ink on the
Ledger denote ? 18. How are red ink entries always transferred ? 19. Why transferred to the op/josite side ?
ORDER OF CLOSING.
20. What is the first step in closing the Ledger? 21. What results are shown by the " Loss and Gain"
account? 22. What by the Balance account? 23. What is the second step ? 24. When the inventories are
all entered to the proper accounts, what will be shown by the Ledger ? 25. What is the third step ? 26.
When the balances have been properly transferred, what will the " Loss and Gain" account show ? 27. What
the " Balance" account ? 28. What is the fourth step ? 29. Of what use is the " Second Trial Balance f 80.
What is the fifth step? 31. When the net gain or loss has been transferred to Stock or Partners' accounts,
what will those accounts show ? 82. Why must the balance of these accounts agree with the balance of
Balance account ? 88. What is the sucth step ? 84. What will the Balance account show when complete ?
GENERAL REMARKS.
8b What is shown by the Balance account in Set I ? 86, Have we sufficient data here to enable us to open
» new set of books ? 87. How can we represent the state of our affairs in the present Ledger ? 38. Has this
esult been shown ? 89. Was there really any necessity for opening a Balance account ? 40. Why was it done ?
41. Is this account often exhibited on the Ledger in actual business? 42. How are its contents otherwise
shown ? 43. Why does not the transferring of balances from one account to another disturb the equilibrium
of the Ledger ? 44. What is this transferring of balances equivalent to ? 45. Will you explain this by
analysis ? 46. Where might the balances carried to the Loss and Gain account properly be transferred ? 47.
Why is it not done ? 48. Upon what principle are accounts "balanced?" 49. How is an account made to
balance? 50. Where does this excess subsequently appear ? 51. When all tho balances except Stock are
transferred tc Loss and Gain and Balance accounts, why must these, with Stock account, contain equal debits
an- ci edits? 62. What is shown by the Stock account at this stage? 53. What by the Balance account?
54. What discrepancy is there in these two accounts ? 55. Why will this discrepancy exactly tally with the
difference between the sides of Loss and Gain account ? 66. What will the Stock account show when this
discrepancy is transferred from the Loss and Gain account ? 57. Why will the Stock account now agree with
Balance ? 58. What particular inter(5st is always represented by a set of books ? 69. What relation does
Stock acctunt sustain to\»ardi the business ? 60. If the credit side of Stock account exceeds the debit, how
do«r It affect the business ?
F 41
INDEX TO LEDGER B,— SET II.
INDEX TO LEDGER B— SEr II.
The purpose and importance of an Index to the Ledger will be immediately apparent
Where there is a large number of accounts much time is saved by having an alphabetical
list to which to refer. The example given below will be sufficient to show the general pur-
port of an index, but does not present the best form. The form in general use is so common
and so very simple, that any attempt at explanation would be useless. We have not thought
it necessary to give the index in connection with any other Set, as it would merely occupy
space without affording information. We have chosen this page instead of the one next pre-
ceding the Ledger, because it best answers our purpose so to do.
Index.
::
A.
N.
Bryant, II. B.
B.
... I
0.
Bills Receivable .
Bills Payable . .
... 1
... 1
Cash ....
C.
... 1
Packard, S, S.
P.
•
Comstock, J. D. .
... 8
Dawson, Warren &
D.
Hyde . . . .
... a
Q.
Expense ....
E.
... 2
Beal Estate . .
R.
•
1
Folsom, E. G.
F.
•
... 1
Stratton, H. D. .
S.
1
t
Gantz, Jno. W. .
G.
. . .
T.
H.
Union Bank Stock
Union Bank . .
u.
f
IvisoE & Phinney
I.J.
. . . s
V.
K.
w.
L
X. Y.
Merchandise . ,
M.
. 1
z.
Mortgage Payable
s
45
SET 11.
DAY-BOOK, JOURNAL, LEDGER,
CASH-BOOK, BILL-BOOK.
[Continuation of Set Z]
BUSINESS PROSPEROUS.
DAY-BOOK— SET II.
NEW YOEK, FEBKUAEY 1. 1859.
^'
The following Resources and Liabilities with which we commence busi-
ness this day, are taken from the Balance Account of II. B. Bryant's
Ledger A.*
Resources.
Cash in hand $4429 75
Notes on hand .... 57 50
Merchandise per Inventory 1833 50
E. G. Folsom owes on ^ 115 00
H. D. Stratton owes on % 20 00
5955
79
iM)
212
«2
500
103
J
Liabilities.
Notes outstanding ... 11235 00
Balance due J. D. Comstock ..,.,,. 9G 00
H. B. Bryant's net Capital 4624 75
$5955 75
7fi
'/
y
Received in Payment,
Cash $iO
Balance on ^ • .... 62 — $72
y
Q
y
Bought of Ivison and Phinney,
150 Sets Spencerian Writing Books .... @ 75c , $11250
100 Copies Bryant &; Stratton's Book-keeping @ $1 . 100 00
Paid them, Cash 50 CO
50
Order on E. G. Folsom 50 00
Balance on ^ 112 50 — 212 50
«i
y
50 " Tip Top » Gold Pens, first quality . . . @ $1.25 ....
1
50
y
Exchanged Notes with Digby V. Bell for our mutual accommodation,
each drawn at 30 days
H
y
Sold J. H. Goldsmith, for Cash,
50 Sets Spencerian Writing Books @ 85c. . 42 50
25 do Bryant and Stratton's Book-keeping . . @ $1.12 . 28 00
5 Reams Letter Paper @ $3 . . 15 00
1 Doz. Gold Pens @ $1 50 * 18 00
50
6926
25
• Set I.
44
DAY-BOOK— SET II.
NEW YORK, FEBRUARY lO, 1859.
Amount brought Forward
10
/ 1 Bought of Wm. B. Astor, Store and Fixtures, at
y j Paid him, Cash
Bond and Mortgage for balance
12 _
11000
9000— $lv'>,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 <Sz> P'tLiniiey. Cr.
1869
Feb.
8
• •
By Mdae. I
112
M
IDr. IDa^wson, "W^arreii <Sz> 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<v
count Sales of the same.
Our charges for Storage and Advertising, $ 25 00
Our Commission on Sales, 300 00
J. R. Wheeler & Co.'s net proceeds 11575 00
J
V
Shipped per Steamer Swiftsure, and Consigned to Cobb & Co., New Haven,
to be sold on our % and risk,
100 bbls. Flour from Store, valued at $9 900 00
800 bush. Corn, (^I. B. S.'s Consignment) @ 80c • , • • 640 00
Paid Cash for Insurance — premium and policy ..,',. 8 70
8 IZZZIl
/:
11900
Paid Dawson, Warren & Ilyde Cash to balance 5K
Received Cash of S. S. Packard in full of %
9
y
./!
Sold Charles Claghom, for Cash,
2000 bush. Oats, (M. B. S.'s Consignment) @ 75c. .
500 bush. Wheat, do do @ $1 50
1500 00
750 00
CSosed M. B. Scott's Consignment, and rendered him an Account Sales of
the same.
Our charges for Storage and Advertising 40 00
Our Commission on sales 72 25
M. B. Scott's net proceeds, remitted in cash ... . 2602 75
1548
62
52
2250
2715
Y0647
76
70
50
95
59
DAY BOOK, SET III.
NEW YOKK, MAKCIi lO, 1859.
Amount brought forward
10
Received Cash of Jno. W. Gantz, in full of jg . .
11 _
The steamer on which we shipped good« to Sheldon & Co., Albany, was
sunk by collision, and our goods, which were rescued in a damaged con-
dition, and upon which there was no insurance, were sold at auction
for cash
12 .
Received from C. S. Dole & Co., Chicago, to be sold on their % and risk,
500 bbls. Extra Superfine Flour,
1000 do Superfine do
3000 bush. Kye,
Paid Freight in Cash «••
— 13
Sold E. R. Felton, at thirty days, on %,
500 bbls Superfine Flour, (C. S. D. 6i Co.'s Consignment, @ $8 00
// —
D. V. Bell has returned our note issued Feb. 7, and we have surrendered
his of the same date and amount
: 15
Paid Cash for Taxes on Real Estate • 150 00
Also for Clerks' Salary tp date 125 00
16
H. B. Bryant has drawn Cash for private use
. // _________^_____________— _
Received Cash of S. S. Packard for his note now due
17
Received Cash of J. T. Calkins in full for his note
//
Received advice from Cobb & Co., New ilaven, of the sale of 150 bbls.
Flour and 800 bush. Corn, shipped them 02. the 7th inst.,
Net proceeds remitted in Clash
60
I
v/
/
J
I
/
70647
375
150
300
4000
500
275
500
57
200
56
1200
78205
45
BAY BOOK.— SET III.
NE^V YORK, MARCH QO, 1859.
Amount brought forward
20
V
Sold John R. Penn, for cash,
500 bbls Extra Superfine Flour, (C. S. D. & Co.'s Consignment)
22
/
Sold for Cash, to E. IT. Bender, Albany,
30 Shares Union Bank Stock @ $100
25
Paid our Note m Cash, favor of Smith & Co., due Feb. 26 . 1000 00
Interest due on same to date 583
Paid Cash for our Note of the 14th ult., at five months, favor of A. M.
Clapp,
Face of Note
Cash paid 15G5 57
Discount off to July 18 34 43
1600 00
78205
4500
3000
1005
1600
4S
83
y
y
Sold J. H. Goldsmith, for Cash
500 bbls. Superfine Flour, (C. S. D. & Co.'s Consignment) @ $8 50 .
Accepted J. R. Wheeler & Co.'s Draft on us @ three days sight . . .
27 ■
4250
11575
Closed C. S. Dole & Co.'s Consignment, and rendered them an Account
Sales — 3000 bushels Rye remaining unsold.
Our charges for Storage and Advertising 50 00
Our Commission on Sales 318 75
C. S. Dole & Co.'s net proceeds 12081 25
Paid our Note favor of Francis & Loutrel, in Cash
Remitted C. S. Dole & Co. Cash to balance %
31
Paid sundiy Expenses this month, in Cash
12450
235
12081
75
128977
25
53
61
JOURNAL— SET III.
NEW YORK, MARCH 1, 1859. Dr.
Sundries
Merchandise - .
Union Bank Stock
Real Estate . .
Cash ....
Dr. To H. B. Bryant
Or.
25693
28
Bills Receivable
S. 8. Packard
Jno. W. Gantz
Union Bank .
H. B. Bryant
Dr.
To Sundries
♦' Bills Payable ....
" J. D. Comstock . . .
" Ivison & Phinney . . .
*' Dawson, Warren & Hyde
'* Mortgage Payable . .
2118
3100
12000
6290
757
52
375
1000
12606
75
150
Shipment to Albany Dr.
To Sundries
" Merchandise
" Cash . . .
" Shipment to Albany" is a new account, opened to represent a particular
enterprise, and although it relates to merchandise, it is distinct from the
merchandise in store, and is given this new name to mark that distinction.
It is as though we had sold our merchandise for $740, and immediately
invested tlie same in this adventure. The account is debited with its cost,
and merchandise and cash credited, as per formula on page 17.
Cash
Dr.
To Merchandise
J. R. "Wheeler &; Co.'s Consignment
To Cash
The account here opened — J. R. Wheeler & Co.'s Consignment — is pre-
cisely the same, in effect, as would be an account with J. R. Wheeler <k
Co., although it really represents the property of that firm, which we re-
ceive, as commission merchants, to seU. Instead, therefore, of debiting
the Consignment account with the value of the property, we debit it only
with what it has cost us.
Sundries
Ivison & Phinney ,
Cash ....
Dr.
To Merchandise.
Ivison & Phinney's draft on us is simply their order for the amount we
owe them, and for which they stand credited on our books. If we accept
or pay the draft, we must, of course, debit them, which will close their
account.
Uish
Dr.
To Real Estate
741
52
100
112
44
500
39848
3335
96
112
62
9000
740
1
50
50
bit
100
156
{XJ
50
75
500
30848 7&
JOURIf AL — SET III.
NEW YORK, MARCH 4=, 1859.
Dr.
Ct
Amount brought Forward 39848 1 75 I 39K48
4
J D. Comstock Dr
To Cash.
Bills Receivable
Dr.
To J. R. Wheeler «fe Co.'s
Consignment . .
!|
M B. Scott's Con-
signment
Dr.
To Cash
Cash
Dr.
To J. R. Wheeler's Con
signment
J. R. Wheeler & Co.'s
Consignment
Dr.
Shipment to New Haven Dr.
Dawson. Warren )
& Hyde f
Dr.
To Cash
Oish
Cash
To M. B. Scott's Consignment
M. B. Scott's Consignment Dr,
To Sundries
To Storage and Advertising
" Commission
« C-ash
68
To Sundries
To Storage and Advertising
" Commission
« J. R. Wheeler & Co. .
The entry above is made for. the purpose of ex*, biting on our books the
net amount owing to J. R. "Wheeler <fe Co., as the result of our business
with them so far ; and as their Consignment account was used to show
the facts connected with the sale of their property, we can ascertain from
this account how much they are entitled to, as net proceeds, which must be
the difference between the sides of that account, when its entire cost and
proceeds are properly shown; in this case, |(11676. The effect of this en-
try will be to close the Consignment account, and carry its results to the
account of J. R. Wheeler <k Co,
To Sundries
To Merchandise ....
" M. B. Scott's Consignment
" Cash
96
4500
175
7500
11900
1548
Dr i
To S. S, Packard ....
9
Dr
62
52
2250
2715
[70647
70
50
96
4500
t/5
7500
25
300
11575
75
900
640 ;
8 170
50
62
52
2250
40
72
2602 75
25
95
j [70647' I
95
JOURI^AL — SET III.
NEW^ YORK, MARCH 10, 1859. j^r.
On
Amount brought Forward
10
Cash
Dr.
To J. W. Gantz
11
Dr.
Cash
To Shipment to Albany . .
Shipment to Albany is treated precisely as any property or representative
account ; having been debited with its cost, we now credit it with its pro-
ceeds. The difference will be, in this case, our loss.
C. S. Dole & Co.'s
Consignment
Dr.
To Cash
13
£. R. Felton
Dr.
To C. S. Dole & Co.'s Con-
signment
bills Payable
Dr.
To Bills Receivable
15
Sundries
Real Estate
Exp*; use .
Dr.
To Cash
70647
375
150
95
16
Private Account
Dr.
To Cash
According to the principles already expressed, it would be projier to
debit H. B. Bryant with this amount, as he has drawn it from the' busi-
Dess for his own private use. " Private Account," then, is simply a sub-
division of H. B. Bryant's, or Stock Account, and shoidd, eventually, be
closed into this accoimt.*
Cash
Dr.
To Bills Receivable
Cash
Dr.
To Bills Receivable
300
4000
500
150
125
500
57 50
200
706*7
375
150
{7005 45
300
4000
500
275
05
500
57 5(
200
n005 45
•Some authors teach the propriety of opening a " Private Expense " account for transactions of this kmd,
tiosing it into Loss and Gain, the same as the general Expense account of the business. It requires no great tivct
to see the fallacy of this reasoning— if, indeed, it is properly so called— as, in such a case, the prosperity or
adversity of the business would depend, not on the real amount of ^aiw or loss, but upon how much was drawn out
for private use. There is no more justice in debiting Loss for sums drawn from a concern by the sole proprietor,
than there would be for sums drawn by a partner. The authors who propagate this fallacy, usually give two rulet
for journalizing— both ' infallible,"— one for stock books, and another, and different one, for partnership books.
64
JOUniS^AL — SET III.
NEW YORK, MAUCH 18, 1859.
Dr.
Amount brought Forward
18
Cash
Dr.
To Shipment to New Haven
20
Otfh
Oi8h
Dr.
To Union Bank Stock . , .
25
Sundries
Bills Payable
Interest . .
Dr.
To Cash
It should be borne in mind that notes, like cash, ought always to be
debited and credited with the value written upon them. If they are
really worth more or less than this expressed value, that diflference
must be shown in some other account. In the case above, the face
of the note is |1('00 ; but the worth of the note, with the interest due
upon it, is $1005.83 ; and this is the amount we are obliged to pay, in
order to cancel it. We therefore debit Bills Payable with the face of
the note, and Interest with the amount we pay tor Interest.
Bills Payable Dr. To Sundries
To Cash
" Interest
In this case, the note is really worth Um than its expressed value, aa
we are obliged to pay for it only $1666.67, which is $34.43 less than
its face. We here debit Bills Payable with the face of the note, a4y
cording to principles laid down, and credit Cash for the amount <rf
cash paid, and Interest for the difference, that being the amount pro»
daced by Interest, or by paying our note before it is due.*
C^sh
Dr.
To C. S. Dole & Co.'s
Consignment
5 Co.'s ) I
T7005 145
1200
Dr 4500
To C. S. Dole & Co.'8 Con- )
«ignment
22
3000
1000
5 83
Cr,
77005 ;4S
1200
4500
3000
100&
1600
4250
J. R. Wheeler & Co. Dr 11 «i7«;
To B.'ls Payable ...
1565 57
34 43
104136
28
4250
11575
104136
2b
* The difficulty experienced by teachers in explairing the debit and credit of Interest arises most fi-eqaently
from the fundamental error of definition. Webster defines Interest — " Premium [cash] paid for the use of money."
This definition answers Weha er's purpose admirably ; but the accountant who accepts it for the purpose of apply-
ing any rule for journalizing, will most assuredly get befogged; for interest is not what is received or paid for the
use of money, but the use of iiwney itself. As well might one say that labor is what is received or paid for services
rendered. To make this distinction plain, let the student bear in mind that whoever uses the money upon which
interest is to be paid, pays/cw the use: in other words, pays for the interest. When defined in this way, he
▼ill have no dilKculty in applying any rule or principle competent to distinguish debits and credits.
I S5
JOURNAL,— SET III.
NEW YORK, MARCH 27, 1859.
Brought forward,
__ 2^
C. S. Dole & Co.'s ) Dr. To Sundries .
Consignment )
" Storage and Advertising.
" Commission . . . .
" C. S. DolediCo. . .
10413C
12450
30
Bills Pavable Dr.
To Cash
CSDole&Co. Dr.
To Cash
31
Expense
Dr.
To Cash
28
235
12081
75
128977
25
53
104136
28
50
318 75
12081 2r)
235
12081
75
25
128977 53
We have thought proper to omit the Ledger in this Set, believing the student to be fully
capable to post the accounts without assistance of this kind. We shall adhere to this plan
hereafter, except in cases where some new principle or application may be otherwise more
clearly shown. The result of this business will differ from that shown in the preceding Sets,
exhibiting, instead of a net gain, a net loss. This fact will of course, be apparent in the Loss
and Gain account — the debit side of that account being the larger — which will be closed " By
Stock," and the result carried to the debit side of Stock (H. B. Bryant's) account. Before
attempting to show the result of the business, by closing the Ledger or making a Statement,
the student must not forget to close " Private Account" into H. B. Bryant's (Stock) account,
it having already been explained that Private Account was merely a subdivision of Stock ac-
count. This might have been done, and very properly, too, by a regular Journal entry, but
the result is the same, and the method here suggested, besides being more simple and direct,
is equally intelligible.
In order, however, that the student may be made familiar with the various methods Oi
closing Ledger accounts, we shall exemplify in the succeeding Set the manner of producing
all the results through the Journal. This latter method is practised to considerable extent k
business houses, and particularly in joint stock concerns.
We have here a somewhat novel feature, indicated in the Inventory as " Interest Payable,
due on Mortgage." This represents the interest which has accumulated and is unpaid on the
mortgage held against us; and is as much a liability as the mortgage itself. In closing up
the Interest account, this amount (184) should be brought in on the debit side in red ink
"To Interest Payable," and carried to the Balance account as a liability Were the busi-
ness to be continued under the same proprietorship, this accumulating interest might be
allowed to run on without mention until paid, when it would be charged to Interest %,
chereby decreasing the gains ; but as it is necessary to show the exact state of the business
at this time, all the liabilities must be shown.
The student will please make his Ledger conform to the following Trial Balance, and
tHose it in accordance with the Statement which follows.
66
TKIAL BALANCE— INVENTOBY.
Trial Balance.
Saianeea.
Total Footings.
Ledger Accounts.
Totai Ibotingt.
Salatum.
i
12606
H. B. Bryant . . ....
256931 25 J
13087
25
269'
50
2118
Merchandise
1848 50l
100
i
3100
Union Bank Stock
3000
11650
12150
Real Estate
500
11337
651 30421
25i
50
Cash
19083
757
60
50
4500
5257
Bills Receivable
52
S. S. Packard
52
375
J. W. Gantz
375
1000
1000
3335
96
Union Bank
Bills Payable
J. D. Comstock
14910
96
11575
112
50
Ivison & Phinney
112
50
62
50
Dawson, Warren & Hyde ....
Mortgage Payable
62
9000
50
9000
591
741
12000
2890
Shipment to Albany
J. R. Wheeler & Co.'s Consignment
M. B. Scott's Consignment ....
150
12000
2890
348
70 {
1548
12750
70
i Shipment to New Haven ....
C. S. Dole & Co.'s Consignment . .
! 1200
1 12750
4000
4000
E. R. Felton
5
83
Interest
34
115
43
28
115
60
Storage and advertising
Commission
691
691
11575
J. R. Wheeler & Co.
11575
200
200
500
Expense
500
Private Account
85
12081
25
53
C. S. Dole & Co.
12081
25
53
34496
128977
128977
34496
95
INVENTORY.
Property Remaining Unsold, March 31.
60 sets Spencerian Writing Books
Real Estate, valued at ... .
Iiiabilities not shown on Ledger.
lAterart Payable. Due on Mortgage
M
67
STATEMEJNT,— SET III.
Losses and Gains.
MsRCHANDISE,
Dnion Bank Stock,
Real Estatb,
Shipment to Albany,
Cost 2118 00
Proceeds from sales . 1848 60
Mdse. unsold {per Inv.) 87 60 1886 00
Loss • 232 00
Cost JlOO 00
Proceeds 3000 ^0
Loss 100 00
Proceeds from rent . 500 00
Value of unsold . . 12000 00 12500 00
Cost 12150 00
Gain 850 00
Cost 741 00
150 00
691 00
Proceeds
Loss
Interest, Cost . . • 89 83
Proceeds 34 43
Loss 55 4
Storage & Advertising, Proceeds
Commission, "
Expense, Cost
Shipment TO New Haven, foN< 1648 70
Proceeds 1200 00
Loss 848 70
Wh Lm ,. t ..... . "' . .
XOMM.
232
100
591
55 40
200
348 70
1527
10
<7mm
350
115
691
1527
lU
Resources and Iiiabilities.
\8t. Property Unsold.
Merchandise,
Per Inventory
Jtewureea.
37 '50
Real Estate 12000
Cash,
Bills Receivable,
Union Bank,
Bills Payable,
Mortgage Payable,
Interest Payble,
E. R Felton,
H. B. Bryant,
2d. Ledger Accounts.
Amount on hand 11337 *5it
' 4500
Amount on Deposit 1000
Outstanding Notes
Liatni%tu».
11575
I 9000
84
Owes us on %
Capital Invested (net) .... 18087 26
Drawn mi {Private %) . 500 00
Net loss 871 10 871 iO
Present interest in the co7icern , . 12216 16
68
4000
32875
12216 16
15 ,32875 ]{>"
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 <fe Co.'s Consignment T
9. Should his account be debited with the value of the property consigned to us ? 10. How would such an
entry affect us ? 11. When the property represented in " Consignment" accotmt is disposed of, why do you
cancel the account ? 12. How do you determine the net proceeds of a Consignment ? 13. What is represented
by " Storage and Advertising " account ? 14. What by " Commission ?" 15. What is the nature of a draft ?
16. Why do you debit Ivison & Phinney with the face of their draft? 17. In what particular does H. B.
Bryant's " Private account" differ from his Stock accoimt ? 18. How is " Private account" sometimes closed 1
19. Why is it not proper to represent the balance of such an account as a gain or a loss ? 20. Would the
same rule apply to Partnership as to Stock books in this regard ? 21. With what amounts otight notes and
cash always to be debited and credited ? 22. If they are really worth more or less than the face, how ought
the difference to be shown ? 23. What is the chief difficulty in explaining the debit and credit of interest ?
24. WUl Webster's definition of " Interest " suffice as a basis for journalizing ? 25. What is a correct
definition of " Interest " as the accountant should view it ? 26. Is the business represented in Set III. a
gaining or losing business? 27. How can you ascertain? 28. How will a loss in business effect the
proprietors' account ? 29. How should the account of Bryant A Stratton be treated in Mr. Bryant's private
books ? 30. How should the interest due on " Mortgage Payable " have been represented at the close of the
March business ? 81. How could it have been done ? 32. Would this have increased or decreased the loss ?
GENERAL QUERIES.
88. In opening a Set of Books, what is the first consideration ? 34. What will always be the difference
between the resources of a concern and its mitslde liabilities ? 86. Does Stock account in an individual busi
ness always represent the invested capital ? 36. When does it not ? 37. Will Stock account and the Repre-
sentative accounts, taken together, always represent the invested capital ? 38. Why are the Representative
accounts so called ? 89. Are they less real than the accounts technically so called ?* 40. If the increase and
diminution of resources, commonly called gains and losses, should be carried immediately to Stock or Partners'
Accounts, would there exist any necessity for Representative accounts? 41. What would the difference be-
tween the debit and credit sides of Merchandise account represent in that case ? 42. How many methods are
there of indicating the loss or gain in business ? 43. What are they ? 44. In what way can these two methods
be made to prove each other ? 46. In a final exhibit of resources and lii»MlJties, what becomes of the Repre-
sentative accounts ?
• To one who has looked carefully at the distinction between Real and Representative accounts, as shown In this treatise, It
will be apparent that Representative accounts are temporarily used for convenience' sake, containing the gains and losses which
are finally to be carried to Stock or Partners' accounts, thereby Increasing or decreasing the net Investment ; while Real account!
we permanent, exhibiting perpetually, In the diflFerence between their sides, exact resources or liabilities. While Representative
accounts must always cease to exist by being absorbed into the accounts which they represent, whenever an ezliibit of the jondi-
Hon of the business <s necessary, Heal accounts form the essential matter of all such exhibit*.
7fi
feJi.1 IV.
1 1^1 I
JOURNAL DAY BOOK,
COMMISSIOiN SALES BOOK, INVOICE BOOK, FORMS OF NOTES,
DRAFIS, LETTERS, ETC.
LEDGER CLOSED WITHOUT BALANCE ACCOUNT; ALSO, BY JOURNAL F^iiilES.
PARTNERSHIP BUSINESS: PROSPEROUS.
REMAllKS 01s SET lY.
EEMAEKS ON SET IV.
In the transactions of this Set, we have introduced several new features, which will require
ir.ore than a passing thought from the student.
First. — The form of original entry — combining the Day Book and Journal. This form is
the most practical in use for general purposes, and is adopted, in essence, by accountants, in
every department of business. Its chief advantages are in dispensing with a separate Journal,
and in bringing the Day Book and Journal entries into such immediate connection as to leave
no room to doubt their identity. The only objection that can be urged against it is the diffi-
culty of making the entry intelligible, as well as s}- mmetrical. As there can exist no transac-
tions more difficult of expression than those given in this Set, we think this objection should
have very little, if any, force. However, the student will often find his ingenuity taxed to the
utmost in submitting transactions to this form.
Second. — The different methods of considering Mdse. Co. transactions. It will, of course,
be understood that by " Merchandise Companies" is meant the temporary copartnerships ex-
isting between the consignor and consignee, having reference to the sale of particular consign-
rnents of merchandise. The nature of this species of copartnership differs from that of a gen-
eral copartnership only in its duration, and the manner of conducting its sales. In Mdse. Co
business, one of the partners — the consignee — is the commission merchant, and, in that capacity,
receives and disposes of the property as he would of a simple consignment ; the only difference
being that he is interested in the gains and losses. The two methods alluded to, and, which are
fully illustrated in the two months comprising this Set, differ only as regards the opening and
closing entries. In \hQ first method — exemplified by the three Mdse. Co. accounts, "A," "B,"
and " C," in the month of April — the principle recognized is, that the holder of the property
is responsible for it. Thus, when we receive from Logan, Wilson & Co. an invoice to be sold
on joint ;^ we debit " Mdse. Co. A" with the invoice and expenses, and credit the consignors
with the cosL ^ the invoice, thus making ourselves responsible for the property as though it
were all our owi.. The consignor's entry, if recognizing the same principle, will be to debit
us for the entire cost of the merchandise.* In the second method, shown by the three Mdse.
Co. accounts, " D," " E," and " F," the principle recognized is that the owner of the property
is responsible. Thus, when we receive from Wm. K. Sadler, merchandise to be sold on joint
account, we debit " T^Idse. Co. D" with our oiun Uiare only, and credit the consignor. The
consignor's entry, in this case, if made to correspond with ours, would be to debit us for our
share, and " Shipment in Co. to New York," for his share.
Where there are more than two parties interested, if the accounts are kept by the first
method, the consignee should, as before, debit the Mdse. Co. account with its entire cost — in
voice and expenses — and credit the consignor with their (the consignee's and consignor's) joint
share, and any other party or parties with his or their share. The consignor would, in such a
case, debit the consignee with their joint share, and each of the other parties with his or their
share. The other parties would, if making an entry to correspond, debit the consignee and
credit the consignor each for his own share.
Where there are more than two parties interested, and the accounts are kept by the second
method, the consignee should debit " Mdse. Co." account /or his own share and all the charges,
and credit the consignor for his (the consignee's share). The consignor, on the other hand,
should debit each of the parties for their respective shares, and " Ship't in Co." for his own
• The supposition, in all these cases, is that the consignor furnishes from his own resources the property shipped.
78
REMAKKS ON SET IV.
share. Each of the other parties should debit " Shipment in Co.," and credit the consignoi
each for his own share.
The examples given, it is hoped, will fully illustrate these several points, and fasten the
principles upon the mind of the learner. As will be seen in the results, the only difference in
the two methods, is a simple matter of time. By the first method, the consignee is considered
as responsible for the property when he receives it, and by the second, when he has disposed oj
it. The final result is the same in either case.
We do not submit these separate methods because we deem our understanding of them so
essential in the conduct of Mdse Co. accounts, — although it is essential in this regard, — b i
because the more the learner permits himself to dwell upon these principles, and the bettei
he comprehends them in all their bearings, the more thorough and available will be his knowl-
edge of the science. He will learn little by copying the Jcmrnal where the opening and closing
entries are made ready to hand, and the calculations upon which they are based are performed
by the author, but in applying the principles in writing up the " Exercises" which follow, he
will have ample opportunity to test his proficiency. We need hardly say, that, so far as abso-
ute right and responsibility are concerned, the second method is the correct and philosopliical
one — the principle recognized being that the owner of the property is responsible. The only
advantage possessed by ihe^rst method is, that the " Mdse. Co." account shows its entire cost
at the commencement.
The student will, doubtless, find it difficult to classify Mdse. Co. accounts, as, in their current
ccndition, they are neither Real nor Representative. It is for this reason, mainly, that it is
deemed best to close them by a Journal entry, when the property they represent is disposed
of. They might be made either Real or Representative. Thus, by debiting them with all
the cost, and our share of the gain — (or, crediting with our share of the loss) the difference
will represent what we owe to the parties interested, the account becoming thus Real. Or
hf debiting them with all the cost and the gains of the other parties (or crediting with the
h'ss of other parties), the difference will represent our gain or loss, and the account thus
becomes Representative. The learner will gain much by looking at this matter in all its
bearings.
Third. — The different methods of closing the Ledger. In the month of April, the Ledger
in closed without the use of a Balance account, by bringing down the resources and liabilities
under their proper accounts. This is the business metlwd ; and if each month is supposed to
represent a year, this would be a fair example of the manner of closing business books at the
end of each year, forming a basis of resources and liabilities for the next year's accounts.
The method of closing the Ledger by Journal entries, as exemplified in the month of May, ii
usual in a large proportion of business houses, though requiring more labor, and possessmg
no advantage over the method heretofore explained. The usual entry in bringing down re-
sources and liabilities is : " Old account, Dr. To New account," and the reverse. The " Bal
ance" account is precisely the same as " New account."
Fourth. — A larger variety of auxiliary forms. We have purposely introduced a great
variety of auxiliaries that the student may become familiar with forms. We shall hereafter
indicate how a majority of these books might be used, in connection with the Journal, to con-
tsiin the record of original entries. This practice is becoming very prevalent in the larger
business houses, where it is essential for the purposes of dividing labor and avoiding unneces
sary writing. For instance, one clerk may keep the Invoice Book, another the Sales Book,
another the Cash Rook, etc., and each of these may be so kept as to post directly from them
to the Ledger, instead of passing all the transactions through the Journal. Or, the Book-
keeper may himself prefer to keep these special books separate, and at the same time avoid
unnecessary repetitions of the same entry.
79
JOURK"AL DAY BOOK —SET IV.
NEW YORK, APRIL 1, 1859.
H. B. Bryant and H. D. Stratton have this day entered into
copartnership, under the style and firm of " Bryant & Strat-
ton," in the prosecution of a general Commission and Groce-
ry Business ; to invest in equal amounts, and participate alike
in gains and losses.
Cash Dr.
To. H. B. Bryant . .
For amount of his investment.
East Kiyer Bank Dr
To II. D. Stratton . .
For amount of his inyestment.
//
10000
Store and Fixtttres Dr. To Sundries
Bo't of H. B. Bryant his store and fixtures.
To Mortgage Payable Assumed mortgage on the property . .
" Interest Due on mortgage to date
" Cash For balance , ,
3
10000
12500
Merchandise
Dr 3900
To Hope & Co jj
Bo't on ^, ||
6 casks Brandy, 800 gals, @ $2 . $ 600 T
200 bbls. Mess Pork, @ $9 . . 1800 |^
80,000 lbs. Bacon Sides, @ 6c. . 1600
Expense,
Mdse. Co. A.
Dr. ... .
To Cash
Paid for set of Books.
75
Dr. To Sundries ' 3900
Received from Logan, Wilson <b Co., Pitts-
burgh, to be sold on our joint % and
risk, each ^,
800 kegs Nails, @ $3 . . . . 2400
20,000 lbs. Lead, @ 7 c. . . . 1400
To Logan, Wilb« N & Co. Their invoice as above
Cash,
Mdse. Co. B.
Paid freight
4 „
Dr. .
To NiLES & KiNNE,
Received from N. <fe K., Buffalo, to be sold
on our joint % and risk, each i,
600 bbls. Flour, @ $8
5
4000
Cash
Dr
To Mdse. Co. A.,
Sold "Wm. H. Woodbury,
400 kegs Nails, @ $3 60 .
^0
1400
46775
10000
lOOOC
9000
84
3416
3900
75
3800
100
4000
1400
45776
JOURNAL DAT BOOK— SET lY.
NEW YORK, APRIL 6, 1859.
Amounts brought forward
6
BxLi-s Heceivablb
Dr.
To ^NfosE. Co. A.
Sold Robert llaywood, on his note, @ thirty
days,
20,000 lbs. Lead, @ 9 a . . . 1800
400 kegs Nails, @ $3 76 . . . 1600
45775
3300
45775
3300
Mdsb. Co. a. Dr. To Sundries
Closed conii>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 <k KiKNB
Dr.
To East River Bank .
Paid their draft on us favor of R. Ck>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
<fe Strong, New Orleans.
To Charges Storage, Advertising, etc
Commission 2i % on $7500
F. A. Boyle Ilia net proceeds
Campbell & Strong Their net proceeds
Loss AND Gain Our J net gain
//
Cash Dr
To Bills Receivable . .
B. Haywood has paid his note, doe this day.
. 10
East River Bank Dr
To Cash
Deposited.
12
Sundries Dr. To East River Bank . .
Paid on mortgage, favor of Wm, B. Astor.
Mortgage Payable Amount applied on mortgage
Interest In full to date
13
Bills Payable Dr .....
To East River Bank . .
Paid our acceptance, favor Logan, Wilson & Co.,
due this day.
86
4000
5000
123
2376
5000
3300
4000
4500
157
4136
51839
50
25
25
3500 1
500 1
7500
50
187
2254
2254
254
3300
4000
465?
50
16
17
bC
4136
51839
'45
25
JOURNAL DAY BOOK— SET lY.
NEW YORK, MAY 13. 1850.
Amounts brought forward
Hops & Co.
Dr.
To Bills Payablb . . .
Accepted their draft on us payable @ ten days
sight.
14
51839
25
CftSB
Dr.
To Mdsk Co. F.
Sold E. A. Charlton,
600 bbls. Pork, @ $9,60
15
HaiotAjBeassb&Co. Dr
To Loss AND Gain ....
Received advice from IL B. <& Co., Detroit, of
an error in an Account Sales of last
year's business, in wliich we were credit-
ed too little by the above amount.
SuKDRise
Cash
Interest
Cash
Dr. To IIanna, Beaser & Co.
Sold our draft, on them @ thirty days sight.
Net proceeds
Discount and Exchange off
17
Dr
To Mdse. Co. F. . . .
Sold Theron W. Woolson
250 bbls. Lard, 60,000 lbs.,® 4 a
SUNDBISS
3900
4750
275
2600 05
44 95
2000
Dr. To Sundries,
Closed "Mdse. Co. F.," and rendered H. D. Van
Syckel, St. Louis, an Accoimt Sales of
the same.
To close % ,
Our i net loss
Storage, Cooperage, etc.
2^ ^ on sales
II. D.VanStckel His i invoice $3600
Less i net loss 484 88
Leaves not proceeds
Mdse. Co. F.
Loss AND Gain
To Charges
" Commission
IL U. VakStceel
Dr
To Cash .
Remitted him in full of %
Caeh
Dr.
To Bills Receivable . .
Received payment in full for W J*. Spencer's note
(tf the 13th April
2750
484
6515
7000
82159
51839
3900
2f
4750
275
2645
37
2000
62
24
50
168
8015
65.5
7000
82159
75
62
62
9A
87
JOURNAL DAY BOOK— SET IV.
NEW YOKK, MAY QO. 1859.
> 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 <fe Co.,
due this day.
28
Dr
To Charles Stetson
To Balance %.
30
Acker, Mbrraxl& Co. Dr
To Cash
To Balance %.
r 31
H. B. Bryant
Di
To H. B. Bryant, Private
For amount charged to H. B. B.'s private
account, now carried to his Stock ao-
coimt.
H. D. Stratton
Dr.
To II. D. Stuatton, Private
For amount charged to Private account, now
carried to Stock account.
[nterkst
Dr.
To H. B. Bryant . ,
Allowed 7 % on his additional investment
of April 80.
82159
10000
800
2881
24
3900
4500
1 000
200
150
15
105605 92
68
~i(
S2159
10000
800
24
2881
3900
4500
1000
200
150
15
105605
68
9*^
88
JOURNAL DAY BOOK,— SET lY.
NEW YORK, MAY 31, 1859.
10
CLOSING ENTRIES.
Balakcb
Dr.
To Stork and Fixtueks .
Valuation of property.
Store AND FixTURKs Dr
To Loss AND Gain
Fot increase in value of property.
MORTGAOB PatABLB Df
To Balance
Amount due on mortgage.
Balancb
Balancb
Intbrbbt
Balancb
Lobs and Gain
Loss AND Gain
Balancb
(yOMMIBSIOir
Bills Patabub
Dr. . . .
To Cash
Amomit on band.
Dr.
To East River Bank
Babmce on deposit.
Dr.
To Balance ....
Amount due from us to date on mortg^sge.
Dr.
To Interest ....
Amount duo us to date on E. Corning'i
note.
//
Dr.
To Interest
Cost over proceeds of Interest.
Dr.
To Expense
Balance of Expense account.
Dr.
To Bills Receivablb .
Note on hand, (E. Corning'a).
Dr.
To Loss AND Gain
Gain on Commission.
M
Dr
To Balancb
Oar outstanding notes.
89
15000
2500
4500
4575
21337
18
146
213
150
5000
434
10781
04656
09
50
37
82
15
25
18
15000
2500
4500
4575
21337
18
146
213
150
5000
434
10781
64656
09
50
37
82
15
25
18
11
JOURNAL DAY BOOK— SET IV.
NEW YOKK, MAY 31, 1859.
Amount brought forward
le
Pliny Moorb
Dr
To Balance
Amount due him.
fe. G. Payn
Dr. ... .
To Balanck
Amount due liim .
Balance
Di
To Steamer Empire Stock
Valuation of our interest in Steamer Empire.
Balance
Dr
To Steamer Empire .
Amount due us.
Balance
Dr.
To R. W. IIOADLET
Balance due us.
Loss AND Gain
Dr.
To Shipment in Co. 1 .
Our loss on shipmeut.
Loss AND GaIV
Dr
To Insurance
Cost of insurance.
Charqes
Dr.
To Loss and Gain
Gain on storage, advertising, etc.
F. A. BoTLK & Co. Dr
To Balance
Amount due them.
Campbell & Strong Dr
To Balance
Amount due them.
Loss AND Gain
Dr. To Sundries
Net gain carried to Partners' %,
To H. B. Bryant His J net gain
*' H. D. Stratton « « « «
H. B. Bryant
Dr
To Balance
For amount his net capital
H. D. Stratton
Dr
To Balance
For amoimt his net capitaL
6465G
5340
1954
10000
250
1709
109
37
150
4254
2254
2680
15785
13130
122311
50
16
17
4U
14
57
12
64656
5340
1954
10000
250
1709
109
18
01
99
37
150
4254
2254
1340
1340
15785
13130
122317
50
16
n
20
20
14
57
12
90
SDr.
LEDGER— SET lY.
Xi. B. Bryant.
1M9
Ipr.
May
SI
To BmUtnee
81 To R B B. private
81, Balance
il
14C«t
14629
200
16786
16986
126
14
14
1869| {
Apr} 1 i By Caah
" SO!
May
sa
Losa and Gun
By Balance
Interest
Loss and Gain
Oir.
I 10000
6 2688 90
l4 1940 86
__ , 14629 26
tl! 14629 26
9 15 68
II 1340 20
16986 14
Dr.
H
. ID
. Stratton.
«r.
1«M
Aff.
80
81
M
To BaUmct
To n. D, S. private
Balance
Ll
llt4»
•1
1869
Apr,
M
May
u
1
80
1
81
By East River Bank
Losa and Gain
By Balance
Losa and Gain
1
1.4
1
10000 1
1940 i 87
1
11940
67
67
119401 87
9
11
160
18180
Ll
11
11940 87
1840 20
18280
18280 67
1
1
Wx.
Store and. IF'ixtTires.
€x.
1869^
Avr. I 8 To Sundries
80 Lou and Omn
May
To Balance
Loss and Gain
12600
1500
14000
12600
2600
16000
1859
Apr.
May
81
By Cash
By Balance
A
1600
itioo
14000
16000
16000
V^t
Is/lortgage iPayable,
Cr.
1869
May
12] Tc Raal River Bank
81 Balance
4600
4600
9000
1869
Apr.
By Store Fiztnres
91
9000
9000 _
LEDGER— SET IV.
CHr.
CSLSll,
Cr.
i859|
,
1 i !
1 1859
.._
Apr.. 1
i To a B. Bryant
1
10000
1 Apr.
8
By Store and Fixtures
1
! 8416
" 1 6
Mdse. Co. A.
1
1400
1 "
»
Expense
1
1 75
" 1 9
' Mdse.
2
800
«
4
Mdse Co. A.
1
1 100
" 18
^ Mdse. Co. C.
8
8000
«
1
IfOes & Kinne
2
1 16
" ' 15
Mdse.
8
900 !
« 1 9
Mdse. Co. C.
8
' 200
" ' 20
Bills Receivable
4
1 995
73
" 12
Steamer Empire Stock
8
j 50001
" 28
i Store and Fixtures
4
1500
" 16
Mdse.
8
800
" 801 H. B. Bryant
6
2688
90
" 1 18
Sundries
4
200
1
i
"
22
"
4
60
M
29
Expense
6
159
M
ft
£a««4MW
L«
nftajet
21284
68 j
21284
6t
i' "
May 1
To Balance
l2
1
11269
68
May
1
By East River Bank
.1
8500
" f 3
Mdse. Co. D.
«
750
2
Sundries
6
18
8
Mdse. Co. E.
1
2376
63
"
8
Insurance
6
87
m
U
9
Bills Receivable
1
8300
"
10
East River Bank
Y
4000
14
Mdse. Co. F.
8 1
4750
"
17
H. D. Van Syckel
8
6615
62
" 15
Hanna, Beaser <k Co.
8
2600
05
<f
23
East River Bank
9
10000
«
17
Mdse. Co. F.
8
2000
«
27
Bills Payable
9
8900
«
17
BiUs Receivable
8
7000
>(
80
Acker, Merrall <fc Co.
9
1000'
"
27
Cbas. Stetson
9
4500
21
«
81
Balance
10
4675
88646
09
t=:
88546
21
1
HJr.
East E/iver Bemk:.
dr.
1869
Apr.
1
To H. D. Stratton
To Balance
Cafih
«
1
i2
6
7
9
10000
1869
Apr.
«
26
«
•0
By H. B. Bryant
Niles dc Kinne
By Mdse. Co. D.
Expeuse
Mdse. Co. R
Mdse. Co. F.
Sundries
Bills Payable
Balance
4
4
6
6
6
1
1
10
200
968
t«81
1
•*
10000
10000
00
Hay
u
(1
M
I
1
10
28
8881
860u
4000
10000
26
M
'ay
1
6
6
7
12
13
81
60
160
600
600
4657
4136
21837
81881
60
26
50
81881
26
20
1
92
LEDGER— SET IV.
dr.
Interest.
(Kr.
^8S9
Apr.
u
20
t
To Bills Rec«iyable
7x>M €md Oain
To Mdse. Co. E.
Eiigt River Bank
Hanna, B. <t Co.
H. B, Bryant
Balance
4
Li
4
27 j
1869
Apr.
8
81
«
By Store and Ebctores
By Balance
Loss and Odn
1
84
84
84
jfay
H
M
8
12
A
81
81
7
8
9
10
123
16Y
44
16
18
47
60
96
68
87
May
10
10
146
213
Si
16
869
97
869
97
,
dr.
Suspense.
Cr.
1869
Apr.
u
«
8
18
29
6
To Cash
w
To East River Bank
1
4
6
76
60
169
1869
Apr.
t
to
Bf Lota aini Omh
By Loss and Oaii
l4
■••
284
284
May
9
160
May
81
ISO
1
1
t
VJr,
r<riles
<Sz> 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.
<i it
B.
4188
76
1
€t.
2
8
4000
188
76
4188
n
Wt.
lvl!eroh.£iiid.ise.
€r.
1869
Apr.
m
8
16
80
1
To Sundries
M
Lo$t aiui Oain
ToBaknoe
1
s
l4
1
18900
• 1800
T50
|l869
M
9
16
22
By Snndr es
Cash
Sondries
S*lane$
By Sondriea
2
8
4
t8
6
1800
900
1960
mo*
6460
6460
Jf«y
1800
May
2
1800
-
98
LEDGER— SET lY.
HIT.
Loss
giiid.
Gr SLin.
Ct.
1869
1 1
1869
Apr.
80
To S. G. P-yn
6
116
1
Apr.
6
By Mdse. Co, A.
2
836
26
u
<i
Expense
l8
284
1
8
Mdse. Co, B.
2
183
76
u
«
i/. B. Brvaut
Ll
1940
86 1
u
13
Mdse, Co. C,
8
840
M
M
E. D. Utratton
l2
I»40
37
«
M
M
20
80
«
«
Niles <fe Kinne
Store and Fixtures
Interest
Mdse.
4
Ll
l3
1,3
800
1600
79
750
73
«
«
Storage and Adver.
1.6
60
M
M
Commission
1.6
480
M
«
Steamer Empire Stock
l6
250
4279
78
4279
73
Mar,
17
To Mdse. Co. F.
12
484
87
May
8
By Mdse. Co. D.
6
61
"
81
Interest
10
213
16
"
8
Mdse. Co. E.
7
254
n
"
«
Expense
10
150
"
16
Hanna, Beaser A Co.
8
275
»
"
Shipment in Co. 1
11
109
"
81
Store and Fixtures
10
2600
«
«
Insurance
11
87
60
«
"
Commission
10
434
26
M
«
Sundries
11
2680
40
Cliargea
11
16<)
8674
42
8674
42
IDr.
Hope <Sz> 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
<Sz> 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 <fe Kinne
Sundries
1
8
i
4000
600
1869
Apr.
8
By Chas. Stetson
8
4600
p=:
4600
i 4600
,-_
i
1
B
ill
s B/eceivalDle.
Cr.
To Mdse. Ca A.
Mdse.
Md8e.Caa
a
8
8
8300
1000
7000
i
1869
Apr.
20
80
By SondriM
By Cash
Balance
4
l6
r
8
1600
lOSOO
11800
11800
Balance
Mdae-CkxE.
1.6
7
10800
6000
May
M
M
9
22
81
8800
7000
6000
16800
16800
■"■*
dr.
Storage
and
^ dvertising.
Cr.
1819
Ayr.
80
rV7.vi - . tAM
l4
AO
~^
1869
Apr.
M
M
6
8
18
By Mdse. Co, A,
Mdse. Co. B.
Mdse. Co. C.
n
t
10
•
•0
60
HDr.
OoTTiTn i ssi on .
€r
18*9
Apr.
80
To Lou mnd Omu
Loss and Gain
1.4
480
1869
Apr.
M
M
6
8
14
By Mdse. Co. A.
Mdse. Co. B.
Mdse. Co. C.
By Mdse. Co. D.
Mdse. Co. E.
Mdse. Co. F.
2
2
8
«
7
8
117
112
250
50
60
480
480
Hay
81
484
26
May
u
M
8
8
17
78
187
168
60
76
484
88
484
^
1
.
«r.
1P69
Apr.
80
IS
27
81
ToBalanet
To East River Bank
Cash
Balance
Li
11
14
itott
%t
1869
Apr.
6
9
12
By Niles & Einne
Lc^an, Wilson £ Co.
Steamer Empire Stk.
By Balance
Hope A Co.
Wm. K, Sadler
8
8
8
l6
8
9
2900
4186
! 6000
26
—
12036
26
1 12036 126
Mai
«
4136
89U0
10781
26
May
ft
1
18
26
i 12036
8900
2881
18817
20
18817
86
U
95
Wx.
1869
Apr,
To Mdse. Co. B.
LEDGER,— SET IV.
diaries Ste-tson.
4600
1859
Mat/
28
By Cash
€i
4500
'■
DUr.
:M:cise.
Oo
^
o.
€v
1859
Apr.
10
18
To Stmdried
8
8
870O
1300
1859
Apr.
18
By Sundries
1 " '
' 8 ^10000
10000
H
lOOOr j
1
mr.
Wx.
IPliny IMioore.
S. O-. FayxL.
JUr.
Steamer Empire Stools.
dr.
-A-oker, IvdCerrall <Sz> 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.
<i « «
Loss and G^
By Balance
8
8
6
2833
840
115
88
8288
83
8288
88
May
1964
M
May
1964
T%
"*""
— -
~
<Er.
1869
12
80
To Sundries
ZoM and Oain
To Balance
8
4
10000
960
1869
Apr.
<•
28
to
By Steamer Empire
Balanc4
By Balance
6
L«
26U
10000
10260
10250
May
1}
10000
May
IT
10000
1
(tr.
1869
May
80 To Cash
1000
18691
^pr.j 16
By Mdse.
lOOU
Hir.
H.
ID. Stratton— Privatb.
€t.
1859
Apr.
18
To Cash
4
160
1859
May
81
By H. D. S., Stock
9
160
-
06
flhr
LEDGER —SET IV.
H. B. Bryant-— Pbivatk.
Cr
18SS
2{
. To East Rirer Bank
4
•
200 1
1 —
, 185fl
! May
31
1 By H. B. B.. Stock
i
9
200
I
i
Qlr.
Steamer P^*Tnpiro.
«r.
186fj i
Apr. 28 To Steamer Empire Sik. 5
!
i ■ 1
1 250 {
i
i: 1859:
1 May 31
By Balance
ji
860
1
. i
asr.
Ivldse.
Oo.
u.
€t.
1859
1
i
To Sundries
6
6
1460
1660
1859
May
8
4
By Cash
Hanna, B. A Co.
«
«
780
8«»
8120
=
8ia»l_
1
»%.
'W'm. K. Sadler.
Cr.
1869
May
26
To Bills Payable
9
2881
1859
May
u
1 By Mdse. Co. D.
4 " " "
6
«
1
1410
1471
8881
1 !
8881
i 1
dr.
I^. ^W^. Hoaciley.
€r.
1859
2
86
To Sundries
Shipment in Co. 1
6
9
909
800
""■
1859
May
81
ByBslaaoe
"1
1709
1709
1709
Sir.
Sliipnieiit in Oo. 1.
Cr.
1869
Mat,
8
To Sundries
6
909
1859
May
25
31
By R. W. Hoadley
Loss and Gain
9
11
eoo
109
909
909
I
mx.
IzLsurGLZioe.
Cr.
1859
ifoy 8
To Cash
1
6i
It
60
1859
May
81
By Lose and Gain
_ii_
87
K
"~
"■
^' KEanna, Beaser <Sz> 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
<Sz> 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
<v.
Strong.
Cr.
1869 I
May 81 To Balance
16
2264
1
11
1859
J/ay
8
By Mdse. Co. K
7
"1
2245
17
,,
mr.
Balance.
(fTr.
1859 1
'l869
May 1 81 1 To Stor« and Fixtures
10
16000
Afay
81
By Mortgage Payable
10
4600
"
"
Cash
10
4575
09
"
Interest Payable
10
18
87
•>
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
<f
R. W. Hoadley
11
1709
<<
«
H. B. Bryant
15785
H
"i
«
M
H. D. Stratton
13130
67
58018
41
58018
41
J i
98
TBIAL BALANCE— INVENTORY.
Trial Balance — April.
Batanea.
11000 I
11269 ,63
S831 25
284
1050
10300
4500
9750
150
200
57584
88
JbtalFoolinfft.
12500
21284
63
10000
4
27
284
4183
75
5700
115
4700
4136
25
4500
11300
4500
10000
606
66
1333
34
10000
150
200
250
105807
90
H. B. Bryant (Stock)
II. I). Stratton (Stock)
Store and Fixtures
Mortgage Payable
Cash
East River Bank .
Interest ....
Expense ....
Niles 6i Kinne . .
Merchandise . .
Loss and Gain
Hope &i Co. . .
Mdse. Co. A. . .
Logan, Wilson & Co.
Mdse. Co. B. . .
Bills Receivable *.
Storage and Advertising
Commission . .
Bills Payable . .
Charles Stetson
Mdse. Co. C. . .
Pliny Moore . .
S. G. Payn . . .
Steamer Empire Stock
Acker, Merrall Ai Co.
II. D. Stratton (Private)
II. B. Bryant (Private)
Steamer Empire . .
Tbtal Footingi
12088
90
lOOOO
1500
9000
10015
1108
75
84
4183
75
4050
1100
3900
4700
4130
25
4500
1000
60
480
12030
25
10000
6000
67
3288
33
250
1000
105807
90
Balam*e$,
12688
10000
9000
79
1045
3900
60
480
12036
5340
1954
1000
9C
78
2&
01
9«
57584
68
INVENTORY.
Property Unsold April 30.
Store and Fixtures, valued at cost
Mdse on hand
Steamer Empire Stock, at coat. .
99
TKTAL BALANCE— INVENTORY.
Trial Balance— May.
1 r«. — ■
Balancet.
Footings*
Footingg.
BcUanem.
200
. . H. B. Bryant
14644
94
14444
94
150
. . H. D. Stratton . .
11940
37
11790' 37
12500
12500
4500
. . Store and Fixtures
. . Mortgage Payable
9000
4500
4575
09
38546
21
. . Cash
> .
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. <fe K., Buffalo, to be sold on our
joint "/c and risk, each \,
600 bbls. Flour, @ $8
Our charges
2^ % on 14500
Their \ net gain
Our " " "
Account Sales rendered April 8.
N. <fe K.'s net proceeds, $4183.76.
Due May 6
4000
20
112
183
183
50
75
75
4500
Ivld.se. Oo. O.
1859
Apr.
10
13
To Pliny Moore
S. G. Payn
Cash
Storage and Adver.
Commission
Pliny Moore
S. G. Payn
Loss and Gain
Errors excepted.
Received per Merchants' Line, from Pliny Moore,
Troy, to be sold on joint % of himself, S. G.
Payn, Albany, and ourselves, each ^,
1000 bbls. Flour, @ $8.50 . . . $8600
P. Moore and our f invoice furnished by him .
His I invoice as above
Paid Freight ....
Our charges
2i % on $1000
His \ net gain
His " " "
Our" " "
Account Sales rendered April 18.
P, Moore's net proceeds $6006.67
S.G. Payn's" " 8173.8»
Due May 14.
lOfi
5006
2833
200^
30
250
340
340
340
Toooo
67
33
SALES BOOK.
TSSS
Apr.
By Cash
" Bills Beceivable
Sales.
Sold Wm. H. Woodbnry,
400 kegs Nails @ ^3.50
Sold Robert Haywood, on his note @ thirty days,
20,000 lbs. Lead, @9c $1800
400 kegs Nails, @ $8.76 , . . 1600
1400
3300
4700
Ssiles.
Avr.
By Charles Stetson
Sola him, @ thirty days, on %,
600 bbls Flour, @ $9 .
4500
4500
Sales.
t§69
Apr.
13 I By Bills Re<:eivable
f^aah
Sold Warren P. Spencer,
1000 bbls. Flour, @ $10.00 . .
Received his note, @ forty days, for
Balance in cash
110,000
7000
3000
10000
107
COMMISSIOjN
1>/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 <b Co.'s net proceeds, $2264. 16.
Campbell <fe Strong's " " 2264.17.
Due by equation, May 8.
2UU0
500
50
187
50
2254
16
2254
17
254
17
- —».
7500
— r
lvld.se. Oo. F.
1859 j
May \
10 1 To H. D. Van Syckel
14
East River Bank
Charges
Commission
H. D. Van Syckel
A, 4k O.K.
Received from H. D. V. S., St. Lonis, to d« uolO
on our joint "ji: , each \,
600 bbls. Pork, @ $9 $4500
250 do Lard, 50,000 lbs., @ 6 c. . . 2500
Our \ invoice $7000
Paid freight per check ... . . .
Storage, cooperage, etc . . ...
2i % on $6750
His \ invoice $3500, less his net loss $484.38 .
$3016.62
Account Sales rendered May 14.
H. D. Van Syckel's net proceeds
Due by equation. May 16.
SALES BOOK.
1859
3 By Cash
" Hanna, Beaser & Co.
Sales.
Sold J. R. Bigelow,
100 bbls. Cider Vinegar, @ |Y.60
Shipped them to Detroit, per their order,
60 bbls. Linseed Oil, @ $46 . . . ,
40 h'f kegs White Lead, @ |8 . . .
Payable at sixty days.
$2250
120
750
2370
8120
Sales.
1859
May
By Bills Receivable
" Interest
« Cash
Sold Wm. A. Holley, Fort Edward,
100 hhds. Sugar, @ $76
Received In payment a note against Erastas
Corning for
Interest due on same to date .... .
For balance
5000
123
2376
47
53
7600
Bales.
18!>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 <S, 1859.
. . . 2400
. . . 1400
. . . 336.25
4136
25
. . $4136.25
TRA'ITON,
per Packard.
Account Sales of 600 Bbls. Flour on joint % of Niles &. Kinne and
ourselves, each ^.
1859
Apr.
Sold Charles Stetson @ 30 days, on %,
500 bbls. Flour, @ $9 . . . .
Charges.
Storage and Advertising $20
Commission, 2i % on $4500 112.50
Our i net gain 183.75
Invoice, 500 bbls. Flour, @ $8 . . . . 4000
1^ net gain 183.75
Net proceeds as above .... $4183.75
K. E.
Due by Equation, May 6.
New York, April 8, 1859.
BRYANT & STRATTON,
per Packard.
110
4500
316
4183
25^
76
ACCODNTS SALES,— SET IV^.
Sales of 1000 bbls. Flour, on joint % of Pliny Moore, Troy, S. G. Payn,
Albany, and ourselves, each \.
1859
Apr.
13
Sold Warren P. Spencer,
1000 bbls. Fluur, @ $10
Cash, $3000— Note @ forty days, $7000.
"~~~~~ Cliarges. ~~~~~
Paid Freight, in cash |1200
Storage and Advertising 30
Commission 2| % on * 10000 250
S. G. Payn's net proceeds 3173.33
Our ^ net gain 340
P. Moore's net proceeds*
Invoice 1000 bbls. Flour @ 18.50 .... 8500
Your and our ^ of above 5000.67
" i ^^^ gain 340
Net proceeds as above .... 160 06.67
Due by Equation, May 14.
K. K.
BRYANT «fc STRATTON,
Nkw York, April 13, 1859. per Packard.
10000
3923_
6006
33.
6L
M ■■ ^ ( 10° *>"'*• 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.
<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^.
©^i<y 25.
968
75
No.Z.
Q^^ I.
SO
No.\.
eA^eu^^dd 9'ifua^.
Jcif^ Q/tdi^ei'^^Mta,
Q//i^ 5.
150
No. 5.
^^e^M^ on. <^*..
i^ry4i
Q/^Cay 6.
?oo
No, 1. iTwo ForA-, (2^^/25, 1859.
EAST RIVER BANK,
Poy to <%f -^. ^lyani, or Bearer^
C^ S^difulud ^ DoUart,
$200.
Miyami ^f) ^^uU6m.
No. 2. JVw Forit, ©^k*/ 25, 1859.
EAST RIVER BANK,
Pay to .^. ^ouUei, or Bearer
Q/Vtne adttuii^ti aiu£ ^ut^y-Sih^ i^/V DolUirt.
NoS. New York, Q^y i, 1859.
EAST RTVER BANK,
Pay to <W. M ^^m*. or Bearer,
^ifty nnr Dollar*,
-A.
^
No. 4. New York, Q^ay 5, 1859.
EAST RIVER BANK,
Pay to Q/Veuf '^oi4 a^ifeuUk, or Bearer,
^m a^dt^ulud a^ ^,fy ^ Dollar*,
>150' ^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 ^<p <^iluU6m,
%
No.
New York,
^8
EAST RIVER BANK,
P-.y to or Bearer,
'^Dollar*.
ZA
117
KOTES, DRAFTS, ETC.— SET IV.
NOTES, DRAFTS, ETC.,— SET IV.
Esoolvable.
13300. Nkw York, April 6, 1859.
Thirty davs after date, for value received. I promise to pay Bryant & Stratton, or order
rhirty three Hundred Dollars, at the East River Bank.
Robert Haywood
$5000. Albanf, January 1, 1859.
One day after date, I promise to pay to William A. Ilolley, at the Bank of the Capitol,
Five Thousand Dollars, value received.
Erastus Corniko.
tlOOO. Nkw York, April 9, 1859.
Thirty days after date, I promise to pay to the order of Bryant & Stratton, at my office,
No. 79 Cedar street, One Thousand Dollars, value received.
Austin Packard.
•7000. Buffalo, April 13, 1859.
Forty days from date, I promise to pay Bryant & Stratton, or order, at the International
bank of Buffalo, Sevea Thousand Dollars, value received.
Warrkn p. Spknosk.
Payable
..12900. Nkw York, April 6, 1859.
For value received, ninety days from date, we promise to pay to the order of Acker,
Merrall >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 <f: Stratton, PiTTSBURa, April \st, 1859.
New York:
Gkntlbmkn : — As per our agreement of the 30th ult., we ship you
this day, (Invoice enclosed), 800 kegs Nails and 20,000 lbs. Lead, to be sold on our joint %.
We shall leave it entirely at your option to push them upon the market, or to await bettei
prices. Your reputation and experience afford sufficient guarantee that whatever course you
may see fit to pursue will be the best.
Very truly, yours,
Logan, Wilson & Co.
Messrs. Bryant <k Stratton^ Buffalo, April 2d, 1850.
New York:
Gkntlkmkn : — Enclosed you will find Invoice of 500 bbls. Flour,
which we ship you this day on joint %. You will, perhaps, find it best to take advantage of
the present demand in your city to close out the sales at an early day. However, we leave
that matter to your own good judgment.
Please keep us advised as to the indications. Yours,
NiLES 6i KiNNX.
Logan, Wilson <k Co., New York, April Gth, 1859.
Pittsburg :
Gentlemen : — We enclose you Account Sales of the Nails and Lead
shipped us on the 1st inst. Your net gain, as shown, is $336.23. We think the present a
(avorabli time for this class of sales, and shall be happy to join you in any reasonable
amount.
Let us hear from you soon. Respectfully,
Bryant & Strattov.
119
LETTER BOOK.
Messrs. Niles <& .Kinne_ New York, April 7th, 1859.
Buffalo :
Gentlemen : — You will please find, enclosed. Invoice of 20 hhds. Sugar,
100 bags Coffee, and 100 boxes Raisins, to be sold, as per our agreement, on joint %.
We have an excellent opportunity, in prospect, of purchasing, to advantage, in this line,
and shall be happy to learn from you that the demand will warrant a fair investment We
await your farther advices.
Respectfully,
Bryant &, Stratton.
Messrs. Niles (& Kinne, New York, April 8th, 1859.
Buffalo :
Gents : — Enclosed please find Account Sales of the Flour shipped ua
on the 2d inst. We feel satisfied with the returns, particularly as since our sales were effected,
prices have materially declined. The uncertainty of European affairs renders the provision
market extremely unstable, and all prognostications, at this time, unreliable. We have no
doubt, however, that the ultimate tendency will be favorable to investments, and do not hesi-
tate to advise you to secure any good bargains which the present seeming depression may throw
in vour way.
Truly, yours,
Bryant & Strattom.
Messrs. Bryant d; Stratton, Troy, April \Qth, 1859.
New York:
Gents: — I ship you to-day, as per Invoice enclosed, 1000 bbls.
Flour, to be sold on joint % of yourselves, S. G. Payn, Albany, and myself, each one- third.
You will please open an account with Mr. Payn, and render him an Account Sales of his one-
third, as per our agreement. I have charged you for your one-third invoice. Please keep me
advised. Yours,
Pliny Moobk.
Pliny Moore, Esq., New York, April IZth, 1859.
Troy :
Sir : — We send you, enclosed. Account Sales of Flour shipped us on the
lOth, having effected the sale in less time than we had anticipated. We trust the result will
oe satisfactory. You now stand credited on our Books $6,006.67. We have communicated
w^ith Mr. Payn. We think the present a favorable time to invest in Flour, and shall be happy
to join you in speculation, or to sell for you on commission. We await your further orders.
Respectfully,
Bryant & Stratton.
S. 0. Payn, New York, April 13th, 1859.
Albany :
Sir : — Enclosed please find Account Sales of Flour, shipped us by Pliny Moore
jf Troy, as per our understanding. Your one-third net gain is $340, which gives you i total
credit on our books of $3,173.33.
Respectfully, yours,
Bryant & Strattuw.
120
JiETTER BOOK.
Messrs. Bryant db Stratton, Buffalo, April 18, 1859.
New York :
Gents : — We enclose you Account Sales of the Sugar, Coffee and
Raisins, shipped us on the 7th inst. Your net proceeds from Sales, including Invoice and Gain_
is $3215, which we have entered to your credit.
We shall be happy to hear from you. Respectfully,
NiLES & KlNNB.
S. G. P-xyn, Esq., New York, April 22, 1859.
Albany :
Sir — We ship you this day, per Merchants' Line, 30 hhds. Sugar aa
per enclosed Invoice, to be sold on joint % of yourself, Pliny Moore, Troy, and ourselves*,
each \. We have advised Mr. Moore, and he will look to you for an account of the sales.
Please write to us. Truly yours,
Bryant & Strattok.
PUny Moore, New York, April 22, 1859.
Troy :
Dear Sir — We enclose you Invoice of 30 hhds. Sugar, shipped this day to
S. G. Payn, Albany, to be sold on joint % as per arrangement. We have charged you witH
your \ Invoice, and advised Mr. Payn to account to you for the sales.
Very respectfully,
Bryant & Stratton.
Messrs. Bryant d Stratton, Aibany, April 29, 1859.
New York:
Gentlemen — I send you enclosed an account of the sales of
Sugar shipped by you on the 22d inst. Your ^ loss on sales as per statement, is $115, which
reduces your net proceeds to $1218.34.
I regret the result, but have done the best I could, undei the circumstances. The rapid
decline in Sugar could not have been foreseen, and had I delayed the sales auother day the
result would have been far less satisfactory.
Respectfully yours,
S. G. Pay».
Messrs. Bryant db Stratton, Philadelphia, April 30, 1859.
New York :
Gents. — I ship you this day, as per arrangement, 100 bbls. Cider
Vinegar, 50 do. Linseed Oil, and 40 h'f kegs White Lead, to be sold on joint %. I have
jharged you ^ the enclosed invoice, according to agreement. Please exercise your own judg
ment in the matter of sales.
Respectfully yours,
Wm. K. Sadler.
B. W. Hoadley, Esq., New York, May 2, 1859.
Philadelphia :
Dear Sir — We enclose you Invoice of 200 bbls. Pork, shipped
you this day, to be sold on our joint %. Your J Invoice (charged) is $909. We shall trust
entirely to your judgment in effecting sales.
Truly yours,
Bryant <fe Strattok
Q 121
LETTER BOOK.
Hanna, Beaser <S; Co.^ New York, May 3, 1859.
Detroit :
Gents. — Enclosed we send you Invoice of Oil and Lead, shipped you
this day, as per your order of the 28th ult. We possess extraordinary facilities for pur-
cLaslng to advantage in this line, and shall be happy to merit your patronage. We trust wn
Xiiied not assure you that your orders shall rec^'ve the most prompt attention.
Your ob't serv'ts,
Bryant & Stratto*
Wm. K. Sadler, Esq., New York, May 3, 18b».
Philadelphia :
Dear Sir — We enclose you Account Sales of Vinegar, Oil and Lead
•hipped us on the 1st inst. We think we were fortunate in effecting the sales, and have no
doubt, in the present state of the market, that, should you invest pretty heavily at your for-
mer figures you would not regret it. We will join you in any amount, or sell for you oi
aommission. Ti'uly yours,
Bryant & Stratton.
Bryant db Stratton, New Orleans, April 26, 1850.
New York :
Gentlemen — Your favor of the 18th is just at hand. Your proposition
for a special copartnership strikes us favorably, and we have, without delay, shipped you as
par Invoice enclosed, 100 hhds. Sugar, to be sold on joint % of yourselves, Campbell 6i Strong
of this city, and ourselves, each ^. Campbell & Strong are advised of the arrangement, and
^ou will please communicate with them. We send you their card, and beg to say that you
will find them, in all respects, first-class business men. Your references are unexceptionable,
and it shall not be our fault if our mutual interests cease with this experiment. You will
please exercise your own judgment in conducting sales, aud have no delicacy in indicating how
we may be of service to you in any direction. We are.
With much respect,
Yours,
F. A. BOYLB & Co.
Messrs. Bryatit <& Stratton, St. Louis, May 1, 1859.
New York: .
Gentlemen — Your Mr. Stratton called on me to-day, and eflecteu
arrangements for a special partnership in the purchase and sale of provisions. I have foi-
merly consigned on my own account to John J. Cape of your city, but shall be glad to join
you in speculation. I have accordingly shipped, as per enclosed Invoice, 500 bbls Pork, and
200 bbls, of Lard, one-half of which I have charged to y our account.
Hoping that the result of this small adventure may be such as to encourage a more ex-
tensive and permanent arrangement, I beg to subscribe myself.
Very truly yours,
H. D. Van Sycml.
122
LETTER BOOK.
F. A. BoyU d; Co., Nkw York, May 8, 1859.
New Orleans:
Gentlemen — We enclose you Account Sales of the Sugar shipped us o\
the 2Gth ult. There can be no trouble in disposing of such a grade at fair rates, and, if ao
oeptable to you, we should like the experiment and risk of a much larger invoice.
Very truly yours,
BkYANT & STRATTOii
Afessrs Bryant <k Stratton, Detroit, May 13, 1859.
New York:
Gentlemen — We send you enclosed Account Sales of the Oil and
Leaa, snipped us the 3d inst. Your net proceeds, as per statement, has been carried to your
credit. Respectfully yours,
IIanna, Beaser <Sz Co.
n. D. Van Syckel, New York, May 17, 1859.
St. Louis:
Dear Sir — Enclosed please find Account Sales of the Pork and Laid
shipped us on the 1st inst. The result has been, greatly to our regret, unfavorable, but we
cannot attribute it to any fault of our own. Had we had, from indications, any reason to
expect a more favorable turn of the market, we should, of course, have held on ; but we
chose to secure both ourselves and you against a greater sacrifice, by submitting to a lesser.
You will see from the present quotations that we did not err in judgment.
Yours to command,
Brtant & Strattok.
Messrs. Bryant dk Stratton, Philadelphia, May 24, 1839.
New York:
Gents. — I send you enclosed Account Sales of the Pork sbippM
me on the 2d inst.
Hoping you will find the result satisfactory, I remain.
Yours truly,
R. W. HoADLil.
GENERAL LETTER OF INTRODUCTION.
Bet ANT, Stratton A Packard's MEBCANTn.K Collkqe, )
To Whom it may Concern: 18 Cooper Institute, New York, May 81, 1869. )
The bearer, Mr. John F. Simmons, is well known to us as a mosi
estimnble young man, and one possessing qualifications which will render him serviceable in
any poslcion of trust. He is a thorough accountant, and unusually expert and correct in cal-
3ulations We have no hesitation in recommending him to the public.
Very respectfully,
S. S. Packard, Resident Principal.
123
EXEECISES FOR THE LEAKKER.— FOURTH SERIES.
EXERCISES FOR THE LEARNER.
FOURTH SERIES.
1q the following transactions we have endeavored to present the prominent features of the
preceding Set, leaving the student to apply the principles without any special instruction
The two months' business will represent two years' as in Set. IV., bringing down the balance*
t the end of the first year and closing finally by Journal entries. As in Set IV. also, the
two methods of keeping Mdse. Co. Accounts are represented, to which the attention of the
student is particularly called.
Memoranda for April.
April 1. J. H. Goldsmith and ,* have this day entered into co-partnership
each investing $8000 Cash. The firm assumes to pay for J. H. Goldsmith, a note in favor of
II. W. Ellsworth, dated Jan. 15, with interest @ 6 % from date; face of note $300; interes'
due to date, $3.75. 2, Paid Cash for Store Fixtures, $1500, and for rent, six months ii
advance, $750. 3. Bo't of II. G. Reeve & Co., 8 bags Rio Coffee, 1280 lbs., @ 10 c. ; G chesb'
Young Hyson Tea, 297 lbs., @ 65 c, ; 10 boxes Virginia Tobacco, 350 lbs., @ 40 c. Ac
cepted their draft, @ GO days, favor of Chas. Strong, for the amount. 4. Received from
James Atwater, Lock port, to be sold on his and our joint %, each ^, 500 bbls. Flour, @ $8 ;
1000 bush. Wheat, @ $1.50; paid freight on same, in cash, $400. S, Received from D. L.
Wing, Albany, to be sold on joint % of himself, J. Walker, Schenectady, and ourselves, each
J, 1000 bbls., "Julian Mills" Flour, @ $8.50; paid Freight, in cash, $100. .6. Sold W, H.
Beebe, for cash, 1000 bush. Wheat, (Mdse. Co. A. Atwater's Consignment,) @ $1.83. 7.
Sold J. W. Lusk, on %, @ GO days, 2 chests Young Hyson Tea, 100 lbs., @ 75 c. ; Sold J. C.
Beale, on his note @ 10 days, 500 bbls. Flour, (Mdse. Co. A.,) @ $9; Closed Mdse. Co. A.,
and rendered James Atwater an Account Sales. Our charges for Storage, Advertising and
Cooperage, $75 ; Commission 2^ % on sales $ ; our ^ net gain, $98.37 ; James Atwater's
do. $98.38. 8. Shipped John R. Penn, Green Bay, Wis., to be sold on our joint %, each ^,
the following merchandise, bought on our note, @ 4 months, of H. G. Reeve & Co., 30 hhds.
N. O. Sugar, 32,000 lbs., @ G^ c. ; 40 bbls. N. O. Molasses, 1442 gals., @ 40 c. ; charges for
Drayage and Insurance, paid in cash, $75. 10. Deposited with Geo. K. Chase & Co., Bank
ers, cash $10,000. 12. Sold for cash, to J. & J. Wynkoop, 1000 bbls. "Julian Mills" Flour,
(Mdse. Co. B.,) @ $9.50; Closed Mdse. Co. B., and rendered Account Sales of the same to
D. L. Wing, Albany, and J. Walker, Schenectady. Our Charges, $75 ; Commission on Sales,
2^ %. D. L. Wing's ^ net gain, $195.83 ; J. Walker's do. $195.83 ; our do. $195.84. 15.
Paid cash for James Atwater's draft on us, at sight, $1000. 10. Shipped Robt. C. Spencer,
St. Louis, to be sold on joint % of himself, John Atwater, Chicago, and ourselves, each ^, the
following Invoice of Merchandise, bought of A. T. Stewart & Co., for cash : 20 pieces dark
blue Circassian, @ $12; 5G pieces green do. @ $10; 10 pieces Satinet, 300 yds., @ 90 c; 15
pieces Jeans, 450 yds., @ $1.25. Deposited cash, $10,000. 17. Shipped Stephen A.
Douglas, Chicago, pursuant to his order, 8 bags Coffee, 1280 lbs., @ 11 c. 20. Received
Let the student use bis own name.
124
EXEKCISES FOR THE LEAKJNEK.
cash ill full for J. C. Beale's note of the 7th inst. 91, Paid J. Walker's Draft @ sight, in
full of his %, per check on Geo. K. Chase & Co. 95. Received Account Sales from Johr
R Penn, Green Bay, of the Mdse, shipped him on the 8th inst. Our | net gain, $250.
30. Received from R. C. Spencer, St. Louis, Account Sales of the Mdse. shipped him on the
16th inst. Our I net loss, $125. Paid cash in full for J. II. Goldsmith's note and interpj^t —
face of note $300, interest due to date, $5.25
Memoranda for May.
May 1. Received from John R. Penn, Green Bay, to be sold on his and our joint %, eacu
5, 3000 bush. Wheat, invoiced @ $1 ; paid Freight per check, $350. 2, Bought on our note
at sixty days, of Claflin, Mellen & Co., 10 pieces Broadcloth, 1000 yds, @ $4.50; 20 pieces
Cassimere, 1500 yds, @ $2. 3. Shipped T. W. Woolson, Mt. Pleasant, Iowa, to be sold
on our joint %, each ^, 10 pieces Broadcloth, 1000 yds, @ $4.75, 10 pieces Cassimere, 750
yds, @ $2.25 ; paid charges per check, $75. Received Cash of John Atwater, in full of %.
4. Sold J. C. Bryant, on his note @ ten days, 3000 bush. Wheat, (Mdse. Co. C — Penn's
Consignment), @ $ 1.50. Closed Mdse. Co. C, and rendered J. R. Penn an Account Sales of
the same: Our charges for Storage, Advertising, etc., $150; our Commission, 2^ % on Sales,
$- — . J. R. Penn's net proceeds, $1943.75. Our J net gain, $ . «i. Discounted our
acceptance favor of H. G. Reeve & Co., due June 5th. ; discount off thirty-one days, @ 7 ?&.
Paid Cash for the face of the note, less the interest for the above time, $ . O. Shipped
Chester Packard, Milwaukee, to be sold on joint % of himself, D. V. Bell, Chicago, and our-
selves, each J, 4 chests Young Hyson Tea, 197 lbs., @ 75 c; 10 boxes Virginia Tobacco, 350
lbs., @ 50 c. ; 100 sacks Rio Coffee, 10,000 lbs., @ 10 c. The Tea and Tobacco were from our
store ; the Coffee was purchased of Acker, Merrall & Co., on our acceptance @ ten days
Our 1 the above Invoice, $040.91; C. Packard's do., $040.92; D. V. Bell's do., $640.92.
7. Received from 11. B. Tuttle, Cleveland, to be sold on joint % of himself, N. C. Winslow,
and ourselves, each i, 1000 bbls. Flour, invoiced @ $7 ; paid Transportation charges per check,
$450. Our ^ invoice, $2333.33. ] O. Paid James Atwater in full of % per check, $ .
12. Sold Chas. E. Carry 1 10 pieces Cassimere, 750 yds, (f? $2.50. Received in payment
James Hill's ^ote, dated Jan. 1, 1859, with interest at 7 % from date, $1500. Interest on
same to date, $38.21. Cash for balance, $ . 15. Sold W. II. Clark for cash, 1000 bbls.
Flour, (J^Idse. Co. D.), @ $8.50. Closed Mdse. Co. D, and rendered H. B. Tuttle and N. C.
Winslow each an account of the sales. Our charges for Storage, Advertising, etc., $150;
our Commission 2J % on sales, $ . II. B. Tuttle's net proceeds, $2562.50 ; N. C. Wins-
low's, $2562.50; our net gain, $229.17. 16. Remitted II. B. Tuttle cash in full of %, $;
deposited in Bank $9000. 17. Received cash of Stephen A. Douglas, in full of %, $
Received cash of J. C. Bryant, for his note of May 4th, due this day, $ . 19. Pai.l
cur acceptance of the 6th inst., favor of Acker, Merrall «fe Co., due this day, in cash, $ .
20. Received from T. W. Woolson, Mt. Pleasant, an Account Sales of the Mdse. shipped
him the 3d inst., to be sold on our joint %. Our net proceeds, remitted in cash, $4000. 25,
Received fronr Chester Packard, Milwaukee, an Account Sales of the Mdse. shipped him the
6th inst, foi % and risk of himself, D. V. Bell, Chicago, and ourselves, each -J. Our net pro-
ceeds $750. 28. Paid N. C. Winslow's draft on us, in full of his %, $ ; our draft on
D. V. Bell, for $040.92 ; Gish for balance. $^ — . 30. Received Cash of R. C. Spencer,
in full of %, $ ; paid Jshn R. Penn cash, in full of %, $ ; paid D. L. Wing cash, in
full of %, $ .
l%5
EXERCISES FOK THE LEAKNER.
Inventory of Property on hand, April 30.
4 Chests of Young Hyson Tea, 200 lbs. @ 63 c
10 Boxes Virginia Tobacco, 350 lbs., @ 40 c.
Store Fixtures, $1400; unexpired Rent, $625, (charged to Expense)
126
140
2025
2291
Inventory, May 31.
Store and Fixtures, 11400 — Unexpired Rent, $500
Interest due on J. Hill's note
1900
43
1943
J5
76
Resources and Liabilities, April 30.
Merchandise . .
Expense* . . .
Cash
J. W. Lusk . .
r. R. Penn . . .
Geo. K. Chase & Co.
R. C. Spencer . .
John Atwater . .
Stephen A. Douglas
266
2025
6127
25
75
2981
80
16970
84
923
33
524
17
140
80
19
80034
Bills Payable
James Atwater .
D. L. Wing . .
J. II. Goldsmith
3117
4598
5862
8075
8379
80084
85
38
50
86
60
19
Resources and liabilities, May 31.
Expense . . .
IntCB-st ....
Ca'jn
J. W. Lusk . .
Geo. K. Chase 66 Co.
T. W. Woolson .
Chester Packard .
Bills Receivubie .
1900
43
75
852
21
75
20497
40
3256
25
1390
92
1500
59
29515
Bills Payable
J. II. Goldsmith
* Fiztares and nnezpired rent.
126
SEl V.
JOBBING AND IMPORTING BUSINESS,
KMSRACINO AS PRmCIPAL BOOKS,
CiSa BOOK, DOMESTIC AND FOREIGN INVOICE BOOKS
SALES BOOK AND JOURNAL;
AND AS AX7ZIUASIE8,
INVENTORY BOOK AND BILL BOOK,
WITH ▲ BOIXITSTK OF TRANSACTIONS TAKKN FBOM ONX OF THS MOST KXTKNSIVB BUSINSSS HOI7B18
IN NSW TOBK.
KEMAEKS ON SET V.
REMAEKS ON SET V.
In the following set we have illustrated a practical method of keeping the accounts of an
Importing and Jobbing business. The particular feature in this set consists of the mannei
and form of original entries, which are made in separate books, — elsewhere used as auxil-
iaries, — from which they are either journalized, or passed directly to the Ledger at stated
periods. This method has many advantages over consecutive entries in the Day Book, and
in one form or other, is adopted generally in all large establishments. The labors of tha
Book keeper are thus divided up, and the separate departments of the business receive such
special record as to present all the facts in their clearest light. Thus, if any particular infor-
mation is desired respecting purchases, all the facts cjin be shown at once from tne Invoice
Book ; and, in the same manner, the fact and condition of the sales can be shown from thn
Sales Book, the receipts and disbursements of cash from the Cash Book, etc.
In the previous sets these books are represented, but they are used only as auxiliaries, the
entries of the business being made in the other books without reference to them. This plan,
it will be evident, although possessing some merit*', involves a large amount of unnecessary-
labor, which would prove a great objection in extensive houses. The special books them-
SH^lves, however, are so essential to every well-regulated business, that they would receive
&Tor, even at the expense of this additional labor. If, therefore, they can be used without
additional labor, and even at a reduction of labor, it would seem that no farther argument
would be needed to secure their adoption.
The only difficulty in the way of using special books for original entries lies in the dangei
of making the entries in the different books conflict with each other upon the Ledger. For
example: if a Cash Book is used, it should be competent to show all receipts and disbuiae-
hients of cash. This purpose is very easily effected by placing the receipts on one side, and
the disbursements on the other — the difference, of course, being, at any time, the amount on
hand. But this does not cover the entire utility of the Cash Book. At the same time that
cash received is entered upon the debi' side of the Cash Book, the object or cause for whirh
it is received may also be stated ; in which case a double entry is effected, although but one
amount shown. The same principle will hold in entering the disbursements of cash; as, when
cash is paid, the object or cause for which it is paid is properly expressed. The appropriate
caption for the debit side of the Cash Book, then, would be " Cash Dr. To Sundries ;" the
debit of cash being the total amount r^^ceived at any specified time, and the credit of sundries
being the separate amounts produced by the different causes represented ; and, on the other
hand, the caption for the credit side wculd be " Sundries Dr. To Cash," cash being credited
for the total disbursement as shown, and che sundry auses for which cash was paid debited
for their separate amounts. It will thus be seen that the dehit side of the Cash Bock con-
tains the credits of all accounts producing cash ; and the credit side, the debits of all accounts
costing cash.
Upon the same principle the Invoice Book, which sustains the same relation to merchan
disc that the debit side of the Cash Book does to cash, while it shows, in total, the entire cost
of merchandise, will also exhibit the separate credits producing merchandise ; and the Sales
Book, which sustains the same relatiot to merchandise that the credit side of the Cash Book
does to cash, while it shows, in total, the proceeds of merchandise, exhibits also the separate
debits produced by the sales. The diflicnlty of which we have spoken will now be apparent ;
as, in every case involving any two of these books, the tendency will be to debit and credit
the same accounts twice — effecting thus a double entry not contemplated by projectors of the
128
KEMAKKS OIN SET V.
Bcieiice, and of course not warranted by the facts in the case. Thus, all cash receipts being
entered, at specified periods, in total, from the debit aide of the Cash Book, and all cash dis-
bursements from the credit side, it would be erroneous to enter cash from any other book ;
and the same theory will apply with equal force to the Invoice and Sales Books.
If, therefore, the peculiar rights of each of these books be respected, viz. : permitting al)
cash entries to be taken to the Ledger from the Cash Book, and all purchases and sales of
merchandise from the Invoice and Sales Book, it would preclude the entering of cash in the
Invoice or Sales Book, and also of merchandise in the Cash Book. Take a single example :
Suppose the entry to be " Cash Dr. To Merchandise." All cash receipts must appear on th
debit side of the Cash Book, and the entry on that book would be " To Merchandise," extend
ing the amount into the debit column. When the Cash Book is posted, this amount will, of
course, be included in the total cash debit, and must comprise one of the opposite, or credit
entries. So caoh would be debited and merchandise credited both fi ^m the Cash Book.
Again, all sales of merchandise must be entered in the Sales Book, an' -"vhen entered the cor-
responding debit — in this case, cash — must also be expressed. When the Sales Book is
posted, the total for which merchandise is credited will include this amount (already entered
end posted from the Cash Book), to correspond with which, and to secure the necessary con-
dition of equal debits and credits, cash must again be debited. According to this standard
therefore, in every case where merchandise is either bought or sold for cash, and the fact ex
pressed through these special books, this error of duplicating debits and credits would occur.
To avoid this difficulty — the only one which sUmds in the way of classified original entries
— two methods have been s\iccessfully used ; one of which places the books upon an equality,
using "neutralizing" accounts for the conflicting entries, and the other acknowledges the su-
premacy of some one or more books, to which, in all matters of conflict, the others must
yield. To be more explicit : In the case before instanced, " Cash Dr. To Merchandise." If
the Cash Book and Sales Book were upon an equality, the one claiming to furnish all casn
entries for the Ledger and the other all merchandise sales, it would be improper to write
Cash as a Ledger title in the Sales Book or Merchandise in the Cash Book, for the reasons
adduced ; but a neutralizing account might be opened, to take the place of cash in the Sales
Book and merchandise in the Cash Book, thus receiving a debit and credit of the same
amount, which would, of course, cancel it. Suppose the merchandise to be sold to A, for
cash : In the Sales Book the entry would be " A" Dr., and in the Cash Book, " A" Cr. The
result would be the same as if A had purchased on accoimt, and subsequently paid the amount
in cash, thus closing his account. But suppose we acknowledge the supremacy of the Cash
Book in all cases where the two are concerned. When merchandise is sold for cash, the entry
in the Cash Book will be " Cash Dr. To Merchandise," both of which — the debit of cash and
the credit of merchandise — will go to the Ledger from the Cash Book. The same entry can
be made in the Sales Book, but not posted. For this purpose a special column may be used
— as in the following examples — which, at such times as the general result may need to be
shown, can be extended into the other column, which in the total footing will embrace all
the sales.
Each of the above methods has its advantages ; the latter, however, is generally preferred
as oeing more brief and direct, if not more in keeping with the spirit of the times.
The Invoice Books, and the Sales Book which follow, contain all purchases and sales of
merchandise, with the conditions thereof All sales and purchases not made for cash pass
from these books to the Ledger ; all others, from the Cash Book.
The transactions of ^his ■■ u, and most of the forms, are taken from one of the largest Im
poitmg and Jobbing Houses n New iork, and may be relied upon as eminently practical
B 129
ROUTINE AND EXPLANATIONS.
ROUTINE AND EXPLANATIONS.
ToAT the student may get the full advantage of this Set, it will be necessary that he pay strict atlentioi
to the routine of transactions as indicated below. Let him make the entries in the different books preciselj
In the order given. Let the invoices be copied with care, and all the calculations and extensions made by
himself. It is thus alone that the design of the Set will be carried out. The exercises connected wila
the Foreign Invoice Book, involving compound numbers, and reduction of currencies, are highly essential
In reducing sterling to federal currency, we have taken the Custom House standard of $4.84 to the £ sterlings
We have also added to each foreign invoice, the duties, which being paid in cash, are not extended with tbi
Invoice, but posted from the Cash Book. In most importing houses, the duties are not extended in the In
Toice Book, but only in the Cash Book, For strong reasons, we prefer the method here adopted.
ROUTINE FOR JULY.
I. The books are opened, as per first Journal entry. (Inventory Book copied — Cash Book commenccO
with balance on hand — Bill Book written up to show tlie notes, receivable and payable, as indica+^d in Journal
entry.). . . .Bought of C. F. Spalding, on note @ 4 months. Invoice of Sheeting, $553.57, (Dora. i. B. — B. B ^
, . . .Received per steamer Edinburgh, Invoice of Jaconets from S. B. Higgins & Co., $1,252.55 ; Paid dutiec
in cash, $300 61, (For. I. B. — C. B.) Bought of B. S. Olmstead for cash. Invoice of Prints, etc., $1,303.76
(Dom. L B. — C. B.). . . .Sold Gordon Bailey, Buffalo, on note @ 8 months. Invoice of Jaconets, $891.35, (S
B. — B. B.). . . .Sold Ira Packard, Peru, Ind., on note @ 6 months. Invoice of Hose and Gloves, $273.62, ( 8
B. — B. B.) Sold Mdse. this day, per Petty Cash Book, $97.60, (C. B.) Received cash on % of John
Lewis, $500, (C, B,)
3. Paid Francis <fe Loutrel for Stationery, $16,75, (C, B.) Lent J. E. Jenkins, for one day, $1,000,
(C. B.) Sold Mdse. per Petty Cash Book,, $125, (C. B.)
5. Sold Iliram Newell, Tonawanda, on his note @ 6 months. Invoice of Sheetings, $697.54, (S. B. — B. B.)
Received of J. E. Jenkins, return loan, $1,000, (C. B.) Paid cash for Postage Stamps, etc., $8, (C. B.l
Paid S. S. Packard, on private %, $100, (C. B.)
6. Received cash of J. H. Lewis, in full of %, $1,200, (C. B,)
7. Paid Richard Beal cash, in full of %, $186, (C, B.)
S. Sold Mdse. per Petty Cash Book, $157, (C.B.)
10. Bought of John Walker & Co., on our note @ 8 months, Invoice of Cotton, $1,006.64, (Dom. I. B.—
B. B.). . . .Received per steamer Manchester, from Johnson, Quigley & Co., Manchester, Invoice of Cotton and
Silk Goods, $221.11 ; Paid duties in cash, $44.21, (For. L B.— C. B.) Bought of Clafflin, Mellen <t Co., for
cash. Invoice of Prints, $2,312.52, (Dom. I. B.— C. B.) . . Sold W. P. Pratt, Cincinnati, for cash. Invoice of
Jaconets, 714.28, (S. B. — C.B.) Sold Baldwin, Laundon <fe Co., Elyria, O., on their note @ 8 months
InToice of Shirting, $869.38, (S. B.— B. B.)
II. Received cash of W, Pennel. in full of %, $483.50, (C. B.).
12. Sold Charles Claghorn, Homer, 111., Invoice of Cloths, $433.12, (S, B.— C. B.) Paid cash tot
Drayage and Porterage, $55, (C. B.)
14. Received cash in full of John Gundry's note, 1,580, (C. B. — B. B.)
15. Received per steamer .^tua, from A. <fe J. Bailey, Bradford, Invoice of Goods, $246.38 ; Paid dutlei
Ir cash, $46.80, (For. I. B. — C. B.). . . .Sold E. Mussey <fe Co., Amherst, O., on their note @ 6 months. Invoice
of Shirting, $923.26. (S. B.— B. B.) Sold Mdse. for cash, as per Petty Cash Book, $115.75, (C. B.)
18. S. 3. Pomroy's note discounted, $1,000 ; Discount off, $16.92, (C. B.— B. B.)
20. Bought of E. Lambert & Co.. on our note @ 8 months. Invoice of Bleached Shirtings, $660.73, (Dom.
I. B. — B. B.) Sold Starr <fe Co.. Elyria, 0., on their note, @ 6 months, Invoice of Prints, $1,425,48, (S. B.
_B. B.) Paid J. T. Calkins on private %, $150, (C. B.)
21. Sold Mdse. for cash, per Petty (ash Book, $127.60, (C. B.)
22. Sold M. Sliipley <fe Co., Cincinnati, on his note @ 8 months. Invoice of Bleached Shirting, $1,460.14,
tS. B— B. B.)
23. Pa'.d cash in full of note, favor of H. G. Smith, $4,000, (C. B.— B. B.)
25. Sold Bidwell & Co., Adrian, Michigan, for cash. Invoice of Goods, $400, (S. B.— C. B.) Starr
t Co.'s note discounted; Face of note, $1,425.48. Discount off, $60.44, (C. B. — B. B.) Received per
130
EOUTINE AND EXPLANATIONS.
steamer Halifax, from S. T. Horton, Glasgow, Invoice of Goods, |440.14 ; Paid duties in cash, $105.63. (Foi
I. B.— C. B.) , . .Bought of A. T. Stewart 4 Co., for cash, Invoice of Prints, |893.63, (D. L B.— 0. B.). .Paid
slerk hire in cash, $65, (C. B.)
27. Sold Mdse for cash, as per Petty Cash Book, $276, (C. B.)
2§, Sold R C. Packard, Crystal Lake, Wis., on his note @ 8 months, Invoice of Goods, $171. 04, (8. B
-B. B.)
29. Paid D. V. Bell, on private %, $176, (C. B.)
30. Sold Mdse. as per Petty Cash Book, $83, (C. B.)
31. Received cash of R. Barker, in full of %, $1000.
ROUTINE FOR AUGUST.
1. Sold O. C. & E. C. Wright, Lockport, N. Y., on their note @ 6 months, Invoice of Goods, $1432.89
S. B.— B. B.) Paid cash for Drayage and Porterage, $17.60, (C. B.)
2. Lent J. H. Tobitt, $600, (C. B.)
3. Sold C. R. Caulkins, Delaware, 0., for cash, Invoice of Prints, $739.63, (S. B.— C. B.) Sold Mdse.
to per Petty Cash Book, $89.27, (C. B.)
5. Discounted our Note, favor of Geo. A. Crocker; face of note $1426. Discount off, $19.41, (0. B. — B. B.)
. . .Sold D. S. Hoadley, Berlin, 0., on his note @ 8 mos., Invoice of Goods, $527, (S. B. — B. B.)
6. O. C. <fc E. C. Wright's note discounted ; face of note, $1432.89. Discount off, $49.60, (C. B )
7. Sold Mdse. as per Petty Cash Book, $150, (C. B.)
8. Sold J. D. Hinde <fe Co., Cincinnati, on their note @ 8 months, Invoice of Mdse. $762.67, (S. B — B. B.)
10. Received per steamer Australia, from Wm. Tliornton & Co., Bradford, Invoice of Goods, $1454.64.
Duties paid in cash, $276.38, (For. I. B. — C. B.). . . .Sold Geo. A. Crocker, Rocliester, for cash, Invoice o^
Prints, $912.76, (S. B. — C. B.) Bought of Wilson G. Hunt, on our note @ 8 months. Invoice of Cloth«
$708.40, (D. L B— B. B.)
12. Sold Mdse as per Petty Cash Book, $218.60, (C. B.) Paid cash for Drayage, $100, (C. B.)
15. Sold W. H. Woodbury, Chicago, 111., on his note @ 8 months. Invoice of Goods, $908.29, (S. B. —
B. B.) Paid J. C. Bryant cash on private %, $160.
17. Sold C. C. Jones, Peoria, 111., on his note @ 6 months. Invoice of Goods, $946.94, (S. B. — B. B.). . .
Sold Mdse. as per Petty Cash Book. $876, (C. B.)
20. Received per steamer Lebanon, from J. Muir & Sons, Manchester, Invoice of Goods, $188.62. Paid
duties in cash, $46.27, (For. I. B. — C. B.). . .Bought of Arnold & Constable, on our note @ 8 months, Invoice
of Cloths, $1926.14, (Dom. L B.— B. B.) Bought of Grinnell 4 Minturn, for cash, Invoice of Goods,
$1492.68, (Dom. L B.— C. B.) Sold Paul Roberts, Buffalo, for cash, Invoice of Goods, $923.40, (S. B.— C. R)
23. Sold Mdse. as per Petty Cash Book, $176, (C. B.)
25. Sold M. Tompkins A Co., Lasalle, IlL, for cash. Invoice of Gloves, $460.75,( S. B.— C. B.) C. Ci
Jones' note discounted; face of note, $945.94. Discount off, $82.19, (C. B.). . . .Paid Postage, Porterage, etc.,
In cash, $13, (C. B.) Sold C. J. Dietrich, Bellefontaine, Ind., on his note @ 8 months. Invoice of Goods,
$402.60, (S. B. — B. B.). . .Sold Baldwin A Co., Cleveland, on their note @ 8 montlis. Invoice of Prints, $717.47,
(S B.— B. B.)
27. Sold Ubsdell Pierson A Co., St Louis, on their note @ 8 months, Invoice of Mixtures, $3303.71,
',S. B.— C. E.)
2§. Sold Raymond A Co., Cleveland, on 8 months note, Invoice of Goods, $641.72, (S. B. — B. B.)
30. Sold Jonas Stratton, Analierst, O., on note @ 8 months. Invoice of Goods, $467, (S. B. — B. B.!)
31. Sold Mdaa per Petty Cash Book, $1 15, (0. B.). . , . J'aid cash in Ml of Drayage %, $30.76, {Q, R)
131
DOMESTIC INVOICE BOOK.
DOMESTIC INYOICB BOOK.
Thib book contains copies of all invoices of merchandise purchased from importera and
others in this country, with the conditions of all such purchases. Each lot and package in
distinguished by some peculiar mark, which is transferred to the invoice, thus serving %a
important purpose in checking the articles, adjusting disputes, etc.
The purchases on time, for which notes are given, are passed to the Ledger from thi
book ; those for cash, from the Cash Book.
JULY 1. I860.
C. F. Spalding & Co.,
4 months.
2 ps. 10-4 Sheeting, 92* @ 66e.
61.01
2 " " 92« 60
66.66
2 " - 91» 66
69.64
2 " " 92' 70
64.68
1 " " 46» 76
84.12
SO
1 •• " 46» 65
1 « * 46« 70
1 - - 44' 75
1 " •• 46* 80
1 " " 46 76
1 « " 46* 80
1 " " 46* 90
80.89
82.88
88.19
86.40
84.50
86.60
40.95
'
iS
1 " " 46 96
Note @ 4 months from July 0.
44.14
558
57
B. S. Olmstead,
6 months.
6 Cases Colombian Prints,
iLT
096
21«7*
A.S
681
1918*
X
861
841
1986
1886*
A.0
411
1141
1742 9616 yds. @8<;. lessee.
1 Bale 2ilb. Black Wadding 80 yds. @ 40«
2 Bales Brown Globe Drilln,
loavi*
721.18
12.00
1147
1029 2061' @ 7f
157.21
4 Cases Ilarop Prints,
H.
481
246 1331'
0.
491
1262 1681'
u.
609
1108 1222
M.
•7
1276 1716* 6861 @ B^e less 2^
r % 482.91
1878.25
Low6^
68.67
1804.68
M. 97—1276, short 84 yds.
2.82
1801.76
Add error in extending; Harop Prints,
2.00
1808
76
1808.76
— .
Amoimts forward,
1808
76
658
57
IS2
DOMESTIC IKVOICE BOOK.
JULY 10, 18G0.
794
800
884
704
9855
9600
8615
9424
9787
9024
7906
8168
•629
199
288
498
888
•096
760
761
768
764
8892
5788
6202
4187
5680
6686
Amoonts forward,
John Walker & Co.,
40 pa. Duck Drilling, 14n» @ 17c.
40 " " 1389» 18
86 Brown " 1415* 25
42 W. B. Diaper, 2169' 7i
Note @ 8 monthB from July 10.
//
8 months.
289.96
250.11
853.88
162.69
1808
3818
898
76
81
88
668
1006
880
81
84
aafflin, Mellen & Co.,
60p8.Prmt8, A 875 1782
62 " 818 1831* 8618»yda.@
8 months.
lOe. 861.87
9H 624.80
9c. 652.88
9c. 176.07
7ic 829.21
7i<r. 816.76
9c. 177.87
65 " 812 1845*
62 " 817 1803'
64 " 814 1870» 6519 «
61 " 816 2112'
69 " 822 2033*
67 " 879 1996* 6142* "
66 " 818 1945' "
68 " 820 2249'
60 " 821 2140 4889* "
60 " 824 2164^
69 " 828 2069' 4228» "
68 " 825 iyVO» "
Deducted
Less 1 ps. short 86* @ 7i«. 6^ off
am
20
' HUM
121.84
481 ({.07
2.55
Edward Lambert & Co.,
4 Cases 4-4 Bleached Shirting,
40 1732*
40 1786
40 1766
40 1731» 6955 yds @ 9H
Note @ 8 months from July 20.
8 monthsL
71
CM.
E A.
E A
D C.
E N.
E.O.
A. T. Stewart «Sz Co.,
52 Prints, jjjk 973 1868
62 " 965 1834
68 " 967 1896' 6587'yi«@8&
446.98
498.68
81 " 972 1924*
49 •• 968 1964»
49 « 971 1929 6808 <g8H
Discount off 5^
aa
Purchases on time (taken to Ledger)
Cash Purchases (entered from C. B.),
Total for the month.
MO.M
47.08
89S.0S
8220
4609
M
91
6780
88
"TS5
DOMESTIC INVOIOE BOOK,— SET V,
NEW YORK, AUaUST lO, 1S60.
WUson G. Hunt, 8 months,
22 ps. 8-4 Doeskin,
jtfeieS 723 28| JtieS 899f 22^
"^ 870 29 748 29
754 28f 894 28i
864 28i 835 28|
860 29| 834 28^
755 294 729 2R4
759 28i S6i i^
750 27| 233 28i
822 294 '^Ifi 27i
#162 654 28J 80fi 2'.'|
163 833 28| 8994 2H=.616 yds. @ $1.18
708
40
Note @ 8 months from Aug. 10.
20
Arnold & Constable, 10 month».
1811
80 Belgian Casa. 1091
1881
80
1178'
1896
80
1137
1916
28
' 1094'
1908
80
1151'
1787
83 World
B Fair 1268
1116
80
1168
1828
83
1279'
1884
83
1261'
1846
80 " 1147
1906
80 Sebastopol Checks 1168'
1918
27 " " 1245'— 14191 yd8.@184<!.19l6.78
Cooperage. 8.00
1918.78
Add 77 yds. @ l^c. 10.39
Less Freiirht. 8.08 7.86
1926
14
Note @ 8 months.
Grinnell & Minturn, 8 months
«.M.
A.
788
784
786
1240'
1239' " Springfield,"
1234'
€.M.C
A.
689
640
1208
1233
6 Cases 4-4 Bleached Sheeting, 6156 yds. @ lOJc. 646.88
S.M.
D.
169
170
171
172
178
1202'
1197'
122,3'
1171'
212'
U.11
128^
UI>
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<i.
87
1
11
4
6
88
12
10
85
60* Fine Mohair Mixtures, 2877" 5W.
Case, Pkg, etc., 12«. 6d. Com. 32». lid.
1* % discount
Carriage to Lirerpool
65
_2
18
5
10
_6
68
802
8
298
2
_4
5
J6
9
1
_8
1
_7
6
5
0. B. Duties 19 %— Paid in Cash
800
10
11
276
88
1464
04
"0
F.B
iCo.
674
James Muir & Sons, Manchester,
per Str " Lebanon" July 10, 1860.
25 ps Wi.ite I'iques, 324 @ 2s. Ad.
Discount off
87
16
9
2
Charges, Commission, etc.
0. B. Duties 24 % —Paid in Cash
Total imports for the month
Duties on same
T'*al costs o'^irn'oorts
87
1
6
12
li
7
88
19
6
45
i?
IW
•9
1648
821
1964
Bl
186
SALES BOOK.
SALES BOOK.
This book contains all the regular sales, either for cash or on time ; the cash sales being
extended in the inner column, are, of course, not included in the amount for which merchan-
dise is credited from the Sales Book. These sales, together with the petty sale*" not entered
'VL the Sales Book, are posted from the Cash Book. The total credit of the rnerchandise
ftccoun'; for the month will agree, in amount, with the monthly recapitulation in the Salei
Book
NEW YORK, JULY 1, I860.
Gordon Bailey, Buffalo, N. Y.
^
205
208
50 ps. 9-8 Printed Jaconets, 2572 yds. @ 15c. $385.80
60 ps. 9-8 10 B.&W. " 15e9' " 10c. 150.96
-
209
58 ps. " " 1455 " 10c. 145.60
210
66 ps. " " 1394 " 16c 209.10
891
35
Note ($ S months Aroin July 1.
,
L P
Ira Packard, Peru, Ind.
71
25 doz. Ladies' White C!otton Hose, (g |1 $26.00
20 " " 1.26 26.00
29 " " 1.13 82.77
46
1 doz. Pearl Spun Silk Hose, 8^ 8.00
46
1 •• " 9 8.00
I
4 doz. Black " 9 $7.50 80.00
6
2 doz. Pearl " 20.00 40.00
100
8 doz. Ladies' Lisle Gauntlets, 4.50 36.00
101
6 " " 4.75 23.75
15
6 " " 9.00 46.00
273
52
Mote (eg 6 months from July 1.
Ilirjim Newell, Tonawanda, N. Y.
<'>
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 <k Co.'s Inv., per Dom. L B.
Drayage and Porterage
Duties, as per Foreign I. B
Discount on Pomeroy's note
On Private %
Note favor H. G. Smith due
Duties, per Foreign I. B
A. T. Stewart <fe Co.'s Invoice, per Dom. L B.
Clerk hire, |40; #26
Discount on Starr A Co.'s note ....
On private %
Mdse. purchased for Cash ......
Total Cash paid oat during the montli . .
B«I*Doe OB haad
Paid Drayage, |1 ; Porterage, |7.80 . .
Lent J. H. Tobitt
Discounted Note favor Geo. A. Crocker .
Discount on O. C. <t E. C. W.'s note . .
Duties, as per Foreign LB
Paid Drayage, on %
Paid on private %
Duties, as per Foreign LB
Bot. of Grinnell, M. A Co.. per Donx L B.
Porterage, $5 ; Postage, |3 ; Charity, fS .
Discount on C. C. Jones' note
Paid Drayage in fiill
Mdse. purchased for Cash ......
Total Cash paid tor the month ....
B&l&ooe OD haad .....
nar
JOm.
300
61
1303
76
16
7ft
1000
8
100
185
44
21
2312
52
55
46
80
16
150
4000
9^
105
63
893
63
65
50
44
16
175
5007
5822
11
5007
16
10829
27
««it
01
17442
33
17
50
500
1426
49
60
276
38
100
150
45
27
1492
58
13
32
19
50
75
1814
23
2339
04
1814
23
4153
2t
»017
88
i3ro
60
Sun/tritt.
BILL BOOK— SET V.
The Bill Book can never, with advantage, be made & principal book, from which to post;
although some authors have attempted so to use it. The form presented below is the best
for general purposes, although the arrangement in the former example is more comprehensive
Bills Pteoeivstble.
A*.
Wh«n
Bto'td.
I>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.
<S> 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 ■
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O &i=.&oot/)a8 : CO m »> -t ■* o ; 't-i . .Aai
^ ^ ■*■*■* •-»
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low OS c^
. « o» -O ©1 O
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!Ji'l^l=
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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
<St.
IS
SDr.
I860
Jan.
4 To Sundries
James 1^. IDooley.
114
I860
Jan.
10 By 10 Tons Coal
Cr.
60
mt
Sirmner Fao'ka.rd.
€t
?860
Jan.
6
ro Sundries
1
89
m.
Jabez
TDiiTihaTn.
€t
I860
Jan
9
ro Weddinf; SidA
1
69
168
LEDGER,— SmGLE ENTRY.
mt. I?,ot)ert S- Hayward.. St
.'860
Jail,
12
To Sundries
s
65
1860
Jan.
16
By Note @ 80 days.
t
«■
==x
?3r.
ITJra^t.nR Yoimg. «t
1»90
Jan.
14 To Making and
Rep^ring
8
14
2Dr.
IDavid. T. FHiller. «t
I860
Jan. Vt
To Sundries.
47.
60
X3x,
Oliarles Clagliom. «lt.
I860
Jan,
18
To Sundries
a
sa
60
dr.
Hienry !DT?7'igli"t. <Ir.
1860
Jim.
20
To Frock and Pants.
s
10
Wt.
SoliTiyler O orbit. €r.
1860
Jan. '21 To Sundriea
i
1
s
VI
60
ajr.
'VT'ilsoii O. tlimt. ^t.
1860
25 ByMdsa
t
vn
CIr
rTeirry Sliaft.
€t
a860
BO
ToSnndries
1
84
XI
;9
PROCESS OF CHANGING.
PROCESS OF CHANGING.
The Intelligent learner need not, at this stage, be told that the first requisition in opening
ft Set of Double Entry Books is a statement of resources and liabilities. This statement is
also necessary in Single Entry as often as it is desirable to know the progress or condition of
the business ; either with a view to apportioning gains and losses, or for any other purpose what-
ever. In the preceding Ledger we have a systematic record of such of the resources and liabili-
ties as consist of personal accounts, — the remainder must be ascertained from some other source.
Inasmuch as the partners were credited, each for his net investment, we are enabled to
know from their accounts what was the original capital. If there be now, either more or lesa
net resources than this original investment, the result will show a gain or loss, as the case
may be. If a gain, the partners should, of course, be credited in their proportionate shares ;
and if a loss, they should be debited. This will, again, equalize the resources and liabilities,
and give us sufficient data for a Double Entry Ledger.
To this end we present the following
Preparatory Statement.
Statement of the Resources and Liabilities of James
Mason and Robert Walker, who have this day changed
their Books from Single to Double Entry.
Resources.
Personal Accounts Receivable (already posted)
Notes Receivable on hand per Bill Book . .
Cash, per Cash Book
Merchandise, per Inventory
Store and Fixtures, per cost
Liabilities,
413
815
6834
2075
6750
Personal Accounts Payable (already posted)
James Mason, Net Investment ....
Robert Walker, " ....
Total net gain in business
James Mason's ^ $681.61
Robert Walker's I 681.62
925
7750
7750
50
73
17788
23
10425
1363
23
From this schedule it will be evident that when the above resources and Tabilities nre
duly entered upon the Ledger — the resources to the debit, and the liabilities to the credit of
the accounts representing them — they will lack just the amount of net gain ($1303.23) of
balanciing. If this amount, then, be entered to the credit of the partners, where it properly
belongs, and the additional accounts opened, we shall have the commencement of a Double
Entry Ledger.
We now complete this process, crediting the partners each for his ^ gain, and openmg ao-
counts in the extended Ledger with the additional resources : Bills Receivable, Cash, Merchan
dise and Store and Fixtures. These four new accounts constitute the " change," and will serve,
very clearly, to show the exact difference in the two systems, so far as the Licuger is concerned.
160
LEDGER— DOUBLE ENTRY.
SDr
Bills PLeceivable.
Ct.
PS60
Jan. 81 jN'otes on hand.
815
■ — 1
SHr. Cash.. OTr
800
Jan.
W
On hand
68S4
rs
mhr.
"h^ erch.giiid.ise.
2976
€t.
SDr.
I860
•/an. $1 iValaatioik
Store and. F'ixtures.
6760
Zt.
It is always proper before commencing the current record of business in Double Entry
Books, to ascertain if the Ledger balances. With this view we submit the following
Trial Balance.
Baioxch. Pact or Lman.
Dm
Or.
/V -
Or
8431 kl
. . . James Mason
500
8931 Isi
8431 62 :
. . Robert Walker
8431 62
350
. . John Jones . .
•
150
500
44
)0
. . Wm. Patterson
44
50
51
50
. . Joseph Kinsey .
•
66
50
15
64
. . James M. Dooley
114
50
89
, . Sumner Packard
39
59
1
. . Jabez Dunham .
59
14
. . Erastus Young .
14
47
)0
. . David T. Fuller
47
!>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 <fe Brokaw, on our note @ 60 days,
Mdse, per Invoice
Sold Wm. Patterson* on %,
3 doz. Vest Patterns @ $50
10 yds. Blue Broadcloth @ SO
20 yds. French Cassimere .... @ $4
. . '$150
. . 6^
. . 80
8
Received of James M. Dooley, Cash in full of %
Paid the following expenses in Cash :
Clerk hire $ 25
Seamstress's wages 115
*-__ — _. 10 HZ
Sold R. C. Davis & Co., Albany, on their Note @ 4 months,
Mdse, per Invoice
12 -—
Bought of James Dunham, for the private use of Robert Walker,
1 Firkin Butter, 100 lbs @ 25 cts. . . $25
1 Bbl. " Seek no Further" Apples 6
1 do Cider Vinegar 8
Paid him per order on Sumner Packard.
., 13
Received Cash of Joseph Kinsey, in ftill of %
15
Sold Edwin Forrest, on %
1 Suit Fine Broadcloth
Paid Advertising Bill in Cash
17
• Be carefu not to open the same account tieiM.
187.
50
100
350
700
M
290
64
14Q
500
8tf
51
50
76
50
JIISTORICAL DAT BOOK— DOUBLE EJJ^TRY.
PHILADELPHIA, FEBKUARY 20, I860.
Paid Cash for Insurance on store and contents, f % on $4000.* (Manhat-
tan Insurance Co.)
25
Received Cash of Jabez Dunham, in full of % . . ,
//
F&id Expenses of store to date, per Expense Book
26
Oiir store and contents were this day consumed by fire :
Value of Store and Fixtures $5000f
Mdse on hand 2800
Manhattan Insurance Co, owe us per policy
28
Received Cash in full for R. S. Hay ward's Note, due the 18th inst . .
Received Cash of the following persons;
Erastus Young, in full of % . .
David T. Fuller
Charles Claghorn
Henry Dwight
Schuyler Corbit
Henry Shaft
114
47 50
22 50
10
27 50
34
Paid Qish to Wilson G. Hunt, in full of %
Received Cash of Manhattan Insurance Co.
30
150
4000
05
155
575
4000
50
AS tnis !ns\irance is to be applied proportionately on the store and the merchandise it may contain, it will be
more sioiple to charge it to Expense account, or to open a separate account with "Insurance."
•f It is purposed to include in this insurance both Store and Fixtures and Merchandise at their proportionate
ralne. It is the student's business to ascertain how much of the $4000 should be credited to Store and Fiz'.urea
account, and how much to Merchandise. This cannot be difiBcult, as the basis of raluation is given.
163
TRIAL BALANCE— INYENTOET.
Trial Balance, Feb. 28.
10397
1
23 1
60
90
50
139
11467
3675
6750
895
834
50
1315
23
50
73
James Mason '
Robert Walker ,
Cash !
8431
8431
1070
2403
2614
1050
1
i 65
J4125
61
62
40
10
73
1
8431
8292
10.50
61
62
1211
Mdse i
4135
895
Store and Fixtures \
Bills Payable
Expense
834
50
1250
William Patterson
Edwin Forrest ....'...
Bills Receivable
17774
23
24125
17774
23
Inventory, Feb. 28.
Store Lot, valued at 12000.00
Losses in Business.
On Merchandise 1211.60
" Store and Fixtures 2135.90
By Expense 395.00
James Mason's J net loss $1871.25 8742 50
Robert Walker's " 1871.25 -^ ■
Pkesent Condition of Business.
mmmmmmmJResources. _i_
l^ash 110397.23
Store Lot 2000.00
Bills Receivable • 1250.00
William Patterson 334.50
Edwin Forrest 50.00
14031.73
-^. — > 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
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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^^ <j*«4^;./<>4/'<J<J. UNITED STATES OF AMERICA,
5c v'TjOan of
fif^^v 1847. *** liu/e^e^/ ^ PETER COOPER, <»^ ^ ajStytut. iAt aum c^ rC'EH^
^i • TIIOTJS.A.ISriD I30Lr.-AJEl,S, ••aJ^iM. fA» ^<a day o/ ^6c»m^tM^,
Jf6y," utin Mtieicaf /ion* ^no ^Oin e^y o/ /una, /J'^^^, fnctuMVA, <U o/tx Ael cen/. Am annunt^,
^yaM6 Oft iAe >**rf/ day* o/ /amuuy arn/ ^^^j/, »** cacn yeat. QyifM <j^^ M atUnouxcd ^y a*t
Q'€ci o/ ^o*iyi^ aAAuyved Janualy 2.fiX, Jfj^^, and ut ^Utfut/fUt/A on //ta A}om <>/ ^M
Entered, June 10, 1847.
Recorded, June 12, 1847.
Signed,
Reoisteb U. S. Tekasobt.
Railroad Sharea
m
<l
W
m
ffambei
RAILROAD COMPANY,
STATE OF PENNSYLVANIA.
ShsuM
MI »n^cd io OKTB HTJI>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</m ol ne* Q/vi^'ney, u^ion Ma auH^ndei. o^ ^nc* ^eT^iyccaia,
3n Jtstt'monj fajjtrtof, the mid Company have caused this Certificate
to he signed ly their President and Treasurer^ and sealed with
tlieir corporate seat
NEW yORK^ January, i860.
iiit
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<1
o
10
Treasr
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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, \ C<mmusi<meTof Deed,
' { for Buffalo.
As this statement is intended for the enlightenment of the public, let us see how much satisfaction tne pub-
lic is likely to get out of it. The first item on the list of renonrcex, is " Loans and Discounts." This we take to
consist of promissory notes and other evidences of debt, held by the bank as security for the payment of money
loaned. The real value of this s})ecie3 of resource will depend, of course, upon the certainty of payment at
maturity. Of this the public knows nothing. The same is true of the second item, " Sums due from Directors
of this Bank." This distinction is made that the public may know what proportion of the " accommodation"
of the bank is absorbed by its officers ; and is in accordance with the requirements of law. Item 4, " Sums due
from Brokpr=," is an absolute resource if " Brokers" are sure to pay. Items 6 and 7, " Bonds and Mortgages,"
at d ■■•' Stocks," comprise securities deposited with the Bank Superintendent as a basis of circulation, and, we
must conclude, are worth their estimated value. Item 9, " Loss and Expense Account," is of a different nature,
and will need a little explanation before " the public" will be ready to accept it as a resource. Were the bank
to become insolvent, and its creditors to force it into liquidation, the amount called " Loss and Expense" would
serve a sorry purpose in cancelling debts ; and yet we are not fully prepared to say that it does not represent
a resource. Among the liabilities enumerated are two items, called " Capital" and " Profits." These, although
first mentioned, are the last to be paid, inasmuch as they are but other names for the stockholders, who are
the owners of the bank. In paying the other liabilities, which, for the sake of distinction, we have elsewhere
called " outside liabilities," we can, of course, use no part of the resource called " Loss and Expense ;" and as
the resources and liabilities are equal, we cannot throw out this amount without becoming insolvent.* It must,
therefore, a])i)ly in the payment of the liabilities to stockholders ; and inasmuch as that which will cancel a
liability may proi)erly be called a resource, we violate no principle in so denominating " Loss and Expense."
We are fully aware that the above argument is not without " special pleading," but we are also aware that
the special case demands it. We do not claim, even, that the statement presented, although prescribed by the
state, is the best form by which to illustrate the science of accounts ; but this fact does not render it less
important to be understood. The statement is, in fact, neither more nor less than a Trial Balance,
the debits of which are called Resources, and the credits Liabilities, The Representative accounts not having
been cancelled, are here arrayed against each other. But so long as the que^ionable resources do not exceed
the " Profits," the public may fear nothing from their being enumerated. The only point about which the
public must ever be in the dark with reference to Bank Statements, is the real worth of that omnibus account
called " Loans and Discounts." If proper vigilance is exercised by the officers of the Bank Department, whose
duty it is to investigate these securities, so that " Loans and Discounts" may include nothing of a doubtful
character, the relative bearing of other items in the schedule can be easily estimated. For instance, if the
item in the above statement called " Loss and Expense" were omitted, " Profits" would be reduced just that
amount, which would, perhaps, render the statement easier of explanation, but not, in reality, more truthfuL
We have given to banks a prominence among joint-stock associations, because they are more intimately
connected with the public weal ; furnishing, as they do, the credit upon which the bulk of all commercial ex
changes are effected. Every man who is, or expects to be the holder of a bank note, or a bank creditor l)y
deposit or otherwise, is, to that extent, interested directly in the scheme which regulates the value of such
po88e"siona
All joint-stock companies prudently conducted will make their divide ads conform, in some degree, to theli
earnings ; and in no case -should the dividends exceed the current and " reserved" profits. The practice which
certain railroad corporations have of borrowing funds to divide among stockholders is reprehensible in th«
♦ The term " insolvent" is, of course, used in its restricted sense, taking cognizance of the fact tbat the amount
Ine stockholders, both for profit and original capital, is amoni; the liabilities.
190
EXCHANGE.
Qztreme, and should destroy public confidence in them, which it does. It worJd !3e far better for all iuck
corporations to adopt the policy pursued by some banking institutions, restricting the dividends to such a
point as to allow a constant accumulation of reserved profits, or " sinking fund." To secure this end, great care
should be t4iken, in the enumeration of such resources as have intrinsic value, to state that value as nearly as can
be done without reference to cost. For instance, in the statements of railroad, manufacturing and mining
companies, npon which profits are determined, " Construction," " Machinery" or " Fixtures" accounts shoulc?
be made to exhibit the value of the property thus represented, instead of what may have been charged to suck
accounts. It is very probable that these accounts may have been debited with items which should have gone
at once to Expen=e, or Loss and Gain account ; and, if so, the gains will show too large. The same may he
irue of other resources, such as personal accounts, bills receivable, etc.
In short, the same policy which will secure the best results in individual or partnership business, will hoU
equall}' good in joint-stock concerns. In the latter more particularly should great care be taken to avoid th«
reduction of capital stock. In private concerns, where each partner is immediately cognizant of, if not an
attive participant in, all the transactions, a reduction of capital by unfortunate speculations, or otherwise, is
tot fraught with such evils as where innocent holders of slock are injured through the imprudent or unfor-
tunate management of accredited agents, over whom they have no control except to remove them by vote. It
will be borne in mind that all dividends in joint-stock concerns are Dased upon th3 original or nominal stock,
each holder receiving his just proportion. If the ttorkinp capital exceed this nominal amount — as is the
case where " reserved profits" are held — the prospects for dividends willv of course, be better than if it be
less — as is the case when the capital has been reduced, either by actual loss or excessive dividends. It is an
excellent, though homely maxim, that " a dinner should not be eaten before it is earned."
EXCHANGE.
Exchange is a term used to denote that commercial usage by which individuals are enabled to cancel debts
at a distance without the transmission of money. This is effected through the agency of a species of com-
mercial paper known as " Bills of Exchange."
A Bill of Exchange is a written order addressed to Bome person directing the payment of a certain sum
of money, either upon its presentation or at a specified time thereafter. The parties to a Bill of Exchange
are, first, the person who draws it, and who is called the drawer ; second, the one on whom it is drawn, called
the drawee ; and third, the one for whom, or in whose favor it is drawn, called the •payee. By legal construc-
tion and commercial usage, the drawer of a bill is also considered its rtidorxer ; his signature being a virtual
guarantee of its fulfilment. The drawee is also denominated the payer ; and, if he accept the draft to b»
paid at a future time, he is called the acceptor or maker.
Domestic Exchanok consists of drafts, notes, checks, certificates of deposit, etc., the parties to which
reside in tlifferent parts of the same country,
FoFJsia.v Exchange is represented by drafts, the parties to which reside in different countries. They are
usually drawn in xeU of three or more, one of which being honored the others become void. This precau-
tion is deemed important to giiard against the contingencies of transmission. The separate bills are sent by
different routes, or at different times, and thi first that comes to hand, if either, is honored. Foreign Bllli
of Excliange are made payable in the currency of the country upon which they are drawn, instead of tnat
where they originate.
FORM OF A SET OF EXCHANGE.
1.
ExCHANOK FOR £1000. New York, Mara 81. I860.
Thirty days after sight of this my first Bill of Exchange (second and third of the same Jale and
tenor unpaid) pay to Daniel F. Tiemann, or order, One Thousand Founds sterling, value received, with oi
without further advice.
Gnus W. FraiA
To Geo. Peabody <fe Co., )
Bankers, Loudon. )
191
EXCHANGE.
2.
JSxcHiKOR FOE £1000. New York, Marc't SI, 1860.
Thirty days after sig^ht of this my second Bill of Exchanj^e (first and third of the same date aiid
tenor unpaid) pay to Daniel F. Tiemann, or order, One Thousand Pounds sterling, value received, with or
without further advice.
Cteus W, Field.
To Geo. Peabody & Co., )
Bankers, London. f
Exchange foe £1000 New York, March 31, !860
Thirty days after sight of this my third Bill of Exchange (first and second of the same date and
tenor unpaid) pay to Daniel F. Tiemann, or order, One Thousand Pounds sterling, value received, with or
without further advice.
Cyrus W, Field.
To Geo. Peabody <fe Co., )
Bankers, London. )
Bills of Exchange are bought and sold the same as any other currency, being negotiable by endorsement.
rf the person to whose order the bill is drawn endorses in blank by merely signing his name, no after en
dorsement is necessary; if, however, he endorses in full, mentioning the name of the party to whom, or
order, the payment is to be made, the endorsee must also endorse to give the bill currency. Each endorser,
unless he signs " without recourse," is held responsible, and may be sued for recovery of the bill.
The intrinsic Par of Exchange is the value of the currency of one country, estimated in the currency of
another, by comparing the quantity of gold and silver in their respective coins.
The intrinnic value of the English sovereign, which represents the pound sterling, is $4.86 in our gold
taken as a standard.
The exchanije value of the English pound is $4.44|, and all premiums are computed upon this standard.
The coynmercinl value of a Bill of Exchange on London is its exchange value, plus the premium it will
bring in the market.
The Custom House regulations have fixed this premium at a little less than 9 fo, making the value of th»
pound sterling $4.84 in our currency.
The course of exchange, or the fluctuation above or below par, depends generally on the amounts du«
between different countries. Thus, when the debts and credits between two countries are equal, the real
exchange is at par. But if New York owes London more than London owes New York, there will be a
greater demand for the bills on London ; and this demand will cause the bills to be at a premium. The pre-
mium, however, can never exceed the cost and risk of transporting specie ; otherwise the debts would be paid
in specie.
The operation of Bills of Exchange may be explained by a single example : If A of Boston, owes B of
Paris, and C of Paris, owes D of Boston, A purchases in the market a bill upon Paris ; that is, he buys of D
an order on his debtor C to pay A, or order the amount desired. A endorses the bill and sends it to B, who
receives payment from C, Thus the two debts are cancelled by a single remittance.
In making remittances to foreign countries, it is not always best to remit by the direct course. For
example, suppose a merchant in New York desired to pay a debt in London where drafts on New York are
below par, while at the same time they are at a premium in Paris, and Paris funds are at par in London ; it
will be evident at once, that the most economical method of getting funds to London, will be to remit through
a house in Paris. The determination of the value of such remittances is called the Arbitration of Exchange,
and is most easily accomplished by the application of what is known as the " Chain Rule."
Note. — It is no part of the design of this work to suj^ply the place of a Treatise on " Commercial Calcu-
lations," such a book having been specially prepared and published to accompany this series. We refer the
Btudent to " Bryant & Stratton's Commercial Calculations" for a full exposition of all the practical arithmet-
ical questions growing out of business transactions, including the topics here discussed. The special exerciset
ander this head which follow have immediate connection with the transactions of the various seta em
traced in the bodj of the work.
192
EXCtlAJSGE.
FORMS OF NOTES, DRAFTS, RECEIPTS, ETC.
We hare given rarious forms of NotAS, Drafts, etc., in the body of the work. The following %arietiei
irill serve farther to denote technicai diatinctions in form and usage :
Notes.
1. Individual Note.
1500^ New Yoek July 1, 1860.
One day after date. I promise to pay to M. B. Scott, or order. Five Hundred Dollars, value receiyeA
Jacob HindSw
2. Joint Note.
IIOOC. N'kw York, July 1, 1860.
Sixty days after date, we promise to pay N, C. Winslow, or order, at Metropolitan Bank, One ThouMuid
Dollars, ralue received. H. B. BaYAyr.
S. S. Packard.
8. Joint and Several Note.
^1600. SpRTyoFiELD, April 10, 1860.
One month r fter date, we, or either of us, promise to pay Orlando Warren, or order. Fifteen Hundred
Dollars, ralue received, with interest from date. K C. Bradford,
F. A. Brewer.
4. Principal and Surety Note.
^00. CuMMiNOTON, January 1, 1860.
Thirty days after date, I pronuse to pay Eliphalet Packard, or order, Six Hundred Dollars, value r»
ceived. John Orcutt, Principul.
Zexas Bradley, Surety.
6. Chattel NoU.
|400. Buffalo, March 10, 1860.
Three months after date, I promise to pay Henry P. Smith, or order. Four Hundred Dollars in Goods
from my store, value received. Hiram Newell.
6. Non-Negotiable Note.
|876. Detroit, May 15, 1860,
One month after date, I promise to pay J, H. Goldsmith Three Hundred and Seventy-Five Dollars, a»
his office, value received. J. C. Bryant.
Reharks. — Nothing is more essential to the holder of a note than to know when it falls due, as a neglect to pre-
sent for payment on the day of maturity will discharge all parties but the principal. In this country ail notes and
drafts on time are allowed, by statute, three days' grace, unless otherwise expressly stated; that is, they are not
legally due until three days after the written date of maturity. In the State of New York no grace is allowed on
sight drafts, they being payable on presentment. If the last day of grace falls on Sunday or a legal holiday, the note
is due on the Saturday or other day before the holiday. But if there be iio grace, and the note falls due on Sunday
or other holiday, it is not payable till the succeeding day. If a bill is drawn, payable in or after a certain numbei
of days from date, sight, or demand, the day of date, sight, or demand, is excluded, and the day on which it falli
due included. Thus, if a note be dated January 1, due in " twenty days from date," we commence counting frorn
the day of date ; January 2 being one day, January 3, two, and so on. The twenty days will elapse on January 21,
to which add three days' grace, and the date of payment will be January 24. If a bill be drawn, payable in any
stated number of months after date, it will be payable on the day of the month corresponding with its date, adding
grace. Thus, if a note be dated January 1, payable " six months from date," it will fall due July 4, which being a
national holiday, it will be payalle on July S ; or, if that day be Sunday, on July 2. Presentment for payment must
be made at the place designated, during husiness hours of the day of maturity. Most banks close at 3 o'clock, p. m.
of each day, in which case, notes maturing at banks should be presented before that hour. It is customary to leave
such notes with the bank for collection, some days before maturity. The only point about which the holder shouia
be careful is, that the note be at the place designated at the tirru of its maturity.
If the place of payment be not specified in the note, a demand is sufficient, if made at the usual residence or
place of business of the payer ; either of himself or an agent authorized to pay.
Interest cannot accrue on a note before maturity, unless so specified.
Notes drawn " on demand" are not legally due until a formal demand has been made. For this reason, if for ne
other, the better expression is, " one day after date."
The phrase " value received," though not essential to the legality of notes and drafts, should be inserted to sav*
the holder from the uecessity of proving value.
To be negotiable, a note should be made payable either to " order" or " bearer." Some States require also tb«
words, " without defalcation," others " without defalcation or discount."
z 193
EXCHANGE.
Drafts.
:. Time reckoned from Sight.
*500, Clkviland, April 12, 1866
At ten days' sight, pay, to the order of Ivison <e i^inney. Five Hundred Dollars, value received, aiui
charge to account of T. P. Haxdt
To Bryant, Steatton <& PACKAan •
18 Cooper Institute, New York. »
?,. K-Mtrjytien fr&m lJai«.
1750. ' Chicago, June 15, 1860.
One month from date, pay to James Magoon, or order. Seven Hundred and Fifty Dollars, at the Ban*;
of the Interior, and charge the same to my account Digby V. Bell.
To Messrs. Calkins <fe Clark, |
448 Broadway, Albany. |
Remarks. — As stated elsewhere in this work, a draft diflTers from a note only in form ; the acceptor of a draft sus
tains the same relation to the other parties as does the maker of a note. The drawer of a draft is also identical with
the endorser of a note, being holden for its payment in case the drawee should fail to comply.
The regulations and provisions stated as pertaining to notes are, in all respects, equally applicable to drafts.
The term "sight" as used in drafts, refers to presentment,which time is usually denoted by the date of acceotance.
(See example on page 118.)
Due Bills.
1. For Cash, Drawing Interest.
$176 jfl'ff. Louisville, April 28, 186U.
Due John Jones on demand. One Hundred and Seventy-Five f^o Dollars, with interest from date.
J. R. BiGELOW,
2. For Merchandise, without Interest.
|100. Syracuse, June 10, 1860.
Due W. Carpenter, or order. One Hundred DoUars, payable in Wlieat at the market price, on the first
d"y of September next. Comstock <fe Co.
Remarks. — Due Bills are equally binding and effective with notes and drafts, and may be made negotiable as
well. They are usually drawn on demand, and for some special purpose, wherein a note or draft would not be ap-
propriate. They draw no interest unless specified. Due Bills are of every conceivable form, there being no usual
formula, as in the case of notes and drafts.
Orders.
1. To apply on Account.
Cincinnati, April 5, 1860.
Mr. J. Anslin Sperry will please pay to the bearer Fifty Dollars in Merchandise, on my account.
J. D, Hmde.
2. In full of Account.
TnouAS Pease, Esq., Feedonia, O., July 10.
Please pay to E. M. Hale, or bea •?■ ^'lily Dollars from your etore, and this shall be your receipt is
fiill of my account. Jacob S. Dudkk.
Remarks. — An order is similar in characiei to a araii, with ine aiflerence that a draft is always for mxm^y, whil«
»n order is for goods. An order, if accepted by the drawee, is precisely the same in eflfect as a chattel note.
^ Receipts.
1. On Account.
$400
Received, January 1, 1860. Four Hundred DoUars on account of W. Armstrong.
GroEOE Phxlab.
2. In full of all Demands.
|5Y6 Albany, Ju le 10, IbbO.
Received, of Calvin S. Sill, Five Hundred and Seventy-five Dollars, in full of all demands to date.
Benj. Patm
194
EXCHANGE.
8. To apply on Contract,
flOOO. Albany, April 80, 1860.
Received, of J. W, Eddy, Oije Thousand Dollara, the same to apply on contract for building houM
dated April 20, 186C 'W. H. Ci^^k.
4. To apply as an E-ndorsemeni.
178. J^iiy 10, isea
Received, on the within nc^'-c, 3eTenty-five Dollara. James Siotb.
5. Receipt far Property.
Cnici>rN-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.
<Na 1851.) S. S. Packawi.
2. Payable to " Order."
$300. Mercantile College Bank, . New Tore, June 20, 1860.
Pay to Charles Strong, cr order. Three Hundred Dollars.
(No. 1500.) S. S, Packard.
Remarks. — The only distinction in these two forms exists in the words " bearer" and " order." The difTerenos
growing out of this distinction, however, is sometimes very important. For instance, a check, payable to bearer, i«
negotiable without endorsement, while, if payable to " order," it must be endorsed by the party in whose favor it ia
arawn, thereby serving as a receipt for the payment of its face. The latter method is pretty generally adopted by
business men, to avoid the necessity of special receipts. It is often the case that persons receiving checks as cash,
require them to be certified by the proper bank officer, in which case they are the same as certificates of deposit
It must be borne in mind, that drafts, orders and checks are always drawn against existing debts due to the
drawer, except in special cases where it is otherwise agreed. Drafts are frequently drawn by consignors against
•necial coQsi«cnments in the hands of the drawee, in which case they are paid from the avails of such consignments
195
COMMEECIAL CALCULATIONS
COMMERCIAL CALCULATIONS.
It will, of course, be impossible to do more than hint at a few of the most prominent questions properly
embraced under this general subject ; and it shall be our earnest aim to make these of the most practical
kind. The very idea of accountantship is inseparable from a thorough knowledge of calculations ; and all
theoretical abstractions which lie at the basis of the science of accounts, will be found of little avail without
the practical results which come alone tnroueh the almost magical power of figures.
ADDITION.
The simple process of addition would seem to need no enforcement or illustration ; and yet there is no part
of the science of numbers more important to accountants, or in which they are more apt to be deficient. We
mean, of course, the process as applied to tl\e addition of long columns of figures, which should be done with
facility and correctness. Authors and teachers have shown both ability and ingenuity in their various sug-
gestions and aids, but nothing can be of so much service to the student as continued practice. The most ap-
proved method of testing the correctness of addition is to add the columns in both directions, first upward
and then downward, or the reverse. The philosophy of this is, that the combinations are thus varied, and
the chance of committing the same error twice is avoided.
Three very simple processes of retaining the figure to be carried to the next column — a very important
consideration with beginners — are shown below. The first is the usual method of writing the figure to be
carried, small, under the unit amount of the colunm which produced it. The second requires the addition of
each separate column to be written down on a waste space, commencing with the right-hand column, and car-
rying to the next column, as in the usual method ; these separate amounts placed in their order one under
the other, will present in their unit figures, counting upward, the general result. The third method consists
of the proper arrangement of the independent sum of each column, so that being again added, the proper re-
sult is secured.
Examples.
Mrgt Process.
1829.25
743.18
2562.28
145.19
2823.25
7574.28
4291.83
25.64
19994.90
S33.S5
Second Process.
1st. column
50
2d.
29
3d.
34
4th. "
39
5th. "
39
6th. "
19994.90
Third Process.
50
2 4
3 2 •
36 • •
3 6 • • •
1 6 • • • •
19 9 94.90
When the student becomes more accurate and self-reliant, he may feel justified in dispensing with all suc^
t&ds ; and particularly if his memory is sufficient to retain the carrying figure ; but until he arrives at this
desirable state of perfection, it becomes him to guard himself on every hand. Great proficiency in this re-
gard may be readily acquired by practice, some accountants being able, very readily to cast up three and
four columns of figures at once.
INTEREST.
Interest, in the accountant's vocabulary, means the use of money. The amount received or paid for interest
is usually a percentage on the sum used, and is fixed either by contract or statute. Per cent, signifies by the
hundred, and implies, in interest, so many cents on the hundred cents, so many dollars on the hundred dollars,
etc. It is usual to reckon interest by the year ; but it is always proper to express the time, as it is not neces-
sarily understood.
In calculating per annum interest, it is customary to reckon 360 days to the year, and 30 days to tha
month ; although in some states the whole number, 365 days, is reckoned to the year, and any number of days
as a proportion of 365. In the State of New York the basis of 360 days to the year is fixed by law. The
section reads thus : " For the purpose of calculating interest, a month shall be considered a twelfth part of a
year and as consisting of thirty days ; and interest for any number of days less than a month shall be esti-
196
COMMERCIAL CALCULATIONS.
toated by the proportion which such number of days shall bear to thirty." There are those, however, wh«
consider interest reckoned on this basis as usurious, it being ^j more than by the basis of 365 days to the
year.
In the illustrations which follow we shall adopt the usual standard of 360 days.
The rate, or per ceniage of interest is established by law in most countries and states. Any excess over
this rate is termed usury, for the exaction of which various penalties are prescribed.
The rate of interest in Pennsylvania, New Jersey, (except in Jersey City and Hoboken,) Delaware, Mary
land, Virginia, North Carolina, South Carolina, Tennessee, Kentucky, Ohio, Indiana, Illinois, Iowa, Missouri,
Arkansas, Mississippi, Florida, the six Eastern States, the District of Columbia, and on debts due the United
States, is 6 per cent, per annum.
In New York. Michigan, Wisconsin, and Georgia, i: >£ ' 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
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COMMERCIAL CALCULATIONS.
PARTNERSHIP SETTLEMENTS.
The adjustment of accounts between partners involves, often, the nicest discriminations, and the moat
thorough appreciation of the various bearings of different entries.
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<rm«ic value of the English sov-
ereign ? 44. What is the exchange value ? 46. The commercial value ? 46. The Custom House value 1
47. Upon what does the fluctuation of exchange depend ? 48. In making remittances to foreign countries, is
it always best to remit by the direct route ? 49. How is the value of remittances by the indirect route deter-
mined? 50. What is the peculiarity of an individual note? 51. Of a joint note? 62. Of a joint and several
note? 53. Of a principal and surety note ? 54. Of a chattel note ? 65. Of a non-negotiable note ? 56. What
is the custom in this country respecting grace on bills ? 57. If the last day of grace falls on Sunday or other
legal holiday, when must the note be paid ? 58. What is the regulation respecting presentment? 59. When
are notes "on demand" legally due? 60. What is necessary to render a note negotiable? 61. How does a
draft differ from a note ? 62. To what does the term sight in a draft refer ? 63. What is the distinctive
feature of due-bills? 64. What is the difference between a certificate of deposit and a certified check?
66. What are the dififerent forms of checks ? 66. What advantage has a check drawn " to order" over on«
drawn " to bearer ?" 67. Under what circumstances are drafts and checks drawn ? 68. Are drafts evm
drawn against special consignments ?
211
VOCABULAEY OF MERCANTILE TEEMS.
ABANDONMENT, the surrendering of a ship or goods
insured, to the insurer.
Abatement, discount allowed on damaged goods, or for
the payment of money before due.
Acceptance, the formal agreement to pay a draft or bill
according to its terms.
AGcmnmodatlon, the loan of money or of one's name upon
which money may be raised.
Account, a systematic arrangement of debits and credits
under the name of a person, species of property, or
cause. Book-keeping is the science of Accounts.
Account- Current, a running, or unsettled account.
Accountant, one skilled in Accounts, or engaged in keep-
ing books.
Actuary, the active officer in a Life Insurance company ;
one skilled in the science of annuities.
Adjust?nent, the settlement of a loss incurred by the in-
sured; a general settlement.
Administrator, one who administers upon an estate, by
order of the Probate Court.
Adulteration, the act of debasing by mixing any spurious
commodity with a genuine article.
Ad valorem, according to the value ; a term used in fix-
ing the rates of duties on imports.
Adventure, a speculation ; usually applied to the shipment
of goods on account of the shipper.
Advarvce, increase in price ; money paid on goods before
they are delivered.
Advice. Information given with reference to a shipment
or other important matter.
Agent, one who acts; usually applied to a person who
does business for, and in the name of another.
A(jii>, 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
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