Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/americanstandardOOcurtrich / THE AMERICAN STANDARD BOOKKEEPING HIGH SCHOOL EDITION BY C. C. CURTISS, A.M. AUTHOR OF " FREEHAND PENMANSHIP '* a^Oic NEW YORK .:. CINCINNATI .:• CHICAGO AMERICAN BOOK COMPANY jt30PTRIGHT, 1902, BY ^ C. C. CURTISS. Entered at Stationers' Hall, London. CDBTISS'fl BOOKKEEPING. W. P. I INTRODUCTORY This text-book of bookkeeping lias been shaped by many years' expe- rience of the author as teacher and accountant. It embodies advanced pedagogic principles which have been thoroughly tested and worked out in the classroom. In the first part of this work the different kinds of accounts are fully explained and exemplified. Thus made familiar with the meaning of entries in the various accounts, the pupil is prepared to do the work of the regular " sets " understandingly and without floundering. The book is carefully graded, and the sets furnish ample material for practice. Six price lists are furnished throughout, to facilitate inde- pendent individual work. Not only is a pupil greatly aided in his study by the observation of actual specimens of bookkeeping records, but he is much influenced by all the details of their form. In this book, therefore, script specimens of all kinds are supplied in profusion, and great care has been exercised in making them models of accuracy and neatness in every particular. The work required of the pupil is designed not only to secure a broad and sound knowledge of the theory and art of bookkeeping, but also to encourage the formation of correct business habits. Nothing taught in the book will have to be unlearned later, when the pupil takes up real business life. " Figures can not lie " is a business aphorism which has gone into language as a popular proverb. Like all proverbs it contains elements of both truth and falsehood. The experience of all men of business has taught them that figures not only can lie, but that too frequently they do deceive the most expert, — sometimes through error, sometimes through criminal intent. In the art of accounting, it is the man behind the figures Who must be trusted not to lie, — either through accident or otherwise. During forty years the author has had a wide and varied experience as a teacher of the science of Bookkeeping and Accounting, and during that long period a procession of tens of thousands of learners has passed under his eye. That pregnant experience has taught him that error lias been more fruitful of loss and disaster than criminal intent. 3 4 ....... mmODUCTORT Since our country has become the foremost nation of the business world, the importance of commercial training in our schools can not easily be exaggerated; although that which we learn from books and through the agency of schools is only a foundation for the finish and culture which active life only can give. It is not claimed that the guideboard can do more than point the way to the City of Success ; but this book is pre- sented to the public with confidence, born of experience, that its lessons are in every way reliable. CONTENTS PAGE Definitions 7 Accounts 8-48 Financial Accounts . . . 10-25 Cash Account Illustrated . . 10-13 Personal Accounts Illustrated . 14-17 Bank Account Illustrated . . 18, 19 Bills Receivable Account Illustrated 20-25 Bills Payable Account Illustrated 22-25 Business Accounts . . . 26-43 Merchandise Accounts Illustrated 26-31 Shipment Accounts Illustrated . 32, 33 Real Estate Accounts Illustrated 34-37 Interest Account Illustrated . 38-40 Expense Account Illustrated . 41-43 Proprietary Accounts . . 44-48 Sole Proprietor Account Illustrated 44-45 Partnership Accounts Illustrated 46-48 Complete Business Record . 49-53 Journalizing . . . .54, 55 Books of Record . . . 56-58 Application of Principles ... 59 First Set . . . . 60-96 General Directions for Work . . 61 Memoranda and Vouchers . . 62, 63 Practice Ledger 64 Statements, Business and Financial . 65 Itemized Bills .... 66, 67 Receipt Book 68 Inventory 69 Day Book, Separate . . . 70, 71 Journal, Separate ... 72, 73 ledger. Open .... 74, 75 Index 76, 77 Cash Book F>rors and how to Correct them Closing the Ledger . Closed Ledger, Current Form Memoranda First Set, continued Vouchers and Results Closed Ledger, Full Form . Trial Balance Balance Sheets . Second Set General Directions for Work Memoranda of Transactions Inventory and Results (Feb. 14) Statements .... Day Book Opened Journal Opened . Check Book and Auxiliaries Balance Sheet (Feb. 14) . Memoranda, continued Trial Balance and Results Jo u rn al- Day book Third Set . Directions for Work . Memoranda of Transactions Stock Record Journal-Daybook Inventory and Trial Balance Memoranda, continued Inventory and Results Commercial Paper Promissory Notes Drafts and Acceptances CONTENTS PAGE Maturity of Commercial Paper . .125 Indorsements of Commercial Paper 125, 120 Orders 127 FouKTH Set . . . 128-137 Directions for Work . . . .128 Memoranda of Transactions . 129, 130 Note Book 131 Journal- Day book, Opened . 132, 133 Bill Book, Bills Receivable and Bills Payable .... 134,135 Memoranda, continued . . 134-136 Trial Balance and Results . 136, 137 Fifth Set . . Directions for Work . Memoranda of Transactions Trial Balance Book . Results .... 138-146 138, 139 ^39-143 ' 144, 145 . 146 Sixth Set . . . . 146-153 Directions for Work . . . .147 Memoranda of Transactions . 147-151 Journal-Daybook .... 152 Draft Book Seventh Set General Instructions . Memoranda of Transactions Time Book and Auxiliaries Weekly Pay Roll Journal-Daybook Cash Journal Trial Balance Book . Balance Sheet . Eighth Set General Instructions . Memoranda of Transactions Correspondence . Shipping Invoices Account Sales Inventory and Results Journal-Daybook Cash Journal Trial Balance Balance Sheet PACK 153 . 154- -172 . 154, 155 . 155- -163 . 156, 157 . 158, 159 . 164-167 . 168, 169 . 170, 171 • 172 . 173- -192 . 174 . 175 -182 . 176, 177 . 178, 179 . ISO 181 . 182 183 . 184- -187 . 188 189 . 190 192 SECTION ONE THE PURPOSE AND METHOD OF KEEPING ACCOUNTS, WITH EXERCISES FOR PRACTICE IN ACCOUNTING PRELIMINARY DEFINITIONS Bookkeeping is the art of recording* mercantile transactions in a regular and system^-tic manner so that one may know the true state of his busi- ness and property by an inspection of his books. i Business is any occupation by which a person seeks to obtain a liveli- hood or to acquire wealth. Property is anything owned ; or the exclusive right of possessing, enjoying, and disposing of a thing. A Mercantile Transaction consists of an exchange of properties from one party to another. Resources are the property, of all sorts, belonging to a merchant or man of business. Money, merchandise, amounts owing a merchant on account and on written promise to pay, and the like, are resources. Liabilities are debts which one is under obligation to pay. Amounts owing otliers on account and on written promise to pay are liabilities. Capital is the property employed in business. A Debtor (Dr.) is a party who owes either money, goods, or services. A Creditor (Cr.) is a party who trusts or gives credit in business, and hence one to whom money, goods, or services are due. Cash, which originally meant a chest or box for holding money, is the general name for money or its equivalent. Bills Payable are our notes or written obligations, held by others, to pay specified amounts when due. Bills Receivable are others' notes or written obligations which we hold, for wliich we are to receive specified amounts when due. Merchandise is the general name given to those wares, goods, or comr modities which are bought and sold with a view to profit. Real Estate is the name given to landed property, such as farms, houses and lots, stores, etc. Interest is the compensation allowed for the use of money. 7 8 ACCOUNTS An Account is a statement of the debits and credits of mercantile or business transactions. It has two sides : the left-hand side is called the debit (Dr.) side, and the right-hand side is called the credit (Cr.) side. The difference between the sums of the items on the two sides is the result for which the account is kept. The Balance of an Account is the difference between the footings of the two sides. An account has a debit balance when the Dr. side is the larger, and' a credit balance when the Cr. side is the larger. Form of Accounts Dr. Side W-nt (D. hacLat Cr. Side Date Explanation Amt. Date Explanation Amt. 28 /76 /^OO // /6 15 Balance * /OO 75 y76 00 176 00 ^e^. /6 \ - ^ 76 The foregoing illustration shows that Mr. Dodge bought merchandise of me for S175, on credit, Aug. 23, 1900 ; and that on Sep. 15, 1900, he paid me % 100, in cash : and it also shows that he still owes me a balance of $75. Dr. (Received) ^ci^fv (Paid) Ci 2 ^76 //8 60 76 7^- Jan. 3 4 Balance * 1077 ^6 80 /0^6 26 /0^6 26 fcun. ¥- 1077 SO This record shows that $ 1095.25 has been received ; that % 17.45 has been paid ; and that there is a balance on hand of % 1077.80. Dr. (Redeemed) ffctU. cPciyCl6-C& (Issued) Cb I. ff /o 10 Balance * /76 850 60 75 / 6 176 860 60 76 626 ,6 626\26 ^e.{y. /O 860\76 This record shows the issue of our written promises for $526.25; that $175.50 has been redeemed ; and that there is outstanding $ 350.75. * Italic type in accounts indicates red ink. FORM OF ACCOUNTS 9 Dr. (Received) ISiJUuQy l\t^tlvd(>tb • (Disposed of) Cr. / /o /6 mcUe.. 28 7 82^ /67 ^0 87 ma.'L. /8 20 31 Balance * /87 82^ 267 90 87 46 770 28 770 28 mav. 8/ 267 H This record shows that $770.23 of others' written promises have been received; that S 512.7^ have been disposed of; and that $257 Aii remain on hand. Dr. (Cost) THti.iSyhyCincLl^t (Proceeds) Cb ff ff 2 SO €aU Gain* 8atan^& ^26 226 91 60 88 27 fCf- ff ff 20 30 Balance ^Inventory* 826 2/6 202 80 80 7^8 10 7^8 /O (Z^u 80 202 This record shows that merchandise cos^ $651.83; that the proceeds, including the inventory (value of goods left on hand), were $743.10; and that the gain was $91.27. Dr. (Cost) /\^o(zt £^tat& (Proceeds) Cr. /9- ff / /6 fSitU ^^ya{}-t& /8a,tan^& 8^60 2726 /9- may ff ff /O 31 31 /dltU Re^tUycMe. Balance, Inventory* Loss* 8260 2800 125 6/76 00 6/76 00 may 8/ 2800 This record shows that real estate cost $6175; that the proceeds, including the inventory, were $6050; and that the loss was $125. Dr. (Cost) J'lvtcU.^t (Proceeds) Cf \. fun& / (Ea^k 28 76 /9- // €a^k 82 60 ff /6 ff /^ 80 ff 20 ff 2/ ^0 ff 30 Gain* 33 35 To ff 26 ff 27 60 8/ 8/ ^0 This record shows that the use of others' money cost us $48.05; that others' use of our money produced us $81.40; and that the net gain was $;5;3.35. » Italic type in accounts indicates red ink. 10 ACCOUNTS FINANCIAL ACCOUNTS Financial Accounts are those which are kept for the purpose of showing the standing of the business by exhibiting its resources and its liabilities. Cash Account Cash is the title applied to coin or specie, and may include United States notes, gold and silver certificates, treasury notes, bank notes, bank checks, sight drafts, postal orders, express orders, certificates of deposit, and business paper readily converted into money. PURPOSE OF THE CASH ACCOUNT A Cash Account is kept for the purpose of showing the amount of money received, the amount of money paid, and the amount of money which should be on hand. ^ \ METHOD OF KEEPING A CASH ACCOUNT The amount of cash on hand at the time of opening the account and all receipts of cash are entered on the debit side of the Cash account. When cash is parted with, the amount paid is entered on the credit side of the Cash account. The footing of the Dr. side of the Cash account will show the total cash receipts, and the footing of the Cr. side will show the total cash disbursements. The excess of the Dr. footing over the Cr. footing will show the amount of cash which should be on hand. If the difference between the footings of the Dr. and the Cr. sides of the Cash account does not agree with the amount of cash on hand, an error has been made either in some cash transaction or in the record of the transaction. ILLUSTRATION OF KEEPING A CASH ACCOUNT 1. Transactions. — Jan. 1, 19 . I have on hand this day ^459.80 in cash. Jan. 2. Received ^175 cash from Charles Davis on account. Jan. 3. Paid $56.40 in cash for groceries bought this day. Jan. 4. Paid D. C. Bell ^195 cash in full of account. Jan. 5. Received $123.75 cash on account of H. C. Butler. Jan. 6. Received $234.70 cash for Mdse. sold this day. Jan. 8. Received $49.70 cash of T. J. Gray, to apply on account. Jan. 9. Paid $91.75 cash in full of S. B. Todd's account. Jan. 10. Received $57.60 cash to apply on J. D. Bond's account. Jan. 11. Paid George Davis for rent ^50 cash. Jan. 12. Received $176.25 cash for Mdse. sold this day. Required, the amount of cash received^ the amount of cash paid, and the balance of cash on hand. Instruction. — The pupil will study the ledger record of each of these transactions as recorded on the following page. CASH ACCOUNT U Dr. (Received) Form of Ledger Record (Paid) Cr. / €.w IvancL ^6^ 80 3 ^va(s.&vle^ 66 ^0 // i (^ka^vte^ ^auCa. 176 // f A ^. BM /96 // 6 //. e, JSMe^v /2d 76 // 9 o/. £. S^adcL 9/ 76 // 6 mcUt. 23^ 70 f/ // Re.nt 60 // S\ir. f. ^tay H 70 // 12 Balance on hand * 883 65 // 10 f. A £ancL 67 60 ^^ // /2 /76 26 ^.^^ • /276 80 To /276 80 /^.^. /S 883 • Total received, $1276.80; total paid, $393.15; balance on hand, $883.(55. 2. Transactions. — Jan. 15. I have on hand % 883.65. Jan. 15. Received for Mdse. sold for cash, $327.40. Jan. 16. Paid cash for sundry items of expense, $14.90. Jan. 17. Received cash for sales of Mdse., $216.84. Jan. 18. Received of George Kipp cash in full of account, $71.87. Jan. 19. Paid cash for real estate, $500. Jan. 20. Sold Mdse. for cash, $318.24. Jan. 22. Received cash on account of Eli Hall, $87.29. Jan. 23. Paid cash for rent of house, $45. Jan. 24. Paid cash for personal taxes, $75. Jan. 25. Received cash of John Webb in full of account, $54.90. Required, total cash received, total cash paid, and balance of cash on hand. Dr. (Received) Form of Ledger Record (Paid) Cr. /6 Bcitcinis^& oyv hcA^nd 883 66 /Cf- fan. /6 ^?cjil&■i^^& /¥ qo tf /6 mMie.. 327 ¥-0 // /9 R&al (^a^tate^ 600 // /7 // 2/6 8¥ // 23 fy&nt ^6 // 18 ^&(>ufe. fCifi^jn 7f 87 // 2¥ iTaoce^ 76 // 2o';mcUe.. 3/8 2¥ // 25 Balance on hand * 1825 29 ff 22\€0i /fait 87 29 ^^ it 26\fak'yv iae.6-6- 6^ ^0 = ^ j9ciicLn(^F, /96O f9 /(j/60 /9 fan. 26 /326 29 Total received, $1960.19; total paid, $634.90; balance on hand, $1325.29. ♦ Italic type in accounts indicates red ink. 12 ACCOUNTS EXAMPLES FOR PRACTICE IN KEEPING A CASH ACCOUNT Instruction. — After the studeut has studied the purpose of the Cash account, and the method of keeping it, as illustrated on pages 10 and 11, he should test his knowledge of the same by working the following examples, and submit his work to the teacher for inspection and instruction. 1. Transactions. — Jan. 1, 19 — . I have on hand cash, $475.80. Jan. 2. Paid cash for sundry expenses, $14.75. Jan. 3. Received cash of Henry Burton on account* $44.25. Jan. 4. Received cash for Mdse. sold this day, $147.94. Jan. 4. Paid Bell & Mabey cash on account, $ 137.45. Jan. 5. Received cash for a pair of horses sold Weed Munro, $375. Jan. 5. Paid John L. Smith for 3 tons of hay, at $7.50» $ ? . Jan. 5. Received cash of A. N. Palmer in full of account, $ 97.48. Jan. 6. Paid Kiehle & Co. cash on account, $15. Jan. 6. Received cash of Hyde & Manley in full of their note, $ 50. Jan. 6. Paid cash for expenses, $ 7.50. Required, the receipts, the disbursements, and the balance on hand. Form of Note referred to under date of Jan. 6, 19 — / J-^ ^^ New York, N.Y., €e.to6.&v 6, 19—. 3'k'btey yyuynbh^ ^-^-^^-^^-^^^^.^ after date, for value received, W-& promise to paly 3'h. €. ^tA^demt or order, ^i^ti^ and ^^100 Dollars. At our office. Due fan. 6, /cf — . fiifcU V" iTla^nUAj . 2. Transactions. — Jan. 8, 19 — . I have on hand cash, $993.27. Jan. 8. Received cash for Mdse. sold, $194.75. Jan. 9. Paid James Ryan cash on account, $475. Jan. 9. Received cash of H. M. Myers for his note due this day, $ 100 ; and for interest on same, one year, at 7%, $ ? ; total, $ ? . Jan. 10. Paid J. H. Thompson cash for my note and interest due this day ; principal, $ 50 ; interest for 6 mos. at 6 %, $ ? ; total, $?. Jan. 11. Received cash of I. C. Jones in full of account, $174.50. Jan. 11. Paid Harry Curtiss cash in full for services as clerk, $47.94. Jan. 12. Re- ceived of Irwin Shepard $ 275.50 cash in full of his note due this day. Jan. 12. Paid G. S. Albee $145.75 cash, for my note. Jan. 13. Received cash of C. L. Sa\\^'er in full of his note and interest; principal, $150; interest, one year, at 7%, $ ? ; total, $ ? . Required, total receipts, total disbursements, and balance on hand. 3. Transactions. — Jan. 15, 19 — . I have on hand cash, $1185.33. Jan. 15. Re- ceived cash of David Rand in full of his note and interest ; principal, $ 175 ; interest, $ 3.50 ; total, $ 178.50. Jan. 16. Paid for sundry expenses, cash, $ 13.75. Jan. 17. Sold Henry Avery, for cash, house and lot, $1750. Jan. 18. Paid A. Brown cash in full of my note and interest; face of note, $500; interest at 7% for 3 mos., $? ; total, $?. Jan. 18. Lost, cash, $2. Jan. 19. Drew out for personal use, $75 cash. Jan. 20. Paid J. W. Johnson's sight draft on me, favor of Rodney G. Kimball, for $ 153.50 in cash. Jan. 22. Paid cash for Mdse. bought this day, $ 375. Jan. 24. Received cash of AV. C. Smith, in full of his note and interest; face of note, $95; in- terest at 7 % for 2 mos., $ ? ; total, $ ? . Required, total receipts, total disbursements, and balance on hand. CASH ACCOUNT 13 Form of Sight Draft referred to under date of Jftn. 20, 19 — f/63 ^^. Boston, Mass., fafiua^y 20, 19 — . at Q.icfkt ^..-^.^.^.^.^.^.^.^.^.^.^.^.^..^.^.^.^.^.^.^^^^ value received, Pay to Rocln&j #. fCiyyv{}^tt or order, Une^ /'fiLitdvecl (S^ijty-tkv&& and ^^Jiqq ^^.^^s.^...^^-^v^^^^•^ Dollars, and charge to the account of To Sh. € ^t«.le^, I 5;_ ^__ hl^^^. fi-o-yyve. (^it^, cA.y.\ ^ > 4. Transactions. — Feb. 1, 19 — . C. C. Curtiss (partner) invests in business, cash, t*^ 1800. ----Feb. 1. The Teacher (partner) invests in business, cash, ^1200. Feb. 1. The firm pays George Hale cash for rent of store, ^125. Feb. 2. Received cash for sales of Mdse., t*$ 374.98. Feb. 3. Paid cash for Charles Huntress's sight draft on C. C. Curtiss for -|175. Feb. 5. Received cash in full of eJones & Co.'s note and interest ; principal, % 125 ; interest, % 7.50 ; totai, f ? . Feb. 6. W. J. Christie redeemed his note, our favor, in cash ; face of note, % 275 ; interest at 6 %, 3 mos., % 4.13. Feb. 7. Paid Wesley Neill's draft on Teacher for % 65, in Cash. Feb. 8. Paid Adam Cole cash in full of our note and interest ; princij)al, % 130 ; interest at 6 % for two months and twenty-four days, $ ? ; total, $ ? . Feb. 9. Paid cash for Mdse. bought this day, 1750. Required, total receipts, total disbursements, and balance on hand. 5. Transactions. — Feb. 12, 19—. Amount of cash on hand, $2536.64. Feb. 12. Received cash of Rufus Choate in full of his note and interest; face of note, $450; interest for six months, at 7%, $ ? . Feb. 13. Paid C. S. Gilbert cash in full of our note, his favor; principal, $375; interest, 60 days at 6%, $ ? . Feb. 14. C. C. Curtiss (partner) made an additional cash investment of $1200. Feb. 15. Teacher drew out $25 cash for personal use. Feb. 15. Received cash from sales of Mdse., $237.50. Feb. 15. Paid cash for clerk hire, $125. Feb. 16. Paid C. E. Cady's draft on Teacher for $110, in cash. Feb. 17. Received cash from sales of Mdse., $321.40. Feb. 17. Received cash of C. B. Gilbert in full of his note and interest; principal, $197.50; interest for three months, at 7 %, $ ? ; total, $ ? . Required, total receipts, total disbursements, and balance on hand. 6. Transactions. — Feb. 19, 19—. Cash on hand, $4322.54. Feb. 19. Bought of Homeville Bank, for cash, a draft on Union Bank, Chicago, for $500, at |% premium, and remitted the same to Marshall Field & Co., on account; premium, $?; total, $?. Feb. 20, cash sales of Mdse., $374.85. ----Feb. 20. Paid cash for Byron Horton's sight draft on C. C. Curtiss (partner) for $250. Feb. 21. Received cash for C. L. Sawyer's note due this day; principal, $220; interest for six months at 7%, $ ?; total, $ ? . Feb. 23. Teacher (partner) made an additional cash investment of $1000. Feb. 23. Borrowed of Homeville Bank, on our note at 90 days, $ 1000 ; and on this note we paid interest at 7% in advance, $ ? . Feb. 24. Received cash of W. F. Phelps, in full of all demands, $149.75. ----Feb. 26. Cash sales of Mdse., $427.30 Feb. 27. Bought for cash, Mdse., $275. Required, total receipts, total disbursements, and balance on hand. 14 ' ACCOUNTS Personal Accounts PURPOSE OF KEEPING PERSONAL ACCOUNTS Personal Accounts are those financial accounts which are kept with persons, partnerships, or corporations for the purpose of showing, at any time, whether such persons, partnerships, or corporations are indebted to us, or we to them, and how much in either case. Our dealings on account with an individual should be recorded under the individual's name ; our dealings with a partnership, under the firm's name ; our dealings with a corporation, under the name of the corpora- tion. METHOD OF KEEPING PERSONAL ACCOUNTS When a party (person, partnership, or corporation) receives value from us on a verbal or implied promise to pay at some future time, the amount of the debt is entered on the debit side of his account. When a party gives value to us on our verbal or implied promise to pay at some future time, the amount of the credit is entered on the credit side of his account. The difference between the footings of the Dr. and Cr. sides of a personal account shows the standing of the account. When the footing of the Dr. side of a personal account exceeds the footing of the Cr. side, the party owes us the excess. When the footing of the Cr. side of a personal account exceeds the footing of the Dr. side, we owe him the excess. ILLUSTRATION OF KEEPING PERSONAL ACCOUNTS 1. Transactions with E. A. Sheldon. — Feb. 1, 19 — . Sold him Mdse. on credit, $179.60. Feb. 2. Sold him Mdse. on credit, $118.75. Feb. 3. Received cash from him on account, $175. Feb. 5. Bought of him, on credit, 15 bbls. flour, at $5.60, $84. Feb. 6. Sold him Mdse. on credit, $192.46. Feb. 7. Received cash from him on account, $150. Feb. 8. Sold him on credit, Mdse., $ 119.25. Feb. 9. Loaned him on account, cash, $100. Feb. 10. Sold him on credit, Mdse., $146.30. Feb. 12. Received his check for $100. Feb. 13. Sold him on credit, Mdse., $118.45. Required, the standing of the account Feb. 13, 19 — . How much does he owe me, or I himf Form of Check referred to under date of Feb. 12, 19 — No. 121. HoMEViLLE, III., c^&6A.tocii/Y ^^f ^^ — • gotnjexrillje gaixfe^ \ Pay to S^k. 8. cftud&nt or order, fc& /if^ondvacC cLTLcC %Qo ___..,_______ Dollars, f/ 00.00. 8. (L. ^kttda'iv. PERSONAL ACCOUNTS 16 Dr. (In our favor) Form of Ledger Record (In his favor) Cr. / mcUt. //f 60 /9- (5' (^a^k //^ // i* // //8 76 tf ^ (^to-'H'L ^f // d // /^2 ^6 // 7 (^Ci^k /60 // (5 // //q 26 // /^ // /OO ff f (gafl.4 /OO // ie? Balance * 465 81 // /^ ;^^e. /¥-6 SO ^^ tf /cS" //8 ^6 /^ 9 Ms/ 9/"/- 8/ c^£^. /f ^66 8/ • Total debits, $974.81; total credits, $509; he owes me $465.81. 2. Transactions with Charles Davies & Co. — Feb. 15, 19 — Bought groceries of them on credit, $54.30. Feb. 16. Bought dry goods of them on credit, $472.25. Feb. 17. Paid them cash on account, $150. Feb. 19. Bought produce of them on credit, $76.90. Feb. 20. Bought live stock of them on credit, $225. Feb. 21. Sold them real estate on credit, $200. Feb. 23. Bought of them on credit, groceries, $ 65.70. Feb. 23. Paid them cash on account, $ 160. Feb. 24. Bought of them on credit, dry goods, $ 115.25. Feb. 26. Bought of them on credit, produce, $ 61.40. Feb. 27. Sold them on credit, pair of horses, $ 300. Required, the balance of Charles Davies ^* Co*s account. Form of Ledger Record Dr. (Against them) ^Adlt^^ hcUV-tt^ V^ &0-. (Against me) Cr. /9— /7 ^a^/v /60 /cf— /6 ^la^evie^ 6¥- 30 // 2/- R&at €atate. 200 tf /6 hvif ^aod^ ^72 26 // 23 €-aa./i /6o ff /9 S'u>-clue& 76 90 ft 27 £iv~& ^to(bk, 300 // 20 £iv-& ^tx)^/o 226 tt 28 Balance ^ 260 8o\ // 23 ^VO^&vi&Q. 66 70 ^^ ff 2^ 2yiif ^aodo^ //6 26 -^ ff 26 -%odu€& 6/ ^0 /070 80\ /070 SO S^^L 28 260 80 Total debits, $810; total credits, $ 1070.80; I owe them $260.80. * Italic type in accounts indicates red ink. 16 • ACCOUNTS EXAMPLES FOR PRACTICE IN KEEPING PERSONAL ACCOUNTS Instruction. — When the pupil has become familiar with the purpose and method of keeping personal accounts as illustrated on pages 14 and 15, he will work the following examples, using the Practice Ledger, and submit the result of each to the teacher for inspection and for further instruction. 1. My Dealings with a Farmer. Transactions. — Feb. 1, 19 — . I am owing Anthony Austin a balance of $465.75. Feb. 2. Sold him, on credit, Mdse. amounting to % 164.50. Feb. 28. Paid him cash on account, $150. Mar. 14. Bought of him, on credit, 2 tons of hay, at $13.50, $ ? . Apr. 4. Sold him, on credit, Mdse. amounting to $86.75. May 10. Bought of him, on credit, a pair of matched horses for $275. June 1. Bought of him, on credit, 75 bush. of oats, at 50 f, $? . June 2. Sold him, on credit, Mdse. amounting to $97.45. June 5. Bought of him, on credit, 2 cows, at $45 each, $ ? . June 10. Paid him on account, cash, $150. June 15. Sold him on credit, Mdse., $30. Required, the balance due him or me. 2. My Dealings with a Merchant. Transactions. — Mar. lj\19 — . Benoni Butler owes me on account a balance of $267.50. Mar. 3. Bought of him, on credit, dry goods amounting to $69.50. Mar. 20. Received cash of him, on account, $75. Apr. 1. Bought of him dry goods amounting to $42.25. Apr. 15. Received his check on Homeville Bank for $50, on account. May 3. Sold him, on credit, a pair of carriage horses for $315. May 10. Received his check for $250, on account. June 10. Sold him, on credit, 3 tons of hay, at $12.50, $ ? . June 15. Sold him, on credit, 45 bush, of oats, at 48^, $ ? . June 20. Sold him, on credit, 50 bush, corn, at 53;^, $ ? . June 30. Sold him, on credit, 4 cords of maple wood at $4.50, $ ? . Required, the balance due him or me. 3. My Dealings with Four Merchants. Transactions. — Apr. 1, 19 — . I owe Edward N"orth, on account, $257.90, and Charles West, on account, $495.80. Apr. 12. Bought of Edward North, on credit, a bill of dry goods, $575.60. Apr. 24. Paid Charles West cash on account, $250. Apr. 30. Gave my note to Edward North for $ ? , in full for balance due him on account Apr. 1. May 1. Bought of Henry Eastman, on credit, a bill of hardware, $176.56. May 5. Paid Henry Eastman cash on account, $100. May 7. Bought of James Southwell, on credit, an invoice of crockery, $96.50. May 8. Passed my note, drawn at thirty days, with interest, to Henry Eastman, on account, $50. May 10. Bought of Charles West, on account, groceries, $840.75. May 31. Bought of Edward North, on credit, dry goods, $397.80. June 1. Paid Charles West's draft on me for balance due him May 1, $ ? . June 1. Paid Edward North cash in full of his bill of Apr. 12, $ ? . June 15. Bought of Charles West, groceries, per bill, $680.50; paid him cash for one half of bill, $ ? . June 21. Bought of Edward North, dry goods, per invoice, $794.80. June 22. Paid James Southwell cash on account, $46.50. June 25. Settled my account with Henry Eastman by giving him my check on Homeville Bank for $ ? . June 30. Bought, on credit, of Henry Eastman, hardware, per invoice, $79.45. Required, the standing of each merchant\'i account. PERSONAL ACCOUNTS 17 4. A Merchant's Accounts with Six Customers. Transactions. — May 1, 19 — . Sold Allen Miller, on credit, Mdse., !§ 27.50. May 3. 8old 13. llorton, on credit, Mdse., ^7.98. May 5. Received cash of Allen Miller on account, % 15. May 10. Sold Charles E. Cady, on credit, Mdse., $21.60. May 12. Sold Allen Miller, on credit, Mdse., .$35.00. May 14. Sold B. Horton Mdse., $34.50; received cash for one half, $ ? . May 16. Received cash to apply on B. Horton's account, $20. June 4. Sold B. Horton Mdse., $27.40; received cash for one half, $ ? . June 7. Sold C. E. Cady Mdse., $42.80; received cash for one half, $?. June 10. Sold La Selle II. White, on credit, Mdse., $15.75. June 12. Sold Mary A. Ward, on credit, Mdse., $27.50. June 15. Sold Alice Scheurman, on credit, Mdse., $48.75. June 18. Received La Selle II. AVhite's check for $10, on account. June 20. Received cash of Mary A. Ward, on account, $15. June 22. Sold Alice Scheurman Mdse., $37.50; received cash for one half, $?. June 30. Received Alice Scheurman's check in settlement of her bill of June 15, $ ? . Required, the standing of each customer's account. 5. A Merchant's Accounts with Several Parties. Transactions. — June 1, 19 — . Bought of Charles Brown, on credit, a bill of goods, ^2500. June 5. Sold Thomas Gray, on credit, goods, $ 45. June 11. Sold James White goods, $38.50; received cash for one half, $ ? . June 15. Sold Henry Black, on credit, goods, $22.50. June 18. Sold James White, on credit, goods, $31.50. June 21. Paid Charles Brown cash, $1250. June 25. Received cash from Thomas Gray, on account, $30. June 30. Received cash of Henry Black, on account, $10. July 2. Sold George Green goods, $77; received cash for one half, $ ? . July 3. Sold Mrs. Henry Black goods, $46.50; received cash for one half, $?. July 16. Paid Charles Brown, cash, $500. July 18. Received cash of Thomas Gray, $15. July 20. Sold James White, on credit, goods, $61.25. July 23. Sold George Green, on credit, $79.60. July 24. Sold Henry Black, on credit, goods, $49.70. Aug. 2. Sold George Green, on credit, goods, $56.90. Aug. 6. Paid Charles Brown, on account, $750. Aug. 7. Sold George Green, on credit, goods, $94.60. Aug. 10. Received cash, $25, from James White, on account. Aug. 16. Received from Henry Black, on account, cash, $ 50, and from George Green $ 75, cash, on account. Required, the standing of each account. 6. A Merchant's Accounts with Several Parties. Transactions. — July 2, 19 — . Bought of Ashwood & Co., N.Y., on credit, an invoice of goods, $1575. July 2. Bought of Beech & Co., Boston, as per invoice, goods amounting to $3000; paid them per check for one half of bill, $?. July 2. Sold Charles Maple, on credit, bill of goods, $49.70. July 3. Sold Henry Walnut, on credit, bill of goods, $57.60. July 5. Bought of Spruce & Co., Chicago, goods amounting as per invoice to $1750. July 6. Remitted to Ashwood & Co., New York, exchange for f 1000, bought per check at Homeville Bank. July 7. Received Charles Maple's check for $25, to apply on account. July 10. Bought of Homeville Bank, per check, Boston exchange for $ 500, and remitted the same to Beech & Co., Boston, to apply on account. July 11. Sold James Birch, on credit, bill of goods, $97.60. July 16. Received Henry Walnut's check for $20, on account. July 20. Bought of Homeville Bank, per check, Chicago exchange for $ 750, and remitted the same to Spruce & Co., Chicago, to apply on account. ---'- July 23. Received Charles ^Maple's Check for $ ? , in full of account. July 25. Bought of Homeville Bank, per check, New York exchange for $ ? , and remitted the same to Ashwood & Co., N.Y., in full of account. Required, the standing of each account. 18 ACCOUNTS Bank Account It is the custom of prudent business men to deposit their money in a bank for safe keeping, and to withdraw such amounts as may be needed by checks. A Check is an order for money, drawn by a depositor, on a bank or on an officer of a bank, and is payable on presentation at the bank. A Depositor is a party who makes a deposit in a bank. A Deposit is money or other value placed in a bank for safe keeping and subject to order. When a deposit is made, the depositor makes a statement in writing, called a Deposit Ticket or Slip, which sets forth the date, the name of the depositor, the kind of funds deposited, whether coin, bills, checks, notes, or drafts, and the amounts. See page 105. The deposit ticket, together Avith the funds to be deposited, is passed to the receiving teller of the bank, who acknowledges the receipt of the funds by making an entry in the depositor's baiik pass book. A Bank Pass Book is a jSiiiall account book which the bank furnishes to a depositor. It contains a*^ record of all deposits, and of all sums paid on depositor's checks. See page 105 for form of bank pass book. When the depositor wishes to use the funds which he has on deposit, he draws a check and delivers it to the person to whom the money is to be paid. This person, called the Payee, may present the check to the paying teller of the bank and obtain the amount expressed therein, or he may transfer the check to some other party. A check drawn by another party, when received and held by us, is usually considered as cash. Many accountants keep no other Bank account than that on the margin of the check book, considering the funds on deposit as cash on hand^ though in the custody of the bank for safety. PURPOSE OF KEEPING A BANK ACCOUNT An account is kept with a bank for the purpose of showing at any time the amount of our funds deposited in the bank, the amount with- drawn by check or otherwise, and the balance on deposit. METHOD OF KEEPING A BANK ACCOUNT When funds are deposited in a bank, the amount is entered on the Dr. side of the Bank account. When money is withdrawn from the bank, the amount expressed on the face of the check is entered on the Cr. side of the Bank account. The excess of the footing of the Dr. side will show the balance on deposit. An excess of the Cr. foot- ing will show an overdraft. BANK ACCOUNT 19 ILLUSTRATION OF KEEPING A BANK A'CCOUNT Transactions. — Jan. 2, 19 — . Deposited cash in Homeville Bank, $1500. Jan. 4. Drew check, favor of W. H. Laird, to apply on account, f 57.80. Jan. 6. Paid Harry B. Curtis.s, on account, per check, ^G4.80. Jan. 8. Deposited cash in Home- ville Bank, if 397.50. Jan. \'l. Paid my note due this day, favor of Charles Kent, per check, $150. Jan. 15. Redeemed my acceptance, favor of William H.Warren, per check, f 75.60. Jan. 17. Deposited cash, $ 100.---- Jan. 20. Paid H. M. Myers rent for the month, per check, $75. Jan. 25. Deposited checks received for Mdse., $479.80. Jan. 2G. Paid William Hamilton in full of account, per check, $298.75. Jan. 31. Deposited cash in Homeville Bank, $580.45. Required, total deposits, total ivithdrawals, and balance on deposit. Form of Ledger Record Dr. (Deposits) /faifL&l/tCCd iSciOiyKy (Withdrawals) Cr. /CJ— i^ ^gaA /600 f la, //. Lalvd 67 SO // S // 3^7 60 // 6 fi-OAAAi JS. ^VaZLq/Q^ 6^ SO // // ft /OO // /^ JSitU, ^OA^CxAtt /60 // ^0 // ^7^ SO // /6 ff // 76 60 // 3/ // 680 ¥-6 // 20 26 76 29S 76 fSu^t. (yyv heZ/ncx^t // SI Balance 23S5 80 3067 76 3057 76 c^^^. / ^336\so\ Total deposited, .S 3057.77; total withdrawn, .1? 721. 95; balance on deposit, $2335.80. EXAMPLE FOR PRACTICE IN KEEPING A BANK ACCOUNT Transactions. — Feb. 1, 19 — . Opened an account with the Gem City Bank, and deposited cash, $ 1000. Feb. 10. Paid James Gray in full of account, per check, $87.50. Feb. 12. Paid J. B. Husted on account of salary, per check, $00. Feb. 13. Deposited S 479.50 cash. Feb. 15. The bank has collected my note against Charles Shibley, and has placed the proceeds, $250, to my credit. Feb. 17. Paid T. J. Gray on account, per check, $54.70. Feb. 20. The bank has discounted my note, their favor, for $1000, and credited me with the proceeds, $980. Feb. 24. Drew from bank for personal use, $50. Feb. 24. Bought of Gem City Bank, per check, their draft on New York, for $ 500, at \ % premium, $ ? . Feb. 27. Paid S. A. Reed in full of account, per check, $54.90. Feb. 28. Deposited cash, $450. --—Mar. 1. Bought Mdse. of L. D. Harvey, and paid him per check, $250. Mar. 3. Paid H. II. Gail on account, per check, $75. Mar. 5. Paid Irwin Shepard $27.50, per check, in full of account. Mar. 6. Deposited cash, $375. Mar. 7. Bought Mdse. of John L. Thomas, per check, $17.25. Mar. 10. Paid James L. Strong in full of all demands, per check, $87.50. Required, total deposits, total withdrawals, balance on deposit. 20 ACCOUNTS Bills Receivable Account Bills Receivable are other persons' notes and acceptances in our posses- sion, so called because we, as holders, are to receive the amounts named therein. Form of Acceptance Receivable ^/OO ^^. Albany, K^., TTIoa^A d, 19- At S^hAAtif cLoAfo/ ^..^ .^^,^.^4\j,.....yj^j^^ht, value received, Pay to 3^k. €. ^ticcCemt f'H'j^^-frri^ ^^ order, €ri& /ifu/ncU&d and ^^^o t74)r-fi^^^™ Dollars, and charge to the account o\ To 2^aA>id /K. ^/W. I c^W^c^^^ 14}-. S^lAfmMcm. PURPOSE OF KEEPING A BILLS RECEIVABLE ACCOUNT A Bills Receivable Actount is kept for the purpose of showing, at any time, the amount of notes and acceptances received, the amount disposed of, and the amount on hand. METHOD OF KEEPING A BILLS RECEIVABLE ACCOUNT When another person's written promise to pay (note or acceptance) is received, its face amount is entered on the Dr. side of this account. When the promise is redeemed, or the paper disposed of, its face value is entered on the Cr. side of this account. The excess of the Dr. side will show the amount of negotiable paper on hand. When a partial payment is made on a note or acceptance, the amount of the payment should be indorsed on the back of the instrument, and also entered on the Cr. side of Bills Receivable account. See page 126 for indorsements. ILLUSTRATION OF KEEPING A BILLS RECEIVABLE ACCOUNT 1. Transactions. — Mar. 1. Received David Burt's note at 90 days in full of account, $150. Mar. 2. Received D. L. Kiehle's note at 3 days in settlement of account, $'247.94. Mar. 3. Received J. H. Lewis's note at 2 months, for bill of Mdse. sold him to-day, $79.40. Mar. 5. Sold C. W. Hyde, on his note at 2 months, Mdse. amounting to $84.75. Mar. 6. David Burt has prepaid his note of Mar. 1, due in 90 days, in cash, $150. Mar. 7. Received Charles Hoffman's acceptance at 3 days' sight, my favor, for $150, in payment of rent. Mar. 8. Received cash for D. L. Kiehle's note f or $ ? . Mar. 9. Received D. C. Bell's note at 30 days for $ 100, to apply on account. Mar. 10. Received Marion D. Shutter's note at 60 days to apply on account, $25. Mar. 10. Received cash of C. W. Hyde, on his note, $50. Mar. 12. Received cash to apply on J. H. Lewis's note, $ 30. Required, (he amount received, amount disposed of, and amount on hand. BILLS RECEIVABLE ACCOUNT 21 Form of Ledger Record Dr. (Received) QilU /^o^tOuCl{}-t& (Disposed of) Cr /9— / Jb. Biivi, a■)^ % f60 mav. 6 (^(ik,Jb. fSiovt /50 2 ^.L.fCitkU, /. ^ifj 9^ // 8 /' h.L.fCi&ktt 2^7 9^ 3 f./f.£e.w^U,mcUa. 79 ^0 // fO // ^. Z^. fijde. 50 6 (iLM.ffyde,, - S^ 75 // 12 // /. fi. jC&tv^U 30 7 (H. /lfajj'nva.n,v&nt 150 // 12 Balance 359 15 9 A ^. Bdt, an, % /OO ^^ /O 25 ^ 837 09 837 09 m^v. /2 359 /5 • Total debits, $837.09; total credits, $477.94; bills receivable on hand, S 359.15. 2. Transactions. — Mar. 12. I have on hand J. H. Lewis's note for $49.40; C. W. Hyde's note for |134.75; Charles Hoffman's acceptance for $150; D. C. Bell's note for $100; Marion D. Shutter's note for $25; total $359.15. Mar. 13.. Received cash for Charles Hoffman's acceptance, $?. Mar. 15. C. W. Hyde redeems his note by paying cash, $?. Mar. 15. Received Allen J. Greer's note at 30 days in settlement of account, $197.50. Mar. 16. Received S. C. Todd's note for $75, on %. Mar. 17. Received cash for D. C. Bell's note, $?. Mar. 19. Received George Bell's note for goods sold him to-day, $67.90. Mar. 19. Received cash for Marion D. Shutter's note, $ ? . Mar. 20. Received cash for J. H. Lewis's note, $?.---- Mar. 20. Received Allen J. Greer's check for $97.50, to apply on his note. Mar. 22. Received George Bell's check for $ 17.90, to apply on his note. Required, the amount received, the amount deposed of, and the amount on hand. Dr. (Received) BitU /^mUv Mb (Disposed of) Cr. /9- mav. /2 f. f-f. L&w-W note. H ^0\ \/9-\ • mav. j /3 ^Q.A ,, /"foj^^yyvam, /50 // 12 (^M./lfyde.'<, // 3^ 76 // /5 // ^ la. fi^^dt 3^ 75 // 12 fio^'^'mcvn' Q. a^^;^. /50 // /7 // A e, Bdt fOO // /2 ^. (g. JSdt'^ naU /OO // /9 // ^kutt&v 25 /' /2 m.K^kidleA.'Q.n 25 ff 20 // f. /f. jC&w-Cq. IfCf ^0 // /6 CI. f. ^va&i, an. % /97 50 // 20 // CC. f. ^le&v 97 50 // /6 cZ. ^. ^add, // 75 22 // ^&a. Bdt /7 90 ff f9 ^ta. £dt, mcUe. 67 90 // 22 Balance • 225 699 55 699 55 TnoA.. 22 225 1 Total debits, $699.55; total credits, $474.55; bills receivable on hand, $225. 22 ACCOUNTS Bills Payable Account Bills Payable is a name given to our written promises to pay (notes and acceptances) issued by us, because we are to pay the amounts named therein. Form of Acceptance Payable $^66^. Minneapolis, Ma^., CUiifci 66 7£ 60 // £^ ^S^V(f£. ^hCl'lf /37 // 23 fcLTybaa. lytykit& ^0 90 £7 30 a. a. Bjifd 66 20 60 2^ 27 37 30 // SO Balance 137 90 8ata/yLe^& 676 00 676 00 aji.v. 30 /37W0 24 account;s EXAMPLES FOR PRACTICE IN KEEPING A BILLS RECEIVABLE ACCOUNT 1. Transactions. — May l.'I have on hand A. M. Keith's note for ^190; B. X. Kurd's note for $75; J. C. Bryden's acceptance for $275; II. H. Kellogg's acceptance for $195. May 3. Sold J. M. Williams, on his not€ at 90 days, Mdse., $74.90. May 4. Received J. S. Pillsbury's note at 30 days, in full of account, $143.75. May 5. Received cash, in full of A. M. Keith's note, $ ? . May 7. Bought a horse of B. N". Hurd, giving, in full payment, his note, $ ? . May 8. Sold J. M. Williams's note of $ ? for cash. May 9. Sold George R. Newell Mdse., and received in payment his draft at one day's sight on E. A. Camp for $ 157.60, which was accepted this day. May 10. Bought for cash Davis & Co.'s note for $ 100. Required, the amount received, the amount disponed of, and the amount on hand. 2. Transactions. — May 15. I have on hand Gale & Rust's note for $ 179.50; Barnes & Co.'s note for $87.90; C. A. Pillsbury's acceptance, my favor, for $96.60; Steele & Avery's acceptance, favor of H. A. Gale, for $ 76. May 21. Bought of C. A. Pillsbury bill of iBour, and gave in payment his acceptance, $ ? . May 22. Received C. S. Fowler's note for $47.90, in full settlement of account. May 24. Drew on J. C. Bryant for balance of account, $ 97.75, and he returns the draft accepted. May 25. Bought C. E. Cady's note of $198.75 for cash. May 26. Sold Gale & Rust's note for cash, $ ? . May 26. Received cash from Steele & Avery, in full of their accept- ance, $ ? . May 28. C. S. Fooler redeems his note in cash, $ ? . Required, the amount received, the amount disposed of, and the amount on hand. EXAMPLES FOR PRACTICE IN KEEPING A BILLS PAYABLE ACCOUNT 1. Transactions. — June 1. I have notes outstanding as follows: one in favor of William Phraner for $357; one in favor of S. G. Howe for $540; and one in favor of George Fisher for $275.50. June 2. Passed my note to C. M. Loring for $290 in payment of Mdse. bought to-day. June 4. Paid William Phraner in full of my note, his favor, $ ? . June 6. Issued a new note, favor of S. G. Howe, for $300 for note due to-day, $?, and paid him cash for the balance, $?. June 9. Accepted George Brandreth's draft at three days' sight, favor of L. Fisher, for balance of account, $135.70. June 11. Bought groceries, on my note at 30 days, for $259.80. June 15. Paid my note, favor of George Fisher, by giving him cash, $100, and a new note for balance, $ ? . Required, the amount issued, the amount redeemed, and the amount outstanding. 2. Transactions. — June 16. I am owing J. D. Bond, on note, $275; H. G. Hicks, on my acceptance, $257.50. June 16. Gave my note at one month to L. D. Harvey for rent to July 1, $65. June 18. Accepted A. L. Paris's draft at 6 days, favor of William C. Smith, in full of account, $125.50. June 18. Paid cash for my accept- ance, favor H. G. Hicks, due this day, $ ? . June 20. Bought Mdse. on my note at 10 days, of Bell Brothers, $472.80. June 22. Paid J. D. Bond cash in full of my note, his favor, due this day, $ ? . June 23. Accepted W. K. Hicks's draft at 10 days, favor C. L. Sawyer, $197.50. June 27. Paid William C. Smith for my acceptance of June 18, $?. June 29. Passed my note to Frederick Curtiss for ^98.70, in full of account. Required, the amount issued, the amount redeemed, and the amount outstanding. BILLS RECEIVABLE AND BILLS PAYABLE ACCOUNTS 25 EXAMPLES FOR PRACTICE INVOLVING BOTH BILLS RECEIVABLE AND BILLS PAYABLE ACCOUNTS 1. Transactions. — July 2. I have on hand the following negotiable paper: Barnes & Co.'s note for 1 87.90, due July 12; J. C. Bryant's note, due July 14, for $47.25; C. E. Cady's note, due July 10, for $198.75; Hiram Bird's note for $167.50, due July 25; and I am owing on outstanding jjaper, as follows: L. D. Harvey, on my note due July 19, $65; Bell Brothers, on my note due July 3, $472.80; Frederick Curtiss, on my note dated June 29, $98.70; and C. L. Sawyer, on my acceptance due July 6, $197.50. July 3. Paid Bell Brothers cash in full payment of my note, their favor, due this day, $ ? . July 6. Paid my acceptance, favor of C. L. Sawyer, by giving him cash, $100, and my note at 10 days for the balance, $ ? . July 10. Received payment of C. E. Cady, for his note due to-day, $ 100 in cash, and his new note for the balance, $ ? , at 15 days. July 12. Received cash in full payment of Barnes & Co.'s note, due this day, $ ? . July 14. Bought Mdse. of Bell Brothers amounting to $115.75; gave them in payment J. C. Bryant's note, due this day, $ ? , and cash for the balance, $ ? . July 16. Paid Frederick Curtiss cash in full of my note, his favor, $ ? , due this day. July 18. Redeemed my note, in favor of L. D. Harvey, due to-morrow, $ ? , by paying him cash, $40, and my new note at 10 days for the balance, $ ? . July 25. Hiram Bird redeemed his note, due this day, by paying cash, $ 100, and a new note for the balance, at 30 days, $ ? . July 30. Passed my note to Brown Brothers, in settlement of account, $78.50. July 31. Paid L. D. Harvey cash in full of my note, $?. July 31. Received C. H. Child's note at one month, in full of account, $221.50. Required, amount of others' paper received^ my paper issued, others' paper disposed of my paper redeemed, others' paper on hand, and my paper outstanding. 2. Transactions. — Aug. 1. We, Th. E. Student and C. C. Curtiss, enter into part- nership this day under the firm name of Student & Curtiss. Th. E. Student con- tributes, with other resources, a note, his favor, dated July 6, 19 — , drawn at one month without grace, for $ 750, signed by Adams & Briggs ; a draft, his favor, dated July 3, drawn by Davis & Earl on Frink & Gage, at thirty days' sight, for $250, and accepted July 5. The firm assumes, for Th. E. Student, his note at two months, without grace, favor of Hughes & Irving, dated June 4, 19 — , for $75; his acceptance of Jones .& King's draft at sixty days' date, from June 12, 19 — , without grace, for $ 125, in favor of Lane & Myers. Aug. 1. C. C. Curtiss contributes, with other resources, a note made by Newton & Ogden, his favor, dated May 5, at three months, without grace, for $500; a draft, his favor, dated May 5, drawn by Penny & Quincy on Rich and Steel, at 90 days' sight, for $350, and accepted May 17. The firm assumes for C. C. Curtiss his note at three months from May 7, favor of Utley & Vance, for $ 175 ; his acceptance of Wise & Co.'s draft, favor of Young & Zier, for $ 140, drawn May 10, at ninety days, and accepted May 12. Aug. 2. Received Aaron Brown's note at thirty days, for $55, on account. Aug. 3. Bought Mdse. on our note at two months, of Castle & Dunn, for $450. Aug. 6. Received cash in full of Adams & Briggs's note, $ ? . Aug. 7. Paid cash in full of C. C. Curtiss's note, favor of Utley & Vance, $ ? . Aug. 10. Passed our note to Evans & Folds, at ten days, in full of account, for $150. Aug. 11. Paid Th. E. Student's acceptance, favor Lane & Myers, per check, $ ? . Aug. 15. Received cash in full of Rich & Steel's acceptance, favor of C. C. Curtiss, $ ? . Required, the standing of the Bills Receivable account and the standing of the Bills Pay- able account. 26 ACCOUNTS BUSINESS ACCOUNTS Business Accounts are those which are kept for the purpose of ascer- taining the current condition of a business by exhibiting its losses and its gains. Business enterprises are undertaken for the purpose of obtaining a livelihood, or acquiring wealth, and all those accounts which are used to show the progress of the business — the gains or the losses — are called Business Accounts. • A person engaged in the buying and selling of goods would use Mer- chandise account to represent the progress of the business ; one engaged in manufacturing would use Manufacturing account ; one engaged in a professional business, as lawyer, doctor, teacher, etc., would use Service account; one engaged in agency work would use Commission account, etc. Merchandise Account Merchandise means those wares, goods, or commodities which are bought and sold with ^view to profit, but does not include real estate. ^ PURPOSE OF KEEPING A MERCHANDISE ACCOUNT A Merchandise Account is kept for the purpose of showing the cost of goods purchased, the proceeds from the sales, and the gains or losses which result in dealing therein. METHOD OF KEEPING A MERCHANDISE ACCOUNT The value of the merchandise on hand at the time of opening the account, and the cost of all subsequent purchases, are entered on the Dr. side of this account. The proceeds from the sales are entered on the Cr. side of this account. If the goods are all sold, the excess of the Cr. side will show a gain, or the excess of the Dr. side will show a loss. If the goods are not all disposed of, the market value of those remaining on hand must be added to the Cr. side of this account before finding the excess of either side. ILLUSTRATION OF KEEPING A MERCHANDISE ACCOUNT 1. Transactions. — Aug. 1, 19 — . Mdse. on hand is valued at ^1050. Aug. 2. Bought Mdse. of Marshall Field & Co. for cash, .|1575. Aug. 3. Sold Mdse. to E. H. Hallock for cash, ^97.80. Aug. 4. Sold Mdse. to M. Blethen, on credit, ^176.50. Aug. 6. Bought Mdse. of J. Walker & Co., on credit, ^987.50. Aug. 7. Cash sales of Mdse. this day amount to $376.80. Aug. 9. Sold H. S. Parks, on credit, Mdse., $37.50.-— Aug. 10. Sold Mdse. to S. G. Howe, on his note at 60 days, $497.80.-— Aug. 11. Sold H. G. Hicks, on credit, Mdse., $76.40. Aug. 13. Cash sales to-day of Mdse., $246.80. Aug. 14. Value of Mdse. unsold, $2547.80. Required, the cost of Mdse., the proceeds, and the gain or the loss. MERCHANDISE ACCOUNT 27 Dr. (Cost) Form of Ledger Record (Proceeds) Cu. / 'l}a.ttc& o-ru ha^'ivd f060 CiltCf. 8 ^aJi, fi^Ma^k 97 80 /' £ (^ou^krm.^.vto. 1575 // ^ Ifl R&tk&fv, o■■>^ % /76 60 // 6 f.V>oitke.vV^o.. 987 50 // 7 ^cM.k, oftim.. ^atm- 376 80 // 14 Gain U4 90 ff 9 /if. c/. cPa.1^3., cm % 87 60 / ft /O KtU Re.^. f-fcnv-e. ^97 80 / // // /if. ^. /fU/o^, cyyi % 76 ¥-0 / // /3 ^a^k, ^wyv. ^cite^ 2^6 80 /^ JSa.tam^e^ • H Balance, Inventory 254.7 80 ^067 ^0 80 ^067 ^0 CUocf. ^6^7 Total cost, $3612.50; total proceeds, $4057.40; gain, $444.90. 2. Transactions. — Aug. 15. Value of Mdse. on hand, $2547.80. Aug. 16. Bought of George Wilson, on credit, Mdse., $1785. Aug. 17. Sold Thomas Catlin, on credit, Mdse., $176.40. Aug. 18. Cash sales to-day, of Mdse., $237.60. Aug. 20. Sold Theodore Dwight, on his note at 30 days, Mdse., $ 1 98.70. Aug. 21 . Sold W. J. Evans, on credit, Mdse., $47.90. Aug. 22. Cash sales of Mdse. to-day, $247.90. Aug. 23. Sold Charles Carroll, on credit, $18.37, Mdse. Aug. 24. Bought of Thomas Simpson, on ray note at 90 days, Mdse., $548.56. Aug. 29. Bought of Thomas Rand, on credit, Mdse., $374.80. Aug. 31. Value of unsold Mdse., $4190.12. Required, tlie cost of Mdse., the proceeds, and the gain or the loss. Dr. (Cost) Form of Ledger Record (Proceeds) Cr. /6 l}aUo& cyyi koA^ci 26^-7 80 /9- /7 3^. ^attU, o-yv % /76 ^0 ff /6 ^&o-. l/iKUaAf. ^. c/! 6^/-8 66\ ff 20 /SLtURe^. ^v-Ufkt /98 70 ff 29 <^k. Rcunci, (yyi % 87¥- 80 ff 2/ W^. f. €vtt, an % /8 37 X ff 31 Balance, Inventory 4190 12 /3ala/}t(S^& 31 Loss 139 17 6266 /6\ 6266 /6 /Znla. 8/ ^/90 72\ Total cost, $ 5256.16; total proceeds, $5110.99; loss, $ 139.17. 28 ACCOUNTS Special Merchandise Accounts When it is desired to ascertain the gain or the loss resulting from dealing in any particular kind of property, such as dry goods, groceries, live stock, etc., the cost and the proceeds should be entered under a title chosen to represent that property. ILLUSTRATION OF KEEPING SPECIAL MERCHANDISE ACCOUNTS 1. Transactions, — Sep. 1, 19 — . I have on hand dry goods valued at ^3450, and groceries valued at $2975. Sep. 3. Cash sales of dry goods are $174.90; groceries, $157.60. Sep. 4. Sold Otis Pray, on credit, dry goods, $49.50; groceries, $39.70. Sep. 5. Sold D. Holbrook, on credit, groceries, $05.80; dry goods, $54.80. Sep. 6. Sold David Cochran, on his note at 30 days, dry goods, $29.50; groceries, $74.90. Sep. 8. Bought of Amos Kellogg, on my note at 90 days, dry goods, $796.50; groceries, $659.40. Sep. 8. Sold James Bronson, on credit, groceries, $77.40. Sep. 8. Inventory: dry goods, $3745.90; groceries, $3388.10. Required, the gain or the loss on dry goods and the gain or the loss on groceries. Dr. (Cost) JBbxm. of Ledger Record lAi cjaaa V (Proceeds) Cr. / Jn.u&ntavyr 3^60 S (Ha^k //f 90 // 8 mU ia^joiUe. 7^6 60 // ^ HtU S'vay ^9 60 / // 6 A /M(}.'u>ak 6^ 80 X // 6 fSitU, R&<^&iv-a,{}-t& 29 60 X // 8 Balance, Inventory 3745 90 £ata/yi-&nt(yi/i^ ^■S75 6 ^cJi' 2/6 76 // /3 BUu ^OAfoMe. 876 60 // 6 fSiti^ R&€&iv-aM-t& 98 26 // // // ft ^00 /' 13 (EaoJv 1^8 /6 ft SI Gain 194 15 // 20 // /87 76 X // 20 fSLiUy Re^&iv-ou{>-t& /98 60 y^ // 27 &aJv 207 60 JSata/n^e 66 // SI Balance y Inventory 57S8 65 6s^^ 68^^ 66 €. / ¥77 36 ff fO // cAa.2 7^6 7'5 // SO M. 2 860 ¥6 // 31 Gain JfJf 46 /-^ /337 8/ /337 8/ • Dr. Proceeds, iji? 1337.81; cost, $1293.35; gain, $44.4(). (Cost) ^hAypTyUtmjto^ ta BcdytiMl&hb (Proceeds) Or. iq— 6(^UCf. // // /8 31 Gain (^60 627 61 60 30 50 Ctucf. // 20 3/ ofcLciteA.V(^.c4o:2 /050 6^8 76 60 /6¥9 3-5 /6¥9 36 Proceeds, $1649.35; cost, $1587.80; gain, $61.50. EXAMPLE FOR PRACTICE IN KEEPING SHIPMENT ACCOUNTS Transactions. — Sep. 1, 19 — . Shipped wheat to Buffalo, consigned to J. C. Bryant, to be sold on my account and risk, invoiced at .|2150. Sep. 3. Shipped 1000 bus. potatoes to New Orleans, consigned to George Soule, to be sold on my account and risk, invoiced at 45^, |? ; drayage, $17.25. Sep. 5. Shipped corn to Albany, consigned to E. G. Folsom, to be sold on my account and risk, invoiced at $428.50. Sep. 8. Shipped barley to Milwaukee, consigned to R. C. Spencer, invoiced at $1750. Sep. 10. Shipped to Cleveland, consigned to E. R. Felton, rye, invoiced at $1987.50. Sep. 14. Received an account sales of wheat shipped to Buffalo; net proceeds, $2365. Sep. 15. Shipped J. R. Camp, Cincinnati, barley, invoiced at $1590. Sep. 20. Received from E. G. Folsom, Albany, an account sales of corn shipped Sep. 5; net proceeds to my credit are $460.50. Sep. 24. Received from R. C. Spencer, Milwaukee, an account sales of barley shipped Sep. 8 ; net proceeds to my credit are $1649. Sep. 25. Received from E. R. Felton, Cleveland, an account sales of rye shipped Sep. 10; net proceeds to my credit are $2185.70. Sep. 29. Received from J. R. Camp, Cincinnati, an account sales of barley shipped Sep. 15; net pro- ceeds to my credit are $1568.70. Oct. 1. Received from George Soule, New Orleans, an account sales of 1000 bus. potatoes shipped to him Sep, 3; the net proceeds amount I to $ 587.75, for which he inclosed his note at 10 days, with interest, dated Sep. 27, 19 — . Required, the gain or loss on each shipment. 34 ACCOUNTS Real Estate Account Real Estate means houses and lands ; immovable property, as dis- tinguished from personal or movable property. The ownership of merchandise may be transferred from one party to another by simple agreement and delivery ; the ownership of real estate is transferred or conveyed by a deed. A Deed is a writing on parchment or paper, for the purpose of conveying real estate, authenticated by the seal of the party transferring it, and by his acknowledgment to a notary public or other proper official. PURPOSE OF KEEPING A REAL ESTATE ACCOUNT A Real Estate Account is kept for the purpose of sli owing the cost of houses and lands purchased ; the cost of subsequent improvements, repairs, taxes, etc. ; the proceeds from sales and rents ; and the gain or loss resulting from dealing in real estate. METHOD OF KEEPING A REAL ESTATE ACCOUNT The value of real estate on hand at the time of opening the account, and the cost of all subsequent purchases, improvements, repairs, and taxes are entered on the Dr. side of the account. The proceeds from sales and rent are entered on the Cr. side of the account. If the property is all sold, the excess of the Cr. side will show the gain, or the excess of the Dr. side will show the loss. If the property is not all disposed of, the market value of that on hand, together with rents accrued but not paid, must be added to the Cr. side, and the unpaid taxes, etc., must be added to the Dr. side, before finding the excess of either side. ILLUSTRATION OF KEEPING A REAL ESTATE ACCOUNT 1. Transactions. — June 1, 19 — . I own a house and lot on West Main St. valued at $3750. June 2. Bought a lot and two-story bouse, No. 47 Loring Av., for cash, 12900. June 9. Paid $15 cash for repairs on AVest Main St. house. June 15. Received cash for rent of AVest Main St. house, $35. June 16. Paid taxes on Loring Av. property, $75. ----June 18. Bought store and lot. No. 25 Broadway, on my note, for $3150, secured by mortgage on the property. June 20. Received cash for rent of Loring Av. property, $27.50.---- June 23. Received cash for rent of Broadway store, $115. June 25. Sold West Main St. house and lot for cash, $4000. "--June 26. Paid cash for repairs of store, 25 Broadway, $63.75. June 27. Sold my Loring Av. property for $ 3200 on mortgage. .time 30. Estimated value of my Broadway property is $ 3300. Required, the gain or the loss in dealing in real estate. HEAL ESTATE ACCOUNT 35 Dr. (Cost) Form of Ledger Record (Proceeds) Cr. /9- / ff.vL.ia.maU 3/60 /9- /6 ^(mA, la. TriaU 36 ft 2 €a^k, Lo-il/ncfCLv-. 2^00 // 20 " £avCn(^6l-v-. 27 60 /f ^ - 10: nuu 16 // 23 " 26JS'ci'if. //6 // /6 " L(yivyic^Civ~. 76 // 26 " W. IflouU ^000 // /8 d'.V.£. 26 fS'cU^ 3/60 f/ 27 Tflavt. fLcyiLyicfCiv-. 3200 // 26 (^aoA, " 63 76 // SO Balance, Inventoi^ 3S00 " so Gain 723 75 /-^ /0677 60 /0677 60 fun& SO 3300 f Total proceeds, $10,077.50; total cost, $9953.75; gain, $723.75. 2. Transactions. — July 2. I have on hand a store and lot, No. 25 Broadway, valued at $3300. July 2. Bought, for cash, house and lot, No. 47 Oak St., $4250. July 3. Received cash for rent of store for July, $115. July 5. Paid cash for insurance of house, $37.50. July 6. Received cash for rent of house, July, $45. July 7. Bought house and lot, 97 East Main St., for cash, $7500. July 20. Sold store and lot, 25 Broadway, for cash, $3600. July 21. Paid cash for insurance on house, 97 East Main St., $50. July 25. House, 47 Oak St., destroyed by fire July 18; received cash in settlement of loss, $3000. July 30. Paid cash for plumbing in house, 97 East Main St., $ 55. July 31. Value of East Main St. property, $7500; lot, 47 Oak St., $1000. Required, the gain or the loss. Dr. (Cost) Form of Ledger Record (Proceeds) Cr. fuUf 2 ^.VjC. 26 £' hi' if 3300 '9- 3 ^^v,26^'ci'if //6 2 /-f.VL.^/ilak^'L ^260 // 6 // ^7 Hal ^t. y-6 // 6 ^a^k, Jyt^. /' 37 60 // 20 // 26 fS'cL'if 3600 // 7 f-f.VL. €. mcuU 7600 ff 26 - ^7 (Hak ^t. 3000 // 2/ ^OQyk, JuQ,. t' 60 f/ SI Bal., Invt.jE. Main 7500 // 30 // ^Uuyyv{)-in(f 66 // // Oak St. 1000 // 31 Gain 67 50 ^--^ 16260 00 /6260 00 futif\3/ 8600\ Total proceeds, $15,2()0; total cost, $ 15,192.50 ; gain, .SG7.50. 36 ACCOUNTS Special Real Estate Accounts To ascertain the gain or the loss on any distinct piece of property, the cost and the proceeds should be recorded under a special title represent- ing that property. ILLUSTRATION OF KEEPING SPECIAL REAL ESTATE ACCOUNTS Transactions. — July 2, 19 — . Bought house and lot, No. 97 Colfax Av., for $12,500, cash. July 6. Bought store and lot, No. 74 Center St., for $15,000, half cash and " half mortgage. July 7. Paid cash for repairs on Colfax A v. property, $18.75. July 7. Paid cash for repairing roof of store on Center St., $75.60. July 10. Paid cash for insurance on Colfax A v. property, $47.50, and on Center St. property, $67.50; total, $?. July 12. Paid cash for taxes on store and lot, 74 Center St., $152.75. July 16. Received cash for rent of house, 97 Colfax A v., for July, $110. July 16. Received for rent of first floor and basement of store, 74 Center St., for July, $180. Aug. 16. Received cash for rent of house, 97 Colfax Av., for August, $110. Aug. 20. Store, No. 74 Center St., was destroyed by fire Aug. 15; received cash from the insurance company, in full settlement of loss, $10,000. Aug. 31. Estimated value-oi Colfax Av. property, $ 14,000 ; value of lot on Center St., $3000. Required, the gain or the loss on each piece of property. Dr. Form of Ledger Record (Cost) H(m/3bb 2^ Lot, f 7 (^0tjCi% CLv-. (Proceeds) Cb. ^ (^AM^h, /2600 /6 ^a^/v, Re.nt //O " 7 // R&^^C'hQy /8 76 Clu(f. /6 // // f/O // /O '/ JnQ^uva>n(S^& ^7 50 // 31 Balance, Inventory 14000 Aug. 31 Gain 1653 75 = ^-^ 1^220 00 /^^20 00 CCiuf. 3/ /^OOO Total proceeds, $14,220; cost, $12,566.25; gain, $1653.75. Dr. (Cost) ^tahb y^ Lot, JV- (S^&nt&V M. (Proceeds) Cr. 6 €a^kVmait.S>ay foOOO /6 ^UlqJi, Rtnt /80 ff 7 'f R&'^xii^ 75 60 6iu.cf. 20 // Jno,. ^0-. /OOOO // /O 'f Jno^uvcLft^e' 67 60 // 31 Balance Inventory 3000 f/ /2 /52 75 // 31 Loss 2115 85 /6i!(jf5 85 /52(^5 85 (Zuxf 8/ 3000 Cost, $15,295.85; total proceeds, $13,180; loss, $2115.85. REAL EJSTATE ACCOUNTS 37 EXAMPLES FOR PRACTICE IN KEEPING REAL ESTATE ACCOUNTS 1. Transactions, — Aug. 1. I have in possession a house and lot, No. 79 Broad St., vakied at |4500, and a store and lot, No. 94 East Main St., valued at $12,000. Aug. 4. Bought of John S. Pillsbury, on my note at 3 years, secured by mortgage on the property, house and lot, 54 Pillsbury A v., for $9575. Aug. 10. Paid cash for repairs on house, 79 Broad St., $127.50. Sep. 1. Received cash for rent of house, 79 Broad St., $40. Sep. 1. Received cash for rent of store, 94 P:ast Main St., $105; and for rent of offices on second floor, $42, for August. Sep. 1. Received cash for rent of house and lot, 54 Pillsbury Av., from Aug. 10 to date, $50. Sep. 15. Paid cash for new walk in front of store, 94 East Main St., $175. Oct. 1. Received cash in full for rent of house and lot, 54 Pillsbury Av., for September, $75. Oct. 1. Received cash for rent of house, 79 Broad St., for September, $40. Oct. 1. Received for rent of store, 94 East INIain St., $105; for rent of offices, second floor, $42, for September. Oct. 10. Paid cash to Charles Wilkins for plumbing in house on Pillsbury Av., $14.75. Oct. 15. Paid taxes on house and lot, 79 Broad St., for one year, $i}7.()0. Oct. 15. Paid cash for taxes on store and lot, 94 East Main St., $100.30. Oct. 31. Paid Thomas Forster's bill for carpenter work on Pillsbury Av. property, $37.50 in cash. Nov. 1. Received $75 of Dr. W. H. Hall for rent of house and lot, 54 Pillsbury Av., for the month of October. Nov. 1. Received cash for rent of house, 79 Broad St., $40; for rent of store, $105; for rent of offices, $42; total, $? . Dec. 1. Received cash for rent of house, 79 Broad St., $40. Dec. 31. House and lot, 79 Broad St., is valued at $5000; store and lot, 94 East Main St., at $12,500; house and lot, 54 Pillsbury Av., at $9750; rent due and unpaid on house, J9 Broad St., one month, $40; on store and offices, 2 months, at $147, $ ? ; on house and lot, 54 Pillsbury Av., for 2 months, at $75, $ ? . Required, (he r/ain or the loss on each piece of property. 2. Transactions. — Sep. 1, 19 — . I own the following property : house and lot, 97 Park Av., valued at $13,500; three-story store and offices, 27 Front St., valued at $16,000; office building, 47 and 49 Broadway, $11,000. ----Sep. 1. Paid cash for insurance of Park A v. house, for $12,000, at |%, $ ? ; Front St. store, $12,000, at 1^%, $?; Broadway building, $9000, at 1|%, $?.---- Sep. 3. Collected cash for rent for September, as follows: Park Av. house, $100; Front St. store, $125; Front St. offices, $96; Broadway building, $180. Sep. 15. Paid cash for water tax on Broadway building, $18.75. Sep. 20. Paid water tax on Front St. property, $22.30.--- Sep. 22. Bought house and lot, 14 Gold St., for cash, $7500. ----Oct. 1. Received cash for rents for October as follows: Park A v. house, $100; Front St. store, $125; Front St. offices, $96; Broadway building, $180; Gold St. house, $45. Oct. 13. S. C. Smith presents his bill for repairs as follows, which I allow: On Broadway building, $28.75; on Front St. store, $29.60; on Park Av. house, $41.60. Nov. 1. Collected rents for November, in cash: Park Av. house, $100; Front St. store, $125; Front St. offices, $96; Broadway building, $180; Gold St. house, $45.---- Nov. 10. Paid cash for plumbing, as follows: Park Av. house, $15.75; Front St. store, $8.30; Broadway building, $22.40; Gold St. house, $17.90. Dec. 1. Collected cash for rent for December, as follows: Park Av. house, $100; Front St. store, $125; Froht St. offices, $96 ; Broadway building, $180; Gold St. house, $45. Dec. 31. Value of Park A v. property, $ 13,750 ; Front St., $ 16,000 ; Broadway, $ 10,000 ; Gold St., $7250. Required, the gain or the loss on each piece of property. 38 ACCOUNTS Interest Account If we use other people's money, we may pay them for the use thereof ; and if other people use our money, we may receive pay from them for its use. This compensation for the use of money is called Interest. PURPOSE OF KEEPING AN INTEREST ACCOUNT An Interest Account is kept for the purpose of showing the cost of using others' money, and the income from loaning our money. METHOD OF KEEPING AN INTEREST ACCOUNT The value of interest accrued in our favor and owing to us at the time of- opening the account, and the subsequent cost of using the money of others, are entered on the Dr. side of the Interest account. The value of interest accrued against us and owing by us at the time of opening the account, and the subsequent income from loaning our money, are entered on the Cr. side of this account. At the time of closing the account, if no interest has accrued which remains unpaid, the excess of the Cr. side will show a net gain ; and the excess of the Dr. side will show a net loss. If any interest has accrued in our favor which has not been entered, it must be added to the Cr. side ; and if any interest has accrued against us which has not been entered, it must be added to the Dr. side, before finding the excess of either side. Discount. — A discount or abatement allowed by one party to another for the payment of a debt before it is due, is equivalent to payment for the use of the present worth of the debt. If the discount is allowed hy us, the amount of the discount is entered on the Dr. side of Interest account ; and if the discount is allowed to us, its amount is entered on the Cr. side of this account. Discounts calculated on debts due in the future are entered in opening or closing Interest account, on the same principle as that which governs the entries of accrued interest. ILLUSTRATION OF KEEPING AN INTEREST ACCOUNT 1. Transactions. — Aug. 1. The interest accrued on my outstanding notes amounts this day to ^27.30. Aug. 1. The interest accrued on others' notes .which I hold, amounts this day to ^49.60. Aug. 4. Paid for interest due on my note this day, ^7.25. Aug. 8. Received cash for interest due on D. L. Kiehle's note, ^17.42. Aug. 13. Paid cash for interest on my note, ^21.90. Aug. 15. Received cash from A. D. Brown, for interest now due on his note, f 35.90. Aug. 18. Received cash from O. V. 'i'ousley, for interest on his note, $35.47. Aug. 25. Received cash for interest due from C. B. Gilbert, $14.75. Aug. 31. T am owing interest on outstanding notes, $82.79; interest accrued ou others' notes which I hold, amounts to $19.47. Required, the net grdn or the net loss in interest for the month of August. INTEREST ACCOUNT 39 (Cost) Form of Ledger Record (Proceeds) Cb. /^„ 1 ,q— ^'^ CLUCJ: / (Jyvv-cm^tiybi^ ^/-q'^60 (Lwcf. / Jy^ue^nto-vy, £7 30 // ^ ta^k 7 £5 // 6-t& 6 ^6 ff 28 // // ^2 ^6 tf 29 Balance f Inventory 64 30 '' 29 Balance, Inventory 72 H ft 29 Gain 73 91 £ala.ni?^& 20(? 6o\ 20^ 60 ^e.^.^29 72\/¥- c/f^.lJ'^ 6^ 30 Total proceeds, $20S).50; total cost, $135.59; net gain, $73.91, 40 ACCOUNTS EXAMPLES FOR PRACTICE IN KEEPING AN INTEREST ACCOUNT 1. Transactions. — Oct. 1, 19 — . The interest accrued on my outstanding written obligations amounts to $21.45, and the interest accrued on notes which I hold amounts to $;36.95.----Oct. 2. Paid S. S. Russell for interest on my note now due, $12.47. Oct. 4. Received from I. C. Jones for interest on his note due to-day, $15.61. Oct. 6. The Homeville Bank has discounted my note at 90 days, retaining $ 12.75 for interest. Oct. 8. Thomas L. Bell has prepaid his note, my favor, and I have allowed him the interest, $24.75. Oct. 10. Paid my note of $300, with interest at 6% for 6 months and 3 days, $ ? . Oct. 12. Prepaid my note, favor of Otto Miller, and was allowed the discount, $18.50. Oct. 14. Received of C. L. Gilbert cash in full of his note and interest ; interest, $ 15.60. Oct. 15. Henry Hahn has prepaid his note, my favor, and I have allowed him the regular discount, $ 9.78. Oct. 15. I am owing accrued interest on my outstanding notes, $11.50, and there is owing me $7.60 on interest-bearing notes which I hold. Required, the cost of interest, the proceeds of interest, and the net gain or the net loss. 2. Transactions. — Oct. 15, 19 — . The discount on my outstanding notes to maturity is $33.85; the discount on not^s-in my favor to maturity is $24.25; the interest accrued on my outstanding notes is ^27.15; and the interest accrued on others' notes which I hold is $37.48. Oct. 16. Received from M. H. Hurd $9.74, in payment of interest on his note. Oct. 18. Paid C. H. Spencer $13.50, for interest on my note, his favor. Oct. 19. C. H. Chute has prepaid his note, my favor, and I have allowed him the dis- count, $13.40. Oct. 20. Prepaid my note, favor of W. B. Hixon, at a discount of $17.96. Oct. 22. Collected $19.76 of Newton Rowe for interest on his note, my favor. Oct. 25. Prepaid my note, favor of Henry Dole, at a discount of $4.27. Oct. 31. Discount on my outstanding notes to maturity is $ 10.50 ; discount on others' notes, my favor, to maturity is $ 9.75 ; interest accrued on my outstanding notes is $ 16.25 ; interest accrued on others' notes, my favor, is $22.72. Required, the cost of interest, the proceeds, and the net gain or the net loss. 3. Transactions. — Nov. 1, 19 — . The interest accrued on my outstanding written obligations amounts to $86.40; and the interest accrued on others' notes, which I hold, amounts to $107.60; the discount to maturity on my outstanding written obligations not bearing interest is $49.60; and the discount to maturity on others' notes, my favor, not bearing interest is $39.65. Nov. 10. Paid J. H. Dunn cash for interest due on my note, his favor, $37.95. Nov. 12. Received from George Burrill $47.90 for interest on his note, my favor. Nov. 15. C. H. Chute has prepaid his note, my favor. and I have allowed the legal discount, $7.29. Nov. 20. Prepaid my note, favor of A. Anderson, and he has allowed the legal discount, $37.40. Nov. 22. Paid R. 1). Russell in full of my note and interest; face of note, $200; interest, $14. Nov. 27. Robert Jamison has prepaid his note, my favor, and I ha-ve allowed the discount, $ 16.40. Nov. 30. Interest accrued to date on others' notes which I hold, $ 65.25 ; interest accrued on my outstanding notes, $44.85; discount at legal rate on notes, in my favor, not bearing interest, $ 14.65 ; discount on my outstanding written obligations not bearing interest, $ 10.80. Required, the cost, the proceeds, and the net gain or the net lo. postage stamps, $3.25. Mar. 15. Paid cash for cleaning office, $ 2.75. Mar. 20. Received cash for use of desk room in office for the month, $10. Mar. 31. Paid clerk hire for the month, $65. Mar. 31. Paid drayage for the month, $11.75. Mar. 31. The value of unexpired rent is $300; unexpired insurance, $55; unused coal, $11.25. Required, the net cost of expenses for the month. Dr. (Cost) §%p &7^^& (Returns) Cb I. /^ — / €xiLQyk, R&^^t ^50 20 ^(mA, ^&qA Rao-ni /O /f / " JnoyiAA^c^n^a 60 ff 31 Bal.j Invt.j Bent 300 // 2 // dLaat 22 50 ff ff „ Ins. 55 // 3 t> ■^tat\x>n&\Af 7 25 ff ff Coal 11 25 // 5 // ^afitacfe. 3 25 ff ff Loss 2Jf6 25 15 3/ tf Ue.xJc /i^Ue. 2 65 75 y // 3/ tf ^va.jacj& / / 75 ^ 622 50 622 50 mav. 3/ 366 25 Total cost, $622.50; total returns, $376.25; net cost, $246.25. r EXPENSE ACCOUNT 43 EXAMPLES FOR PRACTICE IN KEEPING AN EXPENSE ACCOUNT 1. Transactions. — Jan. 1, 10 — . Bought of S. C. Gale, on credit, 4 tons of coal, at $8, $? . Jan. 2. Paid W. H. Lyon cash for rent of store for 8 months, at .^125, $?. Jan. 3. Bought of Western Fuel Company, on credit, 2 cords of maple wood, at $6, f ?. Jan. 4. Paid cash for postage stamps, $3.()0. Jan. 5. Paid Brown, Treacy & Co.'s bill for stationery for office use, $14.75. Jan. 16. Paid cash for clerk hire to date, $35. Jan. 20. Received from S. A. Reed $9.50 cash for desk room in office for the month of January. Jan. 31. I am owing Henry C. Butler for services as bookkeeper for the month, $75; due Frederick II. Curtiss for services as clerk, $i^. The estimated value of coal unused is $16; the estimated value of wood unused is $6; unexpired rent for 2 months at $125 is$? . Required, the net cost of expenses for the month. 2. Transactions. — Apr. 1, 19 — . Paid John Thompson $150, cash, for rent of office for 3 months. Apr. 3. Paid cash for cleaning, $1.50. Apr. 5. Received cash from George Daggett for use of office 3 months from Apr. 1, $100. Apr. 7. Paid $3.20 for postage stamps for office use. --^- Apr. 15. Paid Jesse Curtiss for service as clerk to date, $20. Apr. 18. Bought for office use stationery, $12.30, paying cash. Apr. 20. Paid janitor's wages to date from Apr. 1, $20. Apr. 30. Paid gas bill for the month, $7.10. Apr. 30. The unexpired rent for 2 months is valued at $ 100, and the unexpired rent for use of office is worth $66.67. Apr. 30. I am owing Jesse Curtiss for services as clerk to date, $ 20. Apr. 30. I am owing janitor for services rendered from April 20 to date, $ 10. Required, the net cost of expenses for the month. 3. Transactions (Expense and Furniture and Fixtures). — May 1. Paid James Barnes cash for putting in counters and shelving, $630. May 1. Paid PMward Forster cash for three months' rent in advance, $450. May 3. Bought of Boutelle Brothers, on credit, office desk and chair, $ 175. May 4. Paid cash for postage, $7.50. May 5. Paid the Times Publishing Co. cash for advertising, $62.50. May 6. f*aid Keyser & Co. cash for papering office, $37.50. May 8. Bought of M. D. Rowley, on my note at 90 days, a burglar-proof safe, $175. May 9. Paid George Sherer cash for painting counters and shelving, $20. May 10. Paid for clerk hire in cash, $50. May 11. Received cash for rent of one half of store for 3 months from May 1, in advance, from J. L. Dobbin, $300. May 12. Paid Phenix Insurance Co. cash for insurance on stock of goods, furniture, and fixtures, for 1 year, at 2 % on face of policy of $15,000, policy dated May 1, $?.---- May 13. Paid .Tames Barnes cash for plate glass put in place of broken one, $87.50. INIay 15. Allowed John A. Schlener & Co.'s bill for blank books and stationery ainountihg to $54.70, on account. May 20. Paid cash for clerk hire, $50. May 30. Paid gas bill for the month, $18.75. May 31. There is due for services rendered by clerks and not paid, $ 150 ; 1^ tons of coal have been used during the month, at $ 8 per ton, $ ? ; the furniture and fixtures are worth 90% of the cost, $ ? ; the insurance is valued at || of its cost, $ ? ; the value of the unexpired rent of store is | of the cost, $ ? ; and the unexpired rent of the half store relet is worth | of the amount received, $ ? . Required, the net cost of expenses, and the loss on furniture and fixtures. 44 ACCOUNTS PROPRIETARY ACCOUNTS Proprietary Accounts are those which are kept for the purpose of ascertaining the relation which the owner, or owners, of a business sustain to it, by exhibiting investments and withdrawals. Sole Proprietor Account A Sole Proprietor of a business is one who is an exclusive or sole owner. PURPOSE OF KEEPING A SOLE PROPRIETOR ACCOUNT An account is kept with a sole proprietor, under his own name, or under the title Stock, for the purpose of showing the relation which he sustains to the business ; that is, what the business owes him or what he owes the business. METHOD OF KEEPING A SOLE PROPRIETOR ACCOUNT The value of the property invested in the business by the proprietor at its commencement, as well as all subsequent investments, is entered on the Cr. side of his account. The debts of the proprietor assumed by the business at its commencement, and all sums withdrawn at any time, are entered on the Dr. side of his account. At regular times the net gain of the business is entered on the Cr. side of his account, or the net loss is entered on the Dr. side. The excess of the Cr. footings will, at such regular times, show the net capital of the business, that is, the proprietor's net investment ; the excess of the Dr. footings, at such regular times, will show the net insolvency of the business. It is not unusual for a proprietor to have two accounts, one of which, as above, will show his investment, and the other his temporary dealings with the business. The latter account is known as his personal or private account. ILLUSTRATION OF KEEPING A SOLE PROPRIETOR ACCOUNT 1. Transactions. — Jan. 2, 19 — . I invested in my business $5000 in cash. Jan. 2. I am owing Frank Forbes $250, and Charles Kent $75, and these debts are assumed by the business. Mar. 1. Made an additional cash investment of $2500. Apr. 16. Withdrew for personal, temporary use, cash, $150. May 1. Made an additional cash investment of $8000. June 1. Returned the amount withdrawn Apr. 16, $150. June 14. Withdrew for personal use, Mdse., $75.80. July 2. Returned in cash the amount withdrawn June 14. July 2. The net gain in the business for the past six months is $917.80. Required, my present relation to the business as proprietor. SOLE PROPRIETOR ACCOUNT Form of Ledger Record (Withdrawals) o/fly. <0. cfv14.d&flV (Investments) 45 Ck. 2 <^'bCLn^ <^av{)-&Q. 260 fCf- 2 (Eao^k 6000 // 2 ^kavt&a- /C&nt 76 moLi. / /f 2600 July 2 Bal, Net Capital 11092 80 mcuif / V SOOO hh 2 ^/r 80 /f^/7 80 //^/7 80 ^uty 2 / /0^2 80 Invested, $11,417.80; withdrew, $325; net investment or capital, $11,092.80. Dr. S^fb. (D, <^tud&9tt, < S^tV'Stxy'ivdt Ch /6 ^ 160 76 80 / 2 /60 76 80 226 80 226 80 Withdrew, $ 225.80 ; returned, $225.80. Account balanced. 2. Transactions. — Feb. 1, 19 — . Invested in business this day, cash, $2000. Feb. 1. I am owing Charles Wales on my note $ 1500, which is assumed by the business. Apr. 2. Made an additional cash investment of $500. May 1. The net loss for the past three months is $175.50. June 15. Withdrew for personal use, cash, $150. ----July 2. Made an additional cash investment of $250. Aug. 1. The net loss for the past three months is $1143.75. Required, my present relation to the business as proprietor. Note. — The investment account and the per.sonal account are combined in the following ledger record. Dr. (Withdrawals) J tV. (o. ott/HcL^Tlt (Investments) Cr. / Bitto, S^CLi^aAt& /dOO / (laoA 2000 may- / £aa^ /76 60 Clji^'L. 2 // 600 fun& /6 da^k 160 futy 2 ft 260 CL^tcf. / //¥-d 76 Aug. 1 Balancey Insolvency 219 25 2(^^6^ 26 2^69 26 (ZlLCf. / 2/^ 26 Investments, $2750; withdrawals and losses, $2969.25; insolvency, $219.25. 46 ACCOUNTS Partnership Accounts A Partnership is an association of two or more persons who join together their money, goods, labor, and skill, or any of them, in a business, with an understanding that there shall be a sharing of profit between them. A Partner is one who shares, as a member of a partnership, in the management, or in the gains or losses of a business. PURPOSE OF KEEPING PARTNERS' ACCOUNTS When two or more persons are united in the ownership of the same business as a firm or partnership, their respective interests are recorded under their own individual names. These accounts with the individual partners are kept for the purpose of showing the individual relation of each partner to the business. METHOD 0>N^ KEEPING PARTNERS' ACCOUNTS The value of the property invested by each partner is entered on the Cr. side of his account, ^he individual debts of each partner which are assumed by the business, and all sums withdrawn by each, are entered on the Dr. side of his account. Each partner's share of the net gain is entered on the Cr. side of his account, or his share of the net loss is entered on the Dr. side of his account. After the net gains have been credited or the net losses debited, the excess of the Cr. footings of each partner's account will show his net interest in the business, or the excess of the Dr. footings will show his share of the firm's insolvency. Each partner may have two accounts — one, an investment or perma- nent account, and the other a temporary or personal account. In the absence of any contract to the contrary, the net loss or the net gain is divided equally between the partners. ILLUSTRATION OF KEEPING PARTNERS' ACCOUNTS Transactions. — Apr. 2. W. W. Folwell and D. L. Kiehle are partners. Folwell invests cash, $ 4500 ; Kiehle invests Mdse., % 4000. The firm assumes an account against Folwell, in favor of E. A. Sheldon, for $ 250 ; and a note signed by Kiehle, in favor of C. C. Curtiss, for $300. Apr. 20. Paid a claim against Folwell for $250, not assumed Apr. 2. Apr. 25. ' Paid a claim against Kiehle for $200, not assumed Apr. 2. May 1. Folwell draws out for personal use, cash, $100. May 10. Kiehle withdraws for personal use, $75, cash. May 15. Folwell invests $1500, cash. May 21. Kiehle invests store and fixtures, valued at $5000. June 11. Folwell draws out cash for personal use, $125. June 15. Kiehle draws out for personal use, Mdse., $150. June 30. The firm owes Folwell 3 months' salary, at $200, and Kiehle 3 months' salary, lat $200. July 2. The net gain of the business amounts to $1250. Folwell's share is I, and Kiehle's share is |, according to contract. Required, the relation of each partner to the business. Dr. PARTNERS' ACCOUNTS Form of Ledger Record lA}-. W^. o/'Ol/W-ctt (Partner Account) 47 Cb. ft July 2 20 2 €. CC. ^k&CcLyyi Bal, Net Interest 260 260 5500 2 16 // ^^600 /600 6000 00 6000 00 \futj 2 6600 Dr. Invested, $(5000; withdrew, $500; net interest in firm, $5500. ^. . W. Sotwdt, S>thQjynAt Cr. 7na.y June, July / // 2 ^OUQ.k // Balance /OO 126 875 \/9- SO 2 ^aL,S'yn..@f200 600 600 //OO 00 //OO 00 \fa4.iAf 2 876 Total Cr., $1100; total Dr., $225; firm owes Folwell, $875. Dr. ^. L. f(ptktb, S^t'i^onat Cf L. fun& July /O /6 2 £aa.k Balance 76 /60 1125 /^- SO 2 M.,S^.@f200 600 760 /S60 00 /S60 00 \futy 2 //26 Total Cr., $1350; total Dr., $225; firm owes Kielile, $ 1125. 48 ACCOUNTS EXAMPLES FOR PRACTICE IN KEEPING SOLE PROPRIETOR ACCOUNT 1. Transactions. — Aug, 1. The resources of my business are: cash on hand, ^3975.50; notes on hand, ^ 1795.75 ; Mdse. on hand, per inventory, ^7960; store and fixtures, valued at ^0500; amounts due me on personal accounts, ^2750.30. The lia- bilities of the business are: amounts due others on personal accounts, $1890.50; notes and acceptances outstanding, ^ 1375. Dec. 31. I have withdrav^^n for personal use since Aug. 1, $1475; goods from store for family use, $560.75. Dec. 31. The net loss of the business from Aug. 1 to date has been $496.50. Required, my present relation to the business. 2. Transactions. — Jan. 2. The resources of my business are : cash on hand, $ 175.50 ; funds on deposit in bank, $3796.45; negotiable paper on hand, $2750; Mdse. on hand, as per inventory, $12,465.75; amount due me on personal accounts, $1937.50. The lia- bilities of my business are : amounts due others on personal accounts, $ 675 ; notes and acceptances outstanding, $3750. Mar. 1. Added $12,500 cash to my investment. Apr. 4. Drew out cash for personal use, $276.40. May 1. Added to my invest- ment, negotiable paper, $1500. June 30. Drew out cash for personal use, $115. June 30. The net gain for the^ast six months amounts to $1795.60. Required, my present investirient. EXAMPLES FOR PRACTICE IN KEEPING PARTNERS' ACCOUNTS 1. Transactions. — C. C. Curtiss and J. L. Hodgmire are partners. Apr. 2. Curtiss invests cash, $10,000; Mdse., valued at $15,000. Hodgmire invests cash, $8000; store and fixtures, valued at $9000. Curtiss owes H. G. Hicks, on account, $3000, which debt the firm assumes. Hodgmire owes D. C. Bell, on note at 90 days, $500, which the firm assumes. July 2. Curtiss makes an additional investment of personal accounts, aggre- gating $2500. Oct. 1. Hodgmire adds to his investment, in promissory notes due him, $1800. Dec. 1. The firm pays S. C. Gale's draft on Curtiss for $575, not assumed Apr. 2. Jan. 2. The firm pays a note signed by Hodgmire, favor W. G. Smith, for $250, which was not assumed Apr. 2. Jan. 2. The gains to date have been $5750. Required, the relation of each of the partners to the business. 2. Transactions. — May 1, 19 — . W. C. Smith and A. B. Todd have entered into copartnership. Smith contributes cash, $7425.83; store and fixtures, $12,500; personal accounts due him, $6528.87; bills receivable due him, $3427.96. Todd contributes per- sonal accounts due him, $5427.47 ; Mdse. as per inventory, $15,728.75 ; written promises due him, $748.25. Smith's liabilities assumed by the firm are: amounts due others on personal accounts, $1400 ; on notes, $249.78. Todd's liabilities assumed by the firm are : amounts due others on personal accounts, $1500; on notes, $2575. July 17. Paid John I. Gordon's sight draft on A. B. Todd favor of Charles J. Barnes for $120, debt not assumed May 1. Aug. 15. Paid Hiram H. Gail's draft, drawn payable on de- mand, for $95, on A. B. Todd in favor of W. C. Smith, debt not assumed May 1. Sep. 15. Collected A. B. Todd's personal claim of $215 against Charles E. Cady, which sum A. B. Todd allows to remain in the firm as an additional investment. Dec. 31. The firm has paid cash for personal accounts against Smith which were not assumed, $722.90.---- Dec. 31, 19—. The net gain to date amounts to $9476.50. Required, the net interest of each partner. COMPLETE BUSINESS RECORD 49 COMPLETE BUSINESS RECORD In the preceding illustrations each account has been considered sepa- rately, and without reference to the relation which it sustains to other accounts, the purpose being to teach the individual characteristics and use of the separate accounts presented. In the transactions given for illustrations, only one element of a trans- action has been considered. We now come to the consideration of the two elements which are found in every business transaction ; viz. the debit element and the credit element. A complete record of any business transaction must show both of the elements named, and will require entries in two or more accounts. COMPLETE BUSINESS RECORD ILLUSTRATED 1. One Debit Entry and One Credit Entry 1. Transaction. — Jan. 2, 19 — . Bought of Eld ward Forster, on credit, Mdse. imounting to $275.25. Dr. TlUl^fldTlcLUt Or 2 ScLw-ouvcl S^avQZ&v 273 26 Dr. Sclw-duL SavQyttv Or. 2 rncUe.. 275 25 i A complete record of this transaction requires an entry on the Dr. nde of Mdse. account, to show the cost of the Mdse. purchased, and also an entry on the Cr. side of Edward Forster's account, to show the amount which is due him. In this record there are two facts recorded, requiring one Dr. entry and one Cr. entry; and there are two accounts involved in the com- plete record. 2. Transaction. — Feb. 1, 19—. Sold A. Sherman, on credit, Mdse. amounting to 1987.50. Dr. l?lth(^ka/}^(ii/^ Cr. CC. of/t&vyyLai^ ^8/ 5i 50 Dr. ACCOUNTS Cr. / mcU&. 98/60 A complete record of this transaction, which involves two accounts, requires an entry on the Cr. side of Mdse. account to show the proceeds from the sale of Mdse., and also requires an entry on the Dr. side of A. Sherman's account to show his indebtedness. 2. Two Debit Entries and One Credit Entry 3. Transaction. — Mar. 1, 19 — . Sold Charles Hale Mdse. amounting to 14276.50, and received cash, f 2276.50, in part payment, and his note at 90 days for the balance. Dr. ^d^'fu Cr. / mcUe.. 2276 ■50 Dr. 8(ll9^ f(mbLvci{}lt Cr 19- / mcUe.. 2000 00 Dr. 7l\b\^h.ciruivdLt Cr • / ^'wn.cLvl&Qy ^276 60 A complete record of this transaction, which involves three accounts, requires an entry on the Dr. side of Cash account, to show the receipt of cash, 82276.50; an entry on the Dr. side of Bills Receivable account, to show the note received, $2000; and an entry on the Cr. side of Mdse. account, to show the proceeds from the sale. It will be seen that the sum of the Dr. items equals the Cr. item. 3. Oyie Debit Entry and Two Credit Entries 4. Transaction. — Apr. 2, 19 — . Bought of James Dunn, Mdse., $7460.50; gave in part payment cash, $3500, and my note at 3 months for the balance, $3960.50. COMPLETE BUSINESS RECORD 51 Db. THtviJtaAvcLl^b Cr. 2 'zfzvndvv&a^ 7^60 60 Dk. &mk Cr. fCf— 2 mcU&. S600 00 Dr. fSltU. S^d^Mt Cb. 19- ^?yicUe>. 3^60 60 A complete record of this transaction, which involves three accounts, requires an entry on the Dr. side of Mdse. account, to show the cost of the Mdse. purchased, i 7460. 50; an entry on the Cr. side of the Cash account, $3500, to show the payment of cash; and an entry on the Cr. side of Bills Payable account, to show the issue of our note, $3960.50. It will be seen that the sum of the Cr. items equals the debit item. 4. Two Debit Entries and Two Credit Entries 5. Transaction. — May 1, 19 — . Bought of William Windom, dry goods, 11750.25; groceries, ^f 2300.50 ; gave in payment my draft on John Rowe for |2000, and my note at 30 days for the balance, $2050.75. I Dr. ^mf ^oodf^ Cr ■ / '-ficyiclv'i&Qy 1760 26 Dr. Sux^thVt^ Cr. L / ^iirucLii&Q, 2300 60 1 \ Dr. JofurU f^OU't Cb. k — . 7^4- / ofund'LV&a' 2000 00 ,52 ACCOUNTIS Dr. 'Lt'oi S^dyal^tb Cr. may. / c/icKclvvea^ 2050 76 A complete record of this transaction, which involves four accounts, requires an entry on the Dr. side of Dry Goods account, to show the cost of dry goods, $1750.25; an entry on the Dr. side of Groceries account, to show the cost of groceries, $2300.50; an entry on the Cr. side of John Rowe's account for the amount of my draft on him, 82000 ; and an entry on the Cr. side of Bills Payable account, to show the issue of my note for the balance, 12050.75. It will be seen that the sum of the Dr. items is equal to the sum of the Cr. items. 5. Several Deh^t Entries and Several Credit Entries 6. Transaction.— June i,, 19—. Sold O. M. Metcalf, store and fixtures, for $8500; Mdse., per inventory, $7750; good will, $2500; received in payment, cash, $9500; note, his favor, made by Thomas Cochran, dated May 1, 19 — , at 60 days, for $6000, with interest at 6%; and his note at 90 days for the balance, $3220. Interest accrued to date on Thomas Cochran's note, $30. Dr. (^ao^k. Cr. / cfiAAVcCvv&a^ ^600 00 Dr. Iditto. J^oQ.tVUOi{}-tb Cr. / oiu'yicObC&Qy ^2^0 00 Dr. Jntbiz^t Cr. / ^^oncObve^ JO 00 Dr. ofto-u. and SCxtiA.'u&a^ Cr. oflCncUyV&Qy ■ 8600 00 PRINCIPLES OF DOUBLE-ENTRY BOOKKEEPING 53 Dr. THti&fbci'yuLm.b Cr / oftcncl\.i.&ay 7760 00 ^aacC Uydt Cr. ICf— / QjwiidA'i^e^ 2600 00 A complete record of this transaction, which involves six accounts, re- quires an entry on the Dr. side of cash account, to show the amount of money received, ^9500; an entry on the Dr. side of Bills Receivable ac- count, to show the amount of notes received, % 9220 ; an entry on the Dr. side of Interest account, to show the amount accrued, f 30 ; an entry on the Cr. side of Store and Fixtures account, to show the proceeds of sale, 18500 ; an entry on the Cr. side of Mdse. account, to show the proceeds from the sale of Mdse., -^7750 ; and an entry on the Cr. side of Good Will account, to show the proceeds of the sale of the business, f 2500. It will be seen that the sum of all the Dr. items equals the sum of all the Cr. items. PRINCIPLES OF DOUBLE-ENTRY BOOKKEEPING The foregoing illustrations elucidate the following principles of accounting : Fir%t The complete record of any business transaction requires the considera- tion of all its relations to different accounts. Second The record of a business transaction will not be complete unless one account is debited and one account credited, or two or more accounts are debited and one account credited, or one account is debited and two or more accounts credited, or two or more accounts are debited and two or more accounts credited. TJiird The sum of all the Dr. entries of each transaction must equal the sum of all the Cr. entries. Fourth The sum of all the Dr. entries of all the transactions recorded must equal the sum of all the Cr. entries of all the transactions. In Short There must always be an equality of debits and credits. 54 ACCOUNTS JOURNALIZING Journalizing is the mental process of analyzing business transactions and determining the debits and credits thereof. The transactions for the following illustration are taken from Ex. 1, page 12. Form of Journal Entry Postmark Column Dr. Accounts (^a.-1/k 0?c^&'yia'& (^(mJv laoyfi ISM V ?nou{y-eAf ^a^h^ Sx/^&n^& (cyu <^&&cC) ^a^k fCie^kU V €0. (S^cioA €c '?C%eA1^Q^ Equality Cr. Accounts c^4. /6 i /6 /7 — 18' 18 ^0- E quality ^2- ^XA.Qyk of Footings Dr. Amts. //86 /78 /3 //SO 600 8 2 76 /6S 876 Cf6 ^337 33 60 76 76 60 // 9^ Cr. Amts. //86 /76 3 /3 /760 608 2 76 /63 37^ 96 / ^337 33 60 76 '6 50 // 5(5 ACCOUNTS BOOKS OF RECORD USED IN BUSINESS The books in which the records of a business are kept depend largely upon the nature and extent of the business which they represent. Tliey are usually classified as Principal Books and Auxiliary Books. Principal Books are the day book, the ledger, and those books from which the entries are transferred or posted to the ledger. Auxiliary Books are those which are used as aids to the principal books. Books of Original Entry are those in which transactions are first recorded. There should never be any erasures in them. Principal Books The Ledger, or Book of Accounts, is the book in which all the debits and all the credits of all the various transactions of a business are clas- sified under proper titles qr headings in order to show special and general results of business. ^ The process of transfe^'ring the debits and credits from the journal and from other books kept in journal form, to their proper places in the ledger, is called Posting. The Day Book is a book of original entry, in which the transactions of a business are recorded in narrative form in the order and at the time of their occurrence. It is sometimes called the Blotter. Formerly all the transactions of a business were first entered in this book, but for some years past, especially in the more extensive businesses, the transactions are instead classified and entered in other books specially arranged for the purpose, such as the sales book, cash book, invoice book, and others. The simple form of the day book contains appropriate spaces and columns for recording the date of the transaction, the transaction itself, and the amount involved in the transaction. Great care should be taken to make the statements entered in this book clear, concise, and yet so complete that there can be no doubt con- cerning the facts of the transactions recorded. The pupil, in writing the day-book exercises, should be careful to pre- serve the wording and the arrangement of the entries. The horizontal ruling which separates the transactions may be deferred until a page is written. The Journal is the book in which the debits and credits of business transactions are classified preparatory to transferring to the ledger. The journal may be used as a separate book, coming between the day book and the ledger, but it is more generally used in combination Avith the day book as a book of original entry. When so used it is called the Journal-Daybook. BOOKS OF RECORD 67 Auxiliary Books The Purchase Book is the book in which are recorded the purchases of merchtindise. It may be so kept as to combine all the features of the day book, journal, and purchase book, so far as the purchases are involved. When so used it is called the Purchase Journal, or Invoice Journal, and is a principal book. Instead of copying invoices, they may be arranged and pasted in a Scrap Invoice Book, and the total amount of each invoice may be extended into a column prepared for the purpose in the margin. The Sales Book is the book in which are recorded the sales of mer- chandise. It may be so kept as to combine all the features of the day book, journal, and sales book, so far as thQ sales are concerned, and when so used it is called the Sales Journal and is a principal book. Separate sales books for city and out-of-town customers are kept in many business houses. The Cash Book is the book in which a special record is kept of the receipts and disbursements of money. It may be so arranged and kept as to combine all the features of the day book, journal, and cash book, so far as cash items are involved, and when so kept it is called the Cash Journal and is a principal book. All receipts of money are entered on the Dr. side of the cash book. The date of receiving the money, the account for which the money is received, and the amount received should be clearly stated. All pay- ments of money are entered on the Cr. side of the cash book. The date of paying the money, the account for which the money is paid, and the amount paid should be distinctly recorded. The Receipt Book is a book of printed blank receipts, which are filled and signed when money is received, and then delivered to the person paying the money. It is made with one or more receipts on a page, per- forated so that they may be readily detached, and with a margin, or stub, upon which to make a memorandum of the transaction. This memoran- dum should be made before the receipt is detached and delivered. The Check Book is a book of printed blank checks, which are filled by the drawer of the check when lie wishes to pay a creditor or to draw money from the bank for his own use. It is made with one or more checks on a page, usually perforated so that they may be easily detached. The inner margin, or stub, is arranged for recording the date, the payee, the number of the check, and the amount for which it is drawn. An account with the bank is usually kept on the back of the stub, which is ruled for that purpose. The Bank Pass Book is a book which is taken to the bank with the funds inteuded for deposit, and in which the teller of the bank makes a o8 BOOKS OF RECORD record of each deposit when made. This record is the receipt for the deposit. The book is left with the bank, usually at the end of the month, to be written up and balanced, after which it is returned to the depositor, together with the checks which the bank has paid and canceled. These returned checks serve as receipts from the persons to whom they were issued. The Note Book is a book of printed blank notes, which are filled in and signed by the maker. The book is made with one or more notes on a page, which is usually perforated so that the notes may be readily de- tached. The margin, or stub, is arranged for recording the date of issue, time to run, the name of the payee, the principal, and the place where payable. The record of the issue of the note should alwaj^s be made on the margin before the note is detached and delivered to the payee. The Draft Book is a %pok of printed blank drafts, which are filled in and signed by the drawerr The book is made with one or more drafts on a page, which is usuall}i^ perforated for detaching. The margin, or stub, is arranged for a record of the date of drawing, the time to run, the name of the payee, the name of the drawee, and the amount. The record of the drawing of a draft should be made on the margin, or stub, before detaching and delivering. The Bill Book is the book in which a special record is made of the issuing and the redeeming of our written promises and the receipt and the disposition of others' written promises. The simple form of the bill book contains appropriate columns and spaces for recording the date, time to run, maturity, and principal of each negotiable paper issued and received, together with the names of the parties thereto, and the final disposition thereof. The Index Book is a book in which are arranged the names of the accounts in the ledger, in alphabetical order, to afford ready reference to any account desired. An account should be indexed as soon as the title is written in the ledger, and whenever any account is changed from one page to another. The index book is sometimes bound in the ledger, but where there are many accounts a separate book should be used. The Trial Balance Book is a book in which the regular periodical trial balances are made and preserved for future reference. The Order Book is used to record orders received by mail or taken direct from customers. The Letter Book is a book in which all important outgoing correspond- ence is copied by the letter press. The Stock Record Book is used to record the quantity of goods bought and sold, so as to show the quantity on hand. SECTION TWO USES OF THE DAY BOOK, JOURNAL, AND LEDGER, WITH SOME AUXILIARY BOOKS AND BUSINESS FORMS APPLICATION OF PRINCIPLES The preceding pages have been devoted to the consideration of the fundamental principles of accounting. The work in this section is for the purpose of illustrating and teaching the opening, conducting, and closing of " sets " of double-entry books, using the simple forms of the day book, journal, and ledger as principal books, and the cash book, receipt book, and check book as auxiliary books. It also teaches the making of business forms, such as bills of parcels (itemized bills, or invoices), receipts, checks, statements of finance and business. The Memoranda of Transactions are to be used in the place of the transactions themselves, and are limited to those which will best serve the purposes intended. All the parties to the transactions are supposed to be residents of " Homeville," and the business is limited to that which may be transacted without correspondence. Price Lists. — Six different price lists for buying and selling are given, so that members of a class may work independently while following the same general instructions. Practice Ledger. — It is thought advisable to use the practice ledger as a preliminary exercise, for the first two sets, in order to get a general out- line of the business to be recorded. All Calculations and Extensions for the first two weeks have been made in full, so that a complete reference may be had to all the details of the various transactions. Day Book and Journal. — It is best to gain first a thorough knowledge of the forms and uses of the day book and the journal, as separate hooks, before attempting to consider them in their combined form. A Great Variety of transactions are here presented for practice in bookkeeping, yet no pretense is made of giving a complete exhibit of any kind of business. The purpose is to help the student to become an intelligent accountant rather than a mere routine clerk. 59 60 APPLICATION OF PRINCIPLES First Set. — Th. E. Student, Sole Proprietor Characteristics. — Beginning with a cash capital; buying and selling flour, corn, beef, and pork, for cash and on credit; realizing a gain and closing with an increased capital. Books Used. — Practice ledger (for preparatory work), day book, receipt book, cash book, journal, and ledger. Business Forms Used. — Bills of parcels (itemized bills), receipts, inventories, business statements, financial statements, and balance sheets. Student as Proprietor. — Each student may consider himself as the proprietor of the business represented in the memoranda of transactions, will use his own name as such, and keep the books. Titles of Accounts. — For the convenience of the teacher and the student, and for the sake of economy in the use of the ledger space, the number of lines each account will require is given below. This allowance provides for all current entries, closing entries, and two additional lines for the separation of the accounts : Th. E. Student, 9 ; Aaron Austin, 10; Benjamin Butler, 10; Charles H. Curtiss, 6; Cash, 25; Expense, 10; David Dodge, 11; Flour, 22; Corn, 15; Mess Beef, 12; Edward Everett, 7; Prime Pork, 11; Frederic Ford, 7 ; Loss and G^i^, 11 ; Balance, 12. Place of Business. — The jiaVne of village or city and the state where the student resides may be substituted for " Homeville." Price Lists. — Each student will substitute the prices given in the list assigned to him for the prices used in the text, and continue to use the same list throughout the sets. Buying Price Lists Articles Per 1 2 3 4 5 6 Flour, Extra, bbl. 5 25 5 80 5 35 5 40 5 45 5 50 " Superfine, « 5 50 5 55 S 60 5 m 5 70 5 75 " Minnehaha, <( 6 85 6 90 6 95 7 7 05 7 10 Corn, bus. 40 42 44 46 48 50 Mess Beef, bbl. 12 25 12 30 12 35 12 40 12 45 12 50 Prime Pork, ii 13 50 13 55 13 60 13 65 13 70 13 75 Selling Price Lists Articles Per 1 2 3 4 5 6 Flour, Extra, bbl. 6 20 6 25 6 30 6 35 6 40 6 45 Superfine, (( 6 45 6 50 6 55 6 60 6 65 6 70 " Minnehaha, (< 7 80 7 85 7 90 7 95 8 8 05 Corn, bus. 45 47 49 51 53 55 Mess Beef, bbl. 13 65 13 70 13 75 13 80 13 85 13 90 Prime Pork, « 14 95 15 15 09 15 10 15 15 15 20 Assignments of Lists. — The student, having been assigned one of the foregoing price lists for buying and selling, should make a copy of it on a separate piece, of paper like the following illustration. FIRST SET 61 M '. (D. oftAicU'ntf^ S^visb Lt^t fav ja/yiAAydvj, , 'Aa. / ISuA^iruf ^tv Cl.vtiA.te^ S^£A. ^"Mi/VUf 6 26 6.U. . tS^LyiLV, €'xt'uu UL 6 20 6 50 tf /' ^u'^eA.j-iAt& ft 6 ^6 6 85 ft " Tflvnn^&kaka, ft 7 80 ¥-0 6'UQy. ^avrv 6-ic^. ^6 f^ 25 {^U. ?1^&a^ Be&( (,U. fS 65 /S 50 ft r9iiAfv& -9avk' ff /^ ^,5 GENERAL DIRECTIONS FOR WORKING FIRST SET First Working. — 1. Make out all the bills of parcels required in the business to Jan. 15, according to forms given on pages 66 and 67. 2. Write all the receipts to be given and taken, the outgoing receipts in the receipt book, and the incoming ones on blank paper. See pages 68 and 69. 3. Fold and file the vouchers (bills and receipts) according to the directions of the teacher. 4. Analyze each transaction (decide upon the Dr. and the Cr.) in the order of occur- rence to Jan. 15, using the practice ledger in which to enter the results obtained. The names of the accounts and the number of linos each will require are given on the preced- ing page. See page 64. The entries in the practice ledger may be written with a pencil, which should be kept well sharpened so that letters and figures will be clear and distinct. 5. Take a trial balance of the practice ledger. See page 64. B. Prepare an inventory of unsold property. See page 69. 7. Prepare the business statement. See page 65. 8. Prepare the financial statement. See page 65. Second Working. — 1. Record all the transactions of the first two weeks in the day book, observing carefully all instructions regarding the arrangement of the entries. The writing should be neat and legible, entirely free from unnecessary display, and the figures small, distinct, and in their proper places. See pages 70 and 71. 2. Rule the day book as shown on pages 70 and 71. (Red ink should be used for all rulings.) 3. Write the cash book for the first two weeks, and rule it as shown in the model on pages 78 and 79. 4. Journalize all transactions, checking the same in the day book as soon as each journal entry is made. See pages 72 and 73. 5. Rule the journal as shown in the model. See pages 72 and 73. 6. After your teacher has approved your journal, post each journal entry to the ledger as he shall direct (see pages 74 and 75), post^ marking in the journal each entry as soon as it is posted. 7. Take a trial balance. Tf the trial balance shows that errors have been made, make a careful study of " How to find errors in posting," and " How to correct errors when found." See pages 80 and 81. 8. Close the ledger, after a careful study of " Closing the ledger, current form," as found on pages 81, 82, and 83. 62 APPLICATION OF PRINCIPLES MEMORANDA OF TRANSACTIONS Homeville, Tuesday, Jan. 2, 19 — . T (Th. E. Student) commenced business this day, with a cash capital of f 1500. Directions for Day Book Record. — The first word of each day book entry should be written close to the marginal line at the left, and the first word or figure of each subsequent line should be indented one half inch. In a day book the right-hand money column is called the amount column, and the one at its left is called the item column. When there is only one item, it is placed in the amount column. See pages 70 and 71. Directions for Journal Entry. — An examination of this transaction shows that two accounts are affected, Cash account and the proprietor's account. Cash account is Dr. for $1500, because cash is received into the business, and the proprietor's account is Cr., because the proprietor made the investment. See page 72. In a journal, the left-hand money column- is called the Dr. column, and the right-hand money column is called the Cr. column. Jan. 2. Bought of Aaron Austin, on credit, 20 bbls. extra flour, at $ ? . Note. — In the day book, the price of each item bought or sold should be placed close to the left of the item column. See pages 70 and 71. Note. — In this purchase. Flour account is Dr. for the cost of the flour, and Aaron Austin is Cr. for the same amount, because he df^s not at the time receive payment. See Journal, page 72. 1 Jan. 2. Sold Benjamin Bntler, on credit, 6 bbls. extra flour, at f ? . Note. — In this sale, Benjamin Butler is Dr., because he does not pay at this time, and Flour account is Cr. for the proceeds of the sale. Jan. 3. Paid E. A. Taylor cash for 3 tons of coal, at $6.50, $19.50 (delivered Jan. 2). Note. — Expense account is Dr. for the outlay, $19.50, and Cash account is Cr. for the money paid, $19.50. Jan. 4. Bought of W. C. Smith, for cash, 500 bus. corn, at ? ^ ; 30 bbls. superfine flour, at $ ? ; total, $ ? . Note. — When there are two or more items in a purchase or sale, the cost of each is placed in the item column, and the total cost or proceeds is " extended " to the amount column. See page 70. Note. — In this purchase. Corn account is Dr. for the cost of the corn ; Flour account is Dr. for the cost of the flour ; and Cash account is Cr. for the entire amount of money paid. See Journal, page 72. Jan. 4. Sold S. B. Todd, for cash, 9 bbls. superfine flour, at $ ? ; 75 bus. corn, at ? ^ ; total, % ? . Note. — In this sale, Cash account is Dr. for the total amount of cash received ; Flour account is Cr. for the proceeds of the flour sold; and Corn account is Cr. for the proceeds of the corn sold. See Journal, page 72. Jan. 5. Bought of Charles H. Curtiss, on credit, 25 bbls. superfine flour, at $ ? ; 750 bus. corn, at ? ^ ; total, $ ? . Jan. 5. Sold David Dodge, on credit, 7 bbls. superfine flour, at $ ? ; 150 bus. corn, at ? ^ ; total, f ? . Jan. 6. Sold James Dunn, for cash, 8 bbls. extra flour, at $ ? ; 300 bus. corn, at ? ;> ; total, $ ? . Jan. 8. Paid Charles Carroll cash for rent of store for 3 months from Jan. 1, at $20, $?. Jan. 8. Received $ 20 cash of Benjamin Butler on account. Jan. 9. Paid Aaron Austin $ 50 cash, on account. FIEST SET 63 Jan. 10. Bought of Aaron Austin 30 bbls. Minnehaha flour, at $ ? ; 900 bus. corn, at ? ^ ; total, $ ? ; gave him in payment, cash, .| 200 ; balance, $ ? , to remain on account. Note. — In this purchase, Flour account is Dr. for the cost of the flour bought; Corn account is Dr. for the cost of the corn bought ; Cash account is Cr. for the amount of cash paid ; and Aaron Austin is Cr. for the balance of the bill unpaid. See Journal, page 73. Jan. 11. Sold Benjamin Butler 500 bus. corn, at ? ^ ; 20 bbls. Minnehaha flour, at $ ? ; total, $ ? . Received cash, in part payment, $ 175 ; balance, f ? , to remain on account. Note. — In this sale, Cash account is Dr. for the cash received ; Benjamin Butler is Dr. for the amount of the bill unpaid ; Corn account is Cr. for the proceeds of the corn sold ; and Flour account is Cr. for the proceeds of the flour sold. See Journal, page 73. Jan. 12. Bought of Aaron Austin 20 bbls. Minnehaha flour, at |? ; gave in pay- ment, cash, $ 08.50 ; balance on account. Jan. 13. Received S§ 50.50 cash of David Dodge* to apply on account. Jan. 13. Sold David Dodge 750 bus. corn, at ? ^ % ^8(^ BeAvj. Butt&h /f ff Vl& ff 223 20 €k. /i^. ^wvUm //■ // kv^yu f' ^37 60 2>aAHyci ^adcjf& // // ^rve, *f 338 66 f/600. 1^6.76 /6^6 76 2673 26 2673 26 * Italic type in statement indicates red ink. 66 APPLICATION OF PRINCIPLES Itemized Bills — Outgoing Bill not Receipted ^mtjambi/yi BiAtttv, HoMEviLLE, (state), fdnUdVU 2, 19- Bought of Th. E. Student. 6 6^6-U,. (o'xZva' S^tcHvv @ f6.20 S7 20 Bill Receipted in Full g. 8. ^odd, HoMEViLLE, (state), ^dniccivu ^, 19- Bought of Th. E. Student. 68 33 06 76 ^/ 80 Bill Receipted in Part fSbrufdmyi/vb ButhAy, HoMEviLLE, (state), ^a,ri.iA.a,vif / / , 19- Bouo;ht of Th. E. Student. 600 (yu^. ^o-VYi 20 {^(^U. TninAv. Mauv @ .^6 @ ^7.80 /66 38/ 176 206 FIRST SET 67 Itemized Bills — Incoming Bill not Receipted cS^/v. (D. ^tAuUwt; HoMEViLLE, (state), jamvcLiy, 2, 19- Bought of Aaron Austin. 20 (}-{}'U^. SoctvO' ^Lo-t @ f6.26 106 Bill Receipted in Full 3^'fb. 8. cfiyud^'nt, HoMEViLLE, (state), ^amccivy ^, 19- Boiight of W. C. Smitpi. 600 (yu^. €aw^ @ .^0 SO ^-^-toy. ofu^^&v. S^tcnov @ f6.60 10. (g, ^mMk 200 /66 866 Bill Receipted in Part HoMEViLLE, (state), faniuivif /O, 19 — . Bought of Aaron Austin. 30 6~{yU. mU'yi Mawv @ f6.S6 (^00 (y-u^. ^vn @ .^0 f^&^avu&d €a^k, fan. 10, /q — 206 860 60 666 200 60 866 60 68 APPLICATION OF PRINCIPLES RECEIPT BOOK Receipts given for money received should be recorded in the Receipt Book. The stub should be filled out before the receipt is written and detached. Form of Receipt Book 05 tH 5^ ^ 10 ^ ^ ^ •1 8 ^ — 1 Y t- Ci n tH 'c H^ ^ P ^ ^^ 0>) ^ '^ ^ v^ '^^ X ^ ^ ^ s ^ ^ CO 4. S 2- ^ > .^ i > 1 g W ■^ i-i >^ k W, >!•; /f^ />^ /' [ A^ ^T^ II § .^ % ^ ^ 1 ^ %. ^ ^ ^ H. ^ ^"^ g '^^ ^ 1 ^ ^ i i3 5> "+0 'i . v<> ^ ^ ^ ^ ^ -^ ^ ^ ^ .« g "^ ,1 ^ +4 ^>^ 1 a* a '« ^ a> f5 ^ ^ ^ O) B -^i ^ ^ -^ 2 s= ^ a 6 ■^ 2 s ^ Q & <1 ^ ^ ft ^ -^ pti ;^H p ^ ^e^t&&1^ and ^^Jiqq -s.^^ Dollars, [Oh a t(y)ia^ t^al at f^''^/i Xo. S. (Z. S^dytoh. fSO ^^^liQQ HoMEViLLE, (state), ^anuav^ ^, 19 — . Keceived from J \ ru (ZiA^otrnv fcvn. f (EaJv 2 60 ;9— fayyi. 2 S^tauv / f06 ff /O '' V ^xybn. 2 366 60 \ // 12 // // 2 68 60 - BtJif/ziftOn tdicttth 19- i* S^tcyuAy / S7 20 /Cf— fan.. 8 ^o^ 2 20 // // // V ^(yim. 2 206 ^d^'lb /9- i* ^tAi^cLemt / /600 /9- 3 ^ocja.em^& / /^ 60 // ^\^w^^civLe^ / 9/ 80 // ^ ofumAv'im' / 366 // 6 // / 18^ 60 // 8 €'?0fl-&}^Qy& 2 60 ft 8 fSeAij. £utt&i 2 20 // ^ a. CCuoZuyi 2 60 // // ofti/hvd\.iy&Qy 2 /76 // /O 'SUI'VcLvL&Qy 2 200 *f /3 haA}-ici ^o-cLc^& 2 66 60 // 12 // 2 68 60 tt fS ^Uy^uivie^ 2 260 &x/fhmv3t.^ 3 ^x^^ / /^ 60 // 8 // 2 60 FIRST SET Open Ledger, Continued 75 l^f— — ja^ru. ^ ofuncLw&a' / ^37 60 hcuvicL hodab -jj=r \/9- fa^v. ^ oftcndvl&Q. / //2 66 jo/yi. /c5* ^.oaJv 2 66 60 // /ci' // i' 282 60 Sto-iih f9- /9~ fcuru. ^ (X. CL^vloXaa^ / /06 fam.. i* BsAlyf. ButteAy / S7 20 // ^ ^a^h. / /66 // ^ ^a^i / 68 06 // 6 €L/i^.(^uA.tU^ / fS7 60 // ^ ^dv-ld ^aclxp / ^6 /6 // fO ^iiyuivi&^ ^ 206 60 // ^ ^^k / H 60 // /2 tt 2 fS7 // 2 2 /66 ^avTb f^- /9- fa^n. f ^lajQyh / 200 fa^. f €aJv / 33 76 // 6 ^k./i-'.^uxtu^ / 300 // J ^a-v-icL ^cx£cf& / 67 60 // /O ^'wncObie^ 2 360 // / 2 136 226 . // /ci' ff 2 337 60 76 APPLICATION OF PRINCIPLES Index Book, for Sets i to 3 A j E I 8, / fO ^'X/^e'ytQ.& 2/ , /2, / (ou&v&tt, €cL. 7, ^ f Jncfte^^ V €a. /2 B F J Ba,ta,ne& SS, 7, / 13, 6 >^, £&ii^VQ., / 2 FIRST SET 77 Index Book, Continued M Q u Tyi&ouL, iTlavian fA 0.^li'yv'>^ V ^. /9 ?HataaAi.&Q. 20 • N R V ofoitan^ cAatkc^n /8 / / /2 ( 20 O s W & X QU.an, ^vvin, /8 ^tiuL&nt, 3^k. €. 7 , / WkexAt /^ iaU /f /6 20 P ' 1 Y & Z ^av^ // , ^ d<^£y // /7 ^avky V Mcnov ofatcC ^a.v-Cd ^adcf& ^0 // /f €9C/fs^£AV^& hmJo Racyyyv, ^^.cyufs. /lf(yii/-& ^ // i'^:? ^avn V B&£^1 d'ald He.nxAf UaJc 86 /6 // i*^ ff // ^^ 26 279 ^0 /o^. J, J, ^atd ^a.v-id Jbo-d(^& 76 /6/^ 90 //^f so Miftci., S'avk, V Be4 ff i'c5' B&nj. fSutl&v €.ru CU^M-ii^nt 260 /r i-j ^tcMiA. V /8e^£.( ^o-id /Se/yif. ButteA, 60 // i'^ // Sdw-ciid ^ // // ff /f /OO // c5>^ ^xyim., <3^ta^^A^, V^ ofatd /lftmA.n^ But^koA^d ^02 ^0 B&4 R&e^&vV'&d /062 90 Bala/ne-e^ {^-uywcjht dcyum 1^66 06 2508 95 FIRST SET 79 Cash Book, Right-hand Page Cr. ^an. ia^n. /6 f7 iamy. 27 Stauv , ^(yyh, V (yinv ^k. /if. &uaZU^ Balance on hand 3 'yyva^-. R&nt fSO // // // Balance on hand JS(yu,c^kt al S^v&cL. S^cyui jlaoy. L&cyyioAyci Should Balance on hand il'vi CC$^(yu.nt S'aid Balance on hand /9 366 60 60 200 68 f76 /60 /3 260 280 60 38^ 1391 /776 60 378 1514 18^3 338 1456 /7W 60 /^2 1716 2608 60 90 To 60 90 To 26 05 30 60 45 ^6 80 APPLICATION OF PRINCIPLES ERRORS AND HOW TO CORRECT THEM HOW ERRORS MAY ARISE IN POSTING Unless great care is exercised in posting, some of the following errors may be committed : Posting an item to the wrong account ; posting an item to the wrong side of an account ; transposing the figures of an item ; posting the wrong amount to an account ; posting an item a second time from failure to postmark as soon as posted ; writing figures in the wrong column, — dollars in the column for cents, or cents in the column for dollars ; omitting an item in posting ; etc. HOW TO FIND ERRORS MADE IN POSTING When the sum of the debits does not equal the sum of the credits, an error exists which must be found and corrected. The only sure way of finding errors is to make a systematic examination of every entry. The equality of the ifootings of the two sides of the trial balance is not a positive proof of the accuracy of business records, but only a test of the correctness of the posting. Many errors may exist when the two sides of the trial balance are in equilibrium. Amounts may be posted to the right side, but to the wrong account; a Dr. entry and a Cr. entry of equal amounts may be omitted, or a transaction may be " dropped " altogether ; a transaction may be posted twice, etc. If, however, the trial balance is not in equilibrium, there is an error which must be found and corrected. 1. Examine the pencil footings in the ledger and ascertain whether they have been correctly transferred to the trial balance. 2. Go carefully over- the additions in the ledger, adding in the opposite direction from the original addition. 3. Examine each entry in the journal to see that it is properly posted to the ledger and postmarked, checking (y/) each entry found to be cor- rectly posted. 4. Go carefully over the additions in the journal. 5. Ascertain the amount of the error, and then see if there is an item of equal amount which has not been posted. 6. See if there is an item in the journal or ledger equal to one half the amount of the error, and see whetlier it has been posted to the wrong side of the account. 7. See if the amount of the error is exactly divisible by 9, for if two adjacent figures have been transposed the difference between digits thus transposed will be equal to the quotient obtained by dividing the differ- ence of the amounts by 9. For instance, if 92 be written 29 the error will be 63, the difference between 92 and 29 ; 63 divided by 9 is 7, and the difference between the digits 9 and 2 is 7. CLOSING THE LEDGER 81 t HOW TO CORRECT ERRORS WHEN FOUND When an error is found in the clay book, or in any other book of original entry^ write neatly across tlie entry the Avord Void^ and write a new entry which shall be a correct statement of the transaction and also an explanation of the erroneous entry. Make no erasures in a book of original entry. Errors found in the JDurnal should generally be corrected in the same manner as errors found in the day book. An error in the ledger should be corrected as follows : When an entry has been posted to the wrong account, rule a horizontal red line through the center of the erroneous figures, and post the entry to its proper place. When an item has been duplicated, rule out the incorrect one. When a wrong amount has been posted, rule out the error and place the correct amount above the error. CLOSING THE LEDGER PURPOSE OF CLOSING THE LEDGER The Purpose of Closing an Account is to determine its net result. The net result shown by a financial account is a resource or a liability. The net result shown by a business account is a loss or a gain. The net result shown by a proprietary account is the net investment in the business or the net deficiency. The Purpose of Closing Financial Accounts is to determine the financial standing of the business ; in other words, what the business is worth. The Purpose of Closing Business Accounts is to determine the current condition of the business ; in other words, to ascertain the prosperity or the adversity of the business. The Purpose of Closing Proprietary Accounts is to determine the relation of the owner or the owners to the business. The net result obtained in closing financial accounts, combined with the inventories, must be the same as the net result obtained in closing proprietary accounts, both exhibiting the net worth or the net insolvency of the business. PROCESS OF CLOSING THE LEDGER, CURRENT FORM 1 . Take the Trial Balance. — The ledger is said to be in balance when the sum of all the Dr. items is equal to the sum of all the Cr. items. To ascertain whether the ledger is in balance, it is customary, and always proper, to prepare a statement called a Trial Balance. A Trial Balance is a list of the open accounts of the ledger with all 82 APPLICATION OF PRINCIPLES the Dr. footings or Dr. balances in one column, and all the Cr. footings • or Cr. balances in another column. The footings of the two columns of the trial balance must be equal before commencing to close the ledger. 2. Prepare the Inventory. — Not all the resources and liabilities of a business are recorded in the financial accounts. Many, such as merclian- dise, real estate, interest, etc., are entered in business accounts, but are all the time changing in amount or value. It is necessary, therefore, before closing the ledger, to ascertain the exact value of all property entered in business accounts, and also to ascertain whether there are any resources or liabilities which have not been entered on the ledger. This operation is called "taking stock," or "making an inventory." 3. Close Financial Accounts. — To close a financial account when the footings of the two sides are equal, rule a single red line underneath the items across the money columns on the same level ; write the footings on the faint line below, and\]bhen rule a double red line underneath, extending across all the columns 6xcept the wide explanation column. When the footings of the two sides are unequal, enter upon the smaller side, in red ink, the difference between the footings, together with the date of closing, the word Balance, and the page to which the balance will be transferred. Rule as before, a single red line underneath the items, and a double red line underneath the written, equal footings. Bring the balance forward, in black ink, to the opposite side of the same account, underneath the double red line, and thus restore the equilib- rium of the debits and credits in the ledger. When there is but one item on either side of the account, and these two items are equal, the single red line and footings are omitted, and the double red line is drawn just under the items. When there are more items on one side of the account than on the other, a diagonal red line may be drawn across the explanation column. See pages 8J: and 85. 4. Open a Loss and Gain Account into which all losses and gains shown in the business accounts may be transferred. 5. Close Business Accounts. — To close a business account when there is no inventory belonging to it, enter upon the smaller side, in red ink, the difference between the footings, and in black ink transfer this differ- ence to the opposite side of the Loss and Gain account. Rule according to the foregoing directions. In case of an inventory showing a resource, credit the account, in red ink, with the amount of the resource before closing the account into Loss and Gain. Rule as before, and bring the resource forward to the Dr. side of the same account, underneath the double ruling. CLOSING THE LEDGER 83 In case of an inventory showing a liability^ debit the account, in red ink, with the amount of the liability before closing the account into Loss and Gain. Rule as before, and bring the liability forward to the Cr. side of the same account, underneath the double ruling. The Dr. side of the Loss and Gain account will now show the losses of the business, and the Cr. side will show the ffains of the business. The difference between the footings will show the net loss or the net gain of the business, 6. Close Loss and Gain Account. — Enter upon the smaller side of Loss and Gain account, in red ink, the difference between the footings, and in black ink transfer this difference to the opposite side of the proprietor's account, or in proper proportions to the partners' accounts if the business be that of joint proprietors. The proprietor's account will now show his present interest in the business, or the partners' accounts will show their individual interests in the business. 7. Close Proprietary Account. — Enter upon the smaller side of the proprietor's account (or partners' accounts), in red ink, the difference between the footings, together with the date of closing and the page to which the balance will be transferred. Rule as before, a single red line underneath the items, and a double red line underneatli the written, equal footings. Bring the balance forward in black ink to the opposite side of the same account, underneath the double red line, and the ledger should be in balance. 8. A Second Trial Balance should now be taken of all the balances brought forward into the reopened accounts. PROCESS OF CLOSING THE LEDGER, FULL OR FINAL FORM 1. Take the trial balance and prepare the inventory as in current closing. 2. Close Financial Accounts. — Close the financial accounts as in cur- rent closing, but bring the balance forward in black ink to the opposite side of the Balance account in the ledger. Rule the account as in current closing. 3. Close Business Accounts. — Close the business accounts as in cur- rent closing, but bring the inventories forward in black ink to the opposite side of the Balance account in the ledger. Rule the accounts as in current closing. 4. Close Loss and Gain account as in current closing. 5. Close Proprietary Accounts. — Close the proprietary accounts as in current closing, but bring the balance forward in black ink to the opposite side of the Balance account in the ledger. The Balance account should now be in balance. 84 APPLICATION OF PRINCIPLES Ledger Closed, Current Form T/v. S . o ftuxi tn t Jan. 13 Balance 1 1646 75 ^o/yL. 2 ^Jv / /600 ^^ ■ // /3 2 1^6 76 f6^6 76 /6^6 76 ^aru. /6 / f6^6 7a (Zciu>n Civ.Q.ti'yh 9 ^^k £ 60 2 S^to-iiv / /06 // 13 Balance 1 489 // 10 /' V €^vyv 2 366 60 .^"^ // /2 2 68 60 63^ 00 63^ 00 \ ^a/)i'. /6 / ¥-89 - 8&?vf'}V CiUQytl^ 9 13 Balance BalaTwe \ so 489 \i(f- ^cAyyu. // // 2 /O /2 £a.lci'yi(S^& / 2 2 /05 865 68 50 50 ■589 00 589 00 SI 6 6 280 209 foAI. /5 / ^89 ^89 00 ¥-89 00 f^^nfdJjhOi^ B^ittth 2 // ^^{/yLcOuC&Q^ / 2 87 206 eo /9- 8 13 ^Q.k Balance (EaJv ■ Balance 2 1 20 223 20 2^8 20 20 90 80 2^8 20 // /6 28 26 / 6 228 62 8^ ^o/yL. 28 31 6 6 250 70 JfO 820 ^0 820 ¥0 ^^koAL^Q. //. &^u.vt09ya^ ja/yv. /6 27 3 6 '7. 262 50 /q— ^a/yv. 5 ofu/yid'LVe^ / ¥87 50 ^87 5o\ ¥87 50 ■ Fins 2' SET Closed Ledger, Full Form, Continued ^a^/iy fCf- fam.. 2 ^tAcdemt / 1600 /9— 3 €9C/^&n^& / /9 60 // ^ '^\vncLiLe^ / ^/ 80 // ^ ^un'cLiv&Q^ / 366 // 6 // / /8^ 60 ft 8 €'?c/fa^&^Q.& 2 60 // 8 /6^6i?'Z.^'. ButCeA, i' 20 // 9 CL. CLuoZi/yv 2 60 // // ofiondvle^ i' 176 // /O ^ttAlcCll&Q^ 2 200 // /ci' ^a^v-icl hocl/f& i' 66 60 // f2 ff 2 68 60 // /J 2 260 // 13 Balance 2 3 1514- 90 2277 90 2277 /76 90 fo/yv. /J 2 16/ ¥- 90 JOA^. /6 - /^ JbcLV-icC ^acLcf& 3 160 ff /7 cfundvv&Q^ 3 /60 // f7 ofwrvcCiAye^ 3 ^0 /r /9 €x/^&na'& 3 /3 26 ff /f ^&qJo Ro-(ym. ^ ^ // 22 ofu/yidA^ie^ ¥■ 260 // 20 ^wncLvh&Q, ^ 36 /6 // 2^ CI. CClA^tvyi 6 280 // 20 // ^ H 26 ff ^7 ^k./i^MwitUo. 6 262 60 // 22 // ^ 76 // 31 Balance 6 1716 45 // 28 y6'i&^^'. ISiitt&i 6 260 / ff 26 QfiA.yiclvie^ 6 60 / ff 26 // 6 76 / // 27 ^a/u-<^(jt^ ho-cLq& S fOO / // 2^ // 6 /oo / ff 30 ^ivyvcObie^ 6 ¥-02 90 / 28^7 20 28^7 20 &. /— jla,^^. i' ^. COu^tA^yi/ / 106 fa/yL. 2 Beyyi^f. fSulttv / 87 20 // ^ (^^k / /66 // ^ ^aJv / 68 06 tf ^ ^kJlfMuvtUo. / /87 60 // 6 hciv-lcl Jbacl^& / ^6 /6 // fO ^torudvv&Q, f 206 60 // 6 ^CUL^k / ^^ 60 // /2 tf 2 f87 // // ofi^/yvdvl&Q^ 2 /66 // IS Loss Ss Gain 4 71 25 // /J ff 2 /96 ISa^tan/^p 8 26 // IS Balance, Invt. €d. Sv-&v&Ct S 280 25 82/ 82/ 26 joun. /5 280 26 fa^. /6 8 /^ 86 ff /7 ^^vncLiie^' 8 /02 76 // 17 ^U7lcU.L&2/ 8 87 20 ff SI Loss & Gain 4 JfS 70 // /^ ^dv-td 2>o-d(jt 8 88 70 / // 20 iao^k ^ /f 86 / 22 28 JSem^j. fSutt&v ^ ^ 82 f9 26 86 / // 26 QfundAV&Q^ 6 67 / // 26 // 6 68 86 / // 80 €a^k 6 28 60 ' // SI Balance, Invt, 6 lie 65 ^26 70 ^26 70 FIRST SET Closed Ledger, Full Form, Continued 91 ^a^.'Tb f €a^k / 200 T fan. ^ ^Jv / 33 76 ft J ^iJi^M^ovtio^ / 300 // 6 cbauvcC ^acl(^& / 67 60 // /^ ofwyidvie^ ^ 360 // 6 (^CLOA / 136 // i.5 Loss & Gam 4 88 75 // // ofti/yuiii&ay 2 226 y ft 13 // 2 337 60 BaLa'yi<>.& ff IS Balance, Invt. 4 150 ^^8 76 9^8 76 ^a/yu. /^ f /60 ^OAV. J6 3 33 76 f/ ^j, ^iwicOhLe^ f 200 // /8 // 3 ^6 // 5i Loss & Gain 4 J,3 75 /' 20 ^<^k f 22 60 .^ _ // 30 // 6 292 60 393 76 393 76 La^Q. V ^ Sdiru - /J €ocjii.&nQ.& 2 13 26 fan. /3 S^tauv 3 7/ 26 // 13 Th. E. Student 1 146 75 // /3 3/ ^ 88 76 /60 00 /60 00 U'yv. 3/ 2 22 60 fcun. 3 ^3 70 // 31 Til. E. Student 1 116 15 3/ 3/ ^0-vn 6 ^3 28 76 X 66\ // 3/ ^ilyyv& ^aik 6 23 20 /38 /38 66 1 1 €v&' htt t 77=" fan. /6 ofunclvl&Q^ 8 63 /o 77=r Jan. 31 Balance 6 221 85 // /8 // 3 //3 26 y^ // i6 // 6 66 60 ^ 22/ 86 22/ 86 92 APPLICATION OF PRINCIPLES Closed Ledger, Full Form, Continued /6 S^v&cL. S^o-vcL d c^8 /9~- fan.. /8 €d. Sv-£d.&tt 3 68 26 // // ^um^iC&Q^ d /22 60 // 20 ^aoA f /3 66 // 22 // ^ 188 76 // 22 cncnclw&Qy f ^0 ^6 // 31 Loss & Gain 4 28 ff 23 Bem^j. JSoittdA, ^ /3 66 / // 26 ^'W'l'LcLvLtQ/ 6 27 30 / // 26 // 6 27 30 / ff 30 ^Xl^k 6 8/ <^0 / // 31 Balance, Invt. 6 159 25 ^32 26 ^32 26 f Svu "JfLl : S^cn A /6 c^'h&ci. S^aui 3 /35 /9- /7 ^'Wfldl.V&Qy 3 f^ 86 // 22 ^lA/yutiyVeo^ ^ 202 60 // /f ^dv-Cd ^odc^t 3 2q qO It SI Loss & Oain 4 23 20 // 20 &^4 ^ 2(^ ^0 / // 22 ^urudiie^ ^ 6^ 80 / // 23 B&rLf. B14.U&V f i'^ ^0 / // 26 ^'wyidil&Q^ 6 ^f 86 — / = // SI Balance, Invt. 6 121 50 360 70 360 70 SvuL tVi '^ o/c -yid 1 Jan. SI Balance 6 6U 50 ja/yv. /6 ^'wyLdA.'ie^ 3 233 y // /7 // 3 76 26 ♦ // 22 " ^ 336 26 6^^- 60 6^^ 60 6 FIRST SET Closed Ledger, Full Form, Continued 9;? ISaLcin(^ 3/ fS&nj. BuUeA. / 70 ,0 fan. 3/ 6v. tXll^i/K' • / 209 // 3/ €^/v 2 17/6 ^6 // 3/ S^v&cL. ScyhcL 6 6^^ 60 // 3/ €x^'^&}tQ^& 2. 63 /f 3/ qJ. 0. ^Vwd&nt / /762 ^0 // 3/ ^a^v-icL ^acL(j& 3 157 30 // 3/ Stauv 3 1/6 66 // 3/ Set. Sv-tv&tt -^ 22/ 86 // 3/ ?n& Co ^ ^ ^ ^ Co S^ i \^ fNS \^ ^ ^S) "^ ^ ^ ^ ^ ^ ^ N^ *-^ N ^ Oi i^ i^ ^ ^ ■^ -Is^ Q; ^ 9^ S ^ Ob ^ "^ 5> ? S ?> ^ ^ ^ L^ QJl ^^ ^ ^ ^ 9r^ % 01 CO r r ■I .Co ■^ 96 APPLICATION OF PRINCIPLES Balance Sheet, List 1, Set 1 == 71 =^ == = ^= =^ = ^ "^ ^ = ^ ^ Oi ^ ^ ^ <^ ki t^ ^ v> =^ >:o ^ ^ ^v^ ^ ^ V^ ;^ K \ i^ lO) ^ ^\l Ic^ ^) ^ > ^ ^ ^ ^ ^ ^ ^ ^Nj ^\ 'b ^ ^ ■ ^ 1^ ^ \^ § ! ^ 1 1 ^ ^ ^ N "O ^ -\ ^Nl >s 'b ^ 1 C:j ■^ ^ <^ 1 T ^ ^ § 1 V ^ \o ^ "^ ^ ^ ^ k^ ^ ^ ^\ i ^^ ^ -^ ^ ^ — r i^ ~i?r "^^ "i^ "^ ^ ^ ^ "1 _\ K K ^ K ^ ^ ^ ki ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ "^ s ^ v^ n v^ 1*^ ^ S ^ ^ ^1 \ ^ ^ ^ ^\» •^\ \o N 1 ^ ^ ^ ^j ^ ^ ^ ^ l<^ ^-^ ^ ^ ^^ "*o ^ ^ ^\ 'o '>5 "o ^\ 'o ^ ^ ^ ^ K ^ K ^ ^ ^>v ^ K ^ \ ^^ ^ <^ ^1 ^ K ^ <\) ^-^ '^Nj ^ ^ ;^ ^rf<%^ ^1 ^ ^ ^o ^ ^ ^\J ^ ^b ^ 5a <^\j ^3 '- ^Xa'i& V^ Lot, 8o^rLU>'yv oft. S^v&a^&nt v-atu& ? 7600 6 a^v&Q., ^tiM^fsfSvow-Ti ^a. $65 326 ? 9 r /O 6^ //■^I^ '' " '/ fSwUduyuf 7S 83 83 37 02 8373 Footing of Trial Balance, Feb. 14, 19 — Listl 2 3 4 5 6 $14013.22 $14126.02 $14238.82 $14351.62 $14464.42 $14577.22 Cash on Hand, Feb. 14, 19 — Listl 2 3 4 5 6 $114.08 $109.48 $104.88 $100.28 $95.68 $91.08 Cash on Deposit in Bank, Feb. 14, 19 — Listl 2 3 4.5 6 $1079.05 $1081.60 $1084.15 $1086.70 $1089.25 $1091.80 Footing of the Day Book and Journal, Feb. 14, 19 — Listl 2 3 4 5 6 $15316.27 $15501.92 $15687.57 $15873.22 $16058.87 $16242.52 Inventory, Feb. 14, 19 — Listl 2 3 4 5 6 $8373.02 $8377.77 $8382.52 $8387.27 $8392.02 $8396.77 SECOND SET 101 Business Statement, Feb. 14, 19 — . List i Losses. Gain.v . Flour Proceeds from Sales Value of Unsold Total Proceeds Cost Gain $58.35 65.90 124.25 116.65 7 60 Mess Beef Proceeds from Sales Value of Unsold Total Proceeds $150.15 ? 9 Cost • Gain ? 15 40 Prime Pork Proceeds from Sales Value of Unsold • Total Proceeds $29.90 ? ? Cost Gain ? 2 9Q Insurance Outlay, Cost $87. Value Unused Loss 83.37 3 63 Expense Outlay, Cost Returns $3.00 Value Unused 39.75 $58.37 Total Returns Loss 42.75 15 62 Net Gain 6 65 25 90 25 90 Finan( nal Statement, Feb. 14, 19 — . List I Resources. Liabilities. Flour On hand, per Inventory 65 90 Mess Beef u u u 24 50 Apples n a li 240 Piime Pork li li ii 94 50 Insurance Unused 83 37 Expense (( li ii 39 75 Real Estate, Union St. Present Value 7500 " Brown Co. (( li 325 Cash Amount on hand 114 08 Homeville Bank " " deposit 1079 05 Benjamin Butler He owes me on account 14 90 Henry Hunt 11 li 11 79 55 Gray & Co. I owe them on account 140 John Jenkins a hjjn u u 300 Ingless & Co. They owe me " 48 95 Th. E. Student - Investment, Feb. 1 N^et Gain, as above Net Capital, Feb. 14 $9262.90 6.65 9269'55 9709 55 9709|55 ' 1 102 AFFLIGATION OF PRINCIPLES Day Book Opened /. /'/- RmxyuAA^Qy // ft ft ff /6W^'. Bwtt&v, d/iL& "yyve^ cyrv % €dA\K\'VcL €u&v&tt, Tn&i^ is&&^ f " " ^hVyro& S^o-t^ // \ // // ^xyat 'f ' f ff R&nt '' '/ /' / , 2 R&e&vu&d 2)-&&cl 0-^ Lot, cAo. 86 lAynuyyi ^t. a^yicL Qfto-h& tk&v£Ay}^ ^lOAyv tk& €9C&<^toto-i at 'vyou cL&&&aQy&cL S^aXAeA^'o^ (^ataZ& Viu/it af ^ui^Y ^ ^■ S'a^ici tk&yi-v an 6-111, '^&h ek&ek^ Scila'yL^& a^^ cML^aiwit @ / /O / /OO ? // 7-500 SECOND SET loa Journal Opened /imjwvlttt, 3^huv^(iciy, r:j^o6-iAiciii/' / , /f. €d. Sv-&v&CC ? 9 ? ? ? €x/Jiieym& • ? ? ^k. €. ^tudemt ? ? / f'fovv&v-itle, BamJo fSOO /600 ^ \^ 0^ ^ ^ ^ ?^ K ^ l^^ OS P M P O P H ^ ^ W p o P H ^ I2; w P P H ^ )^ SECOND SET 105 The Bank Account is usually kept on the stub or margin by entering thereon the sums deposited, and deducting the sums withdrawn. Checks Payable to the Order of the Payee must be indorsed by him before payment by the bank, and when so indorsed and returned to the drawer they become vouchers against the payee. Stub or Margin Deposit Book Ticket (to be detached) Deposited by ^L €. Miidtnt in the fgomebtlle Bank HoMEviLLE, (state), <^£A. 6, 19 — Currency Gold Silver Checks : ^dv-id cbaci(^& 60 fSem/j. £utt&v 60 /ife/yuiAf /lfu^^t £6 1^6 Deposited by 3^/b, 'S. ^tud&9tt in the ?^omebille 3Sanfe HoMEviLLE, (state), c^&lf-. 6, 19 — Cm-rency Gold Silver Checks : jba.v~icL jbo-cLcf& 60 Be/yif. ButteAy 60 /if&nAA^ /ifii'nC 26 126 Bank Pass Book (Left-hand page) (Right-hand page) Dr. HoMEviLLE Bank in Account with 3^k. €. ^tud&nt Cr. ^ / CL. B. (Teller's initials) /600 fCf— /^ ^k&^JU' v&twvyi&d // a. IS. /26 /// f76 // /^ ^/f 66 160 /OO 20^ 26 ^(^^.60 /066 60 Bata/n/R^ Feh. u Balance 1079 05 2/^^ 66 2/^^ 66 ^eA. /6 f07^ 06 c^^^. 28 ff 23 r^.A 1306 f200 f/60 // 28 r.^. 773 60 /^O HO Ba.ta,'yL&>& Feb. 28 Balance 2667 55 3/67 66 3/67 66 mat. / 2667 66 106 APPLICATION OF PRINCIPLES Balance Sheet, List i I I ^ ^ ^ ^:i ^ ^ ^ ^ 'o '^ ^ ^ k^ 'o ^ ^5 ^ K ^ 5:i. ^ 'O i:ix 'v:ss "^ ^ -^ ^ \i ^ K K ^ ^ '>5 ^ '^ ^ 'o ^ oq y:^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ 1^ tv »o '^'i \i ^ ^ ^ *:o iQ ij ^ ^ ^ ^ 'v^- ^ ^5 ^ ^ ^ ^ ^ ^ ^ Si ^ ^ ^ Vi ^ ^ ^ ^ 03 5^ ^^ Vi ^- ^ ^ ^ Oq ^ ^ ^ ^ ^ K ^ Oq Oq U-, ^ j^ '^^ ^ ^ ^ ^ ^ 'b ^ ^ tvK^^^^^^ ^::b ^ ^ ^ "^M "^ ^ ^ ^ ^ ^^ ^ ^ ^1 4 ■^ -ni Qc ^ "^ '^ =1 SECOND SET 107 SECOND SET. — MEMORANDA OF TRANSACTIONS, Continued Homeville, Thursday, Feb. 15. Bought of Gray & Co. 20 bbls. prime pork, at $ ? ; 15 bbls. mess beef, at $ ? ; total, f ? ; gave in part payment my check for ^200 ; balance, t*$ ? , to remain on account. Feb. 16. Bought of John Jenkins 20 bbls. superfine flour, at $ ? ; 20 bbls. Minne- haha flour, at $ ? ; total, ^ V ; gave in part payment my check for $150 ; balance, $ ? , on account. Feb. 10. Sold Benjamin Butler 15 bbls. Michigan apples, at .| ? ; received his check on Fidelity Bank for -130; balance, $ ? , on account. Feb. 17. Paid Charles Fuller's bill for repairs on building, No. 86 Union St., in cash, $35.25. Feb. 17. Sold Ingless & Co. 6 bbls. prime pork, at $ ? ; 5 bbls. Minnehaha flour, at $ ? ; total, $ ? ; received in part payment their cl^eck on Traders' Bank for $75; bal- ance on account. Feb. 19. Paid Gray & Co. $ ? , per check, for balance of bill of the 5th inst. Feb. 20. Received $50, per check on Park Bank, of Henry Hunt, to apply on his account. Feb. 21. Sold David Dodge 15 bbls. superfine flour, at $ ? ; 5 bbls. mess beef, at $ ? ; total, $ ? ; received in part payment his check on Park Bank for $ 50 ; balance, $ ? , on account. Feb. 23. Received of Ralph Gale $50, for rent of store, No. 86 Union St., to Mar. 1, 19 — , per check on State Bank. Feb. 23. Sold Ingless & Co. 7 bbls. prime pork, at $ ? ; 15 bbls. Michigan apples, at $ ? ; total, $ ? ; received in part payment their check for $50; balance on account. Feb. 23. Received from the executor of my deceased father's estate, $1000, per check on Homeville Bank, as a final payment, and invested the same in the business. Feb. 23. Deposited all checks on hand in the Homeville Bank, $ ? . Feb. 24. Sold Edward Everett 3 bbls. prime pork, at $ ? ; 4 bbls. Michigan apples, at $ ? ; total, $ V ; received, per check, $40 in part payment; balance, $ ? , on account. Feb. 24. Received of Henry Hunt $ ? , per check, in full of account. Feb. 26. Sold Lewis Lathrop 3 bbls. mess beef, at $ ? ; 6 bbls. Michigan apples, at $ ? ; total, $ ? ; received, per check, $25 in part payment; balance, $ ? , on account. Feb. 26. Sold Henry Hahn, for cash, 12 bbls. JSIichigan apples, at $ ? ; 4 bbls. super- fine flour, at $ ? ; total, $ ? ; received his check on Homeville Bank for the amount. Feb. 28. Sold for cash my entire stock of Mdse. to James B. Hudson, including fuel on hand, rent, and insurance, as follows: 8 bbls. superfine flour, at $ ? ; 19 bbls. Minne- haha flour, at $ ? ; 9 bbls. mess beef, at $ ? ; 11 bbls. prime pork, at $ ? ; 23 bbls. Michi- gan apples, at $ ? ; 1 ton coal, $6.50 ; 1 month's rent, $20 ; 11 months' prepaid insurance on Mdse., estimated value $10.08 ; total, $ ? ; received his check on the Homeville Bank for the amount, $ ? . Feb. 28. Deposited all checks on hand in Homeville Bank, $ ? . J^yvutTbtmAf of <^iMp&ity en fici'rut, rS^tl}-. 28, /f . Real €Qtat&, ^to-v& V^ Lat, cAo. 861Am,uyn> oft. 7750 // // 6 a^ve^jCa/Kctvn^ S^t6-a',B'uyiv^yL ^0-. @ 65 S25 , JnQAiu^'kKe^&, // "yKo-ntk^, an, ^tav& 6^ 67 108 APPLICATION OF PRINCIPLES Footing of Trial Balance, Feb. 28, 19- Listl $15025.21 2 $ 15049.86 3 4 $15074.51 $15099.16 Cash on Hand, Feb. 28, ig— 5 $15123.81 6 $15148.46 Listl $ 103.83 2 $99.23 3 4 $ 94.63 $ 90.03 Cash in Bank, Feb. 28, 19— 5 $85.43 6 $80.83 Listl $2667.58 2 $2671.28 3 4 $2674.98 $2678.68 5 $2682.38 6 $2686.08 Footing of the Day Book and Journal, Feb. 28, 19— Listl $5395.21 2 $5416.71 3 4 $5438.21 $5459.71 5 $5481.21 6 $5502.71 S^Ual ISd^ariM., Stly. 28, /^_ - £voit / S'a.€^& aj^ L&cLcft'V Hjne^n Ci^(^itnLiy ^. Sata .n&ta^ 1026^ 55 3~/h. €. QjUtcL&nt, S'ho^vC&to-v 7 /026(^ 55 ^0 ^0 B&njciyyv\yyi Bwtt&v 7 ^0 ^0 /f 65 ^clw-cfyVcL Sv'&'httt 7 /9 65 //d ^dv-icL Jbo-cl^e 7 //5 22/7 6/ 2//3 78 ^a^/i 8 /03 83 3/2 ^0 36/ 35 S^to-uv ^ ^8 ¥■5 208 25 232 05 me.Q^ £e.e{ ^ 23 8d 3/ 07 58 HO /"fom.e,v-itt& fSanh /O 2667 58 2^0 277 50 a-'f^^m. /O 37 50 f^O 3^3 75 ^VCLJ V (^0-. /o 253 75 36^ 50 ^03 65 ^vLyyL& ^aik/ / / 39 /5 83 37 /O 08 Jit^uuim.4>.& / / 73 2c^ 7635 25 50 Rtcit Sitate., limio-yi ^t. / / 7^85 25 '/87 80 Jyuftm^ V ^a. /2 /87 80 3^ 75 26 50 S'X.^&Tidey /2 /3 25 325 397 R&aZ €atat&, /Svo-ii^n ^. /2 /2 325 397 38 / 5 /2 38 /5 /5025 2/ /5025 2/ / /O69 20 //069 20 SECTION THREE BUSINESS SETS FOR PRACTICE IN MODERN BOOKKEEPING JOURNAL-DAYBOOK AND CASH-JOURNAL >J 49^ 51)* 53)* 55)* Flour, Extra bbl. 4.50 4.55 4.60 4.65 4.70 4.75 Oats bus. 35^ 37^ 39^ 41)* 43)* 45)* Molasses gal. 58^ mf 62^ 64)* 66)* 68)* Selling Price Lists Articles Sold Per 1 2 3 4 5 6 Wheat No. 1 bus. 58)* 60^ 62)* 64)^ 66)* 68)* u u 2 (( 53)* 55)* 57)* 59)* 61)* 63)* Sugar A lb. 5i)* 6)* 6J)* 6^)* 6|)* 7)* " B u 4|)* 5)* 5tJ* 5i)* 5|)* 6)* Corn bus. 48)* 50)* 52)* 54)* 56)* 58)* Flour, Extra bbl. 5.40 5.45 5.50 5.55 5.60 5.65 Oats bus. 38)* 40)* 42)* 44 46)* 48)* Molasses gal. 67)* 69)* 71)* 73)* 75)* -77)* MEMORANDA OF TRANSACTIONS Homeville, Thursday, March 1, 19- ^ 2500 in cash. I commenced business this day and invested Mar. 1. Mar. 2. Mar. 2. March 1. Mar. 3. Mar. 3. Mar. 5. Mar. 5. oats, at ? )* ; Mar. 6. Bought of R. G. Kimball, for cash, 1000 bus. No. 1 wheat, at ? )*. Sold D. H. Cochran, for cash, 250 bus. No. 1 wheat, at ? <*. Paid George W. Plympton cash for 3 months' rent of store, at '$30, beginning Bought of Knight & King, on credit, 2000 bus. No. 1 wheat, at ? )*. Sold Leonard Lyon, on credit, 350 bus. No. 1 wheat, at ? )*. Bought of Marion Mead, on credit, 50 bbls. A sugar, 12500 lb., at ?)*. Bought of Nathan Norton, on credit, 750 bus. corn, at ? )* ; 2000 bus. total, I ? . Sold Orrin Olson, on credit, 400 bus. No. 1. wheat, at ?)*; 20 l)l)ls. A sugar, 5000 lb., at ?)* ; total, ^ ? . 112 PRACTICE IN MODERN BOOKKEEPING Mar. 6. Insured my stock of merchandise in the York Insurance Co., through Kinsley & Co., their agents, for $3000, at 2i % premium, $ ? ; paid cash, $ ? ; policy dated Mar. 1, 19— . Mar. 7. Bought of George Piatt, for cash, 150 bbls. extra flour, at -$ ? ; 900 bus. No. 2 wheat, at ? J? ; total, $ ? . Mar. 7. Sold Charles Ovenshire, for cash, 250 bus. corn, at ?^; 300 bus. oats, at ? ^ ; total, § ? . Mar. 7. Received ^ 100 cash, of Leonard Lyon, to apply on account. Mar. 8. Paid Knight & King $ 500 cash, to apply on account. Mar. 8. Bought of Philip Pond 900 bus. No. 2 wheat, at ? ^ ; 600 bus. corn, at ? ^ . total, $ ? ; paid him ^ 350 cash, to apply on the bill. Mar. 9. Sold Quinn & Co. 500 bus. oats, at ?^; 10 bbls. A sugar, 2500 lb., at ?)>; total, $ ? ; received cash, $ 175, to apply on bill. Mar. 10. Paid James Brown cash for sei-vices as clerk, $ 22.50. Mar. 10. Received $ 300, in cash, to apply on account of Orrin Olson. Mar. 10. Bought of Marion Mead 75 bbls. A sugar, 18750 lb., at ? ^ ; 40 bbls. B sugar, 10000 lb., at ? ^ ; total, $ ? ; paid him $ 400 cash, to apply on the bill. Mar. 10. Sold Leonard Lyon 20 bbls. extra flour, at $ ? ; 1500 bus. No. 2 wheat, at ? ^ ; 300 bus. corn, at ? ^ ; total, \$ ? ; received $ 500 cash, to apply on bill. Mar. 12. Sold Orrin Ols^200 bus. oats, at?^; 50 bbls. extra flour, at $ ? ; total, $ ? ; received $ 200, in cash, ts apply on bill. Mar. 12. Bought of Knight & King 1500 bus. No. 1 wheat, at ?^; 2000 bus. No. 2 wheat, at ? ^ ; 500 bus. corn, afi f; total, $ ? ; paid them cash, $ 500, to apply on bill. Mar. 13. Paid Philip Pond $250, in cash, to apply on account. Mar. 13. Received $ 150, in cash, to apply on account of Orrin Olson. Mar. 13. Sold D. H. Cochran, for cash, 1250 bus. No. 1 wheat, at ? ;!> ; 350 bus. corn, at ?;* ; 500 bus. oats, at ? f ; total, $ ? . Mar. 14. Paid Knight & King $ 450, in cash, to apply on account. Mar. 14. Sold Quinn & Co. 100 bus. corn, at ?)*; 50 bbls. extra flour, at $ ? ; total, $ ? ; received $ 200, in cash, to apply on bill. Mar. 14. Sold Orrin Olson 30 bbls. A sugar, 7500 lb., at ? ^ ; 10 bbls. B sugar, 2500 lb., at ? j^' ; total, $ ? ; received $ 350, in cash, to apply on bill. Mar. 15. Sold Ray Russell 20 bbls. A sugar, 5000 lb., at ? ^ ; 20 bbls. B sugar, 5000 lb., at ? ;» ; total, $ ? ; received $325, in cash, to apply on bill. Mar. 15. Paid Knight & King $500 cash, to apply on account. Mar. 15. Paid Nathan Norton $ 600 cash, to apply on account. General Results, March 15, 19 — Footings of Trial Balance Listl $22283.63 2 $22837.00 3 4 $23390.38 $23943.75 Cash on Hand 5 $24497.13 6 $25050.50 List 1 $849.50 2 $862.00 3 4 $874.50 $887.00 Total Inventory 5 $ 899.50 6 $912.00 List 1 $ 3855.01 2 $4008.88 3 4 $4162.76 $4316.63 5 $4470.51 6 $4624.38 THIRD SET 113 Stock Record cAa. / iV/uat mav. / fOOOiy.UA.. 9 mav. 2 260 6.ti^. 9 // d 2000 ? // 3 360 9 // /2 1500 ^600 ? 6 /3 ^00 /260 2260 ? 9 J^a. 2 Wvmt Iflav. 7 (^00 6.UQ.. ? nuv. 10 1600 6-u^. ? // 8 qoo ? f // /2 2000 3800 (L ^"Viaciv Triav. 6 12600 l{y-. ? nuv. 6 6000 U-. F // 10 /8760 3/260 ? f6 2600 7600 6000 20000 ? ? B ^Uyadv mouv. /O 10000 16^. ? mciv. 2600 16^. 6000 7600 (P.ahiiy mav. 6 760 {yuQ.. 9 nuv. r 260 6-11^. ? // S 600 9 // /^ 300 ? // /2 600 /860 9 /3 360 fOO /OOO ? ? (Qat^ max.. 6 2000 {y-tcQ.. ? // // 7 /3 300 (y^ica.. 600 200 600 /600 ? f ? Sta%v\y, Soottcb ma.v. 7 /60 U^U. 9 ^/r^^. fO 20 6-6-U. ? ff /2 60 ? // /^ 60 /20 ? 114 PRACTICE IN MODERN BOOKKEEPING Journal-Daybook /6 f6 /5 /6 /^ 17 17 /¥- /6 /6 /^ /8 /8 /6 /^ J6 lAUi&at ZV'k&at €'Xyjiie,'yuQy& ZOA&at fOyiix^t If fCvvicf £ex>'yia,vcL /Ji^cyyi ZO-k&at cfu<^v THa^vian. ?}%cul ^vrv cAaZkoM' cAcntan ivvvyi (UCQyO-n W-k&cit J^ nQAA.'u^'yi^& {yuQyi/yieA/Q^ / Bat. a-j^ R. ^. fCiA-^^lu^tt ofaLl 3. /if. ^aJxicL^ 260 {y^uQ.. cAo-. / 68 f Rtnt 0-^ of'tav& ^' 8 yyuaa.. $30. 2000 (yicQ.. cAa. / 66^ ^ot. o-i Ui&'yyv o-Tv % 8 ofo-tcl kl/yyu an % 860 (ywQ.. cAa. / 68 i 60 {>^{yU. CL, 12600 IL ^ y^ ^ Bat. at /ivifb an % 760 (yivQ^. 2000 '/ Bat. of kiAyv an % 6 ^6i^ 86^ ofalcL ki^yyv an % ^00 {>^UQ.. oAa. / 68 (f^ 20 {^{^U. (Z, 6000 [{>.. ^y i 6 $8000 a^ ?ncU&. 2 y^ % 2600 660 /^6 ^0 //OO 208 6^8 887 700 6/<^ 76 68/8 76 60 60 76 2600 660 /^6 ^0 //OO 208 6^8 /087 287 7_6_ 68/8 76 60 60 76 THIRD SET 115 Journal-Daybook, Continued 7, /f- /8 Slau'o /60 6.6.U. €'?c. f^.60 676 /^ mke^t ^00 (yuQ.. c/to-, 2 60^ ^60 16 /6 ^a^k Bat. ajj' ^&(yi(j& S'taXt -r 23^ //26 ^CLQ^k /6 (^awi 260 {yiiQ.. ^8i /20 16 HaL^ 300 n -r 38^ /OO //f ^<^^k / /7 JLeanaxcL JLucyyi o 600 /OO fC}^i(fkt V Klvxf ^OuicL tk&yyv an % /6 da^k 600 /¥■ o ^60 IM&at o ■■ - - ^00 (yuQ.. c/ta. 2 60^ /6 ^cyvrv 600 " ¥■6^ 270 /7 ikiti^ ^(yyU Bat. a^ kiyyu 720 f7 MUl^ io-nJ. S^Oytd kiAiv an 6-ilt 360 /6 ^a^k c? 333 76 360 ^ui'}^'n. V €a. 7 ofatcL tke/WL' /^ €aU 600 ^^. 38 i 1^0 /6 cfu^CLV fO(y{>-U.(Z,2600t(y. ^yj /^3 76 /6 ^a^k R£^&Cv-&cl a^ tk&m. an ua /76 /^ ^tuUn V ^. / /i /76 2/ ^9C'^&n^& ^atd ^Uik, kiv& 22 50 /6 e^k //? 22 60 /6 ^^k / u Retstv-&cC at kv'yyv a^^ % 300 18 H'Llin HUyOTV 300 3860 26 3860 26 116 PRACTICE IN MODERN BOOKKEEPING Journal-Daybook, Continued /6 ofuc^OA^ /8 760 16-. (Z,^%J f8q0. 63 /266 63 /^ TncM^icyyv Tyiex^J. /OOOO '' B, S'^IJ 876. /266 63 Bat. a^ kiATu /^ TyioA^unv Tyi&ad S^avcC ki/yyu aiiy (hXI ^00 /6 ^o^ //^ ^00 f7 L&anoA^ Jji^cyyv ofalcC kCryu 10^7 /8 Stcyiub 20 {^-(yU. S'xliA^L, f6.^0 f08 /^ KUi&al /600 6-u^., cAo. 2 63^ 7^6 /6 ^^nm. BOO /. ^8i^ /^^ /6 €cLQ./l ^e^&iv-&d a^ ki/vyv cyn^ 6-itt 600 /7 £&(yyvaAxi L^yyv - f Oi 600 /a Hvbl'w Q-Uxyyv Qfo-tcL ki/vyv 3^6 /q HaU 200 (ma^. 38^ 76 /8 SixyuA, 60 {y{pU. SocUcu $6.^0 270 /6 (^AX^k R&&&iA}-&cC 0-^ kCw (yyv (UZt 200 /8 €.w\yyv €t(uyyv f Oi 200 /^ lAUie^t /600(yw^.oAo:/,66t f826. 1826 /6 ^'UVl 2000 // // 2,60^ fOOO. 226 600 // ^6^ /7 fOwUfkt V fCinc^ Bat. at tk&yyv 2060 17 fOyvlxfkt V fClnixf S^ayicC tk&yy'L an 6-111 600 /6 ^o^ / P 600 /7 Bkitifc S^cynd ^oAyci kiyyv an % 260 /6 ^qA / ? 260 /6 ^^k / o Re^eAA>-£ycL at kimv an % /60 /8 H^A.V'yi €i4UJ/yL 63 /60 6708 6708 63 THIRD SSET 11' Journal-Daybook, Continued /.5 ^a^k ^"oU A //. ia^ku^.^t /083 /f Wie^t f260 (yicQ.. o/ta. / 68 f 726 /6 ^vn. 360 // ^c?^ / 68 /^ daU 600 // 88^^ ! If f^O /r- // K^icfkt V Klncf ^a^id tk&m. an % ^60 /6 (^ao^k ^60 /•/■ /^ lu.Un V ^. ofatcl tke^yo 3/8 16 (Havj^ 100 {yuA.. ^8i ^8 /8 S^tawb 60 (y-Uo.. S^tuju f6.^0 270 f6 ^CL^k Re^^vv-^ct aj- tkt/yyv (yyi {>-itt 200 /^ ^'winn V €a. 1 II 200 /y- 18 Q.'L'bin dtoyO-TV ^atcL kimu 660 . 16 ofuCfOA, 7600 16.. a, 6^^ ^, f^3/.26 2600 n fS,^^lJ, //8.76 660 f5 €a^k R&AAAiA7L /^ /^ f6 /6 /6\ f7 f7 /7 /8 /8 /8 /9 /9 /9 20 2/ 2276 363 362 660 ^/6 76 130 f /2 67/6 60 /3 60 60 76\ 60 88 2600 l^6(^ /200 /20 ^37 67/6 38 60 88 MEMORANDA OF TRANSACTIONS, Continued Homeville, Friday, March 16, 19 — . Opened an account with the Homeville Bank, and deposited $ 750 in cash. Mar. 16. Bought of Silas Smith, on credit, 50 bbls. A sugar, 12500 lb., at ? f ; 6500 gal. N. O. molasses, afi f ; total, $ ? . THIRD SET 119 t Mar. 16. Sold Ray Russell, on credit, 350 bus. No. 1 wheat, at ? ^ ; 650 gal. N. O. molasses, at ? jz^ ; total, ^ ? . Mar. 17. Sold Amos Kellogg, for cash, 25 bbls. A sugar, 6250 lb., at ? ;* ; 10 bbls. B sugar, 2500 lb., at ? j* ; total, $ ? ; received his check on Park Bank, in full payment. Mar. 17. Received % 500 of Ray Russell, on account, per check on State Bank. Mar. 17. Dej^osited Amos Kellogg's check, $ ? , and Ray Russell's check, $ ? ; total, I ? . INlar. 19. Bought of R. G. Kimball 40 bbls. A sugar, 10000 lb., at V ^ ; 74 bbls. B sugar, 18500 lb., at ? ^ ; total, ^ ? ; paid in full for same, per check on Homeville Bank. Mar. 19. Paid Knight & King, on account, per check on Homeville Bank, $200. Mar. 19. Bought of Nathan Norton 60 bbls. A sugar, 15000 lb., at ? ^ ; paid him, per check on Homeville Bank, $275, to apply on bill. Mar. 20. Sold Quinu & Co. 10 bbls. A sugar, 2500 lb., at ? ^ ; received their check on Homeville Bank for $ 100, to apply on bill. Mar. 20 Sold Leonard Lyon 2600 gal. N. (5. molasses, at ? J^' ; 20 bbls. A sugar, 5000 lb., at ? ^ ; total, $ ? ; received his check on Park Bank for $ 1000, to apply on bill. Mar. 20. Deposited Quinn & Co.'s check, $ ? , and Leonard Lyon's check, $ ? ; total, $ ? . Mar. 21. Bought of Thomas Tyler 8250 gal. N. O. molasses, at V ^ ; paid him $900, per check on Homeville Bank, to apply on bill. ISIar. 21. Paid Nathan Norton $ 100, per check on Homeville Bank, on account. Mar. 22. Sold Quinn & Co. 15 bbls. A sugar, 3750 lb., at ? jz' ; received their check on Homeville Bank for $ 175, to apply on bill. Mar. 22. Received Leonard Lyon's check for $ 1250, on Park Bank, on account. Mar. 23. Paid Silas Smith $ 750, per check on Homeville Bank, on account. Mar. 23. Bought of Thomas Tyler 3250 gal. N. O. molasses, at ? ^ ; paid him $750, per check on Homeville Bank, to apply on bill. Mar. 24. Sold Ray Russell 1400 bus. No. 2 wheat, at ?J^ ; 20 bbls. A sugar, 5000 lb., at ? jz* ; total, $ ? ; received his check on State Bank for $ 700, to apply on bill. Mar. 24. Sold Quinn & Co. 200 bus. oats, at ? ^ ; 400 bus. corn, at ? ^ ; total, $ ? ; received $ 150, per check on Homeville Bank, to apply on bill. Mar. 24. Received $ 300 from Leonard Lyon, per check on Park Bank, on account. Mar. 24. Deposited in Homeville Bank, Quinn & Co.'s check for $ 175, Leonard Lyon's check for $1250, Ray Russell's check for $700, Quinn & Co.'s check for $150, and Leonard Lyon's check for $300; total, $ ? . Mar. 26. Sold Ray Russell 1000 bus. No. 1 wheat, at ? ^ ; 30 bbls. B sugar, 7500 lb., at ? ^ ; total, $ ? ; received his check for $ 750, on State Bank, on bill. Mar. 26. Paid James Brown for services as clerk, $ 22.50, in cash. Mar. 26. Sold Henry Earl, for cash, 500 bus. No. 1 wheat, at ? ^ ; 1350 gal. N. O. molasses, B,t2 f ; total, $ ? ; received his check on Park Bank, in full payment. Mar. 27. Sold Leonard Lyon 18 bbls. extra flour, at $ ? ; 10 bbls. A sugar, 2500 lb., at ? ^ ; total, $ ? ; received his check for $ 200, on Park Bank, to apply on bill. Mar. 28. Sold Orrin Olson 20 bbls. B sugar, 5000 lb., at ? ^ ; 300 bus. oats, at ? ^ ; total, $ ? ; received his check on State Bank for $ 300, to apply on bill. Mar. 29. Sold Ray Russell 400 bus. No. 1 wheat, at ? ^ ; 12 bbls. extra flour, at $ ? ; total, $ ? ; received his check on State Bank for $ 250, to apply on account. Mar. 30. Sold Henry Earl, for cash, 450 bus. corn, at ? ^ ; 15 bbls. A sugar, 3750 lb., at ? ^ ; total, $ ? ; received his check on Park Bank for full payment. Mar. 31. Deposited in Homeville Bank, Ray Russell's check, $750; Henry Earl's check f or $ ? ; Leonard Lyon's check, $ 200 ; Orrin Olson's cheek, $ 300 ; Ray Russell's check, $25a; Henry Earl's check, $ V ; total, $ ? . 120 PRACTICE IN MODERN BOOKKEEPING Inventory of Unsold Property, March 31, 19 — 80 bbls. A Sugar, 20000 lb. @ (cost) ? f 24 " B " 6000 " @ " ? f 8400 gal. N. 0. Molasses @ " V ^ 900 bus. No. 2 Wheat @ " ? ^ 2 mos.' Rent, prepaid @ $ 30 11 " Insurance, prepaid @ 6.25 ? 9 ? 9 9 60 68 75 6625 75 Trial Balance, March 31, List I Face of Ledger Open Accounts P. Balances ? ? Th. E. Student 14 3029 88 ? ? Wheat 14 340 50 ? ? Marion Mead 14 1459 38 ? ? Cash Sugar ^ 22 77 ? ? 16 737 49 ? ? Corn ]^ 16 25 50 ? ? Knight & King 17 1000 ? ? Leonard Lyon 17 170 45 ? ? Philip Pond 17 120 ? ? Orrin Olson 18 467 ? ? Xathan Norton 18 775 ? ? Flour 18 27 ? ? Insurance 19 71 88 ? ? Oats 19 15 ? ? Quinn & Co. 19 479 13 ? ? Ray Russell 20 901 05 ? ? Molasses 20 4458 ? ? Silas Smith 20 3613 75 ? ? Thomas Tyler 20 2120 ? ? Expense 21 97 50 ? ? Homeville Bank 22 4385 51 4171816 41718 16 12185 51 12185 51 Footing of Trial Balance, March 31, 19 — Listl $41718.16 2 $42806.38 3 4 $43894.66 $44982.88 Cash on Hand, March 31, 19— 5 $46071.16 6 $47159.38 List 1 $77.00 2 $89.50 3 4 $102.00 $114.50 Cash in Bank, March 31, 19— 5 $127.00 6 $139.50 List 1 $4385.51 2 $4391.50 3 4 $4397.51 $4403.50 5 $4409.51 6 $4415.50 List 1 $6625.75 2 $6876.75 Total Inventory, March 31, 19— 3 4 $7127.75 $7378.75 5 $7629.75 6 $7880.75 GOMMERCIAJ. PAPER 121 COMMERCIAL PAPER Promissory Notes A Promissory Note is a written agreement by one party, called the maker^ for or in consideration of some value received by him, to pay to another party, called the payee^ or to his order, or to bearer, at a fixed time, a detinite sum of money. This promise must be absolute, no contin- gency being admissible ; the time of payment and the amount to be paid must be definitely stated, and the consideration must be a valuable one. A Negotiable Promissory Note is one payable to order or to bearer. If made payable to the payee or hearer, it is transferable from one holder to another by simple delivery ; but if made payable to the payee or order, it is transferable only by indorsement or assignment. • Form of a Negotiable Promissory Note H^T^'^'lioo' Clinton, N. Y., a^it /7, 19—. cAx^^eX/u cLauQ. -.^.^.^.^.^.^.^-^...^ after date, for value received, J promise to pay RadneA^ #. KAAyviyall , ..^.^.^.^.^.^.....^....^.^....^.^ or order, S^cyiiv flfwyicOv&ci S^Of-tA^-a^eA^-an^ and ^^Jioq -^-^-^.^.^.^.^-...^-^-^-^-^^^^^ Dollars, at tk& /lf-eAxxLU^ promise to pay Ro-cOyieA^ ^. /Clvv6-alt, or order, S^a^cv fi'um'cive^ <^ljtu-Q^eA)-&'yi oa^cL ^^Lqq Dollars, ; at tk& /lfa'nv&\Hl'l& JSoLmJc, lA^Xk vnt&v&oX^ at 7^^' ' Value received. Ko. f . jbcLv-lcL /if. (^a(3,k/uirb, A Principal and Surety Note is one which is signed by the maker, and also by one or more persons as sureties. Form of Principal and Surety Note 100' Clinton, N. Y., {MvU /7, 19 c/tiyteXAf cLoAAQy after date, for value received, c/ promise to pay RacUoeAf ^. /Clyyv^^tt^ or order. S^awb /i-wncUy&cL (^viti^-O'SA^&yv a^ncC ^y^, ^ Dollars, at 'vyL'i No. 6. When we issue our promissory note we should record the fact in our bill book, under Bills Payable, and when w^e redeem our note, either wholly or in part, we should com- plete the record by an entry in the same book. We should also cancel our signature and file the note as a voucher. See pages 134 and 135. COMMERCIAL PAPER 123 When we receive another's promissory note, it should be recorded in the bill book, under Bills Receivable, and when the note is paid, or otherwise disposed of, the fact should be entered in the same book. See pages 134 and 135. Notes Payable on Demand. — Notes made payable on demand draw interest from the date of demanding payment. A note does not draw interest until maturity unless it is otherwise stated in the note. An indorser becomes liable for the payment of a note if the maker fails to pay. Drafts and Acceptances A Draft or Bill of Exchange is a written order or request from one party, called the drawer^ on a second party, called the drawee^ to pay to a third party named therein, called the payee^ or to his order, a specified sum of money. The Parties to a draft or bill of exchange are as follows : The Drawer, or first party, is the party who draws the draft. The Drawee, or second party, is the one on whom the draft is drawn. The Payee, or third party, is the party in whose favor the draft is drawn. Form of Time Draft after Sight At ^ki'iZif cLa^'m/ ^ Pay to c^/t. €. oftiidemt (^-na /ifu'ndv&ct CLncL ^^Lqq and charge to the account of To Jb-CLV-vcL /if. ^.o^kvayv, Albany, N.Y., nic^x^lv 3, 19—. sight, value received, or order, ^ Dollars, tH>. ru. In the foregoing draft, George W. Plympton is the drawer, David H. Cochran is the drawee, and Tli. E. Student is the payee. Accepting a Draft. — The drawee of a draft accepts the draft by writing across its face the date, the word accepted, and his signature. The drawee then becomes the acceptor, and the draft becomes an acceptance. Form of Accepted Draft or Acceptance At ^kViZu cLxrXio/ Pay to S^k. €. ofUccl&nt €n& /fu/ncCv&cC cuncL ^^/loo Albany, K^., maA^ 3, 19—. ^^^jll^^ht, value received, or order, Dollars, and charge to the account o To Jb-aiyvcC ff. ^.o^k\xM^^ Stouft W-. S^t/ifm/ptcyyu. 124 PRACTICE IN MODERN BOOKKEEPING The foregoing acceptance becomes a written promise of the drawee to pay the accept- ance at the specified time, and therefore has the same force as a promissory note signed by the same party. When we accept a draft, we should record the fact in our bill book, under Bills Payable, and when we redeem it, we should mark it " paid " in the bill book, and also cancel our signature and file the draft as a voucher. See pages 134 and 135. When we receive another party's acceptance, we should make a record of it in the bill book, under Bills Receivable, and when it is paid, or otherwise disposed of, the fact should be entered in the same book. See pages 134 and 135. A Time Draft is one which is payable a certain time after sight or after date. After Sight. — A draft drawn payable a certain time after sight begins to mature from the date of acceptance. After Date. — A draft drawn payable a certain time after date begins to mature from the date of the draft. Form of Time Draft after Date Albany, N. Y., Tf^oA^k 3, 19 — . ^kxAty'je^i^ cij^t&v elate, Pay to Raclm.&'if^-^. /CvnUnill, €.'yv& fi-wncOv&ci ouncL ^^Jiqq and charge to the account of To ^aayicC /if. ^^kiayyv, Ulntxyyv, cA. ?/. value received, or order, Dollars, f/00'^'\ \ Stavab Zi}-. S^tywyJotaTb. A Sight Draft is one which requires immediate payment, though in some states days of grace are allowed. Form of Sight Draft f/OO""". Albany, N. Y., moA^k S, 19—. At ^iakt, ^^ value received. Pay to Ro-drueAf #. /Ciyyvlmll, or order, ^^yv& f-fwruUexi cuyid ^^f^^Q ...^.........^.^...^.^....^........^^ Dollars, and charge to the account of To ^a/v-icl /if. ^&huin, Stohab lA}-. S^tyryuptaru. Drafts Payable on Demand. — Days of grace are not allowed on drafts drawn payable on demand. Protesting is formally demanding payment of a note or draft when it falls due, and notifying the indorsers that they are held liable for any loss or damage from non-pay- ment or non-acceptance. It is not necessary to protest a note when there is no indorser. An indorser who has been compelled to pay a note may recover his loss from the maker if the latter has property. COMMERCIAL PAPER 125 Maturity of Commercial Paper It is a matter of great importance to the man of business to know the exact day on which a note or acceptance matures. If an indorser is not notified of the non-payment of a note or acceptance on the proper day, the law will not hold him for the payment of the dishonored paper. A note may be dated earlier or later than the day on which it is made. If the date or time to run is omitted, it may be established by proof. A note need not be dated at the place where it is made, and may be made payable at any particular place that may be agreed upon by the parties. If agreeable to the payee, the maker ought to fix the place of payment, which may be at his own ofhce or his place of deposit. The Day of Maturity is the day on which a nOte or acceptance becomes legally due. In many of the states a note or draft is not legally due until three days after the expira- tion of the time specified in the instrument, except it contain the words " without grace." Days of Grace are three days allowed to the maker of a note and drawee of a draft beyond the stated time of payment. The statutes and customs of the different states vary in regard to days of grace, and holidays. The maturity of a note or draft is governed by the laws and customs of the state where it is made payable. Legal Holidays. — Commercial paper falling due on a legal holiday or on Sunday is payable the day before, in some states; the day after, in others. A Calendar Month is understood in determining the day of maturity when the time to run is expressed in months ; when the time is expressed in days, the exact number of days is used. Paper dated on the last day of the month for any number of months, payable in states where days of grace are allowed, will mature on the third day after the same day of the month if the month have so many days ; otherwise it will mature on the third day after the last day of the month. Illustrations. — A note payable one month after date, dated Apr. 30, will mature on the third day after May 30 ; and a note at one month dated May 31 will mature on the third day after June 30. A note payable one month after date, dated Jan. 31, will mature on the third day after Feb. 28 (or Feb. 29), Mar. 3 ; but if payable thirty days after date, it will mature Mar. 5 (or, in leap year, Mar. 4). Notes dated Jan. 29, 30, and 31 (also, except in leap years, Jan. 28), payable in one month, will mature on the same day. Mar. 3 (or, in leap year, Mar. 4). Indorsements of Commercial Paper An Indorsement is a writing, usually upon the back, but sometimes upon tlie face, of a negotiable instrument, by which the property therein is trans- ferred. It may be ivi blanks infulU qualified, restrictive, or conditional. An Indorser. — By writing his name across the back of a note or draft, the payee becomes an indorser, and thereby transfers his property in the instrument to another, who becomes the indorsee. If the indorsee of an instrument transfers it by writing his name below that of the former indorser, he then becomes an indorser. An Indorsement in Blank consists simply of the signature of the indorser. An instru- ment thus iudorsed becomes payable to hearer, and may be transferred from one party to another by delivery. 126 PRACTICE IN MODERN BOOKKEEPING An Indorsement in Full consists of direction to pay to some specified party or his order, and the signature of the indorser. A Restrictive Indorsement limits the negotiability of the instrument to a particular party, or to a particular purpose. The payee or first indorser only can make a re- strictive indorsement binding. A Qualified Indorsement is one made for a special purpose, as when the indorser wishes to free himself from responsibility should the maker refuse to pay. A Conditional Indorsement consists in making the payment depend upon some con- tingency, as " Pay to David Burt if State Superintendent." A Security Indorser is one who indorses commercial paper without owning it or having any interest in it. The promissory note No. 1, on page 121, is made payable to Rodney G. Kimball or order. Should Mr. Kimball desire- to sell this note, he could transfer his title or owner- ship to the buyer by writing his name across the back of the note. Had the note been made payable to Rodney G. Kimball or bearer, he could transfer his ownership to another party by delivery without indorsement. The maker of a note may make it payable to himself and indorse it in blank, and thus enable the holder to transfer it without indorsing, and thus w ithout liability. A Member of a Firm may indorse for all the members of the firm, but after dissolu- tion of the firm the indorsement must be made by the members severally. An Agent may indorse iat his principal. An indorsement should be written across the back of the instrument and above the middle, with the left end of the paper up. Forms of Indorsements In Blank c^/i. 0. ofVwd&nt In Full c^oy to cb-. L. /CLeAt&, cyb (yui&v. 3^k. €. ^tAocL&nt For Deposit of Check cyyiti COiuj. 23, /^ — . S^av deyJiw^AZ vyv Fob Collection S'ay to tk& cyicC&'b /lf(ymy& ^ttif fSa/vik^ iov e^ Guarantee of Payment c/ h.&'b&lyu auaAM.^t&& tJv& jiui,x^\yL&nt o^ tk& w-itkvrv ru)te. S'h. (o. c/ttul&nt Conditional <^a/u to jokw CC. 1h^&, (^ ^v&qa.- cl&nt o^ tk& fSociui oj' ^cOwe^tuyyi. i^k. €. ^tiuiemt Restrictive to ^. ^. €/icvtt^Qy (yyili^. <3^k. -&ci on tk& wdZkvru yu>t&, €n& /f'wyuU&cL Of Interest /^a^&tv-&d, Ctauf. 23f/9—, //f' Imt&imt to dat&. oik. S. ^t/wcl&nt Waiver of Protest i^ay to tk& otd&v oi lAMZttamv Z#. ^otw-eZt. S^vot&at lAhivv-exi. <^k. ) write in the receipt book all the receipts for money received, and on blanks receipts for aU money paid ; (c) write in the check book aU checks issued, and on blanks all checks received from other persons; (c?) write in the note book all notes issued, and on blanks all notes received from other persons ; (e) record in the bill book all notes issued and all notes received, and check in the bill book all notes redeemed and disposed of ; (/) prepare deposit tickets for all deposits made, and make corresponding entry in the bank pass book; (^g) write in the cash book all cash receipts and disbursements, closing the cash book Apr. 7 and Apr. 14. 2. Record in the journal-daybook all transactions to the 15th day of the month, and post to the ledger. 3. Take a trial balance, and prepare an inventory of goods on hand Apr. 14. 4. Close the ledger in current form, prepare business and financial statements, and make balance sheet. 5. Write up the business for the remainder of the month in the same way, closing the cash book Apr. 21 and Apr. 30, but closing the ledger in final form. FOURTH SET Buying Price Lists 129 Articles Per 1 2 3 4 5 6 Wheat, No. 2 bus. 50^' 52^ 54 i? 56}* 58^ 60 J* Sugar, A lb. 43^ 5^ 51^ r4^ 5|^ 6^ " B (( •3f 5^ 4^ 4i^ 4^^ 4|f 5^ Molasses gal. 58^ 60^ 62 j? 64)2^ 66^ 68 J? Apples, Mich. bbl. 2.75 2.80 2.85 2.90 2.95 3.00 Potatoes, Early Rose bus. 45^ 47^ 49^ 51^ 53^ 55^ " Snowflake (( 50^ 52^ 54^ 56 <* 58^ 60^ Rye a 40 <» 42^ 44 f 46^ 48)* 50^ Selling Price Lists Articles Per 1 2 3 4 5 6 Wheat, No. 2 bus. 53^ 55^ 57^ 59 1* 61^ 63 f Sugar, A lb. 5|^ Qf Hf 6if 6|^ 7j* " B (( 4|^ bf ^f ^o\f 5f;* 6^ Molasses gal. 67^ 69;* 71 J* 73^ 75^ 77^ Apples, Mich. bbl. 3.25 3.30 3.35 3.40 3.45 3.50 Potatoes, Early Rose bus. 56^ 58}* 60^ 62^ 64^ 66)* " Snowflake u 61^ 63^ 65^ 67^ 69^ 71 i* Rye a 44^ 46,<* 48^ 50^ 52^ 54)* MEMORANDA OF TRANSACTIONS Homeville, INIonday, Apr. 2, 19 — . Opened a new set of books with the following resources and liabilities, as shown by my balance sheet, Mar. 31. — Resources: cash on hand, f ? ; wheat on hand, % ? ; sugar on hand, % ? ; molasses on hand, % ? ; rent, prepaid, % ? ; insurance, prepaid, f ? ; Leonard Lyon's account, % ? ; Orrin Olson's account, % ? ; Quinn & Co.'s account, % ? ; Ray Russell's account, % ? ; Homeville Bank, on deposit, % ? ; total, % ? . Liabilities : Knight & King's account, % ? ; Marion Mead's account, % ? ; Nathan Norton's account, % ? ; Philip Pond's account, % ? ; Silas Smith's account, % ? ; Thomas Tyler's account, % V ; total, % ? . Note. — The items in the foregoing statement of resources and liabilities are taken from the balance sheet of Mar. 31. The student will use the same titles and corresponding amounts shown in his balance sheet. Apr. 2. Sold Ulysses Upham 7 bbls. A sugar, 1750 lb., at ? ^ ; received his note at 8 days in payment. Note. — All promissory notes in this set are drawn without grace unless otherwise specified. Apr. 2. Bought of Victor Van Ness 250 bus. early rose potatoes, at ? )* ; gave in payment my note at 8 days. Apr. 2. Paid cash for sundry expenses, $ 11.75. Apr. 2. Sold Zadoc Young 8 bbls. A sugar, 2000 lb., at ? )* ; 50 bus. E. R. potatoes, at ? )* ; total, $ ? ; received his note at 15 days. Apr. 3. Sold William Windom, on his note at 10 days, 450 bus. No 2 wheat, at ? )*. Apr. 3. Bought of Amos Arnold 325 bbls. Michigan apples, at $ ? ; gave in part payment my note at 10 days for ^500, and my check on Homeville Bank for the balance, ^ ? . 130 PRACTICE IN MODERN BOOKKEEPING Apr. 4. Sold Quinn & Co. 120 bbls. Michigan apples, at $ ? ; received in part pay- ment their ripte at 10 days for $175, their check on Homeville Bank for the balance. Apr. 4. Received Orrin Olson's note at 15 days for $250, on his account. Apr. 5. Gave Knight & King my note at 9 days for $ 500, on account. Apr. 5. Paid Nathan Norton in full of account, per check, $ ? . Apr. 5. Received Leonard Lyon's note at 12 days, for $ ? , in full of account. Apr. 6. Passed my note at 15 days to Philip Pond, for $ ? , in full of account. Apr. 6. Bought of Amos Arnold 750 bus. snowflake potatoes, at ? ^ ; 150 bbls. Michigan apples, at $ ? ; total, $ ? ; gave in part payment my note at 12 days for $500, and check for the balance, $ ? . Apr. 7. Sold Benoni Butler 4 bbls. A sugar, 1000 lb., at ? j^ ; received in full pay- ment his note at 9 days, $ ? . Apr. 7. Received Ray Russell's check on State Bank for % 250, to apply on account, Apr. 7. Deposited Quinn & Co.'s check, $ ? , and Ray Russell's check, | ? ; total, $ ? . Apr. 9. Paid Silas Smith $ 500 per check, to apply on account. Apr. 9. Received of Ulysses Upham his check on Park Bank for $ ? , in full of his note of Apr. 2. Apr. 10. Paid Victor Van Ness, per check, in full of my note, his favor, of Apr. 2, $ ? ► Apr. 10. Received Qui^& Co.'s check on Homeville Bank for $200, on account. Apr. 11. Paid Marion Mead $500 per check, to apply on account. Apr. 12. Sold Thomas Tyler, on account, 75 bus. snowflake potatoes, at ? ^ ; 30 bbls. Michigan apples, at $ ? ; total, $ ? . Apr. 13. Received from William Windom his new note at 12 days for $ 200 and his certified check on Park Bank for the balance of his note of Apr. 3. Apr. 13. Redeemed my note of Apr. 3, favor of Amos Arnold, for $500, due to-day, by issuing my new note at 6 days, his favor, for $350, and paying him per check for the balance, $ ? . Apr. 13. Sold Leonard Lyon, on account, 650 gal. N. O. molasses, at ? ^ . Apr. 14. Paid James Brown cash in full for services as clerk, $35. Apr. 14. Paid Knight & King in full of account per check, $ ? . Apr. 14. Received Quinn & Co.'s new note at 10 days for $100, and their certified check on Homeville Bank for $ ? , in full of their note of Apr. 4. Apr. 14. Redeemed my note of Apr. 5, favor of Knight & King, for $500, by issuing my new note at 12 days, their favor, for $250, and my check for $250. Apr. 14. Bought of Thomas Tyler 1500 bus. rye, at ? ^ ; gave him my note at 12 days, for $500, and my check for the balance. Apr. 14. Deposited in Homeville Bank, Ulysses Upham's check for $ ? ; Quinn & Co.'s check for $? ; William Windom's check f or $ ? ; Quinn & Co.'s check for $? ; total, $ ? . Inventory of Merchandise on Hand, April 14, 19 — ? bbls. A Sugar, 15250 lb. ? f ? " B " 6000 1b. 'if ? bus. No. 2 Wheat . ? f ? gal. N. 0. Molasses ' ? f ? bus. Early Rose Potatoes ? ^ ? " Snowflake " 'if ? bbls. Michigan Apples $ ? ? bus. Rye ? f 1| months' Rent $30 101 u Insurance V ? ? ? 9 45 65 62 V V FOURTH SET 131 Note Book, List i l^^^^l o > i^ <^ o> ^ !^ i^ ^^ ■^ O >5: ?^ B e.^ § =^ s % ^^ =t*^ n r 5^ r 1 o ? >r CD 1 . s O \ f^ ^. \ c> CD >-i O \ o <1 Ct> f^ ^ 1 •-b O >-* ^ '<^ P r» -^ C% Co 1 § 2. CD h- 1. CO " 1- 1 S* fe: ^"^ '^ tz^ >► ^ (U ?. ^ ^ ^ u >-t ?. P3 o CD. M rp CD eo •-1 ,1^ o 132 PHAGTIGE IK MODERN BOOKKEEPING Journal-Daybook Havi^ulllt, TJiai^cLmf, (Lpvlt 2, / y . €a^ z?&i ^aoJv Bacyfo 9 mk&at " wv^e^ ? S^k. €. ^tuciemt ^Maw-incf £vcL6-vl'itiy&Q. 9 fOyilx^kt V fCUcf ^u& tke^fL an' ae^ecH^rX ? TnoA^Uru iTlexU 'f ki/yyv // 9 c/tatkoyn cAcyit(yyi /' // // ? Mvti^ icyyul // // // ? ^'itao^ ^r/uCtk // // // ? S^kj^. SifteA, ? ? TAa-uq^&O' Ztjuko/^yv cfatd kOm. ^uqoAy 7 6-{>.U. d, 1760 16-. ? ^ ? fSaU Rt^£AAH>U^te^ R&^'cC kt^ nat& at 8 cLoa^i. uv ? Itlyo^&d. Ji/^koAn. ? ? ^otato-&Q. 2: — VUtav VcUTL cA&^ JScywc^kt a^ kCyrv ? Vi&tav VcMv cA&Q^ ^a.v-& kviru yrty '}^at& at S cLa.^f^ 9 BitU <^a/ifCL6-l& (av putt '^ajyyvemt 2 f f 76 ? €^'^e/n^& (^a^k // 76 ' ? ' I FOURTH SET Journal-Daybook, Continued 133 Ci/i'VLO-Q. Ct/bno-icL Clyyio^ CLvnatcL fOyiUjkt y^ fCincf S^otat o-&^ fSitt^ /^&(S^&vv-a6-t& (EcL^/v JSitto, f^&^&vv-a(^te 326 {>-{yU. ?nUk. £aiA^kt at kivv f ? /20 6.6-U. ?r(Uk. / / 'S^k&Ob 'yvot& at /O cLoAir^ f f'fi^ not& at / 6 cLoA^ to- Ifl-i^ 'yiot& at ^ dcvuQy to- ay^fiily' a^ a^Mx>iorLt 6 260 600 ^ 760 (yii^. Q!'yL(yw-ilaJc& /60 U-U. inUk. f ? ISau(fkt at kiyru ^atcL kvyyv TVli^ yiotey at / 2 cL^iio^ /3 ZO-yyv. lAhyncUyyyv' Q^ yv^w- 'yu>t& at /2 cLoA,^ fi-l^ 'yu>t& 0^1 CLfuv. 3 at fO cLoAio^ v&cL&&yyL&cL 200 38 260 600 60 238 60 134 PRACTICE IN MODERN BOOKKEEPING BILLS PAYABLE, Left-hand Page Bill No. AVhen Issued Maker or Drawee Payee Where Payable For What Given 1 2 3 4 5 6 19— Apr. n ii ii il ii 2 3 5 6 6 13 Th. E. Student a ii a li ii v. Van Ness Amos Arnold Knight & King Philip Pond A. Arnold A. Arnold Homeville Bank ii ii My Ofl&ce Homeville Bank a Mdse. On Account Full of Acct. Mdse. Old Note BILLS RECEIVABLE, Left-hand Page No. When Received Maker or Drawee Payee Where Payable For What Received 19 1 Apr. 2 U. Upham Th. E. Student His Office Mdse. 2 u 2 Z. Young (; (( a 3 11 3 W. Windom ii ii a 4 ii 4 Quinn & Co. a Their Office a 5 ii 4 Orrin Olson a His Office On Account 6 ii 5 L. Lyon a (( Full of Acct. MEMORANDA OF TRANSACTIONS, Continued Homeville, Monday, Apr. 16, 19 — . Sold James King 150 bus. E. R. potatoes, at ? ^ ; 125 bbls. Michigan apples, at $ ? ; total, $ ? ; received his note at 10 days for $ 350, and his check on Park Bank for the balance, $ ? . Apr. 16. Received Benoni Butler's check on State Bank for $ ? , in full payment of his note of the 7th inst. Apr. 17. Received Zadoc Young's check on Park Bank for ^ ? , in full payment of his note of Apr. 2. Apr. 17. Sold Henry Sabin 450 bus. No. 2 wheat, at ? ;* ; received in payment his check on Homeville Bank. Apr. 17. Received Leonard Lyon's check on Park Bank for $ ? , in full payment of his note of the 5th inst. Apr. 18. Redeemed my note of the 6th inst., favor of Amos Arnold, f or $ ? , by issu- ing a new note at 10 days for ^350, his favor, and my check for the balance, $ ? . Apr. 18. Sold Charles Chute 750 gal. N. O. molasses, at ? j* ; 5 bbls. A sugar, 1250 lb., at ? J? ; total, % ? ; received in payment his note at 12 days for 1 300, and his check on State Bank for the balance, % ? . Apr. 18. Deposited in Homeville Bank, checks, as follows : James King's, $ ? ; Benoni Butler's, % ? ; Zadoc Young's, $ ? ; Henry Sabin's, f ? ; Leonard Lyon's, $ ? ; Charles Chute's, $ ? ; total, $ ? . Apr. 18. Paid cash, $23.75, for sundry expenses. Apr. 19. Received Orrin Olson's check for $ ? , in full payment of his note of the 4th inst. FOURTH SET 135 Book BILLS PAYABLE Bight-hand Page Date Time to Run When Due Face When and How Redeemed Year J. F. M. A. M. J. J. A. S. o. N. D. Apr. 2 3 5 6 6 13 8ds. 10 " 9 " 15 " 12 " 6 " 19— 19— 19— 19— 19— 19— 10 13 14 21 18 19 112 500 500 120 500 350 50 19- Apr. Apr. Apr. 10 13 14 Paid Paid Paid BILLS RECEIVABLE, Bight-hand Page Date Time to Run When Due Face When and How Disposed Of Year J. F. M. A.!M. J. J. A. S. 0. N. D. 19 19- Apr. u li 2 2 3 4 4 5 8ds. 15 " 10 " 10 " 15 " 12 " 19— 19— 19— 19— 19— 19— 10 17 13 14 19 17 100 143 238 175 250 170 63 50 45 Apr. Apr. Apr. 9 13 14 Paid Paid Paid Apr. 19. Redeemed my note of the 13th inst. for $ 350, favor of Amos Arnold, per check on Homeville Bank, favor W. F. Phelps. (Note indorsed.) Apr. 20. Sold Henry Ivison 1000 gal. N". O. molasses, at ? ^ ; 10 bbls. A sugar, 2500 lb., at ? ^ ; total, $ ? ; received in payment his note at 30 days for f 600, and his check on Park Bank for the balance, % ? . Apr. 20. Sold David Evans 150 bbls. Michigan apples, at $ ? ; 175 bus. S. F. pota- toes, at ? ^ ; total, ^ ? ; received in payment his note at 30 days for ^ 200, and his certified check on Park Bank for the balance, $ ? . Apr. 21. Paid Philip Pond, per check on Homeville Bank, in full of my note of Apr. 6, $ ? . Apr. 21. Sold Benoni Butler 200 bus. S. F. potatoes, at ? ;? ; 1250 gal. N. O. molasses, at ? ;2^ ; total, $ ? ; received in payment his note at 15 days for % 250, and his certified check on State Bank for balance, $ ? . Apr. 21. Deposited in Homeville Bank, checks, as follows: Orrin Olson's, ^?; Henry Ivison's, ^ ? ; David Evans's, $ ? ; Benoni Butler's, % ? ; total, $ ? . Apr. 21. Paid, per check on Homeville Bank, $16.48, for sundry expenses. Apr. 23. Received Ray Russell's check on State Bank for % 500, on account. Apr. 24. Received Quinn & Co.'s check on Homeville Bank for $ 100, in full of their note of Apr. 14. Apr. 24. Sold William Windom 15 bbls. A sugar, 3750 lb., at ? ^ ; 12 bbls. B sugar, 3000 lb., at ? ^ ; total, $ ? ; received in payment his note at 10 days for $ 150, and his check on Park Bank for balance, $ ? . Apr. 26. Received William Windom's certified check on Park Bank for $ ? in pay- ment of his note of the 13th inst. 136 PRACTICE IN MODERN BOOKKEEPING Apr. 25. Sold Quinn & Co. 16 bbls. A sugar, 4000 lb., at ? ^ ; 12 bbls. B sugar, 3000 lb., at ? ^ ; total, $ ? ; received their note at 10 days for $275, and their check on Homeville Bank for the balance, $ ? . Apr. 26. Redeemed my note of Apr. 14, favor of Knight & King, for $ ? , jDer check on Homeville Bank, favor of D. L. Kiehle. (Note indorsed.) Apr. 26. Redeemed my note, favor of Thomas Tyler, dated Apr. 14, for $ 500 ; issued in payment a new note for $300, at 15 days, and a check for the balance, $ ? . Apr. 26. Deposited checks as follows, in Homeville Bank: Ray Russell's, $500; Quinn & Co.'s, $100; William Windom's, $ ? ; William Windom's, $200; Quinn & Co.'s, $ ? ; total, $ ? . Apr. 27. Sold John Adams 15 bbls. A sugar, 3750 lb., at ? ^ ; 2500 gal. N". O. molasses, at ? f ; total, $ ? ; received in payment his note at 30 days for $ 1000, and his certified check on Park Bank for the balance, $ ? . Apr. 27. Sold James K. Polk 50 bus. E. R. potatoes, at ? ^ ; 300 bus. S. F. potatoes, at ? ^ ; 750 bus. rye, at ? )* ; total, $ ? ; received in payment his note at 20 days for $ 300, and his certified check on State Bank for the balance, $ ? . Apr. 28. Paid, per check, $ 15.23 for sundry items of expense. Apr. 28. Sold Thomas Lowry 50 bbls. Michigan apples, at $ ? ; 750 bus. rye, at ? ^^ ; 2250 gal. N. O. molasses, at ?^ ; total, $ ? ; received his check on Homeville Bank for the amount. 1 Apr. 28. Deposited checks in Homeville Bank as follows : John Adams's, $ ? ; James K. Polk's, $ ? ; Thomas Lowry's, $ ? ; total, $ ? . Inventory of Property, Apr. 30, 19— 1 mo's Rent, prepaid 10 " Insurance, prepaid, @ $6.25 • 30 62 50 92 50 Th E. Student's Trial Balance, Apr. 14, ^g— . List I Face of Ledger Open Accounts P. Balances ? ? Th. E. Student 4017 76 ? ? Wheat 211 50 ? ? ? ? ? ? Expense Sugar Insurance 106 901 68 75 87 75 ? ? Molasses 4436 50 ? ? Potatoes 413 75 ? ? ? ? ? ? Apples Rye Cash 818 75 600 3025 ? ? ? ? Bills Payable Bills Receivable 920 95 1720 ? ? ? ? Personal Accounts Payable Personal Accounts Receivable 1582 68 6049 88 ? ? Homeville Bank Equilibrium 169589 30348 66 30348 66 11787164 11787 64 " M Note. — To save space the personal accounts are here combined under two heads, Personal Accounts Payable and Personal Accounts Receivable. FOURTH :SET 137 Th. E. Student's Trial Balance, April 30, 19—. List I Face of Ledger Open Accounts P. Balances 9 9 ? Th. E. Student Wheat 4161 13 14 50 9 ? Expense 100 46 'i ? Sugar 212 51 7 9 Insurance 65 62 V ? Molasses 697 50 ? V Potatoes 89 50 9 ? Apples 162 50 ? 9 Rye 60 9 ? Cash 6 50 9 ? Bills Payable 650 ? V Bills Receivable 3425 ? ? Personal Accounts Payable 6049 88 9 9 Personal Accounts Receivable 1082 68 ? ? Homeville Bank Equilibrium 7416 27 30775 66 30775 66 12096 53 12096 53 Gerieral Results, April I4, 19- Footing of Trial Balance List 1 2 3 4 5 6 $30348.66 $31777.75 $33206.91 $34636.00 Cash on Hand $36065.16 $37494.25 List 1 2 3 4 5 6 $30.25 $42.75 . $55.25 $67.75 Cash in Bank $80.25 $92.75 List 1 2 3 4 5 6 $1695.89 $1435.00 $1174.14 $913.25 Total Footing of Inventory $652.39 $391.50 List 1 2 3 4 5 6 $7701.25 $7982.12 ■ $8263.00 $8543.87 $ 8824.75 $9105.62 General Results, April SO, 19- Footing of Trial Balance List 1 $30775.66 2 $32037.03 3 4 $33298.51 $34559.88 5 $35821.36 6 $37082.73 List 1 $6.50 2 $19.00 Cash on Hand 3 4 $31.50 $44.00 5 $ 56.50 6 $69.00 List 1 $7416.27 2 $7530.39 Cash in Bank 3 4 $7644.57 $7758.69 5 $7872.87 6 $ 7986.99 138 PRACTICE IN MODERN BOOKKEEPING Fifth Set. — Dry Goods. Student Sole Proprietok The Object of this Set is to afford a general review of the work of the preceding sets, and to give additional practice in the entry of transactions involving promissory notes. The pupil will consider himself the proprietor of the business, will write all the correspondence, make out all the papers, and keep the books. Hereafter the bank account will be kept in the check book only (page 104), and funds in bank will be considered part of the cash on hand. Hence cash is credited, instead of the bank, when a check is issued; and no journal entry is made of a deposit. Characteristics. — Buying and selling dry goods for cash, on personal credit, and on promissory notes ; receiving and paying cash on personal account, and on notes ; meeting with a loss by fire, and closing the books with a decreased capital. Business Forms Used. — Bills of parcels, receipts, deposit tickets, checks, promissory notes, bank drafts, business st^ements, financial statements, and balance sheets. Books Used. — Journal-daybook, ledger, receipt book, check book, bank pass book, note book, bill book, cash book, stock record book, and trial balance book. Ledger Titles and Number of Lines Each will Require. — Th. E. Student, 11; Adam Brown, 8 ; Byron Cook, 7 ; C. C^ Dunn, 7 ; Cash, 20 ; Dennis Eagan, 6 ; Edward Forster, 6; Merchandise, 24; Store and Fixtures, I'O; Bills Payable, 23; George Hunter, 4; Irwin Janney, 7 ; Lord & Taylor, N.Y., 6 ; Charles Adams, Boston, 6 ; H. Smith & Co., N.Y., 4; Seth Tuttle,.N'.Y., 4; George Hunter, Chicago, 4; Otto Miller, Chicago, 4; James King & Co., N.Y., 6; Henry Irving, Chicago, 6; James Rich, Canton, 4; Murray James, 4; George Clark, 4 ; Harry Curtiss, 4 ; George Huhn, 4; David Ford, 4; Henry Jones, 4; Aaron Bull, 4; Myron Dale, 4; Simon Jewell, 4; Silas Smith, 4; Thomas Catlin, 4 ; Jonas Bell, 4 ; Samuel Ladd, 4 ; Bills Receivable, 21 ; Insurance, 7 ; Expense, 8 Paul Quinn, 4 ; Oscar Sawyer, 4 ; Neill Odium, 4 ; Lemuel Mott, 4 ; Mark Nichols, 7 Cash (2d), 22; King & Co., 6; Thomas Utley, 6; Merchandise (2d), 15; Premium, 8 Remittances, 12; Loss and Gain, 12; Balance, 18. DIRECTIONS FOR WORKING THE FIFTH SET 1. Complete all the work of each day before commencing the work of any succeeding day, as follows : (a) Make out bills of parcels, both incoming and outgoing. (&) Write in the receipt book receipts for money received, and on blanks for money paid, (c) Write in the check book all checks issued, and on blanks all checks received, (f?) Write in the note book all notes issued, and on blanks all notes received, (e) Record in the bill book all notes issued and received, and check in the bill book all notes redeemed and disposed of. (/) Prepare deposit tickets and make corresponding entry in the check book and bank pass book, {g) Write in the cash book the receipts and disbursements of money (including checks). (Ji) Enter in the stock record book each purchase and sale. 2. Record in the journal-daybook each day's business to the 14th day of the month and post to the ledger. 3. Take trial balance, and prepare inventory. 4. Close ledger in current form, make business and financial statements and balance sheet of the business for the two weeks. 5. Finish the month's business in the same order, but close the ledger in final form. FIFTH SET 139 Buying J Price Lists Articles Per 1 2 3 4 5 6 Amoskeag Prints yd. 6^ 6i^ 6i^ 6|^ 79 7\9 American " (( 6i^ 6|^ 7i^ 7i^ 7\9 7\9 Cotton Flannel - 10^ lOi^ lOi^ lOf^ 119 \\\9 Manchester Gingham (4 ^9 5|f 69 6\9 H9 6\9 ^Merrimac Prints (i ^9' 6|^ 79 1\9 7\9 7\9 Paper Cambric " hf oif ^9 h\9 Q9 Qi9 Scotch Gingham '' iDf 15^^ Vo\9 Vo\9 1Q9 16i^ Wamsutta Muslin " S9 8ii^ ^\9 m 99 H9 Washington Cambric " Hf 43^ 5<^ 5k 9 5\9 H9 York Denims " 12i^ 12|<* \?>9 m9 IH9 m9 Selling Price Lists Articles Per 1 2 3 4 5 6 Amoskeag Prints yd. 7^9 7\9 %9 ^\9 m 8f^ American " (( S9 ^\9 ^\9 ^\9 99 ^\9 Cotton Flannel u 129 V^\9 mf m9 139 \3\9 Manchester Gingham it 79 7\9 7\9 7\9 S9 ^\f Merrimac Prints ii S9 ^9 ^\9 ^\9 99 K9 Paper Cambric « 6\9 H9 79 7\9 7\9 7\9 Scotch Gingham (( \%f \^\9 \%\9 \^\9 \99 \9\9 Wamsutta Muslin a 9\9 n9 lOj* \^\9 y^\f lOf^ Washington Cambric a Q9 ^\9 ^\9 6\9 79 7\9 York Denims ii VS\9 \h\9 \69 16i^ \6\9 \6\9 MEMORANDA OF TRANSACTIONS Homeville, Tuesday, May 1, 19 — . Th. E. Student commenced business this day with the following resources and liabilities. Resources: cash in safe, $25; in Homeville Bank, $3975; (total, Cash Dr., $4000); store and fixtures, lot No. 47 Main St., with building, $7500; due me on account from Adam Brown, $275; Byron Cook, $315.90; C. C. Dunn, $460.18; Dennis Eagan, $287.50; total, $12,838.58. Liabilities: I owe on account, Edward Forster, $190.25; George Hunter, $217.50; Henry Irving, Chicago, $215.25; Irwin Janney, $270; total, $893; net capital, $? . May 1. Procured, per check, insurance of S. Morris, Agent, for one year; on build- ing and fixtures, $2500 at 1^%, $ ? ; on Mdse., $3000 at 2%, $ ? ; total, $ ? . (Cash Cr.) May 1. Bought of Lord & Taylor, New York, on my note at 10 days, 6275 yds. Amos- keag prints, at ? f. Note. — Notes in this set are drawn without grace unless otherwise specified. May 1. Bought of Charles Adams, Boston, on my note at 15 days, 5428 yds. York denims, at ? 9- May 1. Bought of H. Smith & Co., New York, on my note at 30 days, 15,225 yds. paper cambric, at ? ^ ; 10,250 yds. Washington cambric, at ? ^ ; total, $ ? . May 2. Sold Adam Brown, for cash, 175 yds. York denims, at ? 9. May 2.' Bought of Seth Tuttle, New York, on my note at 15 days, 1874 yds. Merrimac prints, at ? J* ; 600 yds. cotton flannel, at ? ^ ; total, $ ? . 140 PRACTICE IN MODERN BOOKKEEPING May 3. Sold Thomas Utley, on credit, 120 yds. ]Merrmiac prints, at?f; 150 yds. cotton flannel, at ? ^ ; total, % ? . May 4. Sold James Rich, Canton, 1246 yds. paper cambric, at ? f ; 330 yds. Amos- keag prints, at ? J^ ; total, % ? ; 'received his note at 10 days for the amount. May 4. Sold Murray James 750 yds. paper cambric, at ? f ; 394 yds. Amoskeag prints, at ? ^ ; 276 yds. York denims, at ? f ; total, $ ? ; ,received his note at 12 days for $50, and his check on State Bank for the balance, ^ ? . May 4. Paid cash for sundry items of expense, f 23.75. May 4. Bought of George Hunter, Chicago, 12,525 yds. Wamsutta muslin, at ? ^ ; gave in payment my note at one month for $ 500 ; certified check on Homeville Bank for the balance, % ? . . May 4. Sold Walter Ellis, for cash, 350 yds. Amoskeag prints, at ? ^ ; 276 yds. York denims, at ? ^ ; total, $ ? . May 5. Bought of Otto Miller, Chicago, 4375 yds. Amoskeag prints, at ? ^ ; 3950 yds. paper cambric, at?^; 2970 yds. York denims, atV^-; 2500 yds. Wamsutta muslin, at ? f ; 1875 yds. Scotch gingham, at ? /'; total, $ ? ; gave in payment my note at 16 days for $ 1000, and my certified check for the balance, ^ ? . May 5. Exchanged notes with Edward Forster for his accommodation, each drawn at 6 days from date for $500.y^ May 5. Sold Adam Brown 750 yds. paper cambric, at ? ^ ; received his check on Marine Bank for $ 30 ; balance on credit, f ? . May 5. Sold Paul Quinn, on credit, 478 yds. Wamsutta muslin, at?;*; 516 yds. paper cambric, at ? ^ ; total, $ ? . May 5. Deposited in Homeville Bank checks as follows : ^Murray James's, $ ? ; Adam Brown's, $ ? ; currency, .^50; total, $ ? . (Make entry in check book only.) May 7. Bought of James King & Co., X. Y., 3750 yds. Scotch gingham, at ? <* ; remitted my note at 8 days for ^ 250, and my certified check for the balance, ^ ? . May 7. Bought of Henry Irving, Chicago, 4250 yds. Manchester gingham, atVf; remitted in payment my note at 10 days for |150, and my check for the balance, $ ? . May 7. Bought of Irwin Janney 9875 yds. American prints, at ? ^ ; gave him my check for $350; balance on credit, $ ? . May 7. Sold George Clark 3250 yds. Amoskeag prints, at ? f ; 1490 yds. American prints, at ? ^ ; total, % ? ; received his note at 5 days for $ 150, and his check on Park Bank for the balance, $ ? . May 8. Sold Harry Curtiss 2427 yds. Wamsutta muslin, at ? ^ ; 1590 yds. York denims, at ? ,<* ; total, $ ? ; received his note at 6 days for $250, and his check on Home- ville Bank for the balance, $ ? . May 8. Sold James Bell, for cash, 540 yds. Scotch gingham, at ? ^. May 8. Received from Adam Brown, on account, $ 100, per check on Marine Bank. May 8. Sold C. C. Dunn 470 yds. Wamsutta muslin, at ? f ; 290 yds. Manchester gingham, at ? ^ ; 304 yds. paper cambric, at ? p ; total, $ ? ; received his check on State Bank for $50 ; balance on credit, $ ? . May 9. Sold Oscar Sawyer, on credit, 325 yds. Amoskeag prints, at ? ^ ; 460 yds. Washing-ton cambric, at ? ^ ; 490 yds. paper cambric, at ? ,<* ; 175 yds. American prints, at ? ^ ; 250 yds. York denims, at ? ^ ; 175 yds. Scotch gingham, at ? ^^^ ; total, $ ? . May 9. Sold Byron Cook 425 yds. Manchester gingham, at ? ^ ; 875 yds. Amoskeag prints, at? ^; total, $? ; received his check on Homeville Bank for $75; balance on credit, $ ? . May 9. Remitted to Lord & Taylor, N.Y., my new note at 12 days, dated May 11 ; for $175, and my certified check for the balance of my note of May 1, $ ? . (Debit Remittances account.) FIFTH SET 141 May 9. Deposited checks as follows : George Clark's, -$? ; Harry Curtisy's, ^ ? ; Adam BrowQ's, $100; C. C. Dunn's, $50; Byron Cook's, $75; currency, $100; total, $ V . May 10. Sold George Huhn 175 yds. Scotch gingham, at ?J^; 475 yds. American prints, at ? ^; 260 yds. York denims, at ? ^; 150 yds. Amoskeag prints, at V ^; 950 yds. paper cambric, at ? ^ ; 575 yds. Manchester gingham, at ? f ; 230 yds. Merrimac prints, at ? ^ ; total, $ ? ; received his note at 30 days for $200, and his check on State Bank for the balance, $ ? . May 10. Sold James King, for cash, 1250 yds. Manchester gingham, at ? ^. May 10. Sold David Ford 2560 yds. Wamsutta muslin, at ? <* ; 1509 yds. American [)rints, at ? ^ ; 350 yds. Scotch gingham, at ? ^; total, $ V ; received his note at 8 days for $225, and check on Homeville Bank for balance, $ ? . May 11. Edward Forster takes up and returns my note of the 5th inst., and I sur- render his of same date and amount, $ ? . May 11. Sold Xeill Odium, on credit, 675 ^'ds. Wamsutta muslin,, at ? ^ ; 276 yds. Scotch gingham, at ? ^; 398 yds. Amoskeag prints, at ? ^; 190 yds. York denims, at ? f. May 12. Received George Clark's new note at 10 days for $50, and his certified check on Park Bank for $100, in payment of his note of May 7 for $ ? . May 12. Sold Lemuel Mott, on credit, 350 yds. York denims, at ? J* ; 197 yds. paper cambric, at ? ^; 497 yds. Amoskeag prints, at? f; 375 yds. Scotch gingham, at ? ^; 560 yds. Wamsutta muslin, at ? ^; 290 yds. American i)rints, at ? f ; total, $ ? . May 12. Sold Mark Nichols 645 yds. Amoskeag prints, at ? ^ ; 490 yds. Wamsutta muslin, at V jz^ ; 245 yds. York denims, at ? ^ ; 270 yds. Scotch gingham, at ? ;* ; 378 yds. paper cambric, at ? ^ ; 225 yds. Merrimac prints, at ? ^ ; 160 yds. cotton flannel, at ? ^ ; total, $ ? ; received his check on Homeville Bank for $150; balance on credit, $ ? . May 12. Deposited George Huhn's check, $ ? ; D. Ford's check, $ ? ; George Clark's check, $100 ; Mark Nichols's check, $ 150; currency, $ 100 ; total, $ V . May 12. Received from Lord & Taylor, N.Y., my note of May 1. (Remittances Cr.) Inventory of Unsold Property, May 12, 19 — ? yds. Amoskeag Prints ? f ? ? " American " -if 9 ? " Cotton Flannel U ? ? " Manchester Gingham ■? 9' ? ? " Merrimac Prints -if ? ? " Paper Cambric If ? ? " Scotch Gingham ?^ 9 ? " Wamsutta Muslin If '} ? " Washington Cambric U 9 ? " York Denims If ? ? Store & Fixtures, present value 7750 Insurance, estimated value 93 50 ? MEMORANDA OF TRANSACTIONS, Continued Homeville, Monday, May 14, 19 — . Received from James Rich, Canton, exchange on Homeville, in full of his note of May 4, 19 — , f or $ ? . May 14. Received from Harry Curtiss his check on Homeville Bank in full payment of his note of May 8. May 14. Received from Thomas Utley $ 15 on account, per check on Park Hank. 142 PRACTICE IN MODERN BOOKKEEPING May 14. Paid % 16.14 in cash for sundry items of expense. May 14. Sold Aaron Bull 976 yds. American prints, at ? ^ ; 1000 yds. paper cambric, at ? ^ ; 1500 yds. Washington cambric, at ? f ; 487 yds. Wamsutta muslin, at ? ^ ; 396 yds. Manchester gingham, at ? ^ ; 189 yds. York denims, at ? ^ ; total, $ ? ; received his note at 30 days for $ 125 ; his note at 45 days for ^ 100, and his check on HomeviUe Bank for the balance, % ? . May 14. Deposited in Homeville Bank, draft and checks as follows : James Rich's, $ ? ; Harry Curtiss's, $ ? ; Thomas Utley's, $ ? ; Aaron Bull's, $ ? ; total, f ? . May 14. Purchased at Homeville Bank, per check, draft on N. Y. for % 250, at \ % premium, and remitted to James King & Co., N. Y., for my note of May 7 ; premium, k ? ; total, $ ? . (Remittances Dr.) May 15. Remitted to Seth Tuttle, N. Y., my new note at 30 days from May 17, for % 100, and my certified check for the balance of my note of May 2, $ ? . May 15. Bought of Homeville Bank, per check, draft on Boston for $ ? , at par, and remitted the same to Charles Adams, Boston, in payment of my note of May 1, his favor. May 15. Remitted to Henry Irving, Chicago, my new note at 30 days from May 17, for f 50, and exchange on Chicago for the balance of my note of May 7, $ ? , bought of Homeville Bank, per check, at,i% premium; premium, f ? ; total, f ? . May 16. Received $ 50 of-^lurray James, per check on State Bank, in full payment of his note of May 4. ^^ May 16. Drew out, per check, for personal use, $ 75. May 16. Sold Henry Jones, on his note at one month, 450 yds. Scotch gingham, at ? ^ ; 750 yds. Washington cambric, at ? ^ ; total, $ ? . May 16. Deposited in Homeville Bank, Murray James's check, $ ? . May 17. Sold Myron Dale 590 yds. paper cambric, at ? ^ ; 748 yds. Scotch gingham, at ? )^ ; total, % ? ; received in payment his note at 9 days for ^ 100, and his check oh State Bank for the balance, % ? . May 17. Deposited Myron Dale's check in Homeville Bank, $ ? . May 18. Received from James King & Co. my note of May 7, canceled (Remit- tances Cr.) . May 18. Sold Simon Jewell 590 yds. paper cambric, at ?^; 2560 yds. Wamsutta muslin, at ? ^ ; 1595 yds. American prints, at V ^ ; total, ^ ? . Received his note at one month for $ 250, and his certified check on Homeville Bank for the balance, $ ? . May 18. Received David Ford's new note for $ 100, at 10 days, and his certified check on Homeville Bank for ^ 125, in full payment of his note of May 10, for $ ? . May 18. Deposited Simon Jewell's check for ^ ? , and David Ford's check for $ ? , in Homeville Bank ; total, ^ ? . May 19. Received from Seth Tuttle, N. Y., my note of May 2, canceled. May 19. Sold Silas Smith 1250 yds. American prints, at ? j^^ ; 1500 yds. Washington cambric, at ? ^ ; total, % ? ; received his certified check on Park Bank for the amount. May 19. Received from Charles Adams, Boston, my note of May 1, canceled. May 19. Sold Thomas Catlin 1305 yds. paper cambric, atl f; 1218 yds. Washington cambric, at ? ^ ; total, .| ? ; received his note at 30 days for $ 125, and his check on Homeville Bank for the balance, $ ? . May 19. Received from Henry Irving, Chicago, my note of May 7, canceled. May 19. Deposited Silas Smith's check for f ? , and Thomas Catlin's check for $ ? , in Homeville Bank ; total, $ ? . May 21. Remitted to Otto Miller, Chicago, my note at 30 days from May 21 for $ 500, and Chicago exchange for the balance of my note of May 5, ^ ? , bought per check, at \ % premium ; premium, $ ? ; total, $ ? . May 21. Bought of Lord & Taylor, New York, 6247 yds. Amoskeag prints, at ?^; FIFTH SET . 143 4960 yds. York denims, d^tl f; totalj ^ ? ; remitted in payment my note at one month for $ 500 ; and exchange on Xew York bouglit at par, per check, for the balance, $ ? . May 21. Remitted to Lord & Taylor, N. Y., exchange on N. Y. for $ ? , bought, per check, at \ % premium, for my note of May 11, $ ? ; premium, $ ? ; total, $ ? . May 22. Sold Jonas Bell 71)8 yds. York denims, at ? j^ ; 985 yds. Washington cam- bric, at ? )z^ ; 1050 yds. Manchester gingham, at ? ^ ; 1275 yds. American prints, at ? ^ ; total, $ ? ; received his check on Homeville Bank for the amount of the bill. May 22. Paid cash for sundry items of expense, f 18.75. May 22. Received (ieorge Clark's check on Park Bank for his note of May 12, $ ? . May 22. Bought of Charles Adams, Boston, 2500 yds. Scotch gingham, at ? ^ ; 5250 yds. Manchester gingham, at ? ^ ; total, % ? ; remitted to him my note at 30 days for $ 400, and my certified check for the balance, % ? . May 22. Deposited Jonas Bell's check, $ ? , and George Clark's check, | ? ; total, $ ? . May 23. Received from Otto Miller, Chicago, my note of May 5. May 23. Sold King & Co. on account, 970 yds". Washington cambric, afi f ; 350 yds. Scotch gingham, at ? ^ ; total, $ ? . May 24. Sold Samuel Ladd 490 yds. Amoskeag prints, at ? J^ ; 3576 yds. paper cam- bric, at V J* ; 986 yds. Wamsutta muslin, at ? ^ ; total, $ ? ; received his check on Home- ville Bank in full payment. May 24. Sold King & Co., on credit, 1260 yds. York denims ; 750 yds. American prints. May 24. Deposited Samuel Ladd's check, f ? , in Homeville Bank. May 25. Received from Lord & Taylor, N. Y., my note of May 11. May 25. My store and my stock of goods were entirely destroyed by fire last night. Note. — This record should be made in the journal, if the books can be reached, otherwise a memorandum should be made for future reference. May 26. Received Myron Dale's check on State Bank, for note of May 17, $ ? . May 26. Deposited Myron Dale's check in Homeville Bank, f ? . May 26. Remitted to XL Smith & Co., N. Y., my certified check for my note of May 1. May 28. Drew out for personal use, per check, $ 100. May 28. Paid cash, ^ 35.40, for sundry items of expense. May 28. Received David Ford's check on Homeville Bank, for his note of May 18,$?. May 29. Paid Edward Forster, on account, per check, % 125. May 29. Received $ 175, per check on Park Bank, of Dennis Eagan, on account. Mav 29. Deposited David Ford's check, $ ? , and Dennis Eagan 's check, $ ? ; total, $ ? . May 31. Received from FL Smith & Co., N. Y., my note of May 1. May 31. The fire of May 24 having entirely consumed my store and Mdse. therein, the insurance company has settled the loss by paying cash for the amount of insur- ance on the building, $ ? , and for the value of the Mdse. at cost as shown by my books, as follows : ? yds. Amoskeag prints, at ? ^-; ? yds. American prints, at ? ^ ; ? yds. cotton flannel, at ? ^ ; ? yds. Manchester gingham, at ? ^ ; ? yds. Merrimac prints, at ? ^ ; ? yds. paper cambric, at ? ^ ; ? yds. Scotch gingham, at ? J^ ; ? yds. Wamsutta muslin, at ? j* ; ? yds. Washington cambric, at ? ^ ; ? yds. York denims, at ? ^ ; total, $ ? ; received the' company's check in full, for store, $ ? ; for Mdse., | ? ; total, $ ? . Note. — Having kept such a complete and correct record of my business as shown by my books of account, which have been taken from my safe, I am able to make a definite and reliable state- ment of the extent of my loss, enabling the insurance adjuster to settle with me on favorable terms,^ and without delay. Inventory of Property on Hand, May 31, 19— Lot No. 47 Main St., valued at . $3000 144 FEACTICE IN MODERN BOOKKEEPING Form of Trial Ledger Titles r May 5, 19— May 12, 10— 1 May 19, 19— Th E Student 893 323 315 460 4197 287 4751 7500 655 97 23 27 78 75 90 18 24 50 31 74 50 75 60 95 12838 581 893 323 411 544 5540 287 6189 7500 876 350 1530 97 23 27 78 168 173 243 248 75 28 89 28 50 41 50 74 50 75 60 95 08 11 28 24 12838 130 75 50 1861 190 3184 5034 217 911 650 215 150 58 25 12 31 50 88 25 ■ 75 193 336 494 4790 287 3604 7750 1260 1806 93 16 27 78 168 173 93 248 1 75 28 89 72 50 29 31 74 50 14 60 95 08 11 28 24 50 12766 1202 190 1391 4307 217 561 630 215 15 80 95 25 70 81 50 88 74 25 30 913 190 478 4459 217 270 215 25 25 28 „ 50 25 Cook, Byron Dunn C C Cash Eagan, Dennis Forster, Edward IVTerchandise Store & Fixtures Bills Payable Hunter, George . . . .\ . .Tannev Irwin .... ._^. Bills Receivable . . . i . Irviner. Henrv TTtlev Thomas Ouinn. Paul Sawyer, Oscar Odium, NeiU Nichols, Mark ....... Mott, Lemuel Preminm King & Co . Real Estate Bohn & Co Stevens, Henry Butler, H. C Burt & Phelps Store Fixtures Bovey & Co Lord, L. C Home M'f 'g Co Phelps, W.F Walker & Co Burt & Phelps GoodW^ill 19612 42 19612 42 25507 89 25507 89 • • 21499 88 21499 88 • • FIFTH AND SIXTH SETS* 145 Balance Book May ai, 19— June 9, 19— June 10, 19— June 2'S, 19— June 30, 19— 175 12766 80 3109 88 13784 99 3109 88 13784 99 10896 47 10896 47 193 75 358 75 358:75 358 75 358 75 330 28 461 28 461 28 461 28 461 28 494 Sd 634 89 634 89 634 89 11711 11 4140 30 8145 51 3734 75 9600 4256 50 6529 05 1647 78 9054 64 1835 28 287 50 175 112 50 505 505 205 125 190 25 65 25 305 72 30 5262 86 5763 59 5381 1864 7(1 7016 80 315a 45 6029 2253 55 6117 50 6531 80 7750 2500 3657 81 5707 81 500 7750 900 8065 25 1542 13 7317 13 1617 13 7357 38 217 50 305 217 50 305 217 50 305 217 50 305 217 50 561 561 88 485 561 88 1806 74 880 74 926 200 1001 451 550 450 6435 39 550 215 25 215 25 100 215 25 75 115 25 93 50 145 145 138 96 138 96 132 92 70 29 18 57 75 24 48 27 60 15 12 60 12 60 78 95 263 95 263 95 263 95 263 95 168 08 168 08 18 168 08 57 75 110 33 173 11 173 11 473 11 473 11 93 28 93 28 297 28 100 248 24 248 24 3 63 1 25 2 5 75 5 75 376 50 376 6000 50 175 376 6000 50 300 76 6000 247 50 300 6000 250 33134 12 J3134 12 . . . . . 260 117 . 235 250 53 . 75 • • 700 700 72 30 700 700 650 28704 82 28701 82 . . 247 230 125 * • 1 1475 460 197 28 2725 245 2725 32715 87 32715 87 . . . . • • • • • • • 143 98 143 1000 26364'9^ 26364 32404 35 32404 35 146 PRACTICE IN MODERN BOOKKEEPING List 1 May 12 $3679.28 « 31 17570.81 List 1 May 12 $25507.89 " 31 $33134.12 General Results, Fifth Set Cash on Hand 2 3 4 $3623.59 $3567.83 $3512.12 $7553.05 $7535.14 $7517.36 Footing of Trial Balance 2 3 4 $25822.71 $26137.26 $26452.05 $33553.34 $33972.15 $34391.32 Inventory of Mdse. on Hand, May 12, 19 — List 12 3 4 $3604.29 $3733.04 $3861.74 $3990.49 ^ Th. E.^^Student's Net Capital, May 31, 19 List 1 2 r^ 3 4 $10675.11 $10675.24 ^ $10675.08 $10675.18 $ 5 6 $3456.40 $3400.71 $7499.54 $7481.76 5 6 $26766.58 $27081.40 $34810.24 $35229.43 5 6 H119.20 $4247.94 5 6 10675.13 $10675.24 Sixth Set. — Furniture Business. Student Sole Proprietor Object of the Set. — The object of this sixth set is to teach the making- of drafts and acceptances, and the method of recording them in the various books. The transactions in this set are selected and arranged so as to present drafts and acceptances in almost every conceivable manner and condition. The pupil vrill in turn become drawer, drawee, payee, acceptor, and indorser. He will draw drafts, accept drafts, pay drafts, indorse drafts^ and collect when due. He will learn how to keep the record of their date and maturity in the bill book, and how to dispose of them when paid. The pupil will be the proprietor of the business, perform the transac- tions, and keep the books. Business Papers Used. — Bills of parcels, receipts, deposit tickets, checks, promissory notes, drafts, acceptances, statements, and balance sheets. Books Used. — Journal-daybook, ledger, receipt book, check book, notebook, draft book, bill book, cash book, bank pass book, and trial balance book. Ledger Titles and Number of Lines Each will require. — Th. E. Student, 9 ; Adam Brown, 7 ; Byron Cook, 7 ; C. C. Dunn, 6 ; Lemuel Mott, 4 ; Dennis Eagan, 7 ; Paul Quinn, 7 ; Oscar Sawyer, 9 ; Premium, 11 ; Cash, 24 ; Neill Odium, 6 ; Thomas Utley, 4 ; Bills Receivable, 14 ; King & Co., 7 ; Real Estate, 7 ; Mark Nichols, 6 ; Bills Payable, 17 ; Bovey & Co., 4 ; Edward Forster, 7 ; George Hunter, 6 ; Irwin Janney, 8 ; Henry Irving, 9 ; Insurance, 9 ; Bohn & Co., 7 ; Store Fixtures, 6 ; Henry Stevens, 6 ; H. C. Butler, 7 ; Burt & Phelps, 5; Expense, 10; Mdse., 29; Goodwill, 4; Mdse. (2d), 20; L. C. Lord, 7; W. F. Phelps, 6 ; Cash (2d), 26 ; Walker & Co., 6 ; Home Manufacturing Co., 6 ; Remit- tances, 10; Loss & Gain, 14; Balance, 14. SIXTH SET 147 DIRECTIONS FOR WORKING SIXTH SET 1. Complete all the work of each day before commencing the work of any succeed- ing day, as directed in the preceding set (p. 138). Deposit daily in Homeville Bank all cash (currency and checks) received. 2. Record in the journal-daybook each day's business, posting daily to the ledger, and taking a trial balance in the trial balance book weekly (June 9, 16, 23, and 30). 3. Write up the cash book daily, and close the cash book weekly. 4. Close the ledger, in current form, on the 16th of June, and make business and financial statements and balance sheet. 5. Close the ledger, in full form, at the end of the month, and make business and financial statements and balance sheet. Selling Price Lists Articles List 1 2 3 4 5 6 Chamber Sets, Black AValnut 110 110 25 110 50 110 75 111 111 25 4( Oak 125 125 30 125 60 125 90 126 20 126 50 (( Rosewood 175 175 55 176 10 176 65 177 20 177 75 Parlor Sets, Black Walnut 150 150 50 151 151 50 152 152 50 « Rosewood 225 225 70 226 40 227 10 227 80 228 50 «' Mahogany 250 250 75 251 50 252 25 253 253 75 Roll Top Desks, Black Walnut 75 75 15 75 30 75 45 75 60 75 75 (( Oak 90 90 25 90 50 90 75 91 91 25 Office Chairs, Black Walnut 7 50 7 55 7 60 7 65 7 70 7 75 a Oak 8 8 05 8 10 8 15 8 20 8 25 Center Tables, Black Walnut 35 35 15 35 30 35 45 35 60 35 75 « Rosewood 60 60 20 60 40 60 60 60 80 61 Writing Desks, (( 45 45 25 45 50 45 75 46 46 25 « Mahogany 55 55 20 55 40 55 60 55 80 56 Ex. Dining Tables, Black Walnut 35 35 15 35 30 35 45 35 60 35 75 « Oak 40 40 15 40 30 40 45 40 60 40 75 Dining Chairs, Black Walnut 4 4 05 4 10 4 15 4 20 • 4 25 (( Oak 5 5 05 5 10 5 15 5 20 5 25 Sideboards, u i^5 85 30 85 60 85 90 86 20 86 50 Bookcases, Black Walnut 95 95 25 96 50 95 75 96 96 25 MEMORANDA OF TRANSACTIONS Homeville, Friday, June 1, 19 — . Opened a new set of books with the following resources and liabilities. Resources : The following persons owe me on account : Adam Brown, % ? ; Byron Cook, f ? ; C. C. Dunn, ^ ? ; Dennis Eagan, $ V ; Paul Quinn, % ? ; Oscar Sawyer, $ ? ; Neill Odium, $ ? ; Lemuel Mott, $ ? ; Mark Nichols, $ ? ; Thomas Utley, $ ? ; King & Co., $ ? ; cash in safe and bank, $ ? ; notes receivable on hand, per bill book, $ ? ; real estate, lot No. 47 Main St., % ? ; total, $ ? . Liabilities as follows : I owe on account, Edward Forster, $ ? ; George Hunter, $ ? ; Henry Irving, ^ ? ; Irwin Janney, $ ? ; on outstanding notes, per bill book, | ? ; total, $ ? . June 1. Bought of H. C. Butler store and lot, Nos. 94 and 96 Center St., 50 ft. frontage and 120 ft. deep, for f 6000. Gave in jmyment my lot. No. 47 Main St., valued at $3000, and my certified check for the balance, $ ? . 148 PRACTICE IN MODERN BOOKKEEPING June 1. Bought of J. C. Hamilton his entire interest in the furniture business now carried on at 91 and 96 Center St., viz. : Furniture finished and in process of finishing, including lumber, paints, oils, hardware, and other material as per bill of sale, ^5000; store fixtures, including counters, shelving, desks, stoves and pipe, tools, and safe, as per bill of sale, §700. Gave in payment my three notes, all dated June 1, 19—, and bearing interest at Q% on and after July 1, 19 — . Xote No. 1 to run 1 year, for ^1000; Xo. 2 to run 2 years, for .^1600; and No. 3 to run 3 years, for 82500. June 2. Insured in the Safety Insurance Co. my building and contents as follows : $5000 on Mdse., finished and unfinished, and stock, at 2%, f ? ; ,*^3000 on building, at li%, $ ? ; paid premium per check, 8 ? , favor Gale & Rust. June 2. Sold Henry Stevens, on account, 1 B. W. (black walnut) chamber set, $ ? ; B. W. parlor set, f ? ; total, $ ? . June 2. Sold Burt & Phelps, on credit, 1 B. W. roll top desk, $ ? . June 2. Bought at Homeville Bank, per check, a draft on Chicago at \% premium, and remitted to George Hunter, Chicago, for my note of May 4 f or $ ? ; premium, $ ? ; check, I ? . (Remittances Dr.) June 4. Sold Paul Quinn, on credit, 1 B. W. parlor set and 1 B. W. center table, $ ? . June 4. Bought of Bohn ^ Co., on credit, an invoice of lumber, |175. June 4. Cash sales of ]V|dse. for the day amount to l| 44.35. June 5. Sold Adam BroWn, on credit, 1 oak chamber set, I ? ; 1 oak extension dining table, I ? ; total, f ? . June 5. Cash sales of Mdse. for the day amount to $ 97.40. June 6. Received from George Hunter, my note of May 4. (Remittances Cr.) June 6. Sold H. C. Butler, on credit, 1 rosewood chamber set, I ? ; 1 rosewood center table, | ? ; total, $ ? . June 6. Sold Byron Cook, on credit, 1 oak sideboard, $ ? ; 1 oak extension dining table, $ ? ; total, $ ? . June 6. Cash sales of Mdse. for the day amount to $52.90. June 7. Bought of Noyes Bros, paints and oils, as per invoice, $117.50; gave in payment my sight draft, their favor, on Henry Stevens, for the amount. June 7. Sold C. C. Dunn, on credit, 6 B. W. office chairs, at $ ? ; IB. W. bookcase, $ ? ; total, $ ? . June 7. Cash sales of Mdse. for the day, as per sales book, $46.50. June 8. Sold George Hunter, on credit, 1 mahogany parlor set, $ ? ; 1 mahogany writing desk, $ ? ; total, $ ? . June 8. Cash sales of Mdse. for the day, as per sales book, $04.25. June 9. Drew from bank, per check, $88.50, and paid workmen. June 9. Paid W. H. Curtiss salary for the week as salesman, $ 18, per order on Oscar Sawyer for goods from his store. June 9. Received from George Huhn his check on State Bank for his note, $ ? . June 9. Cash sales of Mdse. for the day, as per sales book, $69.30, June 11. Cash sales of Mdse. for the day, as per sales book, $36.20. June 11. Sold Alden Brown 1 B. W. parlor set, $ ? ; IB. W. extension dining table, $ ? ; 6 B. W. dining chairs, at $ ? ; total, $ ? ; received in payment his sight draft on Sanford Niles for the amount. (Debit Cash ; and deposit the draft in the bank.) June 11. Accepted Irwin Janney's draft at 5 days' sight in favor of H. M. Knox for $250. June 12. Accepted Edward Forster's draft at 10 days' sight, favor of H. M. Myers, for amount due him on account, $ ? . June 12. Sold Neill Odium, on credit, 1 R. W. (rosewood) parlor set, $ ? ; 1 R. W. writing desk, $ ? ; 6 oak dining chairs, at $ ? , $ ? ; total, $ ? . SIXTH SET . 149 June 12. Received Dennis Eagan's check on Park Bank in full of account, $ ? . June 12. Cash sales of Mdse. for the day, as per sales book, $04.50. June l:}. Drew at sight on Lemuel Mott, for amount due me, in favor of Ilomeville Bank, and deposited the same in bank to my credit, $ ? . June \''^. Sold Mark Nichols, on credit, 1 B. W. chamber set, .| ? ; 1 B. W. center table, I ? ; 1 B. W. Ex. dining table, $ ? ; 6 B. W. dining chairs, at $ ? , $ ? ; total, % ? . June 13. Drew on King & Co., on demand, favor of Homeville Bank, for ^300, and deposited the draft in bank to my credit. June 13. Bought of Home Manfg. Co., on credit, unfinished furniture, ^ 1475. June 13. Settled my account with Bohn & Co. by giving thera my draft at 10 days' date, their favor, on Henry Stevens, for balance of his account, $ ? , and check for the balance due Bohn & Co., $ ? ; total, | ? . June 13. Received from Aaron Bull his check on Homeville Bank in full payment of his note. No. 1, dated May 14, $ ? . June 13. Cash sales of Mdse. for the day, as per sales book, $58.75. June 14. Paid R. H. Leonard, drayman, for services rendered, per order on Oscar Sawyer, for goods from his store, $ 15.75. June 14. Drew at sight on H. C. Butler for amount due me on account, in favor of and to apply on account of Irving Janney, $ ? . June 14. Bought of Bovey & Co., on credit, invoice of lumber, $72.30. June 14. Drew at 10 days' sight on Burt & Phelps, my favor, for amount of their bill of June 2, and they return the draft accepted, $ ? . June 14. Cash sales of Mdse. for the day, as per sales book, $49.30. June 14. Bought, per check, Chicago exchange for $ 50, at \ % premium, and remit- ted to Henry Irving for my note of May 17; premium, ?}^; check, $? . June 14. Purchased, per check, at \ % premium, exchange on N. Y. for $ 100, and remitted to Seth Tuttle, N. Y., for my note of May 17 ; premium, ? ^; check, $ ? . June 15. Received Mark Nichols's sight draft on Henry Irving, my favor, for $100, and I have received credit for the same on the books of Henry Irving. June 15. Sold L. C. Lord, on credit, 1 oak chamber set, $ ? ; 1 oak roll top desk, $ ? ; 4 oak office chairs, at $ ? , $ ? ; total, $ V . June 15. Cash sales of Mdse. for the day, as per sales book, $51.25. June 16. Received Henry Jones's check on State Bank for $ ? , in payment of his note of May 16. June 16. Received from Henry Irving, Chicago, my note of May 17, $ ? . June 16. Paid W. H. Curtiss amount due him on salary to date, as salesman, per order on Oscar Sawyer for goods from his store, $ 24. June 16. Drew per check on Homeville Bank, for amount of workmen's wages for the week, and paid them in full, $ 88.50. June 16. Paid H. M. Knox, per check for my acceptance of June 11, $ ? . June 16. Cash sales of Mdse. for the day, as per sales book, $ 73.75. June 16. Received from Seth Tuttle, N. Y., my note of May 17, $ ? . Inventory of Property on Hand, June i6, ig— . Six List6 Store & Lot, 94 & 96 Center St. 6000 11^ months' Insurance 138 96 Store Fixtures, at cost 700 Merchandise (estimated value) 4145 50 10984 46 150 PRACTICE IN MODERN BOOKKEEPING Homeville, Monday, June 18, 19—. Sold Dennis Eagan, on credit, 1 R. W. chamber set, $?; 1 R. W. parlor set, $?; 1 R. W. center table, |?; 1 R. W. writing desk, $?. June 18. Bought of Bohn & Co., on credit, invoice of lumber, i^SOO. June 18. Bought of Home Manfg. Co., on credit, unfinished furniture, $1250. June 18. Sold Edward Forster, on credit, 1 mahogany parlor set, $ ? ; 1 mahogany writing desk, ^ ? ; total, f ? . June 18. Received Simon Jewell's certified check on Homeville Bank for |?, in full payment of his note due this day. June 18. Accepted Irwin Janney's draft at 5 days' sight for amount due him, favor of D. C. Bell, $?. June 18. Received certified check on Homeville Bank from Thomas Catlin, in full of his note of May 19, ^ ? . June 18. Bought, per check, at ^% premium, Chicago exchange for ^? , and remitted to Otto Miller, Chicago, for my note of May 21 ; premium, i^?; check, |?. June 18. Cash sales of Mdse. for the day, as per sales book, $47.80. June 19. Sold Burt & Phelps, on credit, 6 oak office chairs, at $?; 1 bookcase, $?. June 19. Bought, per check, at J% premium, N. Y. exchange for $?, and remitted to Lord & Taylor, N". Y., for h^y note of May 21 ; premium, $ ? ; check, $ ? . June 19. Bought, per chqck, at \ % premium, Boston exchange f or $ ? , and remitted to Charles Adams, Boston, for my note of May 22 ; premium, $ ? ; check, | ? . June 19. Cash sales of Mdse. for the day, as per sales book, $ 59.60. June 20. Drew at sight on L. C. Lord for amount due me on account, favor of Bohn & Co., to apply on their account, $ ? . June 20. Bought of Walker & Co., on credit, invoice of lumber, $ 245. June 20. Cash sales of Mdse. for the day, as per sales book, $ 74.20. June 21. Sold W. F. Phelps, on credit, 1 mahogany parlor set, $ ? ; 1 mahogany writing desk, $ ? ; 1 oak sideboard, $ ? ; 1 oak Ex. dining table, $ ? ; 6 oak dining chairs, at $ ? , $ ? ; total, $ ? . June 21. Cash sales of Mdse. for the day, as per sales book, $ 175.20. June 22. Received from Otto Miller, Chicago, my note of May 21, $ ? . June 22. Drew at sight on Edward Forster, favor of Bovey & Co., for amount due them on account, $ ? . June 22. Paid H. M. Myers, per check, for my acceptance, his favor, of the 12th inst., $ ? . June 22. Accepted Henry Irving's draft on me, favor of W. B. Hixson, at 3 days' sight, for $75. June 22. Cash sales of Mdse. for the day, as per sales book, $ 130. June 22. Sold L. C. Lord 1 B. W. chamber set, $ ? ; 1 B. W. roll top desk, $? ; 6 B. W. office chairs, at $ ? ; total, $ ? ; received his check on Homeville Bank for $ 125, balance on credit, $ ? . June 23. Received from Lord & Taylor, X. Y., my note of May 21, $ ? . June 23. Drew at sight on Mark Nichols for balance due me on account, in favor of Walker & Co., to apply on their account, $ ? . June 23. Paid D. C. Bell, per check, for my acceptance of June 18, $ ? . June 23. Paid W. H. Curtlss amount due him as salesman, $24, per my sight draft on Thomas Utley, for amount due me on account, $ ? , and my check for the balance, $ ? ; total, $ 24. "^ June 23. Drew per check from Homeville Bank, $ 88.50, and paid workmen for wages for the week, as per pay roll. June 23. Received from Burt & Phelps cash for their acceptance of June 14, $ ? . June 23. Received from Charles A^ams, Boston, my note of May 22, $ V . SIXTH SET 151 June 23. Cash sales of Mdse. for the day, as per sales book, ^123.75. June 25. Sold H. C. Butler, on credit, 1 bookcase, | ? ; (j oak dining chairs, at $ ? , ^ ? ; 1 oak sideboard, I ? ; 1 oak extension dining table, $ ? ; total, ^ ? . June 25. Drew on King & Co., at sight, for the balance due nie on account, and ■deposited the same to my credit in Homeville Bank, $ ? . June 25. Accepted Henry Irving's draft on me at 3 days' sight, for balance due him on account, in favor of William Walker, .$ ? . June 25. Drew at sight on H. C. Butler, favor of Bohn & Co., for amount due them on account, $ ? . June 25. Drew at sight on W. F. Phelps, favor of Walker & Co., for amount due them on account, «f ? . June 25. Paid per check for my acceptance of June 22, favor of W. B. Hixson, $ V . June 26. Received cash in full of account from Oscar Sawyer, $ ? . June 26. Drew at sight on L. C. Lord, for balance due me on account, and deposited the same to my credit in Homeville Bank, $ ? . * June 26. Received from Dennis Eagan his check on Park Bank for ^205, on account. June 26. Drew at 10 days' sight on W. F. Phelps, my favor, for amount due me on account, and he returns the draft accepted, $ ? . June 26. Cash sales of Mdse. for the day, as per sales book, $170. June 27. Drew at 10 days' sight on Neill Odium, my favor, for amount due me on account, and he returns the draft accepted, $ ? . June 27. Sold Edward Forster 1 B. AV. roll top desk, $ ? ; received his check on Homeville Bank covering balance of account and this bill, $ ? . June 28. Received from Aaron Bull exchange on Homeville Bank for f ? , in full payment of his note Xo. 2 of May 14, due this day. June 28. Received C. C. Dunn's certified check on Park Bank in full of account, $ ? . June 28. I have this day completed arrangements with Forster & Co. for the sale to them of my entire business, including Mdse., store fixtures, insurance, good will, etc., possession to be given July 2, 19 — . Received from them their note at 6 months, with interest at 0%, for the following considerations and amounts: furniture finished and in process of finishing, including lumber, paints, oils, hardware, and other materials as per inventory, $ 3600 ; store fixtures, including qounters, shelving, desks, stoves and pipe, tools, and safe, as per inventory, $650; good will for 5 years, per agreement, $1000; insurance, 11 months, unexpired policy of $5000 on stock at cost, $132.92; total $5382.92. June 28. Leased to Forster & Co. my store, Nos. 94 and 96 Center St., for a term of 5 years from July 2, 19 — , at an annual rental of $1000, payable quarterly in advance; received their check on Homeville Bank for quarter commencing July 2, $ ? . June 29. Cash sales of Mdse. for the day, as per sales book, $183.25. June 30. Paid W. H. Curtiss, per check, amount due hira as salesman, $24. June 30. Drew, per check, $88.50, and paid workmen for wages in full to date as per pay roll. General Results, Sixth Set Footing of Trial Balance 2 3 4 5 6 $32770.14 $32836.08 $32896.32 $32956.39 $33016.64 $32466.33 $32528.01 $32589.96 $32651.77 $32713.73 Th. E. Student's Net Capital 2 3 4 5 6 $10905.10 $10913.44 $10922.04 $10930.49 $10939.10 $12466.36 $12481.45 $12496.80 $12512.00 $12537.36 List 1 June 16 . . . $32715.87 " 30 . . . $32404.35 List 1 June 16 » . , . $10896.47 " 30 . . , . $12450.98 152 PRACTICE IN MODERN BOOKKEEPING Journal-Daybook, Sundry Entries l^f R&yyLitt&d to- ^&av^& fi^^vnte^v, o{ mouj ^, Uai^kt at % % 9 9 9 //7 /a ? ? 260 60 ? //7 /a ? 260 f ? 60 R&mJXiam^m^ o ^kl^cujO-, v&tiivn&d (^OAie^&t&d •7 / M'H'b Q^Ufkt dvajt aru kvyyv, j^aV-CyU ojj- cAo-^&Qy fSbOQ.. ^a.id W^. /if. &icvUq^ a^a,taA.j jv-v tk& ^v-e&k €wb o-vcL&'V cyyi ki/vn tav aaadoy, ^avov al^ I/O-, /if. &wvCU^ atcie/yi Buyuyyv // ^atd kl\yv / /S. W-. ^a^lav ^et ? / ft ^inlncf ^a(>t& ? 6 // &va.UQ. @ ? ? /ifloy Q.ixfkt d^ajt (yyv cfamjavd / / de^&^t&d kla^ dvcijt at 6 da,yQy' ^u^kt; vvu ^awyo aj- /f. m, /Oyioa. fS-- — ' S^atd tk&yrv Ln, jutt ^&v dva^-jt at /O dMA^o/ dat& cyyi /ifeA^vu ^t&u&n^y j^cyv {yata.n€^& oj^ (yiAAy % acfaindC kl^yv, ayyid ^k£Mk, j^v (M.la.ne& SIXTH SET \r>:\ Draft Book, List i ;> o hj H !-) > O ^ H O >- O ^ H U pL p ?2 P ^ ;^ -■ - ^ t^* p p- 05 rD ^ i ^ "" P- •-i ^ ?^ ^ CD fO CD CD 03 OT CO 02 cc ^- ^ ^ ^ ^.^- ^ ^ 1- > > B 1^ 5^ si > 1^ 1 1 > ^ <> §= ^ ? Co Co 1 0^ • ^Co ."^ !*■ ^ f ^ «« 1 i-1 f ^^^ o 1 "■" — ^ o o ^ p- ^ o ^ o g ^ r^ ^ P' :^ CD p ^ Si ^ CD O < S p ^ < o ^ ^MJ o »-i % >-»■ o^ O CD o p p. < 1 CD (.U w •-s P-> >i-» 4- Ki •t> w> \ •t> H'\ ? l< / 4< H< / •|< g? ^ hj -^ 5 ^ p ^ H f^ § ^ ^ o O v^ c+ N ^ § ^ ^ r% e ■^ ?5 4;^ k Or St ^ 1 ^ i %• s s r. J^ C5 S 2 S* ^ O ^ '^i^ ^ ^ o 5J[ C> CN- w 1^ ^ ;>- ^^ o f ^ ^ :i bh P ^ -J < CD > L rn^ ■D ^ 1" -3 "D 2 <" -D r n -i p. __ 154 PRACTICE IN MODERN BOOKKEEPING Seventh Set. — Partnership. Furniture Manufacturing This set represents a furniture manufacturing business conducted by a firm consisting of C. C. Curtiss and Th. E. Student. Th. E. Student is to have the general management of the business and to keep the books. The partners invest equally and share alike in losses and gains. The transactions are arranged for the purpose of reviewing all preced- ing work, and for additional practice in the journal-daybook. The cash journal will receive special attention. All cash transactions will be entered in the cash journal only, and posted to the ledger from it. The cash journal will be balanced weekly, as it would be daily in actual business. The bank account will be kept in the check book, and the funds in the bank will be considered as cash on hand, as in the sixth set. Ample material will be afforded for practice in recording transactions which involve interest aiid discount. Interest accrued on bills receivable and bills payable, and ajko discount on commercial paper not matured, are taken into consideration in showing the investments and also the con- dition of the business. Business Forms Used. — Invoices, receipts, deposit tickets, checks, notes, drafts, statements, and balance sheets. Books Used. — Journal-daybook, cash journal, ledger, note book, draft book, bill book, check book, bank pass book, trial balance book, time book, and pay roll. GENERAL INSTRUCTIONS FOR WORKING SEVENTH SET 1. Write all the commercial paper involved in the opening of the books. 2. Record the opening entries in the journal -daybook and cash journal. 3. Open the ledger, post and take a trial balance. 4. Make out all the business forms, record all transactions in the journal-daybook, or cash journal to July 7, inclusive, and balance the cash journal. 5. Post and take a trial balance. 6. Write up the business to July 14, inclusive, in the same manner. 7. Post and take a trial balance. 8. Write up the business to July 21, inclusive. 9. Post and take a trial balance. 10. Write up the fourth week's business, and take a trial balance. 11. Write up the business to Aug. 1, and take a trial balance. 12. Close up the books, make statements and balance sheet. Ledger Titles and Number of Lines each will Require. — C. C. Curtiss, 6; Th. E. Student, 6; Cash, 10; Van Dusen & Co., 4; Knute Larsen, 4; Michael Nelson, 4; Bills Receivable, 20; George Heath, 7; Edwin Fuller, 7; Interest, 18; Bills Payable, 10; Isaac Jacobs, 6; Materials, 13; Oscar Patton, 6; Quirk & Co., 6; Expense, 9; Mdse., 34; Tools & Instruments, 6; Good Will, 6 ; Van Wyck & Co., 7 ; Gideon Hooker, 7 ; Arthur Bond, 8; Mortgage Payable, 6; Charles Dean, 6; C. M. Loring, 6; Young & Zier, 6; Koon & King, 6; Newton Ogden, 4; Home Manufacturing Co., 7; Paul Redmond, 6; Rufus Sterling& €o., 4 ; Theodore Upham, 4 ; Hiram Kellogg, 4 ; Adam Davids, 4 ; S. A. Reed, 4 ; Mdse., 30 {2d) ; James Burchard, 4; James Gray, 4 ; Kinsley & Co., 4 ; Loss & Gain, 9 ; Balance, 24. SEVENTH SET 15.' Selling Price Lists Articles Sold List 1 2 3 4 5 6 Chamber Sets, Ash 45 45 50 46 46 50 47 47 50 u Black Walnut 60 60 50 61 61 50 62 62 50 (( Oak 75 75 75 76 50 77 25 78 78 75 (( Rosewood 100 101 102 103 104 105 Parlor Sets, Black Walnut 60 60 50 61 61 50 62 62 50 a Rosewood 100 101 102 103 104 105 u Mahogany 125 126 25 127 50 128 75 130 131 25 Roll Top Desks, Ash 50 50 50 51 51 50 52 52 50 a Black Walnut 75 75 75 76 50 77 25 78 78 75 ^i Oak 80 . 80 80 81 60 82 40 83 20 84 Office Chairs, Ash 2 50 2 55 2 60 2 65 2 70 2 75 a Black Walnut 4 50 4 55 4 60 4 65 4 70 4 75 n Oak 5 5 10 5 20 5 30 5 40 5 50 Center Tables, Black Walnut 50 50 50 51 51 50 52 52 50 (( Rosewood 50 50 50 51 51 50 52 52 50 (( Mahogany 65 65 50 66 66 50 67 67 50 Writing Desks, Black Walnut 25 25 25 25 50 25 75 26 26 25 a Rosewood 65 65 50 66 66 50 67 67 50 a Mahogany ■ 75 75 75 76 50 77 25 78 78 75 Dining Tables, Ash 25 25 25 25 50 25 75 26 26 25 (( Black Walnut 35 35 35 35 70 36 05 36 40 36 75 (( Oak 40 40 40 40 80 41 20 41 60 42 Dining Chairs, Ash 2 2 05 2 10 2 15 2 20 2 25 <( Black Walnut 3 3 05 3 10 3 15 3 20 3 25 (( Oak 4 4 05 4 10 4 15 4 20 4 25 Sideboards, Black Walnut 75 75 75 76 50 77 25 78 78 75 (( Oak 85 85 80 86 60 87 40 88 20 89 Bookcases, Black Walnut 55 55 50 56 56 50 57 57 50 (( Oak 70 70 75 71 50 72 25 73 73 75 Upholstered Easy Chairs 25 25 25 25 50 25 75 26 26 25 MEMORANDA OF TRANSACTIONS Home City, Monday, July 2, 19 — . C. C. Curtiss and Th. E. Student have this day formed a partnership, under the firm name of Curtiss & Co., for the purpose of con- ducting a furniture manufacturing business. The partners are to invest in equal amounts, and are to share equally in gains and losses. Th. E. Student is to have the general management of the business, as per articles of agreement, and to keep the books of the firm, and in consideration of such special service is to be paid by the firm a salary of •$125 per month. July 2. C. C. Curtiss invests as his share of the capital the following resources; cash, on deposit in Home City Bank, S 7758.45; Arthur Bond's note for $1500, favor of C. C. Curtiss, dated May 4, 19 — , at 60 days, with interest; Charles Dean's note, favor of C. C. Curtiss, dated June 5, 19 — , at 90 days, $ 450. The firm assumes for him the following liabilities: His note, favor of Edwin Fuller, dated May 10, 19 — , at 3 months, $250; amount due George Heath, on account, $325; amount due Isaac Jacobs, on account, $ 145. Total resources, $ ? ; total liabilities, $ ? ; net, $ V . 156 PRACTICE IN MODERN BOOKKEEPING Time Week Ending July 7, 19— Rate Names of Employees Hours 1 per Amt. 1 M. T. w. Th. F. S. Hour 1 Atkins, James 10 10 10 10 8 48 50 24 2 Boutelle, C. M. 10 10 10 7 2 39 40 15 60 3 Chapman, C. H. 10 10 >-J 7 10 10 47 36 16 92 4 Daniels, Horace 10 10 10 10 7 47 36 16 92 5 Everhard, John 10 10 o 7 10 10 47 30 14 10 6 Frink, Lucius 10 10 w 10 10 8 48 28 13 44 7 Gordon, J. L. 7 10 10 10 10 47 28 13 16 8 Husted, James B. 10 10 10 10 8 48 25 12 126 11 1 Atkins, James \ Week Ending July U, 1 ,_ 52 60 31 20 10 10 10 8 7 ^ i 2 Boutelle, CM. j^ Chapman, C. H. ^ 10 10 X 10 10 7 47 40 18 80 3 X 10 10 10 10 8 48 40 19 20 4 Daniels, Horace 10 10 10 X 8 t 45 40 18 5 Jiverhard, John 10 10 10 10 X 7 47 38 17 86 6 Frink, Lucius 10 X 10 10 10 n 47i 48 22 80 7 Gordon, J. L. 10 10 10 10 X 7 47 38 17 86 8 Husted, James B. 10 10 X 10 8 i 45 28 12 60 158 32 July 2. Th. E. Student invests as his share of the capital the following resources : cash, on deposit in Home City Bank, ^ 6805.08 ; Knute Larson's note, favor of Th. E. Student, dated May 14, 19 — , at 60 days, $ 1200, with interest ; Michael Nelson's note, favor of Th. E. Student, dated June 3, 19 — , at 3 months, $ 600 ; an account against Oscar Patton for $ 1500; an account against Quirk & Co., for ^450. The firm assumes for him the following liabilities : his note, favor of Richard Steele, dated Apr. 30, 19 — , at 90 days, ^T50, with interest; his acceptance at 90 days, favor of Taylor & Co., dated June 10, 19 — , ^300; his note, favor of Underwood & Co., dated May 12, 19 — , at 60 days, $ 500, with interest. Total resources, .$ ? ; liabilities, f ? . Note. — Interest in this set is computed at 6%, and days of grace are allowed unless otherwise specified. All interest computations in this set are made on the basis of 3(i0 days to the year, and the 6% method is used. Bank discount is understood where discount is mentioned. Instruction. — Bills Receivable account is Dr. for the face of Arthur Bond's note, and Interest account is Dr. for the interest accrued to July 2, it being an interest-bearing note. Bills Receiv- able account is Dr. for the /ace of Charles Dean's note, and Interest account is Cr. for the discount from July 2 to its maturity, because the note will not be worth its face value till it becomes due. Bills Payable account is Cr. for tlie/«ce of C. C. Curtiss's note, favor of Edwin Fuller, and Interest account is Dr. for the discount from July 2 to its maturity. Bills Receivable account is Dr. for the /ace value of Knute Larson's note, and Interest account is Dr. for the interest accrued to July 2. Bills Receivable account is Dr. for the/«ce of Michael Nelson's note, and Interest ac- count is Cr. for the discount from July 2 to its maturity. Bills Payable account is Cr. for the face of Th. E. Student's note, favor of Richard Steele, and Interest account is Cr. for the interest accrued from its date to July 2. Bills Payable account is Cr. for the /ace of Th. E. Student's acceptance, favor of Taylor & Co., and Interest account is Dr. for the discount from July '_' SEVENTH SET Book 157 Currency Wanted Denoni nations Wanted No. Kind Aujt. $10 $5 $2 'fl 50^ 25^ 10^ 7)0 If 9 3 10 5 90 15 20 4 10 5 50 10 7 2 14 10 5 1 50 25 10 05 02 4 1 4 10 5 1 50 25 10 05 02 3 50 1 50 10 4 10 3 25 75 10 2 1 25 10 05 04 6 10 60 10 2 1 10 05 01 4 05 20 10 2 9 01 09 90 15 00 14 00 4 00 1 50 75 — Of) 20 09 12(3 14 No. Kind Arat. 11 10 110 30 1 20 5 5 25 10 5 2 1 50 25 05 8 2 16 10 5 4 20 3 1 3 10 5 2 1 5 50 50 10 5 2 50 25 10 01 4 25 1 20 2 50 25 05 7 10 70 10 5 2 " 50 25 10 01 2 05 10 10 2 50 10 2 01 02 110 = 25 00 16 00 3 00 2 50 1 00 = 70 = 10 0^ I] = 158 32 to its maturity. Bills Payable account is Cr. for the /ace of Th. E. Student's note, favor of Underwood & Co., and Interest account is Cr. for the interest accrued from its date to July 2. July 2. Opened an account with Home City 'Bank and deposited our individual checks received as cash investments, to the credit of Curtiss & Co., $ 14,563.53. July 2. Bought of Van Dusen & Co. their entire interest in the furniture business now carried on at Home City, including the following items, as per bill of sale : JNIdse., finished work, per invoice, $ 10,000 ; materials and unfinished work, per invoice, $ 5000 ; tools, implements, and machinery, per invoice, $ 2500 ; good will valued at $ 2000 ; one month's rent of store and factory, prepaid, $150; total, $19,650; gave in payment our 4 notes with interest at 6 %, secured by mortgage on the property, as follows : note No. 1, at 15 days, $650; note Xo. 2, at 30 days, $1000; note Xo. 3, at 3 months, $2000; note No. 4, at 2 years, $ 10,000 ; our certified check on Home City Bank for the balance, $ 6000. Instruction. — A mortgage is a conveyance of property, upon condition, as security for the pay- ment of a debt or the performance of a duty, and to become void upon payment or performance. Good will is the custom of any trade or business; the tendency or inclinations of persons, old customers and others, to resort to an established place of business; the advantages accruing from such tendency or inclination. It consists " in the probability that the old customers will resort to the old place." It is considered as a kind of personal property which may be bought or sold. July 2. Insured our property in the Home Insurance Co., Kinsley & Co. agents, as follows: $9000 on Mdse. finished and unfinished; $1000 on tools, implements, and machinery; total, $10,000, at 2|% premium, $?; paid them, per check, for one half of premium, $ ? ; balance, our note at 10 days, with interest, $ ? . 158 PRACTICE IN MODERN BOOKKEEPING W-&&^ (otidCnc^ j^ut-Y 7 , /^ Weekly Names Employment Time / (XtAvyiQy, ^a-'yyv&a^ CLoyiiAZant S'ave/Yybo/yv ¥8 kauvQ. 2 BautM&, ^. m. €cL6-ln^&t TnakeA. 3^/ /' S ^ka/^'nvayyi, €. /if. (^\.v-e.v ifY „ ¥ ^a^nie'Uy, /'fa\xi(t& i^iviel TVlakeA. ¥■7 '' 6 €v-&vkaA,cL, ^akn // // ¥-7 " 6 S^vlmJo, LiAA^iii^ €7iaiAV&&\, ¥8 // 7 '^avcLan^, f. L. ^a6^ln.&t Tyiak&v ¥■7 - 8 /ifuoZed, fdTTL&Q. IS. <%v&yKci'yi ¥8 ./ liy&&^€nc{A/yi(f f'U.tlf /¥- / CUJcinQy, ^a/yyu&O' (Zo^ioZa/ytt S^cyieAyvcLn ^2 /uyKAyQ^ 2 Bcmtdu, ^, m. (^u^^-V'yiet Tfla/c&h if7 ., 3 ^ka/^ynxxm., ^. /if. (^avv-&v ¥8 // ^ ^a^i&toy, /lfauis^& ^{f'V'yiet Tfla/oev ¥6 // 6 €v-eA^kaAucL, ^okru // // if7 n 6 S^vim/o, £a4^\yw^ Snc^vn&eAy ¥7'l, - 7 ^cyidxyyu, f. L. (^a6X/n&t ??Icl/c£A. ¥-7 - 8 /fu^oZe^cL, ^OATV&O' B. of'iAy£/yK-am' ^6' ./ July 2. Cash sales of Mdse. for the day, per tickets, $36.20. Instruction, — If no sales book is kept, the cash sales are entered on sales tickets by the sales- men. These sales tickets are then put on spindles and kept until the close of business each day, when they are added, and the gross amount entered in the journal or the cash book. A cash register is now quite extensively used in the place of tickets. July 3. Sold Arthur Bond, on credit, 1 B. W. bookcase, $ ? ; 1 B. W. center table, $ ? ; 4 B. W. office chairs, at $ ? ; 1 upholstered easy chair, % ? ; total, $ ? . July 3. Sold Charles Dean, on credit, 1 B. W. chamber set, $ ? ; 1 B. W. dining table, $ ? ; 6 B. W. dining chairs, at $ ? ; IB. AV. sideboard, % ? ; total, % ? . July 3. Sold Edwin Fuller, on credit, 1 R. W. parlor set, $ ? ; 1 R. W. writing desk, $ ? ; 1 oak bookcase, 8 ? ; 2 upholstered easy chairs, at 8 ? ; total, % ? . July 3. Cash sales of Mdse. for the day, per tickets, % 42.60. July 5. Sold George Heath, on his note at 10 days, with interest at 6 %, 1 oak cham- ber set, ^ ? ; 1 oak dining table, $ ? ; 8 oak dining chairs, at $ ? ; 1 oak sideboard, % ? ; total, % ? . July 5. Bought of Isaac Jacobs, on credit, 2^ tons coal, at % 6.50, for factory use. July 5. Sold Knute Larson, on note at 30 days, 1 ash chamber set, % ? . SEVENTH SET 159 Pay Roll 1i}^&&h ^ytcllyi^ jluty- /, /^- Rate Amount Signatures Remarks ■50 2^ jIamv&Qy dXAino^ ^0 /6 60 €. in. JSvwyv 36 /6 ^2 /ifava^^ ^a-ni&U' 30 /¥■ JO folvyi (oi^&vkau:l 28 /3 If//. JLw&iyuv S^vVYiJo 28 /3 f6 f. jC. ^(yvcLavb 26 /2 ^OAyvtQy B. /ifiioZ&cC /26 f^ 60 3/ 20 fa.^^&a^ CCUovyiQ, ^0 /8 80 e. 791 BcyiilMe. ^0 /9 20 (P. ff. (Pkajcynxiyyv ^0 /8 fi'(yiAX^& ha.ni&U/ 38 // 86 ^akn Sv'&vka'ui ^8 22 80 JLu^AAi^ <3^vtm,k/ 38 // 86 f. £. ^a'CtUru 28 /2 60 fa.nv&Q. £. /'ftvote^d /68 32 July 5. Cash sales of Mdse. for the day, per tickets, $27.90. July 6. Sold Michael Nelson 1 ash chamber set, $ ? ; 1 ash dining table, $ ? ; 6 ash dining chairs, at $ ? ; 1 oak sideboard, % ? ; total, % ? ; received in payment Oscar Patton's acceptance, favor of Michael Nelson, dated July 6, 19 — , at 11 days. July 6. Received Arthur Bond's check, in full of his note, favor of C. C. Curtiss, due this date ; face of note, % ? ; interest, 63 days at 6 %, % ? ; total, $ ? . July 6. Received Michael Nelson's check for % 593.80 in payment of his note, favor Th. E. Student, less discount to maturity ; face of note, $ ? ; discount, 62 days, $ ? . July 6. Cash sales of Mdse. for the day, per tickets, % 54.25. July 7. Bought of Rufus Sterling & Co., on our note at 60 days, payable at our office, lumber, per invoice, $1250. (Charge to Materials account.) July 7. Received finished work from the factory, per foreman's statement, and charged the same to Mdse. account, % 750. Instruction. — Goods in the factory or shop which are not in a finished condition are here con- sidered as materials, and when finished are transferred to the store or salesroom, are charged to Mdse. account and credited to Materials account. The amount given represents the factory price or cost of manufacturing the goods transferred. 160 PRACTICE IN MODERN BOOKKEEPING July 7. Deposited in Home City Bank Arthur Bond's check, | ? ; Michael Nelson's check, % ? ; currency, ^ ? ; total, % 2200. July 7. Drew ^ 12().14 from Home City Bank, per check, and paid workmen's wages for the week, as per time book and pay roll. See pages 150-1.59. (Materials, Dr.) Instruction. — Workmen in factories usually receive their wages weekly. The foreman of the factory makes out the pay roll of the workmen for the week and sends it to the office. The manager draws a cheek for the entire amount of the pay roll, and ohtahis from the bank currency in denominations convenient for paying the woj'kmen individually. He then places each work- man's wages in a separate envelope and delivers it to the workman, receiving in return his receipt, which is usually his signature on the pay roll opposite his name and amount. Some managers draw a check for each individual workman, and thereby obtain each workman's signature indorsed on the check, which serves as a receipt for his wages. * July 9. Sold Van Wyck & Co. 4 B. W. chamber sets, at .*$ ? ; 6 oak chamber sets, at $ ? ; 6 oak dining tables, at $ ? ; 48 oak dining- chairs, at ^ ? ; total, ^ ? ; received their check, dated July 11, for $750; balance on account, % ? . July 9. Cash sales of Mdse. for the day, as per tickets, .$42.75. July 9. Sold Theodore Upiiam 10 ash chamber sets, at f ? ; 6 ash dining tables, at $ ? ; 48 ash dining chairs, at ^f^? ; 2 oak sideboards, at $ ? ; total, ^ ? ; received in pay- ment, his note at 15 days wiih interest, $600; his sight draft on Frederick Curtiss for the balance, $ ? . July 9. Deposited in Home City Bank, $ 350. July 10. Accepted George Heath's draft, at 60 days' sight, favor of William H. Walker, for $ 125, payable at our office. July 10. Drew, at 10 days' sight, our favor, on Arthur Bond for $ 100; draft returned duly accepted. July 10. Bought of Home Manufacturing Co. unfinished furniture, per invoice, $ 1500; gave them in payment our certified check for one half of the bill, $ ? ; balance on account, $ ? . July 10. Sold Young and Zier 1 oak roll top desk, $ ? ; 4 oak office chairs, at $ ? ; 2 up. easy chairs, at $ ? ; 1 oak bookcase, $ ? ; total, $ ? ; received their note, at 10 days with interest, for $150 ; balance on account, $? . July 10. Cash sales of Mdse. for the day, as per tickets, $ 54.50. July 11. Sold Charles Dean 1 R. W. chamber set, $ ? ; 1 R. W. parlor set, $ ? ; total, $ ? ; received his note at 60 days, $ 100 ; balance on account, $ ? . July 11. Cash sales of Mdse. for the day, as per tickets, $39.25. July 11. Deposited $ 8.50 in Home City Bank. July 12. Sold Edwin Fuller 1 mahogany parlor set, $ ? ; received his note at 10 days, with interest, for $ 75, to apply on bill ; balance on account, $ V . July 12. Cash sales of Mdse. for the day, as per tickets, $ 37.45. ^ July 13. Cash sales of Mdse. for the day, as per tickets, $ 53.75. July 14. Redeemed, per check, Th. E. Student's note of May 12, favor of Under- wood & Co. ; face of note, $ ? ; interest ? days, at 6 %„ $ ? ; total, $ ? . July 14. Prepaid, per check, C. C. Curtiss's note of May 10, favor of Edwin Fuller; face of note, $ ? ; discount off, ? days at 6 %, $ ? ; amount paid, $ ? . July 14. Received finished work from the factory during the week, per statement of the foreman, $ 1025. July 14. Cash sales of Mdse. for the day, as per tickets, $45.30. July 14. Deposited cash in Home City Bank, $ 100. July 14. Drew $158.32 from Home City Bank, per check, and paid the workmen their wages for the week, as per time book and pay roll. SEVENTH SET . 161 July 16. Received Knute Larson's check, in full of his note of May 14, 19 — ; face of note, $ ? ; interest, ? days to date at 6 %, % ? ; total, $ ? . July 16. Received Knute Larson's check, in full of his note of July 5, 19 — ; face of note, ^ ? ; discount off, ? days at 6 %, ? f ; face of check, $ ? . July 16. Sold Gideon Hooker, on credit, 1 R. W. chamber set, $ ? ; 1 R. W. center table, $ ? ; 1 oak bookcase, $ ? ; total, % ? . July 16. Cash sales of Mdse. for the day, as per tickets, % 27.75. July 16. Deposited in Home City Bank, ^ 1275. July 17. Sold Arthur Bond, on credit, 1 oak roll top desk, ^ ? ; 6 oak office chairs, at $ ? ; 1 upholstered easy chair, Z ? ; total, $ ? . July 17. Sold Gideon Hooker, on credit, 1 B. W. roll top desk, $ ? ; 6 B. W. office chairs, at $ ? ; IB. W. bookcase, $ ? ; total, % ? . July 17. Cash sales of Mdse. for the day, as per tickets, $65.50. July 17. Deposited cash in Home City Bank, % 75. July 18. Received George Heath's check, in ^uU of his note, dated July 5, 19 — ; face of note, $ ? ; interest accrued, ? days, ? f ; total, % ? . July 18. Prepaid, per check, our acceptance, favor of William H. Walker, of July 10, 19 — ; face of acceptance, $ ? ; discount, V days, ^ ? ; face of check, % ? . July 18. Sold Koon & King, on credit, 1 oak roll top desk, $ ? ; 1 oak bookcase, $ ? ; 4 oak office chairs, at $ ? ; total, $ ? . July 18. Cash sales of Mdse. for the day, as per tickets, $ 107.50. July 18. Deposited in Home City Bank, % 325. July 19. Bought of Home Manufacturing Co. unfinished furniture, % 750 ; gave in payment our sight draft on Van Wyck & Co. for $ 350 ; our check for the balance, % ? . July 19. Sold George Heath, on credit, 1 R. W. chamber set, $ ? ; 1 R. W. writing desk, $ ? ; total, $ ? . July 19. Sold C. M. Loring, on credit, 1 mahogany parlor set, $?; 1 mahogany writing desk, $ ? ; 1 upholstered easy chair, | ? ; total, $ ? . July 19. Sold Van Wyck & Co. on credit 1 oak chamber set, $ ? ; 1 oak dining table, $ ? ; 8 oak dining chairs, at | ? ; 4 oak sideboard, $ ? ; total, $ ? . July 19. Cash sales of Mdse. for the day, as per tickets, % 79.60. July 19. Received Theodore Upham's check for $250, to apply on his note of July 9, 19 — ; face of note, $ ? ; interest on principal, ? days to date, % ? ; ajjplied on principal, $ ? . July 19. Deposited $ 300 in Home City Bank. July 19. Paid our note No. 1, favor of Van Dusen & Co., of July 2, 19 — ; face of note, $ ? ; interest accrued to date, ? days at 6 %, $ ? ; total, % ? ; gave in payment our draft on Edwin Fuller, payable on demand, $ 200 ; our check for the balance, $ ? . July 20. Received Arthur Bond's check for % 40, to apply on account. July 20. Received Oscar Patton's check f or $ ? , in full payment of his acceptance, favor of Michael Nelson, dated July 6, 19 — . July 20. Cash sales of Mdse. for the day, as per tickets, $ 62.40. July 21. Sold Paul Redmond, on credit, 1 B. W. dining table, $ ? ; 8 B. W. dining chairs, at .| ? ; IB. W. sideboard, $ ? ; total, $ ? . July 21. Received finished furniture from factory, per statement, $ 950. July 21. Cash sales of Mdse. for the day, as per tickets, $ 84.75. July 21. Drew from Home City Bank, per check, $146.75, and paid the workmen's wages for the week, as per time book and pay roll. July 21. Deposited 1 325 in Home City Bank. July 21. Sold C. M. Loring, on credit, 1 ash chamber set, $ ? ; 1 ash dining table, $ ? ; 6 ash dining chairs, at $ ? ; total, $ ? . 162 PRACTICE IN MODERN BOOKKEEPING July 23. Received Arthur Bond's check for i| ? , in full payment of his acceptance dated July 10, 19—. July 23. Received Young & Zier's check for $ ? , in full payment of their note of July 10, 19— ; face of note, % ? ; interest, ? days at 6 %, ? f . July 23. Received Charles Dean's check for .f ? , in full payment of his note of July 11, 19 — ; face of note, | ? ; discount, ? days at 6 %, ? f> . July 23. Cash sales of Mdse. for the day, as per tickets, ^ 94.30. July 23. Deposited -$ 450 in Home City Bank. July 23. Sold Koon & King 1 ash roll top desk, $ ? ; 4 ash office chairs, at $ ? ; totals $ ? ; received their check, % 40, to apply on bill. July 24. Sold Paul Redmond, on credit, 1 B. W. parlor set, ^ V ; 1 ash dining table^ .f ? ; IB. W. bookcase, $ ? ; 1 B. W. writing desk, ^ ? ; total, $ ? . July 24. Sold Hiram Kellogg 1 B. W. parlor set, % ? ; 1 B. W. dining table, $ ? ; 6 B. W. dining chairs, at $ ? ; 1 B. W. sideboard, f ? ; total, ^ ? ; received his note at 2 months for the amount. July 24. Sold Gideon Hooker, on credit, 1 mahogany parlor set, $ ? ; 1 mahogany writing desk, % ? ; total, ^ ? . July 24. Sold Xewton O^en, on credit, 1 ash roll top desk, ^ ? ; 4 ash office chairs, at I ? ; total, $ ? . ^ July 24. Cash sales of M % $ 750 His acc'p., favor of Taylor & Co., at 90 days, from June 10, 19— $ 300 His note, favor of Underwood & Co., at60days,withinterestatG% $500 ? Interest Accrued to date on note, favor of Richard Steele, ? days at 6% $ ? Accrued on note, favor of Under- wood & Co., ? days at 6% S ? Discount on Michael Nelson's note 9 O to maturity, ? days at 6% $ ? Finished Furniture 10000 Mdse. Materials Unfinished " 5000 Tools & Implements Per Inventory 2500 Good AVill Per agreement 2000 Expense Rent, 1 month prepaid 150 Van Diisen & Co. Bought of them their entire busi- ness, as per bill of sale 9 Van Diisen & Co. Our 4 notes, with interest, secured 9 Mort. Payable by mortgage Note No. 1 at 15 days S 650 " 2 " 30 " ' 1000 " 3 " 3mos. 2000 ? o " 4 " 2 years 10000 Policy of insurance in the Home ? Expense Kinsley & Co. Ins. Co. for $ 10000, @ 2%% ? Kinsley & Co. Our note at 10 days, with interest 9 Bills Payable at % 1 B. W. Bookcase $ ? ? 9 Arthur Bond Mdse. 1 '• Center Table $ ? 4 " Office Chairs, @ $ ? $ ? 1 Uph. Easy Chair $! ? ? ? 9 166 PRACTICE IN MODERN BOOKKEEPING Journal-Daybook, Continued Home City, Tuesday, July S, 19- Charles Dean 1 B. W. Chamber Set $ ? 7 Mdse. 1 " Dining Table $ ? 6 " " Chairs @ $ ? $ ? ? Q 1 " Sideboard $ ? 1 R. W. Parlor Set $ ? ? Edwin Fuller Mdse. 1 " Writing Desk $ ? 1 Oak Bookcase $ ? ? K 2 Uph. Easy Chairs @ ^ ? $ ? 1 Oak Chamber Set $ ? r) George Heath Mdse. J: 1 " Dining Table $ ? ? 8 " " Chairs @ $ ? S ? 1 •' Sideboard $ ? Bills Receivable His note at 10 days, with interest ? George Heath at 6% 2V2 tons coal for factory at $6.50 Sold him ? ? ? ? Expense Isaac Jacobs Knute Larson Mdse. 1 Ash Chamber Set ? Bills Receivable His note at 30 days for bill ? Knute Larson 1 Ash Chamber Set $ ? ? ? Michael Nelson Mdse. 1 " Dining Table $ ? 6 " " Chairs @ $ ? 8 ? 1 Oak Sideboard $ ? ? Bills Receivable Oscar Patton's Accp., his favor ? Michael Nelson 7 at 11 days from July 6 Lumber per invoice ? ? Materials R. Sterling & Co. ? R. Sterling & Co. Our note at 60 days, payable at ? Bills Payable 7 our office Received from factory, per fore- 750 ? Mdse. Materials man's statement 750 9 ? SEVENTH SET Journal-Daybook, Continued Home City, Moitdny, July 9, 19- 167 Van Wyck & Co. 4 B. W. Chamber Set< @ S ? «! ? ? Mdse. «Oak " " @$ ? $ ? 6 " Dining Tables @$ ? S ? ? o 48 " •* Chairs @ S ? $ ? 10 Ash Chamber Sets @ $ ? S ? Theo. Upham Mdse. 6 " Dining Tables @ $ ? $ ? 48 " " Chairs @ $ ? $ ? 2 Oak Sidebdiirds @ $ ? $ ? Bills Receivable His note at la days, with interest 600 Theo. Upham 600 10 Accepted his draft at 60 days' 125 George Heath Bills Payable sight, favor of Wm. H. Walker 125 • 10 Drew on him, our favor, at 10 days' 100 Bills Receivable Arthur Bond sight, Dft. accepted 100 10 Unfinished furniture, per invoice 1500 Materials Home Mnfg. Co. 1500 10 1 Oak Roll Top Desk $ ? ? Young & Zier Mdse. 4 " Office Chairs @ $ ? S ? 2 " Uph. Easy " @ $ ? $ ? 1 " Bookcase $ ? Bills Receivable Their note at 10 days, with interest 150 Young & Zier 150 1 1 1 R. W. Chamber Set $ ? ? Chas. Dean Mdse. 1 " Parlor Set $ ? ? Bills Receivable His note at GO days 100 Chas. Dean 100 JO 1 Mah. Parlor Set $ ? ? Edwin Fuller Mdse. ? Bills Receivable His note at 10 days, with interest 75 Edwin Fuller 75 11 Received from factory, per .fore- 1025 Mdse. Materials man's statement 1025 V ? 168 PRACTICE IN MODERN BOOKKEEPING Dr. Cash Journal, Left-hand Cash Receipts Date Cr, Accounts Explanations P. Items Amts. 19— July 2 C. C. Curtiss Invested in Curtiss & Co. 7758 45 u 2 Th. E. Student .« ,i a 6805 08 2 Mdse. Sales per tickets 36 20 3 « <( i( 42 60 5 <( (( (( 27 90 6 Bills Receivable Arthur Bond's note of May 4 1500 6 Interest On above, 63 days at 6% 15 75 6 Bills Receivable Michael Nelson's note 600 July 6 9 Mdse. Cash Dr. Sales per tickets Total received ^ To apply on bill 54 25 16840 23 16840 23^ Van Wyck & Co. \ 750 9 Mdse. Sales per tickets 42 75 9 Theo. Upham His sight draft on Fred. Curtiss 266 10 Mdse. Sales per tickets 54 50 11 (( (( << 39 25 12 u (< (( 37 45 a 13 (( <( (( 53 75 « 14 Interest Discount on C. C. Curtiss's note ? days, at 6%, on $250 1 25 a 14 Mdse. Cash Dr. Sales per tickets Total received 45 30 1290 25 July 16 Balance, July 7 Knute Larson's note of May 14 10570 39 64 11860 Bills Receivable 1200 « 16 Interest On above, ? days at 6% 12 60 11 16 Bills Receivjtble Knute Larson's note of July 5 45 u 16 Mdse. Sales per tickets 27 75 tl 17 « u 65 50 11 18 Bills Receivable Geo. Heath's note of July 5 232 iC 18 Interest On above, ? days 50 « 18 (( Discount on our accp., favor Wm. H. Walker, ? days 1 15 it 18 Mdse. Sales per tickets 107 50 11 19 i( " 79 60 u 19 Bills Receivable On Theo. Upham 's note of July 9, 19— 249 a 19 Interest Amount On above note, ? days forward 1 2021 60 SEVENTH SET 169 Cash Journal, Right-hand Page Cash Payments Ck. Date Dr. Accounts Explanations P. Items Amts. 19— July (( (( (( July (( « July « 2 2 6 7 10 14 14 14 14 16 18 19 Van Dusen & Co. Kinsley & Co. Interest Materials Cash Cr. Balance To apply on bill of sale Ck. # 1 On bill for insurance # 2 Discount on Michael Nelson's note, 62 days at 6 % Pd. Workmen per Pay Roll # 3 Total paid Juhj 7, 19— To apply on bill # 4 Th. E. Student's note, favor of Underwood & Co. #5 On above, ? days at 6% C. C. Curtiss's note, favor of Edwin Fuller (ck. $248.75) # 6 Pd. Workmen per Pay Roll # 7 Total paid July 14, 19— Discount on Knute Larson's note of July 5, ? days Accp. favor of Wra. H. Walker, dated July 10, 1<^- # 8 forward 6000 137 6 126 50 20 11 6269 10570 84 39 16840 23 Home Mnfg. Co. Bills Payable Interest Bills Payable Materials Cash Cr. Balance 750 500 5 250 158 25 32 1663 10197 57 07 11860 64 Interest Bills Payable Home Mnfg. Co. Amount 125 400 17 525 17 170 PRACTICE IN MODERN BOOKKEEPING Trial Balance Book Trial Balance of Balances. List 1 1 . 1 Open Accounts \ L. July 14, 19— July 21, If)— July 31, 19— C. C. Curtiss Partner 9000 9000 ~ 9000 Th. E. Student " 9000 9000 9000 Cash 10197 07 11448 95 13440 91 Bills Receivable 3119 1226 2251 75 George Heath 200 35 Edwin Fuller 335 135 135 Interest 92 12 21 12 92 Bills Payable 2562 50 2437 50 3187 50 Isaac Jacobs .^ 161 25 161 25 Materials ^ 6259 46 6206 21 5333 46 Oscar Patton 1500 1500 Quirk & Co. 450 450 250 Expense 441 25 441 25 710 Mdse. 7743 05 6745 55 5826 30 Tools and Implements 2500 2500 2500 Good Will 2000 2000 2000 Van Wyck & Co. 372 * 254 254 Home Manufacturing Co. 750 750 Arthur Bond 48 143 143 Mortgage Payable 13650 13000 13000 Charles Dean 288 288 288 Young & Zier Gideon Hooker Koon & King 70 70 377 170 135 277 190 3.5323 75 35323 75 C. M. Loring 307 307 Paul Redmond "NTewton Ogden 134 96 99 60 34395 96 34395 34200 42 34200 42 Cash in Safe, July 31, 19— Listl $136.89 2 3 4 $155.45 $174.00 $192.56 5 $211.11 6 $229.67 Cash in Home City Bank, July 31, 19— List 1 ^13304.02 2 3 4 $13305.52 $13307.02 $13308.52 5 $13310.02 6 $13311.52 SEVENTH SET 111 List No. 2 No. 3 Trial Balance Book No. 4 No. 5 No. 6 July 31, 1<>- July 31, 19— July 31, 19— July 31, 19— July 31, 15)— 9000 9000 9000 9000 9000 9000 9000 9000 9000 9000 13460 97 1.3481 02 13501 08 13.52113 13541 19 2254 90 2258 05 2261 20 2264 3^ 2267 50 139 143 147 151 l.)5 12 93 12 93 12 94 12 94 12 95 3187 50 3187 50 3187 50 3187 50 3187 50 5333 46 5333 46 5333 46 5333 46 5333 46 250 250 250 250 250 710 710 710 710 710 5758 45 5690 60 5622 75 5554 90 5487 05 2500 2500 2500 2500 2500 2000 2000 2000 2000 2000 267 65 281 30 291 95 308 60 322 25 147 60 13000 152 20 13000 156 80 13000 161 40 13000 166 13000 291 90 295 80 299 70 303 60 307 50 138 25 141 50 144 75 148 151 25 282 80 288 60 294 40 300 20 306 192 45 194 90 197 35 199 80 202 25 310 30 313 60 316 90 320 20 323 50 102 105 108 111 114 60 70 61 40 62 10 62 80 63 50 34200 43 34200 43 34200 43 34200 43 34200 44 34200|44 34200 44 34200 44 34200 45 34200 45 II Net Gain July 31, 19 — Listl 2 3 4 5 6 13133.56 $3201.40 $3269.25 $3337.09 Gain on Merchandise in July, 19 — $3404.92 $3472.76 Listl 2 3 4 5 6 $2623.70 $2691.55 $2759.40 $2827.25 $2895.10 $2962.95 172 PRACTICE IN MODERN BOOKKEEPING CO I < 1 1 s sisil rr CO —1 CO 3 C Oi t^ Tt< CJ 00000 CO OJ 00 'Tf. r-( 00 t^ 1^ C5 ^ ict 10 CI -+i i-^ 00 CO 10 irj CO ^ i^ c: -t^ 01 ^ -H ^ .-H Cl Ol 01 T-i (M (M ,-1 G^J -H CO CO OI CO 01 ID (M § t^ ■: « •a 3 W ja H O CO 'co' i Oi g i c CO CO 1 T-H 3 L.' 00 1^ 00 CD 10 '^ - '0 § i B 3 C C -ti 13; C: ^0 10 a- i 01 .x> 05 t>. SR Ol »0 t^ CO l^ -c 2 a > a 1 8 1 ^ S| 1 i 1 CO t^ -rtl 000 (N i-t) QO »0 uo (M I^ 1—1 T-H -rti 'Tfi 01 or oico oa 1 ej CO 05 1^ t^ 10 l^ ¥ ^00 CO OOlO ooooooc^oo (NCO Ol 1000 lOOt-OiOiOiOO^ 1>.»0 O^ 05 CDOCM l^^(0jT-iC5i— 1 CO (M 00 l^CO-^ CO 1— iTt^ i 10 CO ^ '^ »0 CO Oi i^Oi ^ t^ CO CO ^COOOOOOOOCOOCOQOO^Oi-O-ft-OOt-Oi (OlO'+tiOO'OOi'Ot-^CO^OOCO^O'-HOO-tit^COOOO t^ifO-^'^Ot^iOOQO'^t^OCO'^COfMCI UOOl CO CI (-H CO CI CO CI Oi r-l t^ 1— t "H CO J £-■ IS c 3 C 1 2 3 -2 c a> OHO 0*0 SH^cqeq>H^O^^oPH EIGHTH SET ^ 173 Eighth Set. — Partnekship. Produce and Shipping This set represents a Produce and Shipping Business conducted by a firm consisting of two partners who invest unequally, and share the gains and losses in proportion to their net investments. Each partner is to give his entire time to the business and shall receive six per cent interest on his net investment, and shall be charged six per cent on his temporary withdrawals. The transactions represented in this set are arranged for the purpose of presenting the subject of Interest and Discount, in its various phases. The cash journal is made a special feature, all cash transactions being recorded in the cash journal, and posted to the ledger from the cash journal. This book is closed weekly, and balance brought forward. The Cash account may be omitted from the ledger, and when it is so omitted, the balance of cash on hand is used in making the weekly trial balance. Special opportunity is afforded for practice in letter writing in connec- tion with the shipping transactions and other business. In an extensive business, where many buyers and salesmen are em- ployed, the purchases of merchandise would be entered in a purchase journal and the sales of merchandise would be entered in a sales journal. The total purchases for the day would be posted to the debit of Merchan- dise in the ledger, and the proper persons credited ; the total sales for the day would be posted to the credit of Merchandise in the ledger, and the proper persons debited. These special journals may be used in this set at the discretion of the instructor. Books Used. — Journal-daybook, cash journal, check book, receipt book, note book, bank pass book, trial balance book, letter book, and stock record book. Business Forms Used. — Receipts, bills of parcels, checks, shipping invoices, account sales, notes, and drafts. Ledger Titles and Number of Lines Each Will Require. — Teacher, 7; Student, 7; Abner Crane, 6 ; Brown & Day, 5 ; Charles Evans, 6 ; Daniel French, 8 ; E. Gale & Co., 7 ; Frank Harper, 6; Gains Innes, 6; Hugo Jones, 7; Ira King & Co., 6; James Lowry, 7; Cash, 10; Allan Greer, 4; Henry Avery, 4; Mdse. (1st), 35; Bills Payable, 20; Expense, 8; Alonzo Boyd, 4; Ship, to Chicago, No. 1, 7 ; S. C. Gale, 4; Ship, to Detroit, No. 1, 7 ; Koon & May, 4 ; W. H. Yale, 9 ; Bills Receivable, 25 ; Simeon North, 4 ; Elihu Root, 4; Ship, to Boston, No. 1, 7; Ship, to Buffalo, No. 1, 7; Ship, to Milwaukee, No. 1, 6; Cyrus Northrop, 4; W. W. Folwell, 4; Ship, to New York, No. 1, 7; Hiram Brown, 6 ; Teacher, Personal, 7 ; J. II. Lewis, 4 ; Ship, to Chicago, No. 2, 6 ; Loren Fletcher, 4; David Burt, 4; Student, Personal, 7; Ship, to Detroit, No. 2, 7; Leslie Lane, 4; James Gray, 4; Harlow Gale, 4; Ship, to Milwaukee, No. 2, 7; Silas Brush, 4 ; P. R. Spencer. 4 ; Literest, 18 ; Ruf ns Choate, 4 ; John Douglass, 4 ; Seth Wright, 4 ; Otto Miller, 4; Henry Robinson, 4; Wm. T. Harris, 4; Morris Bros., 4; W. C. Smith, 6 ; C. M. Jordan, 6 ; Paul Jones & Co., 6 ; Ship, to New York, No. 2, 7 ; Wm. Windom, 6 ; Weed Munro, 6; Mdse. (2d), 24; Loss & Gain, 10; D. C. Bell, 6; J. D. Williams, 6; L. D. Harvey, 6 ; Balance, ? . 174 PRACTICE IN MODERN BOOKKEEPING GENERAL INSTRUCTIONS FOR WORKING EIGHTH SET 1. Write the opening entries in the journal-daybook, cash journal. 2. Post opening entries and take a trial balance. 3. Record all transactions in the journal-daybook or in the cash journal, as the case requires, making out all the bills, notes, receipts, checks, shipping invoices, and writing all letters which the business requires, each day to Aug. 4 ; close the cash journal ; and post to the ledger from the journal-daybook and cash journal. 4. Take a trial balance of the ledger in the trial balance book. 5. Write up the business in all the books for the week ending Aug. 11, making out all the papers, writing all the letters, properly filing all papers and letters, etc. Deposit daily all the cash (checks, bank drafts, and currency) received. Close Shipments into Loss & Gain on receipt of account sales. 6. Post and take a trial balance of the work, in trial balance book. Write up the business for the week ending Aug. 18. Post and take a trial balance in the trial balance book. Write uj) the business for the week ending Aug. 25. Post and take a trial balance in the trial balance book. Write up the businesjs for the week ending Sep. 1. Post and take a triial balance in the trial balance book. 13. Make a complete iiiventory of all property, including interest. 14. Close the ledger, current form. 15. Prepare business statement and financial statement. 16. Make out a balance sheet of the entire business. 7. 8. 9. 10. 11. 12. Buying Price Lists Mdse. Bought Per List 1 2 3 4 5 6 Barley, bus. 40 J? 41^ 42 <^ 43^ 44^ 45^ Beans, u 11.10 $1.12 $1.14 $1.16 $1.18 $1.20 Butter, lb. 18^ 18|^ 19^ 191^ 2(^f 20|^ Cheese, ti 12|^ 13^ m^ 14 ^&&dU,, amvauntlncf to- $665 <^0 , av& keA^tiMf vt^rvi 'tt&cL 6^1^ cOvoJI^t (yyi /lf(yyyv& ^itu, OQy jii.&v uo-u^ t/jt^ytiueZuyn^. (Zw-aAXv'}^a uo-'Wh j^uvtAeA, o-hcleA^, J veAyvaln, IfO-llAA' tv^ot'u, f-f. m. BwveAc^vd. jie.vi. Aug. 10. Bought of David Burt, on our note at 10 days, with interest, 3000 lb. cheese, at ? f . Aug. 10. Paid per check Student's note, in favor of Frank F. Davis, dated July 11, 19 — , $300; interest accrued on note, 30 days, % ? ; total, % ? ; not assumed by the firm Aug. 1, 19 — . Aug. 10. Shipped to P. R. Si>encer, Detroit, to be sold on our account and risk, 1000 lb. Minnesota butter, invoiced at ? /? ; paid drayage per check, $5; total, $? . Aug. 10. Sold Leslie Lane, on his note at 10 days, with interest, 5 bbls. flour, at $ ? ; *200 lb. Minnesota butter, at ? ^ ; total, % ? . Aug. 11. Shipped to W. H. Yale, Winona, per his order, 1500 bus. wheat, at ? tcL a^-v a^^&cHonJL a/t^cL vuiyfo at 3^um/v&v y^ sftiuloi^t, Hcymb <n, ^an^tan^w^. 76 {^6-Iq.. i^EcL @ f6. 60 ^S7 60 ^Aavc^Q. : S^did ^^UM^a.(f& d 76 ¥-^/ 26 €. V €. (f. Aug. 13. Received from P. R. Spencer, Detroit, an account sales of the wheat shipped him on the 4th inst. ; our net proceeds, $ 880.75, have been placed to our credit. Aug. 13. Accepted Gains Innes's draft, at 10 days' sight, on Teacher, favor of Paul Jones & Co., for % 150. Aug. 13. Sold Rufus Choate, for cash, 500 bus. wheat, at ? ^ . Aug. 13. Drew at 10 days' sight on Hugo Jones, our favor, for % 100 ; he accepts and returns the draft. Aug. 14. Sold John Douglass, for cash, 250 bus. barley, at ? f . Aug. 15. Shipped to W. H. Yale, Winona, per his order, 2000 bus. wheat, at ? ^ . Aug. 16. Received W. H. Yale's note at 15 days from Aug. 5, with interest, in full payment of our invoice of Aug. 4. Aug. 16. Paid per check our note of the 3d inst., favor of Allan Greer, % ? ; interest, ? days, % ? ; total, % ? . Aug. 16. Paid per check our note of the 3d inst., favor of Henry Avery, % ? ; discount off, ? days at 6 %, ? f ; face of check, % ? . Aug. 16. Prepaid our acceptance of the 6th inst., favor of D. D. Miner, per check, % ? ; discount ofp, ? days, at 6%, ? f ; face of check, % ? . Aug. 16. Bought of Seth Wright 1500 bus. beans, at $ ? ; 1200 bus. rye, at ? j* ; total, % ? ; gave in payment our note at 60 days for f 1500; our note at 30 days for the balance, $ ? . Aug. 16. Sold Otto Miller, on his note at 10 days, 6 bbls. flour, at 8 ? ; 150 lb. cheese, at ? ^ ; total, !$ ? . Aug. 16. Sold Henry Robinson 500 lb. Minnesota butter, at ? ^ ; 250 lb. cheese,^ at ? ^ ; total, % ? ; received in payment his note at 10 days for ^75; and his note at 30 days for the balance, % ? . Aug. 16. Sold Daniel French, on his note at one month, 2750 bus. oats, at ? ^ . Aug. 17. Sold Frank Harper, on credit, 1000 bus. beans, at ^ ? . Aug. 18. Accepted Elihu Gale & Co.'s draft, at one month, favor of S. C. Gale, for bill of the 2d inst., % ? . EIGHTH SET Shipping Invoice, Second Form 179 Jitvo-i^& aj^ 7T{eA^ka/yicLiQy& iL-kijiiy^&cL ^p.&v cA. y. ^. R. R. ^^^ to- 6'& Q.atd (yyu as^€^(Hi.7tt a/yvd lio^k, o-^ s^o^woyicfyw-ia^. /OOO {yw^. Wkite. €.aX^, vwuo-U&cl @ 88 f ^kaAXf&^ : . 380 /6 3^6 €. V €, s: /favv& €itj, (Q-tat&), 1 ^&a^k&v V ^t^i.d&nL Aug. 18. Received from J. C. Bryant, Buffalo, an account sales of the oats shipped him on the 6th inst. Our net proceeds amount to ^ 660, for which he incloses his note at one month with interest from Aug. 17, 19 — . Aug. 18. Received from Samuel R. Gray, Boston, an account sales of the oats shipped him on the 6th inst. Our net proceeds amount to ^ 449.50, for which we draw on him at sight and deposit draft in Home City Bank. Aug. 18. Paid James B. Sykes, per check, for James Lowry's sight draft on Th. E. Student for % 100. Aug. 18. Received Frank Harper's note at one month, in settlement of account, $ ? . Aug. 18. Paid, per check, Th. E. Student's note, favor of Mark Morris, for $240, due Sep. 20, less discount for ? days at 6 %, ^ ? ; amount paid, % ? . Aug. 20. Sold William T. Harris, on his note at 60 days with interest, 50 bbls. flour, at ^ ? . Aug. 20. Sold Abner Crane, on credit, 25 bbls. flour, at .f ? . Aug. 20. Sold Morris Brothers, on their note at one month, 1000 bus. barley, at ? ^ . Aug. 20. Received from W. II. Yale, Winona, his note at 30 days from Aug. 11, 19 — , with interest, in full payment of our invoice of that date, ^ ? . Aug. 21. Sold Hugo Jones, on credit, 750 bus. barley, at ? ;2^ . Aug. 21. Paid our note of Aug. 3, 19 — , favor of S. C. Gale, per check ; face of note, $ ? ; interest accrued, ? days, $ ? ; face of check, ^ ? . Aug. 22. Paid, per check, our note, favor of Hiram Brown, dated Aug. 9, 19 — , $ ? . Aug. 22. Paid, per check, our acceptance, favor of J. L. Dobbin, dated Aug. 9, 1 9 — , $ ? . Aug. 22. Received from R. C. Spencer, Milwaukee, an account sales of the potatoes shipped him Aug. 7. The net proceeds amount to i$975, for which he incloses his note with interest, afc 30 days from Aug. 22. Aug. 23. Received Leslie Lane's check for his note and interest, dated Aug. 10, 19 — \ face of note, ^ ? ; interest, ? days at 6 %, ? ^ ; total, %1 . Aug. 23. Received from W. H. Yale, Winona, Chicago exchange in payment of his note of Aug. 5, 19 — ; face of note, $ ? ; interest accrued, ? days, $ ? ; total, $ ? . 180 PRACTICE IN MODERN BOOKKEEPING Account Sales, Journal Form (Zmam^t ^k/&^ af Jo (ylyU.. ,^tatc^, an ae^&o-iont and vio.^ af S^&ue.h&'L Ir ^twd&^^t , /{a^rvs. tl ty. fCf— 8 (^xA^k ^at&a^, V'O 6^Uq.. Mawv @ $8JC 32^ ff fO ^Q.k // 86 // // @ $8./0 B88 50 607 60 CCvLC^. 6 S^'b&ixfkt, juaid In ^a^A 18 7'5 // /O ^to'ba^& and CCdv-e-xZioyincf ¥■ 62 " fO (^ayyvyyuU^i^n, S^j^ an Interest accrued on Daniel Slote's note, dated Aug. 28, 19 — , > ? days at 6 % on $ ? y ? 184 PRACTICE IN MODERN BOOKKEEPING Journal-Daybook Home City, Wednesday, August 1, 19 — Abner Crane Teacher's account against him ? Brown & Day " ? Charles Evans (< H (( (< ? Daniel French ^l a it <( ? Teacher Above resources invested ? Teacher Following liabilities assumed ? Elihu Gale & Co. Their account against Teacher V Frank Harper His ? Gains Innes 1 i< (< i( t( Student's account against him ? ? Hugo Jones x Th. E. Student Jj Resource invested ? Th. E. Student ^ Following liabilities assumed V Ira King & Co. Their account against Student ? James Lowry o His ? lb. Minn. Butter, ?f ? ? Mdse. Elihu Gale & Co. Bought on credit ? bbls. Flour, $ ? ? 9 Mdse. Allan Greer Bought of him. ? Allan Greer Our note at ? days, with interest ? Bills Payable ? bus. Oats, ?f $? ? ? Mdse. ? " Wheat, ? ^ $ ? ? " Barley, ?f $? Henry Avery Bought of him. ? Henry Avery Our note at .'30 days ? Bills Payable ShippedtoH.M.Burchard, Chicago, ? ? Shipment to Chicago ^1 to be sold on our % and risk , Mdse. ? bbls. Flour, $ ? Sold him ? ? O ,. . . Alonzo Boyd Mdse. ? bbls. Flour $ ? ? 9 ? — H EIGHTH SET 185 Journal-Daybook, Continnad Home City, Friday, August 3, 19 — Mdse. S. C. Gale S. C. Gale Bills Payable 4 Shipment to Detroit, :^ 1 Mdse. Koon & May Mdse. 4 W. H. Yale, Winona Mdse. 6 Simeon North Mdse. Bills Receivable Simeon Xorth 6 Elihu Root Mdse. Bills Receivable Elihu Root 6 Shipment to Boston, :^ 1 Mdse. 6 Frank Harper Bills Payable Shipment to Buffalo, :^ 1 Mdse. 7 Ira King & Co. Bills Payable ? bus. Oats, ?^ «? ? " Wheat, ?;? $? Bought of him. Our note at ? days with interest Shipped to P. R, Spencer, Detroit, to be sold on our oj^ and risk, ? bus. Wheat ? ^ Sold them on credit ? bbls. Flour Shipiied per his order ? bus. Wheat Sold him ? bus. Oats His note at ? days ?j? If tf Sold him ? bus. Barley ? f His note at ? days, with interest Shipped to Samuel R. GFray, Boston, to be sold on our % and risk, ? bus. Oats ? f Accepted his draft at 20 ds. sight on Teacher, favor of D. D. Miner Shipped to J. C. Bryant, Buflfalo, to be sold on our ^ and risk, ? bus. Oats ? f Accepted their draft at 30 days' sight, on Th. E. Student, favor Thos. Simpson 150 250 186 PRACTICE IN MODERN BOOKKEEPING Journal-Daybook, Continued Home City, Tuesday, August 7, 19 — James Lowry Brown & Day Mdse. Daniel French Daniel French Bills Payable Shipment to Milwaukee, :j^ 1 Mdse. Elihu Gale & Co. Bills Payable Cyrus Northrop Mdse. 8- James Lowry Charles Evans 8 Shipment to New York, # 1 Mdse. Mdse. Hiram Brown Hiram Brown Bills Payable 9 Teacher BiUs Payable 9 Shipment to Chicago, ^ 2 Mdse. Our sight draft, his favor, on Brown & Day, in full of amt. due us on their account ? bus. Potatoes ? f Bought of him Our note at 15 days Shipped the Potatoes to R. C. Spencer, Milwaukee, to be sold on our ^ and risk Accepted their draft at 30 days' sight, favor of George White, for balance of their ^ Sold him ? bbls. Flour $ ? Our sight draft, his favor, on Charles Evans, to apply on % Shipped to Daniel Slote, N. Y., to be sold on our ^ and risk, ? bus. Oats ? f ? lb. Minn. Butter ? ^ Bought of him Our note at 10 days Check for balance (C.B.) Accepted G. H. Dagget's draft at 10 days' sight, favor of J. L. Dobbin, on Teacher. Amt. not assumed Aug. 1, li) — Shipped to H.M.Burchard, Chicago, to be sold on our ^ and risk, ? lb. Minn. Butter ? 450 100 ? ? 240 450 100 240 Note. — Transactions on Aug. 7 and Aug. 9 are omitted in illustration. EIGHTH ;SET 187 Journal-Daybook, Continued Home City, Thursday, August 9, 19 — Loren Fletcher Sold him V Mdse. ? bus. Oats ? f 9 Bills Receivable His note at ? days V Loren Fletcher ? 10 Mdse. ? lb. Cheese ? f ? David Burt Bought of him ? David Burt Our note at^lO days, with interest ? Bills Payable ? 10 Shipment to Detroit, # 2 Shipped to P. R. Spencer, Detroit, to be sold on our ^ and risk, ? Mdse. ? lb. Minn. Butter ? f ? 10 Leslie Lane Sold him ? Mdse. ? bbls. Flour $ ? $ ? ? lb. Minn. Butter ? ^ ? ? Bills Receivable His note at 10 days, with interest ? Leslie Lane ? 11 W. H. Yale, Winona Shipped per his order ? Mdse. ? bus. Wheat ? f ? 11 Mdse. ? bus. Oats ? ^ $ ? ? " Barley ? ^ $ ? ? " Wheat ? ^ S ? . ? James Gray Bought of him ? James Gray Our note at (JO days $2500 4000 Bills Payable " " " 30 " 1500 Check for balance, $ ? (C.B.) 4000 11 Harlow Gale Sold him ? Mdse. '? lb. Minn. Butter If $ ? ? " Cheese 'if $ ? ? bbls. Flour $ ? $ ? ? Bills Receivable His note at 10 days $75 125 Harlow Gale « « «. 15 « 50 Check for balance, $ ? (C.B.) 125 '} ? 1 188 PRACTICE IN MODERN BOOKKEEPING Cash Journal, Left-hand Page Cash Recpipts 19— Aug. Aug. Aug. 16 Teacher Th. E. Student Alonzo Boyd Cash Dr. Koon & May Cyrus Northrop Abner Crane W. W. Fohvell J. H. Lewis Harlow Gale Ship, to Chicago ^ 1 Cash Dr. Ruf us Choate John Efouglass Interest Interest Cash Dr. Invested in the firm On account of Mdse. (J.) Total received Sight draft deposited On account of Mdse. On account On account of Mdse. (J.) (J.) (J.) (J.) Sales Net proceeds as per Acct from H. M. Burchard Total received Balance, Aug. 4 On account of Mdse. (J.) (J.) Discount on note, favor of Henry Avery, of Aug. 3, 20 days at 6% on $ ? Discount on acceptance of Aug. G, favor of D. D. Miner 13 days at 6% on $ ? Total received Balance, Aug. 11 EIGHTH SET 18<) Cash Journal, Riyht-hand Page Cash Payments 19— Aug. 1 n 3 n 3 a 4 a 4 4 Aug. 6 (( 6 u 7 a 8 (( 9 it 9 a 10 a 10 ti 11 ii 11 11 Aug. Expense Ship, to Chicago ^j^ 1 Elihu Gale & Co. Ship, to Detroit ^ 1 Expense W. H. Yale, Winona Cash Cr. Balance Ship, to Boston 9^ 1 Buffalo # 1 Milwaukee :^ 1 New York # 1 Hiram Brown Ship, to Chicago ^2 Th. E. Student Ship, to Detroit # 2 W. H. Yale, Winona James Gray Ship.to Milwaukee # 2 Cash Cr. Balance Bills Payable Interest Bills Payable Bills Payable Cash Cr. Balance Set of Blank Books Drayage, per check Check on % Drayage, per check Per Petty Expense Book Drayage, per check Total paid Drayage, per check On % of Mdse. (J.) Drayage, per check His note of July 11, 19— favor of Y. F. Davis Interest, 30 days Drayage, per check #? #? #? #? On % of Mdse. (J.) Drayage, per check $300 1. # # # # Total paid Note, favor Allan Greer # '.' 13 days at 6% on above $1500 Note, favor Henry Avery, of Aug. 3, 19—. # ? Acceptance favor D. D. Miner of Aug. 6, 19—. # ? Total paid 15 15 10 20 9 5 301 o 15 20 50 190 PRACTICE IN MODERN BOOKKEEPING Trial Balance of Balances. List i Open Accounts Aug. 11, 19— Aug. 18, 19— Sep. 1, 19— Teacher Partner 6000 6000 6000 Student 3000 3000 3000 Abner Crane 177 50 177 50 340 Brown & Day 114 Charles Evans 175 175 175 1 Daniel French 190 190 100 Elihu Gale & Co. 450 Frank Harper 200 Gains Innes 295 145 145 Hugo Jones 475 375 817 50 ! Ira King & Co. James Lowry Shipment to Chicago, No. 1 BiUs Payable - i 250 100 74 14995 65 50 250 14025 50 250 6000 Shipment to Detroit, No. 1 816 « Boston, " 1 395 Cash 7779 52 4706 75 2343 90 W. H. Yale, Winona 1837 50 2815 Expense Merchandise 44 8107 13 44 5684 13 50 308 640 89 Ship't to Buffalo, No. 1 585 " Milwaukee, " 1 990 990 New York, " 1 780 780 " Chicago, " 2 Detroit, " 2 205 205 205 205 205 Bills Receivable 842 4464 50 8734 Ship't to Milwaukee, No. 2 920 920 920 Teacher, Personal 540 540 Student, P. R. Spencer Interest 301 50 540 880 18 75 48 61 253ti5 15 25365 15 391 Loss and Gain Ship't to New York, No. 2 26890 975 326 90 23693 31 23693 31 15721 90 15721 90 List 2 List 3 EIGHTH SET List 4 191 List 5 List 6 Sep. 1, li>- Sep. 1, 19— Sep. 1, 19— Sep. 1, 19— Sep. 1, 19- 6000 6000 6000 1 6000 6000 3000 300( 3000 3000 3000 341 25 342 5(1 343 7o 345 346 25 117 120 123 126 129 175 175 175 • 175 175 100 145 100 145 100 145 100 145 100 145 828 11 250 6050 840 250 6100 851 25 250 6150 862 50 250 6200 873 75 250 6250 2148 17 1952 48 1756 78 1561 05 1365 34 308 89 308 89 308 89 308 89 308 89 676 25 712 50 748 75 785 821 25 210 215 220 225 230 8814 20, 8894 50 8974 75 9055 9135 ^l:^ 940 930 980 1000 1020 48 59 48 53 48 48 48 4(i 48 42 263 15 199 4(1 135 65, 71 90 8 K) 1000 1025 1050 1075 1100 15708 15 15708 15 15694 40 15(594 40 15680 65 15()8(» 65 15666 90 15666 90 15653 15 1565M 15 192 PRACTICE IN MODERN BOOKKEEPING a> 1 1 B .2 .2 o 05 00 Oi ■^ ^ CD Oi CD Oi CD CO o 1— ( X CO tc 05 CO ■* CO CO Ol lO o o ■tH CO '^t Of lO O OI l^ O t^ CO O (M C5 c: ^ GO G^IOI J— ( - o o s i 05 § ^ Q % 8 "to i s i ^ 1^^ CO fe CD 1 a 1 ^ i ji Co w 1 1 i 3 2 '5 o »o iC o o l^ CO t- »Q lO ^ f 1 GO 'Tf" rt^ Tt^ »0 05 c: I- CO >o I- i^ I- 1 ^^ 2 ^§ lO QO 05 O CO >— t 1 S > 1 CD G, CO GO (>) »o o o CO »0 0(011^ O CiCiOi Ol c 1 ^^ ?^8i2.^ g§ i^ O O »C O lO CO O O 05 O lO CS GO O O 05 O >0 CI CO GO '^i CD 1^ >0 05 OO CO O t^ OCOTtiCDOSGOT-l CO CO CO t- CI CO a >o ci 35 ^ 6*1 ^ 5D ^ CO lO 00 Ol r- 1 CO O »0 O O O kO O lO -+I CO -^OlOl^OS^OSGOOOOOOOJl^ lO t- CO CO CO Tt^ GO CO lO 05 1- Ol CI Oi Oi ^ CO (M GO 1 CO^ J -• 1 O 1 2 t-t f-l »— < 1— ( »— 1 »— ( l-H ,— ( CI CI OJ CI = G52 ' docdooocdo H c/j *^ < « :a o S w ^ X 1 ^m^ '■ii ,#<■