UC-NRLF $C EDI SDl ir^f [ess l^ookkeepi p;aap ( Q AND ROGERS SERIES GIFT OF Dr. William H. Ivie Digitized by the Internet Archive in 2008 with funding from IVIicrosoft Corporation http://www.archive.org/details/firstlessonsinboOOwillrich ^JVILLIAMS & ROGERS SERIES FIEST LESS^ONS I2S- BOOK-KEEPING BY SllSTGLE AND DOUBLE ElsTTRT WITH AN EXERCISE IK Business Pkactice FOR USE IK ALL SCHOOLS IK WHICH THE COMMERCIAL BRANCHES ARE TAUGHT. ESPECIALLY DESIGKED FOR USE IK District and Graded Schools AKD FOR EVENIXG- CLASSES IX BUSINESS COLLEGES. REAaSED AND ENLARGED. NEW YORK •:• CINCINNATI •:• CHICAGO AMERICAN BOOK COMPANY Entered according to Act of Congress, in the year 1889, By WILLIAMS & ROGERS, In the oflBce of the Librarian of Congress, at Washington, D. C. Copyright, 1892, By WILLIAMS & ROGERS. W. p. II GIFT '^. PRErACE. This book was written in response to numerous requests which the publishers received from teachers in district and graded schools for a text-book on book-keeping, especially adapted to such schools, and constructed on the plan of their Complete Book-keeping. The features of the Complete Book-keeping which have commended that work so strongly to teacliers, and which have probably contributed most largely to its extraordinary popularity and introduction, are the minute explanations of every step to be taken by the pupil; the system of illustrative examples employed, enabling the pupil to perform the work himself, thus cultivating self-reliance; the careful and systematic grading of the exer- cises; and the script plates with which the sets are illustrated. All of the features described above have been incorporated in this work, and it is believed that the pupils for whom the book is designed will have no difficulty in securing, from the exercises given, complete knowledge of the principles of book-keeping, as well as important aid in the direction of obtaining a good hand-writmg, and that practically independent of the teacher. The set on Business Practice will, it is believed, add greatly to the value of the work, and meet the demand for that kind of instruction in the classes for which the book is designed. fSi7S7S77 CONTENTS. PAGE. General Definitions 5 Single Entry. 5 Explanation of books required 5 Definition of terms ..- 6 General Rules 7 The Cash Book explained 8 Cash Book illustrated 8-9 First Exercise 9 Balancing the Cash Book 10 Second Exercise. 11 Journal explained 12 Third Exercise 12 Journal illustrated 13 Fourth Exercise 14 Journal and Cash Book 18 Fifth Exercise 18 Journal, Cash Book, and Ledger. 21 Sixth Exercise 21 Instructions for Posting 22 Ledger illustrated. 26 Seventh Exercise. 29 Illustration of Proprietor's account closed 32 Eighth Exercise 32 Promissory Notes explained and illustrated 35 Ninth Exercise 35 Bill Book explained 36 Bill Book illustrated -..38-89 Invoices explained 38 PAGE. Invoice illustrated _ 39 Tenth Exercise 41 Eleventh Exercise 44 Partnership busir^ess. 44 Twelfth Exercise 47 Explanation of Bank Account 49 Thirteenth Exercise 49 Double Entry 53 Explanation of Books required 53 General Rules. 54 Illustration of Check Book. 55 Illustration of Double Entry Journal 56 Fourteenth Exercise 57 Trial Balance explained and illustrated 62-63 Losses and Gains 63 Closing the Ledger explained 65 Fifteenth Exercise 66 Changing from Single to Double Entry ex- plained - 68 Sixteenth Exercise. 69 Seventeenth Exercise 72 Cash Book, Double Entry, illustrated 72-73 Drafts explained 75 Eighteenth Exercise 75 Drafts illustrated 76 Abbreviations and Contractions 80 Appendix i Business Practice i Book-Keeping BOOK-KEEPING ' is a record of the facts pertaining to business transactions. ' By the term business transactions is meant dealings between two or more persons. *The object of keeping books is to enable the proprietor to ascertain, at any time, with certainty and ease, any particulars regarding his business. * There are two methods of book-keeping in general use, termed ^Single Entry and 'Double Entry. ^ In Single Entry Book-keeping only personal accounts are kept in the Ledger. ' In Double Entry Book-keeping accounts are kept in the Ledger with things as well as persons. Since only Single Entry Book-keeping will be treated in this connection, further explanation of Double Entry will be deferred until Single Entry has been mastered. Single Entry Book-Keeping. Books Required. •The books to be used depend much upon the nature and extent of the business. "The main books usually employed are Cash Book, Bill Book, Journal, and Ledger. "Other books, as. Sales Book, Order Book, Shipping Book, etc., are sometimes used. " The Cash Book contains the receipts and payments of cash. " The difference between the sum of the receipts of cash and the sum of the payments of cash will show at any time thye amount of cash on hand. {See pages 8 and 9 for form of Cash Book.) "The Journal contains all debits and credits to persons arising from transactions with such persons. '^Such debits and credits should be accompanied by sufficiently clear and complete explanations of the transactions giving rise to the entries that anybody, whether familiar with the circumstances or not, would readily understand all important facts regard- ing them. ( See page 13 for form of Journal. ) A clear and complete history of every important transaction should be preserved in some form. This is especially true in all matters affecting the interests of other persons. There are several ways of preserving such a history. '* One is to record every important transaction in a book, usually called a Day Book, or Blotter; " another is by entering all of the particulars of the transaction on a memorandum slip, and, after the proper entry has been made from it, filing it away for future reference; and '* still another is to preserve copies of all letters and invoices, in an impression book. The memoranda of transactions given on page 10, is in the nature of a Day Book, and is regarded a suflSicient illustration of that book and its use. ^* The Bill Book is designed to contain a record of all of our written obligations issued to other persons, and *" of those in our possession made by other persons. *^ Such obligations in our favor are called Bills Receivable, and ** ours in favor of others are called Bills Payable. 5 ^ SINGLE ENTBY BOOK-KEEPING. "The Ledger is the business man's account book. " In this book the debits and credits of the Journal are grouped under their proper titles — the names of the persons. "Such collections of debits and credits are called Accounts, and "the process of grouping is called Posting, {See page 26 for form of Ledger. ) DEFiisriTio]:^ or Teems. " The term Debit, which is abbreviated Dr., indicates either that "the person with whose name it is connected has become indebted to us, or that '' we have got out of his debt. " The term Credit, which is abbreviated Cr., indicates that » we have become indebted to the person with whose name it is connected, or that " that person has got out of our debt. "A Resource is any kind of property belonging to the business; as, '"an account owing to us, another person's note in our favor, cash on hand or in bank, real estate, stocks, bonds, mortgages, goods in stock, furniture and fixtures, unpaid interest in our favor — in short, anything of value in our possession or belonging to us, or a debt due us. "A Liability is a debt of any kind owing by us; as, " our note outstanding, or a debt due another person. " InTestment, as a book-keeping term, is applied to the capital put into a business. "The investment maybe composed of cash entirely, or "it may be made up of various kinds of property; as, ^'amounts due from others, real estate, or anything of value. "The Present Worth of the proprietor is the net value of his interest in the business at any stated period. °* The amount of the present worth may be ascertained at any time by finding the difference between the sum of the resources and the sum of the liabilities. " If the sum of the resources exceeds the sum of the liabilities, the difference shows that the proprietor has property in the business to that amount; and *" if the sum of the liabilities exceeds the sum of the resources the difference shows that the business is insolvent, — in other words, that there is not sufficient property in the business to pay the debts of the business. *^ The Net Gain is the excess of the present worth over the net investment. *' The Net Loss is the excess of the net investment over the present worth. *' The net gain which has been realized, or the net loss which has been sustained, during the progress of the business, may therefore be ascertained by finding the difference between the investment and the present worth. " If the present worth exceeds the investment, the difference shows that the proprietor is now worth more in the business than he was at the outset, or at the last closing of the books, which would of course indicate a gain; while, *'if the present worth is less than the investment, it will be apparent that the difference will show that the interest of the proprietor has diminished, or that he has sustained a loss. ** Cash is the term applied to specie, government bills, bank bills, bank checks, sight drafts, postal notes, money orders, in fact all paper that is payable in money on demand. "Bills Receivable is the term applied to the negotiable written promises of other parties, payable at a future time, which come into our possession; as, "notes and accepted drafts. " Bills Payable is the term applied to our negotiable written obligations issued to other parties, and payable at a future time; as, ^° notes and accepted drafts. SINGLE ENTRY BOOK-KEEPING. 7 General Rules for Sijstgle E^trt. Rule 1. — "'Tlie Propeietor is Credited '■For the sum of his resources at the beginning of business; ^For subsequent investments in the business; and "For his net gain, if any, when the booJcs are closed. Rule 2,— '''The Proprietor is Debited "^For the sum of his liabilities at the beginning of business; ^For such sums as he may draw out of the business from time to time; and "For his net loss, when the books are closed, if there has been a loss. Rnle 3. — "Persons are Debited in the Journal "When they get into our debt; and ^ When lue get out of their debt, in full or in part. Rule 4. — "Persons are Credited in the Journal ■ When we get into their debt ; and ^When they get out of our debt, in full or in part. Rule 5. — " Cash is Debited in the Cash Booh when it is received into the business from whatever source. Rule ft. — " Cash is Credited in the Cash Book when it is paid out for whatever purpose. Rule 7. — "Bills Receivable are entered in the Bill Book as soon as received, with all of the particulars regarding them ; as, the date of the note or acceptance, the date on which it will fall due, the name of the party tuho will have to pay it, the name of the endorser, if any, the name of the place where it is payable, and the amount ; and " when it is paid it is so indicated in the proper column in the Bill Book. Rule 8. — '' Bills Payable are entered in the Bill Book as soon as issued, with all the facts regarding them; as, the date, the date of maturity i the name of the payee, the name of the place where payable, and the amount; and *" when paid it is so indicated in the proper column. Sometimes a Cash account, a Merchandise account, or an Expense account is kept in the Single Entry Ledger, and sometimes all of these are kept; but when such is the case it ceases to be Single Entry, as a purely Single Entry Ledger contains only personal accounts. To the extent that a Single Entry Ledger contains other than personal accounts it approaches Double Entry, but it still will lack many of the valuable qualities of the Double Entry method. QUESTIOI^S. ^ What is Book-keeping? * Wha^ is meant by the term ^' business transaction "? * What is the object of keeping books? * How' many methods of book-keeping are there in general use? ^-* What are they called? " What accounts are kept in the Ledger in Single Entry? * What, in Double Entry? 'Upon what do the books to be used in a business depend? ^^ What are the main books usually employed? ^^ What other books are sometimes used? '* What does the Cash Book confain? ^' What will the difference between the sum of the receipts and payments of cash show at any time ? ^ * What does the Journal contain ? ^ ^ How much explanation of the transaction should accompany the Journal entry? ^ «-^ * Describe three ways by which this may be done. ''-^'' What does the Bill Book contain? ''^-"^ What are these obligations called? **What does the Ledger contain? ^^What is an account? *' What is meant by posting? ^^ What is meant by the term debit? ** What, by the terra credit? *» What is a Resource? »° Give an example. *^ What is a Liability? "Give an example. "What is meant by the term Investment ? » «-» « Of what may it consist ? » ^ Define 7 J2,/ BINGLE ENTRY BOOK-KEEPING. f, /ftP- // ' ^"^^^^^^ Lyc:z^ J2. /W^ / fO" / o o o / 6o J\^6 V& ^Ocfo cfo y/^/ y/^/ Z^ Z£ 77A-^-^ Present Worth. " How may the amount of the present worth be found ? " If the sum of the resources exceeds the sum of the liabilities, what does the difference show? "When is the proprietor said to be insolvent ? " What is meant by Net Gain ? " By Net Loss ? " How may either be ascertained ? " How may the amount of the net gain be determined ? "How, the net loss? " To what is the term cash applied ? *^"" What is meant by the term Bills Keceivable ? *'"*'' What, by the term Bills Payable ? " For what is the proprietor credited? "For what debited? " When are persons debited ? " When credited? "When is cash debited ? " When credited ? """ When, where, and how are Bills Receivable entered ? •"" What record is made of Bills Payable when they are issued ? The Cash B©0b:. The Cash Book, as before stated, contains a record of the receipts and payments of cash. "There are two methods of keeping a Cash Book in common use. "One provides for employing a book having a page with double money columns, the first or left-hand SINGLE ENTRY BOOK-KEEPING. y. ^f^- 0C CTttU^ o Vr. /OO ^y -Sj /OO ^k /OO cfj ^ \^:^^-tr^y7-zy cToo /oc /ci' /r cfc? /c CTT^ ^''^^Z-l^iyT^l^ ^^^ /^o-^ Jff c^O rZcf :^J //&/ /<>■ column for the receipts of cash, and the second or right-hand column for the payments of cash; and "the other method pj-ovides for using opposite pages in the Cash Book, the left- hand page for the receipts of cash, and the right-hand page for the payments of cash. Since errors are more liable to occur when both receipts and payments are entered in adjoining colomnB, the use of opposite pages is more common, and is here recommended. FlEST EXEEOISE. You will now arrange the receipts and payments of cash which are given in the following series of transactions, in your Cash Book, as shown in the engraved " Cash Book," illustrated on pages 8 and 9. When this work has been performed, you will observe that the Cash Book contains all of the information regarding the transactions given that that book is designed to exhibit, as explained on page 5, viz. : the receipts of cash on the left-hand or debit side, and the payments of cash on the right-hand or credit side; and the balance, or difference between the sides, which is the amount of cash on hand, may also be shown. IQ SINGLE ENTRY BOOK-KEEPINQ. SERIES OF TRA.KSACTIONS. Jantjakt 1, 190-. 1. Commenced business this day, investing as capital $1000, cash. {Place this on the left- hand or debit side of the Cash Booh. See Rule 5, page 7, and illustration on page 8.) 2. Bought a Horse and Wagon for use of the business, for which I paid $100 and $75, respectively. {Place these items on the right-hand or credit side of the Cash Book. See Rule 6, page 7, and illustration on page 9.) 3. Bought 20 one-eighth barrel sacks of Flour, at 65 cents per sack, for which I paid cash, $13. {Cr. side of Cash Booh. See Rule 6, page 7, and illustration, page 9.) 5. Sold, foi cash, 2 sacks of Flour, at 80 cents per sack, $1.60. {Dr. side of Cash Booh.) 7. Sold, for cash, 6 sacks of Flour, at 82|- cents per sack, $4.95. {Dr. side of Cash Booh.) 9. Bought 50 bushels of Oats, at 37 cents per bushel, for which I paid cash, $18.50. {Cr. side of Cash Booh.) 10. Bought, for cash, 100 bushels of Corn, at 55 cents per bushel, $55. {Cr. side of Cash Book.) 13. Sold, for cash, 20 bushels of Oats, at 42 cents per bushel, $8.40. {Dr. side of Cash Booh.) 14. Bought, for cash, 2 tons of Coal, at $5 per ton, for use of store. {Cr. side of Cash Booh.) 16, Sold, for cash, 5 sacks of Flour, at 85 cents per sack, $4.25. {Dr. side of Cash Booh.) 19. Sold, for cash, 25 bushels of Corn, at 60 cents per bushel, 815. {Dr. side of Cash Booh.) 20. Bought, for cash, 100 sacks of Flour, at 62 cents per sack, $62. {Mahe the remaining entries, if possible, without referring to the illustratiofis.) 21. Sold, for cash, 35 sacks of Flour, at 80 cents per sack, $28. 24. Sold, for cash, 25 bushels of Oats, at 43 cents, $10. 75. 25. Sold, for cash, 30 bushels of Corn, at 62 cents, $18.60. 27. Sold, for cash, 4 sacks of Flpur, at 80 cents, $3.20. 28. Bought, for cash, 100 bushels of Corn, at 55 cents, $55. 30. Sold, for cash, 75 bushels of Corn, at 62 cents, $46.50. 31. Sold, for cash, 25 sacks of Flour, at 82 cents, $20.50. BALA]sroi:^G the Cash Book It will now be clear to you, that "the left-hand, or debit side of the Cash Book, contains a record of all of the cash received, and "the right-hand, or credit side, a record of all of the cash paid out; and it will be equally apparent that *°the difference between the sums of the sides, $773.25, must show the amount of cash on hand January 31st. You will now " close, or balance, the Cash Book, as the operation is called, as follows^ "Draw one red line across the^rs^ money column on the left-hand page of the book, on the same line with the last item entered {see illustration on page 8) ; " next add the items in this column, and place their sum, $1161.75, in the second money column on the next line below the one on which the last item was entered {see illustration on page 8). {Before reading further perform the worh precisely as instructed above.) '"Now, draw another red line across the first money column on the right-hand page, on the same line with the last item entered {see illustration on page 9); " next, add the items in this column and place their sum, $388.50, in the second money column, on the next line below the one on which the last item was entered {see illustration on page 9); "then on the next line on the right-hand puge enter in the date column, the date of balancing the book, 31; in the explanation column, the explanation. Balance on hand; and in the right-hand money column, the balance,' $773,25, SINGLE ENTBT BOOK-KEEPINQ. H which is the difference between the sum of the receipts and the sum of the payments of cash for the month {see illustration on page 9). " Next, on the left-hand page, rule one red line across the second money column, on the same line with the last item entered {see page 8) ; and '* one line below this rule two red lines, one directly on the blue line, and the other just far enough below it so that the two lines will not run together, extending the lines across the date column, and the two money columns, which will be omitting the explanation column ■ {see illustration, page 8). " Next rule single and double red lines on the right-hand page, in the same manner, directly opposite those on the left-hand page; 'Hhen write the footings between the single and double red lines on each page {see illustrations, pages 8 and 9)'. If this business were to be continued, the balance of cash, $773.25, should be brought below the rulings on the Dr. side under date of February, as illustrated on pages 8 and 9. Secoi^d Exercise. It is believed that you will now be able to enter properly the items of cash contained in the following transactions with no further aid than is afforded by reference to the instructions and illustrations given in the preceding exercise. You will therefore write at the top of each of the next two pages of your Cash Book the month and year, "February, 189-," and place all of the receipts of cash on the left-hand, or debit side, and all of the payments of cash on the right-hand, or credit side. It is suggested that you rule a Cash Book on paper, and enter these items upon it as they should appear in your book. This will prevent possible errors and enable you to give your Cash Book a better appearance than it would probably have otherwise. SERIES OF TRANSACTIONS. February, 190-, 1. Commenced business this day, investing cash, $1500. 2. Bought, for cash, 30 one-eighth barrel sacks of Flour, at 60^ per sack, $18. 3. Sold, for cash, 12 sacks of Flour, at 70^, $8.40. 4. Sold, for cash, 10 sacks of Flour, at 65^, $6.50. 5. Bought, for cash, 125 one-eighth barrel sacks of Flour, at 585ZS, $72.50. 7. Sold, for cash, 30 sacks of Flour, at 65^, $19.50.^ 8. Sold, for cash, 42 sacks of Flour, at 64^, $26.88. 9. Sold, for cash, 16 sacks of Flour, at 65^5, $10.40. 11. Bought, for cash, 100 one-eighth barrel sacks of Flour, at 59^, $59. 12. Sold, for cash, 30 sacks of Flour, at 65^, $19.50. 14. Sold, for cash, 18 sacks of Flour, at 66?!, $11.88. 16. Sold, for cash, 25 sacks of Flour, at 65^, $16.25. 19. Bought, for cash, 300 bushels of Com, at 55^, $165. 21. Sold, for cash, 150 bushels of Corn, at 60^, $90. 23. Sold, for cash, 15 sacks of Flour, at 64^, $9.60. 25. Sold, for cash, 50 bushels of Corn, at 62^, $31. 27. Bought, for cash, 100 one-eighth barrel sacks of Flour, at 55^, $55. 29. Bought, for cash, 250 bushels of Corn, at 54^, $135. After the foregoing items have been entered, the Cash Book should be ruled up and the footings brought down as explained under "Balancing the Cash Book" on page 10. The footing of the debit side should be $1749.91, and of the credit side, $504.50, and the differ- ence (which should be placed on the right-hand side in red ink), should be $1245.41. 12 8IN0LE ENTRY BOOKKEEPING. The JouRJsrAL. The Journal^ as stated on page 5, is designed to contain all debits and credits to persons arising from transactions with such persons; and such debits and credits should be accompanied by clear and complete explanations of the transactions. To avoid errors it is of the utmost importance that the entries be made immediately after the transaction occurs; indeed, it is a matter of practice with careful book-keepers never to receipt a bill, pay an account, or complete any important transaction until a record of some kind has been made. Third Exercise. You will now make the Journal entries required in the following transactions, which should correspond with the Journal given on page 13. The Cash Book entries will be omitted. SERIES OF TRANSACTION'S. March, 190-, 1. Commenced business this day with a cash capital of llOOO. [See Rule 1, part a, on page 7, and also the form of the entry in the Journal, illustrated on page 13.) 2. Bought of John Snow, on account at 10 days, 100 barrels of Flour, at $5:25, $525. {See Rule 4, part a, page 7, and also the proper entry in the Journal, illustrated on page 13.) 3. Sold Hiram J. Rice, on account at 5 days, 50 barrels of Flour, at $6, $300. {See Rule 3, part a, page 7, and the entry for March S in the Journal, illustrated on page 13.) 4. Bought of S. M. Baker, on account at 10 days, 250 barrels of Apples, at $1.50, $375. {Rule Jf, 'part a, page 7; Journal illustrated, page 13.) . 6. Bought of Nathan Goodman, a Horse and Wagon for the use of the business, for which I have agreed to pay $150 on the 15th inst. ( Rule J^, part a, page 7; Journal illus- trated, page 13.) 7. Sold D. W. Fenner, on account at 10 days, 50 barrels of Apples, at $1.75, $87.50. {Rule 3, part a, page 7; Journal illustrated, page 13.) 8. Received, cash, of Hiram J. Rice for the 50 barrels of Apples purchased on the 3rd inst., $300. {Rule Jf, part h, page 7; illustration page 13.) 9. Bought of C. G, Weaver, on account at 30 days, 50 bushels of Oats, at 40 cents, $20, and 35 bushels of Corn, at 62 cents, $21.70; total, $41.70. {Rtile J^, part a, page 7; illustration, page 13. ) 12. Paid John Snow, cash, for the 100 barrels of Flour purchased of him on the 2nd inst., $525. {Rule 3, part h.) li. Paid S. M. Baker the amount due him for bill of the 4th inst., in cash, $375. 15. Paid Nathan Goodman, cash, for the Horse and Wagon purchased on the 6th inst., $150. 17. Received, cash, of D. W. Fenner, in full of his purchase of the 7th inst., $87.50. {Rule Jf, part h.) SINGLE ENTRY BOOK-KEEPING. 13 ^/, /f^- 6 i 1 • /ooo /cTo j&-. fo ^/J2 c fo y-2-^ 18 SINGLE ENTRY BOOK-KEEPING. gy^ /f. (P- {/. ^rit^U^T^^ .Jz^ (Tf^ ^U^ ^.^^^^.i^ JOURlSrAL KWD CASH BOOK In the following exercise the Journal and Cash Book are both to be used. You will make the entries in these books as directed in the General Eules for Single Entry on page 5, and as illustrated on pages 17, 18, and 19. Consult the Eules, when so directed, in order that they may become so firmly fixed in ypur mind as to make it unnecessary to refer to them hereafter. Fifth Exercise. SERIES OE TRANSACTIONS. May, 190- 1. Commenced business this day with a cash capital of $2500. {Journal and Cash Book. See Rule 1, part a, page 7, Rule 6, page 7, and also illustrations on pages 17 and 18.) 2. Bought of Gardner Allen, Jr., on account at 10 days, 200 bbls. of Flour, at 15.50, 11100. {Journal. See Rule ^, part a, page 7, and illustration on page 17.) 3. Bought of Henry "Walker, for cash, 100 bbls. of Salt, at $1, $100. {OasTi Book. Rule 6, page 7.) 4. Sold J. Wilson, on account at 10 days, 100 bbls. of Flour, at $6.25, $625. {Journal. Rule S, part a, page 7.) 6. Sold P. R. Smith, for cash, 25 bbls. of Salt, at $1.2^, $31.25. {Cash Book. Rule 6, page 7.) 7. Bought of Nicholas Boyer, on account at 15 days, 500 bbls. of Apples, at $1.50, $750. {Journal. Rule 4, part a, page 7. ) 8. Sold M. D. Young, for cash, 125 bbls. of Apples, at $1.75, $218.75. {Cash Book. Rules.) 10. Bought of A. B. Clark & Co., forcash, 100 bush, of Corn, at 60 cents, $60. {Cash Book. Ruled.) 11. Sold J.Wilson, on account at 30 days, 100 bbls. of Apples, at $1.80, $180. {Journal, Rule S, part a. ) 12. Paid Gardner Allen, Jr., cash, in full of bill of the 2nd inst., $1100. {Journal and Cash Book. Rule 3, part h, and Rule 6.) V SINGLE ENTRY BOOK-KEEPING. 19 k-2 .-^t^r^cy C-^T^^^^ &o ^ ^a''l<^>^'^^'4y ^^-c^f^ty // oo 14. Eeceived, cash, of J. Wilson, in full of bill of the 4th inst., $625. {Journal and Cash Booh. Rule 4, part h, page 7. Debit side of Cash Book, Rule 5, page 7. ) 15. Sold Seymour Gates, on account at 5 days, 125 bbls. of Apples, at $1.70, 1312.50; 20 bbls. of Flour, at $6.20, $124; total, $336.50. {Journal. Rule 3, part a, page 7.) The special inslmictions and the references to rules will be omitted in the remainder of this exercise, as it is believed that you will now be able to continue the work without such assistance. Should you be uncertain at to the correctness of an entry, refer to the Gteneral Rules on page 7, or to a similar transaction in the first part of this exercise. 17. ^ Bought of Gardner Allen, Jr., on account at 15 days, 300 bush, of Oats, at 42 cents, $126. 18. Sold, for cash, 150 bush, of Oats, at 48 cents, $72. 19. Bought, for cash, 2 tons of Coal, for use of store, at $5, $10. 20. Received, cash, of Seymour Gates, in full of bill of the 15th inst., $336.50. 22. ' Paid Nicholas Boyer, cash, in full of account, $750. 23. Sold Seymour Gates, 6n account at 10 days, 50 bbls. of Flour, at $5,75, $287.50. 25. * Sold J. Wilson, on account at 5 days, 50 bbls. of Flour, at $6, $300, and 25 bbls. of Salt, at $1.30, $32.50; total, $332.50. 26. Bought of Gardner Allen, Jr., on account at 15 days, 200 bbls. of Flour, at $5.50, $1100, and 200 bush, of Oats, at 42 cents, $84; total, $1184. 28. Sold Seymour Gates, on account, 100 bbls. of Flour, at $6, $600, and 100 bush, of Oats, at 48 cents, $48; total, $648. 30. Eeceived, cash, of J. Wilson, in full of bill of the 25th inst., $332.50. After completing the above work you will next balance the Cash Book. Should you need assistance in doing so, refer to the instructions for Balancing the Cash Book, on pages 10 and 11. Take special pains with the ruling. Remember that all ruling should be done with red ink. The footing of the debit side of the Cash Book should be $4116, and of the credit side. QuESTio:rNrs. Page 8. — "How many methods of keeping a. Cash Book are there? ''""Describe each method. Page^ 10-11. — '^''Describe the manner of "balancing" a Cash Book in which opposite pages are used for the receipts and payments. What colored ink should be used for rulings? Page 7. — Give the General Rules for Single Entry Book-keeping. 20 SINGLE ENTRY BOOK-KEEPING. Ofc^ aCt^t^ i4r>z.A^ V^(X^ Z>i^ ZU^ // l^yT^T'^ / oo (^ cf.cfo <^^>^^-e^^ <=^ £Zyr~- 7^ f '>7^yt<'. Jco^J^t(i(^. 0?^^x<^^ a^ tf.^/'o cfcfOO J'/6\/" I Q^ ?>^«-«0«^^*»«^^*^ / i c/tfoo' TytiT . y^ «.tfrf^ nb MDoaBt vtll oeeopy ■ tbt lover h*lf of pAg* t< ^/^ .^^^^^-^^^c^^^jTT^i^ c//* /V Thii aoooDU *iU oeenpr th« ippw h«U s( |a«< 1 ^'^^^^ -S^^^f^-^^^^Z-^^^TT^ JW*^ (^^ 1 */ /^/^ 1 ! 1 n \ (J 4< 0^^ /■ 1 I • i // f // / / t^O \ \^tyt/»1^ yj S^ / J2,f A^^ Tkit aocMDi «iU Mean llM>n«ksUa(fagil. ry. jL4*-*««- /"^/Tc^^ cfit r(S^ /So SINGLE ENTRY BOOK-KEEPTNQ. 27 RESULTS OF THE BUSINESS. You will now show from your records and from the property you haye on hand, what your present worth is, what has been your gain or loss, and of what your property at present consists. As stated on page 6, "the Present Worth may be obtained by finding the difference between the amount of the resources and the amount of the liabilities, and "the Net Gain or Net Loss may be obtained by finding the difference between the net inyestment and the present worth. It will be obvious to you that ^"the Eesources consist of debts due you, and of property, of whatever character, in your possession, and that " the Liabilities are all the debts you owe. You will now proceed to make a list of your resources and liabilities. The first resources to be considered are the various kinds of property on hand which are not shown by the books. " Such property is estimated, usually, at cost, unless there has been a marked change in its value since it was purchased. Such "a list of stock on hand is called an iNVEirroBY, which in this case consists of 490 bbls. Flour, at $5.50, 2695.00 200 bush. Oats, at 40 cents, 80.00 400 '\ Corn, at 60 cents, 240.00 3015.00 Horse and Wagon, bought, for use of business, - 145.00 Harness, valued at 15.00 Total amount of Inventory, 3175.00 The next resource is Cash. Amount received, shown by debit side of Cash Book, 4849. 00 '' paid, " " credit *' " " " 4264.10 Amount of cash on hand, 584. 90 The remaining resources are Personal Accounts in mt favor. John Hammond, debit of his Ledger account, 528.00 credit " " " 306.25 Balance of account, my favor, _. 221. 75 Chas. B. Corning, debit of his Ledger account, 738. 00 credit " " " ^ 375.00 Balance of his account, my favor, 363.00 Total personal accounts in my favor, 584. 75 The liabilities are Personal Accounts which I have to pay. Wm. Simpson, credit of his Ledger account, 2170.00 debit " " " 1360.00 Balance of account, his favor, 810.00 Robert Wentworth, credit of his Ledger account, 590. 00 debit " " " 410.00 Balance of account, his favor, --- 180.00 Total of personal accounts, which I have to pay, 990.00 \ 28 * SINGLE ENTRY BOOKKEEPING From the abore list of resources and liabilities a complete statement of the property and debts of the business may be made. Such a statement is usually and properly called a STATEMENT OE RESOURCES AND LIABILITIES. RESOURCES. Inventory, 3175.00 Personal Accounts, receivable, 584.75 Cash, balance of Cash Book, 584. 90 Total Resources, 4344.65 LIABILITIES. Personal Accounts, payable, — — 990. 00 My Present Worth, 3354.65 Investment, 3500. 00 Due Jones & Bro. , 376. 85 Net Investment, 3123,15 Net gain for the month, 231.50 " To make your account in the Ledger show what it should, viz. : your real present interest in the business, it will now be necessary to place on the credit side of that account the net gain, as shown above. You will therefore write in black ink on the right-hand, or credit side of your account the date, June 30, for explanation. Net Gain, and the amount, $231.50. (See illustration on opposite page.) The difference between the sides of your account will now show your present worth, as exhibited by the Statement of Resources and Liabilities, viz.: $3354.65. This amount should be placed on the debit side as follows: Write in the date column in red ink the date, June 30, in the explanation column. Present Worth, in the check column, 1 (as the amount is to be transferred below the rulings on the opposite side of your account, which is on page 1 of the Ledger), and in the amount column, the amount, $33S4.65. {See illustra- tion on opposite page.) Next rule and foot the account as follows: Draw one red litie across the money column on both sides of the account and directly on the blue line upon which the net gain was written {see illustration on opposite page); now rule two red lines, one on the next blue line below and the other immediately under it, extending the lines across, first, the debit date column; second, across the debit check column and the credit date column; third, across the credit check and credit money columns — in other words, rule across the entire width of the page, excepting across the explanation columns. {See illustration on opposite page.) Next write the footing of the account in the money column, between the single and double rulings. Next transfer the present worth below the rulings on the credit side of the account by writing in black ink in the date column, July 1, as this is your capital at the beginning of July, in the explanation column. Present Worth, in the check column, 1, to indicate the page of the Ledger from which this was transferred, and in the amount column the amount, $335^.65. You will now observe that your account in the Ledger has been made to show your interest in the business on June 30th. '* It should not be inferred that it is customary in business to make a statement of resources and liabilities and show results as often as once a month. Semi-yearly or yearly statements are regarded sufficiently frequent. It has been shown that to make such a statement it is necessary to take an inventory, which, in the case of a large stock of mixed goods, is attended with so much labor that frequent exhibits are wholly impracticable. SINGLE ENTRY BOOK-KEEPING. 29 .J^^^-t^/a^^^ C^.^^>t^0Ld Questions upon some of the principles involved in the preceding exercise are given below, and you should be prepared to answer them if called upon to do so. Before proceeding further, therefore, study carefully the answers to the following ^ QUESTIOl^S. Page 21. — ' How are the Journal and Cash Book used in this set? ' What is designed to be shown at the close of the month? ' Explain what is meant by results. * What additional book was it necessary to introduce? * What is a Single Entry Ledger designed to contain? *By its use, what is the proprietor enabled to know? ^ When a purchase is partly paid for at the time it is made, what entries are usually made? * What other form of entry might be made? "Would there be any difference in the result by either plan? '"Why is the first form preferred ? Page 22. — " How is the posting done? "'" Tell how you would post the following journal entry: June 1, Student, Cr. {Investment), $3500, Page 23. — *^"Tell how you would post the following journal entry: June U, Wm. Simpson, Dr. {Mdse.), $550. Page 25. — "When should an account in the Ledger be ruled up and footed ? "Explain the process of niling and footing an account in which there are several entries ? "'""^ How is an account closed in which there is but one entry on each side ? Page 27. — '*How may the Present Worth of a business be ascertained ? " How may the Net Gain or Net Loss be found ? '" Of what do the Resources of a business consist? " Of what do the Liabilities consist? "What is an Inventory? '"How is property on hand usually estimated at the time of taking inventory? Page 28. — "How can the proprietor's account be made to show his present interest in the business ? " How frequently are statements of resources and habilities made in business? Seyeistth Exeeoise. You are now prepared to begin the work of July, which will be a continuation of that of June. All of the entries in the Journal will be posted to the accounts in the Ledger already opened, and should it be necessary, new accounts will be opened. The cash transactions will be recorded in the Cash Book immediately under those of June. Since the following exercise is of the same general character as the preceding one, it is believed you will be able to make the entries in the Journal and Cash Book without diffi- culty. Should doubt arise as to the proper form of an entry, it is suggested that you consult the preceding exercise, where you will find entries involving exactly the same principles aa govern those in this exercise. 30 SINGLE ENTRY BOOK-KEEPING. SERIES OF TRANSACTIONS. July, 190-, 1. Paid one month's rent in advance, in cash, $50. (C. B.) It Sold John Hammond 50 bbls. Flour, at $6.25, $312.50) 75 bush. Corn, at "^S^, 156.25; 50 bush. Oats, at 50^, $25. Received, cash, $200; balance to be paid July 15th. {J. and a B.) 2. Sold, for cash, 100 bbls. Flour, at $6, $600. {C. B.) 3. Sold Mjron G. Eeed, 100 bush. Corn, at 70^, $70; 50 bush. Oats, at 50^, $25; 75 bbls. ' Flour, at $6.25, $468.75. Eeceived $300, cash; balance to be paid in 15 days. (/. and a B.) " Sold Geo. W. Young, on account at 30 days, 100 bbls. Flour, at $6.25, $625. (J.) 5. Received of John Hammond, $100.50, cash, in full of bill of June 22. {J., C. B.) 7. Received, cash, of Chas. B. Corning, for balance of bill of June 27, $213. (J., C. B.) 8. Sold, for cash, 50 bbls. Flour, at $6.25, $312.50; 100 bush. Corn, at 75^, $75. 9. Paid Wm. Simpson, cash, for balance of acct. of June 9, $810. (J"., C. B. Rule lip Simpson^ s account as directed in note under June 18, page 25. ) 10. Bought of Robert Wentworth, on account at 10 days, 200 bush. Oats, at 40^, '$80; 150 bush. Corn, at 60 cents, $90. (/.) 11. Sold Geo. W. Young, 50 bbls. Flou]-, at $6, $300. Received $200, cash ; balance to be paid in 15 days. 12. Bought of Wm. Simpson, 500 bbls. Flour, at $5.50, $2750. Paid one-half, $1375, in cash. {J., C. B.) 13. Paid, cash, for repairing wagon, $3. 75. 15. Received, cash, of John Hammond, for balance of purchase of the 1st inst., $193.75, 16. Paid Robert Wentworth, balance due him on purchase of June 15th., $180. 17. Sold Geo. W. Young, on account at 30 days, 100 bush. Corn, at 70^, $70; 100 bush. Oats, at 50^, $50. 18. Received, cash, of Myron G. Reed, for balance of account, $263.75. {Eule up Eeid's account as instructed iw note under June 18, page 25. ) 20. Sold Mann & Willard, on account at 30 days, 150 bbls. Flour, at $6.25, $937.50. 21. Received of Chas. B. Corning, $150 in cash, in full payment of purchase of June 21st. {Rule up Coming's account.) 22. Bought of Robert Wentworth, on account at 30 days, 200 bush. Oats, at 40^, $80; 300 bush. Corn, at 60^2^, $180. 23. Sold Chas. B. Corning, 50 bbls. Flour, at $6.25, $312.50; 100 bush. Oats, at 48^, $48; 100 bush. Corn at 75^, $75. Received, $200, cash ; balance to be paid in 30 days. 24. Sold, for cash, 50 bbls. Flour, at $6, $300. 26. Received, cash, of Geo. W. Young, for balance of bill of llth inst., $100. 27. Sold Mann & Willard, on account at 30 days, 100 bbls. Flour, at $6.25, $625. 28. Sold Geo. W. Young, 50 bbls. Flour, at $6.50, $325. Received $150, cash; balance to be paid in 10 days. 29. Bought Iron Safe for use of the business, for which I paid, cash, $100. 30. Sold, for cash, 100 bush. Corn, at 65^, $65; 100 bush. Oats, at 45 j#, $45. 31. Paid clerk's salary for July, $60, in cash. SINGLE ENTRY BOOK-KEEPING. 81 POSTING THE ENTRIES FOR JULY. You will now balance and rule up your Cash Book as heretofore instructed. Your balance of cash should be, $1474.65. Next post the entries contained in your Journal to the proper accounts in your Ledger, as explained in ''Instructions for Posting" on page 22, and as illustrated on page 26. In business it is customary and advisable to post every day, so that the Ledger shall show at all times the true condition of the personal accounts. DIRECTIONS EOR POSTING XHE ENTRIES POR JULY. In the entry of July 1, John Hammond is debited $393.75. You will therefore turn tc John Hammond's account in the Ledger, and place on the left-hand, or debit side, the date, July 1, the explanation, Mdse., the page of the Journal, 5, and in the amount column, the amount, $393.75, remembering to place the Ledger page, on which Hammond's account appears, in the check column in the Journal. Then, immediately credit John Hammond in the Ledger for the amount for which he is credited in the Journal. Remember to date and check the entry. You will proceed posting in like manner all of the entries for July. Give all new accounts one-half page space. Whenever an account balances rule it up. After completing the posting you will next make a statement of your property and debts. Your merchandise on hand will correspond with the following Inventoet for July. 165 bbls. Flour, at $5.50,.. 907.50 200 bush. Oats, at 40^, 80.00 275 " Corn, at 60{ZS,.:.. .'. 165.00 1152.50 Your statement of resources and liabilities should correspond with the following Resources. Inventory, Mdse., - 1152.50 Horse and Wagon, 145. 00 Iron Safe, 100.00 Harness, valued at 15.00 1412.50 Personal Accounts, receivable: John Hammond, 121.25 Chas. B. Corning, 235.50 Geo. W. Young, 920.00 Mann & Willard, 1562.50 2839.25 Cash on hand from Cash Book, 1474. 65 Total Resources, 5726.40 Personal Accounts, payable: Liabilities. Wm. Simpson, 1375.00 Robert Wen tworth, 430.00 Total Liabilities, . 1805.00 Difference between the Resources and Liabilities, or Present Worth, 3921.40 Interest in the business at the beginning of the month, as shown by Ledger account, 3354. 65 Net gain for month of July, 566.75 32 SINGLE ENTRY BOOK-KEEPING. After making the statement as directed above, you will next proceed to cause your account in the Ledger to show your present worth, as explained on page 28, and as illustrated below. Remember that all rulings, and such entries in the Ledger as are to be transferred, should be in red ink. After closing your account and bringing down the Present Worth, it should correspond to the illustration given below. ^J2l^l^^€:^£^^^ 1 — TJaZZ J^V^&^ c// ^Ci'>i^'■*^uA-■^/^l C^^i^ci^^e-;^ .-XV-^Z^^ Your Ledger is now in condition for beginning the work embraced in the next exercise; but before entering upon the work, review carefully the questions given on page 29. Eighth Exercise. You will now make the proper entries in your Journal and Cash Book for the following SEMES OF TRANSACTIONS. August, 190-, 1. Sold Chas. B. Corning, 100 bbls. Flour, at $5.75; 125 bush. Oats, at505«; 75 bush. Corn, at 70^. Received $400, in cash; balance to be paid in 30 days. 2. Received, cash, of Geo. W. Young, in full of bill of July 3. 3. I have this day drawn $350, in cash, from the business for my private use. This entry should be, Student, Dr., Cash for private use, 350.00. 4. Bought of Robert Wentworth, 400 bush. Oats, at 40^ ; 300 bush. Com, at 60j*. Paid one-half in cash; balance due in 30 days. 6. Sold, for cash, 100 bbls. Flour, at $5,75. 7. Received, cash, of Geo. W. Young, for balance of bill of July 28. 8. Obtained a policy of Insurance of $2000, on the contents of the store, for one year, for which I paid a premium of 1 per cent., $20, in cash. 9. Bought an Office Desk, Letter File, and Copying Press, for office use, for which I paid, $125, in cash. 10. Paid rent of store for August, in cash. $50. SINGLE ENTRY BOOK-KEEPING. 88 11. Paid Wm. Simpson, cash, for balance of bill of July 12th. You will remember that when an account in your Ledger is made to balance during the course of the business, you are to rule it up. {See note under June 18, page 25.) 14. Sold John Hammond 50 bbls. Flour, at $6.10; 100 bush. Oats, at 46^; 125 bush. Corn, at 70^. Received $200, cash; balance to be paid in 20 days. 15. Bought of Wm. Simpson, on account at 30 days, 300 bbls. Flour, at $5.75. 16. Received, cash, of Geo. W. Young, for amount of his purchase of July 17. 18. Bought of Robert Went worth, on account at 30 days, 200 bush. Oats, at 42 j* ; 150 bush. Com, at 65^. 19. Received $1000, cash, of Mann & Willard, to apply on their account. 20. Sold, for cash, 150 bbls. Flour, at $6. 31. Bought of Wm. Simpson, 300 bbls. Flour, at $5.60. Paid $1000, cash; balance due in 30 days. 22. Received, cash, of Chas. B. Coming, for balance of his purchase of July 23. 23. Paid Robert Wentworth, cash, in full of purchase of July 22. 25. Sent 1 bbl. Flour to my house, for private use. This should be charged to you in the Journal at cost price, $5.50. The entry will be Studentt Dr., 5.50. 26. Received, cash, of Mann & Willard, for balance of their account. Rule up this account as heretofore instructed. 28. Sold, for cash, 50 bush. Oats, at 45j2J; 75 bush. Com, at 70^. 29. Paid, cash, for shoeing horse, $2.50. 30. The Store and contents were last night destroyed by fire. The books and cash in the safe were uninjured. The Sun Insurance Co. owes you $2000, the amount of the policy of insurance taken on the 8th inst. You will now balance your Cash Book, post the Journal entries to the Ledger, and make out a Statement of Resources and Liabilities. Your balance of cash should be $2990.15. The Inventory will consist of the Horse and Wagon, valued at cost, and the Safe, damaged, valued at $25. John Hammond owes you $359.75, Chas. B. Corning, $290, and the Sun Ins. Co., $2000. You owe Wm. Simpson $2405, and Robert Wentworth $521.50. Your Net Loss for the month is, $682.50, and your Present Worth is, $2883.40. After completing the Statement of Resources and Liabilities, you will next cause your account in the Ledger to show your Present Worth, by entering on the proper side of the account the amount of your Net Loss. It will be apparent that since a net gain increases your interest in the business, and is placed on the credit side of your account, a net loss will diminish your interest, and must be placed on the debit side of that account. You will, therefore, enter on the delit side of your account, in the date column, Aug. 31, in the explanation column. Net Loss, in the check column, 1, and in the amount column, 682.50. Next enter your Present Worth on the smaller side of your account, in red inh, as heretofore instructed. Then rule and foot the account, and bring the Present Worth below the rulings, on the credit side. (See illustration\on next page.) It will be observed that this business is discontinued at this point. The business of the next month would naturally commence with the present assets and liabilities, but as other principles are to be illustrated, necessitating other resources and liabilities, it is thought best that everything pertaining to the foregoing business be dropped here, and that the new business start out under entirely new conditions. 3 34 SINGLE ENTRY BOOK-KEEPING. .-^sSWz:^^^ ■cf/ Otitf \^,I^Ud4'?ty/'^.y/^t,^ a. ^i^^<££^^^yr- <:faSi ^rr^ Va A^o After completing the ivork of closing your account, as instructed on the precedi?ig page, hand your hooks to the teacher for inspection, and be prepared to answer questions upon the work passed over. SINGLE ENTRY BOOK-KEEPING. 35 Ni:^rTH ExEECiSE. Since the series of transactions which constitutes this exercise embraces promissory notes, it will be necessary for the pupil to become familiar with the form, elements and sphere of such notes, and also with the manner of entering them in the Bill Book, before proceeding further. * Bills Eeceivable, as defined on page 6, embraces all of other people's negotiable Avritten promises to pay, in our possession, " Bills Payable embraces all of our negotiable Avritten promises to pay, in the possession pi others. ' By a negotiable written promise to pay is rrjeant a written agreement to pay a stipulated sum of money, at a stated time, to some person named in the paper, or to his order, or to bearer, and usually a place where it shall be paid when it falls due is also indicated. Form of Promissory Note. ■z-i^d-ey ^^-ur ..y/i^€^-2^^ ^t f^^^-rzy ^^^i^is^i^;^^^ * The import of the foregoing paper is that the student has promised in writing to pay Wm. Graham, or to whomever he may see fit to transfer the note, seventy dollars, and two months' interest on that sum, two months after June 6, 190-, and to make the payment at the First National Bank. 36 SINGLE ENTRY BOOK-KEEPING. 'Had the note been made payable to Wm. Graham, or hearer, instead of to Wm. Graham or order, Graham could make a complete transfer of it to anybody by simply delivering the paper, but, as it was made payable to him or his order, " it will be necessary for him to mdorse it. ' This is done by Graham writing his name across the back of the paper, as shown in the second illustration on the preceding page, ' which makes it payable to whoever has possession of it when it becomes due. " Should the person who receives the note from Graham ( whom we will suppose to be R. L. Mason ), bearing his indorsement, wish it made so that nobody but he could collect it, without his indorsement, he may have Graham indorse it thus : Or, "should Mason receive it with simply Wm. Graham written on the back, he may write over Graham's signature, ^'Pay to the order (/ R. L. Mason,'' which would have the same effect. "Thus he will have caused the note to be made payable to him or his order, as completely as Student originally made it payable to "Wm. Graham. In some of the States of the Union negotiable paper is allowed to run three days beyond the expiration of the time it was made to run by its terms. These additional days are called "days of grace.'' Formerly days of grace were allowed in all of the states, but have since been abolished in many of them by acts of their legislatures. Days of grace are not considered in this book. The Bill Book. "This is a book designed to contain all of the facts regarding the notes received or issued by us. "It is usually made reversible, with Bills Receivable on one side, and Bills Payable on the other. "The facts which this book should contain are, the number of the note; the date when given or received; the indorser, if any; the maker, who is the person who has it to pay; the person in whose favor it is made; for what the note was given or received; the place where the paper is payable; the date when it will fall dne; the amount of the note in figures, with "Int." written in small letters over the figures, if the note is made to draw interest, and the date of payment; and at the extreme right there is a column for indicating how and when the note was paid or disposed of. The form of Bill Book given on pages 38-39 will afford an idea of the book and its use. SINGLE ENTRY BOOK- KEEPING You will write up on cap paper the notes required by the following data, and enter them in the Bill Book. No. 1. Your note, given to apply on account, drawn at two months after June 6, 190-, favor of Wm. Graham, or order, for seventy dollars, payable at First National Bank, with interest. {Bill Payable.) No. 1. P. W. Monroe's note, favor of you or your order, received for cash loaned, payable at your office three months after July 16, amount one hundred and fifty-five dollars and seventy-five cents. {Bill Receivable.) To aid you in properly arranging and capitalizing such a note as the above, the following illustration is given : aty '-^^^-^-^x^-e^ t^z^T^i^t:^ '~//oo The note illustrated above need not be entered in the Bill Book. ■* It should be borne in mind that when a note is not intended to draw interest it is not necessary that it should be so stated. When the paper is to draw interest, write simply, " with interest," as shown above. No, 2. Your note, given for merchandise, at one month from July 14, payable at National Exchange Bank, for one hundred dollars, with interest, favor of J. D. Wilson. {Bill Pay- able. ) No. 2. J. G. Wagner & Go's note, for $696.84, received for merchandise, favor of you or bearer, indorsed by W. J. Brown, payable at Second National Bank, dated Lockport, N. Y., July 20, at two months, with interest. {Bill Receivable.) It is presumed that you can now determine which of the following notes are Bills Receivable and which are Bills Payable, and also that you will be able to properly number them and enter them in the Bill Book. Your note, for 1346.84, at thirty days from July 22, given for merchandise, payable at Merchants Bank, with interest, favor of Franklin Elwood. John H. Turner's note, for $123.12, your favor, received for cash loaned, dated at Worcester, Mass., July 18, 190-, at two years from date, with interest, payable at Exchange Bank, Boston, Mass., indorsed by M. W. Payne. A note, in your favor, for $100, dated New York, Jan. 16,.190-, at one year and six months after date, with interest, payable at Park Bank, made by Walters & Brown, Goshen, N. Y., and indorsed by Willis & Eeed. A note, favor John H. True, dated July 17, signed by you, given for merchandise, payable three months after date, for $312.60, with interest, payable at the German-American Bank. Note. — The foregoing is designed simply to illustrate the recording of notes in the Bill Book ; since it has no connection with the work which is to follow, you may draw a red line in the Bill Book below the last entry, entirely across both pages on each side of the book. / , 38 SINGLE ENTRY BOOK-KEEPING. BILLS No. When Given. DRAWER AND ENDORSER. DRAWEE OR MAKER. IN WHOSE FAVOR. FOR WHAT GIVEN. WHERE PAYABLE., 1 2 190- June July 6 14 Student Wm Graham J. D. Wilson On account Mdse. First Nat. Bk. Nat. Ex. Bk. BILLS No. When Rec'd. DRAWER AND ENDORSER, DRAWEE OR MAKER. IN WHOSE FAVOR. FOR WHAT RECEIVED. WHERE PAYABLE. 1 .2 190- July July 16 20 W. J. Brown P. W. Monroe J. G. Wagner &Co. Myself Money loaned Mdse. My office Sec. Nat. Bk. Iinttoioes or Bills. An Invoice, as used in this connection, is a bill of items of merchandise sold. {See illustration on opposite page.) It should contain the name of the place where the sale was made ; the date of the sale ; the name of the person, firm or company making the sale ; the name of the person, firm or company to whoin the sale was made ; the terms of payment ; a description of every item of merchandise, with the price of each item ; the amount of each item should be extended into the left-hand money column, and the aggregate of all extended into the right-hand money column. If the goods are paid for at the time the sale is made the invoice should be " receipted " by entering below the items, ''Received payment," followed by the signature of the seller. For instance, had Student paid for the goods embraced in the invoice illustrated on page 39, somebody connected with the American Graphite Co., who has authority to sign for the com- pany, usually the Secretary, or some other officer, should have written at the bottom of the invoice. Received payment, American Graphite Co. By J. D. S. , Secretary. In case time is given on a purchase, as in that of Student from the American Graphite Co., it is usual to return the invoice to be receipted when payment is made, in which case the receipt should be dated, as : Received payment Sept. 10, 190- American Graphite Co. By J. D. S., Secretary. SINGLE ENTRY BOOK-KEEPING PAYABLE. 39 DATE TIME. WHEN DUE. Amount When and How rEAR MONTH ^ 4 1 1 a s ■-s 3 ti % S S o o 1 Redeemed 190- June July 6 14 2 mos 1 mo. 190- i 6 14 Int. 70 Int. 100 190- Aug 6 Paid by bank. RECEIVABLE. DATE. TIME WHEN DUE. When and How TKAB MONTH. >< i >-> i X s 3 >> 3 3 1 O 1 Disposed Of. 190- July 16 20 3 mos 3 mos 20 16 155 Int. 696 75 84 190- Oct. 16 Paid in cash. FORM OF INVOICE. cf6 cf/ cf4 J'J- fcf &cf cfo 7^ JlcfJZ /-^^ 40 SINGLE ENTRY BOOK-KEEPING. '^ /, y^^- J2?^^t>i>€Ziy^-ly/- (Z^'X^^i^'^Z^yCi^ytl/ ^.'^url.-zy ocd-iT-yzy Jo J2 t'7^yi,€4-'C^c^(^^^^ . C;Jfy^^^A(r^^^y crU C>^.'7/T7Z-Ce^ // J' A. ^i^'^rt^CtJ^CTT^ c^^ZyCey c/ is explained and illustrated on pages 38 and 39. "The Day Book^ or Blotter, as it is sometimes called, is designed to contain a consec- utive historical record of the business. " When this book is kept, a record should be made of every transaction as soon as it occurs. "It is necessary to do this immediately that "no important fact regarding the matter be overlooked. " The Day Book is not very generally used at the present time, especially in cases where the business is of considerable magnitude. *°When this book is omitted the entries are made in the other principal books, as the Cash Book, Journal and Sales Book, and " every 54 DOUBLE ENTRY BOOKKEEPING. entry is accompanied by sufficient explanation of the transaction as to leave no ground for uncertainty as to the particulars regarding it. " The fact should not be overlooked that a complete record of every transaction should be preserved in some form. " The Sales Book is designed to contain a complete record of the sales of Merchandise. '^The Invoice Book is intended to contain a record of all purchases of Merchandise. "The Sales Book is sometimes a tissue book in which impressions of the invoices of goods sold are made with a copying press; "' and an Invoice Book is sometimes a blank book made for that purpose, into which is pasted invoices of goods purchased. Gezsteral Rules for Double Eji^ttrt. Bule 1. " The Proprietor is Credited ^For the sum of his resources at the beginning of business; ' ^For subsequent investments in the business; and "For his net gain, if any, when the boohs are closed. Bule 2, " The Proprietor is Debited ^For the sum of his liabilities at the begiiinitig of business ; ^For such sums as he may draw out of the business from, time to time ; and "For his net loss, when the books are closed, if there be a loss. Bnle 3. "' Persons are Debited ^Wlien they become indebted to us; and ^ When we get out of their debt, wholly or in part. Bule 4. ^^ Persons are Credited '■When we get into their debt; and" " When they get out of our debt, wholly or in part. Bule 5. " Cash is Debited when it is received into the business^ from whatever source. Bule 6. " Cash is Credited when it is paid out, for whatever purpose. Bule 7. "Bills Receivable is debited for all of other peoples negotiable written obligations, when they are received. Bule 8. '* Bills Receivable is credited when other peoples negotiable written obli- gations held by us are paid or otherwise disposed of. Bule 9. *' Bills Payable is credited for all of our negotiable written obligations, token they are issued. Bule 10. " Bills Payable is debited for all of our negotiable written obligations, when they are paid or otherwise cancelled. Bule 11. "Merchandise is Debited /or the cost of all merchandise purchased. Bule 12. ""Merchandise is Credited for the proceeds of all sales, of merchandise. Bule 13. ^' Expense is Debited for all expenses of the business, as clerk hire, fuel, light, etc. Bule 14. " Expense is Credited when anything of value is disposed of, which was previously debited to Expense. Bule 15. " Interest is Debited when interest or discount is allowed to others. Bule 16. " Interest is Credited when interest or discount is allowed to us. DOUBLE ENTRY BOOK-KEEPING. 55 QUESTIOIN'S. * Whut accounts are kept in a Single Entry Ledger ? ^ What in a Double Entry Ledger? '"' What must be represented in a Double Entry Ledger ? ' Upon what do the books required in Double Entry depend ? '' What books are usually employed ? * What other books are sometimes used ? ' What form of Cash Book is used in Double Entry ? '" What does the Journal contain ? "-"^-'^ Explain the use of the Ledger employed in Double Entry? '^ What use is made of the Day Book ? '" When should the record be made in this book ? "'"Why ? "How generally is this book used ? ''"When this book is not employed where are the entries for transactions made ? *' How fully are the entries explained ? " What is said of recording every transaction ? " What is the Sales Book designed to contain ? " The Invoice Book ? " What other form of Sales Book is sometimes kept ? " AVhat other form of Invoice Book ? " When is the Proprietor credited ? " When debited ? " When are Per- sons debited ? ="• When credited ? '' When is Cash debited ? " When credited ? " For what is Bills Eeceivable account debited ? " For what credited ? " For what is Bills Pay- able account credited ? ''For what debited ? "For what is Merchandise debited ? "For what credited ? " For what is Expense debited ? " For what credited ? " When is Inter- est debited ? " When credited ? PAGE OF CHECK BOOK: STUB. teJ. NO. ^• DATE, &^<^- ^' ^fO- FOR ^^^ am't, $ ?c'c. /.M T, 'o-^-**a-#Wrfi?»» c^ ^^^fU-^C-yi^ No. ^. Detroit, Mich., Ow. <^=5», 19^ COLLEGE NATIONAL BANK, Pa OF DETROIT. Y TO ^ J^ ^**«^*./^ ^ _«s IN COLLEGE CURRENCY. _55_ ^t-e^-fv^t OR <»i<^W/ Dollars, ei4'^tyyi No. ^. Detroit, Mich., ^w*'. -i=^/ 19^- GOLLEGE NATIONAL BANK, OF DETROIT. OR 19 G. W. Smalley, Cory. On acct. 10 days C. L. Troup, City. Erwin Bros., City. 0^ acct. 10 (\i To Mdse., 50 brls. Empire Flour, $7.00 10 brls. Star Flour, $6.50 40 brls. Star Flour, $6.50 10 brls. Empire Flour, $7.00 1 ton Bran, 500 bu. Oats, 38^ Total sales on time, 350 65 260 70 330 20 190 415 210 625 To the Teacher. — In case this set is worked independently of offices, the invoices of the merchandise which the student is to buy, should be made out in advance. This may be done by each student for himself before beginning work on the set, or one or more students may be assigned the work of billing for the other members of the class. The blank bill heads for this purpose may be taken from the student's package of business forms. The teacher should examine these invoices with reference to arrangement, neatness, and accuracy of computation. The correct amount of each bill will be found in the key under the head- ing, " Journal," for each day. After the invoices are made out, they should be arranged in proper order and filed in convenient form with the teacher, to be called for by the student as he reaches them in his work. The teacher should examine, also, the other business papers and the books of the student as frequently and critically as his time will permit, or the cir- cumstances require. Careless or inaccurate work of any kind should not be tolerated. The daily statements should be kept checked up to date, and the student should not be permitted to go on with the work of any date, until his work of the preceding date is found to be correct. Money and Stationery. — The plan of this set contemplates the use of school money, and various kinds of blank business forms, in addition to the blank books mentioned above. The blank books made to accompany this book, contain ample space for all the sets. Each student will require one package of business forms, and there will be needed a supply of school money. The quantity of money required is given in the Teachers' Key. The pub- lishers of this book can furnish both the money and the forms. The use of representative merchandise, or merchandise cards, is not recommended, for the reason that the object of the set is not to attempt to teach the art of buying and selling, which can only be learned in actual business, but it is to teach the art of drawing business papers, handling money, and making records in connection with business transactions. Space in The Ledger .- 11 lines' space in the Ledger. -Give Merchandise account 22 lines, and all other accounts Vi BLTSIJ^ESS PRACTICE. MEMORANDA OF TRANSACTIONS. June 1, 190-, Commence business this day as a dealer in Fruits and Confections at the store No. 47 Main St., this city. Make a memorandum of the above in your Journal. Read carefully all instructions and ex- planations printed in this size of type. Invest cash in the business $5000. Get the money from the teacher and make an entry for it in the Cash Book, extending the amount into the general column. {See form of Cash Book, pages ii and iii.) Head the Cash Book, as shown in the illustration, by writing "Cash Receipts" in a bold, plain hand, on the blue line at the top of the left-hand page, and " Cash Payments " on the same line at the top of the right-hand page. Write the current year at the head of the date column on each page. Sometimes the month and year are written at the top of the page,. and then the days of the month only are written in the date column. Write the word " Mdse " at the head of the first money column on the left-hand page, and the word " Expense" at the head of the first column on the right-hand page. (See 27 and 28, page ii. See, also, form of Cash Book, pages ii and iii.) Pay Creed & Wilson, city, $10 for office books and stationery, as per their bill of May 29. {C. B. Expense account. Extend the amount intb the special Expense column.) These goods are supposed to have been bought previous to commencing business, at which time a bill was received and placed on file. Now that the books are open, the bill is paid and entered, as above. A receipt should always be obtained for money paid on account. In business the receipt is usually made and signed by the one to whom the money is paid. But in this work, to save the teacher unnecessary labor and to give you additional practice, you will be required to draw up the business papers, except the signatures, of all the parties to the transactions. You will, of course, sign your own papers, and the teacher, who represents the other parties, will sign all the other papers. Remember this : While you may draw up any form of business paper you please, you have no right to sign another person's name to the paper, unless authorized to do so by the person himself. The signing of another person's name to a business document, with intent to defraud, is forgery, and forgery is a crime. You will now take from your package of business forms a receipt blank and fill it out for the teacher to sign. A receipt should show when and where the money was paid, by whom and to whom paid, the amount and for what paid. Your receipt when made and signed should corres- pond to the following FORM OF RECEIPT. (yieteimd You will now take from your package of business forms a blank Freight Bill and Freight Receipt, and fill them out as shown in the forms above. Sign the Freight Receipt. Then hand the Freight Bill, Freight Receipt, and the money to the teacher, who will sign and return the Freight Bill to you after detaching it from the Freight Receipt. File the receipted bill as a voucher. BUSINESS PRACTICE. x{ Pay the following petty expenses in cash: Pens 50^, ink 75^, pencils 60^, pins 15^. Short extend the above items in Cash Book, thus : June 2. Expense. Pens "^ ink "^ peTi- eils '"f pins •=?— 2.00. Pay the cash to the teacher. No receipt is required. No bill is necessary, as ^oods sold over a retail counter for cash are never billed, unless the amount is large or a bill is called for. Sell for cash to W. G. Mason, city: 5 bxs. Oranges, @ $6; 1 bbl. E. H. Apples, $6.50; 1 bx. Lemons, $5.50. {K B. eg C. B.) {See 18 to 21, p. ii.) Render bill and receipt the same, then hand to the teacher and receive the cash. {See form of receipted invoice, page viii.) Sell Newman &, Son, city, on account: 10 bbl. E. H. Apples, @ $7; 5 bxs. Oranges, @ $6. Sell R. D. Lawrence, city, on account: 1 bx. Oranges, $6; 5 bxs. Lemons, $5.40; 5 bbls. E. H. Apples, $6.90. Sell Brown & Son, Hartford, on account: 20 bxs. Lemons, @ $5.50; 20 bxs. Oranges, @ $6. {Enter the above sales in the Sales Book and render invoices for the same. Foot and rule the S. B. at the bottom of the first page and carry the footing forward to the next page. See form of S. B., page v.) As Brown & Son's place of business is not in this city, the goods will have to be shipped to them. {See 47 to 51, page iv.) When goods are delivered to a railroad or an express company for transportation, a receipt for the goods is given the shipper by the company. These receipts are usually made out by the shipper on blanks furnished by the transportation company, and are signed by an agent of the company. A receipt for the above shipment would be similar in form to the following Shipping Receipt. (This Place), June 2, 190- Received from " Student " BY INTER-STATE TRANSPORTATION COMPANY, The property described below, in apparent Rood order, except as noted (contents and condition of contents of packages unknown), marked, consigned, and destined as indicated below, wliich said Company agrees to carry to the said destination, il on its road, otherwise to deliver to another carrier on the route to said destination. It IS mutually agreed, in consideration of the freight charged for this service, as to each carrier of all or any of said property over all or any portion of said route to destination, and as to each party at any time interested m all or any of said property, that every service to be performed hereunder shall be subject to all the conditions, whether printed or written, shown or endorsed hereon, and which are hereby agreed to by the shipper and by him accepted for himself and his assigns as just and reasonable. MARKS, CONSIGNEES, AND DESTINATION. DESCRIPTION OF ARTICLES. WEIGHT. SUBJECT TO CORRECTION. Brown d Son, Hartford, 20 bxs. Lemons 20 bxs. Oranges 1500 1500 For Inter-State Transportation Co., W. B. WILSON, Freight Agent. Read the conditions endorsed on back of this receipt. Tou will now fill out a shipping receipt, like the above, on one of the blanks which you will find in your package of business forms, and take it to the teacher to be signed. Next enclose the receipt and the invoice in an envelope addressed to Brown & Son, Hartford, and hand to teacher. Deposit cash $225 in School Bank. {See explanation for the deposit of June 1.) In making up a deposit arrange the money so that it may be easily and quickly counted at the bank. Put bills of the same denomination together, faces upward. To count paper money, place a convenient number of bills in the left hand, faces upward; close the hand until the ends of the middle finger and thumb nearly meet; with the fore finger Xll BUSINESS PM AC TICK and thumb of the right hand remove one bill at a time, in such a way that it will pass, imder slight pressure, between the ends of the middle finger and thumb of the left hand. In laying the bills down, take pains to arrange them in a compact pile, instead of spreading them loosely over the desk. Prove the cash and post the books for the day, after which make out a Daily Statement and hand it to the teacher. The cash in drawer is $50.55. June 3, 190- Eeceive from Horton Bros., to balance account, their note for $41.25, dated June 2d, at 10 days, payable at School Bank. {Enter in J. £ B. B.) Take from your package of business forms a blank note and fill it out in accordance with the above terms, and hand to the teacher to be signed. When properly filled out and signed it will correspond to the following form of Promissory Note. {City), J'lzjze ^, 19 O V^^-^ IQQ TeTh cLouys ctftei^ dctte lAre pi^oirtzse to pcty to tKe order of„.^^.^^^_^'StiLd.e,n.t"^ ^t-tl ScJxool Ciz.T'i^eTxcy , Fo-rty-OTte~ ^.^^^^^..^.^..^...,^^ . Dollars, Dctyahle cut Scltool DctnTz. Vctlize deceived No. 35, Diza JUize, 1^ , 190-. HORTOK BROS. per T. In determining the maturity of a note, count forward the exact number of days expressed in the body of the note, if for "days after date," and months, if " mos. after date." Place the note in the envelope marked " Note File." Sell Lyman & Co., on account: 5 bbls. E. H. Apples, @ $6.90; 5 bxs. Oranges, @ $6; 10 bxs. Lemons, @ $5.40. Make invoice for above and for aU sales made hereafter, without further instructions. Sell J. R. Peck, city, for cash: 1 bx. Oranges, $6; 1 bx. Lemons, $5.50; 1 bbl. E. H. Apples, $7. {S. B. &C.B.) Sell Smith & Van Dorn, Lockport, on account : 10 bxs. 5j| ea. Gum Drops, @ 300 ; 10 bxs. 5}| ea. Assorted Candy, @ 25^; 10 bxs. Oranges, @ $6; 1 bbl., 25 Pineapples, @ Vl\i. {Make out shipping receipt and enclose with invoice. See sale to Brown & Son, June 2.) Receive from Lyman & Co., cash, $100, to apply on account. "Write a receipt for the above payment. {See form of receipt, page vi.) In the receipt after the word " For" write, to apply on account. Call at the teacher's desk, get the money, and leave the receipt. Make the proper entry in the Cash Book. File the receipt as a voucher. Pay by check on School Bank freight bill on goods received from Boone & Cook, Batavia, on the 1st inst., 50 bbls. Apples, 7500 lbs., rate 150 per cwt., $11.25. {Mclse. acct.) Make out freight bill and freight receipt similar to the ones illustrated on page x. Draw your check, favor Agt. Inter-State Transpt. Co., and hand it, together with the freight bills, to the teacher. Remember to enter the check in the Cash Book. File the receipted bill. Deposit cash $125 in School Bank. Prove the cash, post the books, and make out Daily Statement. Cash in drawer $44.05. BUSINESS PRACTICE. xiii June 4, 190-, Pay cash for the following petty expenses: Postage, $1; stationery, 25 jf; cartage, $2.50. {SJiort extend. See explanation, page ix.) Buy of L. A. Wendell 1 horse, $100; 1 delivery wagon, $75; 1 single harness, $18; 1 blanket, $3; 1 whip, $1, and pay for same by check on School Bank. {Charge Horse S Wagon acct. in Cash Book. Get a receipt for your check.) Receive from R. D. Lawrence his 5-da. note, dated June 3d, for the amount of the invoice sold him on tlie 2d inst. See Lawrence's account for the amount of the above invoice. Draw up the note and have it signed by the teacher, after which place it in your Note File. Buy of Myers Bros. & Co., city: 100 bunches Bananas, @ 90{^, and pay for same by check on School Bank. (Mclse. ^c in Cash Book.) Make invoice and get it receipted when you deliver the check. Sell Putnam & Wood, city, on account: 1 bx. Lemons, $5.75; 1 bbl. E. H. Apples, $7.25; 10 Pineapples, @ 12^^. Sell Moore & Son, city, for cash: 2 bbls. E. H. Apples, @ $7; 2 bunches Bananas, @ $1-50. Sell W. G. Mason, city, on account: 1 bx. Oranges, $6; 1 bx. Lemons, $5.50, 1 bunch Bananas, $1.60; 2 bbls. E. H. Apples, @ $7.50. Remember to foot and rule the Sales Book at the bottom of each page. Receive cash of Parsons & Co., city, to apply on account, $25.50. Deposit cash $75 in School Bank. Prove the cash, post the books, and make out Daily Statement. Cash in drawer, $7.80. June 5, 190-, Draw a draft, at one day's sight, on Brown & Son, Hartford, for $115, to apply on their account. Date the draft to-day, and make it payable to the order of yourself. Hand the draft to the teacher for acceptance. The acceptance is dated to-day, payable at Bank of Hartford. {Enter in Bill Book atid Journal. See form of acceptance, page 76, and expla- nation, page 77.) In business a draft like the above would be sent by mail to the drawee to be accepted and returned; or it would be left at the bank and the bank would forward it for acceptance and return. Business usage requires that when a draft is drawn on a customer he should be notified of it. No particular form of words is necessary, a simple notice like the following being sufficient: Notice of Draft. June 5, 190-, Brown & Son. Hartford. Gentlemen, — I have this day drawn on you at one day's sight, as per agreement, for One Hundred Fifteen Dollars, being one-half the amount of your purchase of the 2d inst. Trusting you will honor the same, and awaiting a continuance of your favors, I am, Yours respectfully, "STUDENT." "Write a letter similar to the above on a letter-head, enclose it in an envelope properly addressed and hand to the teacher. After getting the draft accepted make the proper entries for it, and place it in the note file. ^Pay in cash freight on goods received from C. B. Smith & Co., Buffalo, 170 bxs. Candy, 1020 lbs., rate 25^ per cwt. Follow the instructions given heretofore in similar cases. xiv BUSINESS PRACTICE. Draw your note favor of Boone t& Cook, payable six days after date at School Bank, for the amount of their account, and remit it to them. {Bill Book ami Journal.) After drawing the above note write Boone & Cook a letter stating that you enclose your note for the amount of their invoice of May 27. Enclose the note and letter in an envelope properly addressed and hand to the teacher. Sell Moore «& Son, city, for cash: 2 bxs. Lemons, @ $5.50; 2 bxs. Oranges, @ $6; 25 Pineapples, @ 11^. Sell Bancroft & Bro., city, for cash: 5 bunches Bananas, @ $1.40; 1 bbl. E. H. Apples, $7; 5 bxs., 5|f ea.. Gum Drop, @ 20^; 15 lb. Stick Candy, @ 180. Sell Horton Bros., city, on account: 5 bxs. Lemons, @ $5.40; 2 bunches Bananas, @ $1.50; 5 bxs., 5|{ ea.. Gum Drops, @ 2Q<}i', 5 lbs. Stick Candy, @ 18^. Sell Brown & Son, Hartford, on account: 5 bxs. Oranges, @ $0.10; 10 bxs. Lemons, @ $5.50. Remember to make out shipping receipt for above sale. Receive of Lyman «& Co., city, cash $42.50, to apply on account. Deposit cash $80 in School Bank. Prove the cash, post the books, and make Daily Statement. Cash in drawer, $15.20. June 6, 190- Receive cash, $50, of Newman & Son, city, to apply on account. Accept Green & Go's draft on you at four day's sight for $358, on account. {B. B. £ J.) Draw the above draft and have it signed by the teacher, after which accept it, dating the acceptance to-day, payable at School Baink, and make the proper entries for the transaction. Then hand the draft to the teacher. Sell Chas. W. Wilson, city, for cash: 5 bunches Bananas, @ $1.35; 3 bxs. Lemons, @ $5.40; 2 bxs. Oranges, @ $5.85; 5 bxs., 5|} ea.. Gum Drops, @ 180. Sell John R. Peck, city, on account: 5 lbs. Stick Candy, @ 170; 5 bxs.. 5|| ea.. Assorted Candy, @ 230; 2 bunches Bananas, @ $1.40; 1 bx. Lemons, $5.50. Sell Parsons & Co., city, on account: 3 bunches Bananas, @ $1.35; 1 bbl. E. H. Appies, $6.75; 2 bxs. Lemons, @ $5.45; 2 bxs. Oranges, @ $5.85; 5 bxs., 5|} ea., Gum Drops, @ 190; 6 lbs. Stick Candy, @ 160. Sell Neiyman & Son, city, on account: 2 bxs. Lemons, @ $5.45; 1 bx. Oranges, $5.85; 6 Pineapples, @ 100; 2 bunches Bananas, @ $1.40. Pay cash, $3.50, for horse feed. {Expense °jc. Short extend this item.) Buy of G. A. Raymond 1 second-hand office safe, and pay for same by check on School Bank, $45. {Expense "Jc. Short extend.) Some business men prefer to charge such a purchase as the above to an account called Furni- ture and Fixtures acct., while others prefer to charge it to Expense acct. In either case the result Is practically the same, as the property is inventoried at its estimated value at the time of making % Balance Sheet. Deposit cash, $65, in School Bank. Pay cash, $15, for clerk hire for the week. {SJiort extend.) Add the short extended items and enter the amount in the expense column. Draw cash, $10, from busmess for private use. Charge your own account for the above withdrawaL BUSINESS PRACTICE. XT Prove the cash, foot the special columns in the Cash Book and carry the footings of these columns into the General columns, as shown in the illustrations, pages ii and iii. Cash in safe, $10.85. Next balance and rule the Cash Book. (See 35, page iii, and form of Cash Book, pages ii and iii.) Bring the balance down in Cash Book under date of the next business day, June 8th. Foot the time sales column in the Sales Book and rule that book. {See form of Sales Book, iiage v. ) Post the books. Post the footing of the Sales Book and the footing of the Mdse. column in the Cash Book to the credit of Mdse. account. Post the footing of the Expense column in the Cash Book to the debit of Expense account. Post the other items as heretofore. Make out a Daily Statement and hand to the teacher. Now take off a trial balance of your Ledger in your Trial Balance Book. June 8, 190-, Eeceive from Brown & Son, Hartford, their check on the Bank of Hartford, for $100, to apply on account. (C. B.) Draw up this cheek on the Bank of Hartford blank check, which you will find in your package of business forms, and present it to the teacher to be signed. Treat the check as cash. Remit Green & Co. your check for $300 to balance their account. Make the check payable to Green & ^o. Write them a letter stating that you enclose your check for the above amount, to balance your account, and ask them to acknowledge receipt of same. Fold the check inside the letter and enclose it in an envelope, properly addressed. Receive cash $38.95 from Parsons & Co. to balance their account. Pay E. Lane cash $15 for signs for store. {Expense. Short extend all expense items here- after.) Sell Parsons & Co., on account- 3 bbls. E. H. Apples, @ $G.75; 3 bxs. Lemons, @ $5.35; 8 bunches Bananas, @ $1.40; 5 bxs. Oranges, @ $5.80. Sell damaged goods for cash $7 as follows; 1 bx. Oranges, 1 bx. Lemons, 10 Pineapples. {C. B. only.) No entry is required in the Sales Book for the above, as it is not a regular sale, and no bill is required. Sell Anson & Dow, Fairport, on account: 5 bbls. E. H. Apples,. @ $6.75; 15 bxs. 5|| ea. Gum Drops, @ 50{Z?; 10 bxs. 5|| ea. Assorted Candy, @ 23^; 4 bxs. Oranges, @ $5.80; 4 bxs. Lemons, @ $5.40. Sell Putnam & Wood, on account: 5 bunches Bananas, @ $1.30; 2 bxs. Lemons, @ $5.40; 5 bxs. 5|| ea. Assorted Candy, @ 23{#; 5 bxs. 5|f ea. Gum Drops, @ 19{zJ; 1 bx. Oranges, $5.80. Pay 1 week's rent of store by check, $12.50. Telegraph Boone & Cook, Batavia, to ship you at once by fast freight Fifty barrels Early Harvest Apples; pay the charges on the message in cash, 25^. {Expense.) Write the above message on the telegraph blank which you will find in your package of busi- ness forms, limiting the number of words, exclusive of the address and signature, to ten. Tele- graph companies charge a certain sum for transmitting a message of ten words or less to a given place, and for all words over ten an additional charge per word is made. Your message when written should be similar to the following : XVI BUSINESS PliACTIGE. TELEGRAPH MESSAGE. THE COMMERCIAL TELEGRAPH COMPANY. Philo M. Beckley, General Manager. Sylvanius CuMMiNGS, President. receiver's no. TIME FILED. SEND the following messag^e subject to tlie terms on back bereof, wbicb are hereby agreed to. J2^«^ J', /f^-- To ^o^ l-M d-ieiyi'Cti-. -^dtVi €H i^-nce /u/ jH-eta^/ /A ■o^ei44-e^ OO'-i-'^^/- j:^W-2t?rf/ CyfA/t^. t " -^/cu/e-yt^. Deposit currency $35 and the check received from Brown & Son to-day. Bank cliarges you 150 for collecting the check. Also leave Brown & Son's acceptance at the bank for collection. i^CTc. B. and C. B.) Itemize this deposit and deduct the collection as shown in the form on page iv. Charge Expense in the Cash Boole for the collection on the check. Endorse the check in blank and also the draft left for collection. No entry is necessary at this time for the draft. Prove the cash, post the books, and make out Daily Statement. Cash in safe, $6.55. June 9, 190-, Goods as per the following invoices have been received and found to check all right: Green & Co., New York, Invoice No. 5, dated June 5th, 80 bxs. Oranges, @ $3.25; 75 bxs. Lemons, @ $2.85; 5 bbls., 40 in ea., Pineapples, @ 60. C. B. Smith & Co., B.ufFalo, Invoice No. 6, 50 bxs. 5|f ea. Assorted Candy, @ 170. {See 62, page iv. ) Pay freight on the goods received to-day from New York and Buffalo by check favor Agt. Inter-State Transpt. Co. The weight of the goods is: Oranges, 75 lbs. per bx.; Lemons, 75 lbs. per bx.; Pineapples, 100 lbs. per bbl.; Candy, 1 case, 275 lbs. Kate on fruit 150 per cwt., and on candy 250 per cwt. Remember to make out freight bills and freight receipts for the above, as heretofore instructed. Receive cash $14.25 of Putnam & Wood to apply on their account. Sell Smith & Van Dorn, Lockport, on account: 1 bbl. E. H. Apples, $6.75; 4 bxs. Oranges, @ $5.50; 6 bxs. Lemons, @ $5. Sell W. D. Oliver, city, for cash: 50 Pineapples, @ 110; 5 bunches Bananas, @ $1.35; 2 bxs. Lemons, @ $4>90. Sell Lyman & Co., city, on account: 15 bxs. 5}f ea. Gum Drops, @ 200; 10 bxs. 5|| ea. Asso. Candy, @ 230; 10 lbs. Stick Candy, @ 160. Pay cash $5 to Globe Publishing Co. for advertisement in Daily Globe. {Expense.) . Prove the cash, post the books, and make out Daily Statement. Cash in safe, $37.85. BUSINESS PRACTICE. xvii Juke 10, 190-, Pay cash $1.50 for shoeing horse. {Expense.) The Apples ordered of Boone & Cook by telegraph on the 8th inst. have arrived, and are invoiced at $5.50 per bbl. The invoice is dated June 8th. Eeceive cash $118.50 of Lyman & Co. in payment of invoice of 3d inst. Eemit C. B. Smith & Co., Buffalo, your check for $133 in payment of invoice of May 30th. Pay cash for freight charges on the goods received from Batavia to-day. Weight, 150 lbs. per barrel; rate. 150 per cwt. Sell John R. Peck, on account: 85 Pineapples, @ 11^; 5 bunches Bananas, @ $1.35; 3 bbls. E. H. Apples, @ $6.75; 2 bxs. Oranges, @ $5.50; 2 bxs. Lemons, @ $5. Sell James Martin, city, for cash, 15 lbs. Stick Candy, @ 15^; 5 bxs. 5| ea. Assor. Candy, @ 22j^; 5 bxs. 5| ea. Gum Drops, @ 19^; 3 bunches Bananas, @ $1.30. Sell W. G. Mason, city, on account: 3 bxs. Oranges, @ $5.50; 3 bxs. Lemons, @ $5; 3 bbls. E. H. Apples, @ $6.75; 2 bunches Bananas, $1.35; 25 Pineapples, @ 11^^. Deposit cash $80 in School Bank. The bank credits you in your bank book for the amount of Brown & Son's acceptance, due on the 9th inst., less 25^ for collecting the same. {0. B. and Ck. B.) Have the teacher enter the collection in your bank book, after which make the proper entries in your Cash Book and Cheek Book. Charge the 25jzS to Expense. Treat the proceeds of the draft the same as a deposit. Prove the cash, post the books, and make out Daily Statement. Cash in safe, $80. Juke 11, 190-, Buy of Keller & Co., 1 Family Carriage, $150, and pay for same by check on School Bank. {'' Student's" acct.) The above is not for use in the business, hence it is charged to the proprietor's account. R. D. Lawrence pays his note, due to-day, in cash. Surrender the note, which is in your note file, when you receive the cash. Accept Green & Co.'s draft on you at 1 day's sight for $285.75, to apply on account. Sell Horton Bros., on account: 15 bxs. 5|f ea. Asso. Candy, @ 22^; 2 bbls. E. H. Apples, @ $6.75; 2 bunches Bananas, $1.35. Sell Newman «& Son, on account, 2 bxs. Lemons, @ $5; 3 bxs. Oranges, @ $5.50; 1 bbl. E. H. Apples, $6.75. Sell H. H. Strong, city, for cash: 1 bx. Oranges, $5.40; 1 bx. Lemons, $4.85; 1 bbl. E. H. Apples, $6.60; 1 doz. Pineapples, $1. Sell Anson & Dow, Fairport, on account: 10 bxs. Oranges, $5.50; 10 bxs. Lemons, $5; 4 bbls. E. H. Apples, @ $6.75. Deposit cash $125 in School Bank. Prove the cash, post the books, and make out Daily Statement. Cash in safe, $40.35, XVIU BUSINESS PRACTICE. June 12, 190-. Parsons & Co. ask for a statement of their account. form of Statement helow. ) STATEMENT. City, June 12, 190- . Messrs. Parsons Sf Co., City, In account with ''Student." 190-. Dr. June 1 6 8 To mdse. as per hill rendered, a ft Cr. 25 38 76 50 95 50 IJfi 95 June 8 By cash. 25 38 50 95 76 ^ 50 Comply witii their request. ( !See A statement is an itemized listof the debit and credit entries of axi account. Statements are usually rendered on the 1st of each month, and at such other times as it may be necessary or desirable. State- ments are rendered monthly for comparison with the accounts on the books of the parties to whom they are sent. In this way, if any errors have been made in posting these accounts, they are detected. When a customer is dilatory in his payments, he is often reminded of that fact by the receipt of a statement, containing a request to please remit. You will now make a statement of Parsons & Co. 's account, as shown by the accompanying illustration, on the blank statement which you will find in your package of busi- ness forms. Enclose the statement in an envelope properly addressed and hand to the teacher. Remit C. B. Smith & Co. your check for the balance of your account. See your Ledger for the amount due S. & Co. Receive cash of Horton Bros, in payment of the invoice sold them on the 5th inst. Accept Boone & Cook's draft on you at 3 days' sight for the amount of their invoice of the 8th inst. Sell R. D. Lawrence, on account: 2 bbls. E. H. Apples, @ 16.65; 2 bxs. Oranges, @ $5.50; 1 bx. Lemons, 15; 24 Pineapples, @ 10^; 1 bunch Bananas, 11.30. Sell Brown & Son, Hartford, on account : 15 bxs. Oranges, @ $5.40; 10 bxs. Lemons, @ $4.90; 5 bbls. E. H. Apples, @ $6.65. Sell Hathaway & Son, city, on account: 15 bxs. 5j} ea. Gum Drops, @ 20{#; 15 bxs. 5| ea. Asso. Candy, @ 220; 10 lbs. Stick Candy, lh*,