RULES FOR SINGLE ENTRY BOOK-KEEPING. I.-FOR OPENING BOOKS. 1. We first take an inventory of each different kind of property on hand or belonging to us; also of all amounts due to us from person on account, and crlitaurnai vrg-sinih-Jhlafau r lr a.P m f property, and for the amounts miore partners in the business, 2. If we a Pis on account we make oursel 3. If thern for the amount 4. If we ] in the Journal 5. If we BooK on the de 6. If we 1 Book. 7. re each debit ae Bank debit in our Cash Ils Receivable.n the Invoice Sopening the them in the goods, notes, The mi Book. 8. Give ec Books, credit fc 9. If we a Bills Payable E 1. Each p or services, and )e made debit for the property2. Each p, THE GOIFT OPF the thie give cqual value, mi hich we have recclved of him 3. The Ba I.sit of money, checks or drafts Cash is aeot in ne uasn sook when we receive money, checks, or sight drafts. 5. Cash is credit when we pay out money, or deposit it in the Bank; also, when we part with checks which we have received from other persons, but not for checks which we draw on our Banker. 6. All notes which we receive against other persons must be recorded in the Bills Receivable Book; and when they are paid or parted with the last two columns of the Bill Book must receive the proper entry, to show them canceled. 7. Notes that we issue must be recorded in the Bills Payable Book, and when they are paid make the proper entry in the last two columns. 8. If a person wishes to settle his account, be sure everything is posted to the Ledger, and, if so, the difference between the two sides of his account will show the amount our due, or his due. If he pays us, give him credit: if we pay him, make him debit in the Journal; and, when posted to the Ledger, draw lines across both money columns and place the addings to show the account settled. III.-FOR CLOSING A LEDGER AND MAKING STATEMENT. 1. All accounts in the Ledger should be balanced once a year, or at the time of making stat(ments, whether settled or not. 2. To balance an account add the debit and credit sides on loose paper; deduct the smaller from the greater, and place the difference on the smaller side, in red ink, as a balancing entry; draw red lines across both money col:mns, and acd Ihe columns, which willr now be equal. Now draw double red lines below the addings, and on the next line still below, bring down this balance on the.opposite side, in black ink. This balance will become a new account. 3. As we balance these accounts, we transfer the balance to our Statement Book; if the debit side is the largest, as a resource, if the credit side is the largest, as a liability. 4. We now take an Inventory of merchandise on hand, and enter the amount as a resource. 5. Enter the last balance of the Cash Book as a resource. 6. Add the notes that remain unpaid on the Bills Receivable, and enter the amount as a resource. 7. Add the notes that are unpaid on the Bills Payable, and enter as a liability. 8. Deduct total liabilities from total resources, and we have Present Capital. 9. From the present capital deduct the invested capital, and we have the Net Gain. 10. The net gain may now be passed to our credit in the Journal, and posted to our account in the Ledger. This account may now be balanced, and the balance brought down, showing our investment for the next year. (If there are two or more partners, the net gain must be divided, and each partner must be credited for his share, and each account balanced as above) NICHOLS' PRACTICAL BY SINGLE AND DOUBLE ENTRY. FOR THE COMMON SCHOOL THE HIGH SCHOOL, AND THE COMMERCIAL COLLEGE. BY B. E. NICHOLS, PRINCIPAL OF COMMERCIAL DEPARTMENT IN ANN ARBOR HIGH SCHOOL. Entered according to Act of Congress, in the year 1873, by B. E. NICHOLS, In the Office of the Librarian of Congress, at Washington. Entered according to Act of Congress, in the ycar 1876, by B. E. NICHOLS, In the Office of the Librarian of Congress, at Washington. CONTENTS. PAGE. Single Entry Rules collected on First Cover... Double Entry " " " Last Cover.... Abbreviations................................ 4 Introduction............................... 5 To the Student................................. 6 Courses of Study........................... 7 Definitions and Principles.............. 8-9 Instructions for Introductory Set........... 10 TNTRODUCTORY SET I.-Single Entry. History or Transactions and Statement of IResulls.............................11-12 Models of Accounts....................13-14-15 History or Transactions continued......... 16-17 Statement of Results....................... 17 INTRODUCTORY SET II. History or Transactions and Results.......18-19 SET I.-Retail Merchandising. History or Transactions.....................20-23 Journal, Cash Book and Ledger.........24-25-28 Index to Ledger............................26-27 Statement of Results....................... 29 SET I.-CONTINUED -Partnership. History or Transactions...................30-32 Forms of Receipts, Notes, Orders, &c........ 33 Bill Book Illustrated.......................34-35 Check Book.................................36-37 Statement of Results......................... 38 SET II.-Furniture Business. Explanations................................ 39 History.....................................40-43 Sales Cash, and Time Books.............. 45-47 Statement of Results....................... 47 PAGE. SET III.-Builder and Carpenter, combining Arithmetical Problems. History and Results..................... 48-49-50 INTRODUCTORY SET.-Double Entry. Definitions, Principles, and Examples.... 51-52 History.....................................52-53 Accounts Illustrated, and Results......53-54-55 SET 1.-Retail Merchandising. Books Explained............................. 55 History.................................56-58 Journal and Ledger Illustrated.......... 59-63 Trial Balance, Balance Sheet, and Profit and L oss........................................ 64 SET I.-CONTINUED.-Shipments. Explanations................................ 65 H istory................................... 66-68 Trial Balance, Balance Sheet, and Profit and Loss.................................. 69 SET II.-Model Set. Four Column Journal. Explanations................................ 70 Journal and Cash Book.....................71-73 Balance Sheet, and Profit and Loss.........72-73 SET III.-Single Entry. Set II. Resumed. Changed to Double Entry. Explanations................................ 75 History....................................76 77 Cash Book...................................78-79 Trial Balance and Inventory................... 78 Balance Sheet and Profit and Loss.......... 79 History for Farming, with Results......... 80 Instructions for Farming Set............... 74 COMMERCIAL LAW. CHAPTER 1. CHAPTER VI. Contracts.............................................. 105 Sale of Chattels...................................... 129 CHAPTE R IIL CHAPTER VII. Negotiable Paper.................................1li1 Right of Stoppage in Transitu.................... 132 CHAPTER I11L CHAPTER VIII. Agents................................................ 118 Payment.............................................. 134 CHAPTER IV. CHAPTER IX. Partnership............................... *.........#..12-2 Law of Tender.....;.....A....................... o135 CHIAPTER V. CHAPTER X. Guaranty........I...................................... 126 1 lies.................................................. 136 ABIB"REVIATIO0NS AND CHIARACTERS.. Acct.-Account. Agt.-Agenit. Amt.-Arnount. Apr.-April. Augq.-August..Thl. -Balance. Bbl.-Barrel. P. B.-Bill Book. BRk.-Black. Bot.-Boughlt. B. Pay.-Bills Payalie. B. ]?&.-Bills Receivable. Brol.-Brought. Bus. -Bushel. C'. B.-Cash Book. (Thgd.-Charged. Co.-Corn painy. Gain,.-Co0111M issionl. C o nsqc.t -Consignment. Or.-Creditor. Dec. -D~ecember. JDep-De posit. DRO-Draft. J)Bewt.-Uliscount. DO -TPhe same. Doz. -Doze-n., Dr.-Dehtor. Ds.-Days. Jx.. or Exch.-Exchange. E. E.-Errors excepted. E. and 0. B.-Errors and omissions excepted Feb -February. F.-Folio. Frt.- Freight..6'al.-Galloni. ld/f. -Handkerchief. I B.-lnvoice. Book. Jnt.-l ni te rest. Jan.-JanDuary. Lbs.-Poutn ds. E. F.-Ledger. Folio. No.-Month. Mar.-March. Mdse.- Merchandise. No.-Number. Nov.-N ovember. Oct.-October. P -Page Payrnt.-Payment. Pd -Paid. Per.-By. Ps.-Pieces. P. anvd L.- Profit and Loss. Reed.-Received. R. B. -Rn-ilIroad. S. B.-Sales Book. Sept. -Sept ember. Shpd.-Shipped. Skpmt.-Shipment. Sunds.-Su~ndries. U. S. B.-United States Bonds. Yds.-Yards. Yr. -Year. @ý.-At. %.-Account. 6'o.-Per cent. lb s-Pou-nds. $.-Dollars. ý,.-Cents. V-Check mark. ~,plus.-Addition. -,minus.-Subtraction. 122.-Twelve and 2-4ths. 8l'.-Tbirty-one and 1-4-th. 183.-Eighteen and 3-4ths. INTRODUCTORY. IN presenting this little book to the Teachers and the Students of the country, the Author claims no new discovery in the science of Book-Keeping; but he does claim to have given the Student no Parrot Work to do, as nothing in the book is to be copied. The Forms or Models of books are mostly common and simple; some extra or special columns are used to show certain results and to save labor. The peculiar features of the work are as follows: 1 It gives and explains principles briefly and clearly. 2. It gives a'History of the business, or a series of transactions, and illustrates a.few and only afew, of the same; just enough to show the form and method of entry in the different books, and then gives the result or answer for the whole history; leaving the Student to write up the transactions and bring out like results. This makes it a book of Practice Work, and is the leading, prominent feature of the book. This is the way we teach Mathematics, and this is the way iwe teach Book-Keeping. [What would the Teacher think of the Arithmetic which gave the process of solution of one-half or three-fourths of the problems in the book?] 3. It gives prominence to Single Entry, for the obvious reason, that a large majority of the business men of the country keep their books by this method. 4. It shows holf to change a Set of Single Entry books to Double Entry. 5. It treats of forming and dissolving Partnerships. The Student is taught how to close up one kind of business, and with the property on hand purchase another stock and engage in another kind of business. 6. It shows the same History written by Single and also by Donble Entry, comparing results and the labor by the two methods. 7. The examples given in Commission business and in Shipmentsalso in Shipments on Joint Account, and in Mdse. Companies, are full and varied. 8, The Banking Set is believed to be a model of excellence, and in its preparation the Author has been under obligations to the Cashier and the Teller of the First National Bank, of Ann Arbor, also to the Cashier of the Savings Bank, of Ann Arbor, for their kin(dness and courtesy in allowing him access to their books, and also for many valuable suggestions. The Set begins with a brief statement of the National Banking Law passed February, 1863. In writing this Set, the Student is required to fill out all Checks, Deposit Checks, Drafts, Notes, etc., and put them on file, and from these files make his entries, tlse same as in actual business; thus giving him the same practice as if he were in the bank. A large quantity of these blanks has been prepared, to accompany the book when desired. Currency has also been prepared for the use of the Student, that hle may have practice in handling, and counting money. This, and the Blank Notes, Checks, etc.. can be furnished to classes who may desire them, at a small cost. TO THE STUDENT. In entering upon any study as a preparation for business life, your chief desire should be to gain such a perfect knowledge of the subject under consideration, as will enable you to make a practical use of this knowledge in the future. Cultivate independence of thought, and be thorough in your investigations; calling for aid from your Teacher only when you have exhausted your own resources. Do not wrong yourself by assuming to know; thereby preventing instruction that would otherwise be of great value. Be prompt in meeting all engagements, especially for the payment of money; thereby earning the confidence of the public, making them feel and know that your simple promise is as reliable as a first mortgage on real estate. Such a reputation will prove to be your most valuable capital. As soon as you have gained sufficient knowledge of accounts, commence at once to keep a record of your own actual transactions, however limited; and let it be a true and faithful record of every transaction, specifying items, even if it does reveal to others and remind you of some things you do not care to have known, or that you might wish to forget. If you are faithful and honest in these records, you will find them acting as a p)werfulforce in restraining you from doing those things that you do not wish to place on record. The primary result will be, a growth and development into a true and noble manhood. The secondary result will be, a large surplus of accumulated gains, which would otherwise have been worse than squandered. If the size of this book shall convey the impression that it contains little food for thought, allow me to say that the aim has been, not to surround the kernel with so thick a shell as to discourage you in the attempt to find it. The outer and bulky rind has been removed, leaving only the inner or hard shell to encounter. But, with the two series of rules provided and conveniently arranged on the inner covers, you can hardly fail to comprehend all that is here presented for your investigation. BLANK BOOKS. Three sets of Blank Books have been prepared, to accompany the Book, adapted to the Three Courses of Study; each set containing the requisite amount of paper, of the best quality, and ruled to correspond with the models given in the book. Each set is put up in a strong wrapper, which serves a good purpose in preserving them during the intervals of writing. To save expense, and the inconvenience of a large number of books, several different books have been put in one cover, and so arranged as to cause no inconvenience in transferring from one to the other, with the Index to the st:me printed on the cover, in the order of their arrangement; thereby condensing the Full Year's Course of sixteen books, into six. The one labeled Bank Book contains all the books that belong to the Banking set, except the following: General Journal, Deposit Journal, General Ledger and Deposit Ledger. These are bounds with other books. Blank Checks, Drafts, Notes, Receipts, &c., can be furnished to those who may desire them. These are to be filled up by the student, as lie fiiJs occasion, while writing the transactions given in the book. 6 COURSES OF STUDY. In preparing this Book, the aim has been to meet the wants of the various schools of the country, namely; the Common or District School, the Grammar School, the High School, and the Commercial College. In the first class, Book-keeping is usually taught only three months of the year, or during the winter months. In the Grammar School it is usually taught six months of the year, while in the High School it is pursued during the entire year. It has therefore been thought best to divide the work into three courses, as follows: THREE MONTHS' COURSE. This course will include all of Single Entry and Set I of Double Entry and the completion of it will qualify the Student as Book-Keeper for the ordinary business of buying or selling Goods, and for Mechanical or Farming work; and this every boy and girl in every District School in the United States should be taught. If preferred, either the 2nd or 3d Set in Double Entry may be taken in place of the 1st; or the History for a Farming Set, on page 104, may be substituted, and written either by Single or Double Entry. SIX MONTHS' COURSE. This will embrace Single Entry and the first four Sets of Double Entry, and will include the Model Set, adapted to a large class of Retail Mercantile Business. It also includes Shipping and Commission Business, and will be all that the great majority of scholars in our Grammar Schools will need or desire, giving them ample qualifications for a varied business. To this, may be added the History on page 104, if thought desirable; or it may be substituted in place of Set IV. FULL YEAR'S COURSE. This adds to the other courses, Sets five and six, giving the Student the most complicated transactions in Shipments on Joint %; also a thorough drill in Bank Book-Keeping, such as many of our High School and Commercial College Students will desire and avail themselves of. 7 PART I.--SINGLE ENTRY. DEFINITION AND PRINCIPLE. Book-Keeping is recording business transactions in the form of debit and credit, and In such a manner that we may readily determine how much persons are owing us, or how much we may be owing them; also, that we may ascertain, at stated times, what we are worth, and what we have gained or lost during a specified time. A Business Transaction is the transferring of any kind of property, or value in the form of personal promises, from one person to another. Buying or selling goods, receiving or paying money, receiving or giving notes, checks or orders, borrowing or lending money or other property; all these are business transactions. An Account is a record on paper or in a book, in the form of debit and credit, of property bought or sold, of payments made or of services rendered. The left-hand side is Dr. and the right-hand Cr. A Personal Account is an account with a person, a company or a corporation. National Bank account is a personal account or an account with the persons owning the bank. An Order is a written or verbal request made by one person, called the Drawer, and addressed to another person, called the Drawee, directing him to pay to a third person, called the Payee, a certain sum, in goods or other property. A Draft is a written order calling for money. A Bank Draft is one that is drawn by one bank on another bank. When drawn in one State or country, on a person in another State or country, it is called a Bill of Exchange. Drafts or Bills of Exchange are extensively used by all classes of persons in transfering money value from one place to another. Checks are written orders drawn by persons on the Bank where they have money deposited. Promissory Notes are written promises to pay -certain sums of money at specified times. The person who signs a promissory note is called the maker, and the person to whom it is made payable is called the payee. Bank Bills or paper money are promissory notes; the bank who issued them, being the maker, and the person holding them being the payee. United States Treasury Notes are issued by the Treasury Department of the U. S. Government, and are legal tender for the payment of all debts or obligations from one person to another, unless the contract expressly calls for gold or silver. A Receipt is a written acknowledgment of the payment of money or other property, by the party to whom it is given. A Due Bill is a written acknowledgment of indebtedness by the person who signs it, Pad is payable in goods or other chattels. Merchandise is a general term applied to the various kinds of goods bought and sold woy merchants. Inventory is a list of the articles that make up our merchandise, with the cost price or the estimated value attached to each article. Shipment or Consignment is used to represent goods sent to another person, or received from another person to be sold on the account of, and at the risk of the owner. Balance signifies equality, or equal weight. Therefore, to balance an account, is to make the two sides equal in value. It is also used to denote the difference between the Dr. and Cr. sides of an account, or the sum required to make them equal. Resources mean money, notes, accounts or any kind of property that has a value. Liabilities mean all debts or obligations that we are to pay. Book-Keeping is divided into two general divisions, called Single Entry and Double Entry. In Single Entry, each transaction has but one record in the Ledger, as it deals only with personal accounts. It is true, we keep a record of money received and paid out in our Cash Book, and a record of notes in our Bill Book; but we do not enter them in our Ledger. All personal accounts are first recorded in the Journal or Day Book, and transferred to the Ledger as we have leisure during the day. This process of transferring to the Ledger is called posting, and after the transfer is made, we place the figure denoting the Ledger page, before the name in the margin of the Journal, to show that the transfer has been made. DEBIT RULE. When a person receives of us any thing that has value, and does not at the time give us equal value, such person is to be made debit for the property he has received. If we sell him goods, or lend him money; or pay him money that we are owing him; or give him an order on some other person; or pay his order; or give him a note to settle an account; in each case we make him Dr., if he does not give us equal value in return. CREDIT RULE. When we receive from a person any thing that has value, and do not at the time give him equal value, such person is to be made credit for the property we have received. When we receive an equivalent for the property we part with, or if we give an equivalent for the property we receive, there will be no account with the person with whom we deal, but the property parted with or received must be recorded in the proper book or books. Thus, if we sell to Wm. II. Adams 40 yards of Carpeting, at $1.50 per yard, and receive his note in pay, we do not make Mr. Adams Dr. for the Carpeting, because the note received has a value equal to the goods sold; but we must record the note in our Bills Receivable Book. Again, if we purchase of E. B. Smith & Co., of Detroit, a bill of merchandise and give them our note in pay, we have rendered an equivalent for the goods bought, therefore we have no account with them; but the note must be recorded in our Bills Payable. When this note becomes due, and we pay it in cash, we do not make E. B. Smith & Co. Dr. for the money paid to them, because the note which we receive of them is an equivalent for the cash paid out. We must, however, record the money paid out in our Cash Book, also make a record in our Bills Payable to show that the note has been paid. If we should pay this note by giving our check on the National Bank, we still have no account with the parties who held the note, for they have received an equivalent for the note they give us; but as we have drawn from the bank some of our money, we must give it credit, as'it receives no equivalent for the money it pays. The Cash Book may be considered as an account with the Safe, treating it like a person; making it debit when it receives money or when we put money in the Safe, and giving it credit when it returns our money to us; that is, when we pay it out to persons, or for property that we may buy. The difference between the Dr. and Cr. columns will show how much money is in the Safe. We prove the accuracy of the book at the close of each day, by counting the money to ascertain if it agrees with the difference between the two Columns of the book. Every person should keep a record of his business transactions, whether he be merchant, banker, mechanic, farmer, professional man, day laborer, or student. These records may all be made in one book, or we may use many. The nature of the business and the genius of the man, will determine how many and what kind of books are to be used. The day laborer, the farmer, and some mechanics and professional men, will find it a saving of time and labor to use but one book, arranged for one or two accounts on a page, with an Index to the same, to enable them to turn readily to an account. It may be called "Account Book" or " Ledger," just as we may choose. 9 INSTRUCTIONS AND EXPLANATIONS. In this book all transactions are recorded at the time they take place. An account is opened with each person with whom we transact business, whenever we part with a value and do not receive, or when we receive a value and do not give in return; also when we receive value and part with value, if the two are unequal. EXAMPLE 1.-We sell to Samuel Jones, 2 Bush. Apples @ 60, 4 Bush. Potatoes @ 75ý, for which he does not pay us. Samuel Jones here receives a value and gives nothing in return, therefore we make him debit for the property he has received. [See Rule i for Recording Transactions, on cover.] EXAMPLE 2.-We buy of M. Clark, 10 tbs. Sugar @ 10i, 5 tls. Coffee @ 30, and do not pay him; therefore we give him credit for the property we have received. [Rule 2 for Recording.] EXAMPLE 3.-We buy of Thomas Green, 10 Yds. Carpet @ 900, 1 Pr. Gloves, $1.50, and sell to him 1 Load Wood, $4.00, 1 Bush. Apples, 70k. In this transaction we receive a value and part with a value, but the two are unequal; therefore we credit him for that which we receive of him, and debit him for that which he receives of us. EXAMPLE 4.-We sell to Frank Wood a horse and buggy for $350, and he pays us cash. Here the value received equals the value parted with, therefore Frank Wood is neither our debtor nor our creditor; hence, we have no account with him. Are we, then, to make no record of such transactions? If we wish to know how much money we receive, and of whom, or for what we receive it; how much we pay out, and to whom, or for what we pay it; we must keep an account with this money, and we call it Cash Account. It is an account with the place where this money is kept, our Safe, if we have one, our money drawer, or our pocket-book. We put this money in the Safe, and make it debit for what it receives of us. It owes us for what it receives of us, until it gives it back to us again. EXAMPLE 5.-We buy of E. J. Johnson a Hat $4.50, and pay him Cash. We have no % with Mr. Johnson, for the hat received is equal to the money parted with. But where did the money come from, which we gave for it? We received it from the safe ormoney drawer; therefore we must give it, or our Cash Account, credit. The examples or transactions that follow, are for the pupil to record in his Account Book, or Ledger, determining for himself what accounts to open, when to make them debit, and when to make them credit. A few of the first transactions are recorded on pages 13,14, 15, to show the form of the accounts and the proper expression. The debits and credits of each account may be on the same page, using the left-hand column for debit and the right-hand for credit, as shown in the Cash Account on page 13, or they may be on opposite pages, as shown in L. S. Lerch's account on page 14. It they are on the same page, no paper will be wasted, as each line contains an entry; while if on opposite pages, one side of the account is often filled, and the other side contains but few records. In writing the first series of transactions, the student may use the single page for Cash, and the double page for the other accounts. This series of transactions represents the business of a House and Sign Painter, having one man in his employ, at $1.50 per day. The student, while recording them, 10 HISTORY OR TRANSACTIONS. must make them his own, and enter into the work as though it were real. Let every thing be done with the greatest care, in reference to accuracy and neatness. Study the Models on pages 14 and 15, in connection with the transactions from which they were made, and get clear conceptions of the rules for debit and credit; then begin your work. Balance the Cash Book each day, as shown in the Model. HISTORY OR TRANSACTIONS. Monday, August 5, 1878. I have on hand, Cash,_$25.00. Brushes, $2.00. [Credit yourself and debit Cash. Rules i and 5.] I have been painting for E. B. Pond to-day, self and man, @ $2.00 each. Chgd. to %; Bought of L. S. Lerch, on %, 100 ibs. Pittsburg Lead, @ 10/; 6 Gals. Oil, @ 70/. 2 lbs. Burnt Umber, @ 25W. Paid Cash for 50 lbs Flour, @ 30; 2 Gals. Kerosene Oil, @ 30/. Bought of Mack & Schmid, on %, 12 Yds. Calico, @ 80; 6 Yds. Bleached Sheeting, @ 12V; 4 Spools Thread, @ 40; Needles, 10W. Paid Cash for 4 Cigars, @ 10/; 1 Glass Brandy, 10/. [Students who do not use Cigars or Liquor, may, each day,make a deposit in the Savings Bank for the amount thus paid.] Cash balance at night, $22.40. Tuesday, August 6. Bought of Theodore Taylor, on %, 10 lbs. Sugar, @ 10/; 3 ibs. Coffee, @ 30/; 5 lbs. Rice, @ 9/; 2 lbs. Prunes, @ 150. Bought of John Taylor, 1 Load Wood, measuring 3 ft. 6 in. x 2 ft. 4 in. x 12 ft. long, @ $4 per cord, and paid for same in Cash. Bought of L. S. Lerch, on %, 1 Paint Brush, 90/; 1 do. $1.20. Paid Cash for 4 Cigars, @ 100; 1 Glass Brandy, 10/; Postage Stamps, 48; Pens and Paper, 500. Self and man have been painting blinds for W. D. Smith, @ $2 each; furnished paint, $4; for which he pays Cash. Cash balance, $25.86. Wednesday, August 7. Bought of Theodore Taylor, on %, Y Gal. Syrup, @ $1.20; 2 Ots. Berries, 12'; 1 lb Corn Starch, 150. Paid Cash for 4 Cigars, @ 10/; 2 Glasses Beer, @ 5/. -Bought of Mack & Schmid, on %, 2 Pr. Hose, @ 250; 4 Hdkfs. @ 20ý/; 1 Yd. Linen, 50~; Buttons, 10/. Self and man have been painting for them, on store, @ $2 each, and furnished Paint, $3.50. Cash balance, $25.36. Thursday, August 8. Paid Cash for 6 Cigars, @ 100; 4 for self, and 1 each for John and Tom. [One must treat his friends, you know. Tom furnished the drinks to-day.] Bought of Theodore Taylor, on %, 1 Bush. Potatoes, 80/; Y Gal. Vinegar, @ 2C/. My man has worked for him, painting on his house, at $2. I have worked for Prof. Greene, hanging paper, for which he pays me cash, $2. Cash balance, $26.76. 11 HISTORY OR TRANSACTIONS Friday, August 9. Paid L. S. Lerch cash on %, $10.00; and bought of him 1 lb. Yellow Ochre, 200; 1 Gal. Boiled Oil, 750. [The money paid to him must be charged to him, aricalso entered in the Cash Account.]' Paid Cash for Cigar Case, 50k; 4 Cigars, @ 10,; Drink, 10W. Bought of Theodore Taylor, on %, 1 th. Soup, 10k; 1 tb. Raisins, 20W; 2 Qts. Berries, @ 12. Paid Cash for 2 lbs. Beef, at 10&; 1,Ioz. Eggs, 100; Bread, 7 l; Ice, 10W. My man has worked for Theodore Taylor, @ $2; chg. to %. I have been hanging paper for John Moore, for which he gives me his check on Savings Bank, $2. [Checks received can De used as money, therefore we enter them as Cash.] Cash balance, $17.2'9. Saturday, August 10. Paid Cash for 4 Cigars, @ I10; 2 Drinks, @ 1CO, (1 for Tom); Bush. Apples, @ 80a. Bought of Mack & Schmid, on %, 1 Pr. Gloves, 8C; 22 Yds. Cassimere, @ $1.40. Self and man have worked for E, B. Pond to-day, @ $2; chg. to %. Paid my man.nis week's wages, 6 days, @ $1.50, by giving him an 'order on Theo. dore Taylor for goods, $3, and Cash, $6. [Our man has rendered us 6 days' service, and as he has not been credited for it, we do not now make him debit for tie order and Cash, because they are just equal to the service rendered; but we do receive from Mr. Taylor a value, paid to our man by our request, therefore we give him credit. Cash is also paid out, and must be ecorded.] Cash balance, $10.29. We will now make a Statement of the condition of our business, to ascertain if we are living within our income. We will first balance the Ledger accounts, according to "Rule 2 for Closing Ledger," and when this is done, we find that E. B. Pond owes us $8; we owe to L. S. Lerch, $7.75; we owe to Mack & Schmid, 640, and to Theodore Taylor, $4.09; Savings Bank owes us $3.70, we have Cash in safe, $10.29- Paint and Oil on hand we estimate at $9; Brushes, $3.50. We now collect, according to "Rules 3, 4 and 5 for Closing Ledger," under the head of Resources and Liabilities, and we have this Statement: Resources. E. B. Pond, bal. due me...................... 8 00 Cash on hand................................ 10 29 Savings Bank, due me....................... 3 70 Paint and Oil on hand...................... 9 00 Brushes on hand........................a. 3 50 Total Resources... 34 49 Liabilities. L. S. Lerch, bal. due him.................... 7 7 Mack & Schmid, bal. due them................ 64 Theodore Taylor, bal. due him...............4 09 Total Liabilities.. 12 48 Deduct Liabilities from Resources and we have Present Capital......................... 22 01 We had at the beginning of the week a Capital of $27 00; and as we are now worth but $22.01, we must have spent $4.99 more than we have earned. 12 Cash. Cah.Dr. Cr. Bal. 00 I 1878. Aug. 5 6 8 9 To amount on hand...................... By 50 tbs. Flour, @ 30; 2 Gals. Kerosene, @ 3010 Deposit in Savings Banik (in place of Cigars). Bal. on hand..............1 2 By I Load Wood, of J. Taylor........... Deposit in Savings Bank (in place of Cigars). "Postage, 480.; Pe~ns and Paper, 500. To 2 days' Painting, @ $2; Paint furnished, $4,.8 Balance................0---0 By Deposit in Savings Banik (in place of Cigars). Balance.............. I By Deposit in Savings Banik........I To 1 day hanging paper tor Prof. Green.. By L. S. Lerch, orn%........ Depos;it in Savings Bank............. 2 lbs. Beef-, @ IM~; 1 Doz. Eggs, 105k; Bread, V~; Ice, -W.... - o.............. To 1 day hanging paper for J. Moore, per check.2 Bialance.. -o-oo...........I By Deposit in Savings Bank....... " Y Bush. Apples, ~ 8W~......... "Paid hired man bal. of week's wages. B.Al. on hand....... 2,5 1 s ( 2510.6 26176 22140 370 2 3 00 00 1 10 10 00 37 29 i 50 06 50 98 50 60 00 00 47 40 00 29 00 17 129 110 B.E. Nichols. Dr. Cr. Awn51ByCasli oPuid.................................. 25 00 Au.5I~Brutshes oa hand................................ 2 00 To Net Loss for the week...............:::99 Balance., or present worth..:: 2e" 27 00 27 00 Bal. dIow~n................- 22 01 Savings Bank. Dr. Cr. 1878.' Aug. 5 To Cash Deposit..........................150 6 '............. 50 1 7 46 ".",.5 o 8 '' ''4........60 9 6' '''6.........1 O9 10 "44...........6 Bal. my duet..........._____ ____ ___ _ t_3"JO 3 __ Bal. down..................... 3 '70 All heavy-faced halancings and addings indicate red ink. 13 E. B.~ Pond.1 Bi~v~ 1878. Aug. 5 To 2 days' Painting, self and man, @ $2...4... 4 00 4 00 `10 ":2 "' ( "c "t @$2.~~~~ ~4 Bal. down..............................8 00 L. S. Lerch. Dr. 1878. Aug. 9 To Cash on........................ 10 00 Bal. his due............... Theodore Taylor. Dr. 1878. Aug. 8 To 1 day of man, Painting............................2 00 9 "1 " " 2 00 Bal. his due........................4 09 I PS 09 Maci & Schmid. Dr.e~ 187 Aug.7 ~-----~--- To 2 days' labor, Painting on Store, @ $2........... P Paint and Oil furnished...........0a0a00.. 0 4... Bal. their due...................... ~----- We did not know, until we made this Statement on page 12, that we were living beyond our income. And this often happens in real business. A young man starts in some business and thinks he is doing well, but before long lie finds himiself unable to pay his obligations, and makes an assignment. This shows the importance of making these statements often. 14 E. B. Pond. Cr. L. S. Lerch. 1878..Aug. 5 By 100 lbs. Pittsburg Lead, @, 109'............ 10.00 116 Gals. Oil, @ 700'; 2 lbts. Burnt Umber, @ 259'... 4 70 6 11 2 Paint Brushes, 1 @ 90, 1 @ $1.20. 9 " 1 lb. Yellow Ochre, 209'; 1 Gal. B. Oil, 750....... Bal. down.................. 14 70 2 10 95 17 75 7 75 Theodore Taylor. Cr. 1878. Aug. 6 By 10 lbs. Sugrar, ~ 109'; 3 lb5s. Coffee, @ 30........ 1 90 5 lbs. Rice, @ 99'; 2 lbs. Prunes, @ 159'.. 75 2 65 7 1 1 Gal. Syrup, @ $1.20; 2 Qts. Berries, ' @12'2'. 985 64 1 lb Corn Starch.............................. 15 I 1 00 8 " 1 Bush. Potatoes, 809'; 12 Gal. Vinegar, @ 209'..90 9 " 1 lb. Soap, IO9; Berries, 249'; Raisins, 209... %54, 10 " Paid order to hired man......................... 3 00 S 90 Bal. down........................4 409 Mack & Schmid. Cr. Aug. 5 71 11o By 12 Yds. Calico, @ 89'; 4 Spools Thread, @ 49'.... 466 Yds. Bleached Sheeting, @ 129; Needles, 109.. 46 2 Pair Hose, @ 259; 4 Hdkf's. @ 209'....... 6t 1 Yd. Linen, 509; Buttohs, 109'............. 64 1 Pr. Gloves, 809'; 21 Yds. Cassimere, @ $1.40.. 1 12 82 30 60 1 1 4 8 94 90 30 141 64 Bal. down................... If this course should be followed during the year, we will spend $259.48 more than we earn. And if we had spent the $3.70 which is now in the Savings Bank, for cigars and liquor, this would have added $3.70 to our expenses each week, or a total of $l92.40. This is a small estimate for that purpose, as many persons spend more than twice that amount.] 15 HISTORY OR TRANSACTIONS. We w;..1 now f ollrow this work another week, and at its close make another Statement. Monday, August 12.,Bought of T. Taylor, on %, 5 lbs. Cracked Wheat, @ 3~; 5 lbs. Oat Meal,@; 4 lbs. Butter, i 1.2~; 1 Basket Peachies, $1. Paid Cash for 6 Cigars, @ 10~; 3 Drinks, @ 10~. Self and inan have worked for B. B. Pond to-day, @ $2 each. I have settled with him., by Qu'2&scribing for the Argus for one year, $1.050, and he pays rae Cash for the batancee my due, $10.50. Cash balance, $19.89. Tuesday, August 13. Paid Cash for Beef, 16~; Craickers, 8~; Melon, 150,; 1 Pail, 75~; Dipper, 25~. Bogtof L. S. Lerch, on %, 1 Smiall Brush, 20~; 1thl. Burnt Umber, 25~; 1 Gal. Oil, 70~,. Paid Cash for 5 Cigars,@ 10~; 2 Drinks, @1/ Boucrht of M~ack 4k Schm-id 112 Yds. Tlable Linen, @ 40~; 4 Yds. Toweling, @ 8~. I have worked for them to-day, $ 2; furnished Paint, $2.00. Myman h- s workced for Ti. Taylor, @ $2; furnished Paint for the job, $-7.809. Cash balance, $17.80. Wednesday, August _14p. Bought of L. S. Lerch, onilc Qt. Turpentinei, 20~;!/2Gd. Varnish, @ $4. Paid Cash for 0 Cigars, @ 10~; 2 Glassaes Beer, @ fl.; Express, 25~,; Detroit Daily, 5~. My man has pDainted for TI. Taylor 12 day, @ $2, and for -Mack & Sebmnid 12 day, @ $2. I have done several little jobs, and have received Cash for the same, $2.20, and for Paint furnished, $2.40. Cash balance, $21.40. Thursday, August 15. Paid Cash for 5 Cigars, @ 10e,.; 2 Glasses Brandy,@ 10~; 2 Boxes Matches, @ 8~; Pins, 10~; Needles, 10~; Beef, 16/. \Boug-ht of L. S. Lerch, on %, 100) lbs. Lead, @ 9%/ý; 3 Gals. Oil, @ 08~; 1 lb. Burnt Sienna, 25Y,. My man has painted small house for James Wood, 20 feet by 18, feet, and 18 feet higrh,.@ 6~ per sq. yd., I furnishing the mnaterial. Received Cash in payment,$.. I have papered two rooms for John Wilson, and received Cash In payment, $2.50. Cash balance, $31.80. Friday, August -16. Bougrht of Theodore Taylor, on 9/c, 2 lbis. Pulv. Sugar, @ 110; 1 lb. Crackers, 8~. Paid Cash for- 6 Cigrars, @ 10~; 2 Glasses Beer,@5. 'Paid L. S. Lerch, Cash on %/, $15. My man has painted for Theodore Taylor Y day, @ $2; ehg. to 9c I have painted for Prof. Green, at $2. Man helped 'Y day, @ $2. I furnished paint, $4, and received Cash in payment, $6.50. Cash balance, $22.60.,Saturday, August 17. Bought of Mack. & Schmnid, on %, 4 Yds. Coat Binding, @ 10/; Y2Doz. Buttons, @' 40~. I have settled with them, and received their check. to bal. %,$.. 16, HISTORY OR TRANSACTIONS. Paid Cash for 5 Cigars, @ 10t; 4 Glasses Beer, @ 5Y. Bought of J. F. Schuh, ' Doz. Knives, @ $1.25; 1 Pocket Knife, 600; paid Cash for same. Bought of L. S. Lerch, on %, 100 tls. Lead, @ 9%/3; 6 Gals. Oil, @ 68. Self and man have painted a house for N. Waterman, @ C# per sq. yd., furnishing my own paint. Size of main part, 20 by 22 feet; studding 22 feet high, with square roof. Wing, 18 by 18 feet; studding 18 feet high. Allow 40 yds. extra for corAice, and deduct 20 yds. for windows. Received pay in Cash. [Measure but two sides of the Wing, as one end is agains, the main part, and of course is no, paintea; and it also covers as much of the main part as the size of the other end of the Wing.] Paid Cash for 1 Basket Peaches, $1; 1 Hat, $1.20. Paid my man his wages, 6 days, @ $1.50, in @ash. Cash balance, $30.76. The student will now make a Statement, as before, according tc ' Rules 2 and 3 for Closing Ledger." If the records have all been correctly made, the balance of Cash will be $30.76; bal. of T. Taylor's %, $5.96, our due L. S. Lerch. $21 97, h:s due- Savings Bank,.$8.10, our due; Paint and Oil on hand, $4.20; Brushes, $3. When these are classified, we have the following Statement, made August 18, 1878. Resources. Cash, balance on hand....................... 30 76. Taylor, bal. my due....................... 5 96 Savings Bank, bal. my due................ 8 10 Paint and Oil on hand....................... 4 20 Brushes on hand............................ 3 00 Total.............. 52 02 Liabilities. L. S. Lerch, bal. his due................... 21 97 Present Capital.................... 30 05 Commenced week with............. 22 01 INet Gain.................... ~ 04 We find that we have this week saved out of our earnings, $8.04. If we could do this each week, it would amount to the snug little sum of $413.03 during the year. But those of the class, if any, who credited cash for Cigars and Liquor each day, instead of depositing it in the Savings Bank, will find their resources $8.10 smaller and consequently so much less gain, during the two weeks. This would amount to 5;210 for a year INTRODUCTORY-SET SECOND. The following transactions are those of a Blacksmith, and are to be written with debits and credits on same page; left-hand column Dr., right-hand Cr. The studen will make this his own business, anct open the account, according to " Ruies i and 5ffor Opening Books." 17 HISTORY OR TRANSACTIONS. Monday. Aug. 19, 1878. I have the followiag property at the beginning of business: Tools and Implements valued at $120- Household Furniture, as per Inventory, $311.50; Cash on hand, $75. I have rented a shop of Luther James for $52 per year, to be paid weekly in advance as per Contract made this day, and I have paid the first week's rent in Cash, $1. Bought of C. Eberbach & Son. on %, 200 ls. Bar Iron, @ 21/'; 50 tbs. Round Iron, @ 2'f; 10 lbs. Horse-shoe Nails @ 160; 1 Ton Coal, @ $8. I have set the Tire on J F Nichols Buggy, for which I charge $2; set 2 Shoes.oon his Horse @ 25 - charged to % I have sharpened 6 Cultivator Teeth, @ 5/, for which I receive Cash. Bought of Rinsey & Seabolt, on %, 10 lbs. C. Sugar, @ 10/; 50 lbs. Flour, @ 3; 5 lbs Rice @ 10;, and have set 4 Shoes on their Horse, @ 25/; repaired Wagon, 5;0. Paid Cash for Postal Cards, 25f; Stamps, 30/; and have deposited in National Bank, $50. Cash balance, $23.75. Tuesday, August 20. I have set 4 Shoes foi H. Hurd, @ 25.i; sharpened 30-Harrow Teeth, @*4/; for whicl hel pays me Cash. Bought ot Samuel House, on %, 1 Bush. Potatoes, 753; 1 Doz. Sweet Corn, 15/; 1 Peck Peas, 30/. I have set the Tire on his Wagon, $2; set 1 Shoe on his Horse, 253. Bought of C. Eberbach &'Son, on %, 100 Ibs. Horse Shoes, @ 4Y2; 200 Carriage Bolts, @ $1.60 per 100; 200 do. @ $1.25 per 100; 50 lbs. Steel Corks, @ 8/. Paid Cash for Atlantic Monthly, 35/; Free Press, 5ý; Express, 35/; Orange, 5/. I have set 4 new Shoes for John Sperry, @ 45/; shaer'ned Cutter, 10/; repaired Wv agon, 50; for which he pays me Cash. Cash balance, $27.55. Wednesday, August 21. Bought of Bach & Abel, on %, 1 Table Spread, $1.50; 1 Doz. Napkins, $1.20; Y2 Doz. tHdkfs. @ $1. Bought of Rinsey & Seabolt, on %, 2 lbs. Coffee, @ 30/; 1 Gal. Syrup, 90/; ltb. boda @ 120; Y lb. Spice, @ 160; 1 Doz. Eggs, 10# I have ironed a Neckyoke for Wm. Green, $1; mended Chain, 10/; set 2 Shoes, @ 45V; for which he pays Cash. Paid Cash for Detroit Daily, 5/; Harper's Weekly, 10,. I have set the Tire on A. V. Robison's Hack, $2, and on 1 Buggy, $1.75; 4 Shoes, @ 25V: 4 new do. @ 45W, not paid for. Cash balance, $29.40. Thursday, August 22. Bought of Samuel House, on %, 1 Bush. Apples, 600; 1 Doz. Corn, 120; 1 Melon, 100. I have sharpened for him 5 Cultivator Teeth, @ 5ý/; set 2 Shoes, @ 45/. Sold to Wm. Howard, for Cash, 1 set Whiffletrees, $4.50; 1 Clevis, 30/. I have set 4 Shoes, @ 25/, for James Wood, for which he pays Cash. Bought of Rinsey & Seabolt, on c, 1 Peck Peaches, $1; 1 Ib. Corn Starch, 153; 2 lbs. Crackers, @ 8/; 1 Doz. Biscuit, 10/. I have set the Tire on their Wagon, $2; put in new Bolts, 40/. 18 HISTORY OR TRANSACTIONS. Paid Cash for Free Press, 5V. Cash balance, $35.15. Friday, August 23. Bought of Wines & Worden, 15 Yds. Carpet, @ 909; 2 Yds. - Oil Cloth, @ 40P square yd.; paid for same by check on National Bank. [No account with Wines & Worden, but the Bank pays to them our money, therefore it must be credit.] I have set 8 new Shoes for A. V. Rohison, @ 45.; repaired Buggy, $2.50; chg. to 6%. Deposited in National Bank, Cash $25. Bought of Samuel H-ouse, on %, 1 Peck Peas, 309; 12 Peck Tomatoes, @ 509. Paid Cash for 1 ceam Paper, 609/; Envelopes, 1C; Post and Tribune, 5,/. Cash balance, $9.40. Saturday, August 24. Bought of Bach & Abel, on %, I Pr. Gloves, 75W; 10 Yds. Dress Trimming, @ 209; 1 Collar, 509; Buttons, 209; Dress Braid, 109; 2 Yds. Cambric, @ 10~; paid them cash on %, $5. I have set 2 Tires, @ 509; 2 Shoes, @ 30C; 2 do. @ 450; and received Cash. I have set 4 Tires, @ 509, for Eberbach & Son; 2 new Shoes, @ 459; 6 old do. @ 250; and have given them my check on National Bank for $15, to apply on %. Bought of them 2 sets Buggy Springs, 70 lbs., @ 129; 2 Files, @ 309; 1 Hammer, 809. Bought of Rinsey & Seabolt, on %, 4 Lemons, @ 49; Bread, 79. Received of A. V. Robison, Cash on %, $10. I have set for J. F. Nichols, 2 Shoes, @ 259; 2 do. @ 459; 4 Tires on Wagon, @ 509; charged to %. Paid Cash for Free Press, 5V; Chicago Tribune, 59. Cash balance, $16.80. The student will now make a Statement, to show the condition of the business. The Tools and Implements are valued at $120; Household Furniture, @ $322; Iron, etc., on hand, $20.50; and if the records have all been correctly made, the balances of the Ledger accounts will be as follows: C. Eberbach -&A.S.on, due them, $16.45; J. F. Nichols, due me, $5.90; Rinsey &- Seabolt, due them, $2.48; Samuel House, due me, f9; Bach & Abel, due them, $1.95; National Bank, due me, $45.30; A, V. Robison, due me, $2.65. Cash on hand, as per balance of Cash %, $16.80. Classify these, and we have Resources, $533.98; Liabilities, $20.88. We now deduct the Liabilities from the Resources, and we have as Present Capital, $513.20. We had on commencing, $506.50; therefore we must have gained the difference, or $6.60. If we save this sum each week, it will amount in one year to $343.20. [The student will make a Statement in table form, as before.] INSTRUCTIONS FOR WRITING SET FIRST. In this Set is presented the common form of Single Entry. It represents a Retail Dry Goods and Grocery business, and is divided into two parts. The first part represents an Individual or Stock business, with the student as proprietor. The second part is a Partnership. BOOKS DESCRIBED. The Books used are the JOURNAL or DAY Boox, the CASH BooK and the LEDGER. The Journal differs from the common form, in having three money columns; the first is used as an Item column; the second for the adding of the items of each account, 19 HISTORY OR TRANSACTIONS. whether debit or credit; the third is a Sales column, and contains all sales of Mdse. thus obviating the necessity of another book to show the Mdse. Sales. (See model.) The figures in the left hand margin, show that the account has been transferred to the Ledger, and indicate the page of the Ledger to which it is transferred. The JOURNAL will contain all personal accounts recorded at the time, and in the order of their completion. In the Journal will be recorded, all transactions in which an equivalent is not rendered, at the time the transaction takes place. The CASH BOOK is a simple and common form with Dr. and Cr. on the same page, (they may be on opposite pages) and it is to be balanced at the close of each day's business. To balance a Cash Book, find the difference between the Dr. and Cr. columns, and write it in the Cr. column, in red ink, with the words, Balance on hand, before it; draw lines and place the addings, to show the account equal, then bring down the balance in the Dr. column. The LEDGER is for the purpose of collecting and condensing each person's account from the Journal, on a page by itself, with the debit entries on the left side, and the credit entries on the right side of the page; that we may readily determine the condition of each account. To Balance a Ledger account, find the difference between the two sides of the account place it on the smallest side in red ink, writing the word Balance before it; draw lines and place the addings, and under them bring down the balance on the opposite or largest side. The student should carefully and thoroughly study the Illustrated forms of Journal, Cash Book, and Ledger, that immediately follow the History, and compare them with the History, before attempting to write up the work. The Illustrations are purposely brief; the plan of the work being to teach Principles, and require the student to apply them in writing up the transactions given in the History. The Statement given at the close, shows the results of the work. The INVOICE BOOK contains all the Bills of Goods Bought; copied in the ordcr of their purchase under their proper headings; and in many Houses it is a blank unruled book, in which the bills are pasted. Another book is also used to record the Inventory of Mdse. on hand at the close of the year, It seems hardly necessary to Illustrate these Books. HISTORY OR TRANSACTIONS. Monday, September 2, 1872. I commence Business with Cash $1000. Mdse. per Invoice Book, $2500. [See Journal, p. 14, and Cash Book p. 25]. Sold to A- J. Sutherland, on %, 8 Yds. Merino, @ $1.25; 4 Yds. Alpaca, @ 750. [See Journal, p. 24]. Sold to Geo. M. Henion, on %, 20 Yds. Carpeting, @$1.80 2 Pieces Binding, @ 40W; and Bought of him, 40 lbs. Butter, @ 25#., Paid Cash for Stationery, $4.00; Blank Books, $16.00; Express Charges, 75, Cleaning Store, $3.00. [See Cash Book, p. 25]. 2) HISTORY OR TRANSACTIONS. Deposited in National Bank, Cash, $800. [Fill out a Deposit Check-see form on page 26]. Bought of James C. Smith, on %, (and for Store) 2 Cords Wood, @ $6.00; and Sold him 100 lbs. Sugar, @ 14; 10 lbs. Coffee, @ 35V. Sold to J. M. Wheeler, on aT, 12 Yds. Silk, @ $3.00; 10 Yds. Alpaca, 75; 12 Yds. Delaine, @ 50Y; and received of him Cash on %, $15. [Write a Receipt for Mr. Wheeler-see form on page 33]. The Cash Sales of Mdse. this day, amount to $75.50. [Enter all the Cash Sales in both Journal and Cash Book-see models]. Tuesday, September 3. Sold to W. W. Whedon, on %, 40 Yds. Sheeting, @ 16; 4 Yds. Summer Cassimere, @ $1.50; Buttons, 20; Thread, 300. Paid Cash for Cartage, 75ý: Gas Bill, $10.00. Bought of Geo. M. Henion, on %, 20 Bushels Apples, @ 80; 10 lbs. Butter, @ 20, and Sold him 50 lbs. Sugar, @ 14P; 1 bbl. Salt, $2.00. Received of A. J. Sutherland, Caslh 'on %, $10.00; and Sold him 40 Yds. Brown Sheeting, @ 18; 10 Yds. Empress Cloth, @ $1.00; Silk, 30; Thread, 205. [Give Mr. Sutherland a Receipt]. Bought of Stephen Mills, on %, 80 Tbs. Butter, @ 20k; 4 bbls. Apples, @ $2.50; and Sold him 50 Ibs. Sugar, @ 14; 4 lbs. Coffee, @ 350. Paid Cash for Postage, $1.00; Box Rent, 500. Cash Sales of Mdse. this day, $86.40. Wednesday, September 4. Paid J. M1. Wheeler's Written Order, in Goods, $10.00. [Mr. Wheeler here receives value through anothei person, and is Dr.-write the Ordersee form on page 33]. Sold to James C. Smith, on %, 10 Yds. Cambric, @ 12ý; 6 Yds. Bleached Muslin, @ 19; Thread, 20; Buttons, 10; and Bought of him 40 lhs. Butter, @ 20; 50 lbs. MTaple Sugar, @ 20A. Sold to W. W. Whedon, on %, 25 Yds. Brussels Carpeting, @ $2.50; 2 Pieces Binding, @ 40; 4 Yds. Oil Cloth, @ $1.50. - Bought of Wm. Jones, for Cash, 20 Bushels Corn, @ 40k, (for feed of Horse). Loaned to A. J. Sutherland, for one Day, Cash, $200.00. Cash Sales of Mdse. this day, $140.68. Thursday, September 5. Paid Geo. M. Henion's Written Order, in Goods, $5.50. Bought of Wilder, Case & Co., of N. Y., on %, 30 days, Mdse. per Bill received, $150. Sold to Joseph Wilsey, on %, 10 Yds. Delaine, @ 50; 1 Pair Gloves, $2.00; 1 Shawl, $8.00; 1 Table Spread, $1,80. 21 IISTORY OR TRANSACTIONS. Deposited in National Bank, Cash, $200.00'6 [Fill Check]. Paid Cash for Clerk Salary, $60.00. Received of W. W. Whedon, Cash on %C, $50.00. Cash Sales of Mdse. this day, $170.40. Friday, September 6. A. J. Sutherland has returned the money loaned to him on the 5th, $200.00. Bought of Wm. Thomas, Mdse. per Bill, $150; and paid for same, by Check on National Bank. [Fill out Check-see Check Book, p. 371. Sold to James C. Smith, on %, 30 Yds. Carpeting, @ $1.60; 2 Yds. Broad Cloth, @ $5.00; and received of him, Cash in full of % to date, $........ The student will ascertain the amount due from Mr. Smith by reference to his Ledger account. Give him a receipt in full. Bought of Finley & Lewis, for Cash, 1 Pair Shoes, $3.00. [For Private Account]. Sold to Stephen Mills, on %, 1 Shawl $20.00; 1 Pair Gloves, @ 75W. Bought of him 10 Bushels Apples, @ 80/. Paid Cashjo-r Traveling Expenses, $4.00; Postage, $1.00. Cash Sales of Mdse. this day, $195.00. Monday, September 9. Sold to J. M. Wheeler, on %, 14 Yds. Calico, 12Y; 4 Pair Hose, @ 50; 100 lbs. Sugar, @ 21 2. Bought of Joseph Wilsey, on %, 40 Bushels Apples, @ 30/; 20 Dozen Eggs, @ 14; and Sold him 50 lbs. Sugar, @ 12Y; 5 lbs. Coffee, @ 35/. -Paid Cash for Drayage, $1.00; Freight on Goods, $5.00. Deposited in National Bank, Cash, $400.00. [Fill Deposit Check]. Paid Stephen Mills' Written Order in Goods, $4.50. Bought of him 20 lbs. Butter, @ 16; 50 s. Cheese, @ 16/. Sold to W. W. Whedon, on %, 10 Yds. Silk, @ $1.80; 4 Yds. Cambia, @ 12Y; and gave him an Order on Wines & Worden, for Goods, $10.00. [Mr. Whedon receives value in the Order, therefore Dr. for it; Wines & Worden produce value by paying it, therefore Cr. for it; write the Order]. Paid Cash for Insurance, $9.00; and gave as Charity, $1.00. Cash Sales of Mdse. this day, $250.40.j Tuesday, September 10. Paid my Clerk (Henry Bennett) his month's wages, by Check on Bank, $50.00. [Fill the Check]. 22 IIISTORY ORi TRANSACTIONS. Received of J. M. Wheeler, his Check for $30.00, to apply on his %. [Checks received are entered the same as Cash]. Sent to' Wilder, Case &Co., of N. Y., a Draft on New York, for the amount their due on %, $150. I purchase the Draft at National Bank, and give them my Check for the amount, $150. [Fill the Blank Draft and also the Check]. Bought of Joseph Wilsey, on %, 80 Bushels Apples, @ 30Q. Sold him 40 lbs. Sugar, @ 125; 10 lbs. Coffee, @ 30; 1 lb. Tea, $1.25. Paid Cash for Drayage, $1.00; Express Charges, 75f, Cash Sales of Mdse.\this day, $190.75. Wednesday, September 11. Sold to Charles T. Henion, on %, 2 Yds. Beaver, @ $6.00; 1 Set Sack Buttons, $1.50; 1 Pair Gloves, $1.25. Sold to W. W. Whedon, on %, 4 Dozen Eggs, @ 14; 20 lbs. Butter, @ 18; 12 Yds. Empress Cloth, @ $1.00V and received of him an Order on A. J. Sutherland for $20.00; which is accepted and passed to Sutherland's %. [A J. Sutherland owes us for above Order, and is made Dr]. Bought of James C. Smith on %, 1 Cord Wood, $6.00. [For Home Use]. Bought of John W. Thompson, 20 Bbls. Apples, @ $1.00; paid for same by check on Bank, $20.00. [Fill the Check]. Paid Cash for Repairing Store, $12.00; Postage, $1.00. Received of J. M. Wheeler, Cash on %, $20.00. [Give Receipt], Cash Sales of Mdse. this day, $225.60. The Books are now to be Balanced, and a Statement of Resources and Liabilities made, showing the Net Gain, which is to be entered to the credit of the Proprietor, in the Journal, and passed to his Ledger %. This % will then show the Present Capital. An Inventory of Mdse. on hand has been taken, which amounts to $1600.00. This amount and the amount of money on hand as shown by the last Balance of the Cash Book, and the amounts due to the Proprietor on Ledger accounts, make up his Resources. The Liabilities consist of the balance of those Ledger accounts in which the Cr. is larger than the Dr. The difference between Resources and Liabilities gives Present Capital. From this sum deduct the Invested Capital, and you have the Net Gain. The form of the Statement is illustrated on the page following the Ledger. The Student is expected to bring out the same results. These statements are usually made in actual busines, but once a year, unless some change is to be made in the business, such as forming or dissolving a partnership. 23 JOURNAL. Ann Arbor, Monday, September 2, 1872. Ledger Page. Items. Total. Sales. 1 B. E. Nichols,....................r.. By Cash per C. B., p. 1................... 1000 00 Mdse., " I. B......................... 2500 00 3500 00 [Student will use his own name]. 1 A. J. Sutherland,.............Dr.. To 8 Yds. Merino, @..................$1.25 10 00 " 4 " Alpaca, @...................75 3 00 13 00 13 00 1 Geo. M. Henion,................... Dr.../ To 20 Yds. Carpeting, @............. $1.80 36 00 2 Ps. Binding, @.....................40 80 36 80 36 80 Cr. 1 By 40 bs. Butter, @.....................25 10 00 1 National Bank,....................Dr.. / To Cash Deposited per C. B.,............... 800 00 James C. Smith,...................Cr.. By 2 Cords Wood, @....................$6 12 00 Dr. To 100 lbs. Sugar, @.................14. 14 00 " 10 lbs. Coffee, @..................35/ 3 50 17 50 17 50 J. M. Wheeler................. Dr.. To 12 Yds. Silk, @.......................$3 36 00 " 10 " Alpaca, @....5.......... 75 7 50 " 12 " DeLaine, @..................50 6 00 49 50 49 50 Cr. By Cash on above.......................... 15 00 Cash Sales for the day, C. B.... I 75 50 -------Tuesday, September 3. W. W. Whedon,..................Dr.. To 40 Yds. Sheeting, @...............10. 6 40 " 4 " Summer Cassimere, @......$1.50 6 00 " Buttons, 20/; Thread, 30................. 50 12 90 12 90 1 Geo. M. Henion,...............Cr.. / By 20 Bush. Apples, @.............. 80/ 16 00 t 10 lbs. Butter, @.............. 20 2 00 18 00 1 Dr. / To 50 lbs. Sugar, @.....................14/ 7 00 " I Bbl. Salt,.................... 2 00 9 00 9 00 1 A. J. Sutherland..................Cr.. V By Cash on /,.............................10 00 -- - Carried Forward,... $214 20 24 CASH BOOK. Cash. Dr. Cr. 1872. To amount on hand or invested,............... 1000 00 By Stationery. $4; Blank Books, $16,.............. 20 00 Sept. 2 "Express Charges, 75; Cleaning Store, $3,...... 3 75 SDeposit in National Bank,-see Journal,*....... 800 00 To J. M. Wheeler, on %, " "...... 15 00 ( Mdse. Sales,-taken from sales drawer,.......... 75 50 Balance on hand,............. 266 75 1090 50 1090 50 3 Balance brought down,........ 266 75 By Cartage, 75; Gas Bill, $10,..................... 10 75 To A. J. Sutherland, on,..................... 10 00 By Postage, $1; Box Rent, 50.................... 1 50 To Mdse. Sales,-sales drawer,.................... 86 40 Balance on hand,............ 350 90 - ----- ~ 363 15 363 15 Balance down,............... 350 90 *In many houses no entry is made on the Cash Book when money is deposited in the Bank; it being regarded as money on hand; and in balancing the Cash Book the amount in Bank and the amount in Safe is the balance on hand. When Checks are given on the Bank the Cash account is credited and the amount passed to the credit of the Bank also, on the Bank Book or Check Book. But according to the above method, we credit Cash when we make a deposit, and only credit the Bank when Checks are given on it. The Cash account is proved in actual business each day, by counting the money in the Safe to see if it agrees with the balance called for by the book. 25 LEDGER INDEX A. A. E. I. Adams, Wm. A.,..... 4 Allen, James,......... 6 Aikin, James........ 2 2 3 Ames, Geo.,......5, 8, 16 ----~ 'I-~--~--~- --- I B. A. Barton Thos.,.....10, 14 Bank, First Nat.,...2, Bank, First Nat,.. 2, 8 E. Bennett, H. D.,....... 9 Belden, John,....... 4 I. Binder, Henry,....... 7 Brittan, John,........ 6 -- ----~---~ C. A. Clark, John T.,.....14 Cash........... 6, 2 Cash,,..........1, 16, 20 E. Clements, James,.... 2 Cheever, W. H.,.... 21 I. Crittenden, J.,..... 13 Chittick, Chas.,...... 17 "------ ~-~---^ -- INDEX TO LEDGER.-EXPLANATION. It is more convenient to have this as a separate book, although it is often put in the front of the Ledger. Where names are numerous it is very important to have them so classified that they may be found without loss of time. The form here given, classifies according to the first vowel in the surname, thus indicating the column in which it may be found. For a large Ledger, one or more double pages should be allowed for each letter of the alphabet, divided and lettered as in the given model. The names used here do not belong to the Ledger, but are selected simply to illustrate the different columns. As soon as the name has been entered in the Leger, it should be also entered in the Index, and after it the figure denoting the page on which it is entered in the Ledger. If a name is transferred forward to a new page, place the number of the page in the Index also, after the first figure, with a small figure 2 above the page figure; this denotes the order of entry in the Ledger. 26 REPRESENTING THREE DOUBLE PAGES. 0. U. Y. Ashford, John,....12, 18 Austin, John,........ 9 0. U. Y. Brown, James,...... 11 Butler, John,....... 12 Bryant, John,........ 18 Brooks, E. G.,....... 15 Buckley, James,...... 9 0. U. Y. Commission,........ 13 Culver, Geo.,..... 10 Crysler, Geo.,........ 22 Crosman, Chas.,..... 15 Cushman, James,.... 19 9T LEDGER. Student. Cr. Dr. A. J. Sutherland. Ceo. M. Henion. 1872.182 Sept. 2 T Mdse.... 1 36 80 Sept. 2 By Butter... 1 10 00 5 " Paid- Order. 5- 50613 51 30 Balance, 230 --__51 30 Balance down, 23 30 1I National Bank. 1872. 1872. Sept. 2 To Cash.... 1 800 00 Sept. 6 By Paid Check, 150 00 5 4" 4..... 200 00 10 4" "4 "450 00 90 t4 14400 00 44 "4 "6150 00 '' '' ''20100 28 STATEMENT. The following Statement shows the true balance of each Ledger account, also the final balance of the Cash Book of the preceding History; and will enable the Student to determine his own success or failure in writing up the set: Statement made September 12, 1872. Resources. A. J. Sutherland.......................... 1 40 70 Geo. M. Henion......................... 1 23 30 National Bank............................. 2 1030 J. M. Wheeler........................... 2 10 75 W. W. Whedon........................... 3 56 86 Chas. T. Henion.............................. 4 14 75 Cash on hand, per C. B...................... 2 965 17 Mdse. unsold, " I. B....................... 1600 Total..................... 3741 53 Liabilities. James C. Smith........................... 2 6 Stephen Mills............................... 3 11 55 Joseph Wilsey........................................... 4 4 95 Wines & Worden......................... 4 10 Total..................... 32 50 Present Capital.............................. 3709 03 Invested Capital.......................... 3500 Net Gain...................................... 09 03 ----~----- SET FIRST CONTINUED.-PARTNERSHIP. Monday, September 16. The Books have been closed and the foregoing Statement made for the purpose of forming a Partnership. The Student is now to receive B. E. Nichols as a Partner, who is to bring into the business a Capital equal to that shown in the Statement just completed" He therefore invests Mdse., per invoice, $1500; a Note against Lyman Wood, dated May 20, 1872, for four months, payable at National Bank, $1000; and the balance in Cash, $........ [The new Partner must be credited Ior his investment, and his Cash entered in the Cash Book under the balance down of the former business. The Note must be recorded in the Bill Book; see Illustration. Write the Note and keep it till paid]. Sold to A. J. Sutherland on %, 40 lbs. Butter, @ 25; 50 lbs. Sugar, @ 14k; and paid his Written Order in Goods, $5. We have deposited in National Bank, Cash, $1500. Loaned to Wm. Jones $100, and received his Note due in thirty days for the same, indorsed by C. H. Millen, and payable at National Bank. [Enter the Note in the Bill Book. Write the NoteJ. Sold to Geo. M. Henion on %, 12 Yds. Calico, @ 12; 8 Yds. Alpaca, @ 75; 40 lbs.; Sugar, @ 1221. Paid Cash for Store Rent, $100.