UC-NRLF If m ^ ^': ELEMENTS OF BOOK-KEEPING. ■-S MORRISON OsJ o ALYMHVS BOOK FVND I r 'm.mt^^~^~ E"E P I II / /^ Co}nJb/'e^in^j'e i^era/. Sets of^oeAs. AliRAWG£l> A GCORniB^G TO ^'BESEI^T FMA CTICE JAMES'MORRI SO^,i¥ra?i^2M^l^ ^i »r^^ Printed for LoirGMAN.KEES,OiiME, Brown ^3st> Gree:s. & to be ?iad of aUMookseUers. ^- ft il ^ TO HENRY BROUGHAM, Esq. M.P- As, in this Commercial Country, a knowledge of Merchants* Accounts, and Book-keeping, must necessarily form an essential branch of Edvx:ation : a work which has for its object the improvement of Youth in these branches, must at all times be acceptable to the Trading Part of the Community, and highly deserving of their regard and encouragement. In testimony of your eminent services, in patronising and promoting Education, whether Mer- cantile or Mechanical, and thereby the moral and intel- lectual improvement of mankind ; the following Treatise on Book-keeping, which has been honoured with very general public approbatioji, is respectfully inscribed by. Your most obedient and very humble Servant, JAMES MORRISON. London, 84"^^.*?^ 1st September, 1825. ^^ -Cx. C/O i Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/elementsofbookkeOOmorrrich PREFACE. JF an Art or Science is to be valued in proportion to its utility and im- portance, Book-Keeping will hold a very high place in the estimation of a Commercial People. Independent of the pecuniary advantages which accrue to the Man of Business from order in recording his Transactions, Book-Keeping is valuable for its own sake, as it affords an ingenious and complete illustration of the harmony of Method, and the use of Numbers. As the alterations and improvements made in this Edition are nu- merous, the Author will, rather than detail them, describe the work in its present form. In the INTRODUCTION, on Merchants Accounts, the form and method of making out the several Accounts which usually occur in the Business of the Counting-house, are explained and illustrated by Examples. The Work then commences with a view of single entry, which affords the most simple idea of the nature of Dr, and Cr,, and of the application of those terms. This Set is extended to three months, and may be suf- ficient for a Pupil who has only the Retail Business in view. Next, the work contains an explanation of the Principles of double ENTRY ; of the use of the several Books used in Business, and of the nature of Personal, Real, and Nominal Accounts in the Ledger. This is done before laying down Rules for Journalizing, because these Rules are in-- ferred from the nature of the Entries on the Ledger- Accounts, and there- fore they cannot be properly understood till these Accounts are explained. The RULES for Journalizing are arranged under distinct heads, in order that they may be easily referred to ; and these, it is hoped, are so com- plete, as to extend not only to every Transaction introduced into the Sets, but likewise to every case which usually occurs in Inland and Foreign Trade. The Italian method is suppressed, and the Rules for stating Cash transactions, &c., are divested of their technical form. Thus in receiving money, instead of Cash Dr, to A. B,, we say. Debit Cash To A, B. ; and in paying money, instead of A. B, Dr. to Cash, we say, Ct'edit Cash By A, B., and the like in other cases. A 2 IV PREFACE. The SETS ofBooJcs advance from the more simple to the more complex transactions, in a regular gradation j and comprehend the different branches of Business, as Proper, Commission, and Company Trade, Two of these Sets are connected, in order that the Student may understand the method of continuing the Business, and transferring the Balances from one Ledger to another ; and while the theory or Art of Book-Keeping is explained by Definitions and Rules ; the work exhibits a view of the most approved forms of arrangement in Modern Practice, so that the young. Accountant may be at no loss how to proceed when placed in the Counting-house. The Queries on Bills, Receipts, and Drafts, with their Answers, as also the Exercises subjoined, are intended to impress upon the mind of the Learner the principal points in the daily practice of Business ; and the Author can assert, from experience, that the attentive Student will derive the greatest advantage from them. The Work concludes with a short explanation of Commercial Terms or Expressions which are used among Merchants, and Men of Business. The above are the principal points which, in the opinion of the Author, a proper Elementary Treatise for the use of Schools should contain ; and this opinion is the result of much experience as a public Teacher, and several years practice in the Counting-house. We shall close these prefatory Remarks by an extract from Messrs. Collins and Catlow's "Guide to Teachers" in their choice of Elemen- tary School Books : — " For the current business of Schools, and for the general purposes of Trade, ' The Elements of Book-keeping,' by Mr. Morrison, are un- questionably the best adapted. His work begins with a Set of Books, by Single Entiy, which is all that many branches of Trade ^-equire, and is necessary to the Student, as leading to a knowledge of the subsequent Sets by Double Entry, For the advantages of the Student, the several Sets rise upon each other, and include every variety of Books and Ac- counts that can present themselves to the young Accountant in after life. The work also contains the various forms of Bills, Notes, Receipts, and Letters, required in Trade ; and the whole concludes with a series OF questions,*, calculated to put the knowledge of the pupil to the test, in regard to the difficult and important parts of the work. " One of the greatest impediments opposed to the teaching of Book- * In this edition Answers are given to the Queries. — J. M. PREFACE. keeping, particularly in country Schools, has been the difficulty of ob- taining ruled Sets of Books, which should enable the young Book-keeper to exhibit his school-labours as a qualification for preferment in the Counting-house. The publishers, therefore, of Morrison's Book-keeping have prepared four distinct Sets of Books, at an easy cost, exactly corre- sponding with the four Sets contained in the work itself, beautifully ruled in the style and manner of the Patent Ledgers and other Books, which are so justly admired for their neatness, in our first Counting- houses. Morrison's Set of Blank Boohs perfect his System, therefore, for the use of Schools, and render it every thing which the anxious Schoolmaster can desire for the purpose of teaching Book-keeping." Vide p. 63. Mercantile Academy, London, Jtt^, 1825. VI DIRECTIONS FOR USING THIS WORK. The Author has been requested to give a few directions how this work should be taught in Schools. Set A. If the Learner have only the Retail line of business in view, this SET by Single Entry may in general be sufficient : when he has transcribed the day-book, and checked the cal- culations, he is to proceed to form the Ledger and take a Balance : vide page 28. After he has finished this set, he may peruse the introduction as far as it respects the making out Bills of Parcels, drawing Bills, Notes, and Receipts. Set B. In Teaching book-keeping by Double Entry the chief point is, to convey to the Learner a distinct idea of Debtor and Creditor, and of the application of these terms in the led- ger. For this purpose he ought carefully to peruse Chapters II. and III. while he is writing the DAY-BOOK, and forming the Bill and Cash-Books, from the entries given in pages 51-53. When he has done this, he is to Journalize a month's transactions from the Day-Book, BUI and Cash-Books, and then post them into the ledger, and so on with the other two months. After he has posted all the Transactions, he is next to make a Trial Balance, agreeably to the direc- tions given in page 46. Having done this, and finds that the difference of the stock and balanck Accoiints correspond, he is to proceed to balance the Accounts and close the books : vide direc- tions page 46. Set C. This SET is a continuation of the same business, including the Transactions of a Commission Trade. When the Student has written the dav-book, invoice, and sales' books, pages 103-106., and formed his cash and bill-books from the entries in pagesl03-106., he is next to Journalize the Day-Book transactions monthly, agreeably to the Rules given in page 142., and those in Invoice and Sales Books, singly, and then proceed to jmst, and Balance the ledger as formerly. N. B. To this SET the Pupil may have either a new ledger (as in the printed copy) which will show him how the several Balances are transferred from the old Books to the new ones ; or, he may allot in the former Ledger a sufficient space under each Account, to contain the entries of this Set also, and this will show him how the Balances are brought down, and the entries continued in the same folios. After he has finished this Set, he may peruse the introduction, relating to Bills Siud Accounts. These will tend to elucidate several entries in the sets which he has gone through. When he has studied these, and knows how to draw them out, he may proceed to copy the letters re- specting Drafts and Remittances — Advice of Goods being shipped — Rendering Account- Sales, and Accounts Current. The several Accounts should be annexed to these Letters, and should be folded and addressed, and the Bills drawn and indorsed as in actual Business. Set D, is a Partnership Concern, and is intended to complete the course. The Subsidiary Books are not given, because by this time the Student may be supposed to understand how to write and Journalize them; and because the principal difficulty of keeping the Books of a Co- partnery, is the division of the Profit or Losses : stating the Partner^ s Accounts, and closing the BOOKS. A knowledge of all these particulars may be obtained by attentively perusing the jour- nal, and jwsting and balancing the ledger. The QUERIES on Bills and Book-keeping, with their answers, are intended to be committed to memory during the course. From five to ten may be given the Student at a time. The exer- cises for Practice, which follow, are intended as a criterion of his improvement in these branches of Commercial knowledge. The answers and statements should be neatly arranged, and given in writing. * If the Pupil's time be very limited, he may omit transcribing the Invoice Book, and Sales Book, and Journalize from the Day-Book, or printed copy. The Subsidiary Books may be bound as follows : — the Cash and Bill-Books in one binding ; the Invoice and Sales-Books in one ; and the Day-Book by itself CONTENTS Page Preface iii Directions for using the Work vi INTRODUCTION — containing the Form and Method of making out the several Accounts which usually occur in Business, viz. I. Receipts 1 II. Inland Bills 2 III. Foreign Bills of Exchange 3 IV. Bills of Parcels 7 V. Invoices 8 VI. Account-Sales JO VII. Account-Current with the Interest Account 11 PART I. — BOOK-KEEPING by Single Entry. Book-keeping defined — Single Entry described 15 Set A. Retail Business. Bay-Book 19 Ledger 24 Cash-Book 32 Specimen of a Ready -Money Sales- Book ,,.,, 34? PART n BOOK-KEEPING by Double Entry. Introduction — Double Entry described 35 Chap. I. Of the Day-Book and Subsidiary Books ib, n. Of the Ledger, and an Explanation of the Accounts 37 III. Of the Journal, and Rules for Journalising 38 I. Cash Transactions 39 II. Bill Transactions 40 ' III. Purchases and Sales 41 IV. Shipping Goods Abroad * 42 V. Goods on Consignment ib, VI. Effecting Insurances 43 VII. Entries in Bankruptcy ib. VIIL Entries in Joint- A dventures 44 IV. Of Posting and Balancing the Books 45 Yiii CONTENTS. Page Set B. On Proper Trade, or when a Merchant buys and sells on his own Account. Inventory-Book • 51 Bill-Book Entries 53 Cash-Book Entries 55 Day-Book 59 Bill-Book 64 Cash-Book 70 Journal 75 Ledger 84 Set C. On Commission, or Agency Business, or when a Person buys and sells on another's Account. Preliminary Remarks on the Subsidiary Books 102 Cash-Book Entries 103 Bill-Book Entries 106 Cash-Book 110 Bill-Book 114 Invoice-Book, outward 120 Sales-Book 125 Day-Book 135 Rules for Journalising Monthly 142 Journal 143 Ledger. 156 Set. D. On Partnership, or when two or more Persons join their Capitals in Trade. On Partnership Accounts — * 179 Remarks on the Journal 180 Remarks on the Ledger 181 Journal 184 Ledger 204 APPENDIX. I. Queries, with Answers^ on Bills and Accounts 229 II. Queries, with ^W5t«er5, on Book-keeping 233 III. Exercises for the Improvement of the Student,,,. 241 Letters and Mercantile Precedents 248 Explanation of Commercial Terms.... 253 INTRODUCTION JN this Introduction we shall explain the method of drawing out Receipts and Drafts, and such Accounts as usually occur in the business of the Counting-house. That ihe Learner may the more readily comprehend the nature and use of these, they are selected from the Transactions which compose Sets B. and C. L RECEIPTS. A Receipt is a written acknowledgment of having received a Sum of money or a Bill in the settlement of an Account. The usual form of drawing out these is exhibited in the following Specimens. No. I. LONDON, \Sth January, 1825. Received of Mr, William Fenton, One hundred and seventeen pounds ten shillings in full. ^117 « 10. A. B.» Cash Book B. No. II. RECEIVED Vlth February, 1825, of Mr. Thomas MVmood, Fifty pounds on account. d50. A. B. No. III. MARCH lOif^, 1825. Received of Mr. TJiomas Allwood, Fifty-fom ■'unds sixteen shillings and three-pence, being the balance of his account. ^54.«16«3. A. B. ♦ A. B. is understood to be the name of the Learner, or Owner of the Books in the following Sets. B ' '-' Ck'f:^^ "\' y..^, INTRODUCTION. No. IV. LONDON, 8th January, 1825. Received of Mr. J. B. Twenty-one pounds fourteen shillings, for' repairs to his house at Windsor. ^21 « 14. John Wright. No. V. WINDSOR, February 27th, 1825. Received from John Tennant, Esq., Fifty pounds, being payment of the rent till this date, of a house pos- sessed hy him from me. £50. A. B. No. VI. RECEIVED of Mr. A. B., Merchant, London, Seventeen pounds ten shillings, being the amount of my Salary fiom 1st January till 1st April. March 6th, 1825. ' John Penman. £\1 „ 10. 11. INLAND BILLS. A Bill or Draft is a note on stamp paper given by one Person to another, to pay to him, or to his order, a certain sum of money at a specified time. In every Bill there are at least two persons concerned, the Drawer and the Acceptor. In the first draft A. B. is the Drawer or Holder of the bill, and John Howie and Co. are the Acceptors or the Persons who pay the bill when due. In the second draft, Edward Weston is the Drawer, and A. B. the Acceptor. When the term of a Bill is expressed in months, calendar months are always understood. Thus if a Bill be dated the 1st January, and made payable at one month after date, the term or month exj>ires on the 1st February; and if a Bill be dated the 29th, 30th, or 31st January, and payable at one month after date, the term expires on the last day of February, which in common years, is the 28th day, and in leap- years on the 29th. When a Bill falls due on Sunday, or any holiday, it must be paid on Saturday, or day before. A Bill dated on a Sunday is not considered valid, at least Bankers will not discount such Bills. If a Bill be not payable at the Place where the Acceptor resides, and no particular house be mentioned in the Bill for payment, it is proper to add to his acceptance the House at which he intends to pay it. Inland Bills are distinguished into Drafts and Promissory Notes, — the fonner containing an Order, and the latter a Promise. The form of making them out is as follows : INTRODUCTION. 1. FORMS OF DRAFTS. ^110 // 4. London, January 7tb, 1825. TWO months after date ■pay to my order, One hundred and ten pounds four shillings, value received, Messrs. John Howie and Co. 1 A. B. London. J Accepted, John Howie and Co. No. 164, Bill Book B. .^370 u 1. Manchester, January 3d, 1825. THIRTY-ONE days after date pay Mr. William Jones, or order, Three hundred and seventy pounds one shilling, value received. ^.Edward Weston. Mr. A. B. \ Accepted, A. B. London. J payable at Le JFevre and Co's, No. 75, Bill Book B. 2. FORMS OF PROMISSORY NOTES. .^156 /; 7 " 8. London, January 14th, 1825. THREE jnonths after date I promise to pay to the order of Messrs. James, Fieldi7ig, and Co., One hundred and fifty-six pounds seven shillings and eight-pence, value received. No. 76, Bill Book B. A. B. ^147 « 7 " 6. London, April 8th, 1825. THREE months after date I promise to pay Mr, A, B., or order. One hundred and forty-seven pounds seven shillings and sixpence, value received. No. 172, Bill Book C. Thomas Allwood. We shall only farther observe on Inland Bills, that a Bill or obligation drawn out either in the form of a Draft or Promissory Note is equally valid, and entitled to the same summary diligence in enforcing payment ; but it is more business-like, that when the Drawer writes out the Bill, he should make it a Draft, and when the Acceptor draws it out, he ought to make it a Promissory Note, III. FOREIGN BILLS OF EXCHANGE. A BiiL of Exchange is a Written Order from one Person to another, requiring him to pay a certain Sum of money to a third Person, or to his order, and that either on demand or at a specified time. B 2 INTRODUCTION. It is by means of Bills of Exchange, that money is usually remitted from one Country to another. There are generally four Persons con- cerned in a Foreign Bill ; two at the place where the Bill is drawn, and two at the place of payment. Thus, for instance, A. of Amsterdam, owes to B. of London ; and, instead of remitting the money in specie to B. he applies to C. residing at Amsterdam, to whom D. at London is indebted. A. pays the money to C. and receives from him a Bill ad- dressed to D. to pay the amount to B. or to any other appointed by him, who sends it to his Correspondent B. with an order that the money be paid to him by D. But it often happens, that only three Persons are concerned, as in the first specimen ; for example, R. Conder, residing at New York, and wishing to remit money to A. B. at London, and having George Kay owing him money in London, addresses his Bill to Kay, desiring to pay the sum therein mentioned to A. B. or to his order. The TERM of a Bill varies according to the agreement of the Parties, or the custom of the Countries. Some Bills are drawn at sight, others at a certain number of days after sight, or after date ; and some at Usafice. Usance * is the usual time at which Bills are drawn between certain Places, such as one, two, or three months after date ; and double or half Usances, means double or half of the usual time. If the Usance be one month, fifteen days are allowed for Half usance. Days of Grace, are a certain number of days granted after the term mentioned in the Bill is expired. These also vary according to the custom of the different Places. Bills at sight, however, must be paid when presented. The use of Bills of Exchange, and the manner of negotiating them will be understood by the illustration of the following Bill: No. I. sil50, Hamburgh, June 2d, 1825. At USANCE pay to the order of Messrs. Hol- fo7'd, BucJcer, and Co. ONE hundred and ffcy pounds sterling, value received, and charge the same to the account of Moses Reiss. ^''' ^iZ'doT^'^"' } "^''"P*"^' ^°^°^°'' Sheldon. To explain the business transacted by this Bill, suppose that Holford, Rucker, and Co., who reside at Hamburgh, have occasion to remit to * Usance between London and any part of France, is thirty days after date ; between London and Hamburghy Amsterdam, Rotterdam, Middleburgh, Antwerp, Brabant, Zealand, and Flanders, one calendar month after the date of the bill ; between London, Spain, or Portugal, two calendar months : between London and Genoa, Leghorn, Milan, Venice, and Rome, three calendar months. INTRODUCTION. London, and apply to Moses Reiss for a bill on London, Reiss agrees to supply them, and draws the Bill on his Debtor or Banker, Solomon Shel- don ; Holford, Rucker, and Co. on receiving the Bill, pay the value to Reiss, and send it to their Creditor, suppose A. B. of London, first writing on the back of the Bill, Pay Mr, A. B., or order, Holford, Rucker, & Co. This is called Indorsing the Bill to A. B. and when he receives the Bill, he applies to Sheldon, and requires him to accept the Bill ; Sheldon agrees to do so, and writes under Reiss's signature, Accepted, Solomon Sheldon, and delivers it back to A. B., who may either keep it till it fall due and demand payment, or he may transfer the money by indorsing the Bill. Moses Reiss is called the Drawer of the Bill ; Holford, Rucker, and Co., the Indorsers; A. B. the Holder; and Solomon Sheldon, the Acceptor, Bills from America and the East Indies are generally made payable at so many days or months sight, on account of the uncertainty of their coming to hand at any fixed time. When a Bill is drawn after sight, as in the following, the Acceptor marks the date of his Acceptance, in order to fix the time of payment : And as security against accidents or delays, Merchants frequently make out three or four Bills at the same time, all of the same tenor and date, which are called a Set of Exchange. These are transmitted by different Ships or Posts, and when one of them is paid, the orders are of no force. The form of the first Bill is as follows : No. IL ^400 Sterling. New York, Fehruary 20th, 1825. THIRTY days after sight pay this my first of Exchange [second and third unpaid) to the order of Mr, A. B., Four hundred pounds sterling, value received, Richard Conder. George Kay. ^L^ndX.^"^' } "^''^P'"^ ^'"•^^ 31.4 1825. In drawing the second Bill, write my first and thit^d unpaid, and in drawing the third Bill, write frst and second unpaid. Bills of Exchange are mostly drawn in the money of the Places where they are to be paid. If the Sum be expressed in the money of the place where it is drawn, the Rate of Exchange should be mentioned ; or it may be drawn payable at the Current Exchange, which,, in that case, is settled between the Pai-ties, according to the rate which prevails when the Bill foils due. B 3 INTRODUCTION. When Merchants draw Bills on a House which they suspect may not be inclined to come under more obligations, or in case of an accident happening with the drawee, such as a failure or disappointment, it is common to write, either at the foot of the Bill or on a small piece of paper attached to it, in case of need, apply to (suppose) Messrs, Ellis and Co. their Correspondents at the Place of payment. This prevents the expence and loss of credit which arise from Bills being returned. The incidents which Bills are subject to, after they are delivered by the Drawer, are, acceptance, indorsement, payinent, and protest. I. The acceptance is written at the foot of the Bill, as in the fore- going specimens. A Bill should be presented for acceptance as soon as it comes to hand ; and if the person on whom it is drawn subscribes his name, or even any other writing which does not imply a refusal, it is sufficient to bind him for the payment. If he hesitate with re- gard to acceptance, the Holder may mark the date when it is pre- sented, in order to fix the time of payment. In London, Bills are generally left at the House of the Drawee for acceptance, and called for next day. II. Indorsement is commonly written across the paper on the back of the Bill, and against the end of the line. It is not necessary to mention the place and date ; but if a Bill drawn in England, and also made payable there, be sent abroad in the course of business, an indorsement dated from a Foreign place has the effect to bring it under the regulations of Foreign Bills ; whereas, if the indorsement be not dated, the Bill, after it is sent back to England, carries no evidence of having been Abroad, and is considered as an Inland one. The Holder of a Bill may indorse it blank, by writing only his signature on the back of it ; and the Bill, in this situation, may pass through several hands, and the last Holder may fill up the indorsement in his own favour ; but it is not safe to send Bills by Post, unless the indorsements be filled up. III. Payment of a Bill should be made exactly when due. In order to know when a Bill becomes due, attention must be paid to the Usance and days of grace in different Countries. In Great Britain and Ireland three days of grace are allowed. The following Table shews the Usance and Days of grace, in Foreign Bills, with respect to London. London on Usance. Grace. London on Usance, \ Grace. \ Amsterdam, Hamburgh, Paris, Madrid, Leghorn, 1 rao. date, 1 mo. date, 50 days date 2 mo. sight 3 mo. date. 6 days, 12 10 14 no fixed No. Naples, Genoa, Venice, Lisbon, Dublin, 3 mo. date, 3 days. . 3 mo. date, ! 50 3 mo. date, j 6 30 days date, ' 6 * 1 3 * Bills drawn from London on Dublin are, generally, either at twenty-one days' sight, or thirty days* date j also at thirty-one days' sight, forty-five days' date, and sixty days' date INTRODUCTION. IV. Protest, is an indorsement, or writing, in favour of the Holder of a Bill which is not duly honoured. If a Bill be refused acceptance when presented, or payment when due, it must be protested. The protest is taken by a Notary-public, in presence of two witnesses ; containing a copy of the Bill ; a relation, that acceptance, or payment, has been demanded, and refused ; and for what reason, if any be as- signed ; and a declaration, that all Parties shall be liable to the Holder for the Value, with all costs. If the Holder neglect to protest the Bill on the last day of grace, he loses recourse against the drawer and in- dorsers, and can sue the Acceptor only for the payment. Foreign Bills should be returned, with protest, in course of post. Inland Bills may be kept fourteen days, but no longer. The Holder of a Bill, when he is to pay it away, indorses it, by writing his name on the back of it ; and every indorser is liable for the fate of the Bill. The Person to whom a Bill is made payable must be the first Indorser. This transference may be continued through any number of hands ; and in case the Bill, in the event, should prove bad, it generally retreats in the same way it advanced; at least, in the way of courtesy. The Holder, or last Indorser, demands Principal and costs of the one who preceded him, from whom it is presumable he had the Bill, and so on to another, till it reaches the Drawer, who is finally accountable. In case of diffidence, however, the Holder may sue all the preceding Indorsers and Drawer together. IV. BILLS OF PARCELS. A Bill of Parcels is a Note of the Quantity and value of Goods sold, which is delivered to the Purchaser, by the Seller, along with the goods. When the Account is a copy of Goods sold at the time, the expression is. Bought of A. B. ; but if it be for Goods sold at a former period, make it Dr. to A. B. or To A, B. Dr. When the Goods are sold at one time, the Place and date is written at the top of the Account, as in the following specimen; if not, the different dates are placed in the margin. W^hen an Account is to be settled either by Cash or Bill, a Receipt is granted at the foot, in which the manner of settling it is expressed. If a partial payment be made, it is placed under the Account, and sub- tracted. If several partial payments be made, they are short-extended, and their Sum subtracted. In making out an Account of Goods formerly sold, it is sufficient to express only the date and sum of each Bill of Parcels ; and refer, for particulars, to the Account which was sent with the Goods at the time of purchase : this is called a General Account. An Example wall be the best illustration. B 4 INTRODUCTION. / London, January 4th, 1825. Messrs. John Howie and Co. BOUGHT of A. B. Water Twist No. 20 — 10 Bundles @ 30/. £\5 „ " 21 — 20 — 30/9. 30«15"0 22 — 45 — 31/6. 70«17«6 3 Mo. 75^ Bundles ,1^116 12 6 Vide Day Book, page 1. "■ General Account and Acknowledgement. Messrs John Howie and Co. TO A. B. Dr. 1825. January 4th. To cotton yarn, per Account J^116« 12 „ 6 February 16th. By your acceptance, (§ 3 Mo, 116« 12 „ 6 For A. B. == James Penman. (This is a settlement for the above.) With propriety the word Z)r. should be annexed to the purchaser's name; in the present instance Messrs. John Howie and Co. Dr. to A. B. ; but out of courtesy, it is usual either to annex or prefix it to the seller's name, and it is sometimes omitted altogether. V. INVOICES. An Invoice is an Account of Goods sent off generally by sea, either in consequence of an order from the Person to whom they are sent, and at his risk, or consigned to him for sale at the risk of the Owner. It will be observed from the following specimen^ that the Title or Pre- amble, contains the name of the Vessel and of the Master, place of des- tination, and the name of the Person to whom the Goods are sent, and at whose risk. An Account is next given of the quantity and value of the Goods, with the marks, exhibited on the margin. The Charges at shipping are added to the cost of tlie Goods ; and if there is Commis- sion due for Purchasing and Shipping the Goods, it is generally charged on this Sum. •If Insurance be effected by the Person who ships the Goods, he charges a small allowance, generally h -^ Cent, on the sum insured. This sum, in order to cover the Premium and other expences in case of loss, is allowed to be something more than the value at risk. INTRODUCTION. When an Agent or Shipper of Goods charges what is called the Long price, he either deducts the Drawback from the sum of the In- voice, or gives his Correspondent credit for the same when he receives it: but, when he only charges the Short price, he keeps the Deben- tures, or drawbacks, to himself. When he receives a Certificate of the landing of the Goods at the destined port, he is entitled to receive the drawback. It is common for an Agent, when he purchases a Cargo on Commis- sion, to transmit the several Shop-keepers and Tradesmen's Bills of Parcels, for his Employer's satisfaction ; in which case it is sufficient to express the sum of these in the Invoice, and refer for particulars to the Bills of parcels. The following is the usual form of an Invoice: Invoice of One hundred and ten Barrels of Pot and Pearl Ashes, shipped on Board the Francis, D. Brain, Master, for London ; hy order of Mr, A. B., Merchant of that place, for his Account and Risk. Cwt. q. lb. 65 Barrels Pot, weighing 165 „ 3 „ 20 Tare J; 20 « 2 « 27 Net Cwt.... 145 «0 «Tl @ 6 Dollars 40 Cents is 45 ditto Pearl, weighing 110 « 2 ,, toTTo Barrels. Tare \ 13 /> 3 » 7 Net Cwt. ... 96 „ 2 « 21 @ 7 dollars is CHARGES. Cooperage, Cartage, and Wharfage, Entry Bond, and Bills of Lading,.... Commission 2 J f^ Cent, Dol. C 929 .20 676 . 81 Dollars Exchange @ 4/6 ^ dol. is Errors Excepted. New York, December T^. 1824. Richard Conder. Vide Day-Book, page 1. 57 . 80 7 . 50 41 . 78 1606.01 107.08 1713.09 385.v8«ll 10 INTRODUCTION. Merchants usually prefix the words, Errors Excepted, to their sig- nature, in every Account which they subscribe, that they may have it in their power afterwards to correct errors, if any be discovered : and they prefix any farther limitation, or fuller explanation of the im- port of their Subscription, if the nature of the business require it. The clause or clauses used for this purpose is called the docket. If it be intended, that the Account shall be absolutely settled, so as to exclude all revisal or alteration, this intention must be mentioned in express words in the docket; for though the words Errors Excepted be wanting, it will be considered as an omission, and will not prevent the party injured by the errors from correcting them. VI. ACCOUNT SALES. An Account Sales is an Account of Goods sold on Commission, and drawn out by the Agent to whom they were consigned, to be sent to his Employer. It contains the quantity and value of the Goods sold, the Charges attending the Sales, the Agent's Commission, and the Net Proceeds. Sale of 200 pieces, Linen, received hythe Union, (yHara,from Dublin, on Account of Messrs. James Forbes Sf Co. of that Place. Brown Linen, No. 1 20 Pieces, 2 15 a - 3 25 „ - 4 17 „ - 5 23 „ - 6 25 „ - 7 30 „ - 8 15 „ - 9 __30 „ - 200 pieces 23/9 24/6 26/9 28/3 30/6 27/9 30/6 31/9 32/6 CHARGES. Freight and Landwaiter's Fees £7 n 3 „ 9 Cartages andPorterage -//16« 10 Wharfage, and Housing -h15// 6 Warehouse Rent, and Insurance against Fire, ^^Cent. -« 7 « 3 Commission and Guarantee 5 ^ Cent 14,/ 7«8 To Messrs. James Forbes and Co. for Net Proceeds, \ due 23d September, - f Errors Excepted. London, May 20. 1825. Vide Sales-Book, page 2. A. B. 23 18 33 24 35 34 45 23 48 287 23 264 s. d. 15 - 7| 6 8 9 13 INTRODUCTION. 11 In the specimen of the Sale here given, we first specify the quantity, price, and amount of the Goods sold ; next the various charges incur- red by the Sales. The Commission is charged on ^^ 287 "13/ the gross amount of the Goods ; and the difference betwixt this Sum and ^ 23 „ 1 1/ the amount of Charges, is the Net Proceeds^ or what is due to the Employer. The form of making out an Account Sales is various. Some enter the charges on the first or left hand page * and the quantity, price, and value of the goods, on the second or right hand page, in the manner of Dr, and Cr. The difference then of the two sides exhibits the Net Proceeds. Others rule the Account with a number of columns for the particulars ; as the date of the sale, the Purchaser'' s name, the quantity and quality, the price, and the value of the goods ; but though the forms are different, all tend to the same object, that of ascertaining the Net Proceeds. When an Agent guarantees the debt, it is neither usual nor neces- sary for him to mention the names of the purchasers, in the Account Sales which he sends to his Correspondent ; for in that case, it is a matter of indifference to his Employer to whom the Goods are sold ; besides, it unnecessarily lays open his business to his Employer. If the Goods be sold on credit, and the debts at the risk of the Pro- prietor, the Agent, in rendering an Account Sales, should be careful to insert the clause. Bad. debts Excepted, in the docket: otherwise, in strictness, he becomes accountable for the same; but if the Agent takes the risk of recovering the debts, and charges an extra commis- sion for doing so, or if the goods be sold for cash, that clause is not inserted. The duty of an Agent is to procure the best intelligence of the state of Ti'ade at the place where he resides ; of the quantity and quality of Goods in the market; their present prices, and the probability of their rising or falling ; to pay exact obedience to the orders of his Employ- ers ; to consult their advantage in matters referred to his discretion ; to execute their business with all the dispatch that circumstances admit ; to be early in his intelligence, distinct and correct in his Accounts, and punctual in his correspondence. VII. ACCOUNTS CURRENT. An Account Current contains the state of our Transactions with any person, drawn out in a plain circumstantial manner, disposed in the form of Dr. and Cr. on opposite pages. It requires a knowledge of the principles of Book-keeping to un- derstand fully the nature of an Account- Current. We have only to 12 INTRODUCTION. notice at present, that in making out this Account, all the particulars are set forth as expressed in the Journal, and Subsidiary books, and Dr Richard Conder, Esq. New York, 1825. Jan. . Mar April May June Jan April May June 30 To Balance due as ^ Account furnished 31st ultimo To Cotton ^ Hopewell for Hamburgh, due 28th May To Goods "i^ Ann, due 13th June To C«aA paid bill fav. of Hill To Premium on j^650 insured on 20 Bales Cotton J '^' Fanny to London, at 6 guineas ^ Cent., Commis- > sion i ^ Cent J To Postages To Interest'^ Account annexed , To Balance carried to New Account , Dr INTEREST ^237« 12 « 4 to June 30th 181 da, 150,/-/!- // ditto ,, 71 « 923»13,/10 u ditto « 33 „ 37L/17-/7 1/ ditto « 17 » 250 « - « - dis. to July 18th........ 18 » 663«6«11 « Sept. 23d 85 ,, 237 923 371 150 46 8 356 ^2095 17 9 3 17 VJ. 7114 £ 20|14 In calculating Interest on Accounts Current, the usual method is to compute the Interest, first on the sums of the Dr. side, and then on those of the Cr. ; reckoning the time from the day on which the Sums became due, to the time of settlement. INTRODUCTION. 13 where the collective term Sundries occurs in the Ledger, every refrr ence is supplied. in Account Current mth A. B. London, Cr. 182f5. Jan. Mar. April May May April June By Ashes '^¥v2Li\Q\s, due 7th March By your bill on G. Kay, due 26th April By Cash received from Henry Watt By Blake on Lees, due 28th June By Forbes on Mills — 18th July By Return of Premium on ^650 at 1 ^i^Cent By Net Proceeds 0^20 Bales Cotton, due 2Sd Septenibe; ACCOUNT Cr, £3So 200 400 150 8 „ 11 to June 30th 115 da. -„ - « ditto « 76 » . - /, - u ditto /, 65 u . „ ditto « 2 H 10 Balance carried to New Account Errors Excepted. London, 30th June 1825. A. B 385 400 200 150 250 6 702 ^'2095 11 10^ - 10 - 19 5 8; 4 ^ 2014. We then subtract the Sum of the interest on the one side from that of the other, and the difference ,^8 « 19 « 7., being on the Dr. side, is the interest due by Richard Conder. This method is followed in the specimen above given. 14 INTRODUCTION. II. Method. Dr Side of the Account. 1825. Jan. 1. Toj£237 12 4 April 20. To 150 May 28. To 923 13 10 June 13. To 371 17 7 July 18. To 250 Sept. 23. To 663 6 11 foi 181 71 33 17 18 85 (Usct- disci. Cr Side of the Account, Mar. 7. Byj£385 8 11 for 115 da. April 15. By 200 « 76 „ 26. By 400 « 65 „ June 28. By 150 10 „ 2 « 43043 10650 30482 6322 4500 56384 Cr. 44326 15200 26000 301 151381 85827 By this second Method we multiply the Sums by the respective num- ber of days, reckoning the time as formerly, and extend the products of the Dr. side, in one column, and those of the C7\ in the other. The dif- ference 65554<, when divided by 7800, gives the interest as before. * Of these two methods of calculating interest on Accounts Current, we prefer the second, because it is more expeditious, the interest being calculated only on the difference of the products, which reduces the whole to one division. Men of business, who follow the fi^st method of computing interest, generally use Interest Tables : the want of expertness in calculation may require such helps ; but we would not recommend to young people the assistance of Tables of any kind, excepting those of Compound In- terest and Annuities. Those who have the resolution to reject Tables of Calculation soon acquire a facility in figuring, which seems almost incredible to those who have not made the experiment ; and this faci- lity will not be confined to the calculation of interest alone, but will ex- tend itself to every other branch of Business. * In setting down the products, the Shillings in the product are neglected when below ten, and one is added to the pounds, when they amount to ten or upwards. 15 PART I. BOOK-KEEPING, BY SINGLE ENTRY. GENERAL PRINCIPLES AND RULES. JjooK-KEEPiNG is the Art of recording the Transactions of Persons in Business, in such a manner as to exhibit a distinct view of the State of their affairs. The mode of keeping Books may be varied according to the peculiar nature of the Business; but there are, properly speaking, only two methods, which differ materially from each other; namely, Book-keeping by Single Entry and by Double Entry, Single Entry is the most simple and concise method, but it is imperfect, as it contains Personal accounts only. The Ledger, kept on this plan, affords to the owner a knowledge of what debts are due to him, and of what he owes to others, but it exhibits no Account of the quantities of Goods bought and sold, nor of the Stock in hand. This mode of keeping Books is best adapted to Retail business, in which the articles sold are small and numerous. The principal Books used by Shop-keepers, are a Day-Book, and a Ledger *, the forms of which are exhibited in the following specimens, pages 19 and24,&c. The DAY- BOOK, records every transaction by which new Debts are contracted, or former ones discharged. The entries may be made either in the style of Dr. and Cr. as Joseph Crosby Cr., George Bermard, Dr., as in the specimen first page ; or in common language, as Bought of Joseph Crosby, and Sold George Bernard. The following Rule will direct the Learner in distinguishing Dr. and C?\ in any Transaction. The Person who receives any thing is Dr., and the Person nsoho gives or delivers any thing is Cr. * Besides the above two Books, a Cash-Book is generally kept for entering money received and paid; and in order that the Cash on hand may be checked as often as ne- cessary. — A specimen of this Book is given in pages 32. and 35. When Bill transactions are frequent, a Book of Bills Receivable and Payable will also be necessary for entering Bills Received and Accepted. When these are negotiated or paid, the persons concerned are then debited to^ or credited by^ Cash from the Day-book. 16 BOOK-KEEPING BY SINGLE ENTRY. Thus, if you sell Goods to any Person on credit, he, being the Receiver, is Dr. for the value ; and when he pays you for them, he, being the Per- son who gives, is Cr. By the same Rule the Person from whom you purchase Goods on credit, he, being the Deliverer, is Cr. ; and when you pay him for them, he, being the Receiver, is Dr. The LEDGER * contains an Account for every Person of whom goods are bought, or to whom goods are sold, on credit ; where the Articles for which he is accountable to you, and those for which you are ac- countable to him, are placed on opposite pages, of the same folio : the Dr. Articles on the left, and Cr. articles on the right-hand page, in order to show the state of every Person's Account at one view. — The difference between the Dr. and Cr. sides is called the Balance of the Account. Directions for Posting and Balancing. To post the Ledger, first open an Account for every Person occurring in the Day-Booh, and allot such a space as you may think sufficient for subsequent entries. The Titles of the Accounts should be written in a half text hand, and entered in an Index, -j- Then debit or credit the person for the amount as stated in the Day-Book : that is, write the date of the entry on the margin, and say To Goods, or Cash ; or By Goods, or Cash, as the case may be, insert in the folio column the page of the Day- Book from which you are posting, and the sum in the money column. When the space allotted for any Person's Account is filled up, it must be transferred to anotheryo/zo. Either the sum or difference of the two sides may be inserted in the new Jblio. In order to strike a General Balance, take the difference of every Account, and collect into one Sum the several Balances due to you ; to which add the Cash in hand from the Cash-Book, and the value of the Goods unsold taken by an Inventory. .{: From this sum deduct the amount of the several Balances owing by you, and the difference will be your Net Stock, or the clear value of your property. This, compared with your former Stock, will shew the Gain or Loss on the Business since last Balance. Vide the Balance Account in the following Ledger, page 28- * Some Shop-keepers have their Ledger ruled with two Sets of money columns on the same page ; the one for extending the sums of the Dr., and the other for the sums of the Cr. Others, when the business is extensive, keep two Ledgers, one for the Drs. or those to whom they sell, called the Retail Ledger^ and the other for the Cr«., or those from whom they purchase, called the Wholesale Ledger. f The method of entering Accounts in an Index, is explained page 45. t Fide page 51. SET A. RETAIL BUSINESS. 19 DAY-BOOK (A). By Single Entry. LONDON, 4th JANUARY, 1825. (1) 1 Joseph Crosby, London, Cr. Bv Haberdashery, as ^ Bill of Parcels Edward Dunkin, Manchester, Cr. By Amount of Sundry Goods, as ^ B. P. George Bernard, London, Dr. To 25 Yards Irish Linen, @ 4/6 ^ yard .14- Miss Gordon, Blackburn, Dr. To 1 pair Black Silk Stockings, @ 15/ - £ „ \5 „ 3 pairs White ditto - - - 14/ - 2 2 „ .16"- William Fenton, London, Dr. To 2i Yards Superfine Cloth, drab, @ 20/6 £2 11 3 Sl^ ditto blue, @ 24/ 4 10 „ -18- Miss Gordon, Dr. To 7i Yard Flowered Silk, @ 15/ * This Column refers to the folio of the Ledger, where each ac- count is posted. C 2 £ 57 10 12 17 12 20 DAY-BOOK BY SINGLE ENTRY. LONDON, 20th JANUARY, 1825. (2) Lady Derby , Dr. To 2 large Silk Shawls, - @ 6*0/ 3 large Silk Handkerchiefs, 5)6 1 Parasol, 31/6 - ,/ 16 6 1 11 6 ^1. Thomas Edwards, York, Cr. By Broad Cloths, as ^ B. P. Miss Linwood, London, Dr. To 5 yards fine Velvet, 3 yards Satin, - - 10 yards Silk Lace, @21/ 15/6 14/ £5 5 ,. 2 6 6 7 „ •23- Richard Stanley, London, Dr. To 1^ yards superfine blue Cloth, @ 23/ £2 3 1 2^ - - woollen Cord, - - - 10/ 1 5 ,, 2 - - Kerseymere, - - - - 10/6 11,, 3. _ 4 Quiltings, - ,2^>i -10/6 7 10^ Larf^ Derby, Cr. By Cash, in full. •27- Henry Rawson, London, Dr. To 15 yards green Baize, 33 - Sheeting Received on account @2/5 -1/8 £1 16 3 2 15 ., 4 11 3 3 „ „ d. 24 19 14 11 17 il 1 11 3 v3) DAY-BOOK, BY SINGLE ENTRY LONDON, 4th FEBRUARY, 1825. 21 Thwnas Edwards^ Dr. To a Bank Bill, remitted him in full - Discount allowed by him. - - - c€23 2 ,/ 1 17 6 Francis Bulmer, London, Dr. To 6 yards superfine blue Cloth, @ 20/ - £6 „ 8 - - ditto - drab ditto - 20/6 - 8 4 6 - - Sarsnet 10/ - S „ Richard Stanley, Cr. By Cash in full - - Discount allowed him ^4 12 10- Joseph Crosby, Dr. To Cash paid him in full £31 „ Discount allowed me. ----- 210 .16. Pringle S^ Fletcher, London, Cr. By Sundry Goods, as ^ B. P. Nicholas Rowe, Leeds, Dr. To 75 yards Russia Sheeting, @ 2/3 50 - - Serge - - - - 2/1 1 Packing -£889 7 5 10 ., 2 5 ■26- Miss Gordon, Cr. By Cash received in full £8 5 Abated 4 6 c 3 24 19 17 17 SS 50 10 15 15 17 22 DAi^-BOOK, BY SINGLE ENTRY. LONDON, 3d MARCH, 1825. ^/ George Bernard, Cr. By Cash, in full. Edward Dunkin, Dr. To a Bank Post-Bill, remitted him on Account ■> .10. George Bernard, Dr. To 25 yards Dowlas, 30 - - Diaper, @ 1/6- l/4i £l 17 6 2 1 3 .15- Francis Bulmer, Cr. By Cash, received, on his Account, from J. Rainey, - •20- Peter Wrangham, Bristol, Dr. To 6 pair Cotton Stockings, @ 4/ - - £l 4 6 - - Thread ditto - - - 4/9 - - 18 6 7 - - Kid Gloves, - - - 3/ - - 11 6 Hats, at 8/ lO'O 12/ 14/ 16/ 17/ - - 3 17 6 Francis Bulmer, Dr. To 1 dozen Chip Hats, at 3/ 5/ 7/ 8/6 10/6 15/ 17/ ) 19/ 21/ 23/ 24/6 26/ each. .-'.--.]■ -25- Henry Rawson, Dr. To 20 yards Lawn, - - - (§3/6 - 23 - - Gauze, - - - _ 2/ 6 pairs Women's Hose, - 3/6 - £3 10 2 6 1 1 .28- Nicholas Rowe, Cr. By 25 yards Russia Sheeting, returned at 2/3 £ 2 16 3 Cash received in full, 12 1 Discount allowed him. --_.. ,199 d. 6 25 18 10 11 19 17 15 17 // ( 23 ) INDEX TO LEDGER A. By Single Entry. Fol B Bernard, George ------ i Bulmer, Francis ------ 2 Balance. ------ 3 Crosby, Joseph Fol. L Lin wood. Miss - - - - - - - 2 D Dunkin, Edward ------ i Derby, Lady - - - - _ - i E Edwards, Thomas F Fenton, William ------ i G Gordon, Miss Pringle & Fletcher, 2 II Rawson, Henry ----- » g Rowe, Nicholas ------ 3 Stanley, Richard w 1 c 4 Wrangham, Peter 24 LEDGER, BY (I) 1825. Feb. 10 March Jan. March Jan. Jan. 16 Jan. 20 fol. Dr. JOSEPH CROSBY, To Cash, &c. Dr. EDWARD DUNKIN, To a Bank Post-Bill To Balance, carried to new Ledger - Dr. GEORGE BERNARD, To Goods, To ditto. Dr. MISS GORDON, To Goods, To ditto. Dr. WILLIAM FENTON, To Goods. Dr. LADY DERBY, To Goods. 33 10 25 32 57 12 18 11 17 12 (1) SINGLE ENTRY. London, Cr. By Goods -_----_.,--- Manchester, Cr. By Goods ----------- London. Cr. By Cash, ---- By Balance, carried to New Ledger - - - - Blackburn. Cr. By Cash, &c. London. Cr. By Balance, carried to New Ledger - - - - of Derby. Cr. By Cash 25 1825. Jan. Jan. March fol. d. 33 10 57 Feb. 26 March 31 Jan. 26 12 18 11 26 LEDGER, BY («) 1825. Feb. Jan. 21 Dr. THOMAS EDWARDS, To a Bank Bill, &c. Dr. ToGoodj. MISS LINWOOD, Jan. 23 Jan. March Feb. March Mardi 31 Dr. RICHARD STANLEY, To Goods. Dr HENRY RAWSON, To Goods, To ditto. - Dr. FRANCIS BULMER, To Goods, To ditto. - Dr. PRINGLE & FLETCHER, To Balance, carried to new Ledger - fol. 24 19 14 11 17 17 8 26 50 15 (2) SINGLE ENTRY. 27 1825. Jdn. 21 March 31 Feb. York. By Goods London. By Balance, carried to New Ledger London. By Cash March 31 March Feb. 16 London. By Balance, carried to New Ledger fol. Cr. 24 19 Cr. 14 Cr. 17 Cr. London. Cr. By Cash By Balance, carried to New Ledger London. By Goods Cr. 10 16 26 50 15 - 28 LEDGER, BY (S) 1825. Feb. 22 March 20 March 13 Dr. NICHOLAS ROWE, To Goods Dr. PETER WRANGHAM, To Goods - - - Dr. BALANCE.^ To George Bernard, To William Fenton, To Miss Linwood, To Henry Rawson, To Francis Bulmer, To Peter Wrangham, due to me - ditto - - ditto - - ditto - - ditto - - ditto - Fol. Amount of debts due to me To Goods, &c. in Shop, as ^ Inventory - Page To Cash in hand, as ^ Cash-Book, - Page Total of Debts, Goods and Cash fol. 15 3 7 14 8 16 7 57 83 271 412 d. 17 11 18 1 11 8 3 11 14 6 1 See Direfftions for Balancing, page 16* (3) SINGLE ENTRY. 29 1825. March 28 Leeds. By Cash and Goods returned, &c. Cr. March 31 March 31 Bristol By Balance, carried to New Ledger Cr. fol. BALANCE, By Edward Dunkin, - By Pringle & Fletcher, Cr. due to him - ditto - - Fol. Amount of debts owing hy me By Cash in hand at the commencement of my ) Business, as ^ Cash-Book ------ j" Net Gain in three Months.* 15 17 11 32 50 83 300 383 29 412 6 // 6 11 See Check on the following page. 30 INVENTORY of GOODS in SHOP, 31st MARCH, 1825. Children's Handkerchiefs 2 dozen and 2 Cambric ditto - 1 4 Muslin, Green Ground 12 yards - Superfine Cloth, Blue 7 - Cotton Stockings, White 12 pairs - Silk ditto Silk Velvet, Green Flowered Silk Satin - Lace - - - Kerseymere - Quiltings Sheeting (Russia) - Furniture in Shop, as ^ account paid Wm. Binn Fire Irons and Fender £ s. d. £ s.d. 8/6 ,/ 18 5 18/6 1 4 8 1/8 1 ,/ ,/ 1^/. 5 12 , 3/9 10/6 2 5 2 12 6 15/, 11 5 , 13/, 13 ,/ . 12/. 10 4 , 11/. 5 10 , 7/. S 10 , (^(6 1 14 11 1/. 1 5 , do , H Binn 21 15 „ - 1 10 6 23 5 6 £83 6 2| CHECK ON THE PRECEDING BALANCE. Amount of Charges^ £ s. d. Cash-Book - - 19 15 10 DISCOUNTS. Allowed to me 4 7 6 ——-by me 1 9 3 2 18 3 16 17 7 Net Gain - 29 ,,11 £45 18 6 Amount of Goods sold ^ Day £ s. d. Book - - 111 2 „ do. for Cash 41 5 10 152 7 10 -do. on hand 60 8 212 8 6 166 10 , Deduct amount Purchased Whole Gain £ 45 18 6 In the above Check we collect on one side, the amount of the Sales from the Dai/'Book, as also those from the Ready-money and Retail Sales-Book, given in page 18, and from the amount of these, we subtract the amount of the Purchases, — the difference, consequently, is the Whole or Gross Gain, when the amount of the Sales exceeds that of the Purchases, as in the above instance. Against this we oppose the Charges attending the business, taken from the Cdsh-Book ; and the Discounts allowed to and by you, as stated in the Day- Book. The Difference between this sum and the other side must be equal to the Net Gain, if free from error. — ^See preceding page, Net Gain, £29 11> as above. PETTY CASH-BOOK.* 31 1825. Jan. Feb. March Postage of a Letter 1 Stone Moulded Candles A Waggon Coals 20 Postage of Two Letters Carriage of Goods Postage of a Letter Porterage of Goods 4 Porterage of Goods 14 Carriage of Goods 20 1 Postage of Letters 26. Porterage of Goods 29 Carriage of Goods Entered ^ Cash-Book Entered ^ Cash-Book Entered #* Cash-Book Paid. £\s. in '14. "i 1 1 £ s. d. 1 18 16 1 ff3- Month. The Petty Cash Book is added up, and the amount expended is carried to the credit side of the Cash-Book. Thus, in the month of January, the Sum expended as above is £l 18 5, which we carry to the credit side of the Cash-Book at the end of that Month, as in the following Cash-Book and so of the other Months. * The above is a Specimen of a Petty Cash-Book, which will be suffi- cient to shew the Learner how such a Book is kept. At the end of each, see above. 32 CASH-BOOK. 1825. Jan. Feb. March 6 26 28 1 10 15 28 31 Dr. Cash. To Stock for Money in hand this day - - To Henry Rawson, received in part - - To Ready-money Sales, received this month To Balance, from last month _ _ _ _ To Lady Derby, received in full - - - To Richard Stanley, received in full - - To Miss Gordon, received in full - - _ To Ready-money Sales, received this month To Balance, from last month - - - - - To George Bernard, received of him - - To Francis Bulmer, received to account - To Nicholas Rowe, received in full - - - To Ready-money Sales, received this month Received. 300 3 16 // // 1 1 13 8 12 5 9 8 14 12 // 1 15 3 // // 2 2 6 // // 6 It 11 6 // // 2 7 319 289 8 4 8 10 321 262 5 10 12 14 305 CASH-BOOK. 33 1825. Jan. 4 6 31 Feb. March 6 22 31 Cr. Cash. By Furniture for Shop, paid Wm. Binn, ^ Account By Fire Irons and Fender -_--_- By Petty Charges, paid this month - - - - By House Expenses, - - do. - - - - By Balance in hand, carried to next month - By Thomas Edwards, paid him in full - By Joseph Crosby, paid him in full By Petty Charges this month - - - By House Expenses - do. - - - - By Balance, to next month - - - - By Edward Dunkin, paid him on Account - - By Stationary Account, paid Crosby - - - - By Petty Charges this month By House Expenses do. ------- By Balance, in hand -------.. Paid. t 21 15 II 1 10 6 1 18 5 4 3 9 289 13 6 319 1 2 23 2 // 31 ig // II 1 3 15 // 26'2 14 11 321 8 // 25 // // 2 10 // I // 1 5 12 6 271 1 11 305 3 7 ( 34. ) i4 O O pq en < in W ;^ o >^ Q Q <: 1 .^ O) ■'^ 1:^ rH l« ^. tJ* ;o ^ --^ 1- ^ '^^^ C<^ Tfl ^ (>l 12 s- ^ eft c CO oiJ" Ol t- 00 i-f CO i-H :s O CO 5: O 5: :i Tj. O 5: 0< G^ — < — < ^ ^ ^ ^ pq W5 C^ 05 50 rH .-. CM «>4 0< Oi 1-1 CO j CO ^ I Sf^ 0< 0< GO Gs! I O ^CO Oi ^ ^ O? 1-1 »o CN ^ "?< CO 00 Si CO t^ !>. lO ^ CO I— ( CO CO ^ ^CO i: ^ o ^ oi 5s 'a Si »0 5; 00 ^ 5: i: ^ :5 0< Oi CO to l-H 0< "^ o^ 00 lo 1-1 ^ - ^ ss 0-< C- 00 r-i 2 4^ CO 00 CO Tji rH 2 C^ CO CO O^i b- 0^? o -^ I— ( ift I— t tJ( CO 5: CO =S f-i 5= oico '^ C t- "«fi O^i o< CO 1-1 CO -H CO G^ O (N O^O 1—1 r— I-- -«? CO 00 rfi -. ^ 00 Oi 5: ^ *j ™ o 2132 o *r _c ^ o -?= o t^ =« " E o ':3 -^•^ 1 c 2J §^«= ii 5 -"c .S 2 S Crt fc, — . '^ 5J =i'5 '^ct^ .2 - CU O .V o tf *-• -^ '^ CO i'S'S ® C CO oj ^ ^ G "^ o 2 <" t« O 4) CO eg- O OJ (U 35 PART 11. BOOK-KEEPING BY DOUBLE ENTRY, ELEMENTARY PRINCIPLES AND RULES. X HE method of Book-keeping by Double Entry is founded on very general principles, and is the most certain in its conclusions. By this method, for every sum entered on the Dr. side of any Account, the same sum must be carried to the Cr. side of other Accounts ; and it follows from this, that an error cannot easily pass unnoticed, because the sums of the Dr. and Cr. sides must be equal. The Ledger, when properly kept, exhibits, in a clear and concise point of view, not only the debts due to, or by the Owner, as in Single Entry, but the Amount of the Cash and Bills, the amount of the Purchases and Sales, the value of the quantity on hand, and the Gain or Loss on each article or on the whole. This method of Book-keeping is therefore best adapted to extensive and complicated business. The matter, which a Merchant's Books should contain, may be reduced to the three following heads : First, The Debts owing to him, and those which he owes to others. Secondly, The Goods, and other property, belonging to him, at commence- ment of the Books; the amount sold, or otherwise disposed of; and the quantity and value still on hand. Thirdly, His Stock or Capital at commencement, the Profits he has ac- quired, or the Losses sustained, and the amount of his Stock at present. The method of Book-keeping, which answers these purposes, must be on the principles of Double Entry ; and the plan which exhibits these most clearly and concisely, is best adapted to the nature of the Business. CHAP. I. Of the DAY-BOOK, and the Subsidiary Books. The DAY-BOOK records the Sales or disposal of such Goods as the Mer- chant has on his own Account, and every other Transaction which cannot with propriety be entered in any of the rest of the Books. D 2 36 BOOK-KEEPING BY DOUBLE ENTRY. Sometimes the Day-Book contains the amount of the several Purchases, and also of the Shipments, with a reference to the Invoice Book for particulars. Some Accountants enter also in the Day-Book, the Sales on Consignment as they are made ; and at the end of the month or when the Sales are finished, they are collected and transcribed into the Sales-Book. The following Subsidiary Books are those now generally used in Business : I. The INVOICE-BOOK, which contains the particulars of Goods pur- chased. — This Book is usually made of blue or cartridge paper, on which the original Invoices are pasted, when checked. Sometimes this Book is dispensed with, by having the original papers filed up ; and only the Seller's name, date, and amount of the purchase, entered in the Day-Book as is done in the following Sets. II. The BOOK OF SHIPMENTS, or Invoice-Book outwards, in which are entered an Account of such Goods as are sent off, either in consequence of orders from the Person or Company, to whom they are addressed, or con- signed for sale. III. The ACCOUNT-SALES-BOOK, in which are entered the Sales of Goods consigned and the other charges laid out, or incurred on them ; as Cel- lar, or Warehouse rent. Interest on money advanced, Commission, &c. with the Net Proceeds ascertained. Note. It is proper that this Book contain the Account-Sales exactly in the form in which they are rendered to Employers. IV. The CASH-BOOK, on the left hand page, or Dr. side, are entered all Sums of money received, and on the right hand page, or Cr. side, all Sums paid. This Book enables the Cash-keeper to check the money on hand as often as he finds it necessary, and it reduces the Cash Account in the Ledger to txjoelve lines, that is, one for each month in the year. V. The BILL-BOOK, in one part of which are entered all Bills which the Merchant receives, and, in the other, all Bills which he grants or accepts. It is ruled with a number of columns for the different clauses of the Bills ; as the date, when received, or accepted; on whom dratvn, or to whom granted; when and where payable ; the Sum of the Bill, and the Event, that is, whether paid, discounted, or protested. The Books above described, when no others are kept, contain the materials from which the Journal and Ledger are composed, and therefore should be kept with the greatest precision and accuracy, and every calculation in them >hould be examined before it is journalized and posted ; for a mistake in any of them must of course, run through the Journal and Ledger. Having thus given a brief description of the nature and use of the Books ^^enerally used, we shall next consider the Ledger, because, though the Journal comes before them in the order of writing, yet the Journal cannot l)e well understood until the nature of the Ledger be explained. ELEMENTARY PRINCIPLES AND RULES. 37 CHAP. II. Of the ledger and an EXPLANATION of the Accounts. The LEDGER collects together Articles of the same kind under their re- spective heads ; and for this purpose it is divided into several Accounts, the Dr. and Cr. of each being opposite. The Accounts in the Ledger, when the Books are kept by Double Entry, may be distinguished into three kinds, answering to the three objects which a Merchant's Books should exhibit, as formerly mentioned. First, PERSONAL ACCOUNTS:— A. B., or any Person's Account, con- tains on the Dr. the Sums for which he is accountable to us, and on the Cr. the Sums for which we are accountable to him. The Balance shows hov* much is owing. BILLS RECEIVABLE, contains on the Dr. all the Bills we receive for any debt owing us ; and on the Cr. those of which we receive payment, or which we otherwise dispose of. The Balance is the Sum owing us in Bills in hand. BILLS PAYABLE, contains on the Cr. the Bills we accept, and on the Dr. those we have paid. The Balance is the Sum we owe in accepted Bills. Secondly, REAL ACCOUNTS,~which are Accounts of any kind of Pro- perty, such as Cash, Goods, Ships, Houses, Lands, or the like. CASH, contains on the Dr., the sums of money we receive, and on the Cr, the money we pay. The Balance shows the Cash on hand. GOODS, contains on the Dr. the amount of the purchases, and all charges: on the Cr. the sales, or other returns. The Balance, after valuing the quantity on hand, is placed on the Cr. and shows the gain or loss. In general, Accounts of Property contain, on the Dr., the value of the pro- perty, and all expenses laid out on them ; on the Cr. the sales, or advantages arising from them, such as freights, rents, or the like. The Balance is the gain or loss, when the value of the property, or subject on hand, is added to the Cr. Thirdly, NOMINAL ACCOUNTS,— which are those of Stock, and Projil and Loss. STOCK, is used instead of the name of the Merchant or Owner of the Books, on the Dr. is entered the Amount of his Debts at commencement, and on the Cr., the Amount of his Subject ; or, in other words, the Amount of the Cash, Goods, Debts, and other Property, then belonging to him. The difference, therefore, shows his Net Stock, or Capital, at that time. PROFIT AND LOSS, contains on the Dr. every Article of loss, and on the Cr. every Article of gain. The difference, when the several items arising from the closing of the Ledger Accounts is placed to the proper side of that Account, shows the Net gain or loss on the business. D 2 38 BOOK-KEEPING BY DOUBLE ENTRY. To shorten and methodize the Profit and Loss Account, it has been found convenient to open several Subsidiary Aceounts, such as the following : Charges, — on the Dr. are entered all Expenses paid or incurred on the busi- ness, which do not belong to any particular Account ; on the Cr. usually the Sums we charge our Employers for Warehouse or Cellar-rent, Postages, or the like. For convenience; sometimes this Account is first debited with the charges on Shipments, and then credited for the same, as is done in the following Sets. House, or Proper Expenses, — on the Dr. the Sums of money, or the value of any thing else taken for private use. There is seldom any thing entered on the Cr.; but there may be part of a Sum which was withdrawn, and not all expended at the time of closing the Books. Interest, — on the Dr. all Sums paid or incurred by us, for interest or dis- count on Bills, or Accounts in receiving a settlement; on the Cr. side, the Sums for Interest, or Discount allowed us. Commission, — on the Cr. are the Sums we receive as an allowance for the trouble of transacting business for others. It is not usual to have entries on the Dr.; and if there be any, it must be Commission which we owe to others ; for instance. Bankers, on whom we may draw bills, charge a commission. Insurance, — is made Dr. for the Sums insured with others ; and Cr. when these sums are charged to the respective Accounts on which they are due. When we have posted a few Accounts into the Ledger, it will readily be perceived, that every Sum which is entered on the Dr. side of the Books, is also entered on the Cr. side; and it follows from this, that, I/' all the Accounts in the Ledger be added, the amount of the Sums of the Dr. side mil be equal to those of the Cr. side. CHAP. III. Of the JOURNAL, and RULES for Journalizing. The journal contains an arrangement of the whole Transactions in each month, with the Drs. and Crs. pointed out, that they may be easily posted into the Ledger. The Rules for distinguishing Dr, and Cr. are mferred from the nature of the Accounts in the Ledger. The following general Rules will apply in all Cases, whether in Personal, Real, or Nominal Accounts. L PERSONAL ACCOUNTS. The Person to luhom any Article is delivered on credit, is Dr. The Person from tuhom any Article is received on trust, is Cr. IL REAL ACCOUNTS. Every Article bought, or received, is Dr. Every Article sold, or delivered, is Cr. ELEMENTARY PRINCIPLES AND RULES. 39 IIL NOMINAL ACCOUNTS. Profit and Loss, j J«^ ^^^^^ jf'.' ^' ^^f^e, is • Dr, ' I tor every Gam or Advantage, is Cr. When any entry is to be made in the Journal, we must consider to which Account in the Ledger it is proper to be placed, both on the Dr. and Cr. sides. As the whole Art of Journalizing consists in a proper choice of Drs. and Crs., which is reckoned the most difficult part of Book-keeping, it is proper to be more particular in the Rules, and that these may be easily re- ferred to, we shall arrange them under distinct heads. We begin with the Journal Entries, which occur at the opening of the Books. First, For the INVENTORY of our Effects. Sundries JDrs. to Stock. Cash, for the money on hand. Goods, or other Property/, for the amount. Bills Receivable, for the Bills in our hands. Personal Accounts, for the Sums owing us. Secondly, For the LIST of our Debts. Stock Dr. to Sundries. To Personal Accounts, for the Amount we owe in open Accounts. To Bills Payable, for our Acceptances not due or paid. L CASH TRANSACTIONS. Cash is Dr for every Sum recsived. Cash is Cr for every Sum paid. Receiving payment of Personal Accounts, Debit Cash, To A. B. (the payer) Receiving Money on Discount. Method 1st. Debit Cash, To A. B. for the net Sum — then Interest Dr. To A. B. for the discount, as stated in the Day-Book. 2d.* Debit Cash To A. B. for the whole Sum — and Credit Cash, By Interest for the discount. Note. The first of these methods is followed in Set B., and the second method in Set C. Receiving Rents, Freights, &c.,Jro'm Accounts of Property. Debit Cash, To the Property, from which they arise. Note. When Rents, Freights, or the like are owing, it will readily occur to the student to debit the Person accountable instead of Cash ; or, when any other Article is received, to make that Article Dr. to the Property. * This method of entering received on discount, is stated as if we received first the whole sum, and then returned the discount. The same method is followed when we pay money on discount. D 4 40 BOOK-KEEPING BY DOUBLE ENTRY. Receiving Money not arising Jrom any Account. Debit Cash, To Commission, if on a Sum which we have charged, for re- ceiving or paying Money, on account of another, — or Debit Cash To Stock, if a Sum which does not arise from the business such as a Legacy received. Paying Personal Accounts. Credit Cash, By A, B- (the receiver.) Paying Money on Discount. Method 1st. Credit Cash, By A. B. for the Net Sum paid, — and A. B. Dr. to Interest, for the discount, as stated in the Day-Book. 2d. Credit, Cash, By A. B. for the full Sum, — and then Debit Cash By Interest for the discount. Paying Charges on Accounts of Pi'operty. Credit Cash, By the Property, for repairs, duties, &c. Note. If the charge be owing at taking a Balance, the Property is made Dr. to the Person to whom it is due; or if we discharge it by giving Goods, the Property is Dr. to Goods. Paying Money not connected ivith any Account, Credit, Cash, By Charges, for incidents, — or Credit Cash, By Profit and Loss, for interest on money borrowed or the like. Note. If any Charge, such as Clerk's wages. Interest on the like, be due at taking a Balance, the amount of Charges, or Profit and Loss, is made Dr. to the Person to whom it is owing. IL BILL TRANSACTIONS. Bills Receivable is Dr for all Bills received. Bills Payable is Cr for all Bills accepted. Receiving Bills in Settlement of an Account. Bills Receivable Dr. to A. B. (from whom received). Note. If we receive Bills from more than one person during the month make Bills Receivable Dr. to Sundries. Receiving Payment of Bills. Debit Cash, To Bills Receivable, for payment of No. — Discounting Bills. Debit Cash, To Bills Receivable, for the Sum of the Bill. Credit Cash, By Interest for Discount on No. — ELEMENTARY PRINCIPLES AND RULES. 41 Accepting Bills. A. B. (on whose account) Dr. to Bills Payable. Note. If we accept Bills to more than one person during the month, make Sundries Drs. to Bills Payable. Paying Bills. Credit Cash, By Bills Payable^ paid No. — Drawing and Remitting Bills. Method 1st. A. B. (to whom remitted) Dr. to C D. (on whom drawn.) 2d- Bills Receivable Dr. to C. D. — and then A. B Dr. to Bills Receivable. Note. If we purchase Bills for Cash^ to be remitted; Credit Cash By A. B. to whom remitted : and when we pay away or indorse a Bill, which we had entered, make A. B. (to whom paid or indorsed) Dr. to Bills Receivable. Renewing Bills. First. If the Bill be in our own hands. A. B. (the Acceptor) Dr. to Sundries. To Bills Receivable, for the sum of the old Bill. To Interest, for the interest added to the new Bill. And then, Bills Receivable Dr. to A. B. for the new Bill. Note. These Entries suppose that Interest is allowed for the time the Bill is renewed, and included in the new Bill. If the interest be paid in Cash, Debit Cash To Interest, for the interest. Secondly. If the Bill has been paid away. Credit Cash, By A. B. when you pay his Bill. Then from the Day-Book — enter A. B Dr. to Interest, for the interest. And from the Bill-Book Bills Receivable Dr. to A. B. for the new Bill. Protesting Bills. First. If the Bill be in our hands. A. B. (on whose Account it was received) Dr. to Sundries. To Bills Receivable, for the Bill. To Charges, for Expenses of protest. Secondly. If the Bill has been paid away. Credit Cash By A.B. paid his Bill with expenses. or A. B Dr. to Sundries. To C. D. (to whom the Bill was given) for the amount of the Bill. To Charges, for additional expenses paid by us. m. PURCHASES and SALES. Goods are Dr. for all purchases and Charges laid out on them. Goods are Cr. for all Sales, or other returns arising from them. 42 BOOK-KEEPING BY DOUBLE ENTRY. 1. Buying Goods. If for Cash Credit Cash By Goods. If on Credit Goods Dr. to A. B. (the seller.) , Note. If we purchase Goods, partly for Cash, and partly on Credit or Bill the Seller is Credited for the amount of the Goods, from the Invoice, or Day Book ; and Debited for the Cash, from the Cash-Book ; and for the Bill or Bills, from the Bill-Book. 2. Selling Goods. If for Cash Debit Cask To Goods. If for Credit A. B. (the buyer) Dr. to Goods. Note. If we sell Goods partly for Cash, and partly on Credit or Bill, the Buyer is debited for the amount of the Goods, and credited for the Cash and Bills. 3. Bartering or Exchanging Goods. First. When the value of the Goods received, and delivered are equal. Goods Received, Dr. to Goods delivered. Secondly. When the values are unequal. Goods Received Dr. to A, B. from whom they are received, — and A. B Dr. to Goods delivered. Note. When the value of the Goods received is more or less than the value of those delivered, it is best to enter such transactions as a Purchase and Sale, by crediting A. B. for the amount of his Goods, and debiting him for the amount of yours. The reason is, that unless the difference be settled either by Cash or Bill, an Account must be opened for A. B.; and in that case it is proper that the extent of our transactions with him should appear at his Account in the Ledger. IV. SHIPPING GOODS ABROAD. Goods may be sent off either as a Sale, in consequence of Orders from the Person or Company on whose Account they are sent, or as an Adventure consigned to our Agent, for Sales or Returns. A. B. Dr., or. Adventure Dr., to Sundries. To Goods for amount of the goods. To Charges for charges at shipping. To Commission for our commission. To Insurance for premium and policy. V. RECEIVING GOODS ON CONSIGNMENT. When we pay Charges. Credit Cash, By Goods on Commission. ELEMENTARY PRINCIPLES AND RULES. 43 When we sell these Goods. If for Cash, Debit Cash, To Goods on Commission. If on Credit, The Buyer Dr, to Goods on Commission, When we take any of these Goods to Account. Goods, Dr. to Goods on Commission. When the Account Sales is made out. Goods on Commission, Dr. to Sundries. To Charges for Warehouse Rent. To Commission for Agency. To Interest (if any) charged on Money advanced. To Consigner for Net proceeds. When the Consignments consist of a great number of Articles, we prefer opening only one general Account, as in Set C. entitled Goods on Com- mission. VI. EFFECTING INSURANCES. If on Goods Outward Adventure, i ta * c j • Homeward Goods, ^ ^'^ '" S™"*"^^- When Insurance is made on your own Account. . 1 To Insurance for premium and policy. To Commission* for commission — then Insurance, Dr. to the Broker or Assurance Co. When Insurance is made on another person's Account. A. B. Dr. to Sundries. To Insurance for premium and policy. To Commission for your commission. When a return of Premium is claimed for convoy and arrival on another's Account. The Broker or Assurance Co. Dr. to A. B. When a return of Premium is claimed for convoy and arrival on YOUR Account. The Broker or Company, Dr. to Goods or Adventure. Vll. ENTRIES IN BANKRUPTCY. First, If the failure be a total Loss. Profit and Loss, Dr. to the Bankrupt. * In the case of an Adventure. 44. BOOK-KEEPING BY DOUBLE ENTRY. Secondly, When you receive a Composition. Debit Cash To the Bankrupt, for the amount of the dividends — then for the deficiency. Thirdly, Profit and Loss Dr. to the Bankrupt, Fourthly, If at any after Period the Bankrupt should pay up the Balance. Debit Cash To Projit and Loss. Fifthly, When the Loss by a Failure is known at taking a Ba- lance — make Projit and Loss Dr. To the Bankrupt, for the loss ; And carry only the difference to Balance, which is the composition to be received. Vide Set C. Journal, p. 9. Ord and Davis. VIIL ENTRIES IN JOINT-ADVENTURES. First, When the Goods are wholly furnished by you. Adventure to — in Co. Dr. to Sundries. To Goods for amount of goods. To Charges for charges at shipping. To Commission for your commission (if any). To Insurance foi premium. When the Sales are finished, and an Account rendered by the Agent, enter, Agent Dr. to Adventure in Co. For the Amount of the Net proceeds ; which, if greater than the Amount or the outset charge of the Adventure, the difference is gain ; when to close the Account, make the following entry. Adventure in Co. Dr. to Sundries. To Your Partner for his share of gain. To Projit and Loss for your share of gain (see Set C.) If there has been a Loss, the last entry is just reversed. In Cases where the Agent, to whom the Goods are consigned, is a Partner, we would recommend the following method, instead of the above. Debit him for one half of the Amount of the Adventure when shipped, and debit the adventure in Co. for your half. When he sends an Account Sales, he is then debited only for Your half of the Net proceeds. Secondly, When each Partner furnishes a part of the Goods. Adventure in Co. Dr. to Sundries. To each Partner for what he furnished. To Goods for what you furnished. To Charges for amount paid by you. To Commission (if any) for your commission. To Insurance for premium. ELEMENTARY PRINCIPLES AND RULES. 45 When an Account Sales is rendered, in which the Net proceeds are ascer- tained — The Agext is then made Dr. to Sundries, viz. To Adventure in Co. for the outset charge, To each Partner for his share of the gain, and To Profit and Loss for Your share, if the Business has yielded profit; if otherwise, reverse these entries. Thirdly, When an Adventure is from any Place — on receiving the Invoice, enter Adventure from — in Co.* Dr. to Sundries. 2o the Person from whom the goods were ordered, for the amount. To the Broker, or Insurance, for the premium, if insured. To Charges for all charges paid by you. For the Sales — the several Purchasers are made Dr. to the Article in Co., and when the Sales are finished, the entry is Goods in Co. Dr. to Sundries. To Adventure in Co for the amount of that Account. To Charges for rent and incidents during the sale (if any). To Commission for your commission. To each Partner for his share of gain. , 2o Profit and Loss for your share of gain, (see Set C.) If there has been a loss the necessary entries wiU readily occur to the young Accountant. CHAP. IV. Of posting and BALANCING the BOOKS. The posting of the Ledger, is the transferring of the Accounts in the Journal-entries into the Ledger. The first step is to allot a space for each Account. The room for every Account cannot be exactly known, but must be conjectured from the number of the transactions which are likely to follow. The Accounts may be opened as they occur in the Journal ; or Accounts of the same kind may be placed together. This last arrangement is more con- venient in extensive business ; where it is often necessary to look into several of these Accounts at the same time. Next, an Index will be necessary for pointing out the folios of the Ledger where the Accounts are opened. The titles of the Accounts are entered alphabetically in the Index ; that is. Personal Accounts by the first letter ot the sirname, Companies by the sirname of the Person who stands first in the Firm, and every other Account by the first letter of the first word. In posting the Ledger, proceed in the following manner; First, turn, by the * If the entries be deferred, till the Goods arrive, the Account of Adventure in Co. is avoided. See Rum in Co. in Set C. 46 BOOK-KEEPING BY DOUBLE ENTRY. help of the Index, to the Account that is, Dr. in the Journal -post, where it is opened in the Ledger ; then, on the Dr. side of the Account, write the date on the margin, and on the same line say. To the Account, that is Cr. annexing a short narration if necessary ; next insert, in the reference column, the page of the Journal from which you are posting, and the sum in the money column ; then turn to the Account that is Cr. in the Journal-post, and on the Cr. side say, By the Account that is Dr., inserting the date, reference, and $um, as before ; this being done, turn to the Journal, and mark on the margin, or in a column allotted for the purpose, the folio of the Ledger where the entry is posted. In complex posts, that is, where there are several Drs. or Crs. turn to each in their order, and enter the articles according to the foregoing directions. When the space allotted for any Account in the Ledger is filled up, the Account must be transferred to another yb/zo y for this purpose write on both sides of the Account opposite where the sums will be placed when the Account is added, Transferred to Fol. , and insert the folio where the Account is opened anew. Then after writing the title of the Nevo Account, and entering the new folio in the Index, write on the Dr. To Amount brought from Fol. , and on the Cr. By Amount brought from Fol. , inserting, on each side, the folio where the Account was first opened. The sums of an Account transferred should be left blank till the Books be compared, as an error in any of the entries will occasion an alteration in the Sum. When either side of an Account is full, both sides should be transferred, and a diagonal line drawn, to fill up the vacant space on the side which requires it. Having posted into the Ledger all the articles in the Journal, before you close the Accounts, it is proper to make a Trial Balance, in order to try if the Dr. and Cr. sides correspond. For this purpose, prepare two sheets of paper, ruled with two money-columns, for Dr. and Cr.', write Profit and Loss as the title of the one sheet, and Balance as the title of the other; then leaving Stoch, and Profit and Loss, open till the last, take the balance, or difference of every Account in the following manner : In the Cash Account enter the difference, which is the Cash on hand, on the Dr. side of the Balance sheet. In Personal Accounts, if the Dr. be greatest, enter the difference on the Dr. side of the Balance sheet ; but, if the Cr. be greatest, the contrary. In Bills Receivable, enter the difference, which is the Bills on hand, on the Dr. side of the Balance sheet. In Bills Payable, enter the difference, which is the sum owing in accepted Bills, on the Cr. side of the Balance sheet. In Goods, or other Property, if the whole be on hand, enter the amount on the Dr. side of the Balance sheet. If all be sold, and the Cr. side of the Account be greatest, enter the difference, which is gain, to the Cr. side of the Profit and Loss sheet ; but if the Dr. side be greatest, the difference is loss, and is entered on the Dr. side. If part be on hand, enter the value of it, (estimated at prime cost, or at the current prices,) to the Dr. side of the Balance sheet, and then ascertain the gain or loss on the part sold, which enter on the proper side of the Profit and Loss sheet. In Accounts of Adventures, when no returns have been made, enter the amount which stands at the Dr., on the Dr. side of the Balance sheet. If returns be made, and the Account Credited for the Proceeds of the sales, enter iXtc gain or loss on the Cr. or Dr. side of the Profit and Loss accordingly. ELEMENTARY PRINCIPLES AND RULES. 47 In Accounts subsidiary to Profit and Loss, such as Charges^ House, or Proper Expences, Interest, Commission, &c., enter the difference on the proper side of the Profit and Loss sheet. When you have in this manner collected all the Balances, add the Profit and Loss sheet, including the Sums which stand at that Account in the Ledger. The difference is the net gain or loss : To this, add the difference of the Stock Account, and the sum exhibits your Net Stock or Capital, and which will correspond to the difference of the Balance sheet, if the Books be correctly posted, and the Balances exactly collected The reason of this will appear from what follows : The Balance Account contains on the Dr. the Cash on hand, the value of the Goods, or other Property which belongs to you, and all Debts due to 3'ou. The CV. contains the Sums you owe in open Accounts and in accepted Bills. The difference of Balance, therefore, exhibits your Net Capital at present. The Stock Account contained your Effects and Debts at the commencement of the Books; therefore, the difference shews your Net Capital at that time; and when your Profits are added, or Losses subtracted from this Sum, it will, of course, also shew your Net Stock or Capital. Hence, the proof of Book- keeping by Double entry, consists of two methods of ascertaining what you are worth : the one from a view of your present effects and debts ; the other, from your former Stock, allowance being made for your profits and losses ; and both will correspond, if the Books be correct. The difference of Stock and Balance being found to agree, your next work is to close the several Accounts. For this purpose, transfer the sum or differ- ence of each Account to its proper place in the Ledger, as is done in Set B. ; or if the particulars of the Profit and Loss and Balance sheets are to be inserted in the Journal, as is done in Set C. make the following entries : Lst, Profit and Loss Dr. to Sundries, viz. the several Accounts on the Dr. side of the Profit and Loss sheet ; and, 2d, Sundries Drs. to Profit and Loss, viz. the several Accounts on the Cr. side. 3d, Balance Dr. to Sundries, for the Cash and Goods on hand, and Debts belonging to us — the particulars of the Dr. side of the Balance sheet. 4th, Sundries Dr. to Balance, for the debts owing by us on the Cr. side. When the Articles, which are comprised in these entries, are posted into the Ledger, all the Personal, Real, and Nominal Accounts, will balance, and you may add them as they are posted. The only Accounts that remain open are Stock, Profit and Loss, and Balance. To close these Accounts, tranfer the difference of Stock to the Cr. of Balance, as in Set B. In Set C. every Article in the Ledger is posted from the Journal ; and therefore the following entries are made to close the Books : 1st, Profit and Loss Dr. to Stock, for Net gain ; or. Stock Dr. to Profit and Loss, for Net loss. 2d, Stock Dr. to Balance, for Net capital. The reason of the difference o^ ^iock Accounts agreeing with that of Balance, may be explained in a different point of view. It was formerly observed *, that the whole sums of the Dr. and Cr. sides of the Ledger are equal; and there- Vide p. 22. iH BOOK-KEEPING BY DOUBLE ENTRY. fore if the sides of every Account, except one, be balanced, that one will balance of its own accord. The Balance Account alone remains open, and upon trial, you will find that both sides are equal. It is not necessary to begin new Books after balancing, nor to open the Accounts anew, unless the present j^/fo^ be filled up. The Balances may be brought down, and the Accounts continued in the same Jblios; but it is best to begin a new Ledger, if the present one appear to be insufficient to contain the business to another Balance. The articles of the Balance sheet supply materials to begin the new Books, and these are made the first entries in the Journal.* When a Person in the course of business comes to have several Sets of Books, it is usual to distinguish them by the letters of the alphabet. The first Set is marked A, the second B, and so on.^ * Compare the Balance Account of Set B., with the first entries in the Journal of Set C. SET B. ON PROPER TRADE ; Or, when a Merchant buys and sells on his own Account. SI INVENTORY BOOK, Containing an Inventory of my Property, and a List of my Debts on Ist January 1825. Cash in hand ^former Cash Book ,„£ 10 Casks Spanish Madder, value a^354< « 9 « 4 14 Bales Pernam°. Cotton „ 254 « 7«3 220 Bundles Cotton Yarn (Water Twist) 293 « 10 « 6 House at Windsor, Cost Furniture in Counting-house, valued at Bills on the following persons, viz. No. 157, On Henry Gay & Co. due 6th Jan a^289 159, « Norris&Bell 22d Feb 145 163, « Ord&Davies 22d March... 212 10 „ - 11 „8 6«- The following Persons owe me as follows : John Howie, London, a^llO « 4 Thomas Allwood, ditto , 145 « 10 William Fenton, ditto 117 « 10 Richard Conder, Nevo York 237 « 12 Amount of Cash, Goods, and Debts. ,£ The following is a list ot my Debts. To James Fielding & Co. London ^436 « 17 « 8 To Evans & Bayley, ditto 8 « 4 « - To Edward Weston, Manchester 370 « 1 « - Bills accepted by me and unpaid. No. 68, to Joseph Horsley, due 26th Jan ^178 « 4 » 6 QB, o J. Fielding & Co. « 27th Feb 112 « 15 « - Amount of my Debts £ E 2 1032 902 10 820 7211 647 610 4085 815 290 1106 16 12 19 53 BILL-BOOK ENTRIES FOR SET B. I. BILLS RECEIVABLE. -January 11th, 1825. Received from John Hovoie & Co. my draft accepted, dated 7th January, @ 2 months, payable to my order, No. 164 22d Drawn on Thomas Allvoood for the amount of his account 5th January, @ 3 mo. No. 165 -February 10th Received Sheldon and Sons bill, dated 9th February, @ 3 mo. payable to my order. No. 166 12th Received Thomas Allvoood's bill on J. Burry, payable to his order, dated January 25th, @ 1 mo. No. 167 16th Received from John Hotvie & Co. my draft, accepted this day. (a) 3 mo. No. 168 -March 8th. Edward Weston has remitted me his draft on Charles Dwyer, payable to my order, dated 5th March, @ 3 mo. No. 169.... 1 h Drawn on Sheldon and Sons a bill in favour of J. Fielding & Co. this date, (3) 3 mo. No. 170 24th Received from Richard Conder, his draft on George Kay, payable to my order, @ 30 days' sight, No. 171 Ent^. Bill-Book joa. E 3 110 145 10 117 135 116 10 10 12 112 267 400 15 54^ BILL-BOOK ENTRIES. Accepted Edward Weston s draft on me, dated January 3d, @ 31 days, payable to Mr. Jones, No. 75 14t h IL BILLS PAYABLE. — January 6th, 1825. Accepted J. Fielding Sf Co.'s bill this day, @ 3 mo., payable to their order, No. 76 -February 12th. Accepted Spencer & Croft's draft, @ 60 days' sight, in favour of Kemp ik Gale, No. 77 27th Richard Conder has drawn on me, @ 50 days' sight, in favour of J. Hill, which draft I have accepted, No. 78 , ■March 16th- Accepted two bills drawn by Samuel Johnson in favour of Burk & Moore, 1st March, @ 3 mo., No. 79 ^203« 6 « 6 Ditto Tho'. Austin, 14th do. (® 3 mo. No. 80 300/, 16 « - .18th- Robert Runcorn & Co. have drawn on me a bill in favour of Thomas Adair, @ 2 mo., which I have accepted, No. 81..., Ent'.Bill-Bookj^fl. d. 370 156 272 150 504 429 16 55 CASH-BOOK ENTRIES. FOR SET B. — January 1st, 1825 Balance on hand 5 Bought for Cash, 399 lbs. Mule Twist, ^ Bill of Parcels 6 Received payment of H. Gay & Go's Bill, No. 157 8 — — Paid John Wright for Repairsto House at Windsor Discounted Ord & Davis's Bill, No. 163, due 22d March The Discount is 16 Paid for a Desk for the Counting-House 18 Receired from William Fenton in full 26 Paid my Bill, No. 68, to Jos. Horsley 27 Paid Duty, Freight, and Charges, on 110 Casks Ashes, ^ Frances, from New York 31 — Taken for House Expenses this Month Paid Charges this Month, as^ Expense-Book . ^February 6 ^ Paid my Bill No. 75, to Edward Weston 8 Paid Evans and Bayley in full 12 Received from Thomas Allwood in part 16 Discounted at my Banker's, J. Howie & Co's Bill, No. 164, due 10th March Discount 23 Days 23 ^ Received a Legacy of 26 Paid J. Fielding & Co which (including the discount) is in full to 1st January (vide Day Book). fi 4 1032 124 289 21 212 2 6 117 178 81 21 4 370 8 50 lie 500 266 10 11 11 56 CASH-BOOK ENTRIES. 26 Paid Duty, Freight, & Charges on 8 Casks Madder, from Rotterdam ^Jessie , -27- Paid my Bill, No. 65, to J. Fielding & Co. Received Rent of my House at Windsor 28 Received payment of Bill, No. 167, J- Burry Taken for House Expenses this Month Paid Charges, as ^ Expense Book this Month. .March 3. Sold for Cash 66 lbs. Mule Twist. 5 Received Payment of W. Fenton's Account on Discount — net. (vide Day Book) 6 Paid. J. Penman, my Clerk, 3 Months' Salary 10 Received from Thomas Allwood, the Balance of his Account 17 Paid my Bill, No. 76, on Discount, J. Fielding & Co's. Received 31 Days' Discount 22 Discounted at my Banker's, Thomas All wood's Bill, No. 165 due 8th April , Discount 17 days Ord & Davis having failed, I have taken up their Bill, No. 163, due this Day Lost my Pocket Book, containing Bank Notes to the Amount of.. £'35 „ 10 u Paid Charges for Advertising 1 „ 10 « : 28 Paid Charges on Goods shipped ^ the Hopewell for Hamburgh 31 '. Paid for House Expenses this Month Paid Charge? ^ Expense-Book this Month £ s. 31 3 112 15 50 - 135 10 20 2 14 21 9 73 6 17 10 54 16 156 7 13 14.5 10 6 212 6 37 - 9 5 18 ~2 12 15 ! 1 57 DAY-BOOK B. ( 59 ) DAY-BOOK B. LONDON, 4th JANUARY, 1825. (ii Sold Joh?i Howie Sf Co. 75 bundles Water Twist, at 3 months 11 Sold Sheldon ^ Sons, 3 Casks Spanish Madder, at 3 months 18 Received from Riehard Conder, ^ the Frances, from New York, Q5 casks Pot, and 45 casks Pearl Ashes, agreeable to my order, amounting <^ invoice to 1713 dollars 9 cents. @ 4/6 ^ dollar 4th February- The Jessie is arrived from Rotterdam, and has brought me 8 casks Madder, from Spencer S^ Croft, ^ my order, as #* invoice ------------- 11 Sold William Fenton, 48 bundles Water Twist, 5 ^ cent, discount for cash - 12 Sold Thomas Allwood, 5Q bundles Water Twist £ 86 6 6 4 casks Dutch Madder 153 1.9 9 14 Bought of Samuel Johnson, 618 bundles Water Twist, as ^ bill of parcels 18 Received from Robert Runcorn S^ Co. Manchester, 440 lbs. I?idia Tfvist — 5 ^ cent, discount, for bill at 2 months from 1 8th Prox°. amount ^ invoice ------ £ 116 s. 12 117 5 385 8 272 8 77 3 240 6 877 12 452 8 11 60 DAY-BOOK, 20th FEBRUARY, 1825. Sold Sheldon S^ Sons, 5 casks Spanish Madder, at 4 months - - ^205 19 8 13 ditto Pot-ashes, at 2 ditto 6l 15 6 22— Norris ^ Bell's bill, No. 159, f^ue this day not being paid, I have protested, the same £145 11 8 Expenses of protest --------- //lO// 23 Bought of James Fielding 8^ Co. 20 bales of West-India, and 3 ditto of Georgia Cotton-wool, as <^ B. P. - - 25 Bought of Samuel Johison, 400 bundles Water Twist, as ^ B. P. - - - - 26 The Discount allowed by James Fielding <5f Co. on their account, paid this day, is --------- . 27 — Sold Edward Wesion, Manchester, 20 casks Pearl-ashes, at three months ----- 5th March. The Discount allowed to William Fenton on my account re- ceived this day, is ----------- 14 Paid to James Fielding Sf Co. bill. No. 170, on Sheldon Sf Sons, due June 17, on account --------- — . 18 Sold Goodwin S^ Blake, Bristol, 171 bundles Water Twist, at 3 months - - - - - Sold Sheldon S^ Sons, 2 casks Spanish, and 4 ditto. Dutch Madders, to pay in 2 months - - - £ s. d. 267 15 2 146 1 8 684 JO 10 575 7 6 14 // 6 112 1 // 3 17 6 267 15 2 282 11 6 241 3 u (») DAY-BOOK, 12th MARCH, 1825. 61 Discount allowed by Robert Runcorn 8j Co. on their account, settled by bill this day, is --------- . 26 Sold Robert Runcorn Sp Co. Manchester, 14 bales Fernam" , and 3 ditto Georgia Cotton wool, at 3 months 28 Shipped on board the Hopewell, Rankine, for Hamburgh, for account of Richard Conder, New York, and con- signed by his order to Murray & M'Nab, of Ham- burgh, 10 bales Water Twist, containing 580 bundles £887 Charges paid at shipping -------g Insured with Evans Sf Bayley on £Q9.5 \ Premium at 2 Guin. ^ cent, policy 55s. j Commission on ditto at ^ ^ cent. - - - _ 4 12 5 - 22 3 12 31 Due James Penman, my clerk. For 3 months salary, due this day £ 22 428 d. H 923 17 13 10 10 BILL-BOOK B, 64 BILL-BOOK (B). BILLS Page Jour. 2 2 No. When Received. From whom Received. Bp wfum Draum. On whom Drawn. To whom Payable. 164 165 1825. Jan. 11 22 * John Howie & Co. Thomas Allwood A.B. A. B. Themselves Himself A. B. A. B. BILLS Page Jour. No. 166 167 168 When Received. Feb. From wlwm Received. By whom Drawn Sheldon & Sons Thomas Allwood J. Howie & Co. A.B himself A. B. On wlwm Drawn. To whom Payable Themselves J. Burry Themselves A. B. T. Allwood A. B. BILLS Page Jour. No. When Received. From whom Received. By whom Brawn. On whom Draivn. To whom Payable. 6 6 6 169 170 171 Mar. 1 14 24 Edward Weston Sheldon & Sons Richard Conder himself A.B. himself C. Dwyer Themselves Geo. Kay A. B. J.Fielding&Co. * For the Form of this Bill, see. Introduction intitled. Inland Bills IL The Learner, by comparing the Tenor of it with the Entries in the several Columns in the above Bill-Book, will easily understand how such Drafts are recorded. BILL-BOOK (B). 65 RECEIVABLE. Place. London London Date. Jan. 7 Jan. 5 Term. 2 mons. 3 mons. Payable in London London Due. Mar. 10 April 8 Sum, 110 145 255 14 When Feb. Mar. Sf how disposed of. Di&connted with Ltfevie &. Co. Ditto. RECEIVABLE. Place. Date. Term. Payable in Due. Sum. fVhen Sf how disposed of. London Feb. 9 3 mons. 1 London May 12 117 5 2 London Jan. 25 1 mon. London Feb. 2 8 135 10 London Feb. 16 3 mons. London May 1 9 1 116 369 12 7 6 8 1 \ RECEIVABLE. Place. Date. Term. Payable in Due. Sum. When ^ how disposed of. Manchester London N. York Mar. 5 Mar. 14 Feb. 20 3 mons. 3 mons. \ aoDavs' I sight. London London London June 8 Junel7i Apr. 26 112 267 400 779 1 15 If 16 2 // 2 Mar. 14 Indorsed to J.Fielding&Co. se BILL-BOOK (B). BILLS Page When Jour. No. Accepted. 1825. 2 15 Jan. 6 2 76 14 By wltom Draum. To whom Payable. Place. Date. * Edward Weston J. Fielding & Co William Jones J.Fielding&Co. Manchester London Jan. 3 Jan. 1 1 BILLS Page JouT, No. When Accepted. Feb. By whom Drawn. Spencer & Croft Richard Conder To whom Payable. Kemp & Gale John Hill Place. Date. Rotterdam Jan. 23 New York Jan. 26 BILLS Page Jour. No. When Accepted. By who^m Draum. To whom Payable. Place. Date. 6 6 6 79 80 81 March 16 18 Samuel Johnston Ditto R. Runcorn & Co. Burke & Moore Thomas Austin Thomas Adair London London Manchester Mar. 1 Mar. 14 Mar. 18 * For the form of this Bill (A. B. or your acceptance to Edward Weston,) see Introduction, entitled, Inland Bills II. The Learner, by comparing the above Enir?/ with the Bill itself, will be at no loss to understand it. BILL-BOOK (B). PAYABLE. Teryn. Payable in Due. Sum. WJien and to whom Paid. 31 days 3 months London London Feb. 6 April 17 370 156 526 1 7 ~8 // 8 8 Feb. Mar. 6 17 William Jones Charles Wells i i PAYABLE. Term. Payable in Due. Sum. When and to whom Paid. 60 days' sight 50 days' sight London London April 16 April 21 272 150 422 8 // 8 3 _! 3 \ 1 PAYABLE. Term. Payable in Due. Sum. When and to wlwm Paid, i 3 months 3 months 2 months London London London June 4 June 17 May 21 203 300 429 933 6 16 10 18 6 // // "6 END OF BILL-BOOK. S-, CASH-BOOK B. F S 70 CASH-BOOK (B). Dr. CASH Received. 1825 Jan. 1 6 12 18 To Balance, in hand ----------- To Bills Receivable, received payt. of No. 157, H. Gay & Co. To Bills Receivable,discourited No.l6S,Ord&Davis,22 Mar. To William Fenton, received of him m full - - - - 1032 289 212 117 s. 10 10 6 10 1 d. 1 2 // // // X Entered Journal, p. 2. 1651 16 2 Dr. CASH Received. Feb. To Balance, from last month -------- To Thomas Allwood, received of him in part - - - To Bills Receivable,discounted No.l64.,J.Howie&Co.lOMar To Stock - - received a Legacy of ----- - To House at Windsor, received for rent - - - - - To Bills Receivable, received payment of No. 167, J. Burry Entered Journal, p. 4. £ s. 1211 16 50 r/ 110 4 500 // 50 // 135 10 2057 10 J. Dr. CASH Received. Mar. 1 3 5 10 17 22 To Balance, from last month -------- To Cotton Yam, received for 661bs. Mule twist- - - To William Featon, received of him in full - - - - To Thomas Allwood, received of him in full - - - To Interest, for discount on bill No. 76, paid - - - To Bills Receivable, discounted No. 165, T. Allwood, 8 Apr. £ 1245 21 73 54 // 145 s. 16 9 6 16 13 10 X 2 6 // 3 3 // Entered Journal, p. 6. 1541 11 2 CASH-BOOK (B). 71 CASH Paid. Cr. 1825 Jan. 5 8 12 16 26 27 31 // // By Cotton Yarn, paid for sggVos. Mule Twist - By House at Windsor, paid for Repairs - - - By Interest, for discount on bill No. l63. - - By Counting-house Furniture, paid for a desk - By Bills Payable, paid No. 68, J. Horsley - - By Ashes, paid Charges on 110 casks, ^' Frances By House Expenses, paid this month - - - - By Charges, paid as ^ Expense Book this month By Balance, carried to next month - - - - Entered Journal, p. 2. £ g. d. 124 10 // 21 14 // 2 // 8 6 6 t/ 178 4 6 8i 4 10 21 // // 4 19 11 1211 16 5 1651 16 2 CASH Paid. Cr. Feb. By Bills Payable, paid No. 75, E. Weston - - - By Evans & Bayley, paid them in full - - - - By Interest, for discount on bill No. l64. - - - By James Fielding & Co. paid them to 1 st January By Madder, paid Charges on 8 casks, #* Jessie- - By Bills Payable, paid No. 65, J. Fielding & Co. - By House Expenses, paid this month - - - - - By Charges, paid as ^ Expense Book this month - By Balance, to next month -------- Entered Journal, p. 4. £ 370 8 II 266 31 112 20 2 1245 2057 10 CASH Paid. Cr. Mar. By James Penman, paid him 3 months' salary - - - By Bills Payable, paid No. 76, J. Fielding & Co. - - By Interest, for discount on bill No. l65, - - - - By Ord & Davis, paid their bill ------- By Profit and Loss, lost with expenses - - - - - By Charges paid on Goods ^ Hopewell, for Hamburgh By House expenses, paid this month ------ By Charges^ paid as ^ Expense Book this month - - By Balance, to next month --------- Entered Journal, p. 6. £ s. d. 17 10 1 156 n 8 II 6 9 212 6 // 37 // // 9 5 4 18 12 6| 2 15 1 1087 7 10 1541 11 ^ F 4 .1 ) JOURNAL B. •"^-^-^^'Tl'^ I - I I I . ( 75 ) JOURNAL (B). LONDON, 1st JANUARY, 1825 Sundries Drs. to Stock, For the following Balances in my favour. Cash - - - - for balance in hand - • - - Bills Receivable for the following ])ills in hand, viz. No. 157, Henry Gay & Co. due 6th Jan £289 10 // 159, Norris& Bell - 22d Feb. - - 145 118 163, Ord & Davis - 22d March - 212 6 Madder - - - for 10 casks Spanish - - >- Cotton Wool - for 14 bales Pernam°. - - - Cotton Yarn - for 220 bundles Water Twist House at Windsor, value ------ - Counting-house Furniture, ^ Inventory - - John Howie & Co. - - London - - - - Thomas Allwood - - Ditto - - - - - William Fenton - - - Ditto - - - - - Richard Conder - - - New York - - - Stock Dr. to Sundries, For (be following Balances a^lnst me. To James Fielding & Co. - - London - - - - - To Evans & Bayley - - - Ditto - - - - - To Edward Weston - - - Manchester - - - To Bills Payable, - for the following bills unpaid, viz. No. 68, Jos. Horsley - due 26th Jan. - £178 4 6 65, J. Fielding & Co. - 27th Feb. - - 112 15 // £ s. 1032 10 647 7 354 9 254 7 293 10 820 // 72 11 110 4 145 10 117 10 237 12 4085 12 436 17 8 4 370 1 290 19 1106 2 — - 76 JOURNAL, JANUARY, 1825. 11 18 11 22 John Howie & Co. l>/\ to Cotton Yarn, For 75 bundles Water Twist, at 3 months - - Sheldon & Sons Dr. to Madder, For 3 casks Spanish, sold them, at 3 months Ashes Dr. to Richard Conder, For 65 casks Pot, and 45 casks Pearl, <^ from New York, ^ invoice ... - - the Frances, Bills Receivable Dr. to Sundries, For Bills received this month, «^ B. B. To John Howie & Co. - - No. l64, due March 10 To Thomas Allwood, - - - l65, - - April's 6 U 6 12 18 5 8 12 16 26 27 SI Sundries Drs. to Bills Payable. For Bills accepted this month, ^ B. B. Edward Weston, - - - No. 75, due Feb. 6 - James Fielding & Co. - - 76, - - April 17 Cash Dr. to Sundries. For Sums received this month, ^ C. B. To Bills Receivable, -- for No. 157- - - - - - To Bills Receivable, - - - -l63- To William Fenton - - received of him in full - - Sundries Drs. to Cash, For Sums paid this month, ^ C. B. Cotton Yarn, paid for 399 lbs. Mule Twist, House at Windsor — for repairs - - - - Interest - - for discount on a bill - - - - - Counting-house Furniture — for a Desk - - Bills Payable - - paid No. 68. ----- Ashes paid charges on 110 Casks- - House Expenses - - this month - - - - - Charges this month ----- £ 116 s. 12 d. 6 117 5 2 385 8 11 110 145 4 10 // II 255 14 II 370 156 1 7 8 II 8 8 5^Q 289 212 117 10 6 10 // // // 619 6 // 124 21 2 6 178 81 21 4 10 14 // 6 4 4 // 19 II II 8 // 6 10 // 11 439! 19 11 <5) JOURNAL, FEBRUARY, 1825. 11 12 U 18 20 22 23 25 26 27 Madder Dr. to Spence?' t^ Croft, For amount of 8 casks <^ the Jesse, from Rotterdam, as #* invoice ------------ William Fenton Dr. to Cotton, Yarn, For 48 bundles Water Twist, sold him - - Thomas Allwood Dr. to Sundries, To Cotton Yarn, 56 bundles Water Twist -£86 6 6 To Madder, 4 casks Dutch 153 I9 9 Cotton Yarn Dr. to Samuel Johnson, For 618 bundles Water Twist, ^ B. F. Cotton Yarn Dr. to Robert Runcorn Sf Co. For amount of 440lbs. India Twist, ^ invoice - Sheldon & Sons Dr. to Sundries. To Madder, for 5 casks Spanish, - - - £205 IQ 8 To Ashes, - - 13 ditto pot, 6I 15 6 NoRRis & Bell Dr. to Sundries. To Bills Receivable, for No. 159, not paid - £145 11 8 To Charges, - - for protest - - - - // 10 // Cotton Wool Dr. to James Fielding 8^ Co. For 20 bales West-India, and 3 bales of Georgia, as <^ B. P. - - - - Cotton Yarn Dr. to Samuel Johnson, For 400 bundles Water Twist, as ^ B. P. - James Fielding & Co. Dr. to Interest, For discount allowed by them on account - ■ Edward Weston Dr. to Askes, For 20 casks Pearl sold him - - - - £ 272 77 240 877 452 267 146 684 575 14 112 12 15 10 10 78 JOURNAL, FEBRUARY, 1825. W 10 12 6" 12 27 12 16 27 28 Bills Receivable Dr. to Sundries; For Bills received this month, ^ B. B. To Sheldon & Sons - To Thomas Allwood, To John Howie & Co. - No. i66, due May 12 - - 167, - - Feb. 28 - - 168, - - May 19 Sundries Drs. to Bills Payable. For Bills accepted this month, ^ B. B. Spencer & Croft Richard Conder - - No. 77, due April 15 - - - 78, - - - 20 6 8 16 26 // 27 28 Cash Dr. to Sundries, For Sums received this month, ^ C. B. To Thomas Allwood, received in part - - - To Bills Receivable, - - No. i64 - - - - To Stock - - received a Legacy of - - - - To House at Windsor - - for rent - - - - To Bills Receivable, - - No. I67 - - - - Sundries Dra. to Cash. For Sums paid this month, <^ C. B. Bills Payable - - - Evans and Bayley Interest - - - - James Fielding & Co. Madder - - - - Bills Payable - - - House Expenses Charges No. 75. paid in full - - - - for discount on a bill paid them - - - - - paid charges on 8 Casks No. 65 paid this month - - - - paid this month 117 \S5 116 SCQ 272 150 422 50 110 500 50 135 S^5 370 8 // 266 31 112 20 2 811 8 3 // // 8 3 // // 4 // // // // // 10 // 14 // 1 // 4 // 6 11 9 6 3 8 15 // // // 14 // i— — . 14 1 (5) JOURNAL, MARCH, 1825. 79 14 18 IS 18 26 Interest Dr. to William Fenton, For discount on his account received this day James Fielding & Co. Dr. to Bills Receivable, For No. 170, on Sheldon & Sons, due June 17, Paid them on account --------- Goodwin & Blake Dr. to Cotton Yarn, For 171 bundles Water Twist sold them - - Sheldon and Sons Dr. to Madder, For 2 casks Spanish, and 4 casks Dutch, to pay in 2 months - - Robert Runcorn & Co. Dr. to Interest, For discount allowed by them on account - - 28 31 Robert Runcorn & Co. Dr. to Cotton Wool, For 14 bales Pernam°. and 3 bales Georgia, at 3 months - - - - Richard Conder, Dr. to Sundries, For amount of Goods shipped <^ the Hopewell, Rankine, for Hamburgh, on his account and risk, consigned to Murray & M'Nab. To Cotton Yarn, for 580 bundles Water - £887 12 6 To Charges - - - at shipping - - - - 9 5 4 To Evans & Bayley, for premium on £925 \ 02 3 6 Insured at 2 Guineas <^ cent, and policy j cent. 4 12 6 To Commission for ^ Charges Dr. to James Pemnan, For 3 months salary due him this day - • 267 282 17 15 II 241 22 12 428 923 IS 10 17 10 80 JOURNAL, MARCH, 1825 (fi) 8 14 24 16 // 18 Bills Reckivable Dr. to Sundries, For Bills received this month, ^ B. B. To Edward Weston - - - No. I69, due June 8 To Sheldon & Sons - - - - 170, - - - 17 To Richard Conder - - - - I71, - April 26 Sundries Drs. to Bills Payable. For Bills accepted this month, ^ B. B. Samuel Johnson - - No. 79, due June 4 £203 6 6 80, - - - 17 - 300 16 // R. Runcorn & Co. 81, May 1 3 5 10 17 22 6 17 22 f/ 26 28 31 ~ *• • Cash Dr. to Sundries. For Sums received this month, ^ C. B. To Cotton Yarn - - received for 661bs. Mule Twist To William Fenton - received in full - - - - - To Thomas Allwood, received in full - - - - - To Interest - - - for discount on bill paid - - To Bills Receivable, No. 165 ------- Sundries Drs. to Cash. For Sums paid this month, ^ C. B. James Penman - - - paid him salary Bills Payable - - - paid No. 76. - - Interest ----- for discount on bill Ord & Davis - - - paid their bill - - Profit and Loss - - - lost with expenses - Charges ----- paid ^ Hopewell - House Expenses - - paid this month Charges ----- paid this month 112 267 400 779 16 d. 504 429 21 73 54 // 145 295 17 156 II 212 37 9 18 454 5 4 12 6 15 LEDGER B. ( 83 ) INDEX TO LEDGER B By Double Fmtry. A AUwood, Thomas ----- 3 Ashes ---------6 B Bills Receivable 1 Bills Payable 1 Balance --------8 c Cash 1 Cotton Wool 2 Cotton Yarn 2 Counting-house Furniture - - 3 Conder, Richard ----- 4 Charges --------o Commission -------8 E £vans & Bayley 4 F i'enton, William ----- 3 I'ielding James & Co. - - - 4 G Godwin & Blake 7 H House at Windsor ----- 2 Howie John & Co. ----- 3 House Expenses ----- 5 I Interest --------5 Johnson, Samuel ----- 6 M Madder --------2 N Norris & Bell ------ 7 o Ord& Davis 7 P Penman, James ------ 5 Profit and Loss ------ 8 K Runcorn Robert & Co. - - - 7 s Stock . - - - 1 Spencer & Croft ------ 6 Sheldon & Sons 6* w Weston, Edward ----- 4 2 81' LEDGER. (h Dr. Stock. 1825 Jan. Mar. To Sundries - - - - To Balance, for net Estate 4764 £ 1106 3658 Dr. Cash. Jan. Feb. Mar. To Stock - - - - To Sundries this month To Ditto - - do. To Ditto - - do. I 103210 6\9 6 84514 29515 2793 Dr. Bills Receivable. Jan. Feb. Mar. To Stock - - for Nos. 157, 159, 163, To Sundries - - - l64, l65, - To Ditto - - - . 166, 167, l68, To Ditto - - - - 169, 170, 171, 647 255 779 2052 Dr. Bills Payable. Jan. Feb. Mar. To Cash - - - No. 68 To Ditto- - - - 75 To Ditto - - - - 65 To Ditto- - - - 76 To Balance, for Nos. 77, 78, 79, 80, 81, unpaid. 178 370 112 156 1356 2173 0) LEDGER. 85 Contra. Cr. 1825 Jan. Feb. Mar. By Sundries ------ By Cash, received a Legacy of - By Profit and Loss, for net gain £ 4085 500 178 4764 Contra. Cr. Jan. Feb. Mar. By Sundries this month By Ditto - - do. By Ditto - - do. By Balance, in hand - 439 811 454 1087 2793 Contra. Cr. Jan. 6 12 Feb. 22 26 28 Mar. 14 22 31 By Cash - - - - No. 157 By Ditto 163 By Norris & Bell - - - 1 59 By Cash l64 By Ditto 167 By James Fielding & Co. 170 By Cash l65 By Balance, for No. 166, 168, I69, 171, in hand 289 212 145 110 135 267 145 745 2052 5 6 Contra. Cr. .1 290 19 6 2 526 8 8 4 422 8 3 6 933 18 6 2173 14 11 Jan. Feb. Mar. By Stock - - for - - No. 65, 68 By Sundries 75, 76 By Ditto 77, 78 By Ditto 79, 80, 81 G S 86 LEDGER. ^} Dr. Madder. 1825 Jan. Feb. Mar. To Stock - - for - - ■ To Spencer & Croft - - ■ To Cash - paid Charges ■ To Profit afid Loss, gained 10 10 354 272 31 60 718 Dr. Cotton Wool. Jan. Feb. Mar. To Stock - - for - - - To James Fielding & Co. To Profit and Loss, gained Bales of Bales of Bales of Gtiuigia. W.India Pernio 20 20 14 14 254 684 23 962 Dr. Cotton Yarn. Jan. Feb. Mar. To Stock - - for - - To Cash - - for - - To Samuel Johnson - - To Robert Runcorn & Co. To Samuel Johnson - - To Profit and Loss, gained 440 440 399 S99 220 618 400 1238 293 124 877 452 575 135 2459 Dr. House at Windsor. Jan Mar. To Stock To Cash, paid for repairs To Profit and Loss - - 820 21 50 891 (2) LEDGER. 87 Contra. Cr. 1825 Jan. 11 Feb. 12 20 Mar. 18 By Sheldon & Sons - By Thomas Allwood By Sheldon & Sons - By Ditto - - - - Dutch Casks. 10 117 153 205 241 718 d. Contra. Cr. Mar. 26 By Robert Runcorn & Co. 31 By Balance^ on hand - - Bale-i ot Bales of] Bales ot Georgia. W.India Permo, 20 20 14 14 428 533 962 Contra. Cr. Jan. 4 Feb. 11 12 18 28 3 Mar. 3\ By John Howie & Co. By William Fenton - By Thomas Allwood - By Goodwin & Blake By Richard Conder - By Cash, for - - - By Balance, on hand - 440 66 33S 75 48 56 171 580 308 440 3991238 2459 6 116 77 86 282 887 21 987 Contra, Cr. Feb. Mar. By Cash, received for rent By Balance - - - - 50 841 891 14 G 4 88 LEDGER. (3) Dr. COUNTTNG-HOUSE FuRNITURE. 1825 Jan. 1 16 Tn <^fnpk ------------- 1 2 £ s. 72 11 6 6 d. 6 // To Cash - - paid for a desk 78 17 6 Dr. John Howie & Co. London. Jan. 1 4 To vStork ------------- 1 i 110 116 4 12 // 6 Tn Cnftnn Yam -...-..--.. 226 16 6 Dr. Thomas Allwood, London. Jan. Feb. 1 12 To Stork ------------- 1 s 145 240 10 // 6|3 385 16 3 Dr. William Fenton, London. Jan. Feb. 1 11 To .Stork ----.-.-----. 1 3 117 77 10 3 6 To Potton Yam ----..^---- 194 13 6 (3) LEDGER. 89 Contra. Cr. 1825 Mar. 31 By Balance £ 78 Contra. Cr. Jan. Feb. By Bills Receivable - - No. 16'4 ^y Bills Receivable - - - 16*8 110 116 226 Contra. Cr. Jan. Feb. Mar. By Bills Receivable - - No. 165 ----- gj By Bills Receivable ---167 4 By Cash 4 By Cash 6 145 135 50 54 385 10 10 // 16 16 Contra. Cr. Jan. Feb. Bv Cash ------^-,---- 2 B!^ Cash 6 By Interest --------..-- 117 73 3 194 90 Dr. 1825 Jan. Feb. Mar. LEDGER. — i— — — i^— ■ ■ ■■■ " ■■■ m\mammmmmmmmmmm Richard Conder, New York. To Stock To Bills Payable - No. 78 To Sundries --------,_-- (4> £ 150 923 1311 d. 4 // 10 Dr. James Fielding & Co. London. To Bills Payable - - No. 76 - - - - To Interest --------- To Cash ---------- To Bills Receivable - No. 170 - - - To Balance --------^- EvANS & Bayley, London. By Cash To Balance --------- Jan. Feb. Mar. 14 156 14 266 267 416 1121 Dr. Feb. Mar. 8 22 30 Dr. Edward Weston, Manchester. Jan. Feb. 6 To 27 Bills Payable To Ashes - - No. 15 370 112 482 .4) LEDGER. 91 Contra. Cr. 18 By Ashes ^ Frances --------- 2 24 By Bills Receivable - - No. I71 6 31 By Balance -----^- 8 1825 Jan. Mar, 46 285 400 52/ 1311 17 d. 11 o Contra. Cr Jan. Feb. By Stock - - By Cotton Wool 4S6 684 1121 10 Contra. Cr. Jan. Mar. By Stock - - - By Richard Conder 30 Contra. Cr. Jan. Mar. By Stock By Bills Receivable - - No. 16'9 370 112 482 92 LEDGER. (5) Dr. Sheldon & Sons, London. 1825 Jan. Feb. Mar. To Madder To Sundries To Madder £ 117 267 241 626 Dr. Ashes. Jan. To Richard Conder - - - . To Cash - - - paid Charges 45 45 65 65 385 81 466 811 410 13 9 Dr. Interest. Jan. 12 Feb. 16 Mar. 5 22 31 To Cash 4 To Ditto 4 To William Fenton -----.-___ 4 To Cash ---------_-._ f) To Profit and Loss -------.-- g // SO 37 1311 Dr. House Expenses. Jan. Feb. Mar. To Cash 2 To Ditto 4 To Ditto 6 21 20 1 ^y9 12 (5) LEDGER. 93 Contra. J 825 Feb. Mar. By Bills Receivable By Ditto - - - By Balance - - No. 166 - 170 Cr. £ 117 267 241 626 Contra. Cr. Feb. By Sheldon & Sons - By Edward Weston By Profit and Loss - By Balance, on hand 20 25 45 13 52 65 61 112 2 290 466 Contra. Cr. Feb. Mar. By James Fielding &Co. 3 By Robert Runcorn & Co. -------- 5 By Cash 14 22 37 Contra. Cr. Mar. 31 By Profit and Loss 59 12 94 LEDGER. (6) Di Charges. 1825 Jan. Feb. Mar. 31 To Cash - - - 28 To Ditto - - - 31 To James Penman SSjTo Cash - - - 31 To Ditto - - - £ s. 2 4 19 4 2 14 5 17 10 6 9 5 6 2 15 37 4 Dr. Spencer ^ Croft, Rotterdam. Feb. 12 To Bills Payable No. 77 272 Dr. Samuel Johnson, London. Mar. To Bills Payable, No. 79, SO lo Balance - - - - - 504 948 1452 19 Dr. Robert Runcorn & Co. Manchester. Mar. To Interest - - - To Bills Payable, No 81 To Cotton Wool - - 22 429 428 880 12 16' 9 2 17| 2 (5) LEDGER. 95 Contra. Cr. 1825 Feb. Mar, 22 By Norris & Bell - 28 By Richard Conder 3 1 By Prq/ic and Loss 37 s. d. 10 5 o Contra. Cr. Feb. 4 By Madder ic^ii 4>i^ 272 Contra. ' " V'.i,>.i» By Cotton Yarn - By Ditto Contra. By Cotton Yarn By Balance ---------- Cr. Feb. 14 25 877 575 1452 19 Feb. Mar. Cr. s 8 452 428 8 9 2 880 17 2 96 LEDGER. (7) Dr. NoRRis & Bell, London. 1825 Feb. 22 To Sundries £ 146 Dr. James Penman my Clerk. Mar. To Cash - - paid him 3 months salary 17 10 Dr. Goodwin & Blake, Bristol. Mar. 18 To Cotton Yarn 282 11 Dr. OftD & Davis, London. Mar. 22 To Cash - - paid their bill 212 (7) LEDGER. 97 Contra. Cr. 1825 Mar.S 8 £ 146 1 8 Contra. Cr. Mar. 3 1 Rv ChavxTps .«^-. ..«...« 5 17 10 J/ Contra. Cr. Mar. 3 I Rv Ticiliincp -i---«-«i--^«- 8 282 11 6 1 ; Contra. Cv. Mar. 3] Rv Jinl/incp -•.-»»__•-«- 8 212 6 II 98 LEDGER. (8) Dr. Commission. 1825 Mar 31 To Profit and Loss 12 Dr. Profit and Loss. Mar. To Cash fol. To Ashes ------------- To House Expenses ---------- To Charges ------------ To Stock for net gain --------- 37 2 59 27 178 304 18 Dr. Balance. Mar. 31 To Cash, for money in hand ------- fol To Bills Receivable, for No. l6'6, l68, I69, and 17 1. To Cotton Wool, for 20 Bales on hand - - - - To Cotton Yarn, for value on hand - - - - - To House at Windsor --------- To Counting-House Furniture ------- To Richard Conder - --------- To Sheldon &: Sons ---------- To Ashes, for 77 Casks on hand ------ To Robert Runcorn & Co. -------- To Norris & Bell To Goodwin & Blake --------- To Ord & Davis Amount of my Effects. ----- 1 1087 n 1 745 18 2 533 16 2 987 10 2 841 14 3 78 17 4 525 17 6 241 3 5 290 12 6 428 9 7 146 1 7 282 11 7 212 6 6402 5 (8) ■ LEDGER. 99 Contra. Cr. 1825, Mar. 28 By Richard Conder Contra. Cr. Mar. 31 By Madder ----------- fol. By Cotton Wool By Cotton Yarn ----------- By House at Windsor --------- By Interest ------------ By Comjnission -----,------ (50 23 135 50 30 4 30418 Contra. Cr. Mar. By Bills Payable, for No. 77, 78, 79, 80, and 81, fol. By James Fielding & Co. -------- By Evans & Bayley ---------- By Samuel Johnson ---------- Amount of my Debts. ------- By Stock for my net Capital ------- 1356 416 22 948 2744 3658 6402 II 2 ( 101 ) SET C. ON COMMISSION OR AGENCY TRADE ; Or, when a Person buys and sells on another's Account. / «; :; .j: i i ( 102 ) PRELIMINARY REMARKS ON THE SUBSIDIARY BOOKS FOR SET C. Cash-Book In receiving and paying Money on Discount, the full sum or amount of the account is first entered ; and then a second entry is made for the discount on the opposite side of the Cash-Book. The incidental Charges on the Business is entered once a month ; the amount of which is supposed to be taken from a Petti/- Cash-Book kept for that purpose. The Balance of Cash on hand of the preceding month is carried to the following month. Bill-Book. — In order to give the learner a distinct idea of the nature of the Bills received or accepted, and thereby to enable him easily to enter them into the Bill-Book, we have circumstantially narrated these in the Bill Trans- actions. Account-Sales-Book. — We have given two forms for drawing out an Account of Sales. The form, with the several charges, on the first or left-hand page, and the particulars of the sale on the opposite side, in the manner of Dr. and Cr., is best adapted for West-India produce. Day-Book. — In this Book we have entered the amount of the purchases, to avoid the necessity of keeping an Invoice-Book inward, or Book of Purchases, which is according to the practice of some Counting-houses. To connect the Journal entries, we have also inserted a statement of the Shipments, and Sales on commission. This will greatly simplify the Journal- izing to the Learner. 103 CASH-BOOK ENTRIES FOR SET C. April 1st, 1825. Balance of Cash on hand from former Cash-Book 8 To Accommodate Thomas Allwood, I have retired his Bi] No. 165, due this Day 11 Paid Freight and other Charges on 40 Pieces Osnaburghs, re ceived %> the Sally, from Montrose, to sell on Account of Collins & Greenhill 12 Discounted at the Banker's T. Allwood's Bill, No. 172, due lltb July The Discount is 13 Paid Charges on Goods shipped ^ the Anne for New York.... 15 Pail my Bill to Spencer & Croft, No. 77. Received from Henry Watt on account of Rich. Conder. 18 Paid Charges on Goods ^ the Isabella for Hamburgh. _ 20 Paid my Bill, No. 78, to Richard Conder. Paid Freight and other Charges on 200 pieces Linen, received ^ the Union, O'Hara, from Dublin, to sell on Account of James F^orbes «Sr Co 26 Received Cash for Bill, No. 171, George Kay. 30 l^aid for House Expenses this Month Paid sundry Charges , Petty Cash-Book this Month, -May 2d. Paid Hume & Coleman ... Discount allowed by him 1087 145 cL 10 10 147 1 1 272 200 5 150 8 16 400 23 3 271 3 4. H 4 104 CASH-BOOK ENTRIES. May 7th.- ] iPaid Charges on Goods shipped ^ the Hibernia for Dublin.... ! 9 jPaid Freight and Charges on 450 pieces Muslins, received from i Collins & Greenhill f the Jean, from Montrose, to sell on I their Account 10 'Paid my Bill, No. 82, to Samuel Johnson. Paid Charges on Goods shipped f the Triton for St. Kitts, 12 Received Cash for Bill No. 166, Sheldon & Sons Bought a^l200 Stock in the Three ^ Cents, @ 59^ ; Brokerage ^ T* cent 18 Received from Sheldon & Sons in full of Madder. 19 Received payment of Bill No. 168, J. Howie & Co. Received Cash for Debentures f Isabella. . 21 Paid my Bill No. 81, to R. Runcorn & Co. — 22 Paid Customs, Freight, and Charges on 40 Puncheons Rum (m Co.) Y Nancy from Liverpool 24 [Received payment of Bill No. 169, C Dwyer. 26 Sold for Cash 50 Pieces Muslins, on account of Collins & Greenhill ... . 30 Paid for House Expences this Month Paid for sundry Charges, f- Petty Cash-Book 1 £ I s. 1 3 2 5 5 300 10 8 3 117 5 720 - 241 3 110 12 56 2 429 16 152 6 112 1 1 70 - J 27 1 4 3 CASH-BOOK ENTRIES. 105 June 1st. Paid Hume & Coleman amount of Noble's Bill, returned for non-payment 4 Received payment of Bill No. 177, R. Runcorn & Co. Paid my Bill No. 79, to S. Johnson. 7 - Paid Duty, Freight, and Charges on 20 Bales Cotton, f- Fanny 8 Received from Sheldon & Sons in full of Madder Discount allowed him 13 Paid my Bill No. 83, to J. Fielding & Co. Paid Rent of Warehouse for half a Year ]5 Received Cash for Debentures f- Hibernia. 17 Paid my Bill No. 80, to S. Johnson 18 Sold ^600 Stock, @ 61f ^ Cent.; Commission ^, 22 Paid additional Charges on Rum (in Co.) at delivery — 25 Received on account of E. Weston, Manchester, ^650 which I have this day remitted him, with Moffat's Draft at par, after deducting my ^ f- Cent. Commission 28 Received payment of Richard Conder's Bill No. 178 Received a Dividend of 3/6 ^ £ on ^212 6 from the Estate of Ord&Dale 30 I Paid my Clerk's Salary for 3 months, due this day. Paid for House Expenses this Month {Paid sundry Charges '^ Petty Cash Book. £ 130 428 203 80 115 4 120 25 10 300 367 4 3 150 37 33 20 \ 5 d.\ 2 6 5 16 14 16 10 - 5 10 9 10 3 6 106 BILL-BOOK ENTRIES FOR SET C. /^pj-il -jIj^ 1325. — j!\ccepted Samuel Johnson's Draft in favor of Wise & Yates, this day, @ 1 mo, No. 82 __ 8 Received Thomas Allwood's acceptance No. 172, in conse- quence of retiring his Bill, No. 165, including Interest 10 Goodwin & Blake have given me their draft on Richard Noble dated March 27th, @ 2 mo. No. 173 16 . James Fielding & Co. have drawn on me the following Bills which I have accepted, payable to : John Kay, April 10th, @ 2 mo. No. 83 Sam. Smith, « 12th, (® 3 mo, » 84 Norris & Bell having been necessitated to suspend their pay- ments, have offered to pay 20/ f^ sS, with interest, as follows ; One instalment of 5/ ^ £, and two of 7/6 each, which I have agreed to, and received the Bills, viz. Their Draft on, and accepted by E. Brown March 6th, @ 4 mo, No. 174 Ditto do. 6th, (g) 6 mo, « 175 Ditto do. 6th, (S) 9 mo, „ 176 • May 4th. Received from Robert Runcorn & Co, their Draft on H. Tooke, 1st inst, @ 1 mo. No. 177 8 • Accepted Sheldon & Sons' Draft on me in favor of Tim. Watts, (S) 2 mo, No. 85 _ 9 Samuel Johnson has drawn on me a Bill in favor of H. Blount, @ 50 da. No, 86 15 Accepted two Bills on Account of Moss & Benson, to the fol- lowing : David Young, May 10th, @ 2 mo, No. 87 Veize&Son, « 10th, (Q) 3 mo, „ 88 ^^ 300 147 130 120 295 10 ISl 37 56 56 4^28 458 648 400 227 BILL-BOOK ENTRIES. lo: ~ May 16th. Received from Richard Conder two Bills of Exchange, viz. J. Blake on Lees & Co., payable to M. Tindal @ 40 da. sight, No. 178 W. Forbes on J. Mills, payable to H. Bird (6) 60 da. sight. No. 179 June 10th. James Forbes & Co. have drawn on me a Bill in favor of Patrick O'Brien, 6th inst, @ 3 mo, which I have accepted, No. 89... . ^ IQ . Goodwin & Blake have remitted me their Draft on J. Smith, 3d inst, (g) 1 mo. No. 180 : -: 17 Accepted Collins & GreenhilPs two Drafts in favor of R. Ritchie, June 12th, @ 3 mo. No. 90 J.Sheldon, „ 12th, (S) 3 mo, „ 91 18 Received from Holford, Rucker, & Co. a Bill drawn by Moses Reiss on Sol. Sheldon, payable to their order, June 2d, at LTsance, No. 81 t 28 Received from William Bancroft a Bill drawn by R. Hooly on Moses Parry, payable to Henry Shore, dated 3d May. @ 31 da. sight, No. 182 150 250 d. 10 150 283 220 140 150 350 14 CASH-BOOK C. 110 CASH-BOOK (C). Dr. CASH Received. 1825 Apr. To Balance in hand ----------- To Bills Receivable, No. 172, T. All wood, due July :i. To Richard Conder, received of H. Watt - - - - - To Bills Receivable, No. 171, G. Kay Entered Journal, p. 2, £ *. 087 7 147 7 200 // 400 // ,834 15 Dr. CASH Received. May To Balance^ from last month -------- To Interest, for discount allowed by Hume & Co. - - To Bills Receivable, No. l6'6", Sheldon & Sons - - - To Sheldon &; Sons, received in full of Madder - - - To Bills Receivable, No. 1 6'8, J. Howie & Co. - - - To Debentures, received drawback ^ Isabella - - - To Bills Receivable, No. l6"9, C Dwyer, due June 8 - To Muslins on Commission, received for 50 pieces ^ Jean, sold this day -------'----- } Entered Journal, p. 4. £ s. 1217 7 3 15 117 5 241 3 116|12| 56' 2 112 1 70 // 1934 6 Dr. CASH Received. June 1 4 8 15 18 25 28 To Bailee, from last month -------- To Bills Receivable, No. 177, R. Runcorn & Co. - - To Sheldon Sf Sons, received in full of Ashes - - - To Debentures, received drawback ^ Hibernia - - - To Funded Property, sold ^'600 Stock, @ 614 and |- - To Commission, for A ^ cent, on receiving and remitting ) £690 on account of E Weston « ----- j To Bilh Receivable, No. 178, Richard Conder r- - - To Ord S^^ Davis, received a dividend of 3/6 ^£ on £212 6 Entered Journal, p. 8. 428 120 10 367 150 37 126 CASH-BOOK (C). Ill CASH Paid. Cr. 1825 Apr, 8 11 12 13 15 18 20 // 30 By Thomas Allwood, paid his bill for his accommodation By goods onCommission, paid on Osnaburgs,*^ Sally from ) Montrose ------------ j By Interest, for discount on bill No. 1 72. - - - - - By Charges, ^ Ann, for New York ------ By Bills Payable, paid No. 77, Spencer & Croft - - By Charges, ^ Isabella, for Hamburgh ----- By Bills Payable, paid No. 78, R. Conder - - - - ByGoodson commiss'^, paid on Linen, ^ Union, from Dublin By House Expenses, paid this month ------ ^y Charges, paid ^ Petty Cash-book ------ By Balance, carried to next month ------- Entered Journal, p. 2. £ 145 1 1 272 5 150 8 23 3 1217 1834 15 4 7. CASH Paid. Cr. May By Hume d^' Coleman, paid balance of their account - - By Charges, ^ Hibernia, for Dublin ------ By goods onCommis^paid on Muslins, ^ Jean, from Montrose By Bills Payable, paid No. 82, S. Johnson - - - - Bij Charges, ^ Triton, for St Kitt's By Funded Property, bought £1200 Stoclt, in the 3 ^ ? cent. Consols, at 5^1 ^ cent. — Brokage | ^ cent, j By Bills Payable, paid No. 81, R. Runcorn & Co. - - By Rtim Sf Co. paid Charges on 40 puncheons - - - By House Expenses, paid this month ------ By Charges, paid jp' Petty Cash-book ------ By Balance, to next month --------- Entered Jouimal, p. 4. £ s. 27417 3\ 2 5\ 5 30010 8 3 "1 6 720 // II 429 16 II 152 6' 8 27 3 lOJ 4 /,' A 9 1 1 1934| 6 9 CASH Paid. Cr. June By Hume 8^ Coleman, paid them in lieu of Noble's Bill By Bills Payable, paid No. 79* S. Johnson - - - - By Goods on Commission, paid on Cotton, ^ Fanny, \ from New York ---------- ( By hUerest, for discount allowed Sheldon & Sons - - By Bills Payable, paid No. 83, J. Fielding & Co. - - By Charges, paid Warehouse rent ------- By Bills Payable, paid No. 80, S. Johnson - - - - By Rum S^ Co. paid Charges at delivery - - - - - By House Expenses, paid this month ------ By Projit Sf Loss, paid Clerk's salary to this date - - By Charges, paid ^ Petty Cash-book - - - - - By Balance, in hand ----------- Entered Jourftal, p. 8. £ s. d. 130 15 1! 203 6 6 80 // 5\ 4 10 1 //I 120 16 // 25 II // 300 16 // 4 5 10 20 14 // 33 6 8 5 n 9 197 14 6 1126 16 8 END OF CASH BOOK. BILL-BOOK C m BILL-BOOK (C). BILLS Page Jour, No. When ■ Received. On Aecount qf Drawn by Upon Payable to 2 2 2 2 2 172 17s 174 175 176 1825. April 8 10 16 Himself R. Noble E. Brown Ditto Ditto A. B. A.B. Norris & Bell Ditto Ditto Thomas Allwood Goodwin & Blake Norris & Bell Ditto. Ditto. A. B. Themselves Ditto Ditto Ditto BILLS matmUmmimmmrim Page, J^ Cent, for Convoy and Arrival, Policy 38/6 a£'42» 17 » 6 Commission -l '^ Cent 3// 5/ Sold iVorrw S^Bell, 40 Pieces Osnaburghs, on account of Collins & Green- hill, (^ 6 mo Vide Sales Book, page 1. Shipped ^ the Hibernia, Thomas Howie, for Dublin, by order of James Forbes 8^ Co. and to them Consigned : SOOlbs. Cotton Yarn ^186 « 3 « 9 52 Barrels Pot Ashes 247 « 4 « 9 Paid Charges at Shipping Insured on e£^50 @ 2 ^ Cent ) Policy 13/9 j Commission on ditto, -^ fJ- Cent Vide I. B. page 3. 10 The Drawback on the Ashes shipped ^ the Hibernia, is. Furnished Collins <^ Greenhill, of Montrose, with an Account Sales of their 40 pieces Osnaburghs, "^ the Sally, and charged them, Warehouse Rent £ - « 4 « 3 Commission, 5^ Cent on ^169 8 « 9 « - The Net Proceeds due themjis ,..., 156 « 1 « 5 Vide S. B. page 1. £ 130 565 264 d. 13 46 169 449 10 14 164114 8 (3) DAY-BOOK, 9th MAY, 1825 .^7 Sold Thomas Alhvood, 100 Pieces Linen, on Account of J. Forbes & Co. pay- able @ 4 mo Vide S. B. page 2. 10 Sold Robert Runcorn S^ Co. Manchester, 7 Bales Cotton, payable @ 3 mo 6 Shipped, as an Adventure, on board the Triton, James Noble Master, for St. Kitfs, consigned for sale to William Ban- croft, Merchant there, on Account and Risk of Thomas Allwood and the Shipper, each one-half: Sundry Goods ^ Invoice ^691 « 17 « 4 Charges at Shipping 8 « 3 « 6 Commission 2^ ^ Cent 17 « 10 » - Premium on £110 @ 6 Guineas ^ Cent. Policy 44-/, insured with the London Assurance Company 50 « 14 « 2 Commission on ditto at ^ ^ Cent 3 « 17 « - Vide 1. B. page 4. 12 Sold Sheldon S^ Sons, 200 Pieces Cossae Muslins, on Account of Collins & Greenhill, (Si 4 mo Vide S. B. page 3. 15 Received ^ the Nancy, from Liverpool, 40 Puncheons Rum, ordered from Moss S^ Benson, in Co. with H. Hume and S Johnson, each ^ share, who allows me 2| ^ Cent, on the Sales, for managing the same. Amount ^Invoice... 6^ Sold Hume Sf Coleman, 200 Pieces Muslins, on Account of Collins & Greenhill, @ 4 mo Vide S. B. page 3. 20 Sold Henry Hume, 100 Pieces Linen, able (g) 4 mo Vide S. B. page 2. on Account of J. Forbes & Co. pay- 134 207 d. 13 772 303 627 252 10 153 1S8 DAY-BOOK, 20th MAY, 1825. (4) Sent James Forbes S^ Co, an Account Sales of their 200 Pieces Linen, ^ the Union, and charged them for : Warehouse ^ - « 7 « 3 Commission 5 ^ Cent, on Sales 14 « 7 « 8 The Net Proceeds due them 264 „ 2 „ - 23 Sold Samuel Johnston, 4 Baits Cotton, (g) 4 mo 26 Sold for Cashf 50 Pieces Muslins, on Account of Collins & Greenhill... Vide S. B. page 3. J£ntd. C. B, Furnished Collins 8^ Greenhill, of Montrose, with an Account Sales of their Muslins, ^ the Jean, and charged them for Warehouse Rent £ - „ 15 „ 8 Commission on the Sales 26// 8 « 3 The Net Proceeds due them, is 593 « 7 // - 30 Sold Sheldon S^ Sons, 25 Casks Pearl Ashes 3J ^ Cent, for Cash. 31 Goodwin Sf BlaJce^s Draft on R. Noble, No. 173, indorsed Hume & Coleman, the 2d inst., is th'is day returned by them for non-payment '. ^130// 15 « - I have therefore sent it back to G. & B. and charged them with expenses of protest -//IOh - The Return of Premium on ^650 at 1 ^p^ Cent, for con- voy and arrival of the Fanny, insured the 6th inst. with London Assurance Co. on Account of Richard Con- der, is 278 114 16 d. 11 6 620 120 10 11 131 6 10 (5) DAY-BOOK, 13th JUNE, 1625 139 13 ill June. Sold Evans 8f Bailey, 30 Puncheons Kum, (in Co.) (g) 2 mo. Vide S. B. page 5. 20 Sold Robert Runcorn 8^ Co., Manchester, 20 Bales Cotton, on Account of R. Conder, @ 3 mo...... Rendered Richard Conder, an Account Sales of 20 Bales Cotton, ^ Fanny and charged him for Warehouse & Brokerage s£ 4//ll«i0 Interest on Duty & Freight 1„ 1„ 7 Commission 2^ ^ Cent 20// 4// 5 The Net Proceeds due him, is 702/, 19// 5 99 Sold Thomas Allwood, 10 Puncheons Rum (in Co.) @ 3 mo. The Rum in Co. being now all sold, I close the several Ac- counts as under, viz. My Commission on Sales, 2i ^ Cent ^22,/ 3// 6 Henri/ Hume for his ^ of profit 26// 18// 4 Samuel Jo/mson for his 4 of ditto 26 // 1 8 // 4 Profit Sj- Loss for his ^ of ditto 26nl8„ 4 Vide S. B. page 5. 28 Received an Account Sales from William Bancroft, for the Goods consigned him last month, as an Adventure in Co. with Thomas Allwood, each one-half: The Net Proceeds Amount to Thomas Allwood's one-half of the Profit is ^97 // 3 // 6 And my one-half of ditto 97 // 3 ,/ 6 £ s. d. 667 808 17 728 220 17 102 18 6 Ord Sf Davis having obtained a discharge for 17/6 ^ Pound, with security, to be paid by different instalments, I have agreed to the same ; therefore my Loss on 5^212 ,/ 6 at 2/6 ^ £, is 966 194 26 10 9 140 DAY-BOOK, 30th JUNE, J825. (6) 30 Closed Richard Conder's Account Current, Postage of Letters paid by me s£-a 9y 5 Interest* for, due thereon 8«19ii 7 END OF DAY BOOK C. Previous to the Balancing of my Books, I have this day taken an Inventory of the Goods in my Warehouse, and have on hand, 335 lbs Indian Twist, value 5£34<1» 3« 5 138 Mule Twist, do 41«19«10 308 Bundles Water Twist, do 428« 6« - ^ 811 9 3 * See Specimen, in the iMRODucTioy, pageig. JOURNAL C 14^ RULES FOR JOURNALIZING, MONTHLY. To Journalize the CASH-BOOK, say Cash Dr. to Sundries, viz. To the several Accounts which foliow on the Dr. side. Sundries Dr. to Cash, viz. Several Accounts on the Cr. side of the Cash-Book. N. B. Class together similar Entries on either side. To Journalize the BILL-BOOK, say Bills Receivable Z)r. to Sundries. To the several Persons on whose account the Bills were received. Sundries Drs, to Bills payable, viz. — The several Persons on account of whom the Bills were accepted. N. B. After the names add the Nos., and the time when the Bills fall due. To Journalize the DAY-BOOK* make Goods Dr. to Sundries, 'BoT the several Purchases made during the month. Sundries Drs. to Goods, For the Sales during the month. For insurances Effected : 1st. For Goods Exported, the Entry is Insurance Dr. to the Office with whom insured, Or, Dr. to Sundries, if more Offices than one. N. B. The Account of Insurance is understood to be already Credited for the same from the Invoice-Book. 2d. For Goods Imported, the Entry is The Person (on whose Account the Insurance has been made) Dr. to Insurance — or If your own Goods, they are Dr. to Insurance. N. B. Narrate the particulars, as the rate of Premium and PoHcy, name of Vessel, &c. ♦ The Rules given under Shippikg Goods Abroad, and Goods on Consignment, are sufficient to direct the Learner to Journalize the Invoice-Book, and Account-Sales- Book, to which we refer him. 145 JOURNAL (C). (1) LONDON, April, 1825. 1 1 Sundries Drs. to Stock, For the following Balances in my favor, the 31st ult. trans- ferred from Ledger B. Cash for balance in hand Bills Receivable for the following Bills in hand, viz. No. 171, Geo. Kay due April 26 ^400 „ - « - 166, Sheldon and Sons May 12 117 « 5 » 2 168, John Howie & Co.... 19 116 „ 12 « 6 169, Charles Dwyer June 8 112 « 1« House at Windsor , Goods ^ Inventory Counting-house Furniture Sheldon & Sons London Norris & Bell Ditto Ord and Davis Ditto Robert Runcorn & Co Manchester. Goodwin & Blake Bristol Richard Conder New York., Stock Dr, to Sundries. For the following Balances against me, the 31st ult. trans- ferred from Ledger B. To James Fielding & Co London To Evans & Bayley Ditto To Samuel Johnson .„Ditto To Bills Payable. ..for the following Bills unpaid, viz. No. 77, Spencer & Croft.. .due April 15 ^272 « 8 « 3 78, Richard Conder .- 20 150 „ -,, - 79, Samuel Johnson June 4 203 80, Ditto - 81, R. Runcorn & Co. May 17. 21. 300 429 6 16 16 1087 10 745 841 1811 78 241 146 212 428 282 525 6402 18 14 18 17 3 1 6 9 11 17 oi 416 22 948 I'i^ 1356 2744 111 144 JOURNAL. LONDON, April, 1825. (2) 12 26 15 8 11 20 12 13 18 30 15 20 30 8 10 16 7 16 Cash Dr. to Sundries. For the following Sums received this month. To Bills Receivable No. 172 ^147 « 7 « 6 — 171 400 « - » - To Richard Conder, Sundries Drs. to Cash. For the following Sums paid this month. Thomas AUvoood paid his bill Goods on Commission...'^ Sally, from Montrose ^4 « 5 ^ Union from Dublin... 8 « 16 Bills Payable No. 77,. - 78,. .^272 . 150 House Expenses this month. Interest for discount on a bill Charges ^ Ann, for New York £l „ 13 „ 6 ^ Isabella, for Hamburgh 5 « 13 „ 4 ^ Petty Cash-Book 3 ,, 13 „ 1 8 „ 3 Bills Receivable Dr. to Sundries. For Bills received of the following this month. To Thomas Alltoood, No. 172, due July 11 To Goodmn S^^ Blake... — 173, May 30 To Norris Sf Bell — 174, July 9 ^37 « 4«- 175 Sent. 9 56 » 5 « 8 176, Dec. 9 56 „ 19 „ 4 Sundries Drs. to Bills Payable. For Bills accepted to the following this month. SamuelJohnson No. 82, due May 10 James Fielding Sf Co. — 83, June 13 120 « 16 „ 84, July 15 295 „ 19 „ 8 ^ 547 200 747 145 10 422 23 617 147 130 150 428 300 416 717 10 19 11 JOURNAL. 14.5 (3) LONDON, April, 1825. 4 14 13 18 18 8 16 ! 7 4 13 18 Goods Dr. to Sundries. For Amount bought of the following this month. To Hume 8^ Coleman ^405 « 12 To Sheldon 8^ Sons 458 « 9 Richard Conder Dr, to Sundries. For Amount of Invoice of printed Goods, ^ Ann, for New York, as ^ L B. p. 1. To Goods 335 « 10 « 4 To Charges I « 13 „ 6 To Commission 10,/ 5ul Ilo Insurance 24 « 8»2 HoLFORD, RucKER, & Co. Dr. to Sundries. For Amount of Invoice of printed Goods, f^ Isabella, for Hamburgh, as ^ I. B. p. 2. To Goods (less drawback) ^346 « 5 « - To Charges 5 « 13 « 4 To Commission 12 « 1« To Insurance 9 « 13 156 « 1 « 5 pa. I. ) Sundries Drs. to Goods on Commission. For Amount of 200 Pieces Linen, ^ the Union, and sold for account of James Forbes & Co. S. B. pa. 2. Thomas Allwood,,, 100 Pieces at 4 months ^134 « 13 « - Henry Hume 100 at 4 months 153// - « - l2 d. 449 772 169 164 14 287 148 JOURNAL. LONDON, May, 1825. (6) 20 7 10 T Goods on Commission Dr> to Sundries. To Charges ^- , 7 To Commission 14 « 7 ^o James Forbes 8^ Co- for Net proceeds of ^ ^^ . ^ 200 Pieces Linen, ^ Union, as ^ S. B. p 2. / ^^4? " ^ ' 12 15 26 6 23 10 30 Sundries Drs. to Goods on Commission. For Amount of 400 Pieces Muslins, ^' the Jean, and sold on account of Collins & Greenhill, S. B. p. 3. Sheldon 8^ Sons 200 Pieces at 4 months a£'303 « 6 ,, 8 Hiime Sf Coleman... 200 at 4 months 252 « 10 ,, - Goods on Commission Dr. to Sundries. To Charges sS - « 15 ,, 8 To Commission 26// 8,/ 3 To Collins and Greenhill^ for Net proceeds^ of 450 Pieces Muslins, 7|p^ Jean, as ^ S.B. >- 593 « 7 « - p. 3. ) Hume & Coleman Dr. to Bills Receivable. For No. 173, being Goodwin & Blake on Richard Noble, due May 30th, paid them on account, D.B Goods Dr. to Hume 8f Coleman. For Amount bought of them as ^f B.P Sundries Drs. to Goods. For Amount sold this month. SamuelJohnson 9 Bales Cotton at 2 mo.5^264 « 3 « 2 4 — do. 2 mo. 114 „ 1 „ 6 Robert Runcorn 8^ C 0.1 — do. 3mo Sheldon and Sons 25 Casks Ashes, 3|f Cent, for Cash £ s. d. 278 16 11 555 16 620 130 565 10 15 13 11 37! 207 120 705 JOURNAL. 149 (7) LONDON, May, 1825. 7 10 Insurance Dr. to Sundries, For the following made this month, ^ D. B. To Evans 8^ Bailey ... Premium on ^450 on Goods f^ Hibernia, for Dublin, at 2 ^ Cent, and policy To London Assurance Company ... Premium on ^770 on Goods ^ Triton, for St. Kitt's, at 6 Guineas ^ Cent, and policy 15 31 Richard Conder Dr. to Sundries. For Cost of Insuring ^650 on 20 Bales Cotton ^ the Fanny, from New York to London, at 6 Guineas ^ Cent, to return 1 ^ Cent, for Convoy and Arrival, policy 38/6 ^ D. B. To London Assurance Company j§42 « 17 • 6 To Commission., Sov 2i ^ Cent 3 « 5 »- Debentures Dr. to Goods. For Drawback on 52 Casks Ashes f^ the Hibernia, D. B. Rum in Company Dr. to Moss Sf Benson. For 40 Puncheons, bought of them (in Company with H. Hume and S. Johnson, each -\- Share) and received this day ^ the Nancy, from Liverpool, amount as ^ Invoice D. B 31 6 Goodwin & Blake Dr. to Sundries. For their Draft No. .173, on R. Noble, due 30th, returned them with Protest for Non-payment, '^ D. B. viz. To Hume Sf Coleman,„for Bill paid them i^l30 « 15 i To Charges for protesting it - « 10 , London Assurance Company Dr. to R. Conder. For return of Premium on 5^650 at 1 ^ Cent, for Convoy and Arrival of the Fanny D. B ^ d. 46 10 50 61 10 14 1 14 627 131 5 10 L 3 150 JOURNAL. LONDON, June, 1825. (8) 1 5 4 1 13 - 17 - 7 9 8 8 13 7 30 - 22 9 30 8 - 8 Cash Dr. to Sundries. For the following Sums received this month. To Bills Receivable No. 177 a§4.28 « 9 « 2 178 150»10»- To Sheldon 8^ Sons in full of Ashes To Debentures drawback f^ Hibernia To Funded Property ^"600 in the 3 f)> Cents, at 6 If To Commission I ^ Cent, on £(^90 To Ord Sf Davis Dividend of 3/6 ^^ Sundries Drs. to Cash. For the following Sums paid this month. Hume 4" Coleman paid them Bills Payable No. 79 ^203 « 6 83 120« 16 , 80 300 „ 16 Goods on Commission...'^ Fanny, from New York , Interest discount allowed Sheldon & Sons Charges paid Warehouse Rent..5^25 « - » ^ Petty Cash-Book... 5 « 11 « 9 Rum in Company paid Charges at delivery... House Expenses this month Profit Sf Loss Clerk's Salary to this date Bills Receivable Dr. to Sundries. For Bills received of the following this month. To Goodwin 8f Blake No. 180, due July 6 To Holfordy RucJcer 8^ Co 181, — 5 To William Bancroft 182, —24 Sundries Drs. to Bills Payable. For Bills Accepted to the following this month. James Forbes 8^ Co No. 89, due Sept. 9 Collins 8^ Greenhill 90, — 15. ..^220 „ 10 91, — 15... 140 „ - 578 120 10 367 3 37 1117 130 624 80 4 30 4 20 33 929 283 150 350 783 150 360 511 15 d. 2 5 JOURNAL. 151 (9) LONDON, June, 1825. 20 20 13 22 22 28 28 28 30 R. Runcorn & Co. Dr. to Goods on Commission, For amount of 20 Bales Cotton ^ Fanuy, and sold for Ac- count of R. Conder, at 3 mos. as ^ S. B. p. 4 Goods on Commission Dr, to Sundries, To Charges £^ u 11 « 10 To Interest,,, 1« 1« 7 To Commission 20 « 4« 5 To R, Conder for Net proceeds of 20 Bales 1 ^^^ ,q - Cotton ^ Fanny, due Sep. 23, ^ S. B. p. 4| ^^^ " ^^ " ^ Sundries Drs, to Rum in Company, For Amount of 40 Puncheons sold the following, S. B. p. 5 Evans 8^ Bayley 30 Pun. at 2 months... . ^667 « - « - Thomas Allvoood 10 at 3 220 « - « - Rum in Company Dr, to Sundries, For the following to close that Account, ^ S. B. To Commission for 2^ f^ Cent, on Sales.. ..^22 « 3 « 6 To H. Hume for his I of gain 26 « 18 « 4 To S. Johnson for his ^ of gain 26 « 18 » 4 To Profit 8f Loss for my ^ of gain 26 « 18 « 4 W. Bancroft Dr, to Adventure to St, Kitfs i?i Co, For Net Proceeds of the Goods consigned him, as ^ Account Sales received this day D. B Adventure to St. Kitt's in Co. Dr. to Sundries, For the Balance of that Account due as follows. To Thomas Allwood his g of gain ^97 « 3 w 6 To Profit Sf Loss my ^ of gain 97 « 3 « 6 Profit and Loss Dr. to Ord Sf Davis. For 2/6 ^ sS, being the Amount lost by them, and which I have discharged this day ^D. B Richard Conder Dr. w Sundries. For Postage of Letters and Interest due on his Acct. D. B. To Charges £- „ 9 „ 5 To Interest 8 ,, 19 „ 7 808 17 728 887 17 102 966 18 194 26 10 L 4 im JOURNAL. LONDON, June, 1825. (10) £ s. ,. ^ _ 6 31 6 7 71 9 7 102 16 8 149 6 144 5 5 13 15 1 307 1 - 268 8 9 197 14 6 1183 15 — 841 14 _ 811 9 3 78 17 6 303 6 8 169 — - 148 12 3 600 7 10 351 6 4 257 9 6 352 10 — 126 1 8 1015 19 9 223 12 4 335 15 5 616 4 - 7613 16 — 2541 8 8 313 3 4 87 1 8 356 13 1 388 18 5 3926 10 10 7613 16 - 30 30 30 30 30 Profit & Loss Dr. to Sundries, For Balancing the following Accounts to this date. To Goodwin & Blake To Charges To House Expenses Sundries Drs, to Profit S^ Loss. For Gain on the following Accounts to this date. Goods Commission. Interest Profit and Loss Dr. to Stock. For Balance of the former Account, being the Net Amount of my Gain for the last three months Balance Dr. to Sundries. For Closing all Accounts that Balance in my favor. Cash on hand Bills Receivable, — Bills in hand House at Windsor Goods ^ Inventory Counting-house Furniture Sheldon & Sons Norris & Bell Ord & Davis Evans & Bailey Samuel Johnson Thomas Allwood • Funded Property Henry Hume Robert Runcorn & Co Holford, Rucker & Co James Forbes & Co William Bancroft Amount of my Effects. Sundries Drs. to Balance, For Closing all Accounts wherein the Balances are against me. Bills Payable, — Acceptance unpaid Hume & Coleman London Assurance Company Richard Conder , Collins & Greenhill Stock, Net Capital LEDGER C. 156 INDEX . it/i.acjlii. TO LEDGER C. A Fol. Allwood, Thomas 4? Adventure to St. Kitt's, in com- 1 pany with T. Allwood & Self, >- 9 each one-half. J B Bills Receivable 1 Bills Payable 1 Bancroft, William 10 Balance 10 c Cash 1 Counting-house Furniture 3 Conder, Richard 6 Charges 7 Commission 7 Collins & Greenhill 10 D Debentures 8 E Evans & Bailey 4 F Fielding, James & Co 4 Funded Property 5 Forbes, James & Co 10 G Goods Account 2 Goodwin & Blake 6 Goods on Commission 9 H Fol. House at Windsor ,, 2 Hume & Coleman 5 Hume, Henry 5 Holford, Rucker&Co 6 House Expenses 8 I Johnson, Samuel 4 Insurance 7 Interest 8 L London Assurance Company 5 M Moss & Benson 9 N Norris & Bell 3 o Ord & Davis 3 P Profit & Loss 8 R Runcorn, Robert & Co 6 Rum, in company with H* Hume") „ and S. Johnson, each ^ share.. J s Stock 1 Sheldon & Sons 3 ISS LEDGER. (1) Dr. 1825 Apr. June Stock. To Sundries - - - - To Balance for net capital £ 2744 39^6 6670 Dr. Ca8H. Apr. 1 30 May 31 June SO To Stock -- 1 To Sundries this month --------- 2 To Sundries --do. --------- 4 To Sundries --do. -- 8 1087 747 716 1117 3669 10 6 // 7 11 Dr. Bills Receivable. Apr. May June To Stock 1 745 To Sundries 2 428 To Sundries 4 828 To Sundries 8 783 2786 15 Dr. Bills Payable. Apr. May June To Cash ---------- To Ditto • To Ditto • To Balance for Bills not due or not paid 422 730 624 2541 4319 0) LEDGER. 157 Contra. 1825 Apr, June By Sundries - - - - - By Tfofii 8^ Loss for net gain Cr. £ 6402 268 667013 Contra. Cr. Apr. May June By Sundries this month --------- 2 By Sundries - - do. --------- 4 By Sundries --do. --------- 8 By Balance on hand ---------- 10 617 1925 .929 197 3669 7 8 2 6 11 Contra. Cr. Apr. 1 May 31 June 2 30 // By Cash 2 By Ditto - 4 By Hume & Coleman --------- 6 By Cash 8 By Balance ------------ lo 547 345 130 578 1183 2786 Contra. Cr. Apr. May June By Stock 1 By Sundries ------------ 2 By Sundries ------------ 4 By Sundries ------------ 8 1356 717 1734 511 4319 ws LEDGER. (2) Dr. House at Windsor. 1825 Apr. To Stock 1 841 s. Dr. Goods account. 1825 Apr. May June To Stock Value ^ Inventory. To Sundries To Hume & Coleman To Profit and Loss 1811 864 565 149 3390 13 LEDGER. 159 Contra. Cr. •1825 June 30 By Balance, 10 481 s. 14 Contra. Cr. Apr, May June By Richard Conder ByHolford, Rucker, & Co By Debentures By James Forbes & Co By Adventure to St. Kitt's in Co. By Sundries By Debentures By Balance ... Value on hand 335 346 56 433 691 705 10 811 3390 13 j60 LEDGER. (5 Dr. COUNTING-HOUSE FuRNITURE. 1825 Apr. To Stock 78 Dr. Sheldon & Sons, London. Apr. May To Stock 1 To Bills Payable 4 To Muslins on Commission ------- 6 To Ashes 7 241 458 303 120 1122 18 Dr. NoRRis & Bell London. Apr. May To Stock 1 To Interest 3 To Osnaburgs on Commission ------- 5 146 4 169 319 Dr. Ord & Davis, London. Apr. To Stock 212 (3) LEDGER. 161 Contra. Cr. 1825 June 30 By Balance 10 £ 78 Contra. Cr. Apr. May June By Goods ------------ s By Cash ----- 4 By Ditto 8 By Balance ------------ 10 458 241 120 303 1122 18 Contra. Cr. Apr. June l6By 30 Bills Receivable By Balance - - 2 10 150 169 319 Contra. Cr. June 28 30 By Cash 8 By Profit & Loss .-.- 9 By Balance ------ 10 37 26 148 212 162 LEDGER. (^) Dr. James Fielding & Co. London. 1825 Apr. 16 To Bills Payable 2 £ 416 15 Dr. Evans & Baylby> L 16 8 Francis Barlow - - - 103, - Aug. 23 - - - 250 // // 580 15 // 10 ^ Cent, is deducted from the Interest for the Property Tax. JOURNAL. 187 (4) LONDON, July, 1826. 20 6 10 6 10 20 10 22 Cotton on Commission Dr. to Sundries. To Interest ----------^1 l To Commission --------- ^ Q To John Hanson for net proceeds of 20 \ qha' k Bales^theAnn,dueOct.23,^S.B. r "^"^ ^^ Sundries Drs. to Insurance. For Cost of Insurances made this month on Produce con- signed us by the following vessels, Jamaica to London, premium at 9 Guin. ^ cent, to return 4 ^ cent, for Convoy and Arrival ------D. B. -- John Hanson - Premium on £570 on Sugar and Cotton ^ Eliza, Policy 33s. Commission \ % Cent. Waller & Co. - Premium on £2100 on Sugar and Rum ^ Minerva, Policy 115/6 Commission \ ^ Cent. Mures, Fordyce & Co. Premium on £1100 on Sugar, Cotton, and Mahogany, ^ ditto. Policy 60/6 Com. i 1908 210 22 157 20 2319 173 60 42 1222 I 8 2374 18 279 640 919 3 10 13 JOURNAL. 189 (6) LONDON, August, 1825. 3 20 11 Sundries Drs. to Bills Payable. For Bills accepted to the following this month. Matthew Goodair - No. 104, due Sept. 18 - - - J. & A. Sidney- - - 105, - Oct. 2 £220 U // 106", 12 170 // // Merchandise Dr. to Sundries. For Goods bought of the following Persons in this month, as (> 203 ) INDEX TO LEDGER D. Fol. - - 9 - - 10 Ains worth, William Ash & Gurney - - - B Bills Receivable 2 Bills Payable 2 Barlow, Francis ----- 8 Brookes & Spencer - - - - 9 Balance --------12 Cash 2 Counting-room and Cellars - - 3 Cotton on Commission - - - - 4 Charges --------5 Commission -------5 D Debentures ------- 6 Duties 6 Dennison & Son - - - - - 12 Funded Property - - Forbes, James & Co. - G - 9 Gordon, John ------ 1 Goodair, Matthew - - - - - 7 H Hanson, John - - - - - Hope Estate in Jamaica our ^ Hazard, James - - - - - Hume, Henry & Son - - - Hemming, Edward - ^ - 7 8 11 11 12 Interest --------5 Insurance -------6 J Fol. Jones & Coleman - .... i; K Kilgour, Thomas - - - - - lo L London Assurance Company - - 1 1 M Mahogany on Commission - - 4 Merchandise- ------ 5 Mures, Fordyce & Co. - - « 7 Mortimer, Richard - .... g p Profit and Loss ------ g Proprietors of Hope Estate - - 8 Panton, John - - - - - .12 R Rope- work Company, our ^ - - 3 Rum on Commission - - - - 4 s Stock in Co. ------- I Ship Minerva ------ 3 Ship Britannia, our J - - - - 3 Sugar on Commission - - - - 4 Sidney, John & Archibald - - 8 Smith & Tindal IQ T Thornton, Henry ----- 1 Todd, William 10 w Waller & Co. • 7 204 LEDGER. 0) Stock in Co. Dr. 1825 July Sep. 1 30 To Sundries rCf- ^ IT £> ( To Balance, for Net Capital f V - , - - - . 2 - ------ Ifi £ 2644 17141 s. 11 2 d. 10 // 19785 13 10 T And which Net Capital belong following Pro- Henry Thornton |. - - - John Gordon - ^ - - - See Docquef, Henry Thornton, London. Dr. 1 July Sep. 26 30 Tn rn«h .__---_------ 3 100 5 174 2 // // 7V» "Rnl^ni'P ------------- 1 274 2 // John Gordon, London. Dr. Aug. Sep. SO 12 Tn rash ------------- ^ 5 60 ) 120 // // // // Tn Dittn ---------a--- < 180 // // ; 0) LEDGER. 205 Contra. Cr. 1825 July Sep. By Sundries ------ By Profit ^ Loss, for Net Gain to the Partners in the portions, viz. or - - - £12855 l6 6 or - - - 4285 5 6 £17141 2 // 15 £ 18644 1141 19785 d. 10 // 13 10 Contra. Cr. July Aug. Sep By Stock By Cash By Interest, for 3 mos. Interest on £12,000 Capital 104 20 150 274 CoNTl Cr. Sep. By Interest, for 3 mos. Interest on £4000 of Capital By Profit S^ Loss, for 3 months Salary - - - - By Balance ------------ 50 100 SO 180 so^ LEDGER. (2) Cash. Dr. 1825 July Aug. Sep To Stock - To Sundries To Sundries To Sundries 2296 2721 2319 2053 9391 Funded Property. Dr. July Aug. To Stock To Cash 2023 1222 3246 Bills Receivable. Dr. July Aug. Sep. To Stock - To Sundries To Ditto - To Ditto - 2440 875 919 164-7 5884 16 15 13 19 Bills Payable. Dr. July '31 Aug. 31 Sep. 30 To Cash ---------_ To Ditto To Ditto To Balancey for our Acceptances, not due 505 866 467 1087 2926 (2) LEDGER. 207 Contra. Cr. 1825 July Aug. Sep. By Sundries - - By Sundries - - By Sundries - - By Balance on hand 803 2374 5903 1309 9391 Contra. Cr. July Sep. By Cash By Balance 1.395 1851 3246 Contra. Cr. July Aug. Sep. By Cash By Ditto By Ditto By BalajicCy for Bills on hand 1032 I9O8 886" 2057 5884 Contra. Cr. July 1 31 Aug.'Sl Sep. 30 By Stock - By Sundries By Ditto - By Ditto - 2 1122 4 3 580 15 6 527 'i 10 096 10 2926 IS 208 LEDGER. (3; Ship Minerva. Dr. 1825 July Aug. Sep. To Stock 1 To Insurance ------------ 7 To Cash 9 To Sundries - - (Interest) ------- 14 To Profit Sf Loss 15 £ 2750 123 763 27 931 ^5^Q Ship Britannia, our One-fourth. Dr. July Sep. To Stock 1 To Sundries ------------ 14 To Profit ^ Loss 15 627 7 123 757 Rope-work Company, our One-sixth. Dr. July To Stock 450 COUNTING-ROOM AND CELLARS. Dr. July Sep. To Stock ------ To Sundries - - (Interest) 1 14 650 8 658 (^) LEDGER. 209 Contra. Cr. 1825 Sep. By Cash - By Ditto - By Sundries By Balance 897 357 740 2600 4596 Contra. Cr. Aug. Sep. By Cash - By Balance 5 16 157 600 757 19 19 Contra. Cr. Sep. SO By Balance 16 450 Contra. Cr. Sep. 30 By Balance 16 658 '210 LEDGER. (4) Sugar on Commission. Dr. 11825 July Aug. Sep. To Stock - To Sundries To Charges To Cash - To Sundries 845 1229 8 2083 314 3079 3394 Rum on Commission. Dr. July Aug. Sep. To Stock ~ To Sundries To Charges To Cash To Sundries 9 13 38 670 9 1061 73 388 461 14 8 Cotton on Commission. Dr. July Aug. Sep. 15 To Stock - To Sundries To Ditto - To Charges To Sundries 13 139 317 378 3 839 16 Mahogany on Commission. Dr. July Sep. To Stock ------.-.--.- 1 To Thomas Kilgour ---------- 4 To Sundries ------------ 12j To Ditto 13 30 1 226 60 318 (4) LEDGER. 211 Contra. Cr 18251 Aug.Ii Sep. 2 Jl By Sundries 8 2083 3 5 Hij Tinlnncp --------____ i 6 3394 1 11 Contra. Cr Aug. 3 Sep. 2 Sep. \s 1 R\; Snr»rln*»B _______ 8 922 2 9 138 19 II. 6 Rv Cash --,---------- 2 1061 1 2 fi 7?i< TinJnm-'O _ _ 1 i 5 461 14 8 Contra. Cr. July 2 Aug. Sep. 3( f) Rv Williflm Tndfl ----__--_- i 1 378 10 ^^ 460 10 10 3 1 Rv William Todd --_---_--- " 839 1 1 T 7?7y TinJnnrp .»..-...>.... if ) 16 3 n Contra. Cr. Sep. 2e 3( 5 By James Forbes & Co. -------- 12 258 8 6010 9 ) Rii Tinlnncp ---------*.-- Ifi 31819 // P2 212 LEDGER. (5) Merchandise. Dr. 1825 July Aug. To Stock - To Sundries 235 1671 1906 16 Charges. Dr. July Aug. Sep. To Cash To Ditto To Ditto 7415 5 Interest. Dr. Aug, Sep. To Cash - - To Sundries - To Profit Sf Loss 1 200 47 24814 // Commission. Dr. Sep. 30 To Profit ^' Loss 15 203 10 4 203 10 (5) LEDGER. 213 Contra. Cr. 1825 Sep. By Sundries - By Debentures By Balance £ 1746 132 27 1906 16 Contra. Cr. Aug. Sep. By Sundries -----. By Ditto By Ditto ------. By Proprietors of Hope Estate Bj/ Profit Sf Loss - - - . - 74 15| 5 Contra. Cr. July Aug. Sep. 5 20 27 1 31 // 30 // // By Cash By Cotton on Commission - By Cash By Cotton on Commission - By Rum on Commission *• • By Sugar on Commission - By Cash By Sundries ----.. By Proprietors of Hope Estate 3 40 // 4 1 1 5 22 1 10 18 6 // 5 2 7 16 12 9 54 12 14 100 16 // 5 19 248 14 Contra. By Cotton on Commission - • By Insurance ------ By Cotton on Commission - ■ By Rum on Commission - ■ By Sugar on Commission - • By Insurance -----. By Sundries -----. By Mahogany on Commission ■ By Sundries ------ By Proprietor** of Hope Estate p3 Cr. July Aug. Sep. 91 9 1817 lljlO 23i 3 52; 1 11 10 54: 7 12 2 4 // 203 10 4 2H LEDGER. Debentures. Dr. 1825 July Sep. To Stock - - To Merchandise 180 132 313 Insurance. Dr. July Aug. Sep. To Sundries - - - - To Ditto To Ditto To London Assurance Co. To Profit Sf Loss - - - 385 331 218 107 1044 Duties. Dr. Sep. 30 To Cash 2804 Profit & Loss. Dr. Sep. 30 To Cash To John Gordon - - - - To Sundries - - - - - To Stock in Co, for Net Gain 52 100 12 1141 1306' (6) LEDGER. 215 Con- Cr. 1825 July Sep. By Cash - By Ditto - By Balance 3 9 16 lOS 67 132 313 Contra. Cr. July Aug. Sep By Sundries ------------ 4 By Ditto ----- « 7 By Ditto ------- 10 ^y Ditto 11 385 331 218 108 1044 Contra. Cr. Sep. 15 By Sundries 13 2804 Contra. Cr. Sep. 30 By Sundries 15 1306 1306 p 4 216 LEDGER. (7) Matthew Good air, Jamaica. Dr. 1825 July Aug. 10 Sep. 20 30 To Stock - - To Bills Payable To Sundries - To Commissio?i To Sundries - 204 136 249 1 3 595 Waller & Co. Jamacia. Dr. July 1 10 Sep. 12 20 30 // // To Stock - - To Insurance - To Bills Payable To Sundries - To Commission To Sundries - To Balance 637 214 350 184 3 8 38 1438 10 4 Mures, Fordyce & Co. Jamaica. Dr. July Sep. To Bills Payabk To Insurance - To Sundries - To Commission To Sundries - 330 112 333 1 6 785 John Hanson, Jamaica. Dr. July Sep. To Insurance - To Bills Payable To Commission To Sundries - To Balance 4 58 7 10 225 15 13 1 2 14 li 13 16 43 12 329 11 IC en LEDGER. 217 Contra. Cr. 1825 July Aug. Sep. 6 By Bills Receivable 31 By Sugar on Commission 30 £i/ Balance 150 430 15 ^^^ Contra. Cr. July Aug. Sep. By Cash By Bills Receivable - - - By Cotton on Commission - By Rum on Commission By Insurance - - - - - By Mahogany on Commission 150 279 180 524 84 220 143810 4 Contra. Cr. July Aug. Sep. By Stock By Rum on Commission By Insurance - - - . J5y Balance - - - - 520 117 44 103 785 Contra. Cr. July Sep. By Cotton on Commission By Insurance - - - - 306 329 218 LEDGER. (8) Hope Estate in Jamaica, our One-third. Dr. 1825 July Sep. To Stock - To Sundries 3175 3215 Proprietors of Hope Estate. Dr. Aug. Sep. To Cash ---- 5 To Insurance ------------ 7 To Sundries U To Ditto 14 173 208 739 302 1424 John & Archibald Sidney, Jamaica. Dr. Aug, Sep. To Cash 5 To Bills Payable 6 To Ditto 10 To Sundries 11 To Commission ----------- 13 To Sundries ------------ 14 42 390 120 440 2 997 //U Francis Barlow, St. Kitt's. Dr. July Sep. To Bills Payable S To Commission ----------- 13 To Sufid?ies ------------ 14 To Balance 16 250 1 II 205 457 (8) LEDGER. ^19 Contra. v^ nan J! an g?iMAiCr. 1825 Sep. By Proprietors of Hope Estate By Balance -----. 97 3117 3215 Contra. Cr. Aug. Sep. By Sugar on Commission By Bills Receivable - - By Insurance - - - - .fli'jrryni^. . . 730 16 625 12 68 1424 Contra. Cr. Sep. By Proprietors of Hope Estate By Balance ------ - -xymnrnttokyy >* 194 802 997 //ll Contra. Cr. July Aug. By Stock By Cotton on Commission 272 184 457 220 LEDGER. (9) James Forbes & Co. Dublin. Dr. 1825 July Aug. Sep. 26 To Stock ------ To Rum on Commission To Mahogany on Commission 8 12 640 500 258 1^99 RrcHARD Mortimer, Bristol. Dr. July Aug. To Stock To Sugar on Commission 725 522 1247 17 10 William Ainsworth, Manchester. Dr. Aug. Sep. To Rum on Commission To Balance - - - - 8 16 201 120 322 Brookes & Spencer, Birmingham. Dr. Sep. 30 To Ship Minerva To Balance 12 16 9S 329 423 (9) LEDGER. 221 Contra. Cr. 1825 Aug. Sep. By Bills Receivable By Ditto - - - Bi/ Balance - - 5 10 16 £ 640 500 258 1399 Contra. Cr. July bep. By Bills Receivable By Ditto - - - % Proji ^ Loss - 3 lo; 15 725 522 II 1247 // // 10 17 10 Contra. Cr. Aug. 11 By Merchandise 322 322 10 10 Contra. Cr. July By Stock 423 16 423 16 222 LEDGER. (10) William Todd, London. Dr. 1825 July Aug. To Stock To Cotton on Commission To Cotton on Commission 210 378 460 1049 Smith & Tindal, London. Dr. July Sep. fo Cash 3 To Ditto g To Ship Minerva 12 108 286 124 469 5 10 17 13 Ash & GuRNEY, London. Dr. July Aug. To Cash - - - - . To Rum on Commission 5S 220 273 Thomas Kilgour, London. Dr. July Sep. To Cash - - To Ship Minerva To Balance S 12 16 30 82 29 142 (10) LEDGER. 223 Contra. Cr. 1825 Aug. Sep. By Cash - By Balance 5 16 210 839 1049 13 Contra. Cr. July Aug Sep. By Stock - - By Merchandise Bi/ Balance 2 6 16 108 236 124 469 Contra. Cr. July Sep. By Stock - Bi/ Balance 2 16 53 220 273 Contra. Cr. July By Stock ----- ^ By Maliogany on Commission 140 1 142 S2i LEDGER. (11) London Assurance Company Dr. 1825 Sep. 15 30 10 16 £ s. 156 // 486 // d. u II 642 // II James Hazard, London. Dr. Sep. 4 10 16 62 89 16 19 II 4 TVi Tinlnnr^ _-_---,____- 152 15 4 Jones & Coleman, London. Dr. Sep. 4 Trt r'ocii -------- 9 399 7 6 Henry Hume & Son, London. Dr. Sep. 8 Tr» PasVl - ---------- 9 611 9 6 (») LEDGER. 225 Contra. Cr. 1825 July Aug. Sep. By Insurance By Ditto - By Ditto - 7 12 311 222 107 642 Contra. Cr. July Aug By Insurance By Ditto - 55 97 152 10 15 Contra. Cr. Aug. 31 By Merchandise S99 Contra. Cr. Aug. 31 By Merchandise 611 226 LEDGER. (12) John Pan ton, London. Dr. 1825 Aug. Sep. To Sugar on Commission To Ship Minerva - - - 8 12 246 56 SOS Dennison ^ Son, London. Dr. Aug. 10 To Sugar on Commission 777 Edward Hemming, London. Dr. Aug. 15 To Sugar on Commission 536 19 10 Balance. Dr. Sep. 30 To Sundries 16 19746 12 (12) LEDGER. 227 Contra. Cr. 1825 Sep 30 By Balance 16 £ 303 Contra. Cr. Sep. 30 By Balance 16 777 Contra. Cr. Sep. 30 By Balance 16 536 19 10 Contra. Cr. Sep. 30 By Sundries 16 19746 12 q2 END OF LEDGER D. 229 APPENDIX : CONTAINING, I. QUERIES, with their ANSWERS, on Bills and Merchants' Accounts. 1. JVkat is meant hy a Receipt ? Ans. A Receipt is a written acknowledgement of having a sum of money, or a bill, in settlement of an Account. 2. What is meant hy a Bill ? Am, A Bill is a written obligation to pay a certain sum at a specified time. 3. Hoxa many kinds of Bills are there f Ans, Two : Inland and Foreign Bills. 4. What is an Inland Bill ? Ans, A Bill payable in the same Country where it is drawn. 5. Hoto are Inland Bills distinguished? Ans, Into Drafts and Promissory Notes ; the former containing an order, and the latter q. promise. 6. Hoiu many persons are generally concerned in an Inland Bill? Ans, Two : The Draiuer and Acceptor, 7. Who is meant by the Drawer ? Ans, The Person to whom the Bill is made payable, or who recovers the sum or value of the Bill. 8. Who is meant by the Acceptor ? Ans, The Person on whom it is drawn, and who pays the value when due. • 9. What is meant by accepting a Bill ? Ans. Signing your name under that of the Drawer, by which you bind your- self to pay it when due, as having received the value. 10. What is meant by indorsing a Bill? Ans. The Holder of a Bill, before he can pay it away, when it has been made payable to his order, must indorse it, (by writing his name on the back of it, across the paper or stamp, and against the end of the line) being in effect a promise to pay, (if the Bill be duly presented,) should the Acceptor, or any of the preceding Indorsers fail. 1 1 . Hoxu many kinds of Indorsations are there ? Ans. Two : Blank and Special Indorsements. 12. What is meant by a Blank or General Indorsement, Ans. Writing your name only on the back of the bilL 13. What is meant by a special indorsement ? Ans. When the Holder names the person to whom it is indorsed, the Bill is said to be specially indorsed. 230 QUERIES ON INLAND BILLS. 14. Which of the two Indorsements are to be preferred in remitting Bills? Ans. A special indorsement ; because, should the Bill fall into impro- per hands, the person's name to whom it is indorsed must be Forged before it can be negociated, and consequently fraud or imposition is prevented as much as possible. 15. When the Term of a Bill is expressed in Months, whether are Calendar or Lunar Months understood f Ans, Calendar Months are always understood. 16. Explain this by an Example, Ans. Suppose a Bill, dated on the 1st January, and made payable at one month after date, the term or Month expires on the 1st February ; and if a Bill be dated on 1st February at one month's date, the term expires on the last or 28th of February, in common years, but on the 29th in leap years. 17. What is understood by Days of Grace? Ans. Days of Grace are a certain number of days granted after the term of the Bill is expired. Three days are allowed in Great Britain. 18. Are Days of' Grace allowed on Bills drawn at sight? j^ns. No : They must be either paid, or protested, when presented. , 19. If a Bill Jails due on a Sunday, or any holiday at the Bank, when must it be paid? Ans. On Saturday, or the day before the holiday. 20. Is a Bill dated on Sunday considered valid? Ans. No : at least Bankers will not discount such, as it is presumed no busi- ness was transacted on that day. 21. What is meant by getting a Bill discounted ? Ans. To discount a Bill means to procure Cash for it before it falls due. 22. How is this done ? Ans. By indorsing the Bill to any person or banker, who pays the money, deducting Interest for the time it has to run. 23. When a Bill is made payable at so many Weeks after date, how is the time of Payment known ? Ans. By allowing seven days to, the week, and reckoning the number of days from the date of the Bill. 24". What is meant by protesting a Bill ? Ans. A Protest is an instrument in writing (taken by a notary public) in favour of the holder of the Bill, which is not duly accepted or paid. 25. When should a Bill be presented for payment ? Ans. Upon the last day of Grace, and within bank hours. 26. When ought a Bill to be protested, if not paid ? Ans. The evening of the day on which it falls due, or last day of grace. 27. What is the consequence should the Holder neglect to protest the Bill in due time ? Ans. He loses recourse against the Drawer and Indorsers, and can sue the Acceptor only for payment. 28. When ought Inland Bills not paid to be returned? Ans. Inland Bills may be kept fourteen days, but not longer. 29. How soon can payment of a Bill be inforced after it has been protested? Ans. A charge may be given immediately, and six days thereafter the Ac- ceptor or his property may be attached. 30. For what length of time is a Bill in force ? QUERIES ON FOREIGN BILLS. 231 Ans. A Bill continues effectual for six years, although not regularly pro- tested ; and forty years when duly protested. 31. What is meant hy a Foreign Bill ? Ans. It is a written order from a person in one country, addressed to another in a different country, requiring him to pay a certain sum to a third person, or to his order, and that either on demand, or at a specified time. • 32. What is understood by Usance ? Ans. Usance is the time of one, two, or three months after date, or after sight, according to the custom of the places between which the Exchanges run. 33. What is meant by double or treble usance ? Ans. Double or treble usance, is double or treble the usual time ; and half usance is half the time. 34. Hole many Persons are generally concerned in a Foreign Bill ? Ans. Sometimes three, but generally four ; viz. two at the place where the Bill is drawn, and two in the country where it is payable. 35. How are these PersoJis named ? Ans. The Drawer, Payee, Drawee, and Holder. 36. Who is meant by the t)RAWER? Ans, The person who makes out the Bill. 37. Who is meant by the Payee? Ans. The person to whose order, or in whose Javor the Bill is drawn. 38. Who is meant by the Drawee ? Ans. The person on whom the Bill is drawn. 39. Who is meant by the Holder of a Bill? Ans. The person to whom the Bill is indorsed, or in whose possession it remains at the time of payment. 40. Who is meant by the Indorser ? y^ns. The person who first writes his name on the back of the Bill. 41. Who is meant by the Indorsee? Ans. The person to whom the payee has indorsed the Bill. 42. What is meant by a Set of Exchange ? Ans. Two, three, or four bills drawn at the same time, of the same tenor nd date. 43. For ivhat purpose are these Bills so dratvn ? Ans. To be transmitted by different ships or posts, as a security against ac- cidents or delays ; and when one of them is accepted and paid, the others are null and void. 44. Hotv is the time of payment fixed on Bills after sight? Ans. The Acceptor marks the date of his acceptance, and the term of the Bill is computed from the time it was accepted, and not from the time it was drawn. 45. When ought Foreign Bills not paid to be returned to the party from ixihom they were received ? Ans. Foreign Bills should be returned in course of post, or at all events within three posts. 46. What is meant by a Bill of Parcels ? Ans. A Bill of Parcels is a note of the quantity and value of goods sold, and delivered by the Seller to the Purchaser, along with the goods. 232 QUERIES ON FOREIGN BILLS. 47. Hoxu is a Bill of Parcels made out P Ans. When it is a copy of the Goods sold, and delivered at the time of pur- chase, the expression is, Bought of A. B. 48. If a Bill of Parcels be for goods sold at a former period, hotv is it ex- pressed? Ans. We write, Mr. C. D. to A. B. ; or Mr C. D. to A. B. Dr, ; and place the dates (if more than one) on the margin. This is called a general account. 49. What is an Invoice ? Ans. An Invoice is an account of Goods generally sent off by sea, either in consequence of an order from the Person to whom they are sent, and at his risk, or consigned to him for sale, at the risk of the Shipper. 50. For what purpose is the clause, " Errors Excepted'* prefixed to Invoices, and other accounts ? Ans. That the Subscriber may have it in his power afterwards to correct errors, should any be discovered. 51. What is an jiccount Sales ? Ans. It is an account of goods sold on Commission, drawn out by the Agent, and sent to his employer, who made the consignment. 52. What is meant hy the Net Proceeds ? Ans. The Sum which remains after all charges attending the sales have been deducted, and which sum is due to the person from whom you received the consignment. 53. When the debts are not guaranteed by the agent, but are at the risk of the employer, hoxv should he make out the Account- Sales '^ Ans. In the Preamble it may be stated at whose risk the goods have been sold, or the agent should prefix to his signature, ^^ Bad debts excepted," otheV' wise, in strictness, he becomes accountable for the same. 54. When the Agent guarantees the debts, is it necessary to mention in the Ac- count-Sales the names of the Purchasers? Ans, It is not absolutely necessary, although in many instances it is done ; because it is a matter of indifference to his Employer to whom he sold the goods. 55. What is the duty of an Agent? Ans. An agent should procure the intelligence of the state of trade at the place where he resides ; of the quantity and quality of the goods in the market; their present prices, and the probability of their rising or falling; to pay exact obedience to the order of his Employers; to consult their interest in matters referred to his discretion ; to execute their business with all possible dispatch ; to be early in his intelligence ; correct in his Accounts ; and punc- tual in his correspondence. 56. What is meant by an Account- Current? Ans. An Account-Current is a state of our Mercantile Transactions with any person, drawn out in a plain circumstantial manner, arranged in the form of Dr, and Cr., and which exhibits the state of our affairs up to the date at which it is made out. 57 Does it require a knowledge of Book-keeping to understand the nature of an Account-current ? Ans. Yes : because the particulars are narrated as expressed in the Journal ; and where the collective term Sundries occurs in the Ledger, every reference is supplied. 58. How is interest calculated on Accounts- Current? QUERIES AND ANSWERS ON BOOK-KEEPING. 233 Ans. The usual method is to compute the interest on each sum respectively on the Dr. and Cr. sides of the account. 59. Is there not a 'preferable to this f Ans. Yes : the best method is to add and subtract the sums on the Dr. and Cr. sides as they become due, and then multiply the several balances by the days which intervened between each transaction, and if the balances be due at one time to you, and at another to your Correspondent, extend the products in separate columns, and compute the interest in the difference of the sums of these columns. 60. Why should a preference be given to this last method? Ans. Because it is not only more expeditious, by reducing the computation to one operation (by a common divisor), but this method exhibits the balance due to the respective parties at the different dates of the transactions. II. QUERIES, with their ANSWERS, on Book-keeping. 1 . What is BOOK-KEEPING ? Book-keeping is the Art of recording the Transactions of Persons in Trade, in such a manner as to exhibit a distinct view of the state of their Affairs. 2. What is meant by single entry ? Single Entry chiefly records Transactions on credit by simply debiting the Person who receives any thing, and crediting the Person who gives or delivers any tiling. Of course the Ledger affords to the Owner no other knowledge but the debts which are owing him, and what he owes to others. 3. W^hat is understood by double entry ? When Books are kept on the principles of Double Entry, every Sum or Transaction which is entered on the Dr. side of any Account, the same sum must be carried to the Cr. side of other Accounts. The Ledger exhibits in a concise point of view, not only the debts due to, or by you, as in Single Entry ; but also the amount of the Cash and Bills — the amount of the Pur- chases and Sales, the value of the Goods on hand, the Gain or Loss on each article, or on the whole. 4. Hovo many methods are there of Book-keeping as founded on distinct principles ? Ans. The Mode or Form of keeping Books, varies according to the peculiar nature of the Business ; but there are, strictly speaking, only two methods : namely, Book-keeping by Single and by Double Entry. 5. What information sho?dd a Merchanfs Books exhibit ? Ans. The information which a Merchant's Books exhibit, may be reduced to the three follovnng heads ? 1st. The Debts owing to him, and those which he owes to others. 2d. The Goods or other Property belonging to him at commencement or last balance ; the amount sold or otherwise disposed of; and the quantity and value still on hand. 6- What is the use of the Day-Book ? Ans. The Day- Book records the sales, or disposal of Goods ; and every other Transaction which cannot with propriety be entered in the Subsidiary Books, as Cash and Bills, &c. 7. How many Subsidiary Books are generally used in Business ? Ans. The number of Subsidiary Books, vary according to the nature of the 234 QUERIES AND ANSWERS ON BOOK-KEEPING. business ; but the following are the principal Books. — Invoice Book — Book of Shipments — Sales' Book — Cask) and Bill-Books. 8. What is the use of the Journal ? Ans. The Journal contains an arrangement of the whole transactions in each month, the Drs. and Crs. pointed out, that they may be easily posted into the Ledger. 9. What is the use of the Ledger ? Ans. The Ledger collects together transactions of the same, or similar kind, under their respective heads, and for this purpose it is divided into several Accounts, the Dr. and Cr. sides being opposite. 10. What is the General Rule for distinguishing Dr. and Cr. ? Ans. Every Article received, or Person accountable to you is Dr., and every Article sold or delivered, or Person to whom you are accountable is Cr. ; Or in other words : every thing received, or Person receiving any thing is Dr.y and every thing sold or delivered ; or Person delivering any thing is Cr. IL Hotx) is the first part of the Inventory journalized^ Ans. Sundries Drs. to Stock. Cash, for the balance on hand, — Goods or Property for the value ^ Inven- tory. — Bills Receivable, for accepted bills in your possession. — Personal Ac- counts, for the sums due to you in open Accounts. 12. Hotv is the second part of the Inventory Journalized ? Stock Dr. to Sundries. To Personal Accounts for the sums you owe in open Accounts ; and to Bills Payable for your acceptances not due or paid. I. How are the following Cash Transactions stated ? 13. When you receive payment of a Personal Account ? Ans. I debit Cash, and say To A. B., received of him, 14. When you pay a Personal Account? Ans. I credit Cash, and say By A. B., paid him. 15. When you receive Payment, and allow a Discount ? Ans. I debit Cash To A, B, for the full sum ; and then credit Cash, and say By Interest for Discount. 16. When you pay Money, and receive a Discount ? Ans. I credit Cash, By A. B. for the whole sum, and then debit Cash, and say, To Interest for discount. 17. When you receive Rents, Freights, 8^ c. from Accounts of Property ? Ans. I debit Cash, and say. To the Property, from which they arise. 18. When you receive money not connected, nuith any Account ? Ans. I debit Cash, To Profit and Loss, if it be a gain arising from the business: or, I debit Cash To Stock, if it be a sum which does not arise from the busi- ness, such as a legacy received, or a wager won. 19. When you pay Charges on Accounts of Property ? Ans I credit Cash, and say. By the Property, for repairs, or the like. 20. When you pay money not connected tvith any Account ? Ans. I credit Cash, By Charges, if any incidental charge. or By House Expenses, for private expenses. or By Profit and Loss, for Interest on Money borrowed. QUERIES AND ANSWERS ON BOOK-KEEPING. 235 II. i/oto are thejbllovoing Bill Transactions recorded. 21. When you receive a Bill in settlement of an Account f Ans. I make Bills Receivable Dr. to A. B. 22. When you grant or Accept a Bill ? Ans. I make the Person (A. B.) to whom granted, Dr. to Bills Payable, 23. When you receive payment of a Bill? Ans. I debit Cash, and say, To Bills Receivable. 24. When you pay or retire a Bill ? Ans. I credit Cash, and say, By Bills payable. 25. When you discount a Bill ? Ans. I first debit Cash, and say, To Bills receivable for the sum of the Bill, and then credit Cash, and say. By Interest for the discount. 26. When you indorse or pay avoay a Bill f Ans. I enter A.'^B. (to whom indorsed) Dr. to Bills Receivable. 27. When you draw and remit a Bill ? Ans. I may either make A. B. (to whom remitted) Dr. to C. D. on whom drawn ; or, Bills Receivable Dr. to C. D., and then A. B. Dr. to Bills Re- ceivable. 27. When you reneiv a Bill ? 1st. If the Bill be in my own hands ; I make A. B., the Acceptor, Dr. to Sundries; viz. To Bills Receivable, for the sum of the old Bill ; To Interest,* for the interest included in new Bill. — And then Bills Receivable Dr. to A. B. for the new Bill. Note. This entry supposes interest included in the new Bill. If the interest for the additional time be paid in Cash ; I debit Cash, and say, 2b Interest ; or, if no Interest is allowed, there is no necessity for any entry when the Bill was renewed. 2d. If I have indorsed or paid away the Bill ? Ans. I credit Cash, By A. B. when you pay his Bill, and then A. B. Dr. to Interest for the interest ; lastly, I enter Bills Receivable Dr. to A. B, for the new Bill. 28. When you protest a Bill ? 1st. If the Bill be in my own hands ; I enter A. B., from whom we received it Dr. to Bills Receivable ; and then I credit Cash, and say, By A. B. for expenses of protest. 2d. If I have paid away or remitted the Bill ; I credit Cash, By A. B.paid his bill. or, A. B. Dr. to Sundries ; viz. To CD. (to whom the bill was remitted) for the amount of the Bill, with charges of protest : and To Charges for additional expences paid by us. IV. How are the following Transactions in Purchasing Goods stated, 29. When you buy Goods for Cash ? Ans. I credit Cash, and say, By Goods, 30. When you buy Goods on Credit ? Ans. I make Goods Dr. to A. B. (the purchaser.) 31. When you purchase Goods on Bill? 23© QUERIES AND ANSWERS ON BOOK-KEEPING. Ans, First, I make Goods Dr. to A, B., and when I accept his draft; I make m Dr. to Bills Payable. 32. When you jpay freight, duty, or other charges on Goods ? Ans. I credit Cash : By Goods paid charges. V. Hotv are the Jbllo'voing Transactions in Selling Goods entered? 33. When you sell Goods for Cash ? Ans. I debit Cash, and say, To Goods, for the amount. 34. When you sell Goods on credit ? Ajis. I make A. B. (the buyer) Dr. to Goods. 35. When you sell Goods on Bill ? Ajis. First I make A. B. Dr. to Goods, and then when he accepts my draft on him. I enter Bills Receivable Dr. to A. B. 36. When you receive a Bounty or Dratvback on Goods exported ? ^ns. I make Debentures Dr. to Goods ; and when I receive payment, I debit Cash, and say. To Debentures ? VI. Ho'ware thejollotoing Transactions in Bartering or Exchanging Goods stated? 37. When the value received is exactly equal to the value delivered ? Ans. I make Goods received Dr. to Goods delivered. 38. When the values are unequal, and the difference to be settled at a future period? Ans. I first make Goods received Dr. to ^. B. for the amount, and then A. B, Dr. to Goods delivered for their amount. 39- When the values are unequal, and the difference settled by Cash or Bill at the time ? Ans. 1st. If the value received be greater, I enter Goods Dr. to A. B. for the amount ; then I credit Cash By A. B. for the sum paid him, and A. B. Dr. to Bills Payable for the amount of my Bill. 2dly. If the value delivered be greater, I make A. B. Dr. to Goods for the amount ; then I debit Cash To A, B. for the sum I received ; and Bills Receiveable Dr. to A. B. for his ac- ceptance. VII. Hovo are thefollomng Transactions in Shipping Goods entered ? 40. When you ship off Goods in consequence of orders ? Ans. I make A. B. Dr. to Sundries. 41. When you ship off Goods to your Agent as an adventure? Ans. I make Adventure to — Dr. to Sundries, viz. To Goods, To Charges, To Commission, and To Insurance, (if any.) 42. When the Agent renders an Account- Sales ? Ans. I enter Agent Dr. to Adventure to — for the P/'oceec?^, which, if greater than the outset charge, the difference is gain. 43. How is the Account closed ? Ans. I make Adventure to — Dr. to Profit and Loss ; but if there has been a loss, I reverse the entry. QUERIES AND ANSWERS ON BOOK-KEEPING. 237 VIII. Hoto are thefollo'vomg Transactions relating to Goods received to sell on Commission, stated ? 44. When you pay charges on Goods consigned f Ans. If Credit, Cash, and say, By Goods on Commission. 45. When you make a sale of these Goods f * Ans» If for Cashyldehit Cash To Goods on Commission \ or ifow credit. A, B, Dr. to Goods on Commission, 46. When you take any of these Goods to Account ? Ans. I make. Goods Dr. to Goods on Commission. 47. When y oil make out the Account- Sales? Ans. I enter, Goods on Commission Dr. to Sundries, viz. To Charges, I'o Commission, To Consigner for net Proceeds. IX. Hoiio are thefollovoing Transactions in making Insurances Journalized? 48. When you effect Insurance on your own Account on Goods outward ? Ans. If on Goods by way of Adventure, I make Adventure Dr. to the Broker or Assurance Company ; or, if on Goods ^ order of another person, I enter A. B. Dr. to Sundries, viz. To the Broker for prem. and policy ; To Commission for ^ ^ Cent. 49. When you effect Insurance on your otvn Account, on Goods homeward ? Ans. I enter Goods Dr. to the Broker or Company, for premium and policy. 50. When you effect Insurance on another Person's account ? Ans. I make the Person Dr. to the Insurance Company. 51. When a return of premium is claimed for convoy and arrival, for insurance on another person ? Ans. I make the Broker or Insurance Company Dr. to A. B., for whose account the insurance was made. 52. When a return of premium is claimed on your account for convoy and arrival ? Ans. I make the Broker or Insurance Dr, to the Goods on which the insur- ance was made. X. H&vii are the following Transactions in Bankruptcy stated f 53. When the failure is a total loss ? Ans. I make Profit and Loss Dr. to the Bankrupt, for the amount of my claim. 54. When you receive a Composition ? Ans. If in Cash, I debit Cash To the Bankrupt; or, if a Bill, Bills Receivable Dr. to Ditto ; then Profit and Loss Dr. to the Bankrupt for my loss. £5. Should the Bankrupt at any after period voluntarily pay the deficiency ? Ans, 1 debit Cash, To Profit and Loss for the sum received. 56. When the Loss by a Failure is known at the time of Balancing? Ans, I make Profit and Loss Dr. to the Bankrupt for the loss, and carry the difference to the Balance Account, which is the composition which I have to receive. 238 QUERIES AND ANSWERS ON BOOK-KEEPING. Queries on the Ledger Accounts and Balancing the Books. 1. Hovo many kinds of Accounts does the Ledger contain ? Ans. When the Books are kept by Double Entry, the Ledger contains the three following, viz. Personal, Real, and Nominal, Accounts. 2. What does Personal Accounts contain on the Dr. and Cr, sides? Ans. A. B., or any Person's account, contains on the Dr. sides the sums which he is accountable to me ; and on the Cr. those for which I am account- able to him. The balance shows how much is owing. 3. Hotv are Personal Accounts balanced? Ans. If the Dr. side be greatest, enter the difference of Balance, and if the Cr. be greatest, the contrary ; first crediting or debiting the account for the difference accordingly. 4. What does Bills Receivable Account contain on the Dr. and Cr, sideR ? Ans. Bills Receivable contains on the Dr. the Bills I receive for any debt owing me ; and on the Cr., those I receive payment of, or which I discount, or pay away. 5. Hotv is Bills Receivable Account balanced? Ans. By carrying the difference (which is the Bills on hand) to the Dr. of Balance, first crediting the account for the same. 6. Whatdoe^BiLLS Payable Account contain on the Cr. and Dr. sides? Ans. Bills Payable contains on the Cr., the Bills I accept ; and on the Dr., those I have paid. 7. How is Bills Payable Account balanced? Ans. By carrying the difference (which is the sum I owe in accepted Bills) to the Cr. of Balance, first debiting the account for that sum. 8. What is meant by the term Real Accounts ? Ans, Real Accounts are Accounts of any kind of Property, such as Cash^ Goods, Ships, Houses, Lands, or the like. 9. What does Cash contain on the Dr. and Cr. sides? Ans. Cash contains on the Dr. the sums of money I receive, and on the Cr. the money I pay. 10. Hoxu is the Cash Account balanced? Ans. By carrying the difference (which is the money on hand) to the Dr. of Balance. 11. What does Goods contain on the Dr. and Cr. ? Ans. Goods, or any other Property, contains on the Dr. the amount of the purchases, and all charges ; and on tlie Cr. the sales and other returns. 12. Hoti) is an Account of Goods balanced? Ans. 1st. When the Goods are all sold, by Profit and Loss, if the Cr. side be greater the difference is gain, which I carry to the Cr. of Profit and Loss account; but if the Dr. side be greater, the difference is loss, which I carry to the Dr. side o{ Profit and Loss. 2d. When the Goods are all on hand, I enter the amount or value on the Dr. side of Balance, first crediting the account for the same. 2>d. When part of the Goods is on hand, I ascertain the value of the pan unsold, which I enter on the Cr. side of the account, then the difference of the two sides will show the^am or loss, which I carry to the proper side of Profit and Loss, and the value on hand to the Dr. side of Balance. 13. What is meant by Nominal Accounts ? Ans. Nominal Accounts are those of Stock and Profit and Loss. QUERIES AND ANSWERS ON BOOK-KEEPING. 239 14. What does the Stock Account represent f Ans. Stock represents the Name of the Owner of the Books. 15. What does Stock contain on the Dr, and Cr. sides ? Ans. The Dr, sides contains the amount of my debts, and the Cr, the amount of my effects at last Balance, or at begining the Book-s. 16. What does the different of the ttvo sides of Stock shotu? Ans, My Stock or Capital at the period referred to. 17. What does the Profit and Loss Account on the Dr. and Cr, sides? Ans. Profit and Loss Account contains on the Dr. every article of loss or charge against the business ; and on the Cr, every article of gain or advantage arising from the business. 18. What does the difference of the Profit and Loss Account shop), tvhen the several items from closirig the Ledger Accounts are posted? Ans, The difference shews the Net Gain or Loss on the business. 19. To What Account is the difference o/' Profit and Loss carried, at Ba^ lancing ? Ans, To the Cr, of Stock, if there has been a gain on the Business ; but to the Dr. side if a loss. 20. What does Charges Account contain on each side f Ans. On the Dr. side are entered all Expenses paid or incurred on the business which do not belong to any particular account ; on the Cr. usually the sums we charge our Employers, for warehouse rent, postages or the like. 21. What does House Expenses contain on each side? Ans. On the Dr, side the sums of money, or the value of any thing else, taken for private use. If there be any entry on the Cr. it must be for a sum which was withdrawn, and not all expended at the time of balancing th^ Books. 22. What does the Commission Account contain on each side? Ans. On the Cr. side the sums I receive as an allowance for transacting business for others. If there is any entry on the Dr. it must be for commis- sion which I owe to others, foi^ instance. Bankers on whom we draw Bills charge a commission. 23. What does Interest Account contain on each side? Ans. On the Dr. side, all sums paid or incurred by me, for interest or dis- count on Bills or Accounts, in receiving a settlement ; on the Cr, side the sums for interest, or discount allowed me. 24. Hoijo are these Four last Accounts closed ? Ans. By carrying the difference to the proper side of the Profit and Loss Account 25. What does Balance Account contain on the Dr. and Cr. sides ; and what does the difference of this Account show ? Ans. Balance contains on the Dr. the Cash on hand, and other Property which belongs to me, and all debts due me ; the Cr. side contains the sums I owe in open Accounts, and in Bills accepted by me. The difference therefore shows my Net Capital at the time of Balancing. 26. Explain the reason xuhy the difference of Stock agrees "with the difference o/* Balance at closing the Books? Ans. The Stock Account contains on the Dr. the amount of my Debts, and on the Cr. side the amount of my Effects at opening the Books. The difference shows my Capital at that time, and when my net Profits are added, or Losses deducted from this sum, it will show my Capital at the time of Balancing. The Dr. side of the Balance Account contains my Effects, and the Cr. my 240 QUERIES AND ANSWERS ON BOOK-KEEPING. Debts at that time, and the difference must therefore also show my net Capital^ and botli will correspond if the Books be correct. 27. In a Set of Books balanced, tvhat two Accounts in the Ledger will sh cm) the Merchant's net Capital or deficiency ? Ans. The Stock and the Balance Accounts. We shall conclude these Queries on Book-keeping, by proposing the follow- ing, in Company Trade ; — 1. What is Partnership? Ans. Partnership is when two or more Persons unite in Trade, and agree to divide the Profits or sustain the Losses arising from the Business. 2. Hotv should the Books of a Copartnery be kept ? Ans. The Books of a Co-partnery should be kept as if they belonged to one Person only, but the plural number should be used, voe, us, and ours, instead of /, me, mine, and the like. 3. When the Capital to be employed in the Concern is fixed on'^ Ans. Sundries Drs. to Stock in Co. ; each Partner for his share or pro- portion which he means to advance. 4. When these Shares are paid in? Ans. Cash, or the Article Dr. to Sundries; to each Partner for the amount of his share. 5. Is one Account in general siifficientjbr each Partner, and how should it be kept f Ans. Yes : and it should be kept in the same manner as that of any neutral Person. 6. What should the Partners* Accounts exhibit? Ans. They should exhibit only the money paid, or any other articles received from the Concern for private use, together with the Interest on their respective shares. 7. How are these Accounts closed? Ans. The Balance is carried forward like any other personal Account, until the profits be divided, or an alteration in the shares takes place, or the term of the Co-partnery expire, previous to any of which these Accounts must be closed. 8. When the Capital is to be increased? Ans. The Entries are the same as at Commencement of the Business. 9. When the Capital is to be decreased ? Ans. Reverse these Entries. 10. When the Profits are to be divided among the Partners ? Ans. Enter Profit and Loss Dr. to each Partner. 11. When the Profits are to be applied to increase the Stock ? Ans. Profit and Loss Dr. to Stock in Co. 12. If there has been a Loss on the Business ? Ans. The above Entries are reversed. 13. When an alteration in the Shares takes place ? Alls. The Books must be previously Balanced, and the Partners' accounts closed. 14. What is the Stock Account to be considered? EXERCISES FOR PRACTICE. 241 Ans, Stock is to be considered as a Joint Account, to be divided at such periods, and in such proportions as are directed by the articles of Co-partnery. 15. What should the Stock Account exhibit f Ans. The Stock Account should always include the amount or value of the Company's Effects, both real and personal. III. EXERCISES for the Improvement of the Student. RECEIPTS. fVriie Receipts for the Jbllovoing Transactions. 1. I received on the 18th May, 1825, from Sheldon & Sons, ^241 • 3 in full, of Madder : required the form of a Receipt ? 2. Borrowed from Henry Sheldon, ,^150, on 10th June, which I am to repay on the 20th — What is the form of an acknowledgment for the same ? 3. On 13th June, I paid my Landlord half a year's rent of Warehouse, viz. ^25 — What is the form of a Receipt for the same? 4. April 15th, received from Henry Watt ^200, on Account of Richard Conder, New York — Required the form of a Receipt which I should give to H. Watt? 5. Received on the 8th April Thomas Allwood's Pro. Note, at 3 mo., ^ ^1 47 » 7 // 6 payable to my order, for Goods sold and delivered to him •• — W^hat is the form of the Receipt I should give him ? 6. A. B. delivers a Bill of Parcels, amounting to 6^135 « 10, to C. D., who pays it. A. B. acknowledges the same at the foot of the Account, and also gives C. D. a stamp Receipt — Required the form of each? PROMISSORY-NOTES AND DRAFTS. Draw out Bills for the folloiuing Transactions, date them from some Totvn, and xvhere the day of the month and year are not given, insert them. 1. Draw out a Note at 3 months, dated at the time of writing it : A. B. payable to C. D. for ^320. 2. At 30 days, E. F. to G. H. for ^17 » 12 „ 6. 3. At 21 days' sight, J. K. dated from Bristol, ^ ^75 « 16. 4. At 4 months, L. M. to N. O. for ^623 « 1 2 «/ 6, from Liverpool, payable in London. 5. Accommodated A. B. with my Note, for ^150, at 3 months, and took his Acceptance of the same date, term, and sum — Required the form of each Bill. 6. Settled my Account with C. D. which is ^130 » 10, and gave him my Note at 4 months, including interest — Required the form, and the sum for which the Bill was drawn? 7 I am desired to draw a Bill on John Howie & Co, dated 7th Jan., @ 2 mo. date, for s£\ 10^4 — Required the form ? R 242 EXERCISES FOR PRACTICE. 8. Edward Weston of Manchester, has drawn on me a Bill for ^370 „ 1, dated 3d Jan., at 31 days' date, payable to Wm. Jones — Required the form? 9. Drawn on Sheldon & Sons, a Bill in favor of James Fielding & Co. 14th March, at 3 months, ^ ^267 « 15 » 2 — Required the form of the Draft ? 10. Robert Runcorn & Co. of Manchester, have drawn in favor of T. Adair, dated 13th March, which I have accepted, and by agreement was to be allowed 5 ^ Cent discount. The amount of their Account is ^452 « 8 — Required the Form, and the sum for which the Bill was drawn? FOREIGN BILLS. 1. Richard Conder, of New York, has drawn a Bill on me for ^150 sterlingy dated 6th January, 1818, @ 50 days after sight, in favor of J. Hill, which I accepted on the 27th February — Required the form of the Bill when it becomes due — and how it should be recorded in the Books ? 2. I have received a Bill from Richard Conder, New York, drawn by him- self upon G. Kay, London, ^ ^400 sterlings dated 20th February, 1825, at 30 days' sight, and which was accepted 24th March — Required the form, and when due ; also the form of a Letter of Advice when duly accepted ? 3. I wish to know how the other two Bills of the Set of the Exchange of the same tenor and date as the above were drawn out? 4. Required the form of a Bill from New York on London, which was remit- ted me by Richard Conder, drawn by J. Blake, dated 16th April, 1818, at 40 days' sight, payable to Matthew Tindal upon Lees & Co. London, and accepted by them on 16th May, and when it becomes due? — N. B. The above Bill was specially indorsed by M. Tindal to Richard Conder, md by Conder to me — Required these forms, and how the different :;lauses of the Bill is to be recorded in the Bill-Book ? Required the proper Eiitriesjbr thejolloiuing Cases. BUYING AND SELLING. L'T sold to J. Howie & Co. on the 4th January, 1825, 75 bundles of Water Twist, amount ^116 « 12 « 6, payable in 3 months— Required the form of the Bill of Parcels, and the Journal Entry ? 2. On the 12th Feb. 1825, I sold to Thomas Allwood B6 bundles of Water Twist, amount ^86 u6 » Q; and 4 Casks of Dutch Madder, amount 6^^153 I, 19 « 9 ; at the same time I received in part ,^^50, and a Bill on J. Berry for ^^135 « 10, and he owes me the Balance — Required the form of the Bill of Parcels, giving him credit for the payments made ; and what are the proper Entries ? 3. Bought from Samuel Johnson, on the 14th February, 618 bundles Water Twist, which cost ^877 r 12— On the 16th March I accepted two Bills drawn by him on me, one payable to Burke & Moore dated 1st March, at 3 months, for ^^^203 « 6 „ 6; the other in favor of T. Austin, 14th March, at 3 months, ^£300 „ 16— Make out the Bill of Parcels, and give me credit for the two Bills, and Journalize the transaction ? EXERCISES FOR PRACTICE. 243 4. Exchanged 550lbs. Cotton yarn, amount ^250 » 10; for 200 pieces Cam- brics, value ^248 » 3 and received the balance in Cash — How should this be enJ;ered ? CASHv 1. I bought at Public Sale on the 5th January, 1825, 399lbs. Mule Twist, and paid the amount j^l24 « 10 — Required the form of a Bill of Parcels, and the necessary entry in the Books ? 2. On the 3d March, I sold for Cash, to Jos. Heron, 66lbs. Mule Twist, ^^21 /.. 9 « 6 — Make out a Bill of Parcels, and enter the transaction in the Books. 3. Having discounted at the Banker's Ord & Davis's Bill for ^212 « 6. I paid Discount ^2 « 3 « 8 — How am I to enter this transaction in the Cash-Book ? 4. Paid Duty, Freight, and Charges on 110 Casks Ashes, ^81 » 4 » 10 — What is the necessary entry ? 5. Received from William Fenton, in full of his account, net ^73 « 6 and allowed him ^3 « 17 « 6 of discount — How should this transaction be entered ? 6. I have received a Legacy of ^500 — What Accounts should I place it to ? 7. Lost my Pocket-Book, which contained in Bank Notes ^35 « 10, and hav- ing advertized it (but without success) which cost me 30/ — ^Vhat are the proper entries ? 8. I paid J. Fielding & Co, in full of their account, which was ^280 « 10 from which they allowed me a Discount of e^l4 « « 6. — How should this transaction be entered in the books ? 9. I paid my Acceptance to J. Fielding & Co. on Discount, for ,^156 » 7 « 8, and they allowed me 31 day's Discount, which is 13/3 How should I record the same in the Books ? 10. Ord & Davis having become insolvent, and as their acceptance to me ^ ^212 /, 6 is due this day, which I had discounted, I am under the neces- sity of lifting it — How am I to enter this transaction ? 11. Ord & Davis, who owe me ^212 « 6 have obtained a discharge for 17/6 '# s€, I have agreed to the same, and received a Dividend of 3/6 ^ s^y and have discharged them for 2/6 per s^ of loss — What are the proper entries ? 12. Received a year's Rent of my House at Windsor, ^50. 13. Paid John Wright for repairs to House at Windsor, ^21 « 14 — How should these entries be recorded ? 14. Paid my Clerk, J. Penman, three months salary, ^17 » 10; and 15. Paid my Landlord half-a-y ear's rent of Warehouse, ^25 — How should these entries be recorded ? 16 Received Cash for a Debenture ^ Isabella, ^56/, 2 —Wliat accounts should I place it to ? 17. Having received ^^200 from H. Watt, on account of Richard Conder, New York, required the necessary entry in the Cash-Book ? 18. Received one year's interest in Stock on Rope-work Co. ^22 « 10. 19. Received a Dividend at the Bank, half-a-y ear's interest on a^^2965 Stock in the 3 ^ Cents. ^40 « « 6 — To what Accounts should I enter these two transactions ? R 2 244^ EXERCISES FOR PRACTICE. 20. Settled with the Owners of the Ship Britannia, and received my One- lourth share of gain, .^^157 « 19 « 2. 21. Received Freights of my Ship Minerva, from Jamaica, ^897 « 11 « 2. 22. Paid Captain Noble, of the Minerva, in full, ^763 « 17 « 9. 23. Paid for repairs to Ship Minerva, ^220 u 10 — to what accounts should I place the last four transactions ? Required the proper Entries ^or the Jbllowing Transactions: 1st. Paid B. C.'s Draft on me at sight? 2d. Won of A. C. a wager of <^50, which is paid me ? 3d. Paid J. B. one year's interest on ^1000, borrowed on bond ? 4th. Received from E. K. one year's interest on ^500 lent on Bill, and also the principal ? 5th. Bought for Cash P. M.'s Bill on E. F. at 50 days' date, ^ ^^150, (w 20 days* Premium, and remitted it to G. H.? 6th. Sold for Cash my Draft on S. D. «& Co. ^ ^200, and allowed 25 days' discount ? 7th. Lifted my Acceptance to E. F. for j^400, by indorsing him G. J.'s Bill for ^250, at 1 month, and paid him the balance in Cash, with one month's interest on the indorsation ? SHIPMENTS. Having shipped Goods for Richard Conder, New York, for his account and risk, ^"'887 « 12 « 6, 1 paid Charges at shipping a£'4 » 1 2 » 6 ; my Commission ^9 « 5 // 4 ; and insured the amount with the London Assurance Co. a^^22 « 3 « 6 — What is the Journal entry, and the form of a Letter of Advice? GOODS ON CONSIGNMENT. 1. Richard Conder, New York, advises me to insure on his Account on 20 Bales Cotton, ^ the Fanny, Ker, Master, a^^650, which I have this day effected with the London Assurance Company, at 6 Guineas ^ Cent, to return 1 '^ Cent, if the Vessel arrives safe ; Policy 5/6 ^ Cent. a^42// 17«6; my Commission at ^ ^g*- Cent, is ^3 « 5 — Required the Journal entry, and Letter of Advice ? 2. The Fanny arrives safe with Convoy, and I charge the London Assurance Company for the return of Premium ; I also pay Duty, Freight, and other Charges at Landing — Required the Entries ? 3. I have sold the said Cotton to R. Runcorn & Co., and have made out an Account-Sales for R. Conder, and charged him for Warehouse Rent, In- terest, and Commission, and the Net Proceeds due him is — Required the entries ? 4. Consigned to James Forbes & Co. Dublin, 80 Planks Mahogany for sale which were consigned us by Waller & Co. from Jamaica. — Thomas Kil- gour, our Agent, has paid Charges at shipping, £\ „ 13 « 3: we receive Account Sales from J. Forbes & Co. of the same, which amount to a^285 « 11 « 6 Irish, at lOj ^ Cent, exchange: we charge W^aller & Co. EXERCISES FOR PRACTICE. .245 2^ ^ Cent, on the sales for our Commission — Required the proper entries for these Transactions? INSURANCES. Required the Proper Journal Entries for the Jbllovoing Transactions : 1st. B. C has insured for me on Goods from Hamburgh, ^2000, at 6 Guineas ^ Cent. Policy 5/6 ^ Cent.? 2d. A. B. has paid average Loss on the Goods underwrote by him, at £2 « 11 ^ Cent, after deducting his premium ? 3d. Insured with the London Assurance Company on my ship Minerva, from Jamaica to London, ^2750, at 4 Guineas f^ Cent, and Policy d^7 « 14. 4th. Underwrote for D. E. on a^500, on Goods ^ the Mars, from Grenada, at 7 Guineas f^ Cent, and Policy 5/6 ^ Cent. ? 5th. The Vessel is Lost, and I have settled with D. E. for the sum under- written by me, by granting him my Acceptance at 3 months, deducting the Premium ? 6th. Insured with the London Assurance Company on account of Waller & Co. Jamaica, ^1000, on Rum and Sugar, ^ the Minerva, Noble, from Ja- maica, to London, at 9 Guineas ^ Cent. Policy 5/6 f^ Cent, to return 4 ^ Cent, for Convoy and Arrival ? 7th. The Minerva has arrived safe, I therefore charge the London Assurance Company for the return of Premium ? JOINT- ADVENTURES. 1. Consigned to William Bancroft, St. Kitt's, to sell on account of Thomas Allwood and myself, each one-half concerned, sundry Goods, amount ^691 // 17 H 4 ; paid Charges at shipping, ^8 « 3 « 6, my Commission is ^21 « 7, and I have insured on a^770 with the London Assurance Com- pany ^50 H 14 11 2 — WTiat is the Journal Entry ? 2. William Bancroft writes me that the Goods arrived safe, and that he has sold them as ^ Account Sales, enclosed amount ^966 « 9 : he has at same time remitted me a Bill on M. Parry, for ^350 « 5. — Required the proper entries to close the Adventure, and a division of the Profits ? 3. Suppose he had shipped me 40 Puncheons of Rum, value .§^600 in part of the Sales, and I had insured the same with the London Assurance Com- pany, at 9 Guineas f^ Cent. Policy 33/ to return 4 ^ Cent, for Convoy and Arrival. — Required the Entries ? 4. Suppose further that the Vessel arrives with Convoy, and that I charge the London Assurance Company for the return of Premium at 4 ^ Cent., that I pay Customs, Freight, and Charges during the Sale ^149 « 14 » 6: I sell 30 Puncheons of the Rum to E. and B. at 2 Months, ^667, and 10 Puncheons to T. A. at 3 months, ^220: I charge 2^ ^ Cent. Commis- sion on the Sales. — Required the entries, and how Allwood's Account would have stood. R 3 246 EXERCISES FOR PRACTICE. The following EXERCISES are subjoined as a farther trial of the young Ac- countant's skill in arranging a solution of them in a neat and methodical form. 1. A Merchant's Effects on the 1st January amounted to ^4085 « 12 « 9, and his Debts to ^1 106 « 2 « 2 : on the 23d Feb. he received a Legacy of ,^500. At Balancing his Books on the 31st March, the sum of the debit side of his Profit & Loss Account was a^"132 « 18 « 4, and the Credit side ^311 « 9« 10. The Dr. side of his Balance Account was ^6402 « 5, and the Cr, side ^2744 « 2 » 11. — Required his Stock at the beginning of the year ; his gain or loss since that period, and the Amount of his present Capital ? 2. A, a traveller for a Mercantile House in Glasgow, being short of Cash, when at Manchester, borrows from B. ^10, and in London ^10 from C. On his return to Glasgow, he finds he has expended of these sums ,^15 ./ 12 ,/ 6, and the balance he retained for his own use. How is this transaction stated, either as a Cash-Book or a Journal Entry ? 3. There are three Partners in a Manufacturing Concern. A. holds -^^ ; B. \; and C. ^. A. becomes insolvent, by which there is a loss of ££593// 10// 10 sustained by the other two Partners — Required what proportion of this sum falls to be paid by each of the solvent Partners ; and also the neces- sary entries in the Journal, to bring the same to the proper Accounts in the Ledger? 4. A Merchant in looking over his Books, finds the state of his affairs to be as follows. His Effects on the 1st January amounted to .3^6886 // 19 // 10, and his Debts, in open Accounts, to ^^2262 ,/ 5