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In its judgement, fulfillment of the order would involve violation of the copyright law. Author: Duff, Peter Title Duffs book-keeping, by single and double entry Place: New York Date: 1871 ■aVO^MaW «*n* q3-'g;i?fiS--| MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 420 D873 WONTSOMEUr Duff, Peter, 1802-1869. Duff's book-keeping, by single and double entry. Prac- tically illustrating merchants', manufacturers', private bankers', railroad, and national bank accounts ... By P. Duff ... 20th ed., enl. and rev. New York, Harper & brothers, 186&. 1871. i39a pr- illus. (forms) 25**". 400 p. Pages 399-400 conaist of advertising material. 1. Bookkeeping. /^ 6-33126 Library of Congress HF5635.D86 RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE: 3SvY\m REDUCTION RATIO: ^^K IMAGE PLACEMENT: lA ( IIA; IB IIB (^ DATE FILMED: TRACKING # : 3- ;?^-^s INITIALS: :^ A^SJ!/ 0*/€3C, FILMED BY PRESERVATION RESOURCES. BETHLEHEM. PA. .^ a? 3 3 cr o > o 3 I 5az go \(T>X OOM ID O ^0 '* Of 3 3 > 0,0 o m OQ Old ^ ^ o o 00^ -0 < —y N X M .'V' a'^ ^, ^^ a^ ^ %p:' ^^: 'V* lO o o 3 3 > o 3 3 S?.' > .a^ A; ^, .* a? x"*^ o o 3 3 O v^^^^^^%^ - 1^ life o 00 o ro rs3 bo K3 en 1.0 mm 1.5 mm 2.0 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdetghi|klmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyzl234567890 ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 X^ ■^o k-vT 2.5 mm ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 1234567890 V <^ ^ & 'b ^^ ?c^ fp ^^ ^ '^. '^A. r^ m 'A -^ m \^o ^^ fc? ^Sp fp 'f^ m H O O "o m Tj > C CO I TJ ^ 0(/) 5 m 3D Q m ■i^. €$ ■^ ^ •-• M (J1 3 3 ^ > li P if ^1 ^-< 8 3 3 11 Vl^A M M3>- .^^ 3>^7rO T>^^^ LIBRARY Retool o! ^us^metftf W^t iiflontgomerp Hilirarp of iSiccountancp 9k* 7k M^^/ O txhool of Business Libiarf Columbia University tICT 1 3 1945 Mont^yomery Library «f Accountancy t'" , i\ ^ DUFF'S BOOKKEEPING. BY ^ino^lc anb double ®nirg» PRACTICALLY ILLUSTRATING MERCHANTS', MANUFACTURERS', PRIVATE B ROAD, AND NATIONAL BANK ACCOU INCLUDING ALL THE LATE IMPROVEMENTS I ERS', RAIL SCIENCE. ^^atith: ^ ooiPiOTJS iisrnDEx:. By I>. duff. FORMERLY MERCHANT, FOUNDER ANT) PROPRIETOR OF DUFF's MERCANTILE COLLEGE, OF PITTSBURGH, PA. ■■'I * i . « Ii€t no man enter into business while ho ie.igqorar/t of the nio.nher ^f *-f^{,ul ttlng books. Never hit him imagine that any de- gree of natural ability will supply the deficiency, or preserve multiplicitv of affairs ^ron inextricable confusion.— Db. Jomrsoir. , t * » * '.' ' % t, t -' 'I TWENTIETH EDITION, ENLARGED AND REVISED. NEW YORK: HARPER & BROTHERS, PUBLISHERS. FRANKLIN SQUARE. 1870. Ir I DUFF'S BOOKKEEPING. Mcnl/^oi'^ery Library of Accountancy 9 Entered according to Act of Congress, in the year 1867, by P. DUFF, in the Clerk's Office of the District Court of the United States for the Western District of Pennsylvania. .,^ Blank books, ruled complete to match this work, manufactured by R. C. ROOT, ANTHONY & CO., Stationers and Account-Book Manufacturers, 21 Nassau Street, New York. These books are made of fine extra size-paper, with the author's directions to teachers printed upon each cover. STEREOTYPED BT MACKELLAR, SMITHS * JORDAN, PHIIJU>ELPHIA. • • • .' • • • • • ■ • • • • • • • • • • •• ; : '•• .. .: \ ; : • •• : • • •-•. : ..: •• • v:. ; • • • • •• • • , • • ••«••• : ..: : vJ \ > « i6 » REMARKS UPON THE TWENTIETH EDITION. The early editions of this work were the result of nearly twenty years' accumulated experience in American and European commerce; and there is no undue assumption in asserting that it introduced improvements in Commercial Education previously un- known in schools. Experienced business men in all quarters promptly sanctioned these improvements ; and the Legislature of Pennsylvania recognized the public value of them, in promoting the ends and purposes of Commerce, by granting the author an Act of Incorporation, with perpetual Charter, for establishing one of the first Commercial Colleges in America. The- favorable reception and extensive sale of the former impressions, have induced the author to prepare a new, revised and enlarged edition, in which he has spared neither labor nor expense, having added nearly two hundred pages of new matter, including a full set of Joint Stock Bank Books, exemplifying all the changes required for conducting bank accounts under the new National Banking law, now adopted by nearly all American banks. He has also given all the most approved forms of modern Railroad accounts ; and, as no system of accounts has yet appeared for the use of Private Bankers, he has added a full set of books expressly adapted to their business. The work now includes all the improvements for assisting the teacher and perfecting the education of the Commercial Student, suggested by upwards of twenty-seven years' daily experience in instructing large classes in this branch of education. Referring to the testimonials appended to its pages, he feels confident that €lerks, Merchants, Bankers, and all persons who buy or sell, or have any thing to do with accounts, will find the study of this work contribute to their advancement. In this hope, it is again respectfully submitted to the public by The Author. DUFFS BOOK-KEEPING. INTRODUCTORY REMARKS UPON THE FIRST EDITION. To Merchants : — In announcing a new work to the public, it is obviously the writer's first duty to state to his readers wherein he offers improvements in the subject upon which he treats. The author's objects in adding to the publications upon this subject are briefly these : — First. To provide instructors with the means of imparting more perfect and practical instruction than can be given from any work now in use. Second. To introduce several new and important modern improvements, having for their object, the abbreviation of the process, and greater security against error. Third. To supply all classes of merchants, mechanics, &c., with a complete book of reference. Nearly all the works now in use being prepared almost exclusively for the use of the wholesale merchant, leaving the mechanic and retailer with no other assistance than such as they can draw from books prepared for another department of commerce — a fact which may account for the imperfect knowledge of book-keeping among certain classes of traders. - Among houses conducting the more extensive and complicated operations of commerce, irregularity in the management of their accounts is now becoming, perhaps, a rare occur- rence. The conductors of such establishments, no doubt, strongly impressed with the disas- trous consequences of any confusion in this department, take effectual means to guard against it, by informing themselves of the most accurate and most improved methods of manage- ment. But this is far from*being the case among the middle and smaller class of dealers and mechanics. The frequent failures among thein often disclose the most culpable igno- rance and negligence in the management of their accounts : and as the extensive dealers are, themselves, often among the severest sufferers by these events, they should consider it their duty to make proper inquiry into the business qualifications, as well as the solvency and integrity of those to whom they extend confi^dence. And they should use their influence to impress it strongly upon the minds of such persons, that the want of that knowledge, which is to be obtained alone from systematic accounts, must always more or less increase the hazard of ultimate miscarriage in business ; and that it is, therefore, the first and most obvious duty of every dealer and trader, small and great, to keep a precise and methodical account- of his transactions. If young merchants had one-tenth part of the author's expe- rience in winding up and adjusting deranged books of account, especially in partnership business, they would guard against confusion in their books with as much vigilance as thej do against fire or shipwreck. In some countries, this duty of the merchant is watched over by the government, and enforced by many anxious legislative provisions.* But with us it is left to be impressed solely by public opinion ; and by the dread of that reproach, loss of credit and loss of cha- racter, that must ever follow the detection of ignorance and irregularity in the manner of recording business transactions. * The French Code de Commerve L^ivcs a minute description of the sevieral books which every trade^mau * must keep. ,11 1. » •*. I DUFFS BOOK-KEEPING. TO TEACHERS. This work is divided into two parts ; the first part containing in a cheap and conve- nient fonn for teachers, a complete course of instruction and practice upon Single and Double Entry, embracing all that is necessary for the learner to understand thoroughly, before he attempts to write in business books. The SECOND PART is designed for the assistance of merchants and accountants in the counting-room. Both parts may be had bound together, or the first part in a separate volume when required. This work is, by its minuteness and simplicity of illustration, intended to assist the learner, and thereby to assist his teacher. No pains have been spared to bring down the principles of the science to the level of the humblest capacity. In perusing the work, persons unac- quainted with the labors of the class-room, will perhaps be struck with the repetition of re- ferences, back to the same rules and definitions ; but those who understand the art of direct- ing the progress of the human mind — experienced preceptors — know well how much success- ful and efficient instruction depends upon making those principles already acquired explain new difficulties. It has always been my opinion, that a course of school instruction in Book-keeping might be so framed, that the teacher would have little to do but to see that his pupils followed the directions laid down for their guidance, which should leave them no means of getting through the exercises without mastering the subject. And if teachers would strictly follow my direc- tions, in teaching from this work, I shall be satisfied to allow an impartial examination of their pupils to stand as a test of the merits of this attempt to effect that purpose. The teacher will of course instruct those persons only in Single Entry who purpose to keep their books in that way and who desire to learn the science no farther. Those who learn the science upon the Double Entry principle always understand Single Entry; it therefore requires no attention from the Double Entry student, except a perusal. The in- troductory set of the Double Entry course is only intended for those having no previous knowledge of the subject. Those who are partially acquainted with it, may commence with the rules and oral exercises on page 38. In this set they will obtain a full knowledge of all the principles of the science. To persons engaged in business, time is often a great consideration. To such persons you can give, from this treatise, a perfectly effective course of instruction by omitting all writing except the Journal and Ledger. Direct them to journalize the transactions from the printed Day Book. But all the other directions, in reference to the oral exercises upon the rules and the auxiliaries, oral journalizing, &c., must be strictly carried out to ensure thorough instruction. The two sets of books embraced in the second part, though diiTerent in form, comprehend no departure from the governing principle of the science, and will not, therefore, be difficult to acquire by those who are well versed in the principles of the science. But I would re- commend a course of exercise upon them, before attempting to put them in practice in business. In transcribing our Single Entry Day Book, or any of those books where our Ledger folios are inserted as post marks, the learner must be cautioned to leave the columns blank, to insert his own post marks. Farther directions for teaching will be found interspersed throughout the work, whenever they are deemed necessary to guide the instructor in his progress. New Yobk, Augtui, 1866. 6 SINGLE ENTRY BOOK-KEEPING, EXEMPLIFIED IN A PARTNERSHIP BUSINESS, CONCLUDING WITH AN ILLUSTRATION OF THE PARTNERSHIP SETTLEMENT AND DIVIDEND OF THE PROFITS. PRESENTING, ALSO, THE REQUISITE STEPS FOR TRANSFORMING THE SAME LEDGER INTO A DOUBLE-ENTRY ONE. PEELIMINARY REMARKS. It may perhaps be asked why Book-keeping by Single Entry is presented in a work containing the explanation of the science by Double Entry, since the acquirement of the latter must necessarily bring a knowledge of the former. This is perfectly true ; and I have embodied my views in reference to it, in my directions to the teacher, on the last page. Those who have the means, capacity, and inclination to learn the science upon the double entry principle, will not, therefore, do more than merely peruse this set, for I do not imagine that any person thoroughly versed in the double entry process will ever keep his books in any other way. But it is, at the same time, equally certain, that there is a large class of persons, both in town and country, such as farmers, mechanics, retailers, milliners, and other dealers, who, for various reasons, are not inclined to keep their accounts by double entry ; and, as every person who buys or sells any thing must keep accounts in some way, the author feels confident that the following illustration of this simple but useful form of accounts will prove serviceable and acceptable to this class of dealers. The managers and teachers of public schools will also find it worthy of their attention ; for, however limited a young man's education may be, a knowledge of Book-keeping, to this extent at least, should form a part of it. In this set will be found a practical illustration of a process not to be found in any other work that we have seen — transforming the Single Entry Ledger into a double entry one. All simple as this process may appear after it is explained, it will be found that many accountants are not aware that there is any way of changing the prin- ciple of keeping the books but by the laborious and tedious process of transferring all the accounts to a new Ledger, — an operation that is seldom necessary until the old Ledger is filled. GENERAL RULES FOR DEBITING AND CREDITING ACCOUNTS. 1. Give the Rule for opening books in private business. 2. Give the Rule for opening books in partnership business. 3. When is a person Dr. ? 4. When is a person Cr. ? 5 What is the rule respecting orders, bills, drafts, &c. ? 6. Which side of the Ledger is * used for the Drs. and Crs. ? 1. I credit the stock account, which represents my own name, for what I invest in business, and if I owe any thing I debit it for the amount. 2. I credit each partner for what he pays in, and debit him for what he draws out. 3. When he gets into my debt, he is Dr. for the amount, and When I get out of his debt, he is Dr. for what I pay or cease to owe him. 4. When I get into his debt, he is Cr. for the amount, and When he gets out of my debt, he is Cr. for what ho pays or ceases to owe me. 5. Credit a person always when you draw on him on your own account, and debit him when he draws on you. 6. The Drs. always on the left, and the Crs. always on the right. 7 M SINGLE ENTRY BOOK-KEEPING. NAMES, DESCRIPTION, AND USES OF THE BOOKS REQUIRED. The Day Book and Ledger are the only books generally used in this mode of keeping accounts. If Bill Books, or any other auxiliaries, should, in any case, be required, the form and directions for keeping them will be found in our Double Entry Set (p. 45). I would, however, recommend Single Entry Book-keepers to keep a Cash Book, and, in some cases, a Cash Sales Book. In order to make these books thoroughly understood, we subjoin an exemplification of each, in connection with each other, and with the following Day Book. SINGLE ENTRY BOOK-KEEPING. We begin with THE CASH SALES BOOK. In this book is recorded a detailed account of all sales for ready cash j also for cash received for sales entered upon the Day Book, and collected before posting to the Ledger — see third Day Book Entry, Sept. 10, p. 10. From this book the amount is transferred weekly to the Cash Book, or as much oftener as we wish to balance that book, at the same time noting the amount on this book — " Ent'd C. B., p. 00." This is more convenient than the common way of entering every sale upon the Cash Book, or entering them first upon a glate — a practice that can never be reqommended, as it is about the same trouble to write upon slate as upon paper, and all future reference to entries made in this way is forever prevented by rubbing them out. When the nature of the business renders it too difficult to keep a record of every sale, the usual course is to keep the money received for sales during the day in a drawer, separate from that entered in the Cash Book, and to count it out and enter it in one sum in the evening *' Rec'd for sales this day." The following illustration will sufficiently explain the nature and use of this book : — NEW YOBK, September 1st, 1866. 1866. Sept. 5 8 9 11 15 16 18 20 25 27 29 Sold for Cash, viz. — 1 Vest and 2 pr. Pants, 4 yds. Fine Blk. Cloth, @ $6, 1 Silk Hat, S5. Box, 25 cts.,* 1 pr. fine Boots, S6. Silk Hat, $5, 1 Mahogany Sofa, 1 Dining Table, 850. 1 Toilet do., $10, 1 Rosewood Piano, Music Stool, to R. Carpenter, J. Manly, J. Toole, do. F. Le Roy, Sold for Cash, — 1 Saddle, 815. Bridle, 82, 1 Gig Harness complete, 1 Travelling Trunk, 2 Leather Hat-boxes, 1 Bbl. Flour, and cartage, Entered Cash Book, p. 1. R. Trotter, do. F. Howe, Ent'd Cash Book, p. 1. Mrs. Mason, Sold for Cash, — 2 Braid Bonnets, 1 Velvet Bonnet, 88. Ribbon and trimming, 84, Making 2 Silk Bonnets, Making a Mantilla, 84. 4 yds. Fringe for do., 84, Mrs. Hill, 4 Lace Collars, @ 84, Ent'd Cash Book, p. 1. Sold for Cash. — 1 Silver Watch, No. 4445, Samuel Gray, Repairing a Gold Repeater, G. W. Smith, ' Engraving 1 dozen Tablespoons, F. Robb, Ent'd Cash Book, p. 1. 22 24 5 11 20 60 150 5 17 14 12 3 6 12 12 5 8 16 * When a sale is made to an unknown person, the name may bo left blank. 8 40 2 1 25 50 297 25 52 53 25 43 50 ! * fc4 o o pq W en I u ax ^ JH O ^ o 02 • I— I «4-l O ;-! a « OQ a ■*^ >^ a o m 02 as #> OQ -73 •+0 02 ;3 13 !h O a> d ^ o a> o C3 -^ .S ?; CI o o * lO o O o OQ rOj-H n3 G^ «^ te "* S'tJ .2 -^ "-• a jH "*^ S 62 « •C 5 ^ c3 « jH ^ rt == 03 '^ o a >>w §02 05 o ^ o •5h be o o f-i Jr dJ r; OQ >% fl O a % bo -4J •73 O d u d ^ 02'- O wn g ^ S^ a S § C8 « d .. 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OQ C/J • l-H <^ ^ 03 © d o QQ ■^ r^ TS •^ •S •V © © © © © © ^ cqpl d rH ^» -d "^ /-) Co F-; "© 03 03 pqp^ e« IT C r-t l« J- CJJ Q ^ © c3 © MP5 d d o O o © 02 d 03 rd © ^ <33 O © OQ • i-i d © © O © OQ d at »a o © o CO lOO -S3. CD Ph QO © rHQQ I S.F = •r— o .2. .3 ■*• ^^.■^* f 2 = 1 6 *i = 9 rS o - u • O t> _ ■B W C • S - i — J > > = il I r NEW YOBK, Monday, Ist September, 1866. P. Duff and William Gordon having this day entered into copart- nership under the firm of Duff & Gordon, they pay as capital as follows : — * P. Duff is credited for — Cash paid in per Cash Book .... 1100. James Wood owes him on account . . 200. 'David Cutler owes him on his note . . • 150- II James Wood (Carpenter), Dr.* For the above balance due P. Duff _ // W. Gordon is Cr. For Cash paid in per Cash Book . . . . u Balance due him from K. Martin, 270 Bowery n Merchandise and Store fixtures per Inventory* 900. 95. 890. 1450 200 Paid, Sept. 15. Returned Sept. 22 } Kobert Martin (270 Bowery), Dr. For the above Balance due W. Gordon . n • — William Gordon, Dr. For bal. due by him to Wm. Hay assumed by firm ti n » T. P. Cope & Sons, de. . __ _ ^ William Hay, Cr. For balance due him by W. Gordon as above _ If T. P. Cope & Sons, Cr. For the above balance due them by W. Gordon ======= 10. ===== James Wood, Cr. For his bill of Carpenter work for repairing store _ n _— — James Wood, Dr. For amt. paid his order for Merchandise to John Toole — n Dr. 250. 265. 1885 95 'Frederick Howe, For 1 barrel Fine Flour, (Cartage, 25 cts.) . ... • 20. =====- James Carter, Dr. For lib Tea. $1 ; 121b Sugar, $1 ; lib Kaisins, 25, $2 25 «r 1 bag 160R) Rio Coffee . . . @ 10. J^ ♦Robert Manly, For 1 best Silk Hat James Day, For Cash on account Dr. 11 Dr. 1. Dnff is here credited for the reasons given in Rule 2. 2. Cutler is not debited on book account for this sum, because we hold his note for it. 3. We do not require to open an account with Howe for this entry, because it was paid be- fore posting. — See Cash Sales Book. 4. If he had returned this after posting, we must then credit him for the amount, when returned, on the Day Book, and afterwards post as usual. * The form of an inventory can be seen on pages 59 and 61. 10 515 250 265 105 12 18 / 25 25 25 September 30th, 1866. T. P. Cope & Sons, For bill remitted them Dr. 2 1 William Hay, For amount of bill remitted him Dr. Robert Barclay, For 4 yds. Satin Ribbon, // 1 pr. Silk Gloves, // 16 yds. Fig'd Satin, = Oct. 5. Dr. @ 50 cts., S2 .76 @ 1 50, 24. ^William Hay (to close acct.), Dr. For our order on James Wood . Cr. James Wood, For the above order Dr. James Wood, For 1 pr. Waterproof Boots, $6. 1 Silk Hat, $5, - 10. == * Robert Barclay, Dr. For Sundries .... - — If 'James Carter, Dr. For 1 Fine Black Dress Coat . . . , // 1 full circle Cloak, velvet trimmed .- Received cash on account of the same . Balance to his debit 20. === $28. 45. 73. . 50. Jas. Wood (per order to J. Pine), Dr. For 1 barrel Fine Flour, ^g 59 // 1 gal. Molasses, 50 cts. lib Tea, 75 cts. lib Pepper, 25 cts., \M Per bill : : P. Duff, For 1 Velvet Vest, — If __ Dr. 1 Fine Black Dress Coat, $28, — # — Dr. W. Gordon, For 1 pr. Ladies' Boots, $2. 1 pair Men's do., $6.50 James Carter, For his invoice of Flour, Robert Barclay, For his invoice of Cloths, &c. 30. Cr. Cr. • w Dr. James Day, _ For a full suit of Clothes, $35. A f circle Cloak, $30 11 200 200 26 75 50 50 11 23 8 36 8 50 258 150 65 1 I November Ist, 1866. 1 ; 1 Robert Martin (to close acct.), Cr. For his invoice of Silks . // cash in full . • • • 5. 67. 28. 2 Robert Barclay, ^^• For 30 barrels Superfine^ lour T. P. Cope & Sons, ^^- For om note in full for balance of account . . @«6. // 2 ^Robert Barclay (to close acct ), Cr. For his note for balance of his account in foil ^ = 10. =~ 65 81 75 Robert Martin, o^ih. ^^" For 1 barrel of Sugar, 24m. ^^^^ ^^^^^ ^ ^^^^ ^^^ „ 2R, Sperm Candks" . • ___@m^^-^^^ . ■ — n ' '• Jor'r rlti:; of Dry Goodstd Groceries . • *800- Less paid them on account cash • • ' . * j-. " ^ Balance to their credit - 20. ===--========== sRobert Evans (Buffalo), Dr. % ^ «l«»i^« 11 75 500 For 12 pair Waterproof Boots • „ 2-1 " " ^^^^^ ' I, 24 " Boys' Shoes // Packing Case and Cartage . — : It Dr. (g$8. 6. 1.25 96. 144. 30. 1.25 271 [25 . -r n ^ UT. (^3 months. 2 James Carter, , ^i ,, vr i oqc 9A» Forlps.S.FineKackCloth,No.l288. ||^^„^,^ @,,. .^OO. "„ End » Green » 1320. 7 " 3. 21.^^ w Wrapper and Cartage . • • —^ZZ— ^,,^,=,==JL============= 30. === Robert Martin, ^^' rrhrs account of Hosiery against WiUiamGordon Dr. * William Gordon, For amount assumed with R. Martin, as above, // Cr. ^ ' •'X 3 months' wages from 1st Se^p't. to dat., as foreman, @^fmo. Dr. Mames Day, t^ n «, For Cash on account Forty-one Dollars James Day. 2 150 41 :|SKvs|SrS5r:HSSa'-":.-..-...~-. 1^ December 1st, 1866. 2 James Day (to close acct.). For cash in full . Dr. 40. 21. 19 61 . tt P. Duff, Dr. For a Winter Frock, $35. Hat, $5 // Cash paid George Cutler's bill n _- " . P. Duff, Cr, For Cash Received for his bill on Gibson, Bright & Co., London . 988 — 10. li T. p. Cope & Sons, Cr. i For their invoice of Broad Cloths and Silks .... 2000 . . — -^ H William Hay, Cr. For his invoice of Prints, &c. - 15. James Wood, per Mrs. W. Dr. For 20 yards Figured Silk «/ 16 H English Prints 800 1.50 30. 25 4. Cr. James Wood, For his bill of new door and window shutters . =-=========== : 20. ===== W. Gordon, Dr.. For 12 yards Fine Black Cloth .... -— ~— ■ a James Wood (to close acct.), Cr. For 8 yards Prints returned, $2. Cash in full, $71 . @$6. 31. Dr. P. Duff, For Cash paid House Rent to date, $140. Taxes, $17.88 // . William Gordon, Dr. For Cash paid House Rent to date, $100. Taxes, $4.13 . STATEMENT exhibiting our Profits and Dividends. P. Duff f. 1 W. Gordon ........// Robert Martin u Wm. Hay 2 T. P. Cope & Sons // James Carter // Robert Evans ....... // Cash 3 Merchandise u Bills Receivable n Bills Payable ^ Surplus effects P. Duff's half gain to his credit . 1 I W. Gordon's to his credit 13 Effects. Liabiliti«t. 254 88 2438 701 88 1885 11 76 2 800 2500 262 60 258 271 25 3634 75 3368 26 81 75 65 25 8582 01 7948 ; 25 7948 26 633 76 34 37 72 78 157 88 104 13 316 88 316 i 88 REMARKS UPON THE DAY BOOK. All onr transactions are generally first entered upon the Day Book; hence it is called » the book of original entries, and is always referred to when full particulars or explanations are called for. It is therefore obvious that all copying into it from slates or waste pieces ot paper ^is liable to destroy its testimony. If the nature of the business requires original entries to be made upon Time Registers or other memorandum books, these books ought always to be paged and the Day Book entry should show its reference to them. Pass-books are often useful between persons having very frequent transactions with each other : but we must caution the Accountant against placing any dependence upon another person's pass-book. His Day Book must record every transaction as if no such book existed Though the preposition To is correctly used in their Journal by Double Entry Book- keepers, yet in the Single Entry Day Book the expression is unmeaning and ungram- matical. I have therefore substituted For, as more correct and agreeable to the idiom ot our lancnia^e. As you post the entries from the Day Book to the Ledger, 'insert the page of the Ledger in the marginal column on the left of the page. This serves as a post mark, and shows how far your posting is completed. You must afterwards ^compare all the entries in the Ledger with those in the Day Book, check-marking them thus j/ with a pencil both on the Day Book and Ledger. No person can expect to keep his books per- fectly correct without this precaution. ON OPENING THE LEDGER. The following Ledger is ruled in the common form, and it is the most suitable for any kind of business. The page is divided by a perpendicular line making what is called a folio or if the paper be small it will be better to take two pages for a folio. The space intended for each person's Account is headed in large text hand with his naine, or, it it be a firm with its legal title. Every Account occupies both folios, the left or Dr. side repre- sentin'^ ^our Account against him, and the right or Cr. side «his Account agamst us. Ihe diff-erence represents Uhe Balance we owe him or which he owes us, as the case may be. The abbreviations Dr. and Cr. are « never required except at the head ot the page, in opening a business Ledger always index each Account before you head it, as an omission m the Index often causes much trouble and sometimes mistakes. In business the Index gene- rally has a page allotted to each letter of the alphabet. The following illustration will here be sullEicient to explain it. INDEX TO THE LEDGER. A. Barclay, Robert . Bills Receivable Bills Payable Balance Account Cope, T. P. & Sons Carter, James . Cash Duflf, P. . Day, James 2. 3. 3. 3. 2. 2. 3. 1. 2. Evans, Robert . Gordon, William Hay, William . Martin, Robert Merchandise . Wood, James 1. What is the Day Book called? , ^ • . .u t. u v» 2. What objections are there to copying from a slate into the Day JSooKf 3 What is to be done as you post the entries from the Day Book to the Ledger r 4. ^Vhat is to be done after you have posted the Day Book into the Ledger? 5. What does the left folio of an Account in the Ledger contain? 6. What does the right one contain? 7. What does the difference represent ? 8 Whereare the abbreviations Dr. and Cr. reqnired? 14 2. 1. 2. 1. 3, 13. Vr. P. 1866. Oct. Deo. 20 1 81 For Coat and Vest // a Coat, $35. Hat, $5 // Cash p'd, Cutler's bill n Taxes & Rent 254.88 Balance fol. H 4 4 36 40 21 167 2500 2764 88 88 What is to be done with this and the following account when closing the Ledger ? How are they then closed? DUFF. I860. , Sept. I 1 For Sundries paid as cap. Dec. 1 // Cash for bill on Lond. i31 // his ^ net profit 2438. ^218112 2754.88 254.88 9S0O. 1. They remain open until the gain or loss is ascertained (see Day Book 3) and entered. 2. They then close into balance like any other account. WILLIAM 1866. Sept. 1 For his debts assumed Oct. 20 // 2 pr. Boots Nov. 30 // Martin's bill Dec. 20 II 12 yds. Cloth 31 // Cash p'd taxes & rent 701.88 Balance fol. 616 8 2 72 104 1500 2201 GORDON. 50 26 13 88 ZZ. I What does the balance entry at this and the preceding ac- count represent, and when are they transferred to the balance account? How are these balances found? How are they disposed of in re-opening the books ? 1866. iSept. 1 j For Sundries paid as cap. Deo. 31 // his J net profit 1885. 701 1 4 - 1885 316 88 ^^ ^.-1183.12 316.88 ^'^^ 1500. saoi.88 701.88 1500. - 2201 1. They represent each partner's present net capital, and ar« the last transfers to the balance account. 2. By taking the difference between the two sides of the a«> counts after they are credited for their share of the gam. 3. These balances are carried to the respective partaen' credit. ROBERT 1866. Sept. Not. 1 For bal. due W. Gordon 10 Sugar, $11. Candles, 75 j 3 7.75 us (270 Bowery.) MARTIN. 1. For what purpose is the line drawn across this account under the $95. 1866. I j Nov. 1 For Sundries De|}. Dec. 80 1 For acct. ag't W. Gordon 3 ol Balance fol. ;; 95 2 |25 ) . 50 11 76 1. Because the payment on the 1st November squared tk« account. ^ ^f«*il^?® balance $9.50 at the credit side, and what is 2. It is what' he owed us when balancing our books, and wiU ^® i •>I Balance fol. 3 271 26 JAMES (Foreman.) DAY. T586" Sept 20 For Cash on account Oct. 30 Clothes, $35. Cloak, $30 Not. 30 For Cash Dec. 1, # * 25 66 41 19 THJ^ 1898: Nov. 30 For 3 mos. wages to date 8 16 Br. JAMES WOOD. Cf. 1866. Dec. Bro't forw'd, f. 1 110 110 1866. Dec. Bro't forw'd, f. 1 20 8 yds. Print ret'd,@ 25 4 // Cash in full 37 2 71 110 CASH ACCOUNT. 4 ii 3634 75 1866. Dec. j 31 i For am't on hand 1. What is the use of this and the four following accounts in Smglo Entry Book-keeping? 2. How do we find the amount of cash on hand? 1866. Dec. t>i . Balance fol. 1. This and the four following accoiuits are never opened m Single Entry Book-keeping until wo are closing the Ledger. 2. The amount of cash in hand is found by counting it. MERCHANDISE 1866. Deo. : 31 For am't on hand "^ Inv. 4 3363 25 ' For Bal. bro't down 33G3 25 1. How is tJie amount of goods on hand ascertained ? 2. What is to be done with the Cash Merchandise and Bill Accounts, if the books are to be hereafter kept by Single i Entry? r j a ^ 3. What if they are to be kept by Double Entry? ACCOUNT. 1866. Dec. 131 Balance fol. 3 3363 25 1 i 1. The Merchandise on hand is found by inventory. 2. Tlie Cash Merchandise and the two following acconntf remain closed. 3. The balances of these four accounts are all brought dowa BILLS RECEIVABLE. 1866. Dec. 31 For notes on hand 4 81 76 ■-■ 1866. Dec. 31 Balance fol. M i -1 ;' 75 BILLS PAYABLE. 1880i Dec. 31 Balance fo' 1 — 1 ! (35 1866. ! Dec. 31 \ \ For our notes unpaid 4 66 1 Who f f*r\r\a^l^n^Aa 4^\xr^ Al^4-:-^^.i.t^ i^.x _. .,. Single Entry Ledger? 2. Why, then, are these accounts opened here ? 1. The five last accounts belong to Double Entry books. N.. accounts are kept in Single Entry books but personal accounts. 2. These accounts are opened here only for the purpose of recording the partners' settlement, and to illustrate th« manner of re-opening the Ledger by Double Entry.— See notes 1 and 2, p. 19. BALANCE ACCOUNT. 1866. Dec. 31 Am't due by Martin f. // // Jas. Carter n II R. Evans Cash in hand Mdse. in hand Bills Receivable 7365. 1 2 3 9 4 271 3634 3363 81 7365 50 50 25 75 25 75 1866. Dec. 31 Bal. due W. Hay 1. What does the Dr. side of this account represent? 2. How is the present net capital found? 8. Where is the list of debts owing by the concern, and what do they amount to? 4. What is the partners' present joint capital ? 6. What portion of this $4000 belongs to each partner? 6. How do we ascertain the amounts they have paid in and drawn out ? 7. How do we ascertain if our operations are all correct ? » What IS the reason of this? // // // // T.P.Cope&Sons on our notes sass. P. Duff,netcap'l W. Gordon, do. 2 // 3 1 // 800 2500 66 2500 1500 7365 1. A complete inventory of all the effects of the firm. -'. By deducting what they owe from the amount of their property— see the small figures in the margin al»ove. The three first entries on the credit side, amounting to $3365. 4. This leaves the present net joint capital ^00. 5. That dei)ends upon the amounts which they have paid io and withdrawn. 6. This can only be known by their accounts. 7. If the operations are all correct, the balances due them or m*''*'*'^ accounts must, as above, exactly close this account. 8. The balances due to other persons and the balances due the proprietor or proprietors of a concern must exactly use up all its effects, neither more nor less. B 17 SINGLE ENTRY BOOK-KEEPING. SINGLE ENTRY BOOK-KEEPING. \i CONCLUDING REMARKS UPON THE LEDGER. It may be necessary to state that the object for closing the Ledger *may be: Ist, To ascertain and record a division of the gain or loss between the partners; or, 2d, To prepare the books for a partner to come in ; or, 3d, To prepare for transferring the contents of the old Ledger to a new one ; or, 4th, For transforming the Single Entry Ledger into a Double Entry one, or transferring the Accounts to a new Double Entry Ledger. In closing the Ledger, every Account is made even by a Balance Entry at the lesser side, of the amount requisite to make it equal to the other side. These balance entries all repre- sent 'either effects or liabilities of the concern, and are all transferred as fast as the Ac- counts are closed, to the Balance Account "for the purpose of exhibiting the amount total of each, and thereby to ascertain what the concern is at present worth. There is no way of knowing this but by making up one list of every thing we possess and another list of every thing we owe. Now, this leads us to the most simple and rational explanation of the Balance Account ; for the Dr. side is simply this list of our effects and the credit side the list of our Liabilities. The Difference, if the Dr. side be the largest, *is what we are now worth. If the Cr. side be the largest, Hhe difference is what we are insolvent. The closing entries of the Ledger need not appear on the Day Book. They may all be made upon the face of the Ledger. They ought, however, both letters and figures, to be in red ink. All transfers from one folio to another on the Ledger should also be noted /oZ. or /olio* to distinguish the pages from those which refer to the Day Book. But the Ac- countant must avoid the practice of making any other entries upon the Ledger without an original entry with full particulars upon the Day Book. If an entry affecting a personal Account cannot be found upon the Day Book, its correct- ness may be questioned, and in case of litigation it is liable to be rejected altogether. — See Note 2, page 14, and Note 2, page 25. The statement at the foot of Day Book, p. 4, will always give the correct gain or lose, provided it includes all the effects and liabilities. The rule is — All debits are effects; all credits are liabilities. If the amount of effects exceeds that of the liabilities, the surplus is gain, passing to credit of the Stock account, or to the credit of the partners. If the liabilities exceed the effects, the deficiency is loss, and passes to the debit of Stock, or the partners' accounts if the business belongs to a firm. 1. What are the objects for closing the Ledger? 2. "What do all Balance Entries represent? 3. What are they all transferred to the Balance Account for? 4. If the Dr. side of the Balance Account be the largest, what does the difference between its Bides represent I 6. What if the Cr. side be the largest? 6. Why must the transfers on the face of the Ledger be noted folio? ID It has already been explained— see Cash Account, Note 1, and Merchandise Account ISote 2— that these and the other property accounts were not opened until we were closing the Ledger. They were then opened for the purpose of recording the different species of property the firm possessed when the dividend was made. If the books are re-opened by bmgle hntrj these accounts remain closed ; but if they re-open by Double Entry their balances as well as all the others are brought down. But whether the books are afterwards to be kept by Single or Double Entry, no dividend ought to be made between the partners without a record of all their effects and liabilities, and that record and Balance Account ought always to be in the Ledger, or in a book for the purpose, not on loose sheets of paper as IS the practice with many business people. As the Ledger now stands, if you desire td re-open it by Single Entry, you have only to bring^ all the balances of the personal accounts down as we have done with Hay's account^Ledger folio 2— leaving only the Cash Mer- chandise, and two Bill Accounts on folio 3 closed. If you desire to open the same accounts m a new Single Entry Ledger, leave them all closed upon the old Ledger, and transfer every account under date of the old Balance Account, to the new Ledger, entering " Balance from Ledger A (or B) folio"— giving the folio of the old Ledger. If you desire to re-open by Double Entry in the old Ledger, bring down« the balances of the Cash, Merchandise, and the two Bill Accounts, with all the balances of the personal accounts and your Ledger is open by Double Entry. A glance at the Balance Account proves this, tor there we see every debit and credit that we have brought down into new account, and they being equal in amount S7,365, our basis for a Double Entry Ledger is as complete as if it had been kept upon that principle from the beginning. If you wish to transfer the contents of the old Balance Account to a new Double Entry Ledger, it can be done direct from the Balance Account in the old Ledger to the respective accounts m the new Ledger, giving reference to the folio of each account in the old Led-er as above directed in transferring to the Single Entry Ledger. Those who prefer passfng the transaction through the Journal will make the following entry:— r r & Sundries, Dr. To Sundries, $7365. Robert Martin, bal. per Ledger A, folio 1, James Carter, do. ' do. Robert Evans, do. do. Cash in hand, do. do. Mdse. do. do. do. Bills Receivable in hand, do. To William Hay, for bal. due him // T. P. Cope & Sons, do. '/ Bills Payable, bal. due on our Notes, 3, // P. Duff, for his Net Capital, 1, " W. Gordon, do. 1 2, 2, 3, 3, 3, 2, 2, $9.50 4.50 271.25 3.634.75 3,363.25 81.75 $800. 2,500. 65. 2,500. 1,500. When this entry is posted into the new Ledger, the transfer to it is completed The learner will not expect to understand what we have said here in reference to re-openin^ his Ledger by Double Entry until he has acquired a knowledge of that method in the next Chapter. He will then refer back to this matter, which could only be explained here in connection with the Single Entry Ledger. He will also refer to our directions for correcting errors in the next Chapter, p. 98. o" WK^®.^^^^^^' i8/eK)pened by Single Entry, what balances are to be brought down? A What balances do you bring down to re-open by Double Entry? 19 SINGLE ENTEY BOOK-KEEPING. EXERCISES IN MAKING OUT ACCOUNTS, INVOICES, &c. IN CONNECTION WITH THE PRECEDING SET. (1.) Form op an Account. — See J. Wood's Account, Ledger folio 1. Mr. James Wood, To Duff & Gordon. Dr. 18«6 Sept. Oct. 1806. Sept. Oct. 1 For bal. due P. Duff on old % 10 // Paid your order in favor of John Toole 5 // 1 pr. Boots, S6. Hat, 85 20 n Paid your order in favor of J. Pine Crs. 10 For your bill of carpenter work 5 // our order on you in favor of Wm. Hay Bal. due Duff & Gordon j New York, 1st Nov. 1866. 1105. 50. 200 12 11 8 231 155 76 Note. — Accounts current are always drawn from the Ledger, referring by the the Day Book when particulars are wanted. See that the account and the Ledger alike, and as soon as Wood admits the correctness of the account, you must close count on the Ledger, as we have done, and bring the balance down, requesting him his books also conform to the settlement. Many persons keep their books in such a manner that they never show their settlements ) in consequence of which, they petually pestering their neighbors in business for statements of old settled accounts, tion to our directions in this matter will save trouble to both parties. r2.) Form of a Bill of Parcels. — See Day Book, p. 2. October 10. Mr. James Carter, BoT. OF Duff k Gordon. dates to balance his ac- to make slovenly are per- Atten- 1 Fine Black Dress Coat . 1 Full Circle Cloak, trimmed with velvet Received cash on account New York. 10th Oct. 1866. Balance due 28 45^ 73 50^ 23 (3.) Form of an Invoice. — See Day Book, p. 3. November 20. Mr. Robert Evans, (Terms, net cash in 4 months.) Bot. of Duff & Gordon. 12 pair strong Waterproof Boots . 24 n fine '/ 24 ti Boys' Shoes Packing Case and Cartage . New York, Nov. 20, 1866. @88. 96 ' @ 6. 144 ! @ 1.25 30 • • 1 j25 271 25 1 Before forwarding this invoice, compare it carefully in every particular with your Day Book. 20 SINGLE ENTKY BOOK-KEEPING. MERCANTILE TERMS AND ABBREVIATIONS USED IN THIS WORK. Account current, a running account, em- bracing all transactions from one date to another. Account sales, an account of goods sold on consignment. Amt., for amount. Acct., for account. @, for at. Bal., for balance. Bbls., for barrels. B. B., for Bill Book. Bottomry Bond, a mortgage or lien upon a vessel C. B., for Cash Book. Co., for Company. C. S. B., for Commission Sales Book. Cr., for Credit. , Closing an account, to make it even. Closing lines, the lines which separate the old from the new account. Counter Entry, an entry made to balance one on the opposite side. Counter Error, an error balanced by another one on the opposite side. Counter Order, to recall an order. Dr., for Debtor. Do., or ditto, for the same. Dft., for draft. Ds., for days. Defalcation, deficit, diminishing or cutting ofi". Disct., discount, a sum or rate per cent, de- ducted from the principal amount. Doz., for dozen. Dishonored, when a note or bill remains un- accepted or unpaid. Del Credere, an Italian mercantile term sig- nifying guarantee. Days of grace the time allowed by law and custom to pay a note after it is due. Dividend, the profit to be divided. Drawer, the maker of a draft. Drawee, the person upon whom it is drawn. E. E., for errors excepted. E. and 0. E., for errors and omissions ex- cepted. Exch., for Exchange. Endorse, to write your name on the back. Full extend, to extend figures into the money columns. Footing an account, to add it up. Folios, the pages of the Ledger. Gal., for Gallon. Hhd., for Hogshead. I Honor a draft, to accept it. I. B., for Invoice Book. Inventory, a list of goods or debts. Insolvent, not having sufficient eflfects to pay one's debts. £, for pound sterling. Lighterage, a charge for conveying goods to a vessel in the harbor. Mos., for Months. Mdse., for Merchandise. Maturity, the day upon which a note or bill is payable. Mart, a place for public trade. N. A., a new account. N. P., net proceeds, the amount remaining after all charges are deducted. No., for number N. G., net gain, the gain remaining after all losses are deducted. N. C, net capital, the capital, clear of all debts. N. L., net loss, the loss above all gains. 0. A., old account. Per Ct., for per cent., as 5 Per Ct. Ps., for pieces. P., for per or by. Prox., for proximo, next month. P. B. P., for Bill of Parcels. Pd., for paid. Prem., for premium, an advance upon the face of the Bill. Par, the face of the Bill. Protecting, accepting or taking up a Bill. Policy, the contract with an Insurance Office Protest, legal notice of the non-payment of a note or bill; which notice holds the endorsei-s liable for its payment. Rec'd, for Received. Renewal of a Note, extending its time upon a new Note. Re-consign, to send our employer's consign- ment to another market, for sale. Solvent, able to pay debts. Short extend, to extend figures to the left of the money columns. S. B., Sale Book. Stg., Sterling. Signature, a person's name in his own hand- writing. Sgt., sight. Ulto., ultimo, last month. Yds., yards. 21 DOUBLE ENTRY BOOK-KEEPING. SET I.— DOUBLE ENTRY BOOK-KEEPING. INTRODUCTORY SET. PRELIMINARY REMARKS. Having in the last Chapter explained Single Entry Books, we have now to treat of the science upon the Double Entry principle. We purpose to introduce it as if the learner had no previous knowledge of the subject. For such persons we have prepared the follow- ing Introductory Set. The purpose of this set is to explain the initial difficulties of the science. We have found by experience that it is difficult to make a pupil, who has no previous knowledge of the subject, understand the language of the Journal until he is made acquainted with the nature and disposition of the accounts in the Ledger. How, for instance, can we explain to a beginner the meaning of such expressions as " Cash to Sundries," or " Sundries to Cash," but by taking him to the Ledger and there explaining to him the Cash Account and the manner and object for keeping it ? Until he has the Ledger explained to him in some way, the language of the Journal must remain unintelligible to him : and to this may be ascribed the difficulty and ill success in teaching Book- keeping from some of the most popular treatises in use ; in which, after bewildering the pupil with Rules and Lectures upon Journalizing, they conclude with what ought to be first explained, — the Ledger. We here introduce our pupils at once to that book, by first defining its nature and use, and then by posting a few entries into it, sufficient to afford an explanation of the balance sheet. He then brings it to ar close and determines the gain or loss upon these trans- actions, — an operation that can hardly fail to awaken his interest and create a taste for the science. He next brings down the balances, and, after recording a few more entries, closes his Ledger as before, ascertains the increase or decrease of capital, and prepares for transfer- ring his balances to a new set of books. This already affords him a commanding view of the whole subject; particularly of that part of the process which is so seldom understood by young accountants, — viz. transferring the contents of old books to new ones. The light thrown upon the subsequent parts of the process, by this early acquaintance with the nature and purposes of the different accounts in the Ledger, will render the pupil's progress less difficult and perplexing and more effective. The teacher will not omit to require answers to all the questions given at the foot of each page, for the pupil's examination as he proceeds. 22 DEFINITION OF THE LEDGER. All the other books used in business may be considered as tributaries to this Book. Every transaction affecting our affairs must come to some accounts in the Ledger for final adjustment. It therefore follows that a distinct knowledge of the nature of the accounts in it and the manner of conducting them is indispensable to enable a person to record an entry intelligibly upon the other Books. In the infancy of commerce,^ the Ledger was the only book used ; and where the trans- actions are few, it still may be made to answer the same purpose, by making the entries on it at once, without the intervention of any other book. Thus, when a sum is to be entered, by the index you find the account headed, in a large distinct hand, with the name of the person with whom the transaction has occurred, and at the proper side we enter the date particulars, and amount. This book'' is generally kept in folios of two pages to a folio. Of late, however, each page is generally made to serve for a folio by a dividing line down the middle. On the left side of each folio are the date columns, and on the right those for the money. *One folio is allowed to each person's account, th^ left side being assigned to the debits,* which means your account against the person, and the right side receives the credits or the person's account against you. Thus, your account against him and his account against you are brought together under one head, yet arranged on opposite sides, in such a manner that, if once correctly placed, no doubt can afterwards arise as to what sums belong to his ac- count or to your account. When either party pays the other in full,*^ after the ^payment is entered, the account must be closed. •When the two sides of an account are found to be equal, place the sum at the foot of each and draw ink lines below them in such a way as to keep the figures distinctly separated from those of the transactions that may follow after the settlement, and which may be kept «nder the same head — see our Cash and Merchandise accounts in the Introductory Ledger, pages 33 and 34. In addition to persons' accounts, in Double Entry Books,' we also keep accounts of every kind of property we own and deal in. This is done under different heads precisely as we have just described in personal accounts;® making each property account Dr. for what we pay for it, that is what it gets in debt to us ; and Credit for what it brings us in ; that is what it pays us or gets out of our debt. In fact we may say that such accounts are per- sonified and are dealt with in all respects like persons. Thus, if you own a house, ship, or steamer, let each have an account in your Ledger. »This account is debited for the cost or value of the property,^® and credited for the freight or rent it has brought you in, and also for the proceeds of the sales if you have sold. Then an inspection of the account will show what we have made or lost by that piece of property. Thus, if the cost" (the Dr. side) be more than what it has brought us in (the Cr. side), then we have lost by it. But if the Credit side be the largest, then we have gained by it. In the same manner the gain or loss is determined upon the purchases and sales of Merchandise or any other property. See Merchandise Account, 1st Set. 1. What was the first book used in CominerceT 2 How is the Ledger generally kept? 3. How many folios for each account and which side is used for the debit and w nch for the credit side? 4. What do yon mean by the debits and credits of m. ac- count? 5. W hen either party pays the other oflf, what is to be done with the account? 6. What do you mean bv closiue an f^'^^.",^* ! 1' ^J^^i'^V^^^ accounts besides personal accounts are kept in Double Entry Books? 8. How are property account* kept ? 9. To which side of the property account do you place its cost or value ? 10. What do you place to the credit side of a property account? 11. How do you determine what you have made or lost by a property account? 23 SET I.— DOUBLE ENTRY LEDGER AND DAY BOOK. The third class of accounts^ kept in Double Entry Books may be called Profit and Loss Accounts, as they receive no entries but gains and losses. ^They are kept for the purpose of recording all expenses and losses, and all gains. They may be kept all under one head — Profit and Loss; which is kept like all other accounts with a Dr. and Cr. side. "The Dr. side receives all entries of Expense and Loss, and the credit side all entries of gain. *But where the gains and losses are thus thrown together in one account, we deprive our- selves of the means of determining the gain or loss arising out of particular sources. But if we subdivide this account and open branches for Interest, Commissions, Expenses, &c., and debit each of these branches for all we lose upon it, and credit it for all we gain by it, it is obvious that each of these accounts will at any time present an important and interest- ing piece of information. And the longer we keep them, the more interesting and in- structive they become, as they can be made to present a tabular view of their respective results for comparison at diflferent periods of our business. Presuming that our attentive learner has now obtained some idea of the Ledger, we will next endeavor to explain the DAY BOOK. This book is by some called The Blotter, and it is not an inappropriate name for some people's Day Books. But for obvious reasons, scratching out, scoring or blotting entries upon this book ought to be avoided. If an entry be made wrong, it ought to be corrected, as we shall direct when speaking of the correction of errors, page 98, Note 11. This book is ruled in single pages, never in folios like the Ledger. There is a marginal column on the left and money columns on the right. — See our Day Book in the following Set, page 28. % This book becomes necessary as soon as the business transactions become so numerous as to render it inconvenient to turn to the proper account in the Ledger and to record them there separately. *0n the Day Book we enter them down one after another as they occur, like so many different memorandums. We reserve no spare space for each man's account here as we do in the Ledger. We have, however, to take care that every entry embraca«« the following particulars. « 1st, the date ; 2d, the person or account ; 3d, what you have bought or sold, paid or received ; 4th, the terms of payment ; 5th, the articles, quantities, prices, and amounts. By inspecting any of our Day Books it will be seen that entries for different persons' accounts are all intermixed upon the same page ; but are separated by ink lines in such a manner that there is no difficulty in distinguishing what belongs to each person^s entry. At our first leisure time we post the contents of the Day Book into the Ledger. 'Post- ing signifies the process of transferring each Day Book entry to the proper side of its proper account in the Ledger, in the same order of date as they occurred upon the Day Book. In order to show distinctly how far the posting has proceeded, when the post or transfer is made to the Ledger,* the entry is marked off or the Ledger page inserted in the margin of the Day Book, as we have done upon the first page of the following Day Book. Tm TEAcnKRS Examiwatioit.— 1. What is the third class of accounts called, and what kind of entries do they record? 2. What 18 the purpose of keeping them? 3. What do we place to the debit and credit side of the Profit and Loss accounts' 4. Yt hat objection is there to keeping all accounts of loss and gain under the Profit and Loss accounts ? 5. How are ontries made in the Day Book? 6. What particulars should every Day Book Entry embrace? 7. What is meant by postine? 8 How do we show upon the Day Book how far the posting has proceeded? 24 SET I.— DOUBLE ENTEY. When a Day Book is kept it is called the Book of original Entry, ^and will always be referred to in any case of doubt or dispute about the correctness of any entry upon the Ledger. It then becomes a matter of importance to have every entry made upon the Day Book^ in such a way as to explain itself, and also that every entry affecting other persons* accounts should originate' upon this book. The practice of making some entries originate upon the Ledger where a Day Book is kept, often leads to perplexing consequences. The original entry ought also to be made * by the clerk with whom the transaction occurred. The next Book requiring explanation is the JOURNAL. This Books becomes necessary as soon as the nature and extent of the business introduces many long and intricate entries upon the Day Book. When one Day Book entry affects a number of accounts in the Ledger, posting such entries direct from the Day Book becomes difficult and liable to error. 'The purpose of the Journal is to arrange all the transactions from the Day Book in such a manner that each Ledger title shall be affixed to its respective Debit or Credit, and thus render the posting into the Ledger less liable to omissions and errors. The transactions of a very extensive business may be stated upon the Day Book io the Journal form in such a manner as to be posted without difficulty and without the iuter- vention of a Journal. This, however, can only be done by those who have learned to keep the Journal; and a correct knowledge of the language and principles of this Book is an important and somewhat difficult part of the science of accounts to acquire. We embody our instruction for making the entries of this book in rules upon the next page, which are immediately afterwards put in practice in the introductory Day Book and Journal. We hope our attentive learner will now have but little difficulty in answering his teacher the following GENERAL QUESTIONS ON THE PRECEDINa LESSONS. Quest. 1. When a person buys of you on credit, to which side of his account in the Ledger do you place the amount? 2. If you buy on credit, to which side of the perso^'s account do you plaee the amount? 3. If you afterwards pay him this amount? 4. How does the account then stand and what is to be done with it?— See Note 5 p. 23. ' 5. When you receive money, to which side of the Cash Account do you place it? 6. When you pay money away ? . 7. When you buy Merchandise, to which side of the account do you place the amount? 8. When you sell Merchandise ? 9. If you buy Houses, Ships, or Steamboats? 10. If they bring you in freight or rent, or if you seU the whole or part of any of them ? r J 11. If you lose money, pay rent, clerks' wages, or other expenses, to which side of the Profit and Loss Account do you place the amount? -.12. If you receive money for storage, or by renting part of your premises, to which side of the Profit and Loss Account do you place the amount ? •2 Hmr'';hm,M^a« ^ ^"^K^^?''-"^' ^j*** ^"^^^ *^ ^^^^y^ referred to in case of dispute about the correctness of the Ledc-er* fimra.Sr J V^u^ ^^ *^ K*y' "^^^^ "P°" "*« »*>' Book ? 3. Where should all entries affecting Spel^^'aWu^^ 25 SET I.— DOUBLE ENTRY. RULES FOR JOURNALIZING. The following rules must be committed to memory. For the convenience of the teacher we give them in the interrogative form. The learner will find it useful, in exercising him- self, to cover the answers. Quest. 1. What is the general rule for regulating the debits and credits in Double Entry Book-keeping? 2. What is the rule for opening Books? 3. When is a personal account debited ? 4. When is a personal account credited ? 6. What is the general rule for receiving and delivering property ? 6. Repeat a more particular rule for debiting property accounts. 7. When are property accounts always credited ? 8. When is the Profit and Loss Account to be debited and credited ? 9. What is a Bill Receivable? 10. What is a Bill Payable ? Ans. 1. The Debits and Credits arising out of every transaction must, in amount, be equal. 2. The Stock Account represents myself, and must therefore be debited for what I now owe and credited for what I now possess.* 3. When he gets into my debt, or I get out of his debt, he is Dr. for the amount. 4. When I get into his debt, or he gets out of my debt, he is Cr. for the amount. 5. The thing received is Dr. to the thing delivered.f 6. When property becomes mine, it is Dr. for its cost or value ; and when it costs me any thing afterwards, it is Dr. for that cost. 7. When property brings me in any thing. it is credited for the amount, and when it ceases to be mine it is cred- ited for its value or what I receive for it. 8. Always debit loss and credit gain. 9. Any obligation on paper which 1 hold against others. 10. The same description of obligations held by others against me. • The term Stock is nnWersally used by Accountants for this purpose; but it is rather an ill-chosen title, as young Book- keepers are apt to confound it with the Merchandise Account. The term Capital or some other title that would better express the nature of the account would be more appropriate. The author has not, however, thought proper to change the title of the account, it being his object to introduce all his improvements by conflicting as little as possible with esta- blished usages. + Or, the receiving account Dr. to the imparting account. 2Ki I . V SET I.— DOUBLE ENTKY. ' THE DAY BOOK AND JOURNAL. INTRODUCTORY REMARKS. 1. These two Books are here bound together. This is done, both here and with the principal set, for the mutual convenience of the learner and the teacher; but thev bound Tearltd^* ^°^'' ^''^ ""^^^"^ ^^^^ "'' '"^ business. There they are always DIRECTIONS TO TEACHERS AND LEARNERS. • 2. After committing to memory the preceding Rules for Journalizing you will transcribe into your Day Book the first page of the one following. Then study the Journal entries applying the preceding rules for that purpose, and refer from each entry in the Journal to its final disposition m the Ledger. Endeavor to understand the nature of aU the Accounts there before you go farther, for it is that book that regulates the wT!i; ^''^'ffo^^ *e fet thing to be known is what accounts in the Ledger ar^ entitled to debits and credits out of the transaction. Afterwards you can frame your Journal entry without difSculty. •' ' r The teacher will then take the printed Journal and hear the class, each pupil in turn give the Journal entries verbally from their own manuscript Day Books reQuto.^ their answers at the same time to the interrogatories at the bottom of the page ° ^' ^^Z fi^Jh?^ ^° f ^'' Batisfactorily, they are prepared to write the Journal. This from thf nrt,lrT "" f"" °^° ,"'^°"«<"- P' ^<^J Book, without any farther assistance !.,fL fP^ '^ f °*'' "P^^/'ates or loose sheets of paper ruled to the Journal pattern, taking care to extend the debit and credit amounts in their proper columns and upon the same hne with their respectire accounts. The teacher ^should require each pupil to repea this operation upon the slate or waste paper until he can wrS th" Journal correctly without farther assistance from his teacher.^ His printed^oXou-ht Iti '"•das'de during this operation. After this they will have no difficulty in Jour h»i 'i^. ^*"■^ly ^""^ dir^t into their Journal, in all respects as they will ^terwarl have It to do m business. When this is done with the Lt page of the Day B^k duTto^"L:C-p 32 ''"' '™"''°" '" "'"' "'" '^ '"""' ^'''^^^ '^' I""- ^' ^$^^2?'"''l*''^^'^* I^^P °*' ^^^ '^"'"™"'^ ""'J Balancing the Ledger according to the 7. Let me caution all teachers against allowing their students to make their Journals or ear" iri hfetfc bv' '^'"'' ^T "''' P^'"**'^ '""'''• ^l^^^ ^'^^^ ^ZuT^t to *■ "^both'wk^ IZ T ^n M° Tf'' ""'' ^f '"'•■■^'^"y '='"°P"«'^ ""-J check-marked on Tl k! ^- ?° *?.I'«'lg«' a small point (■) is best, as it does not deface the page. No person can keep his work correct long without checking. When you have no figures for your cent columns avoid the useless practice of fillinf them wkh c?phe« which are in your way when adding the column. wnn cipners, .27 NEW YOBK, November 1, 1866. / * My effects, commencing business this day, consist of — Cash in hand $1000. Charles Page owes me on his note . . . $500. R. Manly owes me on his bond and mortgage . 1500. 2000. 3000 & / Bought for Cash of William Hay Merchandise per Invoice Sold James Carter for Cash — 60 pieces of two Blue Prints . 70 n Fancy Stripes @$3. . // 4. $180. 280. 10. ■ Rec'd Cash from R. Manly for his mortgage . Also Interest due on the same . . . . $1500. . 90. 14. Bo't of A. Stuart & Co. on my note @ 60 days Merchandise ^ Invoice • Bought of Warden & Bell Merchandise ^ Invoice . I Paid them Cash on account of the same The balance to their account @ 2 months == 25. == . $800. 200. ' Sold William Hay— 5 hhds. Sugar, 1180, 1220, 1300, 1100, 1200 = 6000 lbs. Tare 10 per cent, off . . . 600 Net 5400 lbs., @ 5 cts., $270. 120 pieces Furniture Prints . . . @ $3. 360. 630. Rec'd Cash on account of the same The balance to his account @ 2 months . . 330. 30. • Paid Cash for Store Rent, Advertising, &c. // Sold for Cash to J. Beck k Co. the remainder of my Merchandise in hand 240 pieces Merrimac Prints . . . . @ $3. $720. 30 // Furniture //.... // 2. 60. // Paid Cash Jennings & Co.'s account for Clothing for my private use ,,.|; Stock must be here credited for the amount of my property according to Rule 2, and Cash and Bills Receivable are debited by Rule 5, these amounts being now received into these books. f \c^^^^ *^*°^ received, is here debited for the whole amount; but there being nothing delivered for the 590, Profit and Loss is credited according to Rule 8. Bills Receivable can only be credited for the fjace of the bill. 3. Although Warden & Bell might have been here credited for the whole Invoice, and debited for the payment upon it, yet the Journal entry we have given is more concise and equally correct. 4. For the reasons given in the last note, Hay is here only debited for the balance due on this pur- chase. If he had made this payment on a former account, then it must appear at his credit, and the whole of this invoice at his debit. 5. We have received nothing in exchange for this cash, and there being no peison responsible to us for it, we must debit Profit and Loss. 6. The figures in the left marginal column of the Journal are the pages of the Ledger, and are written as the posting proceeds. They serve as post marks to show how far that operation is com- pleted. 7. As the Day Book entries are journalized, each is marked off in the margin, as the above two first entriee. 28 600 460 1590 300 ^ 60C 300 150 780 130 NEW YORK, November 1, 1866. L.F. 1 2 1 1 2 * Sundries, Dr. to Stock account Cash account . Bills Receivable account* DBS. Cms. 1000 . 2000 3000 5. Mdse., Dr. To Cash 600 600 2 1 2 1 3 1 2 Cash, Dr. . To Mdse. 460 460 10. * Cash, Dr. to Sundries To Bills Receivable n Profit & Loss 1590 14. Mdse., Dr. . To Bills Payable 1500 90 300 300 1 » Mdse., Dr. to Sundries 2 To Cash . 2 n Warden & Bell 800 1 2 2 25. * Sundries, Dr. to Mdse. Cash . William Hay . 30. 3 * Profit & Loss, Dr. . 2 To Cash . 2 1 8 2 330 300 150 200 600 630 150 Cash, Dr. To Mdse. . • • Profit & Loss, Dr. To Cash . • • 780 130 780 130 I ^' ^or'?hKmount7°* """*'*'' *°"^ ^^^ ^""^ ^"' Receivable account debited J ^" ^or'on%5S? ^"''""^ ^°'" *^' ''^'''^ *'"°°°*' ^^'^ ^'"^ Receivable credited ^ ^payment?*"* ^"^^'' * ^^" ^°'' *^^ ""^^^^ ^°^°>'=«' *°^ <^«^" t^^^™ ^^^ t^e *■ ^on SounU °*^ *"°' ^^ ''*'°^® ^^''''^' """^ '"^^ ^^^ P*y"^°* ^ ^"« "^^^ « SS^**^®^** ^™** * ^^ ^0^ *^"8 amount? '• wtnr?theyTs?rt°d?^' '''' ^^'^^ """^"^^ '^^'"™° «^ *^« ''^'^^'^ -"^ 7. What is done to show how far the Day Book is journalized? 6vtrfLe&Ttirll?s^?.r.^^^ ""^""^ >« understood after retafn it ' ' Purposes of instructibn, we deem it advisable to 29 NEW YOBK, December 1, 1866. Received by the packet Gladiator, Pratt, master, from London, an Invoice of Prints, shipped me by R. Morris, by my order and for my account amounting, per invoice, to £450 sterling, due 31st inst. . 2000. Paid freight and duty in Cash 500 10. Received Cash from Charles Page for his note in my favor == u. , * Sold James Day — 300 pieces London Chintz Muslin, @ $4 30 n Cambric Handkerchiefs, @ $10 Received Cash on account of the same . u his note @ 3 months for the balance . 81200. 300. 81000. 500. 81500. • Received from the Executors of my Father's Estate, House and Lot 44 Broadway, valued at 815000. C^^^ 10000. 21. * Discounted for C. Banks his note @ 1 month for 81000. » tf C. Murray // // 9 months for 1500. 82500. Deduct 33 days' Interest on Banks's note 5.50 » 9^\ months' Interest on Murray's note 68.25 73.76 Net proceeds paid them in Cash Bought of Charles Page Mdse. per Invoice . . 82100. Paid him Cash on account • Gave him my order on William Hay, payable in Mdse. for the balance . 82000. 100. 25. Paid Cash my bill for boarding at the Astor House to date 31. • Paid William Hay Cash on loan for 30 days . . . 82200. Sold him, on account, 3 pieces best black Broadcloth, viz., No. 1144. 24?, 1004. 22^ and 909. 23. = 70 yards, @ 810 700. » Gave Warden & Bell my order on William Hay, payable in Cash, for n Paid Rents, Clerks' Wages, &c., in Cash . rS fi M-^iT'?"® ('''■ ^^^^ " *^°*** ^"^ ^'^ng " home* as well as the purchase money-recollect 2 We do not hITt^ '' """"^ "^^^ ^""^ *^^' ^«<=*"«« that »« a" ^« get l'^ debt to him JruiVI) for it We rlnnY. ""^ ^If^o'^pt for the balance of his purchase, because we receired his note o on. ^ «* ^^^^^^^ '^^°''<* ^o Claims for the same sum. L^ «lf" ^\^-''*'''°* '^ ''""y intended to record our gains and losses by business- and bs wa have not earned this property by our business, it would not be proper to cam- t to ?hat accSint 4 rhfTon^LTJ°'l\^ '° '^r^**. ™^« °« diflFerence in the final closing^of theStock account ^ 4. The discount upon these notes is a gain to us, we therefore credit Profit and iSss for i t 8 Wll ^nft h' "^^'J'Vr.^^' ^'•^«^' ^«<=*"«« ^« get in debt to him for payinrthis i^ount for us '• "'L^rt^^ecoll^fRut 3" ""'' "^^ ^'"^ "*' Merchandise. because'hJgei into^rjeVrfoT'the '' ""^btre^^e^gefiL^^^rfcrthTsIL?^^^^^ ^«^* '^' *^^* ^°^-'^*' ^^' "^^ ^« -^*«^ 30 >s 2500 500 1500 ) 25000 2426' 25 2100 50 2900 100 103 75 NEW YORK, December 1st, 1866. 1 2 8 » Mdse., Dr. to Sundries To R.Morris . u Cash 10. 2 1 1 2 1 1 3 2 1 2 3 1 2 2 3 2 2 2 1 Cash, Dr. To Bills Receivable II. DBS. 2500 500 * Sundries, Dr. to Mdse. Cash Bills Receivable \ ' Sundries, Dr. to Stock . House and Lot 44 Broadway Cash . 1000 500 2000 500 21. * Bills Receivable, Dr. to Sundries To Cash .... /' Profit & Loss * Mdse., Dr. to Sundries . To Cash . 'f William Hay . 25, 15000 10000 2500 500 1500 25000 2100 2426 25 73 75 Profit & Loss, Dr. . To Cash 2 2 3 2 ============== 31. • William Hay, Dr. to Sundries To Cash . . . . // Mdse. . . ' * 50 2900 » Warden & Bell, Dr. To William Hay 2000 100 so Profit & Loss, Dr. To Cash . 100 ^' ^io^r^^''^''' ^^^^''^ ^""^ ^°y "^'•^ t^*° th« ^"»o»nt for which we credit 3' ffiimoSnt^h^in^^""'*-^*'^ *^ ""P*^^ ^*^«°«« °f tl^i« invoice? notes? ^'' ""^^^'^ ^""^ ^^^ ^3.75, it being a deduction from the k S5^ ^^'J® ^'i^^* H*y for this order? »• Su^ !f ??^®^^*ed in this case? 7. Why debit Warden & Bell and credit Hay for this order? 31 2200 700 103 ^ 75 100 103 75 •/ ON OPENING AND CLOSING THE LEDGER. When the pupil has Journalized the first Day Book and afterwards carefully compared his Journal with it, he will open his Ledger. In a clean text hand write the title of each Account, giving it five or six more lines of space than on the printed Ledger. Insert the abbreviations Dr. and Cr.^ at the top of the page only. Then post the Journal into the Ledger. Before attempting this, it will be well to compare the entries from the printed Journal to the Ledger. In expressing the entry upon the Ledger, it will be seen that a debit is always To that Account which receives credit for this sum, and the Cr. Account expresses the same entry By the Account that was made Dr. for the same sum. Where several accounts are referred to, the expression is either To or By Sundries. But the learner will acquire the process more readily by seeing it done on his printed Ledger than by any other means. But let the amount always be first inserted, the date and other par- ticulars afterwards. When the Journal is posted,' compare and check every entry from it to the Ledger, check-marking them thus |/ with a pencil on the inner left-hand marginal line of the Journal and on the double line on the left of the money column on the Ledger. Then add up all the Accounts' and take ofi" a Trial Balance, both sides of which must come out equal. — See form at the end of the Ledger, page 36. After studying the oral exercises under each Account upon the Ledger until he can answer them readily, the pupil is prepared to close his Ledger. Though this is the most difficult part of the process of Book-keeping to understand, I think the following method of elucidating it will make the matter intelligible. By closing a Ledger we make every Account upon the face of it even. *The purpose of this is to dispose of all the Balances in such a manner as to exhibit and record the increase or decrease of Capital up to the present time. I have found by experience that the most simple and rational explanation of the Balance Account will be found in the following process.* Let the pupil be required to make up from his Ledger, upon waste paper, a list of his effects thus : — From the Bills Keceivable Account I find I have Notes in hand amounting to $500. By the Cash Account, I find cash in hand ...... 3,080. By W. Hay's Account, I perceive he owes me . Making the total amount of my effects .... By Bills Payable Account, I find I owe on my Notes 300. And to Warden & Bell, By their Account, I owe . 600. Am't I owe, 900. Leaving my present Net Capital ...... 300. 3,880. 2,980. Now, compare this statement with our Balance Account, and I shall be much mistaken if it does not give you a clear insight into the nature and object of that Account. You will DOW close all the Personal and Property Accounts, ruling them off to the same pattern given on our Ledger, transferring the Balances at the same time to the proper side of the Balance Account. When this is completed you will find the present Net Capital exhibited by the Balance Account as in the above statement, $2,980, which according to the Stock Account is $20 less than the Capital we opened the books with. You find the particulars of this loss at the Profit & Loss Account. Close that Account into Stock and then you will find that the Stock and Balance will exactly close each other — a result that must always take place when the operations are correct, because all gains must produce a cor- responding increase of property, at the Dr. side of Balance, and through the Profit & Loss Account the credit side of the Stock is increased exactly to the same amount. Losses affect these two Accounts through the same channels also precisely to the same extent. These remarks apply to the first set of the following Books. After bringing all the Balances down and posting the second set, the process of closing is the same as in the first Balance. 1. Where are the abbreviations Dr. and Cr. placed? 2. What 13 the first thing to be done after posting the Journal ? 3. What next ? 4. What is the purpose of closing the Ledger ? * See also Notes 2 to 6, page 18. And directions for ruling, pp. 56 and 57. a2 Dr. (What I Owe.) STOCK ACCOUNT. (My Effects.) Cr. i 1866. ! I Nov. 80 Jo Profit & Loss* // Balance Dec. 31 To Balance 1866. OY. 1 By Sundries 3000. 1 ao. *■ 80 By Bal. bro't down 'ec. )[4 // Sundries 27,980. n u Profit & Loss f. 3 2980 25000 520 ^8500 1. What is posted to the Dr. side f 2. What to the Cr. side 3. When is the account closed ? 4. How does it then close ? 5. How do we mark the transfers? 6. YThy are the balance entries red? 1. What I owe. 2. The amount of my capital. 3. After the Profit & Loss is closed. 4. To or By Balance. 6. F. or Folio. 6. Because they begin the new account. (Pnrehases.) MERCHANDISE. (Sales.) 1866. Nov. i 5 14 10 Dec. 1 to Cash // Bills Payable // Sundries noo. /r Profit & Loss f. To Sundries I // // i600. // Profit & Loss f. 600 300 800 170 1870 2500 2100 600 il866. I Kov. 5 By Cash 25 // Sundries 80 // Cash 5200 1. What is posted to the Dr. side ? 2. What to the Cr. side? 3. How does it close if all be sold? 4. How if part is unsold ? 5. How do we find the $3000 balance ? 1870. 1700. Gain na ^ec. |14 By Sundries 81 : It Wm. Hay ff Balance S900. BOOO, 460iL f. Gain 600. 460 630 780 1870 1600 700 3000 6200 - 1. The cost and charges of purchases. 2. The sales made. 3. To or By Profit & Loss. 4. By Balance, and To or By Profit & LoflS. 5. Inventory. See p. 59. (Notes Reeeived.) BILLS RECEIVABLE. (Notes passed away or lost) 1866. Nov. 1 To Stock 9D0O. 1500. 600. 10 ^0 Bal. bro't down Dec. 14 // Mdse. 21 i // Sundries 12 S600. 500. 3000. 2000 2000 600 500 2500 3500 1866. I pov. I 1. What does the Dr. side of this account show? 2. What does the Cr. side show ? 3. How will it stand when all notes are passed away? 4. How doc« it always close? 30 [)ec. 10 31 By Cash II Balance By Cash // Balance fol. 1 3 1600 '00 1 2000 _ fol. 2 3 600 3000 3500 1. The notes received. 2. Those passed away or lost. 3. Self balanced. 4. By Balance for the notes on hand. • The rules for posting do not apply to the closing entries. 33 2 Dr. (Money Received.) CASH. (Money Paid or lost.) Cr. 18M. Nov. Dee. i 5 10 25 80 10 14 To Stock Mdse. Sundries Mdse. 4160L loeo. 9060. To Bal. bro't down V Bills Receivable // Mdse. // Stock i*gO; 1 1000 // 460 H 1590 n 330 u 780 4160 1 3080 ' 2 500 // 1000 i // 10000 i 14580 1 1. What does the Dr. side of this account show? 2. What does the Cr. side show? 3. What does the difference represent? 4. How doea the account close ? 5 How will it stand when all your money is paid away? 6 Why can the credit side never exceed the debtor? 1806. Nov. 5 14 80 Dee. 1 21 25 31 1 By Mdse. // // // Profit & Loss h If loeo. // Balance fol. By Mdse. // Bills Receivable u Mdse. // Profit & Loss N William Hay // Profit & Loss 7280. H Balance fol. 1 w H H 3 2 // // n It 11 600 200 150 130 3080 "ilBOT 500 2426 2000 50 2200 103 7800 146S0 26 75 1. The Dr. side shows all cash received. 2. The Cr. side shows all cash paid away. 3. The difference represents the balance in hand. 4. It always closes By Balance. 6. Wlien all is paid away the account must be even. 6. Because we cannot pay away more than we receive. (My Notes Paid.) BILLS PAYABLE. (My Notes passed away.) 1808. Nov. Dec. 30 ! To Balance 31 To Balance fol. foL 1. What do the Dr. and Cr. sides of this acc't show? 8. What does the difference represent? 8. How does the account always close ? 1866. I Nov. 14 By Mdse. 80 By Bal. bro't down 1. The Dr side is the amount taken up, the Cr. side the notot « passed away. 2. The balance I still owe on my notes. 3. Always To Balance, never By Balance. (My Acct. against him.) WTT.T.T A M H A Y. (His Ac ft. against me.) 1886. Nov. 25 80 81 i To Mdse. 1 2 300 1886. Nov. Dee. 80 21 81 By Balance fol. 3 2 // 3 300 Dee. 1 To Bal. bro't down // Sundries '"g- aooo. 800 2900 1 By Mdse. u Warden & Bell aoo. // Balance fol. 100 100 3000 ■fr 3200 3200 1 1. What does the debit and credit side of t 2. How does it close ? his at scount Bh( >w? 1. Explaii 2. All per led in the parenthesis at the he sonal accounts close either To c sad. )rBy Balance. WARDEN & BELL. laesL Nov. 30 31 To Balance fol. 3 2 3 600 1866. Hov. 14 30 By Mdse. 1 600 Dee. To Wm. Hay // Balance fol. 100 500 By Bal. bro't down 600 600 600 BOBEI IT MOBI US. 18ML Dec. 31 To Balance fol. 3 2000 1 Deo. 1 By Mdse. 2 2000 . 34 fl Dr^(ltsValue or Cost.) HOUSE, 44 BROADWAY. (What it brings me m.) Cr 1866. Dec. 14 To Stock 1. How does this accotmt close if the property be on hand? 2. How if sold? tr IT J 1866. Dec. 31 By Balancf I'oL 3 :K 1. By Balance if you still own the propertv. 2. If sold close To or By Profit k Loss. ' (Expenses and Losses.) PROFIT & LOSS. (Gaini.) 1866. Nov. 80 Dee. 25 81 To Cash II u KetLoa Ml. To Cash 2 // // 158.76 2 // Stock for net gain, f. 1 150 180 280 50 103 520 673 75 75 1866. Nov. 1. What do the Dr. and Cr. sides of this account show? 2. What accounts close into it? ?* S^®*^ ^^ ** closed, and into what account does it close? 4. What does the difference between the sides represent? BALANCE (ly Effects and Debts dne me.) 1866. Nov. 80 Dee. 81 To Bills Receivable // Cash // Wm. Hay Net capital 3980 f. 1 2 To Mdse. fol. // Bills Receivable // Cash // Wm. Hay m«»^ •• House Net cap. 28600. 1 2 8 500 8080 800 3880 3000 3000 7300 3000 16000 31800 1. What is transferred to the Dr. side? 2. What to the Cr. side? 3. What does the diflFerence represent? 4. How does the account close? 6. Is Stock or Balance first closed? Dee. 10 By Cash 80 21 31 // Mdse. 380. fol. n Stock, net loss fol. By Bills Receivable 11 Mdse. «gg fol. Net Gain 52a I 1 1 1 90 170 20 1 1 280 2 1 78 600 75 1 678 76 1. The Dr. side shows all expenses and losses, and the Cr. side all gains. 2. All accounts exhibiting gain or loss are closed into this account. 3. This is the last account closed but two. It alwavs c1o«m into Stock, never into Balance. 4. The difference represents the net gain or loss. ACCOUNT. (What my concern owes.) 1866. Nov. Dee 30 31 By Bills Payable Warden & Bell Stock for net capital 1 // 900. By Bills Payable II Warden & Bell n R. Morris M Stock for net capital 2800. 1. All my effects. 2. All amounts that I owe. 3. Net capital or net insolvency. 4. By Stock for net capital, or To Stock if I 5. Usually the Stock first. •m inaoIveBt. 35 ProofSheetNoT.80, 18«6. Drs. Crs. Proof Sheet Dec. 81, 1866. Drs. Cbs. u. 'ii ii Stock Mdse. Bills Receivable Cash Bills Payable Wm. Hay Warden & Bell Profit & Loss f. Stock f Mdse. Bills Receivable Cash Bills Payable Wm. Hay Warden & Bell R. Morris House in Broadway Profit & Loss Note.— These proof sheets or trial balances are taken off for the purpose of ascertaining^ it both sides of the Ledger are alike in amount. If this sheet comes out correct, your Ledger will be sure to balance; but if there should be a difference between its sides the Ledger will certainly not balance until the errors are sought out and rectified. ' Teacher's Examination.— After closing the first of the preceding sets, the pupil should be able to answer his teacher the following questions. If he cannot readily do so he should refer again to the instructions under the accounts. If he does not wish to cheat himself out of the instruction that he desires to obtain, he should by no means consult the key, — that being intended for teachers only, those who teach themselves included. Q. 1.— What was your net capital at the time of closing, and which of the accounts show it ? -What was your net gain or loss, and which of the accounts show it ? -What was the whole amount of your gain, and what was the whole amount of your loss. -What did you gain or lose on your Merchandise account? -What was the amount of Merchandise purchased ? -What was the amount of your sales ? -What amount of Merchandise was there on hand, or was there any ? -What amount of Cash on hand ? -What amount of Bills Receivable on hand ? -What do you owe on your Notes ? -What is the whole amount of your debts, and what account shows it? -What is the whole amount of property you now possess, and what account shows it ? What amount of property did you possess at the time of opening the books and what account shows it? ' What were your average daily sales for the month of November, the time your books were open, allowing there were twenty-six business days in it ?* What was the gain per cent, on your total sales ?-(■ The pupil should, when he balances his Ledger the second time, answer the same ques- tions upon the balance of each account. ^ 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.- 14.- 15- » Found thu»-Total sales per Merchandise, Crs. is $1870 -- 26 = 71 fi average daily sales. 36 SET II.— DOUBLE ENTRY BOOK-KEEPING. EXEMPLIFYING THE TRANSFER OF BUSINESS FROM THE PRECEDING TO THE PRESENT SET. THIS SET EMBKACES ALL THE MOST APPKOVED FORMS OF AUXILIARIES, CONNECTED AS SUCH WITH THE PRINCIPAL BOOKS. Also, concise and comprehensive rules for Journalizinsr, practically illustrated with ORAL EXERCISES. The written exercises embrace — Illustrations of Buying and Selling Merchandise on private Account and on Account of others. Buying and selling the same on joint Account. Importing and Exporting on private Account, on Account of others, and on Account of ourselves and others in Company. Receiving and forwarding Merchandise. The management and settlement of Executors' Accounts. Buying, Selling, Remitting, Collecting, Discounting, Accepting, and Paying Bills of Exchange. SHIP OWNERS' ACCOUNTS. As sole owner, as part owner, and as agent for the owners, exemplifying a dividend and settlement of their Accounts, the adjustment and settlement of Marine Losses, and of Loss by Fire. We have so studiously avoided lengthening the process of instruction by any unnecessary entries, that probably no two entries can be found in the set which do not illustrate a different application of the principles of the science. On the other hand, the utmost care has been taken to carry instruction into every department of the most extensive and diversified commerce, to omit no information necessary for forming the most accomplished Accountant. The whole is condensed into about twelve pages of Day Book and Journal accompanied with such mental exercises as, if attended to, will leave the learner no means ot getting through the written exercises without mastering the subject. DIRECTIONS TO TEACHERS. It has been before stated that the preceding set is only designed as an introduction for those altogether uninitiated. Those who understand the disposition of the debits and credits m the Ledger, will, after a perusal of the initiatory set, commence with the study ot the following RULES AND ORAL EXERCISES. They afterwards study the defini- tions and answer the interrogatories upon the Auxiliaries. In some cases it may be nece<. sary to write the Cash Book and Bill Books, but most of learners will find no difficulty in applying them without this trouble. The process of teaching those who have been through the introductory set and those who commence here, is hereafter in all respects the same. " 37 I! SET II.— DOUBLE ENTKY BOOK-KEEPING. RULES FOR JOURNALIZING, WITH ORAL EXERCISES. Note. — The pupil should lay a sheet Give the general rule for debits and credits. Repeat the general rule for open- ing books. Examples. QuES. 1. If you begin business with a capital of $7000 cash, what will be your Journal entry? 2. If you have cash $7000, merchandise $3000, W. Hay owes you $5000, and you own the brig T^oy worth $5000 ? 3. Suppose you owe at this time on your notes and bonds $2000, to R.Morris on acct. $3000. 4. State more particularly what is meant by the term "Sundries to Stock." LESSON I. of paper over the answers while he reads the questions to himself. Rule I. — The debits and credits arising out of every transaction must be equal in amount. Rule II. — The Stock account represents myself, and must therefore be debited for what I now owe and cre- dited for what I now possess. Ans. 1. Cash, Dr $7000 7000 3000 5000 5000 5000 $7000 20000 2000 3000 5. Explain the full mean- ing of the expression "Stock to Sundries, your 3d answer. in II Hi h^ Repeat the rule for debiting per- sons. Examples. 6. If W. Hay buys $600 worth of mdse. of you on Book acct. ? 7. If you pay R. Morris $1000 cash which is at his credit on your Books ? 8. If Morris make an abate- ment of $100 from the above acct. and pay him $900 in full for balance? Repeat the rule for crediting per- sonal accounts. Examples. 9. SupposeW. Hay pays you the above $600 in cash ? If he fail and you receive $300 cash and lose the balance ? 10. To Stock, 2. Sundries to Stock, Cash, Mdse. W. Hay, . Brig Troy, 3. Stock to Sundries, To Bills Payable, R. Morris, . 4. It may be stated more fully thus : Several accts are Dr. to the Stock acct. which is credited for $20000 The Cash acct. is Dr. for . . $7000 And the mdse. acct. is debtor for 3000 And Wm. Hay's acct. debtor for 5000 And the Brig Troy's account is debtor for . . . . 5000 5. To express it in full we might say : The Stock account is debtor to several accts. for $5000. viz., it is Dr. to the Bills Payable account^ which is credited for . . . $2000 And it is Dr. to R. Morris's account, which is credited for . 3000* Rule III. — When he gets into my debt he is Dr. for the amount. When I get out of his debt he is Dr. for what I pay or cease to owe him. Ans. 6. Wm Hay, Dr. To mdse. sold him on acct. 7. R. Morris, Dr. . To Cash paid him in full, 8. R. Morris to Sundries, to close To Profit & Loss, . // Cash paid him in full, Here we only pay Morris $900, but we debit him for $1000 — what we cease to owe him. Rule IV. When I get into his debt he is Cr. for the amount. When he gets out of my debt he is Cr. for what he pays or ceases to owe me. Ans. 9. Cash, Dr $600 To Wm. Hay in full, . . 600 10. Sundries to Wm. Hay, to close acct 600 Profit & Loss for abatement, . 300 Cash received in full, . . . 300 Here you have only received $300, but the rule re- quires you to credit him for $600 — the amount he ceases to owe you. $600 1000 1000 $600 1000 100 900 • While this and the preceding answer will give the learner a distinct conception of the meaning of all similar Journal exores. Kons, these expeditions at the same tune show how much accountants have abbreviated common language without obscurina their meai»u»g; for while the roles are observed no language is less liable to be misunderstood than that used by accountanti 38 SET II.— DOUBLE ENTRY RULES. Quest. 11. If Hay balance his Book account by giving you his note for $600 ? 12. If he afterwards fail and you lose the am't of the note ? Repeat the general rule for re- ceiving and delivering property. Examples. 13. If you sell merchandise for cash $500? 14. If you sell it for the pur- chaser's note ? 15. If you pay your own note for $1000, half in cash and half in merchandise? 16. If you buy merchandise for cash $100 ? 17. If you give your note for the same purchase ? 18. If you buy $400 worth of merchandise and pay the amount in other merchandise from store? Give a more particular rule for debiting property accounts. Examples. 19. If you buy the brig Tribune for $12,000 and pay $6000 in cash,and give a Bottomry bond on the vessel for the balance ? 20. Suppose this vessel becomes yours by the legacy of a de- ceased friend ? 21. If you pay cash $1000 for repairing her ? Give the rule stating when pro- perty accounts are always credited. Examples. 22. If you receive $1000 cash for freight of Brig Tribune ? 23. If your agents Taylor & Co. advise you that they have re- ceived $1500 cash for freight to New Orleans ? 24. If you sell the Brig Tribune for $16,000 and receive in payment a dwelling-house in 2d street and a Bill of Ex- change on London for $6000 ? 26. If you lose the Brig Tribune ■ by fire or shipwreck before she is insured ? 26. If you present $500 cash to a friend ? Ans. 11. Bills Receivable Dr. . . 600 To Wm. Hay for his note to close acct. 600 600 12. Profit and Loss Dr. . To Bills Receivable, . . . 600 Rule V. The thing received Dr. to the thing delivered. 500 13. Cash Dr . To Merchandise, 14. Bills Receivable Dr. To Merchandise, . 15. Bills Payable to Sundries, To Cash for money paid, II Merchandise for sale, 16. Merchandise Dr. To Cash, .... 17. Merchandise Dr. To Bills Payable, 18. Merchandise Dr To Merchandise, . . Some contend that any entry of such transactions is unnecessary — ^that it is like giving change for a $50 bank note. But if such transactions are not recorded your merchandise account will not show the amount of your purchases nor the amount of your sales. Rule VI. When property becomes mine it is Dr. for its cost or value. When it costs me anything afterwards it is Dr. for that cost. 19. Brig Tribune to Sundries, . 12,000 500 1000 100 100 400 500 500 500 500 100 100 400 12,000 6000 6000 12,000 To Cash, // Bills Payable, 20. Brig Tribune Dr. To Stock, . Here the property is Dr. for its value although it costs you nothing. 21. Brig Tribune Dr. . . . IQOO To Cash, 1000 Rule VII. When it brings me in any thing it is Cr. for the amount. When it ceases to be'mine it is Cr. for its value or what I receive for it. 22. Cash Dr looo To Brig Tribune for Freight, 23. J. Taylor & Co. Dr. . . . 1500 To Brig Tribune, for freight collected, 24. Sundries to Brig Tribune, House in 2d street, . . . 10,000 Bills Receivable, . . . 6,000 1000 1500 16,000 25. Profit and Loss Dr. . . . 10,500 To Brig Tribune, to close account, ' 10,500 26. Profit and Loss Dr. . . . 500 To Cash, . . . . 500 Thus, you perceive, when property ceases to be yours, either by sale, loss, or giving away, it is to be credited' 39 \ il It SET II.— DOUBLJL ENTRY BOOK-KEEPING. RULES FOR JOURNALIZING, WITH ORAL EXERCISES. DOUBLE ENTRY EULES. Repeat the Rule for debiting and crediting Profit and Loss accounts. Examples. QuES. 1. If you lose your purse with SlOO cash in it? 2. If you find S500 cash and cannot find the owner ? 3. If you pay cash for a new suit of clothes 850 and 8lOO for new house furniture. 4. If you lose $1000 worth of mdse. by fire, uninsured ? Repeat the Rule respecting Bills of Exchange, Drafts, Orders, &c. 5. What is a Bill Receivable ? 6. What is a Bill Payable? 7. If you draw on R. Morris for $100 and sell the bill for cash at par ? 8. If you sell at 5 per cent, pre- mium? 9. If you sell at 5 per cent, dis- count ? 10. What will be Morris's entry when he accepts this bill ? 11. If Morris draw on you at sight in favor of S. King, for $1000, and you pay the bill in cash ? 12. If he draw at 60 days' sight in favor of Wm. Hay, and you accept ? 13. Afterwards you take up this acceptance with cash ? 14. If Wm. Hay draw an order on you for $50 in favor of J. Toole, which you pay in mdse. from store ? 15. If you owe James Day $20 and give him an order on Hay payable in mdse. for $20 ? 16. If you buy a Bill of Ex- change for $1000 for cash at par? 17. If you buy at 5 per cent, pre- mium ? 18. If you buy at 5 per cent, dis- count ? LESSON IL Rule VIII. Profit and Loss accounts are always debited when I lose and credited when I gain. Ans. 1. Profit and Loss, Dr. . . . $100 $100 500 150 To Cash, 2. Cash, Dr 500 To Profit and Loss, 3. Sundries to Cash, .... Profit and Loss or Expense acc't for the clothes, 50 House furniture for the articles bo't 100 . 4. Profit and Loss, Dr. . . . 1000 To Merchandise, .... 1000 Rule IX. Credit a person always when you draw on him on your own account, and debit him when he draws on you on his account.* 5. Any obligation on paper which I hold against others. 6. The same kind of obligations which I have given to others, and which they are holding against me. 7. Cash, Dr loo To R. Morris, 8. Cash to Sundries, .... 105 To R. Morris for the bill, Profit and Loss or Exchange acc't. for the premium, . 9. Sundries to R. Morris, . Cash for the net proceeds, . 95 Profit and Loss or Exchange for Discount, .... 5 10. Duff, Dr 100 To Bills Payable, 11. R. Morris, Dr. To Cash, 12. R. Morris, Dr. To Bills Payable, 13. Bills Payable, Dr. To Cash, 14. W. Hay, Dr. To Merchandise, 15. James Day, Dr. To William Hay, 16. Bills Receivable, Dr. To Cash, 17. Sundries to Cash, Bills Receivable for the Bill, Profit and Loss or Exchange for the Premium, 18. Bills Receivable to Sundries, To Cash for money paid, Profit and Loss for Discount, 100 100 5 100 1000 1000 1000 50 20 1000 100 1000 1000 1000 50 20 1000 50 1000 1000 1050 Hi 950 50 it ^^lt'^TaTon";?^e^V5.r^^^^^^^^ and the two following qnestions; otherwise on one or the other of the Bill AccouX ^ ^" '''^ ''"^ ^® '*"'" "P°° ^ correspondent mnat appear 40 Quest. 19. If you sell this bill at 10 per ct. premium for cash ? 20. If you sell it at 10 per ct. discount? Give the rule for keeping the accounts of consignments received. 21. What do you do with the In- voice of the property? Examples. 22. If you receive $1000 worth of goods from Morris for sale on his acct. You give bonds for $500 duties and pay frt., &c. in cash, $100? 23. If you sell $100 worth of these goods for cash? 24. If Morris draw on you at sight for $30.0 and you pay the draft, $100 in his own goods, $100 worth of your own goods, and $100 in cash? 25. How is the net proceeds found on any account sales ? 26. Suppose Morris's goods all sold for $2000. You have paid charges $700, your com- mission is $100, leaving the net proceeds $1200. How do you close the sales ? 27. Where should this entry be first made? 28. Why not credit Morris for the amount of the Invoice of the above consignment? 29. If he draw on you for $500 on acct. of the sales? Give the rule for keeping acct. of property you consign to others. Examples. 30. If you ship by the Herald and consign to R. Morris, London, for sale on your own acct. Mdse. 4000, pay charges in cash, $400, give your note for insurance, 600 : = $5000 ? 31. If you draw on Morris for $500 on % of this consignm't ? 32. If he return you acct. sales $6000, with a remittance in specie in full for same ? 33. If he send you the acct. sales without the remittance ? 34. If you receive acct. sales, $6000, and before making an entry of the returns draw on him and sell the bill for cash at 8 per ct. premium ? Ans. 19. Cash to Sundries . . . 1100 To Bills Receivable . . . 1000 // Profit & Loss, for premium . • 100 20. Sundries to Bills Receivable . . 1000 Cash for net proceeds . . . 900 Profit & Loss for the 10 per ct. Dis- count 100 Rule X. — Debit the owner's Sales for all charges incurred, and credit the same account for what the pro- perty sells for. 21. I enter a copy of it on the Invoice Book, but make no other entry of it. 22. R. Morris's Sales to Sundries . . 600 To Bills Payable for the bonds . 500 // Cash paid for freight, &c. . 100 23. Cash, Dr 100 To Morris's Sales ... lOU 24. R. Morris, Dr. to Sundries . . 300 To Morris's Sales . . . 100 f/ Merchandise. ... 100 H Cash 100 25. By deducting all charges, including my commis- sion, from total sales. 26. R. Morris, Sales to Sundries to close acct. . . . . . 1300 To Commission .... lOU It R. Morris, for net proceeds . 1200 27. The particulars of such entries must always ap- pear upon the Day Book. 28. Because I do not get in debt to him for any thinw but the net proceeds of what the goods sell for. 29. I debit his private account for all advances made on account of the consignment, and never the consignment account. Rule XL — Debit Shipment or Adventure to such a place for the cost and charges of the investment, and credit the same account for what it brings me in. 30. Shipment to London to Sundries To Mdse // Cash .... // Bills Payable 5000 4000 400 600 31. I credit his private account for it — not the ship- ment to London. 32. Cash, Dr. . . . To Shipment to London 33. R. Morris, Dr. To Shipment to London 34. Cash, Dr. . . . To Shipment to London 41 w 6000 6000 6480 6000 6000 648G i I 'ill t i • I 1 SET II.— DOUBLE ENTRY BOOK-KEEPING. RULES FOR JOURNALIZING, WITH ORAL EXERCISES. LESSON III.— ON JOINT ACCOUNTS. Joint Accounts » or special partnerships imply those operations in which several indi- viduals or commercial houses unite in the purchase and sale of a particular article on specu- lation. Iheir joint interest is confined solely to these transactions, and the parties give themselves no joint title, neither do they become publicly known as a firm. Their sales and sometimes their purchases, are effected by a manager, who generally keeps the account ot tbe same in his own private books; and the partnership terminates for the time with the sa e ot the joint property. The learner must understand that although we cannot avoid calling these connexions partnerships, yet they differ essentially from General Partner- ^IPS, where the parties are legally and publicly known under a firm or title, as Hay, wood & Co., and who contribute a certain capital for the purpose of carrying on a general business for a specified period. j & & ,-J^%'^^T^^'' ?f ^^^jy^J"^ ^^^^^ ^^®P« *^« account « in his own private books under the title ot bales in Co.* If he have more than one in hand, he distinguishes them by prefix- ing to the title numbers, as, 1st Co., 2d Co., &c. » The manager debits his joint account for HIS own share only of the first cost, and for all charges incurred while in his hands, ahd credits the same account for the total sales, for the other partners' shares in the property as well as his own.* f f j The following remarks will be useful in enabling the student to comprehend the transac- tions to which this rule is to be applied. The manner of opening the accounts by the manager as well as the silent partners, will vary according to the manner of making up the joint stock put m speculation. When the manager or any of the partners purchases or furnishes property to the concern, ' each of the other partners must be immediately furnished with a copy ot the invoice; and when the sales are completed, » each one must have a copy of the account sales. The joint stock is generally made up in one or the other of these three ways. 1. When each Partner advances his own Share— Each silent partner keeps his account under the title of » "Adventure in Co.," debiting it for its costf and crediting it lor what It brings him in, precisely as he would a private adventure or consignment. I he manager makes his '' Sales in Co. Dr. for his own share only, and receives the other partners shares as he would consignments. ..cfi ^^- '^n^,?]f'^t^^^ purchases OR FINDS THE WHOLE Stock— " As before he debits bales in Co. for his own share, and he debits each of the silent partners for their share- they at the same time crediting him and debiting their "Adventures in Co." 3. Ir THE Manager's share be paid or put in by one or more op the silent PARTNERS— The manager's debit entry will be as before, " and he credits him or them to whom he becomes indebted for his share, they at the same time debiting him for the same amount. Their own "Adventures in Co.," they debit as before. DOUBLE ENTRY RULES. mirgTA^^^axTbTp^^^^^ what accounts do/s he debit for it. 12. If thJ have aiHo^ aVule tharcan n^vPr^^^^^^^^ circumstances, an awkward and dangerous principle to admit in accounts. Wa n^s l^^created by advance, ifde to JL ..,iXoT:t:Z:'XrX:^r^ ^^ed^ot HanSr^^ri^S^; ^esrn 42 Eepeat the rule for conducting a joint account as manager of the sales Examples. Quest. 1. How does the silent partner keep his account ? 2. If you purchase on your note for your joint acct. with Wm. Hay, $1000 worth of Mdse.? 3. Why not debit sales in com- pany for the whole amount ? 4. What would be your entry, supposing Hay gave you his note for the $500 before you made the above entry ? 5. What would be Hay's entry in Answer 2 ? 6. If he gave Duff his note, as in Answer 4 ? 7. What will be your entry where Hay puts $2000 worth of goods in your store for sale on joint acct. ? 8. Why not credit Hay for the whole $2000? 9. What will be Hay's entry in Answer 7, if he purchase the goods on his note ? 10. If you sell $2000 worth of the above goods, receiving in payment cash $1000, and the buyer's note for $1000 ? 11. If you barter the remainder for goods on your own acct. ? 12. The property being all sold for $3000, and the whole first cost $2000, and your 5 per ct. commission being $150, what entry will close sales? 13. Explain how you find the amts. composing this entry? 14. If you receive from R. Morris, of London, $6000 worth of Mdse. for sale on acct. of him- self, J. Taylor & Co., of New Orleans, and yourself, upon which you pay cash for duties $1000? Rule XII. — Debit Sales in Co. for my own share only of the first cost and for the whole charges incurred while in my possession, and credit the same account for the total sales. Rule XIII. — Debit Adventure in Co. for ltd cost, and credit for what it brings him in. Ans. 2. Sundries to Bills Payable . . $1000 1st Co. Sales, for my half . . 500 W. Hay, for his half . . .500 3. Because Hay becomes legally responsible to me from this date for $500, and must, by Rule III., be made Dr. for the amount. It becomes his property by virtue of our agreement, is at his risk, and if lost by fire or perish by any other means, not in consequence of my carelessness, he will have to pay me this $500. 4. Sundries to Bills Payable . . . 1000 1st Co. Sales, for my half . . . 500 Bills Receivable, for Hay's Note for liishalf 500 5. 1st Co. Adventure, Dr. . . . 500 To Duff . . . . . 6. 1st Co. Adventure, Dr. . . . 500 To Bills Payable .... 7. 1st Co. Sales, Dr. . . ', , lOOO To Wm. Hay ... . 8. Because I do not get in debt to him for any more than my own half. He is still the owner of one- half the amount, and if the property never sells I shall never be accountable to him for any thing but my own share. 9. Sundries to Bills Payable . . . 2000 1st Co. Adventure, for his own share 1000 I^^ff) for his share . 1000 500 500 1000 1000 1000 1000 2000 2000 1000 150 1425 425 10. Sundries to 1st Co. Sales Cash Bills Receivable 11. Merchandise, Dr. To 1st Co. Sales 12. 1st Co. Sales to Sundries, to close acct To Commission tt W. Hay, for his half N. P. If Profit & Loss, for my half gain . 13. The $2000 debit is the difference between the debit and credit sides of the account on the Ledger after the sales are completed : from the Cr. side we have the total sales $3000 — 150 charges = $2850' net proceeds, and $2850 h- 2 = $1425, each share- and $1425 — $1000 (my half first cost) = $425* my half net gain.* ' 14. 2d Co. Sales to Sundries . . . 3000 To R. Morris, for my i Invoice 2000 Cash paid duties . , . iqqq H H ?No^*~''?j** ^^"'S * *Jew speculation, we give it a new title • 2d Co them anTfiadTut'KL*ul"rt"Se\f.' ''*"''"^°* ^** ^'"^^°« °^ ^^^^« ^*^^*« ^^*^°^t r«P«*ted study. He must uuOj. 43 m SET II.— DOUBLE ENTRY RULES. RULES AND ORAL EXERCISES. SET II.— DOUBLE ENTRY ^OOK-KEEPING. « 1 1 Ik '1. I It Quest. 15. What entry will Taylor & Co., New Orleans, make when they receive a copy of the Invoice? 16. What entry will they make when they receive your acct. sales without remittance, their i being $3300 ? 17. What will be Morris's entry when he receives your copy of the sales, supposing you send with it a remittance in specie for the net proceeds ? 18. Suppose William Hay sends you $6000 worth of Mdse. for sale on joint acct., and you make up the joint property to $10000 by adding $4000 worth of tea, what will your entry be as manager, each partner's share being $5000? 19. What will be Hay's entry in this case ? 20. Supposing the whole of the above speculation only pro- duce $5000, leaving the acct. in your Ledger even when the sales are completed, what entry will you make to settle the transaction with Hay? 21. Suppose the goods had pro- duced $8000, and your charge for commission is 5 per ct., how would the acct. close ? 22. Explain how you find the amounts composing this en- try? 23. Supposing the whole specu- lation of $10000 was sold for $4000, — the first cost and your commission being the same as before, — how will you close the account? 24. Explain how the amounts composing this entry are found ? 2000 3300 3300 4000 1000 6000 Ans. 15. Shipment from London to New York in Co., Dr. . . . 2000 To R. Morris for their ^ Invoice 16. Duff, Dr 3300 To shipment from London to New York in Co. 17. Cash, Dr 3300 To Shipment to New York in Co. 18. 1st Co. Sales, Dr. to Sundries, my half first cost . . . 5000 To Mdse. . . • . • . • // Wm. Hay for amt. paid in on my acct. 19. Sundries to Mdse. . . 1st Co. Adventure, for his half . 5000 Duff, for amt. paid in for him . . 1000 20. One-half of what the goods have produced be- longs to Hay, and must be credited or paid to him, which only leaves me $2500 for what cost me $5000, I have therefore lost $2500, just the amt. I owe Hay, therefore, Profit & Loss Dr. for my loss 2500 To W. Hay, for his half N. P. . 2500 21. Sundries to Sundries, $4200. 1st Co. Sales, for bal. of acct. . . 3000 Profit & Loss, for my half loss . . 1200 To W. Hay, for his half N. P. . 3800 n Commission, for my commission 400 22. The $3000 bal. of acct. is the difference between the two sides of the acct. upon the Ledger after all the sales are posted. The total sales are 8000 — 400 charges = 7600 ^2 = $3800, each share, and my half first cost 5000 — 3800 = 1200, my loss. 23. Profit & Loss to Sundries to close 1st Co. Sales . . . . 3100 To W. Hay, for his half N. P. . 1900 H 1st Co. Sales, for bal. of acct. on the Ledger . . . 1000 // Commission, for my 5 per cent. in total sales . . . 200 24. They are found as before by deducting the charges from the total sales (Rule 12) ; then the difference between my half net proceeds and my half first cost is gain or loss. The learner should now analyze a number of similar entries and find the correct amounts to form the Journal entry, which, when correct, will always close the ac- count on the Ledger. Learners can never readily understand the closing entry of either joint accounts or consignments without having before them the position of the account upon the Ledger. The closing entry must always exactly fill up the lesser side of the account there. — See Note 1, Morris's Sales, p. 107, and Notes 5 to 12, p. 220. 44 1 day 31 II 30 II 1 II REMARKS ON NOTES AND BILLS AND THE BILL BOOK. . ^^S^.,^^^^^°g 0^ *^^se books so perfectly explains their nature, use and manner of ent^r- mg iiills Keceived and passed away, that any farther explanation seems unnecessjiry Learners however, often experience difficulty in determining the precise day upon which notes and acceptances will fall due. We shall endeavor, in the following directions to make the matter understood. ' When the term of a Note is expressed in days, the day of date and the day of maturity are always counted as one, or, in other Words, Hhe day after drawing or accepting is the first day counted in the time to run. Thus, a bill drawn or accepted on 3Iay 1st at 20 ,^%Z!^ ^1 ^M^ M.y 24th--including three days' grace. A bill drawn or accepted on the 29th of April, at 60 days, has to run — » ^ In April In May In June In July 63 days. ^D^e. July 1st. Again, a Bill drawn or accepted 30th April, at 90 days, has to run— J^^^ay 31 days. I°J^?e 30 ^ J^J^^y 31 /. In August 1 „ 93 days. "^J^mq^ Aug. 1st. It will be observed in the last example that no time is allowed for April althou-h the da e IS on the last day of that month ; as, according to the rule laid dowV aborthe ^ following the date is the first day counted in the time to run ' ^ When the last day of grace falls upon Sunday, the note must be paid the preceding thSoks. ''''' '' °''' '^"^^"' ^^"^^^"y ^^'^'^ ^^^« - --^d-S '^^^ b^ls upon When the term of a note or bill is expressed in months, 'calendar months are alwavs understood and it becomes due in the last month of its term, upon X dafcorrespoS of Merchants and Bankers to extend the time of payment for any deficiency in the le^^h months^lM^^^^^^ ^'^'i^' "°^ ""f ^^^ "«*« ^'-^^ on the 30th M^rch, also at three rrmittinT the t J n • t' '^'^' ''^' ^^^r^''' ^^ ^^^^^ ' ^he custom of merchants not permitting the term of the note to extend beyond the end of June, except for the days of The following statements will disclose to persons operating extensively in notes and ^ re^Ttha^broTdT '? '' '''' matter'when iaw"ac" B^" 45 i ■t Ml SET II.— DOUBLE EKTEY BILL BOOKS. It will also appear that by obtaining one day's advance in the date, two, three, and some- times four days are gained in the time of payment. For example, a note or bill drawn or accepted on the 28th February, at six months, is due August 31st; but if dated on the 1st March, only one day later, it would not be due until the 4th September, thus extending the term of payment four days for one day's difference in the date ; and this difference in the date is frequently a matter of little consequence to the payee of the bill. In all our computations in reference to Notes and Bills, three days' grace are in every instance included. In the following instances, one day's advance in the date will give the day of payment three and four days later.* Notes drawn or Bills accepted February 28th,* At 1 n aonth, are di lie Mar. 31, but if d At 2 months. II May 1, » At 3 II II May 31, w At 4 n M July 1, n At 5 II II July 31, 9 At 6 n II Aug. 31, w At 7 II II Oct. \ ' At 8 II II Oct. 31, 9 At 9 H II Dec. 1, » At 10 n II Dec. 31, M At 11 II II Jan'y 31, If II II n II May June July Aug. Sept. Oct. Nov. Dec. Jan'y 4. Feb. 4. 4. 4. 4. 4. 4. 4. 4. 4. One day's advance in the date will in the following cases give 'two additional days in the time of payment. Notes drawn or bills accepted April 30th, At 1 month, are due June 2, but if dated 1st May will not become due till June 4. At 3 months, // Aug. 2, // 11 II Aug. 4. At 4 // // Sept. 2, II It Sept. 4. At 6 // // Nov. 2, It It Nov. 4. At 8 n II Jan'y 2, II If Jan'y 4. At 9 // II Feb. 2, If It Feb. 4. At 11 // II April 2, II M April 4. The above illustrations will serve to disclose the principle upon which we desire to fix the attention of our students and all commercial persons having any thing to do with bills. An error of one day in recording the maturity of a note or acceptance may cause the holder to lose his remedy against the endorsers ; and perhaps cause him to lose the note altogether. 1. Notes drawn or Bills accepted on the last day of February, with a running time, in months, will advance the day of pay- ment three and four days, by dating forward one day. 2. Notes drawn or Bills accepted on the last day of a thirty-day month, with a running time in months, expiring in a thirtj-- one day month, will advance the day of payment two days, by dating forward one day. * Our calculations are all made for ordinary years. When f ebruary intervenes, leap-year makes a day's difference. 46 SET IL—DOUBLE ENTKY BILL BOOKS. We have next to point out the other inconsistency we have alluded to, viz. those instances in which several notes or acceptances, dated or accepted on different days and having tlie same time to run, in months, will fall due upon the same day. Suppose you give four notes dated — August 28, at 6 months, August 29, at 6 months, August 30, at 6 months, August 31, at 6 months. You will find these notes, although of different dates and all of the same runninATK. i86e. Pec. 1867 Jan. so. drawer's txamx. Feb. 'I M *'! Mar. 1^ "i ■ t • 1 II !! April May June 1 21 2 I 'I 3 10 4 19 5 l30 , 6 Bl 7 8 9 , 9 12 HlO 25 11 112 28 ' 13 12 14 15 16 17 18 19 20 21 122 123 24 \ 7 6 3 8 8 B5 'Z6 i8€6. Dee. 1867. tl James Day, 0. Banks, C. Murray, Thomas Edwards, James Carter, William Hay, W. Morris, J. Warden, William Park, James Carter, J. Bowline, Baker & Fox, Warden & Bell, J. Taylor & Co., W. Wallace, Joel Post, James Day, H. Parnell, James Walker, Warden & Bell, Austin & Co., W. Wallace, Joel Post, (xeo. Barron, William Ha , ON WHOM OR IN WHOSE VATOR DRAWN. ON WHAT ACCOUNT. Totx TO mini Favor of Myself, » u n w w n Warden & Bell, William Hay, Myself, bn R. Morris, ■ Myself, Barclay, Hope, Favor of Myself, Merchandise, Cash Lent, ! Do. Merchandise, On account. Balance of account. My note, Do., Morris's sales, An old note, Cash Lent, Cash, My Bill on London, R. Morris's sales, Estate of A. Lenox, k // Warden & Bell, Bill on Landis, Favor of Myself, // Bill on Baring, I My favor, enewing an old note, Estate of A. Lenox, Money Lent, 2d Co. Sales, Do. An old note for A. Lenox, For Cash, &c.. Refined Sugars, I Hay's accomiii' 3 C. Murray, Favor of Myself, Cash Lent, 8 months. ll month. months. days. days. days. feO days. ^0 days. 4 months. 1 month. Bottomry. 60 days' s'gt 1 month. 60 days' s'gt 2 months. o months. 60 days. 60 days. 6 months. 80 days' s'gt 60 days. 3 months. 60 days' s'gt iiO days. 'ij moiitii- 9 months. May 18 121 Austin & Co. 22 W. Wallace, June 18 '23 Joel Post, 25 24 Geo. Barron, My favor, Exchange on Baring Cash, &c., 2d Co. Sales, 60 days. Old note to A. Lenox est. 3 months. Refined Sugars, 60 days' s'gt 30 days. 1. When a note or acceptance is received, it is entered, with all the particulars, in the left-hand amount colnmn. 2. When it is passed away, the date, when and how it is disposed of, are inserted in the columns indicated, and the amount is ex- tended into the right-hand amount column. 3. Note No. 4 above is paid in two instalments. Such entries may occasionally be made here ; but it will be found more conve- nient in practice, when a note is not paid at maturity, to 'charge it in account to the party we look to for payment at the same time writing it out of this book as we have done above with No. 10.— See notes 3 and 4, p. 62. Before we balance the bill account on the Ledger, * we must see that the difference between the two sides of it, and the difference between the two Bides of this book, agree. The above notes " carried down" 6 are the notes in hand at the time of balancing The left-hand amount column is footed and noted " forward" when it is filled, the amount appearing in the head of the same column on the next page "bro't forward." The righ^hand amount column cannot be carried forward until the spaces are all filled at the time of balancing. ^ * All notes which you endorse for accommodatioii may be entered In this manner in red ink; but they do not pass through th« 4. 5. 6. books. 48 KECEIVABLE. WHIN DUK. 1_ 2 8 L7 4 6 6 7 8 9 10 11 12 1 " i 24 12 1 24 11 3 ; 1 ' : 5 5 loi 31 12 14 15 19 22 15 20 21 28 24 21 21 28 AMOUNT. 600 1000 1500 3000 600 1515 75 800 600 2100 300 2000 4444 2011 4500 1200 500 400 1340 2063 7000 3000 1200 2000 980 I, 1000^ : 45554 19 1500 3000 1200 2000 980 WHEN AND HOW DISPOSED OF. 1867. Mar 17 Jan. 24 J mm .*J0 Feb. 12 Feb. 12 Apr. 22 Feb. 6 Jan. 31 June 12 Mar. 16 Mar. 20 Feb. 28 Apr. 20 Apr. 5 May 18 June 18 May 31 31 June 18 May 25 Ree'd 6100, Ren'd $400, Rec'd in Cash and Mer., Cash $2000, Mdse. 81000 Ren'd 6300, Lost §300, Rec'd in Cash, Discounted in City Bk., Discounted in City Bk., Rec'd in Cash, Charged to W. Hay, Collected by R. Morris, Sold to R. Irvin & Co., Rec'd in Cash, Passed to P. Nevius, Renewed for, Rec'd in Bill on Lond.. Ch'd to Profit & Loss, Ch'd to Estate of Lenox, Rec'd in Cash and Mer., Sold to C. Hartwell, AvoinrT. 500 1000 3000 600 1515 75 800 600 2100 300 2000 4444 44 2011 4500 1200 500 400 1340 2063 7000 j June 26 Endorsed &ret'd to Hay, 1000 45554 19 i n^Z ^V^ •!°.*®'" * °^*« °^ acceptance when received ? 2. How when it is passed away ? t^v^eivea i 6. How 18 this book continued from one page to another? * If you are re-entering these notes upon a new page, "carry foxward" will be the proper expression. 49 ii'ii r' m '<\ BILLS SATS OV ACCEPTANCE. NO. UEAWER'S NAJ«. 1866. Nov. 1867. Jan. Feb. Mar. Apr. lii ii' . ' ) 13 15 n 4 f 3Iay June 1887. Feb. Mar. Apr. June |20 Bl 18 IN WHOSE FAVOR. 14 1 Myself, A.. Stuart & Co., 2 Taylor on Myself, 3 Myself, 4 a 5 If 6 » 7 f 8 If 9 u 10 n 11 IWorris, on Myself, 12 Myself, ,13 // 114' n 15 Taylor, on Sydney, 16 Myself, 117 II 18 i n 19 'I k yan & Dale, ^V. Bayard & Co., papt. W. Rivers, |W. Morris, J. Warden, U. States, K If |R. Banks, JVV. Hay, Morris, fe. Coates, Walker, States, Wm. Hay, tV\^arden & Bell, '4 10 20 18 8 Myself, iiOj n 12 n 16 // 17 " VJ p. States, // // W. Hay, J. Walker, U. States. Warden & Bell, ON 'WHAT ACCOUNT. Merchandise, nXX TO KOH. // 5hip Hudson, is Note, is Note, erehandise, I .// !dorris's Goods, // R. Morris, [nsurance of ship Roscoe, ■Shipment to Liverpool, R. Morris's Ship't to Bost. lonor of J. Taylor & Co., nsurance 2d Co. Ship't, duties 2d Co. Sales, Insurance for R. Morris, Purchase of Floiur, 60 days. days, month. ^ months. 30 days. 50 days. 3 months. 5 months. B months. IB months. ilO days' s'gt ^ months. 30 days. SO days. JLO days. 6 months. 6 months. 2 months. 60 days. VIerchandise, B months. piorris's Goods, 6 months. 'nsurance of ship Roscoe, 4 months. nsurance 2d Co. Ship't, 8 months. uties 2d Co. Sales, 6 months. Purchase of Flour, 60 days. J\V'«— The directions respecting the Bills Receivable Book apply in all respects to this book. , „„^ „, ua The not^"SedTown'' are the notes wo have out unpaid, and, like the other Bill Book, must agree with the balance or ita representative in the Ledger, at the time of balancing. PAYABLE. WHBN 0U£. 1 2 16 16 18 3 L8 5 6 7 4 4 8 9 28 10 11 12 18 3 20 4 4 AMOUNT. 23 300 1000 1600 8000 800 600 111111 mill nil 11 nil 11 25001 400 16145 4125 601 145 3000 i 112 80 ! 1160 WHEN 1867. ANB HOW PAID. Jan. a6 Feb. !18 Apr. Mar. 122 4 May June May June Mar. JuneiSO May I 8 4 30 4 30 5 :^65 fi4 nil n iiiui 400! 145 1 3000 ! 1160 Apr June June June June 2S 30 30 US 30 Pd. City Bank, If u Pd. in Cash and Mdse., Pd. in Cash and Mdse., Pd. in City Bank, Pd. in Merchants' Bk., Pd. the Custom House. 1 1 Carried down, Pd. the Custom House, Carried down, Pd. in Mdse., I Carried down, !Pd. in Cash, Do. iPd. in Cash, CaiTicu aown. Do Do Pd. Insurance Co., Carried down, AJfOCXT. 300 $4865 44 51 50 SET II.— DOUBLE ENTRY BOOK-KEEPING. SET II.— DOUBLE ENTRY BOOK-KEEPING. I p h THE CASH BOOK. . i CONCLUDING REMARKS ON THE BILL BOOKS. 1. All practical accountants who have seen the principle upon which I have kept the Bill Books have given it their unqualified approbation. In the operations of some houses, the Bill account is nearly as heavy and voluminous as the Cash account, and there is no way in which accuracy can be so easily preserved or errors so readily found as upon the principle of balancing these books like the Cash Book. In a business where any consider- able number of bills or notes are received or given, this precaution appears to me almost indispensable for maintaining harmony between these books and their representatives in the Ledger. 2. Although I have here only balanced them once, — at the time of closing the Ledger, — ^yet, in a business of any magnitude, it will be advisable to do so much oftener, at the same time balancing their representatives in the Ledger, or at least seeing that they con- form to these books, and also to the amount of Bills and acceptances in hand. Any dis- crepancy in this particular is a conclusive proof of error existing somewhere, which must be found out and rectified before you go farther. You will notice that those notes which have been renewed at the face — see Wallace's note, No. 15 — are not passed into the Ledger, neither are accommodation notes, such as that of William Hay's on the 26th June. You will not therefore expect the account in the Ledger to add up the same as this Book • but if every thing is correct it will conform to it in the balance. Cross accommodation bills, like Bills Receivable No. 7 and 8, where you have given a consideration for them — your own notes — must of course appear on your Bill Book like any other note. Another species of accommodation is when y.ou grant your signature as security upon a note or acceptance without any consideration, as in the case of Hay's note — see Bills Re- ceivable, June 26. I have recommended the entry of all such notes with their particulars and amounts in Red Ink. Such a practice may make the Bill Book a useful monitor to those who do much of this kind of business. 3. I have before given directions — Note 3, p. 49 — respecting the payment of notes by instalments. The prevailing practice is to credit the Bill account with every instalment, however trifling, endorsing it at the same time upon the note. Notwithstanding its long established general usage, this practice is often attended with great inconvenience to the Book-keeper. A more fruitful source of confusion could hardly be devised. After getting u number of these partial payments upon different notes posted to the account, in any attempt to trace out errors afterwards, it will be found a perfect labyrinth. 4. When a note is overdue, it ought either to be renewed or charged to the promisor in book account, and as he makes payments upon it pass them to his credit. Those who have been pursuing a different course will risk nothing by giving what I here suggest a trial. 52 INTRODUCTORY REMARKS. This book ^ is kept for the purpose of ascertaining every evening, or as often as is neces- sary, that all money received and paid has been kept account of. ^ This is done by debiting this account for ^all money received, hence we find by the Dr. side the total amount received. When » money is paid out we credit this account, and thereby find by the credit side the total amount paid away. *And the difference between the amount paid away and the amount received must be the balance in hand. When the money in hand is counted it must agree with Hhe balance as shown by this book. Any difference is conclusive proof of error, which should be immediately sought out and an entry made to rectify it. All cash transactions are generally first entered ^upon this book, and afterwards trans- ferred to the Day Book, when Hhey are marked off this book upon the left hand side of the inoney column thus |/. But there is no objection to making the entry occasionally first on the Day Book and the collateral entry afterwards on this book. As the Cash Book is generally referred to ^as the book of original entry for all such transactions as are entered upon it, great care is necessary in making these entries. »Tbey should be made in such a manner as will enable any one afterwards to determine what aQcount was intended to be debited or credited for the money paid or received. For this purpose accountants adopt the following Rule : When money is received, ^» write the name of the account to be credited for it, next the date column on the left side,— the words of explanation on the same line a little to the right. When money is paid away, "write the name of the account to be debited for it, next the date column on the right side,— the words of explanation on the same line a little to the right. The Ledger titles are by this means kept in a perpendicular column, separated by a slight space from the explanatory words— refer to our cash book and see. By this arrangement no doubt can afterwards arise as to what accounts were intended to be debited or credited. And It adds much to the appearance of the book to begin these words of explanation all upon a perpendicular line, either by a fold in the paper or a pencil line. "Every thing except the dates and names of accounts must be kept to the right of this line. Nothing shows a man's ignorance of accounts more effectually than beginning his entries here with the title of the book - To Cash" or '^ By Cash.'' Nothing but cash is entered here, and that title is never written in the book except in the heading of it. The Bank account, check-book, &c., are exemplified in the second part of this work. Teachee's Examination.— 1. For what purpose is the Cash Book kept? 2. What is placed to the Dr. side ? 3. What to the credit side? 4. How do we ascertain the balance in hand? 5. What must the money in hand agree with ? 6. Where are all cash transactions generally first entered? 7. ^\hat is done with them when they are entered in the Day Book' 8. For what [.iirpose is the Cash Book generally referred to? 9. How should entries be made on this book ? ^ 10. How is money received to be entered? 11. How money paid ? lli. What is kept to the right of the perpendicular line spoken of? 58 II il Dr. 1867. Jan. Feb. Alar. I Apr. lii ; t; 1 3 16 18 24 30 31 6 12 25 28 1 2 5 12 17 28 20 C^SH To Stock // Mdse. // James Carter // House 44 Broadway tf Bills Receivable // Wm. Hay If Bills Payable For Bal. on hand, per Ledger A, fol. 2 Rec'd for sale to A. Stuart & Co. Rec'd amount of his % in full Rec'd of Carver a quarter's rent Rec'd of Banks on % of his note Rec'd on % Rec'd n/p. of Warden's note discounted 10906.70 5ft 6680. 4226.70 5 To Morris's Sales » Bills Receivable // // tf n R. Morris // Commission // Profit & Loss // Bills Receivable n Profit & Loss n Sundries Bal. bro't down Rec'd for sale to J. Lorillard Rec'd n/p. of Morris's note discounted Rec'd of T. Edwards on his note Rec'd n/p. of draft on Barclay Rec'd for collecting same Rec'd a purse found in the Park Rec'd for Baker & Fox's Bill 84444.44 Rec'd 8^ per ct. prem. on same 377.78 Rec'd of Warden on my Bill 6462.70 To Wm. Hay n Ship Hudson n Mdse. Ship Roscoe and Owners N. Y. Insurance Office Estate A. Lenox Bills Receivable Profit & Loss Mdse. Bal. in hand bro't down Rec'd on 1st Co. account Rec'd for freirh'^ Rec'd of R. Banks Rec'd for freight and passages Rec'd in full Rec'd deposit in Manhattan Bank Rec'd on J. Day's note Rec'd interest on same Rec'd of Wm. Hay bal. of Invoice 34^1.90 13020. 11641.90 To Bills Receivable n Profit L^ Loss Bal. bro't down Rec'd amount of Warden & Bell's note Rec'd 20 days' interest on same Forward 7300 300 560 150 500 1500 596 i 70 10906 ' 70 4226 70 360 I 796 2000 1995 5 400 4822 2810 40 17415 22 16 4K 6462 70 2500 1850 255 1800 3690 7500 100 4 20 500 24661 90 11641 2011 6 13659 90 70 60 ♦ Note. — ^The learner should place these figures in hia manuscript in pencil. 64 ^OOOUNT. 1887 Jan. By Mdse. » Bills Payable » II II II House 44 Broadway II Ship Hudson // // Paid M. Hunter & Co. for Inv. of Flour Pd. my note to A. Stuart & Co. Pd. my acceptance for Taylor & Co. Pd. J. Carpenter's Bill for repairs . Pd. Capt. Rivers on % of purchase money Pd. disbursements Bal. to n/a. ^^ Feb, i By Mdse. 1 II Morris's Sales 5 3Iar i3 1? 20 25 II II II M Shipm't to New Orleans n II II II J. Taylor & Co. // House in Broadway // Profit & Loss // R. Morris II Bills Payable // Morris's Sales // Bills Receivable // // // // Profit & Loss Pd. freight, per "Herald" Pd. // // // Pd. Cooperage, &c. on Wines Pd. freight of Wine to New Orleans Pd. freight, per "Jersey" Pd. // // // Pd. Insurance $200, Policy $1 Pd. Insurance on Mdse. in Store Pd. on % of his Bill Pd. on my note to W. Bayard Pd. R. Banks for overgauged Wine Pd. J. Bowline on Bottomry Bond Pd. for Baker & Fox's Bill 4444.44'! Pd. 8 per cent. Prem. on same 355.56 Bal. to n/a. Cr. 1800 300 1000 280 2100 1200 41^ 10906 70 10952.78 85 167 2S 33 11 201 181 3400 •20 211 2000 4800 78 3 By Ship Roscoe, my J Pd. 12 16 17 25 31 Ship Roscoe and Owners Pd. Bills Payable Pd. " " Pd! Mdse. Pd. Estate A. Lenox Pd. " " Pd! House 49 Cedar Street Pd. 1st Co. Sales Pd. Charlotte Lenox Pd. Robert Lenox Pd. Capt. Manly bal. of purchase disbursements my note favor W. Morris 'I 11 II J. Warden freight of Cotton from New Orleans note in the Manhattan Bank for Law Expenses Insurance and Policy my half Invoice of Cotton her on % of Legacy him on % of Legacy Bal. t«» u/a. 18,020 17415 48 Apr. 1 5 10 15 By Bills Receivable Pd. J. Walker in loan on his note // bhipm t to Liverpool Pd. Shipping charges " ^•Morris Pd. charges on shipment to Boston // John Taylor & Co. Pd. their draft on S. Wood & Co. protested II Sundries Pd. charges on 2d Co. shipm't to London // 1st Co. shipm't to Boston Pd. Shipping charges // Sundries Pd. charges on 1st Co. shipm't to Liverpool Forward 4065 55 Ill ;'i ri! 'I ' i t Dr. 1867. Apr. 22 To Bills Receivable // Profit & Loss May 8 13 18 25 To House in Cedar Street // City Bauk Stock Merchant's // House 44 Broadway Ship Hudson Ship Roscoe and Owners Merchants^ Bank Stock R. Morris Mdse. 2d Co. Sales // Profit & Loss Bills Receivable Profit & Loss June 12 18 To Bills Receivable // // » n R. Morris O^SH 60 Bro't forward 13659 Rec'd amount of Wm. Hay's note 1515 75 Rec'd interest on same 15190.40 8058.60 5 05 7121.80 .— 1 1 15180 40 Bal. bro't down 7121 • 80 Rec'd a quarter's rent 300 Rec'd Dividend 500 Rec*d // 250 Rec'd Rent 150 • Rec'd Freight 3500 Rec'd freic:ht and passage money \ 4200 Rec'd of Finlay & Co. on % of sale 500 Rec'd of Walker bal. on my Bill of Exch. 4200 Rec'd of J. Walker h 3d Co. Adventure 1500 , Rec'd on % of sale to Warden & Bell 1640 Rec'd of Austin & Co. on Sales at Auction 560 Rec'd of W. Wallace, for interest 18 90 Rec'd for Warden & Co.'s draft on Landis ' 7000 Rec'd 1 per ct. prem. on the same 31510.70 2724.92 70 28785.78 31510 70 78 Bal bro't down ' 28785 Rec'd of Warden & Bell, for their note 2100 Rec'd of J. Walker bal. due on note 563 Rec'd Insurance for loss per "Columbia" 5452 70 36901.48 28010.48 ^^ 8891. 36901 48 Bal. bro't down «891 DIRECTIONS FOR RULINO. 1. What are the lines called footing lines? 2. How are they drawn under the longest column ? 3. How are they drawn upon the other side, where there is a blank space in the money column ? 4. What are the closing lines, and what is the use of them ? 5. Where are they drawn? 6. How far do you bring the balance below the closing line, and what must this balance agree with? The author has been thus precise in his directions in this matter, hoping thereby to inspire his learners with an early taste for neatness and uniformity in a matter which contributes so much to the appearance of their books, and which is of more importance in preserving accu- racy and order than many persons imagine. The directions here given apply to the Ledger, and all other books upon which balances are struck. 56 A.OCOUN'T, Or. 1867. ; j I I Apr. 20 By 2d Co. Sales 22; // Sundries 23; // Bills Pciyable Bro't forward Paid Freight, &c. per ''Vixen" Pd. on my note to Capt. Rivers Pd. my acceptance for honor of Taylor & Co. 8058.60 May 4' By Bills Payable 8 // // // 31 // R. Morris Pd. my bonds in the Custom House Pd. my notes to the Insurance Office Pd. charges on shipment per '• Columbia" 4065 55 185 3207 05 601 15180 40 0999 22 202 7C 300 2724.9a June 12 ByR. Morris 18 25 28 30 It II Warden & Bell Bills Receivable Pd. for Bank's Bill of Exchange Pd. them on % Pd. for J. Post's Bill on London Pd. for Sugars sold to G. Barron 1st Co. Sales Pd. Wm. Hay his half net proceeds House 49 Cedar Street Pd. Carpenter & Co.'s Bill of Repairs Profit & Loss Pd. Expenses 1st Jan'y to date // i> . 31510 70 7200 10000 1660 i 800 6971 25 s 280 1099 23 28010.48 . ' 1 36901 48 1. The footing lines are those drawn under the amounts before adding up. -. Ihey are drawn close under the foot of the column. 3. Directly opposite the line footing the longest column, touching the same line lightly inside the date column. ^ j •» t. The closing lines are those drawn after the columns are added up, to keep the old account separate from the new account. D. They are always drawn on the first faint line below the figures, touching it lightly inside the date columns, and doubling across the money columns, but never runnin- throu-h the date columns. ° *= 6 The balance brought down always occupies the first faint line below the closin- line and a must always agree with the cash in hand and the balance of the cash account in the 57 '.■V '■I .li> li ; |l SET II.— DOUBLE ENTRY BOOK-KEEPING. THE INVOICE BOOK. PRELIMINARY REMARKS. In this book * we enter copies or abstracts of all invoices of goods received on our ow/i account, on account of others, and on account of ourselves and others in company. This is the general practice among merchants, but the author has found it more con- venient in extensive business ' to paste the original invoices into a book made of some description of paper of a larger size than the invoices. By means of an index to this book, it will be found more convenient to refer to the original invoices than by seeking them from files. The first entry of an invoice ' may be either here or on the Day Book, but when it is entered oh the Day Book, each entry should be marked off" this book as we have done on the following page. Exporters sometimes use an "Invoice outward book," but we have shown that nvoices of this kind as well as inland invoices may be entered on the Sales Book. The parciculars of an invoice need not be entered on the Day Book. * The amount only Is required. We have not considered it necessary to extend this book through the whole set ; most learners will easily learn its nature and use from these remarks. It will seldom be necessary to transcribe the book. As far as our exemplification of this book extends, the learner will find its examples all in connexion with the Day Book. Inventory of Merchandise on hand December 31, 1866. D. B. 1. ! 300 pieces best 44 London Chintz Prints 100 8 100 50 50 // 27 inch Furniture Prints French Cambric Handkerchiefs India Pongees . ff II II II Bandannas Figured 20 Canton Crape Shawls @$ 4. @$ 3. @$10. («) $ 6. @$ 7. @S 7. @$ 6. 1200. 300. 80. 600. 350. 350. 120. D. B. 1. PD 1 to 24 Invoice of 24 Bales Cotton shipped by J. Taylor & Co. on board the Brig Jersey, Spencer, Master, for New York, and consigned to P. Duff", Merchant, by his order and for his account and risk. 1.450 4.420 7.390 10.410 2.400 5.430 8.380 11.450 3.410 6.500 9.410 12.500 13. 560 16. 580 19. 550 22. 510 14.540 17.500 20.590 23.540 15. 520 18. 500 21. 500 24. 560 1260+1350+1180 + 1360 + 1620 + 1580 + 1640 + 161o" = 11600, @ 8 cents. CHARGES. Commission purchasing $928 @ 21 per cent. Cartage, &c Freight and Insurance .... E. E. New Orleans, Dec. 10, 1866. S23.20 1.80 47. i J. Taylor & Co. D. B. 1. Mr. p. Duff, New York, Jan. 3, 1867. Bo't of Martin Hunter & Co. 400 bbls. Superfine Flour @ §4 50 Bec'd Payment, Martin Hunter & Co. Per J. Manly. 1. What is the use of this book? 2. How may invoices be most conveniently kept for reference? 3. Where is the first entry of an invoice to be made ? 4. How is an invoice to be entered upon the Dav Book? 58 D.B.I. Mr. p. Duff, No. 1444. 1 ps. 24? // 1448. 1 // 25? Bo't of Walter Bayard & Co. 1 1450. 1 // 19? j ooon -. — '^^ y^^- ^^P®^ ^0^^ ^^^^^ Broadcloth, @ $ 8. ' » ^280. 1 II 25 yds. Super Blue Broadcloth . . w 8. D. F. 2 II finest Saxon Flannel . . . . // 20. F. 80 // Common /' 10. Bec'd Payment, „ ^^ By Note @ 1 month, New York, Walter Bayard & Co. January 15, 1867. 3000 928 72 1000 1800 560 200 40 800 1600 59 Mr. P. DUFF, '!il 1; li ' I! 1 1 !l|? I ill' Bought of JAMES CARTEK. D. B 2. D. B. 2. P. D. N.Y. P. D. R. M. 1 ps. 20? yds. Super Black Broadcloth 1 // 20? II II Brown // 1 Dress Coat .... New York, Jan. 20, 1867. @ 85. 102.50 M 4. 83. # 14.50 Mr. p. Duff, Bo't of C. Banks, 100 bbls. Genesee Superfine Flour . . . • . @ 85. Rec'd Payment by my note due this day, C. Banks. New York, Jan. 24, 1867. If ■ — Invoice of Merchandise shipped by R. Morris on board the Ship Herald, Chase, Master, for New York, by order and for account and risk of P. Duff, merchant there. 4 Packages, No. 1 to 4. No. 1, contiining 50 pieces, 3000 yds., Figured Satins . @ 5s 600 // Rolled Jaconets . . // 5s. 600 // Fancy 2-color Fur. Prints . n 10s., 600 /' '/ 5- // // . II 20s. CHARGES. Commission, 5 per ct. on £1800 ..... £90. 200 500 /, 2, // 3, " 4, // // Export duty and entry, £12 10s. Cartage, Wharfage, and Lighterage, £8 10s. ....... Insurance and Policy ....... 21. 89. £750 150 300 600 200 Amount due in Cash April 10th next, sterling In Federal currency, $8888.88 London, Dec. 30, 1866. R. Morris. ft £2000 Invoice of 30 Pipes Port Wine, shipped by R. Morris on board the Ship Herald, Chase, Master, for New York, consigned to P. Duff, merchant there, for sale on account of the shipper. 30 Pipes, 3600 galls.. Best Old Port . . @ 10s. £1800. CHARGES. Export duty, entry, &c., £44 10s. Cartage and Wharfage, £11 10s. Insurance and Policy Cooperage, Lighterage, &c. London, Dec. 30, 1866. Mr. p. Duff, (Terms, 3 mos.) 20 ps. 400 yds. 10-4 Damask Table Linens, 4 // 54? // 12-4 // u 3 // 40? 11 8-4 // n £56. 96. 48. 200. £2000. R. Morris. Packing-box Bo't of William Hat, . @ $3. 81200. II . . // 4. 218. II . . II 2. 81. New York, Feb. 12, 1867. Mr. p. DyFF, 200 bbls. Genesee Flour New York, Feb. 18, 1867. 1500 Bo't of T. Edwards, . @ $5. 1000 60 Inventory of Merchandise on hand June 30, 1867. 2423 Barrels Flour (^85. 12115 6 Pieces, 240 yds., Brussels Carpet . H 1.50 360 70 // Merrimac Prints, . II 3. 210 40 II II Furniture . . '/ 4. j 160 ! 420 II English Prints . . ff 5. 2100 365 // // Furniture n 6. 2190 8 // 161 yds. Fine Broadcloth . . w 6. 966 1 // Fine Saxon Flannel . > • • 11 62 1 II Scarlet ii • • 15 60 Entered Ledger, ^olio 1. . • 18128 22 CONCLUDING REMARKS. 1. In business the Inventory generally makes a pretty long document, but the above will sufficiently explain its nature, and a reference to it will serve to explain the balancing of the merchandise account in the Ledger. 2. Teachers who use treatises on Book-keeping which give no example of the inventory of the merchandise on hand at the opening and closing of the Ledger, will find it a difficult task to make the closing of the merchandise account fully understood. A learner who has never seen an inventory, will form so vague an idea of it from a mere verbal description, that he will probably forget even the name of it before he has balanced his account. But give him an exemplification of it, and he will ask no more questions about it. 3. I would suggest that the inventory be always taken as near the cost and charges of the goods as possible. Having it upon this principle enables us, as we have shown, — Note 15, page 36— -to ascertain the average gain per cent, upon the amount of goods sold, which is at all times an important matter for the merchant to know. But I shall perhaps be told that taking the inventory upon this principle will, in some instances, produce a false result in the balance sheet. I admit that in some cases it will. But take it upon any principle you please, and it is only an estimated value. The actual value can only be determined by sale : and as a general rule the cost and charges form a pretty correct estimate for the bal- ance sheet. But if circumstances render it necessary to deviate from this rule of estimate, I would still, for the purpose above referred to, take the account upon the same principle' and afterwards let an estimated deduction or addition be made to it for the balance sheet. 4. On the last page there are two invoices from Morris. The first is on our own account, and the second on consignment. The learner will perceive from this that there is not, in general, any use for a Commission Invoice Book. Such a book is only required in a few of the most extensive commission houses. All invoices of goods received may be entered upon this book. When the business is extensive, an index will be found useful. 61 1*4 'itl SET II.— DOUBLE ENTRY BOOK-KEEPING. THE SALES BOOK. PRELIMINARY REMARKS. The purpose of keeping this book * is to avoid entering the particulars of long invoices upon the Day Book. In extensive business the full particulars of every sale ^ are first entered on this book, and the amount afterwards transferred to the Day Book, when it is marked off this book as we have done on the next page. By referring to our entry of the 12th February, it will be seen that invoices outward may be entered here as well as inland ones. In a limited business the ' Day Book serves for entering all sales upon : in this case the Sales Book is dispensed with. The following exemplification extends only through two months of our Day Book. But this will be found quite sufl&cient to explain its use, and it is so easily understood that the learner will hardly find it necessary to transcribe it. In a very extensive businoss there is often a Sales Book required in each department, in which the salesman in that ;'. jpartment enters all his sales. From hence it is transferred afterwards to the Day Book or to the Journal by the bouk-keeper. It may be proper to observe here that the Journal may be composed direct from the aux- iliaries without passing the entries into the Day Book. By this course a considerable amount of writing is saved. But the author will not attempt the explanation of that method of journalizing in this Set, the object of which is to make the principles of the science thoroughly understood by the simplest and most efficient plan of teaching, leaving details that would embjirrass the learner and hinder his teacher to be explained hereafter. Persons who are unacquainted with the labors of the class-room, generally form but an imperfect idea of the nature of the teacher's task in first inducting the uninitiated pupil into the science of accounts. It is sufficiently difficult when the entries are all arranged for journalizing in the Day Book, but let the pupil's attention be divided between the Day Book and some five or six auxiliaries, and the matter becomes infinitely more difficult and perplexing. We have tried this plan of teaching. These remarks are therefore dictated by experience. This plan of journalizing will, however, be found fully explained in the second part of this work, where, after having fully mastered the principles of the science, the pupil can understand and apply them with all desirable ease. 1. What is the object for keeping the Sales Book? 2. When this book is kept, where are the particulars of each sale first entered? 3. When no Sales Book is kept, where are the particulars of the sales first entered? 62 NEW YORK, January 3, 1867. D.B.I. D.B.I. Sold A. Stuart & Co., for Cash— 20 pieces London Prints 10 II plain Pongees 10 II figured . 10 II Merrimac Prints 10. Sold Thomas Edwards, on his note @ 30 days — 400 barrels Flour 200 pieces London prints . . . . t$5. 88. @S9. ©83. @S5. @ $5. 100 80. 90. 30. 2000. 1000. D. B. 1. Sold James Carter, on account — 3 hhds. Sugar, viz. 1204, 1196, 1100 = 3500ib. Tare 10 per ct. . . . 350 3150Jb @ 8c. 252. 50 pieces Merrimac Prints , . . . . @ $4. 200. 15. D. B. 1. Sold Henry Pryor, in payment for James Carter's order on me- 6 pieces Flannel 2 yards fine Broad Cloth @ 815. 89. 90. 18. D. B. 1. 16. D. B. 2. D. B. 2. Sold James Carter, on account — 100 barrels Flour . 10 II Corn Meal . 15 // Rye II 5 // Herring @S5. @83. @83. @85. 500. 30. 45. 25. 19. J. T. & Co. Sold James Carter, on account 4 pieces fine Blue Broad Cloth, 19?, 20, 20?, 20 = 80 yds., @ $5 Sold Capt. Rivers, in part payment of the Ship Hudson — 240 barrels Genesee S. F. Flour ... ^5 60 hhds. N. 0. Sugars, 71,1111b Less Tare 10 per ct. 'y 11 Net 64,000ib @ 6 J, 10 chests H. S. Tea . T Net 10001b @ 70, relb.l2. 1200. 4000. 700. Invoice of Cloths, Silks, &c., shipped on board the Brig Jersey, Spencer, master, for New Orleans. Consigned to J. Taylor & Co., for sale on my account — 20 pieces, 1200 yds., Figured Satins . . @ $1.50 81800. 4 8 20 4 3 // II II It 80? 160 400 54? 40? // II II It Best Black Cassimere S. W. Black Broad Cloth 10-4 Damask Table Linen 12-4 // II n 8-4 // «r # CHARGES. Packing Boxes 84.50, Cartage 81 Freight and Insurance I :E. E. New York, ") I 12th Feb., 1867. | 85.50 27.50 161. 800. 1200. 218. 81. 4260 33. 300 3000 452 108 600 400 5900 4298 P. Duff 63 i' I( Invoice of Tea shipped by the Brig Jersey, Spencer, master, for New Orleans, and for account and risk of J. Taylor & Co., and to them consigned. bv order J. T. & Co. 10 chests H. S. Tea, wt. Tare . 9151b. 115 Net 8001b @ 75 $600. CHARGES. Cash Paid Freight and Cartage .... Comm'n 5 per cent, on S600 . . .30. Comm'n h per cent, for effecting Insurance 3^ E. E. New York, 12th Feb., 1867. ) $11. 33. P. Duff. 44. 644 18. Sold R. Banks, in part payment of R. Morris's draft on me in his favor — 40 barrels S. F. Flour @ $5. // Sold W. Bayard & Co., in part payment of my note due this day — 100 barrels fine Flour @ $5. 28. The following articles were destroyed by fire in my store in Front Street, yesterday : — 100 barrels Corn Meal Cost S3. 300. 2U0 // Rye Flour '' $3. 600. 300 // Wheat // $4. 1200. Amount of Damages upon Sugars and other goods, agreed upon by the appraisers ... . 1590. I Amount claimed upon my policy, and admitted by the Insurance Office ........ 200 500 3690 This entry marks out the course that we would in general recommend in case of loss by fire, particularly in a partial loss. In some kinds of business it is often found more difficult to prove the loss and damage, than inexperienced persons generally imagine. Although the author has nothing himself to complain of in his past transactions with insurance offices. enough has come under his notice to convince him that the greater part of insurers do not sufficiently study the terms of their contract as embraced in their policy. Every office has a form of policy of its own, and these forms are so various, and sometimes so worded, that it is very difficult to make out how you are to proceed in case of loss, or indeed whether you can maintain an action at all upon the policy. Unless the nature and position of the property are very accurately described, a part, or even the whole of it, may fall without the scope of the policy ; for every condition inserted in that instrument, either in the printed proposals or in writing, are parts of the contract, and must be strictly and literally observed. A person of our acquaintance once insured his goods in the first and second floors of the building, the only parts he then occupied. He either did not notice the terms of his policy, or forgot its restriction to these particular parts of the building, and afterwards removed a great part of his goods to the cellar and the third floor. A fire afterwards occurred, and he could recover nothing upon his loss in the cellar or the third story. In another case the insurer accepted of a policy in which was inserted the condition, that in case of loss the money was not to be payable until the insured produced a certificate of character frorii the minister of the parish. It was afterwards decided that he could not recover, although the minister wrongfully withheld the certificate ; for it seems to be a settled legal maxim, that if you undertake for the act of a stranger you must see it done. Although these remarks do not strictly belong to our subject, yet they cannot be far out of place in connection with the last transaction recorded in our Sales Book. They may, at leastj serve to put the young and inexperienced upon their guard in entering into these important contracts. 64 COMMISSION SALES BOOK. INTRODUCTORY REMARKS. This book ^ is only required in extensive commission warehouses. It is kept in folios • to the Dr. side are placed the particulars of all charges attending the sales: » and at the Cr. side the particulars of each sale. When the goods are all sold * the account is debited lor the net proceeds, which is at the same time carried to the credit of the owner or to the credit of cash if you pay him at the time you render account sales. The form of this account will be found among the mercantile forms — p. 117. All the entries of both sides this book pass regularly to » the Day Book frefer by tht- dates and see) and are then marked off" this book in the manner we have directed in the Cash Book. — Note 7, p. 53. In a limited commission business, « the sales of each consignment, as well as the charges attending it, may be entered at once upon the Day Book without a sales book : and when an account sales is required it can be readily made out ' by reference from the sales account in the Ledger to the Day Book. There can be no entry of the invoice of a consignment upon this book. That must be 21 to 28''^'''' ""^ ^''''^ only.«-See Invoice Book, p. 60: also Rule 10, Questions In the second part of this work will be found another method of keeping consignment accounts : but the principle is essentially the same as this. The sales of Merchandise on acct. of ourselves and others in company is kept also upon this book » in all respects as we have just described for the sales of others. f a wc The Order Book is used for entering orders received for goods. It is so simple that I ^1°^^^^^^ ^* necessary to give an exemplification of it ..^A ^Y^^^l ■^^''?' ^' ^^'"^ ^"^ improved form of Check Book, will be found in the second part of this work. TEACHERS EXAMINATION. 1. When is this book required ? 2. What is placed to the Dr. side? 3. What at the Cr. side? 4. What is to be done when the goods are all sold? 6. To what book are the entries of this book transferred? E 6. How may the sales be kept in a limited commission busi- ness? c" ?v^ ^^^ *^® account sales be made out in this case? 8. W hat is done with the invoice of a con.signment ' 9. How is the sales of Merchandise on account of ourselvat and others in Co. to be kept ? 65 i Dr. SALES OF WINES SOLD BY OEDER AND FOE ACCOUNT OF E. MOEEIS, LONDON. Cr. 1 1867. Feb. Mar. 5 12 20 12 1 For my two bonds passed to the Custom House, viz. : one at 3 months, for . . .1111.11 one at 6 , // " • • • im^l For Cash paid freight and primage // H II for gauging .... ;/ II II for carting and cooperage H u /r for cartage, freight, and insu- rance on 10 Pipes Wine consigned to J. Taylor & Co., New Orleans . u Cash refunded R. Banks, 6 galls, gauged Wine sold 18th inst. n Storage .... // Advertising .... u Commission on $12,120, @ 5 per cent. • n/p. to R. Morris's credit due by average, May 2* 1M7. Apr. 20 May 18 J^ II ii, over- 2222 22 167 78 1 50, 3 50! 28 8068 1. We find the entry of this and all the others on the Day Book by their respective dates. 2. This is found by deducting the charges from the total sales. See small figures in the margin. 3. The entries are generally first made here and after- wards transferred to the Day Book, when they are marked oflF this book thus {/ to show how far the transfers have been made. There is no objection, how- ever, to making the first entry of some of the transac- tions on the Day Book, and the corresponding entry afterwards here. Sales of 40 Bales Brussels Carpeting for the Joint For Bonds passed to the Custom House for duties Paid freight and primage per " Vixen // Insurance against fire, and policy // Cartage . . . • • For Storage, $3; Advertising, $10 . Commission 2\ per cent, on $15874 R. Morris's J net proceeds is J. Taylor & Co.'s do. My do. II II n If 150. 33. 2. 8BMJ6 Note.— The learner will find forms of the account sales of both the abore j consignments among the Mercantile Forms at the end of the Ledger— pp. ; 117 and 118. * The rule for finding this average time is given on the next page. 1887. Feb. 9 21 3 50 14 50 606 2444 624 9052 12120 12 Mar. 18 12 3000 1887. May 3185 185 13 I 396 85 409 85 4093 05 4093 05 4093 05 12279, 15 15874 13 18 Sold for cash to J. Lorillard, 1 Pipe, 120 galls.. Port Wine . . @ $3. Sold Wm. Park on his note @ 4 mos. — due June 12, 5 Pipes, 600 galls., Port Wine . . @ $3.50 Sold to W. Bayard & Co., as cash, this day, 3 Pipes, 360 galls.. Port Wine . . @ $3. Shipped to New Orleans, per Brig Jersey, and consigned to J. Taylor & Co., for sale on account of Morris's Sales, 10 Pipes Port Wine, 1200 galls., invoiced at $3.50 per gallon.* Sold to R. Banks, as cash, this day, 2 Pipes, 240 galls., Port Wine . . @ S3 50 Rec'd for n/p. of the above consignment to J. Taylor 6 Co., Barclay & Co.'s Acceptance @ 60 days, due May 14, for Taken to my own acct. at market prices, the remaining 9 Pipes, 1080 galls., @ $3, @ 60 days, due May 14 12120. 3068. 9052. TEACHER'S EXAMINATION. 1. How do you find the entry of this upon the Day Book ? 2. How is the net proceeds found? 3. Are the entries first made here or first on the Day Book? * No fexther entry can be made of this, it being a re-consicnment, until returns are received— See March 12. t> "> """* Account of E. Morris, J. Taylor & Co., and myself, each h Sold to Warden & Bell for draft on New Orleans, 120 pieces, 4250 yards, . . . @ $2. Net proceeds of 55 pieces sold at Austin & Co.'s auc- tion Taken to my own account, 55 pieces, 1907 yards, . . . @ $2. 15874. 3594.8S H. P. 3^12279.15 4003.06 I 4500 3240 360 2100 1080 840 l- 7740 12120 3560 3814 8500 7374 16874 G6 67 u SET II.— DOUBLE ENTRY COMMISSION SALES BOOK. CONCLUDING REMARKS ON CONSIGNMENTS. 1. As the average time upon which the sales of a consignment will fall due is almost always required, the accountant must be prepared to work out the solution promptly and accurately. A course of practical exercises will be found hereafter under the head of Commercial Calculations. We subjoin the solution of the preceding sales. The following is the 2. Rule.— Multiply each sum by the time that intervenes between its maturity and that of the first sum due. Divide the sum of these products by the total amount of salee, the quotient is the equated time counted forward from the day upon which the first sum &lls due.* Let us illustrate this rule by the sales on the last page. Three days of grace are allowed upon all notes and acceptances, but no grace is allowed upon cash sales or sales on Book account. SOLD. Feb. 5. vox. Feb. 5. DATS. $360. X 0. 9. June 12. 2100. X 127, — 266.700. 9. Feb. 9. 1080. X 4, — 4.320. 18. 18. 840. X 13, — 10.920. Mar. 12. May 14. 7740. X 98, — 758.520. ^ 12,120. )l,040,460.(86days: Gives 86 days, nearly, to count forward from Feb. 5, making the sales fall due by average May 2. Fractional parts of a day are never counted, unless the fraction amounts to a half day or upwards : it then counts another day. 3. As inexperienced persons are apt to mix up consignments, charges, and advances upon the consignments all into one account, I must again direct particular attention to Rule X., page 41. I have there marked out the course for conducting these accounts, sanctioned by the most experienced accountants. A regular account of sales drawn out upon this plan enables the owner of the consignment to see what the adventure has produced him, and thus determine at sight his gain or loss by the speculation. This will not be shown by your account, if you mix up advances and other matters in it. 4. When consigned goods are retailed, it is hardly possible to keep a detailed account of each sale. You may, in such cases, credit the sales to your own merchandise account; and when the account sales is required, the difference between the quantity received and tHp quantity on hand, will be the quantity sold, for which render account sales, closing the sales account, and entering on the Invoice Book the articles on hand when this account was rendered. * Pkoof — MolUply each sum by the time that intervenes between its maturity and that of the last sum falling due. Divide the sum of these products by the whole amount of sales, the quotient is the equated time codntino back from the day upon which the latest sum falls due. 68 DOUBLE ENTEY BOOK-KEEPING. DAY BOOK AND JOURNAL. SET II. PEELIMINARY DIRECTIONS TO TEACHERS AND LEARNERS. -The opening Day Book entry of this set is drawn from the » balance account of the pre- ci iing set. By referring back to it, and attentively comparing it, the learner cannot fail to obtain a distinct conception of the process of opening new books from old ones, — an ope- ration seldom well understood by young book-keepers. He must also understand that the cash in hand 'must be entered in the Cash Book. The Merchandise on hand 'must be entered in the Invoice Book. The Notes and Bills in hand *must be recorded in the Bills Receivable Book. The Notes and acceptances he has outstanding «must be recorded in the Bills Payable Book. "^ The teacher will now follow the directions given on page 27 for inducting his pupils thoroughly into the language and form of the journal. Those who patiently submit to that course will seldom experience any difficulty after the first one or two pages. Students will also find it a useful exercise to give verbally, the journal entries to be made in their books by each of the persons named in our entries. As some business men require their journals to embody brief explanations of their trans- actions, I have journalized the month of May in this manner as a specimen. But I have not given the whole journal upon this plan, because, in his incipient steps, every thing that takes his attention off the Ledger titles has a tendency to perplex and embarrass the learner. We have adhered to that form of Journal in most general use, and it is to be observed that it IS a form, the practice upon which, prepares the student for using any other without difficulty. It will be found useful to have some copies of the text-book prepared with blank paper pasted over all the Journals. From these books require each pupil, in turn, to journalize all the Day Book entries of the month upon the black-board, before writing them in his books. This compels them to study each lesson well mentally before attempting to write it. It the learner does not wish to cheat himself out of thorough instruction, he should never copy any part of the printed Journal. 1. Where do we obtain the materials for openinjr this set of books? 2. What is to be done with the cash in hand? TEACHER'S EXAMINATION. 3. What with the Merchandise in hand ? 4. What with the Notes in hand ? 5. What with our own Notes in circulation ? 69 11;:' «tM NEW YOBK, January 1, 1867. 'Inventory of my Effects "^ Balance account, Ledger A. fol. 3. — Mdse. in hand . . . ^ Invoice Book, p. 1. $3000. Cash in hand .... Ledg. A. fol. 2. 7300. Due me on notes . . . f Bill Book, p. 1. 3000. William Hay owes me . . Ledg. A. fol. 2. 8000. House and Lot 44 Broadway # ir 8. ''^.^A^^- '' ^^^^^ 'Debts owing by me '^ Balance account Ledger A. fol. 3. — Due on my notes ^ Bill Book, p. 2 300. Due Warden & Bell .... Ledg. A. fol. 2. 500. // R. Morris, London, due 31st ult. . u it 2000. 3. Sold A. Stuart & Co. for Cash — Mdse. ^ Sales Book, p. 1. n •Received *^ Brig Jersey, Spencer, Master, from J. Taylor & Co., New Orleans, for my acct. — 24 bales Cotton, ^ Invoice Book, p. 1 Accepted their draft on me for amt. of the Invoice in favor of Ryan & Dale, @ 10 days' sight, $1000. // Bought for Cash of Martin Hunter & Co., Flour ^ I. B. 1. ::==:==^ 10, ======= Sold Thomas Edwards, on his note @ 30 days, Mdse. '^ S. B., p. 1. Sold James Carter on account, Mdse. "^ S. B., p. 1. ====== 15, == Bought of Walter Bayard & Co., on my note @ 1 month, Mdse. J.. J5. J.. .....••••• •Paid James Carter's order on me in favor of H. Pryor, in Mdse. •f Sales Book 1 =================== 16. ===========================^ * Received from James Carter Cash in full ___ H *Paid Cash in the City Bank for my note in favor of A. Stuart & Co. ........ 300. Also, my acceptance of J. Taylor & Co.'s draft in favor of Ryan & Co . . • . . 1000. If Sold James Carter on account, Mdse. *^ Sales Book 1. 1. Tndon lOth April next, to . $S888.88 Gave my bonds to the Custom House ibr duties @ o and 15 mos. 22l^L\22 Paid tVeiirht in Cash ........ 85. 'Keeeived from K, 3Iorris, by the Ship Herald, Chase, master, froni Lon- don, 80 pipes Port Wine, '^ Invoice Hook, £2000 sterling, for sale on ! his account. Gave my bonds to the Custom House for duties @ 3 and (> mos. 82222.22 Paid freight in Cash 167.78 5. Paid Cash for Cooperage and Cartage of Morris* Wines Sold for Cash to Jacob Lorillard, 120 gallons R. Morris' Wines. C. S. B. 1. @ $3 ^ gallon =^ 6. •Discounted in tlie City Bank W. Morris' note of 8800. Keceived Cash net proceeds .... 27 days' discount ...... =- - 9. 8706.40 3.60 Sold Wm. Park on his note @ 4 mos., endorsed by Warden k Bell, 5 pipes R. Morris' Wines, p. C. S. B. 1 . 12. * James Carter, who lately failed, compounds with me for 50 cents on the dollar for the note which I hold against him due yesterday. Received a new note endorsed by W. Hay for . . . . $300. The balance is lost 300. // Rec'd Cash of T. Edwards on account of his note due this day * Shipped by the Brig Jersey, Spencer, master, and consigned to J. Taylor & Co., New Orleans, 10 pipes 1200 gallons R. Morris' Wines, for sale on account of his consignment. C. S. B. 1. Paid freight, &c., in cash . . . . . • . ... /y •Shipped by the same vessel, consigned to J. Taylor & Co., for sale on my account, 3Idse. from store, p. Sales Book . . . . 82760. Invoice of Table Linens, bo't of Wm. Hay on acct. @ 3 mos. . 1500. Freight and charges paid in cash ...... 33. * Shipped by the same vessel, and consigned to J. Taylor & Co., by their order and for their account, an Invoice of Tea from store, p. S. B. (due this day) .......*.. 8600. Paid Freight and Insurance in cash ...... 11. Commission on 8600 at 5 per cent, is . . . . . 830. Commission for effecting insurance '} per cent, is . . 3. 33. 1. We credit Morris only for what we get into debt to him — see note 1. p. 30. •2. We never credit any account for the invoice of a consignment — see Questions 21 and 28, p. 41. 3. Bills Receivable was debited (Jan. 31), therefore we must now credit that account. 4. Bills Receivable must be creditetl for the am't of the note given up ; Profit & Loss is Dr. for the loss. 5. The first of these shipments is a re-consignment, and cannot be debited to any account. The second is an adventure of our own; we debit shipment to N. Orleans — Rule XL, p. 4L Ihe third being shipped by Taylor & Co.'s order, and on account, they are debited. 74 11106 10 2390 5 360 800 2100 600 2000 28 4293 644 NEW YORK, February 1, 1867. 1 5 4 2 7 4 2 7 2 2 7 3 2 6 3 7 3 3 6 2 3 » Merchandise, Dr. to Sundries To R. Morris . . '/ Bills Payable . " Cash .... 1:11106 10 ' R. Morris' Sales, Dr. to Sundries . To Bills Payable It Cash 2390 R. Morris' Sales, Dr. To Cash Cash, Dr. . To R. Morris' Sales 5. = ' Sundries, Dr. to Bills Receivable Cash Profit and Loss Bills Receivable, Dr. To Morris' Sales 9. If. 360 * Sundries, Dr. to Bills Receivable . Bills Receivable Profit and Loss .... Cash, Dr. To Bills Receivable 796 40 3 ,60 2100 7 2 7 1 3 2 8 1 2 8 » Morris' Sales, Dr. To Cash * Shipment to New Orleans, Dr. to Sundries ToMdse n Wm. Hay '/ Cash "John Taylor & Co., Dr. to Sundries . ToMdse " Cash >f Commission .... 300 300 2000 28 4293 TEACHER'S EXAMINATION. 1. Why not credit Morris for the whole $11,196.10 ? 2. Why not credit Morris for this invoice as well as that in the last entry? 3. ^hy not credit Bills Payable as we did with 2d entry Jan. 31st ? for $3W ? I^«ceivable for the whole |600 when we only got a new note ^* ^t^o^hem ?^'' ^''^'^'''" * ^°' *^'' *" *^^* *^'"^® Bhipments-they being consigned After this set is posted the student must make out all the accounts, accounts of ^JXiUZTr^T ..Al^^'.^t^o"**" the notes, orders, drafts, acceptances, ani bins of exchange, inserting his own name when he is the promisori acceptor, or endorser 75 644 3 8888 88 2222 22 85 2222 22 167 78 5 360 800 2100 600 2000 28 2760 1500 33 600 11 33 '','• I I i: 11!^ m • • NEW YOBK, February 18, 1867. * Received from T. Edwards for the balance of his note due 12th instant, an invoice of Flour "^Q I. B. 2 n Insured my house in Broadway, for one year, in the Sun Office, for 810,000, @ 2 perct.; policy $1. Amt. paid in cash * Insured in the New York Office, $12,000 for one year on my stock of mdse. in my store in Front street, @ li "^ ct. ; policy $ 1. Amt. paid in cash , . •Pd. R. Morris' Bill on me at sight for $4440, in favor of R. Banks, In Mdse. ^ Sales Book 3 200. R. Morris' goods f C. S. B. 1 Cash 840. 3400. Pd. my note due this day in favor of W. Bayard Co. for 1600, In R. Morris' Wines f C. S. B. 1, sold him 9th inst. $1080. Mdse. "^ Sales Book 3 500. Cash for balance . • 20. , 20. ^^ * Accepted R. Morris' Bill on me at 10 days' sight in favor of R. Banks, for ........... Refunded cash to R. Banks for 6 galls, overgauged Wine belonging to R. Morris, sold him 18th inst., twenty-one dollars. R. Banks.* == 25. =========== Collected for R. Morris Ryan & Dale's draft on Barclay, Fox & Co., for $2000. Net Proceeds Rec'd in Cash 1995. Also my commission on same, i "^ ct. . . . . 5. • Lent Cash to Capt. John Bowline on the Bottomry Bond of his Ship, the Hunter, payable with 20 "^ ct. prera. to my agent, R. Morris, in London, 10 days after the arrival of his Ship in England . . . . • Bought for Cash of Baker & Fox their Bill at 60 ds. on R. Morris for £1000 Sterling Premium on the same, 8 ^ ct. 4444.44 355.56 ' Found in the Park a purse containing eighty half eagles, which I have advertised but no owner has claimed it ...... 1. I have here followed the usual practice ; but I prefer the course reccommended in Note 3, page 48. 2. I have made it a rule to debit Merchandise only for the cost and charges of bringing it into store and for manufacturing. The cost of keeping the store I carry to Expense or Profit and JL^ss. 3. We here pay this amount fob Morris ; it is the same as paying it TO him ; he gets into our debt and is therefore Dr. •i. We should never debit a consignment account for any thing but the charges. All advances made on acct. of it should bo debited to the owner's private acct. — Rule X., Note 29, p. 41. 5. This is a Bill Receivable, that account is therefore Dr. 6. We can only debit Bills Receivable for the face of the bill, not fur what it costs. 7. We debit property for its value when it becomes ours, whether it costs us any thing or not. • This is BanKs' signature, making a receipt of the entry. — See Note 5, p. 12. t 76 1000 201 181 4440 1600 2500 21 2000 2000 4800 400 NEW YORK, February 18, 1867. 1 Mdse., Dr. . 3 , 1 To Bills Receivable 4 House in Broadway, Dr. 2 To Cash . 6 *Profit&Loss, Dr. 2 To Cash 5 1 7 2 4 7 1 2 5 4 7 2 2 5 8 3 2 2 3 6 2 6 'R. Morris, Dr. to Sundries To Mdse. // Morris' Sales // Cash .... Bills Payable, Dr. to Sundries To R. Morris' Sales // Mdse. n Cash # * R. Slorris, Dr. . To Bills Payable 20. R. Morris' Sales, Dr. To Cash Cash, Dr. to Sundries To R. Morris . /' Commission . 25. ** Bills Receivable, Dr. To Cash . Sundries, Dr. to Cash •Bills Receivable Profit & Loss 'Cash, Dr. . To Profit & Loss 1000 201 181 4440 1600 2500 21. 2000 2000 4444 44 355 56 400 , 1000 201 181 200 840 3400 1080 500 20 2500 21 1995 5 2000 4800 400 2. 3. I 4 ! 15. 6. 7. TEACHER'S EXAMINATION, ^use^the Riif «?"' P^'? l>y i"?talments, is it not liable to complicate and coa- ^ hy debit Morris ? What 18 a Bottomry Bond? Repeat Question 5, Rule IX d 40 n ny debjt Cash for this, seeing it cost us nothing? 77 Ut' fi. \k li m I. NEW YOBK, February 28, 1867. »ISold for Cash, at 8| per cent, prem., to R. Irvin & Co., Baker & Fox's Bill on R. Morris for £1000 sterling, equal to . 4444.44 Premium 8* per cent 377.7g 4822 22 *Sold Warden & Bell, by C. Murray, Broker, my Bill of Exchange, @ 60 days' sight, on R. Morris, for £1000 stg. Prem. on the same 8^ per. ct. . 8377.78 Murray's Brokerage i per ct. off . 12.06 gain 365.72. Add 33 days' Int. included in Warden & Bell's note 11^^ Whole gain on the transaction Received in payment Warden & Bell's note .... 33 days' Interest included . . Cash for the balance ..... 4444.44 376.72 4821 16 2000. 11. 2011. 2810.16 4821.16 * At the fire which broke out in my store in Front Street yesterday, goods were destroyed amounting, *^ Sales Book, 3, to . March 1. — ■ 1st Co. William Hay and myself have entered into an arrangement for the pur- pose of buying and selling Merchandise on joint account, each partner's interest in such speculations to be equal. He now advances me cash 369U to be invested under this arrangement •William Hay has sent to my store for sale on joint acct. 5 pipes, 900 gals., Madeira Wine . . . . @81. $900. My half, due June 1st, is . . ... 2. ^^- - ' = 2500 *Bo't of James Walker on Book acct., @ 30 days, for the joint acct. of myself and Wm. Hay, 20 tierces, 24,000 lb.. Rice @ 5 c. W. Hay's half, due April 1st, is . . $600. My half, n » n n ia , . . 600. $1200. Received Cash, freight of the Ship Hudson 450 tt Being appointed Agent for the Ship Roscoe, I have purchased of Capt. Manly i of the vessel for $5000. Sold him, in paynient — 5 pipes, 900 gals., 1st Co. Wine 20 tierces, 24,000 lb., 1st Co. Rice Balance paid in Cash 1200 1850 @ 81.i $1200. @ 7 cts. 1680. 2880.' 2120. 4. * Paid Cash for Disbursements of Ship Roscoe Passed my note at 4 mos. for her Ins. on 20,000 @ 2 p. ct. 850. 400. 5000 1250 1. Here we sell two bills, both drawn on Morris. Bills Receivable is credited for the first, that account having been debited when we received the bill and gave value for it— note 6, p. 76. We credit i ■ Morris for the other bill, because we have drawn it ourselves, and therefore get into his debt. 2. See Day Book, February 18, and Sales Book, February 28. We debit the Insurance OflBce, as we hold it responsible for this amount. 3. We are not responsible to Hay for any thing more than our own share — 5*50. 4. Here we debit Hay for his half, because he becomes owner of half the purchase, and has not paid us for it. , . J .XL XV X /. 6. The advances we make as Agent for the vessel, must not be mixed up with the cost of our own share of her: therefore we must have two separate accounts. 'ill 2 3 6 3 2 5 6 7 3 9 9 9 NEW YORK, February 28, 1867. Cash, Dr. to Sundries » To Bills Receivable . /• Profit & Loss . Sundries, Dr. to Sundries . Bills Receivable . Cash .... » To R. Morris // Profit & Loss t • • • • • • ! 4822 22 $4821.16 • * • • 2011 2810 16 4444 44 377 78 8 ' New York Insurance Office, Dr. To Mdse. Mar. It 3690 4444 44 376 72 3690 Cash, Dr 2500 3 I To Wm. Hay [j 9 1st Co. Sales, Dr. . 3 » To Wm. Hay . 2500 450 2. Sundries, Dr. to James Walker Wm. Hay * 1st Co. Sales 2 Cash, Dr. . , 6 , To Ship Hudson . 600 600 1850 450 1200 1850 ft Ship Roscoe my i. Dr. to Sundries . To 1st Co. Sales . . . . // Cash 4. 5000 9 * Ship Roscoe & Owners, Dr. to Sundries . 2 To Cash 4 n Bills Payable TEACHER'S EXAMINATION 1. Why is Bills Receivable account not credited alike for both these bills ? — Repeat Rule IX., p. 40. 2. Where are the particulars of this entry for holding the insurance oflBce respon- sible for this amount? 3. Why should not Hay have a credit for the whole amount of goods which he put into my hands ?— Repeat Rule XII., and note 8, p. 43. 4 Why not debit Sales in Co. for the whole amount? 5. Why not debit the account of Ship Roscoe my i for the amount? 2880 2120 1250 850 400 79 t \ I r 6 NEW YORK, March 4, 1867. Paid Cash to the City Bank for my note due to-morrow in favor of W. Morris Also paid Cash to the Merchants' Bank for my note in favor of J. Warden . ......... 5. 800. 600. ■ Sold E. Banks 5 hhds. Havana Sugar, viz. — 1050, 1150, 1000, 1200, 1100 5500 lbs. Less Tare, 10 per cent. 550 4950 lbs., @ 10 cts. 495. 5 chests Y. H. Tea, viz. — 80, 85, 75, 90, 70 . . . 400 lbs. net. @ 90 cts. 360. 6 ps., 20^ 19?, 20, 21, 19, 20, 120 yds. S. F. Cloth, @ $10. 1200. 6 doz. pair best 1^4 Bath Blankets . . . @ $120. 720 83. 450. .75 15. $9. 90. 50 24. 1. 150 pieces 3-color Merrimac Prints 20 yds. Super Saxon Flannel . 10 // Finest Green Broadcloth 16 // Fancy Fig'd Satin 2 Packing Cases . Received in Payment my acceptance for R. Morris, due this day 2500. Banks' Order at sight on J. Walker, which I deposit on acct. with Walker . 600. Cash for Balance 255. $3355. Received Cash for Freights and Passages "^ Ship Roscoe •1st Co. Mdse. being all sold, I render Wm. Hay acct. and close the sales as follows :— Total Sales, $2880. My 2* Commission is Storage .......... W. Hay's half net proceeds due this day is . . . My net gain is ........ 12. 72. 8. 1400. 350. Received from J. Taylor & Co., New Orleans, acct. sales of Morris' Wines. Net proceeds, $4500, for which I have received their bill @ 60 days on Barclay, Hope & Co., which is accepted ..... • Received from J. Taylor & Co., N. Orleans, acct. sales of my consignment ■^ Brig Jersey. Net proceeds, $5800, for which received their Invoice of Sea Island Cotton, amounting to Paid freight and charges on the same in cash 5800. 180. Taken to my account the remaining 9 pipes, 1080 galls., Morris' Wines, @ ^S'^ gall.j as cash in 2 months — ' n ~~ Received from the New York Insurance Office Cash in full Shipment to N. Orleans closes with a gain of 1. This entry shows how a sale must appear on the Day Book when no Sales Book is kept. 2. 1 have to account to the Ship Roscoe and Owners for this sum, therefore I credit their account. 3. The total sales per Ledger is ;S2880, less charges $80 = $2800, half of which is Hay's share, ;?1400. Our half first cost per Ledger was $1050, and our share net proceeds being $1400, leaves our gain $350. 4. Taylor & Co. having remitted the proceeds of the sales, the transaction is not carried to their account. We have only to debit the thing received, and credit the account that brought that thing in. — Rule V. and TIL, p. 39. 6. Always close property accounts when all is sold, as we do with personal accts. when we settle with the parties. — Note 4, p. 70. The gain or loss must appear iu the Profit & Loss acct., for reasons given Mdse. acct. — Note 4, p. 33. 80 1400 3355 1800 1830 4500 5980 3240 3690 1507 NEW YORK. March 4 1867. 4 2 1 4 7 2 2 9 9 8 6 3 3 7 1 7 2 1 7 2 8 Bills Payable, Dr. To Cash . ' Sundries, Dr. to Merchandise Bills Payable . James Walker Cash 1400 Cash, Dr. . ' To SJjiip Koscoe & owners . 1st Co. Sales, Dr. to Sundries, to close account To Commission .... // Profit & Loss $8 and $350 * . ' • '' W. Hay • • 12. Bills Receivable, Dr. To Morris' Sales Merchandise, Dr. to Sundries * To Shipment to New Orleans tt Cash 2500 600 j 255 I 1800 1400 3365 1830 1800 4500 72 358 1400 4500 Merchandise, Dr. To Morris' Sales . 6980 7 6 Cash,Dr To New York Insurance Office, to close account * 3240 3690 •Shipment to New Orleans, Dr., to close account . lo Profit & Loss . TEACHER'S EXAMINATION. 2 Whv Si'sMn pP*'"**'"'*^' ^^^^° ''' ^^^ ^^y Bo<^k Entry? t „ "J 9^^^^ ,Shjp Roscoe and owners for this sum ? Ques«oT5,?a%%?.*'' ""'' ^'''''^' ^"^ "^ ^-^^-^ g-° found here? Repeat t' wSv =h?'i!,^.uP'"®°* *° N®^ ^•'^^'^"8 for this $5800? 6. Why should this account be debited for this sum? 6800 180 3240 1507 3690 1607 f 81 m ■il w* I I; '■ i L r 1 1 I NEW YORK, March 12, 1867. 1 Morris' Consignment being all sold, I render him f 5^^^°,^ ^^closm^^^ sales as follows :-Total sales $12,120, charges posted to date, ^2444^ My commission on the sales @ 5 f cent., is . . • • ''O^^- Storage and advertising . • ', ^^ Qft^2 Net proceeds at Morris' credit, due 2d May . . • • ^^± 967«i «A8 Executor of the estate of the late A. Lenox I have received possession of the following property for the use of his heirs, viz. , Cash in deposit in the Manhattan Bank .... ^-^J^ • ! Notes in hand, No. 15 and 16, ^ Bill Book .... 170U. House and lot 49 Cedar Street, valued at .... ;J^"^^- 100 Shares City Bank Stock .... 10000. dlZUU 1%. •James Carter's Note for S300 endorsed by W. Hay, fell due in my hands yesterday and remaining unpaid, I value the same in account with Hay as cash due this day Pd. Cash for A. Lenox's Note in the Manhattan Bank - 17. — * James Day's Note for 6500 falls due in my hands to-day. Rec'd in payment his new Note @ 60 days for . . • 1 9 Cash for the balance ^^^- 63 days' interest on new Note . • '^-^^ 300 2500 400. 104.20 Paid Cash Attorney's fees for Estate of A. Lenox » n It Insurance of house 49 Cedar Street 20. 10. 160. 504 20 170 'Received H. Pamelas Note @ 60 days for balance due the Estate of A. Lenox // II 1340 •W. Hay has put into my store for sale on joint acct. 9 pipes Wine 1080 gallons _• vv '^ ' I have added the same quantity at same price from store . ^5-^"- S6480. My half is ^=^=:==^ 25. •Wm. Hay and myself have bought for cash on joint acct. 200 ^^^^^ Cot- ton, amounting '^^ invoice to . ??» • Each partner has paid his own share in cash .... 3240 4500 1 The total sales were $12,120, less the whole charges $3068, leaves net proceeds $9052.-Form IV. -f r^:^^l^^^^^^l^^^^f^r^ ^L^r'CfiVrLoSis^r-edited for the t. The things received are Dr. to the things delivered, and Interest or Profit & Loss is credited lor tne :^° This building belongs to the Lenox Estate, and we debit it for what we expend upon it, and credit '" rroMhe re^'ons given in Rule XIL neither of these entries affects Hay's acct. in our Books. 82 NEW YORK, March 12, 1867. 7 8 6 5 10 2 3 10 10 3 3 10 2 3 2 3 6 2 10 10 3 10 9 1 9 2 Morris' Sales, Dr. to Sundries, to close acct. To Commission '/ Profit & Loss ^ // R. Moriis 9676 // * Sundries, Dr. to Estate of A. Lenox Cash Bills Receivable .... House 49 Cedar Street City Bank Stock .... ' Wm. Hay, Dr. To Bills Receivable 16. A. Lenox Estate, Dr, To Cash. . 1 1 ■ i : ' i 606 18 9052 1 7500 1700 12000 10000 1 31200 it 300 1 It 300 2500 * Sundries, Dr. to Sundries Bills Receivable. . Cash To Bills Receivable // Profit & Loss 17. 2500 ^504.20 400 I 104 20 4J // Sundries, Dr. to Cash ^Estate of A. Lenox . House 49 Cedar Street Bills Receivable, Dr. To Estate of A. Lenox — 20. tt » 1st Co. Sales Dr. To Mdse. . 25. « 1st Co Sales Dr. To Cash 10 160 1340 3240 4500 500 4 20 170 1340 3240 4500 TEACHER'S EXAMINATION. o S?7 ^° ^-t ^^^^^ net proceeds due Morris hero?— Repeat Quest. 26. p. 41. 2. Why credit the Estate for all this property ? *» vt ou «, p. tx. 3. Why debit Hay for this note ? 4. Why debit Bills Receivable and Cash, and credit Bills Receivable, and Profit &Loss, all m the same entry?— Repeat Rules V. and VIH 6. J^hy not debit Estate of Lenox for this $160, as this house belongs to it? Xeal Ru?o XII?;'S: ""'"' '" '^^'"' '''^'^"°* '° ''''''' «^ '''''' ^^««'- 8S 8 h •! , f-^ ! I b> NEW YOBK, March 28, 1867. > Placed to 1st Co. Account 500 bbls. Flour from store William Hay has sent in 300 bbls. My half is 32000. Rec'd Bal. of Wm. Hay's share in cash 500. $2500. 1500. = 31. ' Paid Cash to Charlotte Lenox on acct. of her legacy * Paid Cash to Robert Lenox on acct. of his legacy == April 1. == Lent Cash to James Walker on his note @ 6 months, endorsed by War- den & Bell, and dated the 6th instant, for . . . 2000. 6j% months' Interest included in the note .... ^^« 2500 500 800 5. Shipped by the Columbia, Gray, Master, consigned to Baring & Co., Liverpool, for sale on my account — 40 bales Cotton from store 2500. 100 bbls. Flour from do @ 85 500^ 3000. 4500 bush. Wheat @ $1, Bought of P. Nevius on Barclay, Hope & Co.'s acceptances . . . 4500. Shipping Expenses paid in Cash 348.55 Passed my note to the Marine Insurance Co. for pre- 2063 mium ' on $8010 @ 2 per ct. (covering the pre- mium and policy), Policy $1.25 161.45 8010 * Shipped by the Brig Cherub, consigned to Hartwell & Thorndike, Bos- ton, by order and for account of R. Morris, London — 240 bbls. Mess Pork, Bought of Wm. Hay @ 30 days, due May 5th . $2000. Paid Shipping Expenses in Cash Passed my note @ 30 days for Insurance Commission on purchase of $2000 @ 5 per cent i per ct. for effecting Insurance . - ^^^^ 10. -= 100 5 20. 41.25 105. * Paid Cash for honor of John Taylor & Co., their draft on Sidney Wood & Co. being Protested for non-payment. Bill $1200, Protest, &c., $4 1204. My J per ct. Brokerage ....... 6. Received from the Executors of my father's Estate 50 shares Merchants* Bank • Stock, valued at 1. Hay does not here get in debt to us, nor we to him. Therefore we have no entry for his acct. 2. These persons being Legatees, we must debit their private accounts for all payments we make them, until the final settlement.— Note 3, Lenox Kstate, p. 110. 3. The invoices, shipping expenses, and policy, amount to $7849.80. Then 98 : 100 : : 7849.80 : $8010, the sum upon which to cast the 2 per ct. premium, which amounts to $1G0.20 + 7849.80 = 8010, thus insuring both premium and policy with the shipment. 4. Morris gets in debt to us for this amount, therefore he is Dr. — not Hartwell & Thorndike. 5. We were not obliged to pay this draft. We have done it to save the credit of our N. Orleans correspondents, Taylor & Co. 6. We might credit Profit and Loss, but such additions to our capital belong more properly to Stock, for reasons given in note 3, page 30. 84 2166 1210 5000 25 NEW YORK, March 28, 1867. 8 1 9 2 2 10 * Sundries, Dr. to Mdse. . 1st Co. Sales . Cash .... 31. Sundries, Dr. to Cash ' Charlotte Lenox . 2000 500 10 * Robert Lenox . 3 2 6 7 1 3 2 4 =-^ AprU 1. Bills Receivable, Dr. to Sundries To Cash '/ Profit & Loss . 6. = ' Shipment to Liverpool, Dr. to Sundries To Mdse V Bills Receivable .... " Cash // Bills Payable .... 500 800 2063 2500 1300 8010 2000 63 * R. Morris, Dr. to Sundries 3 I To Wm. Hay . 2 // Cash 4 tf Bills Payable 8 'f Commission 8 2 8 4 1 2166 25 3000 4500 348 161 I 10. * John Taylor & Co., Dr. to Sundries To Cash '/ Commission .... Merchants' Bank Stock, Dr. • To Stock .... 1210 TEACHER'S EXAMINATION. o ^^ ^^ t^^???u^°t"'^ ^^^^ ^°^ ^*y'« account? Repeat Rule XII., p. 43. 2. Why not debit the Estate of Lenox, these being payments to the Legatees? A S?. ^^ "°" **^® amount upon which to cast the premium ? to t^eJ^r*"^^" * Thorndike not debited for these goods, they being shipped 5. Why should we pay this draft, it being drawn on Sidney Wood & Co.' t. Why not credit Profit & Loss for this $5000 ? 5000 2000 20 41 \2'i 105 55 45 1204 6 5000 85 9 f. f NEW YORK, April 10, 1867. Accepted supra protest for the honor of J. Taylor & Co., their bill at 10 days, on Sidney Wood & Co., for $600; protest $1 . $601. My i ^ cent. Brokerage — due 23d inst ^- ' Shipped by the Cambria, Adams, master, and consigned to R. Morris, London, for sale on his acct., J. Taylor & Co., and myself, each h 60 Bales Sea Island Cotton from store 100 Barrels Flour from do. @ $6 200 Bales 1st Co. Cotton .... Shipping Expenses paid in Cash Passed my Note @ 3 mos. for insurance . My commission on $14400 @ 2* ^ ct. is „ II Effecting Insurance \ "^ ct. J. Taylor & Co.'s J is ^ 4980.33 R. Morris' '/ 4980.33 My (2d Co.) // 4980.34 $14941. Due this day. $4000. ^00. 4600. "T 9500. 300. 145. $360. 36. 396. 604 • Shipped by the Briir Tribune, Speer, master, and consigned to C. Hartwell, Boston, 18 Pipes Wine belonging to 1st Co., amounting ^ Invoice to $6480. My half is .... $3240. Paid shipping expenses in cash ^^- =:====== 15. 14941 3300 * Shipped by the Erie, Truck, master, and consigned to Baring & Co., Liverpool, for sale on 1st Co. account, 400 Barrels Flour from store, @ $6, $2400. 150 // // put on board by Wm. Hay, @ $6, $900. Wm. Hay passes his Note for insurance . . • 165. 1065. I have paid the other expenses in Cash .... 1^3. My half is . . 1799. Wm. Hay's do. is . 1799. $3598, as cash this date. 3598 ^ Received from J. Taylor & Co., of New Orleans, invoice of 100 Bales Cotton shipped to London on the 2d inst., consigned to R. Morris for sale on their acct., Morris' acct., and on my acct., each ^. || My (2d Co.) i due in cash 2d inst., is 20. Received Cash amt. of Warden & Bell's note due 31st ultc, 20 days' interest on the same .... u 2011. 6.70 In .^ , p « Received from J. Walker invoice of sugars amounting to .Mi KjO. ^^ j^^g purchased to sell on our joint acct. My half is 84000 which 1600 2017 70 2000 1. This means accepting after protest— after Sidney Wood & Co. refused to accept. The bill is then in the same situation as that in Note 5, last page, and if not protected here mil return under damages against our New Orleans correspondents, Taylor & Co. We of course debit them for the amount. — Form XXI., p. 120. , ., , * 2. We have paid for the whole shipment, and Taylor k Co. and Morns are each responsible to us for their respective shares from this date. . 3. This is part of the ist Co. property shipped to another market, and our share is charged to a new acct. : therefore Ist Co. Sales must be credited for our share. ,. t* 4. We debit Ilay for his share of the adventure, and credit him for what he has paid upon it. It would havo been equally correct to have debited him for the balance only.— Note 4, p. l8. 6. We credit Taylor & Co. for our share of this adventure because they have paid the amount for us, and w»' still owe them for it. (J. We call this an adventure because we do not manage the sales. 8 4 S 8 5 11 1 9 2 4 8 11 9 2 11 3 1 3 2 11 8 2 3 6 11 7 NEW YORK, April 10, 1867 * John Taylor k Co., Dr. to Sundries To Bills Payable // Commission .... ' Sundries, Dr. to Sundries . J. Taylor k Co. . R. 3Iorris 2d Co. Shipment to London . To Mdse. .... // 1st Co. Sales . '/ Cash .... '/ Bills Payable . I' Commission . // ' 1st Co. Shipment to Boston, Dr. to Sundries To 1st Co. Sales '/ Cash = 15. Sundries, Dr. to Sundries * 1st Co. Shipment to Liverpool Wm. Hay To Mdse '/ Wm. Hay . . . . » Cash 2d Co. Shipment from ^N^. Orleans to London, '' To J. Taylor & Co 20. Dr. Cash, Dr. to Sundries . To Bills Receivable . // Profit and Loss *3d Co. Adventure, Dr. To J. Walker 4941 $3598 604 601 3 4980 33 4980 33 4980 34 ■ 4600 9500 300 145 396 3300 1 3240 60 1799 1799 2400 1065 133 1600 2017 70 2000 1600 2011 6 70 2000 TEACHERS EXAMINATION. 1. What does accepting supra protest mean? 2. Why debit Taylor & Co., and Morris, for their shares at this time?— Repeat note O, p. -io. '^ ?* Sl*^' ^•'' TT^ ^?- ^i^'l^ credited for this amount, seeing the goods are not yet sold? 4. Why IS Hay both debited and credited in the sjime entry ? « T^^^ ^^^'^^'* Taylor & Co., seeing we have not received any thing from them? 6. Why do \vc call this an adventure ?— See note 9, p. 42. 86 87 {■ Ji » 10 NEW YOBK, April 20, 1867. ' Received by the Vixen, Chase, Master, from R. Morris, London, 40 bales Brussels Carpeting, amounting "^ Invoice to £2700 sterling, consigned to me for sale on 2d Co. account. My i is £900, due 10th instant, equal to ........ • S4000. Gave my bonds @ 6 mos. to the Custom-House for duties . 3000. Paid Freight and other charges in Cash .... 185. 22. ^===.== ' Paid my note in favor of Capt. Rivers, which has lain over under protest since the 18th instant, for ..... . S8000. 4 days' Interest, $5.33, protest, &c., $1.72 .... 7.05 Sold him on account 800 bbls. 1st Co. Flour @ $6 . . . 4800. Paid the balance in Cash ....... 3207.05 8007.05 •Received Cash from W. Hay for his note due 3d inst. 19 days' Interest on same $4.80, postages 25 ^= 23. 1515.75 5.05 Paid Cash for J. Taylor & Co.'s draft on Sidney Wood & Co. Accepted by me on the 10th instant, for ........ ==^ 25. = •Received advice from R. Morris that on the 20th ultimo Capt. Bowline cancelled his Bottomry Bond on the Ship Hunter, by paying Morris the amount on my account ...... $2000. Also the premium upon the same ..... 400. — - -----^ 30. -='-=~^ ■ • Received from J. Walker account sales of the Invoice of Sugars bought by him on the 20th instant; net proceeds $5000. Myhalfis 3d Co. Adventure now closes with a gain of May.l< •Rec'd Cash for a Quarter's Rent of House 49 Cedar St. « 5 per ct. dividend on City Bank Stock . » 5 per ct. // on Merchants' w . K Quarter's Rent of House 44 Broadway . =^ .-.^- 4, - 300. 500. 250. 150. * Received Cash Freight of Ship Hudson Freight and Passage money of Ship Roscoe 3500. 4200. // •Paid Cash for two Bonds to the Custom-House for $1111.11 each ' 1. We are only accoantable to Morris for our own share of this shipment. ! 2, We can never debit the Bill account for more than the face of the note — the same as it was credited. 3. If we credit the Bill account for any more than it was debited when the note was received, it will throw the acconnt that much out of balance. 4. R. Morris gets in debt to us for the amount he acknowledges to have received for us. f. We credited him for our share of the purchase money when he bought the goods ; now, as he has sold the property, and got our share of the net proceeds in his hands, we debit him. 6k These different accounts must have credit for these sums, because they have brought us in these amounts. 7. 1 am sole owner of the Hudson, but only part owner and agent of the Roscoe. ft These are Bills Payable : we have opened no Custom-House bonds account. 8i 7185 8007 , 05 1520 80 601 2400 2500 500 1200 7700 2222 22 NEW YORK, AprU 20, 1867. 10 12 2d Co. Sales, Dr. to Sundries 5 1 To R.Morris . 4 2 9 2 4 12 5 3 6 7 11 11 6 12 10 10 4 4 12 6 9 4 12 7185 If Bills Payable . w Cash . 22. Sundries, Dr. to Sundries, $8007.05. 4; » Bills Payable .... 6 Profit & Loss .... To 1st Co. Sales .... » Cash ..... 8000 7 05 2 I Cash, Dr. to Sundries 3, « To Bills Receivable . 6 // Profit & Loss . 23. Bills Payable, Dr. To Cash 25. 1520 4000 3000 185 I I 80 * R. Morris, Dr. to Sundries To Bills Receivable » Profit & Loss 30. » J. Walker, Dr. . To 3d Co. Adventure If 3d Co. Adventure, Dr. (to close acct.) . To Profit & Loss .... -^ May 1. 601 2400 Cash, Dr. to Sundries • To House 49 Cedar Street, Received Rent fi City Bank Stock // Dividend n Merchants' do. n do. " House 44 Broadway // Rent 2500 500 1200 4800 3207 05 1515 75 5 05 601 11 ' Cash, Dr. to Sundries .... To Ship Hudson . . . Rec'd Freight H Ship Roscoe and owners // N 7700 8 Bills Payable, Dr. To Cash . Paid my two Custom-house bonds J 2222 22 1. Why not credit Morris for the whole shipment?— Repeat note 8, page 43. 2. As It cost us $8007.05 to take up this note, why not debit the Bill account for that amount? 3. Why not credit Bills Receivable for the $1520.80, having received that amount for the note ? 4. Why is Morris Dr. ? 6. Why debit Walker in this case? 6. Why is this sum credited to so many diflFerent accounts? 7. Why not credit the Ship Roscoe and the Ship Hudson alike here? 8. Why not debit Custom-house Bonds account ? 89 2000 400 2500 500 300 500 250 1.50 3500 4200 2222 22 I I f^ 11 NEW YORK, May 4, 1867. 'Sold Finlay & Co. my 50 shares Merchants' Bank Stock @ 110, 85500. Bought of them in part payment 500 bbls. Mess Pork for the joint ac- ^ count of myself and "VVm. Hay . @ 810 .... 5000. Received the balance in Cash 500. Wm. Hay's half is . . . . 2500 My half is 2500 $5000 as cash this day. Merchants' Bank Stock now closes with a gain of = . , - 8. = Paid Cash for my notes in the Insurance Office and . 8161.45 41.25 Sold James Walker my Bill at 60 days' sight on R. Morris for £1000 sterling 4444.44 8 per ct. Premium 855.56 "Received in payment Walker's Receipt for the balance I owe him Cash for the balance 13. .4200. 4800. Delivered to James Walker, for sale on our joint account, an Invoice of Sugars, amounting to 83000. My half is .... 1500. Received Walker's Check on the Bank for his half . . . 1500. Sold Warden & Bell 120 pieces. 4250 yds., 2d Co. Carpeting, @ 82, 88500. Received in payment their draft at 30 days' sight on J. Landis & Co., 'of New Orleans, for 87000, at 2 per ct. disct. . . 6860. Cash for the Balance 1640. 88500. 2 per ct. Discount on the Bill is .... 140. 18. Sold in Austin & Co.'s Auction Room, 55 pieces 2d Co. Carpeting. Net proceeds "^ their acct. sales 83560. Received in payment their note at 60 days, for . . . S3000. Cash for Balance 560. I take the remaining 55 pieces to my account at market prices 3814. // I close 2d Co. Sales, rendering each partner a copy of the account. Total Sales 815,874, Charges posted 83185. *My Storage is 83, Advertising 810 .... 813. // Commission 2h per ct. on 815,874 .... 396.85 R. Morris's i net proceeds due this day is ... 4093.05 J. Taylor & Co. i do. do 4093.05 My i do. 4093 05 My i first cost was 4000. gain . . 93.05 1. Merchants' Bank Stock is the thing delivered, and is therefore credited. 2. We debit Walker, becanse we get out of his debt for this amount.— See Led., p. 107. 3. The rule is always to debit or credit a bill for its face — not for what it passes in payment. 4. We dfdact the whole charges, §3594.85, from the total sales, $15,874, which leaves $12,279.15 ceeda, divided by 3 gives each partner's share $4093.05.— See Form V., p. 118. 90 net pro- 5500 750 202 70 4800 8000 8640 7374 8689 NEW YORK, May 4, 1867. 11 4 12 3 9 4 6 4 12 7 12 5 6 1 11 12 3 12 12 6 12 3 12 1 12 6 8 5 8 ^ Sundries, Dr. to Merchants' Bank Stock Cash Received of Finlay & Co. . Wm. Hay, for his half invoice 1st Co. Sales for my half do. . Merchants' Bank Stock, Dr. (to close) , To Profit and Loss, for net gain . -' ' 8, Bills Payable, Dr. To Cash Paid my two notes in the Marine Office 5500 500 2500 2500 750 202 70 750 202 70 Sundries, Dr. to Sundries, .... 'James Walker, for his Receipt in full Cash Received of Walker To R. Morris, for my bill on him tf Profit and Loss for 8 "^ ct. Premium on the same . $4800. 13. Sundries, Dr. to Mdse. delivered J. Walker on joint acct. 3d Co. Adventure for my half .... Cash Rec'd for Walker's half .... // Sundries, Dr. to Sundries, ' Bills Receivable for draft on Landis & Co. Cash for balance ..... . To 2d Co. Sales for sale of carpeting // Profit and Loss for 2 \^ ct. discount on draft Sundries, Dr. to 2d Co. Sales Bills Receivable, for Austin & Co.'s Note . Cash Received of Austin & Co. . Mdse. for carpets taken to my acct. "" ' n *2d Co. Sales, Dr. to Sundries, to close acct. To Profit and Loss, for storage and net gain // Commission 2| ^ ct. on $15874 . // R. Morris, for his J net proceeds // J. Taylor & Co. for 88640. 600 4200 4444 355 44 56 1500 1500 3000 7000 ' ' 1640 1 1 1 8500 140 3000 560 3814 7374 i 8689 // // 106 05 396 85 4093 05 4093 05 1. Why credit Merchants' Rank Stock? I 2. Why debit Walker ? 3. Why should not Bills Receivable be debited for §6860 only, what it was received in payment for?— Note 2, B. Receivable acct., p. 103. 4. How do we settle this transaction and find each partner's share ? I Note.— As some merchants desire their Journals to exhibit a brief recapitula- tion of the Lay Book entries, we are journalizing the month of May in this manner as an illustration. The learner will perceive from this, that by particularizim; the transactions more minutely, he can construct his Day Book on the Journal inrin, and post direct from it to the Ledger, without the use of a Journal : which in any ordinary business is, therefore, not. required. 91 NEW YOKK, May 18, 1867. * Renewed W. Wallace's Note of 81200 due 15th inst., for the same amonnt for 3 months. Received Interest, &c., in cash 25. Sold for cash at 1 "^ ct. premium to C. Hartwell, Warden & Bell's draft on Landis & Co. of New Orleans 7000. 1 "^ ct. premium is 7Q. 31. •H.Pamell has failed, and the note which I hold against him for Lenox's Estate, due 22d instant, is lost 1340. J. Day has also failed, and the note which I hold against him due 19th, is lost 400. // Shipped by the Columbia, Gray, Master, by order and for account of R. Morris, London, due in cash this day. 1000 Barrels Flour from store, @ $5 . . . . 85000. Shipping charges paid in cash 300. Passed my note to the National Insurance Co. for premium 112.30 Commission for shipping 5 "^ ct. on 85300 . . 265. » for effecting insurance i "^ ct. on 85565 13.92 278. 92 18 90 7070 1740 5691 t/ Shipped by the same vessel and consigned to R. Morris 80 packages Mdse. received from Hartwell & Thorndike, Boston My comm. receiving and forwarding 50 cts. "^ package, due June 30 Forwarded Hartwell & Thorndike particulars for Insurance ^""^^ - ' ==^- June It .^^ Bot. of Warden & Bell 2400 Barrels Genesee Flour @ 85. Amt. Invoice 812000. Sold them in part payment 50 pieces English Prints @ 84 8200. 8 pieces 320 yards Brussels Carpet @ 82 . . 640^ 840. I am to pay them cash on the 18th instant . 10000. * And to give my note at 60 days for the balance 1160^ 11160. Received from R. Morris his Account Sales of 2d Co. Shipment from *New Orleans to London. Net proceeds £1435 10s. sterling. My i is £478 10s. due April 15, equal to . . 2126.66 Also sales of 2d Co. Ship't. to London,^ "Cambria." N.P. £3800 5s. stg. My i £1266 15s. due Apr. 30, equal to 5 630. I now close the following accounts, viz. : 2d Co. Shipment, New Orleans to London, with a gain of 2d Co. Shipment to London, with a gain of 526.66 649.66 Received from C. Hartwell Account Sales of 18 Pipes Wine shipped to him for sale on Ist Co. acct. 10th Apr. last. N. P. due June 10 1. The note being renewed at the face, there ia no occasion for passing it through the books thouehit must appear on the Bill Book.— See Bill Book May 18, p. 48. 2. Pamell's note was credited to Lenox's Estate, and is,' therefore, not our loss. 3. We must for the present credit Warden & Bell for this $11160, and they will be debited for the cash and note when delivered them.— See .June 18, p. 94. 4. He has sold the goods and got our money in his hands. 92 40 12000 22 7756 66 1176 32 6480 NEW YOBK, May 18, 1867. 18 12 6 12 3 6 3 10 6 5 1 12 4 8 5 8 1 1 5 11 11 6 11 11 12 11 ^Cash, Dr To Profit & Loss, for Interest, &c., received for renewing Wallace's note for $1200 ... . ========= 25. =L=~-^ 18 90 Cash, Dr. to Sundries To Bills Receivable for Warden & BelFs bill sold to G. Hartwell " Profit & Loss for 1 per ct. Premium received on the same 7070 18 90 il. Sundries, Dr. to Bills Receivable .... 'Lenox's Estate for H. Parnell's note lost by his failure Profit & Loss for J. Day's note lost by his failure . ^>f R. Morris, Dr. to Sundries for Shipment per " Columbia^ To Mdse. for 1000 bbls. Flour from store @ $5 . tf Cash paid Shipping Charges on the same . // Bills Payable for my note passed for Insurance ff Commission for Shipping 5 per ct. on $5300 $265. " " for effecting Ins. on 5565 i per ct. 13.92 ^ Robt. Morris, Dr To Commission for Receiving and Forwarding 80 packao-es of goods from Hartwell & Thorndike . . 7 June 1. ==:-• --r Mdse., Dr. to Sundries To Mdse. . ' // Warden & Bell a *R. Morris, Dr. to Sundries .... To 2d Co. Shipment from New Orleans to London . // 2d Co. Shipment to London .... // Sundries, Dr. to Profit & Loss .... !j ^^' f ^^P^®°* fr«i» New Orleans to London, to close M Co. Shipment to London, to close C. Hartwell, Dr. To 1st Co. Shipment to Boston J" WK^ ^^ ?°,* Bills Receivable debited for this renewal, like that on March 17 » 2. J hy not debit Profit & Loss for both of these losses ? ^ ' way? ''"■*^''' * ^'" ^""^ '^'' '^'"•^""*' ^*»«° " i« t° be paid in a particular 4. Why is Morris debited for these sums? 1340 400 5691 22 7000 70 1740 5000 300 112 30 I 278 92 40 12000 40 840 111160 7756 ; 66 526 66 649 66 i 6480 2126 66 5630 1176 32 6480 93 I I H i 13 NEW YORK, June 1, 1867. * 1st Co. Shipment to Boston now closes as follows — Total Sales 86480 ; Charges Posted 860. My Commission on S6480 @ 2h per ct. is . . Wm. Hay's half net proceeds due this day is The balance of the acct. on the Ledger is 83180. My half first cost is . . . 83240. My half net proceeds is . . 3129. LossUL 83291. 162. 3129. Eeceived Cash from Warden & Bell for their note due this day n — ' Bought for Cash at 8 per ct. premium, of R. Banks & Co., for the accouct of R. Morris, their Bill @ 60 days' sight on Gibbs, Son & Bright, Lon- don, for £1500 sterling, which I remit to Morris . . 87200. My i per ct. for Investing, due this day ..... 18. ^ --= ^- 18. - ( J Paid "Warden & Bell balance due them on purchase of Flour 1st instant Check on the City Bank for 10000. My note @ 60 days for the balance ..... 1160 . _ „ 1 James Walker has returned the whole invoice of goods which I placed in his hands for sale on joint account 13th May last . . 3000. My half is ... . 81500. » Walker's half is . . . . 81500. 83000. Walker takes up his note of 82063, due 9th October next, and pays me the balance in Cash ..... 563. // *The Ship Columbia in which I shipped and insured on May 31, for R. Morris, goods amounting to 85565, is lost. Received payment for the loss from the National Insurance Office as follows — My Premium note held by the office for $112.30 Cash for the balance — due Morris this day .... 5452.70 " Bought of Joel Post, his Bill on Baring & Co. @ 60 days' sight for £450 500. 1660. 82160. sterling Premium 8 per ct. . . . Paid him in his note due 15th instant Cash for the balance -= - 25. ~ • Bought 10 tierces Refined Sugars at Austin's auction room for Cash ........ Sold them at the same place to G. Barron on his note at 30 days for 8980. Gain on the transaction 82000. 160. 8800. 180. 1. The Rule is. always to deduct all charges, iucluding commission, from total sales. — See note 4, p. 90. 2. Our Profit & Loss account is not to be debited for this premium — we paid it for Slorris. 3. We have taken back Walkers share of these goods in part payment of Jiis note. 4. We get iu debt to Morris, having collected this money for him of the Insurance OflBce. 5. We have here received one Bill Receivable, and given up another. 6. Property can never be delivered or credited, until it is received anddeinted: this merchandise having been sold before it was brofight home or entered, the transaction cannot affect that account. Bills Receivable — the thing rece;ived — is Dr. ; Cash and Profit & Loss, Cr. 3291 2100 7218 11160 3563 5565 216a 980 NEW YORK, June 1, 1867. 18 11 6 3 8 12 3 5 12 8 5 12 4 1 12 3 11 5 4 12 Sundries, Dr. to Sundries * 1st Co. Shipment to Boston, to close acct. Profit & Loss To Wm. Hay . ... // Commission 12. 83291. 3 6 3 12 3 12 6 Cash, Dr. . To Bills Receivable .... // — — • ' R. Morris, Dr. to Sundries To Cash . . . . If Commission 18. Warden & Bell, Dr. to Sundries, to close acct. To Cash '/ Bills Payable . Sundries, Dr. to Sundries . »Mdse Cash To Bills Receivable ff 3d Co. Adventure, to close acct. // * Sundries, Dr. to R. Morris . Bills Payable .... Cash Sundries, Dr. to Sundries . ^ Bills Receivable . Profit & Loss . To Bills Receivable // Cash . . 25. Bills Receivable, Dr. to Sundries « To Cash '/ Profit & Loss . 3180 111 • • 2100 7218 11160 83563. 3129 162 2100 7200 18 10000 1160 3000 563 82160. The student will not understand 1. Explain how the.net proceeds is found here. this entry without repeated study. Why is Profit & Loss not debited for the premium we paid on this Bill? Walker paid us for this $1500 worth of goods on the 13th May, why is he not now credited for the amount, having returned the goods ? Why credit Morris for this money ? Why is the Bills Receivable account both debited and credited in the same entry? «»^w Why is the Merchandise account not to be credited for this $980, seeine mer- chandise is the thing delivered? « 8 "*" 112 30 5452 70 2000 160 ' 2063 1500 5565 980 500 1660 800 180 ; 94 95 u J NEW YOBK, June 25, 1867. William Hay and mysolf having agreed to close our speculations on joint account, he has taken delivery of his half Invoice of Pork, bought 4th May last, and which remained unsold, and I carry my half to my own Merchandise account 2500 « Close 1st Co. Sales. Total sales effected for 200 bales Cotton and 800 bbls. Flour, 814300. My Commission, 2i per cent., on the same is . . . . 357.50 Wm. Hay's half net proceeds paid him in cash is . . . 6971.25 My net gain is 471.25 28. =====^^^ Paid Cash J. Carpenter & Co.'s Bill for Repairs of House 49 Cedar Street My Commission for collecting $800 for Estate A. Lenox, @ 5 per cent., is // •Received advice from Baring & Co., of Liverpool, of the Sale of 1st Co. Shipment of Flour, shipped by the "Erie" 15th April last, net pro- ceeds £900 sterling 84000, which they remitted agreeably to my orders to R. Morris, London, on my account, 10th ultimo . . $4000. Premium on Exchange is 8 per ct 320. Wm. Hay's half is . . . 2160. " My half is . . . . 2160. 84320. 7800 280 40 // Received advice from R. Morris that he received Cash £562 10s. on the 20th ultimo, Freight of Ship Roscoe .... 82500. ■ The present rate of Exchange on London is 8 per ct. prem. . 200. // 432U 2700 * I close the acct. of Ship Roscoe and owners. Total receipts of Freight is 88700. Disbursements to date 81250. My 2^ Commission on Freights and Passages collected is . . 217.50 C. Hartwell's i net proceeds is 3616.25 My i do. 1808.13 Wm. Ha/s i do. 1808.12 7450 =======.==== 30. - ""'"•--■^ Received advice from R. Morris that he has sold my } of Ship Roscoe. Net proceeds due 30th August, £1462 10s 6500 // I now close 1st Co. Shipment to Liverpool with a gain of Also Ship Roscoe my J with a gain of . 361. 3308.13 3669 13 Paid Cash for Expenses, ^ Expense Book, from 1st January to date . M • Balance of Interest due R. Morris, "^ acct. current rendered, is 1. 2. 3. 4. Hay has paid for his share of these goods, therefore cannot be debited when he takes them away. Deduct all charges from the total sales.— See Note 3, p. 80, and Note 4, p. 90. Profit & Loss or Exchange miiit be debited for both these sums, because the gain on the exchange forms part of the profits, for which we are accountable to our associates in the transactions. This is a settlement of all our transactions as agent for the ship up to this date. We close her acct. and carry the diridends to the credit of the other owners. This is found by drawing out his account current.— See Form 1, p. 114. 96 1099 23 33 06 1 9 8 12 6 10 12 10 8 NEW YORK. June 25, 1867. * Mdse., Dr. . To 1st Co. Sales If '1st Co. Sales, Dr. to Sundries, to close acct . 10 Commission // Cash ...'•*• f Profit & Loss 2500 7800 — =::^.,=^- 28. House 49 Cedar Street, Dr. To Cash . . . ' Estate of A. Lenox, Dr. To Commission 280 40 5 6 3 11 9 5 6 9 8 12 9 3 Sundries, Dr. to Sundries R. Morris • . . . * Profit & Loss ToWm. Hay . .'.'.' // 1st Co. Shipment to Liverpool $4320. 4000 320 Sundries, Dr. to Ship Roscoe & owners K. Morris •Profit & Loss . ' ' // C. Hartwell . . ..." " Ship Roscoe, my J // Wm. Hay . .'.'.* 2500 200 7450 5 9 6 11 9 6 12 5 R. Morris, Dr. . To Ship Roscoe, my J . 30. 6500 Sundries, Dr. to Profit & Loss . 1st Co^ Shipment to Liverpool, to close acct. . bnip Koscoe, my i, to close account , » — ~~^ -.^- — _ Profit & Loss, Dr. to Sundries To Cash . . • • • " " R. Morris 361 3308 13 1132 29 , '• ^^Ity^^' °^* ^'""''^^ ^- *b« P-P-«on of these goods that he has taken i 2. How is the net proceeds and Hay's share found? I '• ?hU'er "^ •^^'^ ^" ^-«* * ^- a^L for these premiums on Ex- I 4. What is the object of this entry? i 6. How is this balance of interest ascertained ? ! G 14 2500 I f 357 50 6971 25 471 25 280 40 2160 2160 2700 217 50 3616 25 1808 13 1808 12 6500 3669 13 1099 23 33 06 9: SET II.— DOUBLE ENTRY BOOK-KEEPING. ON THE DETECTION OF ERRORS. 1. If the Day Book, Journal, and Ledger have been carefully checked according to our previous directions, we may presume that all is thus far correct. If our trial comes out incorrect, our attention will, therefore, be first directed to its own additions and those of the Ledger. Then see that all the accounts are taken off correctly, and upon the proper side of the sheet — that the amounts are correctly forwarded from one page to another. Then exa- mine the additions of all the Journal entries, to be certain that the debits and credits are equal upon that book. If the error is not found by these means, the posting from the Journal to the Ledger since the last balance will have to be all checked over again — a formidable under- taking in a business of any magnitude ; but there is no other means of finding the error. 2. On the correction of errors in the Ledger. — It is not easy to lay down pre- cise directions for correcting errors in all cases. But it may be useful to the learner to have some general directions, and also to be guided in all cases by the following general rule — always to make the correction explain itself, by distinctly referring to the place of the error, and the error to refer to the place of correction. It is not sufficient merely to write " To Error" or "By Error, '^ because either the book-keeper, or his successor, may be called upon for an explanation of an entry of this kind. 3. If a post be omitted at the proper date, enter it under the date of the last entry, with the back date in the title column, in a parenthesis, thus (July 19) ; the page of the Journal in its own column. 4. If two accounts be opened with the same person, close the one into the other, " To," or "By A. B.'s acct., fol." — footing and ruling off the closed account, as a settled account; stating the particulars of such transfers at A. B.'s open account with the Journal reference. 5. If you have posted an entry to the wrong side of an account, erase the figures in the amount column, leaving a couple of ciphers to fill up the space, and leave the rest of the line without erdsure : it serves to explain the alteration and does not deface the page Then make the post to the proper side. 6. If you have posted to a wrong account, dispose of the error as directed in the last paragraph ; then post the entry to the proper account. 7. If the same entry be twice posted, leave ciphers in the money column of the last entry as before directed. If you have room in the title column, insert (see last entry) or such explanation as the case require, on the same line with the correction. 8. I do not approve of correcting errors by counter entries if it can be avoided, as it gives the account a distorted appearance. The merchandise account, for instance, may by this means be made to exhibit an amount of purchases and sales far beyond the reality j while the chief object for keeping this account is to show these amounts correctly. If, however, the error is discovered after the account is footed and forwarded (a thing that ought never to be done until it is checked), then the correction can only be made by a counter entry, or by footing the column and deducting the error from it. 9. If you have discovered an error in the addition after the account is footed and for- warded, note it "short" or "over added,' $ — corrected June ■ — , fol." — and make the entry of the correction, as usual, refer to the folio of the error. If there be many of them, it may be proper to make a Day Book entry of them ; but this can only be done with those errors requiring a double entry for their correction. 10. On correcting errors in the Journal. — This book, like the Ledger, not being a book of original entry, when it can be done without defacing the page, there is no objec- tion to correcting an entry by erasing a figure or two, and writing over them again. But if the error make it necessary to cancel the whole entry, it must not be scored nor scratched out, but mark it in the margin " void, corrected page," — then make the corrected entry in the first vacancy, giving reference to the place of error. 11. On correcting errors in the Day Book. — It should be a rule never to erase any essential particular of a record on this or any other book of original entry. If an error admits of correction without cancelling the whole entry, it may be done by running the pen lightly through the name or figures, leaving them legible, and writing the correct ones over them. 12. If the error makes it necessary to cancel the whole entry, you will proceed as just directed for the same purpose in the Journal. 9S SET II.— DOUBLE ENTEY BOOK-KEEPING. ON OPENING AND CLOSING THE LEDGER. After journalizing a page or a month of the Day Book, the learner will open his Ledger according to the directions in note 1, page 32. Then proceed as there directed with the posting and checking, until the whole business of the set is posted into the Ledger. Then add up all the accounts that remain open, inserting the amounts on each side in pencil in the margin. From these amounts make up your trial balance, referring to those on page 36 for the form, and to our directions for detecting errors on the last page if it comes out wrong. It may be proper here to fix the pupil's attention distinctly upon the object for closing the licdger, which is not only ^ to ascertain the gain or loss, but to record it upon the face of the Ledger in such a manner as to afford satisfactory evidence, at any future period, of the true state of the business at this time. — See Notes 1 to 4, p. 18. For this purpose the Double Entry Ledger furnishes the particulars for making up ' two statements, both of which will exhibit the same result. 1st, a detailed statement of gains and losses in the Profit & Loss account, from whence the stock, or original capital, receives the result, and then immediately shows the present net capital. The second statement, which must always confirm the correctness of the first one, is made up by presenting a de- tailed account of Effects and Liabilities in the Balance Account, upon the principles before explained, Notes 2 to 6, p. 18, and Note 4, p. 32. The difference between the amount of the Effects and that of the Liabilities must be the present net capital, and if the operations are all correct will always agree with the result produced by the first statement. — See Notes 1 to 6, Balance acct., p. 35. This agreement between the Stock and Balance account is always a certain consequence of this mode of keeping accounts, because the net gain or loss, which is finally made to show itself in the Stock account, must always produce a correspond- ing increase or decrease of property, which affects the Balance account to precisely the same extent that it does the Stock account. Therefore, as the balances of property agreed with the credit side of stock (Rule 11.) at the opening of the books, they must continue to do so ever after, so long as all the steps of the process are strictly correct. The learner will now derive farther assistance from the following RULES FOR CLOSING THE LEDGER. Rui E I. All personal accounts close To or By Balance. II. All accounts of property belonging to ourselves, close as follows : — Case 1st. — If all be sold, paid away or lost, and the account remaining open. close it To OR By Profit & Loss. Case 2d. — If all or part remain on hand, credit the account first By Balance for the value remaining in hand, and if this entry does not close it, close as in Case 1st — To or By Profit & Loss. III. All accounts representing gain or loss, close To OR By Profit & Loss. IV. When Profit & Loss has received all its transfers, it closes into Stock — never into Balance — and after all other accounts are closed, Stock finally closes into Balance. V. Bills Payable always closes To Balance for the amount w^ owe on our notes. When they are all paid, the account must be self-closed. It may be stated also as a general rule, that no property account can close To Balance. This part of Book-keeping is rarely ever understood, without repeated and attentive study ; but as no person is entitled to call himself an accountant who cannot close a Ledger, the author trusts that all learners who desire to excel in the profession, will give this part of the subject that attention which its importance deserves. If they will but take half the pains to study it, that he has taken to explain it, their perseverance will be amply repaid. 1. 2. I. n. in. IV. v. What is the object of closing the Ledger? What particulars does it furnish for the purpose of ascertaining the present net capital? How do all personal accounts close ? How do property accts. belonging to ourselves close when all is sold, paid away, or lost, and the acct. stiU remaining open ? How if all or part of the property remain in hand? How do all accounts representing gain or loss close? How does the Profit & Loss account close, and when does it close ? How does the Bills Payable account close while we owe any thing on our notes? How does it close when all our notes are paid ? 99 INDEX TO LEDGER B. A. Merchandise . . , . a 1 Morris, Robert • Bills Receivable 3 Mor/is, Robert, Sales . • 7 Bills Payable . . . . . 4 Merchants' Bank Stock • 4 Balance Account . 13 • Cash 2.12 New York Insurance Office . • 8 Commission . ,. 8 1 Carter, James . 5 0. City Bank Stock . 10 Profit & Loss . . , . • 6 D. Q- Estate of A. Lenox .10 First Co. Sales 9 R. First Co. Shipment to Boston .11 1 First Co. Shipment to Liverpool 11 Second Co. Sales • 12 Shipment to Liverpool ■ 7 0. Stock • 1 Shipment to New Orleans • 7 Hartwell, Calvin . .12 Ship Hudson .... • 6 Hay, William .... 3 Ship Roscoe, my J . • 9 House 44 Broadway . 4 Ship Roscoe and owners • 9 House 49 Cedar Street . 10 Second Co. Shipment to London • 11 Second Co. Shipment from New Orleans L to London .... • 11 J. Taylor. John, <& Co. . • 8 Third Co. Adventure . • 11 K. U. Lenox, Charlotte . . . . .10 Lenox, Robert .... . 10 V. Walker, James • 7 Warden & Bell .... • 5 t X. Y. Z. Caution to Young Book-keepers. — Always index an account before you head it in the Ledger. Without this precaution you are liable to forget it occasionally, and afterwards to open a second account with this same individual : and unimportant as this may appear to the inexperienced, they will find it will sometimes lead them into very troublesome and vexatious mistakes. ^ 100 Dr. STOCK. Cr. 1887. Jan. June 30 To Sundries It Balance fol. 50 50 The learner is referred to the Introductory Ledger for all the exercises that will apply to this one.— See Stock acct., p. 33. 1. Is this acct. not usually kept without any entries from the time of opening until closing? 2. If some part of the Liabilities were left out at the opening of the Books, what account should it be afterwards carried to ? 3. When collections of doubtful debts (usually left behind in the old Ledger when opening new books) are made, is thiano t the proper account to credit for them? 1867. Jan. Apr. June June 30 1 10 30 By Sundries If Mer's Bank Stock II Profit & Loss fol. 64344.50 2800. 61544.S0 By Bal. 1 8 6 31300 6000 28044150 64344 pO 61544 50 It is ; but there is no irregularity in carrying an entry to it like that on the 10th April, above. 2. Either to this or the Profit & Loss account. It would not be advisable to encumber this account with trifles. 3. It will make no difference in the final balance, whether en- tered here or at the Profit & Loss acct. ; but, for rea- sons before given, large amounts of this kind ought nc to appear in the Profit & Loss. — See note 3, p. 30. MERCHANDISE. iser. Jan. Feb. Mar. May June 1 3 15 20 24 1 18 12 18 1 18 25 30 To Stock Bills Payable Cash Bills Payable J. Carter Bills Receivable Sundries Bills Receivable Sundries Morris' Sales 2d Co. Sales Sundries // II II It II 3 4 6 » 11 i2 '/ 13 1st Co. Sales 5083o.iojl4 Profit & Loss fol. ' 6 3000 ; 1000} 1800 j 16001 200 1 5001 [1119610 1000 5980 3240 3814 12000 . 3000 I 2500 13743 12 64573 22 See Mdse. acct. p. 33, and directions for ruling, p. 66. 1. What difference is there between the closing of this account and any other account of property ? 2. Supposing it is required to know the gain or loss upon Flour, Cotton, or any other branch of your Merchandise, how is it to bo done ? 1807. Jan. Feb. Mar. Apr. May June 31 10 1 ! 15 1 16 19! 20 : 12 18 |28 5 20 28 5 10 15 13 131 1 30 By Cash Bills Receivable James Carter Ship Hudson Shipm'ttoN.Orl's J. Taylor & Co. R. Morris Bills Payable N. Y. Ins. Office Sundries 1st Co. Sales Sundries Ship't to Liverpool Sundries // // R. Morris iYlaSe. 18128.22 jBui. p.I.B.p )64573.a ^ '^ 60830.10 4 4 5 6 7 8 11 12 300 3000 452 108 600 400 5900 2760 600 200! 500 36901 33551 3240! 2500 3000 4600 2400 30001 5000 840 ia,| 18128 |22 "^«^ 6457322 .;( 1. There is no essential difference, except in the manner of finding the balance in hand. 2. Open an account for the Flour or whatever branch of this account you desire to show its own gain or loss, and conduct and close it in every respect like the Merchan- dise account. Note.— Be particular to write the " Balance" closing entries in red. No others are brought down or forward, and no othen Bhould be written in this color.— Note 5, Stock acct., p. 33. 101 Br. CASH. Cr Dr. BILLS RECEIVABLE. Cr. s 1887. Jan. \\\ 1 3 16 18 24 30 Feb. To Stock Led. A. f. 2. // Mdse, // J. Carter // House 44 Broad'y '/ B. Receivable // Sundries 31 // B. Payable 10906.70! 6680. 4226.10 ' Mar. 5 6 12 25 28, ToBal. " R. Morris' Sales B. Receivable Sundries Profit & Loss Sundries 3 5 nttSJB 1 2 12 17 28 To Bal. // Wni. Hay // Ship Hudson H Mdse. II Sb.Roscoe& Owners n N.Y.Ins. Co. II Estate A. Lenox // Sundries // Mdse. ?^;» 1090670 4226170 360 796 40 2000j 2000, 400! 4822122 2810 16 17415 48 70 8 11641.90 I 31 To Bal. Apr. 20i // Sundries 6462 2500 1850 255 1800 3690 7500 104 20' 500 24661 90 11 ' 221 Forward to fol. 11641 90 9 2017 70 10 1520 80 12 15180 40 18«7. Jan. 3 By Mdse. 16 18 20 30 Feb, Mar. B. Payable II House 44 Broad 'y II Ship Hudson II II **>• // Bai carried down 5 12, 18 Apr. 20i 25 28 2 4 12 16 17 25 31 By Mdse. R. Morris' Sales // // Ship't to N. Orl's J. Taylor & Co. House in Broad'y Profit & Loss R. Morris Bills Payable R. Morris' Sales Bills Receivable Sundries i«»2.re Bal, carried down 1800 1300 280 2100 1200 4226 70 10906 70 17415 By Ship Roscoe my \ Sh.Roscoe&Owners Bills Payable Mdse. Estate A. Lenox Sundries 1st Co. Sales Sundries ^^"^ Bal. curried down 1 5 10 15 20 22 // By B. Receivable Ship't to Liverpool R. Morris J. Taylor & Co. Sundries 1st Co. Ship't to B'n Sundries 2d Co. Sales Sundries Forward to fol. 24661 8 55 7457 1. The leamer'a attention is here particularly directed to the operation of continuing an account upon a new page. If we were balancing the account here, the expression of the closing entry would be, " Balance in hand carried forward,"— not " car- ried down ;" and the new account would open, " Balance Bro't" forward. The columns should never be footed in ink until checked. Never forget to leave a line to foot the columns upon. The same directions apply to all other accounts.— Note 2, Wood's acct., p. 15. 102 1. Is it not better to post the debit and credit of each note on the same line opposite each other ? 2. Does the manner of conducting this accoitnt not form an exception to Rules VI. and VII.? 3. Why is this deviation from the rule for conducting other property accounts ? iserr 1 II! 18W. Jan. 1 To Stock, 1 3000 t Jan. 24 By Sundries, 2 1000 10 // Merchandise, 3000 Feb. 6 II II 3 800 1 18 II J. Carter, 2 600 12 II II 600 30 // Sundries, 1515 75 It Cash, 2000 31 // Bills Payable, 800 18 II Mdse., 3 ' 1000 Feb. 9 // Morris' Sales, 3 2100 28 // Cash, 5 4444 '44 12 // Bills Receivable, i 300 Mar. 16 // Wm. Hay, 7, 300 25 // Cash, 4 , 2000 17 // Sundries, 500 // // ' 4444 44 Apr. 5 II Ship't to Liverpool, 8 4500 28 // Sundries, 5 2011 ! 1 20 II Cash, 9 2011 Mar. 12 II Morris' Sales, 6 4500 22 // // 10 ' 1515 75 // Estate of A. Lenox, 7! 1700 25 // R. Morris, 1 2000 17 II Sundries, 1 400 May 25 II Cash, 12 7000 20 // Estate of A. Lenox, 1 1340 31 // Sundries, 1 1740 Apr. 1 II Sundries, 8= 2063 June 12 II Cash, 13 2100 May 13 // // 11 7000 18 // Sundries, 2063 18 // 2d Co. Sales, 3000 // II 34074.19 500 June 18 // Sundries, 25 II II 13 2000 980 1 30 II Balance, ■ 1 • 30 42754.19 34074.1» 19 1 19 42754 „.- ^2754 S680. To Balance, 8680 See Bills Receivable account, p. 33. 1. It is, where there are no endorsements : but it is better not to occupy the learners attention with this mode of post> ing it until he has learned the principles — See p. 167. 2. It does so ; it is always debited and credited for the /ace of the bill only; not for what it costs or what it brings in. 3. It is done for the purpose of making the balance of the acct. agree with the balance of notes on hand. WILLIAM iwrr Jan. To Stock Ledger A, f. 2,3000 Mar. 2 To J. Walker, 5 600 16 // Bills Receivable, 7 300 Apr. 15 // Sundries, i 9 1799 May 4 // Merch. B'k Stock, 11 2500 June 30 II Balance. 5199. tbl.il3 lOSia 12 See Form III., p. 116, and Morris' account, p. 105. 16012 12 1867.^ ~ Jan. 30 By Sundries, Feb. 12 Mar. i 1 5 Apr. I 5 15 June 1 28 By Ship't to N.Orleans // Cash, II 1st Co. Sales, // If II II R. Morris, II Sundries, // // // II II Ship Roscoe & Own. 16012.12 5199. ioei3a2 2 3000 3 1500 " 5 2500 I 450 6 1400 ; ' 8 2000 I 9 1065; 13 3129 14 2160' 1808 12 1601^12 June 30 By Bal.*^ % rendered, 103 •v Jlr. II BILLS PAYABLE. Cr. IMT. Jan. 16 Feb. 18 Mar. 4 5 Apr 22 23 4 8 June 18 3u May To Cash, '/ Sundries, // Cash, // Mdse., II Sundries, II Cash, // // // // // R. Morris '/ Balance. 1 4 6 1300 1600 1400 25001 8000 601 2222 22 202 70 112 30 iser. Jan. 24865 44 See Bills Payable, p. 34. 1. Ifi it not found conTenient to post the debits and credits npon the same line, aa described in the Bills Keceivable acct.? 2. Why then was it not introduced here? 8. How does this account close and re-open when posted in this way? Feb. Mar. Apr. 1 By Stock, 3 // Mdse., 15 // // 20 1 II Ship Hudson, 31 // Bills Receivable, II Sundries, // Mdse., II R. Morris' Sales, II R. Morris, II Sh. Roscoe&own'rs II Ship't to Liverpool, // R. Morris, II John Taylor & Co. // Sundries, // 2d Co. Sales, May 31 ii R. Morris, ! June 18 // Warden & Bell, 1 // 20 4 j 5 20 4 5 8 tlO 12 13 24865.44 17938.22 8027.22 300 1000 1600 8000 800 600 2222 22 2222 22 25001 400 16145 4125 601 145 3000 112 30 1160! 24865 44 June 30 By Balance, 6927 22 1 1. I recommend this mode of posting both bill accounts, in all kinds of business. 2. Because it is desirable to avoid distracting the pupil's at- tention with too many matters at once, and we have ex- 1 emplified it in our Bill Accounts, p. 167. |j 3. Precisely like the Bill Book, p. 50. HOUSE 44 BROADWAY. 1867. Jan. 1 To Stock Ledger A, fol. 3 15000 18 // Cash, 2 w 280 Feb. 18, // // IMW. 181. June 30 To Balance, 201 15481 15000 1. What is this account debited and credited for? 2. How does it close ? 3. How is the first closing entry of $15000 found? 4. How is the second closing entry found ? 6. What does this difference represent, and what is done with it? 1807. Jan. 18 By Cash, May I 1 j ^ 1 June '8^' // B-')r'Tv"v 30 // Profit & Loss, 300. 15300. 2 150 10 150 1 ljtl!*fl f. 6 181 1 ' !l5481 has 1. It is debited for its cost and credited for what it brought me in.— Rules VI. and VII., p. 39. 2. By Rule II., p. 99. 3. It is what we value the house at. — See first debit entry. 4. It is the difl"erence between the two sides after the first closing entry is made. 6. It is the loss upon the property, and we debit Profit k Loss for it. MERCHANTS' BANK STOCK Apr. 10 To Stock, 8 May 4 // Profit & Loss, 11 5000 750 ^75^ 1- How is this account kept and closed? i88r. I - 1 May 1 By Cash, 1 4 // Sundries, 10 11 250 5500 5750 1 1. This is a property account, and is conducted by the same rules as all other property accounts. The property being all sold on the 4th of May, the account was ther, closed by a Day-Book entry. — See Note 6, p. 80. 104 Dr. ROBERT (London) MORRIS. Cr. S ). 11 1867, Feb. 18 20 Apr. j 5 10 ^5 May 31 1 June 1 12 28 m To Sundries n B. Payable // Sundries II 11 II II II If II Commission '/ Sundries // // // // II S. Roscoe & owners II S.Roscoe.myiS| 5676.69 June So To Bal. 1^ acct. Bend. f 4440 2500 8 2166 25 9 4980 33 10 2400 12 569122 40 i 7756 66 13 7218 14 1 1 4000 2500 6500 _ 60192 46 J 59 ii 5676 1. What does the debit and credit side of this account show? 2. How do they close ? 3. Why is the expression " Rendered" annexed to the Balance brought down ? 1807. Jan. 1 By Stock. Led. A. fol. OFeb. 1 // Mdse. I 25 // Cash ' 28 // Sundries Mar 12 w Morris' Sales Apr. ^0 . II 2d Co. Sales May 8| // Sundries 18 1 II 2d Co. Sales June 18 II Sundries 30 // Profit & Loss ^^^^ II iial. 10 I 2 2000 3| 8888 88 4* 1995 5 444444 7 9052 ioi' 4000 1 4444 44 4093 05 13 5565 14 33 06 i;; .-!.; ■■ 5ii 50192 46 f : 1. All personal accounts are alike, and are debited for year account against them, and credited for their accotmt against us. — Note 3, p. 23. 2. To or By Balance. 3. Because a statement of his account has been sent him^^ See p. 114. WARDEN & BELL. 1867. Jan. 24 To James Walker June 18 // Sundries 2 500 i3 11160 11660 11867. Jan. June 1 1 By Stock, Led. A. fol. Mdse. // 1. When was this account footed and ruled oflF? 2. Is it always necessary to close an account every time it is settled? 2 500 12 11160 j 11660 1. On June 18, when we paid him off. 2. There may be cases when it is not absolutely necessary to do so ; but as the omission of it sometimes leads to very troublesome consequences, our advice is, always to make it a rule to do so.— See note 1, Wood's Account, p. 15, and note p. 20. JAMES CARTER. 1867. Jan. 10 To Mds& 15 // a 16 To Mdse. 19 // II I' 1867. ' 452 Jan. 16 By Cash 1. This account was closed on the 15th and 19th; would the balance struck on the 19th not have served for both? 18 By B. Receivable 20 II Sundries 560 560 600 400 1000 1. It would ; but it is better to close the old account every time it is paid. 105 6 Dr. SHIP. HUDSON. Cr. 1867. . 1 1867 1 Jan. 20 To Sundries 2 16000 Mar. 2 By Cash 5 1850 30 // Cash ™^ 1200 {May 4 „ „ uso. 10 3500 June 30 II Profit & Loss fol. 6 4150 21350 ( Jane 30 // Balance tmi f- 17300. 4150. 13 ilUuUU 1 30 21350 1 June To Bahnce 16000 1. How is this acconnt kept, and how are the first and second l. This account is in every respect like " House in Broadway," closing entries found ? I and closes by the same rule. — See that account, p. 104. PROFIT &; LOSS. IWT. 1 1 '\m.^ 1 Jan. 20 To J. Carter 2 200 1 Jan. 30 By Sundries 2 1575 31 // B. Payable 3 30 Feb. 25 // Cash 4 400 Feb. 6 // B. Receivable 3 60 ;28 // II 5 377 78 12 // » 3 300 u Sundries |l 376 72 18 // Cash 4 181 Mar. 6: II 1st Co. Sales . 6 358 25 // // 355 7 56 12 II Shipm'ttoN.Orl's 1507 1 Apr. 22 // Sundries lo' 05 // Morris' Sales 7 18' May 31 » B. Receivable 12 400 17 // Sundries 4 20 June 1 // Sundries 13 111 Apr. 1 // Bills Receivable 8 63 18 // // 160 20 II Cash 9 6 70 28 // II 14 320 22 // // 10 5 05 II S.Roscoe& owners 200 25 // R. Morris 400 30 II Sundries «"» 1132 29 30 // 3d Co. Adventure 500 If Amount to date fHo.inBr'dway«^«'f. n Stock for net gain f. 4 1 "3373 181 28044 80 50 May jjune 4 8 13 18 25 1 // Mer'ts Bank Stock // Sundries // // // 2d Co. Sales K Cash // // // Sundries 11 12 750! 355 56 140 106 05 18 90 70 1176 32 / 1 25 // Bills Receivable 13 180 / II 1st Co. Sales 14 471 25 / > 30 // Sundries ^«»«^" // Amount to date H Mdse. fol. M Ship Hudson . u ' 3669 13 10969 41 1 13743 12 6 4150 / » H Commiss'n SS " 8 2736 77 31599 30 28044.fi0 31599 30 are lole •ent iges r in eby )wn by l.Why 2. Whs I 3. Wha a 4. As 8 1 i istl it ar iexe( it is iccot I gei Icco QtO 1 See Profit & Loss Account, j lis account footed on both sides e these transfers, and why is th i to them? the object for bringing these int? leral rule, no entry passes from ant: neither has it any balanc aew account : is there no except ).36. Jun< e nc tran Bal e to on t 3 30? )te"fol." Bfers to t ance to t bring do this rul( — an- hin his wn 3? 1 i 1 1 l.The P c 2. The a ' { 3. To a I 4. The Be \i lace olun yar< coon rom be 6) com] acer yth re s artn 'ere the additions for the Trial d there to save the trouble of ad an again after the transfers are i } the gains and losses fouijd by cl< nts named. " Folio"' distinguishes those of the Journal, which are i ime column. jlete our account of gains and lo tain our net increase or decrease e small marginal figures. — Note ire but few exceptions, save i ership settlements. — Part II., p. Ball ding nade )sing 5 the )lace isses, of c 4, M. bhose 177. ince, and up the wl ' the difiFei Ledger ps d togethe and ther [ipital, she Ise. p. 33. created Dr. JAMES WALKER. 180T. I I Mar. 5 To Mdse., 30 '/ 3d Co. Adventure. Si II Sundries, Apr. May 6 10 111 600 2500 600 3700 1887. Jan. m By Warden & Bell, Mar. 2. // Sundries, Apr. ^0 II 3d Co. Adventure, 2 5 9 Cr. 500 1200 2000 3700 B. MORRIS' SALES. 1887. Feb. 1 To Sundries, 5 // Cash, 12 II II 20 // II Mar. 12 // Sundries, Repeat Rule X., p. 41, and see Note 3, p. How is Morris' net proceeds found when all the goods are sold? How are consignment accounts closed and reopened when the Ledger is closed with part of the property on hand, and no sales rendered? How if you render account sales of the part sold? 1867. j Feb. ' 5 By Cash, 9 '/ Bills Receivable, 18 // R. Morris, ' !i Bills Payable, Mar. ,12 // Bills Receivable, // // Mdse., 1213D. iWTS. There was $9676 Balance at the credit of the account when the sales were completed. Our commission is $606, storage and advertising $18. After deducting these charges the remainder belongs to Morris. It is therefore evident that this balance of $0676 belongs to these three accounts.^-See Journal entry March 12, p. 83, and Account Sales, p. 117. They close and re-open by Double Balance. — See Commis- sion Sales acct., Part II., p. 169. The acct. closes as above, and does not re-open until the sale of the goods on hand recommences. — Note 4, p. 68. SHIPMENT TO (J. Taylor & Co.) NEW ORLEANS. 1867. ! ' Feb. 12 To Sundries, Mar. 12 // Profit & Loss, 5800 Repeat Rule XI., p. 41, and Rule 11., p. 99. 1. What kind of an account is this, and why was it closed on the 12th March? 18flT. ' ! Mar. 12 By Mdse., 6 5800 5800 1. It is a property account, and was closed on the 12th March because full returns were then received. — Note 5, p. 8Ql SHIPMENT TO (Colnmbia) LIVERPOOL. 1867. Apr. 5 To Sundries, June 30 To Bal. bro't down. 1867. J une 30 By Balance, £13 NHio' 1. When the accounts are to continue in the same Ledger, ; 1. It would; but I wish to show the universal application of would it not have answered as well to have made the entry in the Balance account, without closing and re- opening this acct. ? my rule for closing all property accounts belonging to ourselves. This example differs from any previous one, as the property has produced no returns. — Rule LL, p. 99. I 106 107 Ill a 8 Dr. JOHN (Hew Orleans.) TAYLOR & CO. Or. 18C7. Feb. 12 To Sundries, Apr. 10 ^ N K It 7438.33 5693.05 1745.28 June 30 ' To Bal. ^ % rendered, Seo Form n., p. 116, Morris' acct., p. 106. 3 8 9 9 644' 1210 604 4980 33 7438 33 1807. Apr. !15' By 2d Co. Shipm't New Orleans to London, 1745 '28 May June 18 30 91 1600 » 2d Go. Sales, 6693.05 // i>:iliin> \ 11 o O l'^ 4093 05 1745i28 7438 38 COMMISSION ACCOUNT. 1887. June 30 To Profit & Loss, fol. 6 2736 77 1867. Feb. 12 By J. Taylor & Co., 25 // Cash, Mar. 5 // 1st Co. Sales, 12 // K. Morris' Sales, Apr. 5 II E. Morris, 10 // J. Taylor & Co., II Sundries, May 18 // 2d Co. Sales, 27361,77 1. To what class of accounts does this belong? 2. Why not carry the entries to Profit & Loss at once? 3. How is this account kept ? 4. How is it closed ? 6. Are there not sometimes entries made at this account that have to be brought down into new account? 31 June' 1 12 25 28 // K. Morris, » II II Sundries, // K. Morris, // 1st Co. Sales, // Estate of A. Lenox, // Sh.Eoscoe& owners 2736.77 3 4 6 7 8 9 11 12 13 14 33 5 72 606 105 6 3 396 396 S5 278^2 40 ' 162 18 357 50 40 _ 217 50 2736 77 1. It is a branch of the Profit k Loss acct. 2. We could not then know what we made by this branch of our business.— See Note 4, p. 24. 3. By debiting it for returned commissions, and for what we may lose by guaranteeing, and crediting it for all we earn by agencies. 4. Always to Profit & Loss— never To Balance. 5. Very seldom, except in partnership settlements : these are explained in the next part, p. 177. NEW YORK INSURANCE OFFICE. 1807. Feb. 28 To Mdse., I 11118*7. 5 3690 I Mar. 12 By Cash, ir=r L To which class of accounts does this belong ? 6 3690 1. Although it is not with a person, yet it is a personal acct and is kept in every respect similar. 108 Dr. FIRST COMPANY SALES. Gr, 1867. Mar. I 20 25 28 May 4 June 25 To Wm. Hay, u J.Walker, a Sundries, To Mdse., II Cash, II Mdse., II Merch. B'k Stock, 11 2500 // Sundries, uj^. 14 7800 5 6 8l 450 600 1830 2880 1867. Mar. 2 By Sh. Roscoe, my i, , 5 2880 •8807 1050. 1830. 2880 3240 4500 2000 20040 See Notes 5 and 6, p. 42, and Rule XII., p. 43. 1. Why was this account closed on the 5th of March? 2. How and where does this account close when all is sold? 3. How if there be none sold, or if the sales are not more than enough to cover the charges you have advanced ? 4. How if there be more than enough sold to cover charges? 5. Why is this distinction made after the charges are cov- ered? 6. What is done with the balance entry ? Apr. 10 By Sundries, 9 9500 // // IstShip'ttoBost'n, 9 3240 22 // Sundries, 10 4800 June 25 // Mdse., S' 1-^ 2500 7800. 20040 1. Because we rendered account sales and settled with our partner at that date. — Note 5, p. 80. 2. It closes To Sundries, by a Day Book entry. — See Note 3, p. 80, and Note 2, p. 96. 3. It closes By Balance, the charges being payable out of the first sales. 4. Credit the account first By Balance for our proportion ot the part unsold, then close To Sundries as if all were sold. 5. The amount sold afterwards is pactlj ours and partly our associate's. 6. It is brought down or transferred like all other balance enlxies. — See Part n., p. 177. SHIP (Myi) ROSCOE. 1867. : Mar. 2 1 To Sundries, June 30 ii Profit & Loss, 5 14 1 !|l 1867. ' ' H 5000 ; June 28 By Sh.Roscoe& owners 14 1808 13 3308 13 1 30 // R. Morris, i w J! 6500 830813 I 830813 li=U 1. To what class of accounts does this belong? 1. It is a property account, and is conducted and cloeed by the same rules as all other property accounts. SHIP ROSCOE \ AND OWNERS. 1867. ' Mar 4| To Sundries, June 28 // // 5 14 1250 i 7450 8700' ! 1867. ' ' i Mar. 5 By Cash, ' May 4: II II June 28 '/ Sundries, 1. What kind of an account is this? 2. How is it closed? 3. Could this and the last account not be kept under one head upon the same principle as Ist Company Sales? 4. Why? 6 lOi 14 1800 4200 2700 8700 1. It is conducted under the rules for personal accounts. 2. If the debit side be the largest, close By Balance ; but if the credits be the largest, close To Sundries, as on the 28th of June.— See Part II., p. 177. 3. Not without the risk of much confusion. 4. Because the credits of the former account are private pro- perty; but the credits of the latter are joint property, and could not therefore be placed in one account. 109 10 Dr. ESTATE LENOX. Gr. 1867. Mar. 16 To Cash, 17 '/ w May 31 // Bills Receivable, June 28 // Commission, 389o. 30 // House 49 Cedar St.. u II Balance, f. 7 2500 ; 10 12 i 1340 14 40 10, 140 13 '20010 33040 - 1. What is the object of this account, and how is it kept ? 2. How docs it close and reopen ? 3. SapiK)3e the time has arrived when we have to pay over the above balance, §29010, to the two legixtees, to each one half, and R. Lenox takes the house in Cedar Street at its valuation as part payment^ and C. Lenox the bank stock, also at our valuation, as part payment of her legacy ; and we pay over each the remaining bal- ance due them in cash, how do we close all these ao- cooiits? 1M7. 1 I Mar. 12 By Sundries, 20 // B. Receivable, 32540. June 30 n City Bank Stock, f. By Balance, 131200 1340 10 500 33040 129010' 1. It is to show the details of our administration of the Lenox Estate, and is opened and conducted like a personal ac- count. 2. After it has received its transfers from its branches — see the two next accounts — then close as a personal acct. 3. By a Day Book enti-y, thus — Lenox Estate To Sundries to close Acct., $29010. To House 49 Cedar St., conveyed to R. Lenox for . . 12000 R. Lenox, amount already paid per acct. " Cash paid R. Lenox for balance of his Legacy " City Bank Stock, conveyed to C. Lenox for . " Charlotte Lenox, for amount paid per acct. . " Cash, now paid balance of her Legacy . . . 800 1705 10000 500 4005 HOUSE 49 (Lenox Estate) CEDAR STREET. 1867. i Mar. 12' To Estate of A. Lenox, 17 '/ Cash, June, 28 // // S; 140. June 30 To Balance, 14 12000 1. What is this account debited and credited for? 2. How does it close '. 3. Why not close To or By Profit & Loss ? 1887. May June 1 30 By Cash, I, ; . >.-, 12300. f" II Estate of A. Lenox, 10' 300 13 12000 10! 140 12440 1. Debit first for its value, and for what it costs afterwards , credit for what it brings in by sale or rent. 2. If unsold, credit first By Balance for the value ; then close To or By Lenox Estate. 3. The gain or loss is not ours; it belongs to the estate. CITY (Lenox Estate) BANK STOCK 1867. Mar. 12 To Estate of A. Lenox, T 10000 June 30 // a u f. 10 500; June 301 To Balance, 10500 10000' 1807. May June 1 30 By Cash, // ijuiuuce, f. 10 13 500 iOOOO 10500 CHARLOTTE (Legatee of Lenox Estate) LENOX. 1867. ; i Mar. 31 To Cash. 8 500 You may, if you choose, close this and the following account By Balance, like " Shipment to Liverpool," p. 107; but I have shown at Hartwell's Account, p. 112, Hhat there is no necessity for it. ROBERT (Legatee of Lenox Estate) LENOX. i80r. I I Mar. 31 To Cash, 8 800 110 Br. 2d Co. Shipment to (R. Morris) London. Cr. 11 1867. Apr. 10 To Sundries, 1 1 // Profit & Loss, June 1867. 9 4980 34 June' 1 ' By R. Morris, 12 649 66 5630 See Note 2, p. 86, and Note 4, p. 92. 1. How is this account kept? 12 5630 5630 1. It is kept and closed in all respects like any other consign- ment or property account. 1st Co. Shipment to (C. Harlwell) Boston. 1867. ' Apr. 10 To Sundries, June 1. II II 9 3300 13 3180 1867. ' June 1 By C. Hartwell, 6480 See Note 3, p. 86. 1. What is this account debited and credited for? 1. It is debited for our proportion of the first cost and the whole charges, and credited for the whole returns. 2. Why not credit for our own share of the returns only as in 2. Because Hartwell accounts to us here for Hay's sliare as the last account? lii well as ours. In the last account Morris accounted to each partner for his share. 1st Co. Shipment to (Baring & Co.) LiverpooL 1867. Apr. 15 To Sundries, June 30 // Profit & Loss, 9 14 See Note 3, p. 96. 1. This account, like the last, was debited for our share of the first investment, why not also credit it for the whole returns? 1867. June 28 By Sundries, 1. In the last account we had charges to deduct from the re- turns; in this we have none, we therefore carry Hay'a half net proceeds at once to his credit. 2d Co. Shipment from (R. Morris) New Orleans to London. 1867. Apr. 15 To J. Taylor & Co., June 1 // Profit & Loss, 9 12 1867. 1600 TJune ^26 66 2126 66 See Note 5, p. 86. 1. What is this account debited and credited for ? By K. Morris, 12 2126 66 2126 ^<^ 1. It is debited, like "2d Co. Shipment to London," foronr share of the first cost, and credited for our proportion of the returns. 3d Company (J. Walker) Adventure. 1867. I ' Apr. 20 To J. Walker 30 May 13 H Profit & Loss, 10 5001 2500 To Mdse., 11 1500 I. Why is this account called an adventure in Co.? 1867. ' ' Apr. 30 By J. Walker, June i 18 By Sundries, 10 2500 j 2500 13 1500 1. To distinguish it from those joint accounts of wliich W9 are the managers of the sales. — See Notes 9 and 10, p. 42. Ill * ) 18 Dr. 2d COMPANY SALES. Cr. 1867. Apr. 20 To Sundries, May 18 // // 10 7185 11 8689 15874 See Note 4, p. 90. 1. How is this account condacted? 18W. ■ ' May 13 By Sundries, 18 H II 15874. 7185. 11 8500 i| 7374 15874 Ml 1. In all respects like Ist Co. Sales, p. 109. We account to each partner for his share of the net proceeds. S«v form of account, p. 116. CASH ACCOUNT. 1867. Bro't forward, fol. 2 15180 40 1867. 15180.40 8058.60 7121.80 Apr. 30 To Bal. bro't down, May 1 // Sundries, j 4 // II II Merh. Bank Stock, 8 // Sundries, lis // Merchandise, ' n Sundries, 18 // 2d Co. Sales, // Profit & Loss, 2f // Sundries, 15180 40 31510.70 2724J2 28785.78 7121 80 10 1200 I 7700 11 500 . 4200 1500 I 1640 560 12 18 90 . 7070 i 31510 70 Bro't forward, fol. 2 7457 60 Apr. 23 By Bills Payable, 8058.6o 10 601 oU, // xi'iXi. c.^A^v^v* u^'.i'.i, I 1I2I18O 31 To Bal. bro't down, June 12 // Bills Receivable, 18 // Sundries, // R. Morris. 36801.48 28010.48 28785 78 13 2100 j 563 5452 70 May 4 By Bills Payable, 81 // 15180 40 II 31 II 10 2222 22 11 202 70 II R. Morris, 2724.92 12 300 // Bai. earned down, June 30 To Balance See Cash Account, p. 34, and Note 6, p. 57. L Why is this account balanced every month 't 3690148 11 8891- June 12 ByR. Morris, 18 // Warden & Bell, II Sundries, .25| // Bills Receivable, w 1st Co. Sales, 28 // House 49 Cedar St. , 30 // Profit & Loss, 38oio.i8 ;^b785 78 31510 70 n II Balance. f. 13 7200 lOOOOi 1660 800 6971 25 280 1099 23 S891 14 L3 3690148 1. Because it must always conform to the Cash Book, and it is easier to make it do so by frequently comparing them. c. (fioston) HABTWELL. 1867. ' I I June, 1 , To 1st Co. Ship't g^ ' ' ' to Boston, » '^^ 12 6480 1. Why is this account not closed like all the rest, and what is done with the balance ? 2. Whould there be any irregularity in closing it? 1867. June 28 By Sh.Roscoe& owners 14 3616 25 , 11 i 1. We find the balance by the small pencil figures in the mar- gin, and transfer it as usual to the balance account; but there is no occasion for closing a person's account until you have a settlement with him, or wish to transfer his account to New Books. 2. None ; the pupil may close it if he chooses. — See Note 3. p. 113. Dr. BALANCE ACCOUNT. Cr. 13 1S67. June 30 To Mdse. fol. // Bills Receivable // House in Br'dway // R. Morris // Ship Hudson // Ship't toLiverpool // John Taylor & Co.! 8 // House 49 Cedar st. 10 // City Bank Stock II Charlotte Lenox '/ Robert Lenox // Cash C. Hartwell 10S294.84 // 6I044I5O 12 18128 8680 15000 5676 16000 8010 1745 12000 10000 500 800 8891 2863 108294 22 1867. June 1 30 59 28 75 84 ByWm. Hay fol. 3 // Bills Payable 4 // Estate of A.Lenox 10 // Stock for n/c 1 46750.34 1081312 6927 22 29010> 61544 50 108294 84 112 See Notes to Balance Account, page 17 and 35. The teacher will now apply the examination on page 36 to this Ledger. 1. Remarks. — Referring to our previous instruction in closing and re-opening accounts — Notes 5 and 6, p. 9 — 1 to 7, p. 18 — 4, p. 32 — 6, Stock acct., p. 33, and 7, Mdse. acct., p. 33 : we may repeat that re-opening a Ledger means, making a new entry of all the EFFECTS AND LIABILITIES, in the heads of the new accounts : and the new accounts re- commence immediately under the closing lines of the old ones — ^Note 6, p. 5^ — or, if there be no space there, forward under a new head.* 2. We have closed this Ledger, as we first closed the introductory one, under the supposi- tion that the accounts are to continue in the same book. All those accounts that have closed into Balance, are therefore re-opened by bringing the balance (entered in red in the old ac- count) down into the heads of the new accounts in black. If we had closed with the view of transferring the balance to a new Ledger, then this one must remain closed, as you per- ceive at the second closing of the introductory Ledger. 3. We may observe here, that though we cannot well avoid doing so in teaching, in making up the Balance Account in business, it is unnecessary to close any personal accounts but those with whom you have had settlements ; all that is necessary, is to find their correct balances in pencil in the margin — see Hartwell's account last page — and transfer them, as if the accounts were closed, to the Balance Account ) and after all is found correct, go over all those accounts requiring addition, and in place of closing them, only foot them, noting the footing on each side " amt. to date," as we have done with our Profit & Loss account before the transfers were made — see p. 106. Leave all the personal accounts open in this manner, to receive any riew entries that may occur until you settle with them ; then they must always be balanced — Note 1. Carter's acct., p. 105. To exemplify this matter fully, I have left open the two Lenox's and Hartwell's accounts — p. 110 and 112; but I have found it answer the purposes of instruction better to direct the student, for the first time, to close all the accounts without distinction. Ttis is indeed the readiest way to explain what we are referring to. 4. Some authors pass all their closing entries into the Journal, and post them from thence into the Ledger. In business, this must incur additional labor without any apparent advantage. 5. Before proceeding with the general balance, the proof or trial sheet must always be first taken off, in business practice. I always take my trial as follows : transfer all the balances f/om the pencil figures in the margin of each account, to their respective places in the Profit &. Loss and Balance accounts ; leaving all the accounts open for the present. Forward the footings of the Balance account only, in pencil. Then pencil the difference of Profit & Loss into Stock, and Stock in the same manner into Balance, which must then be even, if all be correct : if not, the errors have to be sought and corrected in the usual manner. In taking a trial by this method in any extensive business, much labor is saved; but it requires great care and accuracy in every step of the process. * As with our merchandise account, page 101. which is left closed for tlie student to re-opcn upon a new page. H 118 r 'I I II SET II.— DUFFS BOOK-KEEPING. Di, B. Horns, Esc[., in Acct. GuTTent and Date. 18C7. ' Feb. 18 Fc 20 II Apr. 5 10 II May 25 31 u n II Items. Principal. June, 1 {121 !28 m For amt. paid your Bill at sight favor R. Banks accept'g your Bill @ 10 days, favor of R. Banks Invoice of Merchfindise per " Cherub" your J Invoice of joint Ship't "^ " Cambria'* amt. collected from Capt. Bowline Invoice of Shipment to you "^ " Columbia" Com'n forwarding 80 packages from Hart- well & Thorndike, of Boston My i your Acct. Sales joint Shipment from New Orleans .... My i your Acct. Sales joint Shipment *' Cambria" Banks' Bill on Gibbs, Son & Bright Baring & Co.'s Remittance on my acct. Freight collected by you for ship Roscoe n. proceeds my \ Ship Roscoe Bal. of Int. Acct. at cr. in Acct. Current SS // 4440 2500 2166 4980 2400 5691 40 25 33 22 II 5676.59 2126 66 5630 7218 4000 2500 6500 50192 46 Whin Due. Balance due P. Duff this day Errors Excepted, 1 New York, June 30th, 1867. J 1867. Feb. Mar. May Apr. Mar. May June Apr. June May May Aug. Tna. 4.12 3.25 1.25 12.20 20 3.10 31 1. ^0 18 5 5 10 INTE- B£ST. 15 30 2.15 2. 97|68 47i92 19186 66 40 40 j 2846 26 58 56 30 12i .18 10 1.20 20 1.10 i30 5676 59 !1 2. 2165 33 33 16^7 651 33 06 487 91 P. Duff. 1. All well-managed mercantile houses render statements of accounts to all their custom- ers and correspondents, and settle and close their accounts every time they make out their balance sheet. The above, and the two next forms, are illustrations : this one embraces all transactions between us and Morris since our last settlement — from the time that we last balanced our books, down to the time of closing them — 30th June. 2. There are various ways of stating interest accounts, but we have seen none that presents all the particulars with so much clearness and simplicity, and in so little space, as this form. 3. The heading of the columns explains sufficiently the use of each of them. The state- ment is drawn from Morris' account in the Ledger, referring from there by the dates to the Day Book for particulars, when due, &c. The dates, items, principal, and when due col- umns, are filled up on both sides first. Then compute the time of each entry from the date in the when due column to the time of settlement— 30th June, allowing three days' grace only where notes or acceptances are given or received. — See notes 1 to 5, page 45. Extend this time into the time column, and then compute and extend the interest into its column. Those entries which we do not know the day upon which they fall due — such as that on May 8th, Cr. side — are left blank in the interest column, and a Day Book entry will be made to adjust the matter as soon as we learn the particulars. 4. Observe, the date in the when due column, and the figures in the columns to the right of it, in the first entry on the 30th June, Dr. side, are to be written in red, because this $65 interest belongs to Morris, and is not therefore added in our interest column, but, as you perceive, is carried over to Morris' interest column. By the terms of sale which he has effected of our \ Ship Roscoe, the money is not due until the 30th August.— See Day Book, June 30, p. 96. This account is made out, and interest upon every transaction so MERCANTILE FORMS. V See R. Morris' Acct., page 105, and Form XX., p. 120. Interest Acct. to 30th June, 1867, with P. Duff.* Or. 1M7. Jan. Feb Mar. Apr. May June 1 25 28 12 20 8 18 18 ao For Bal. due you ^ acct. rendered your invoice goods ^ " Herald" Proceeds Ryan & Co.'s Bill on Barclay my dft. to Warden & Co., due "^ your Advice n. proceeds my Acct. Sales your goods'^ Herald' my i your joint Invoice ^ " Vixen my dft. favor of Walker your i my Acct. Sales ^ " Vixen" Ins. recovered upon Ship't 1§i ^^ Columbia"' Interest in Red at Dr. side Balance of Interest Acct. 44515.87 Balance to debit in new acct. Pbincipal. When 1 Dqi. Tnuc 1866. 2000 Dec. 31 1867. 6. 8888 88 Apr. 10 2.20 1995 Feb. 25 4.5 • 4444 44 May 30 1. 9052 2 1.28 RUT. 60 ,jf 4000 Apr. 10 2.20 4444441 4093 05 5565 May 18 1.12 June 18 .12 33 06' 5676 59 118 52 4156 22 22 87 50 53 33 28 65 11 13 487.91 454.85 33.0s ■ 46? %' 60192 487' 91 adjusted, that the balance will fall due in cash on the 30th day of June. Therefore, though this principal of $6500 is a debit, yet its interest from the 30th June to 30th August must be carried over to Morris' credit. When sums fall due in this manner, subsequent to the date of the account on both sides, extend the time and interest in red ) then, before you balance, carry over the balance of the " red interest" to the proper side. 5. By looking attentively at the small marginal figures above, you will see how the balance of the interest is found and disposed of For the Day Book entry of it, see note 5, p. 96. It is put to the debit of our interest column, to close it, and at the same time to Morris' credit. Afterwards the account closes in all respects like his account in the Ledger. As there is no entry in any book to show by what process this balance of interest is found, a letter press copy of all such accounts should be preserved in a book kept for the purpose. We have left the exchanges to be computed at the end of the year, as is often done in busi- ness. 6. In stating an account current of any kind, always use such words as will express, in the most concise and perspicuous terms, the origin of the transactions, without any regard to the technical expressions used for the same entries in your Ledger. Those who desire to become expert at making out accounts of this kind, must persevere in repeating the operation several times from their own books, without assistance from our forms. * In this and all the forms let the student use his own name, not ours. — See note, p. 76, 114 115 Ill m m (Ponn II.) SET II.— DUFF'S BOOK-KEEPING. Messrs. JOHN TAYLOR & CO. IN AOOT. OUBBENT WITH P. DUrr, Dr. 1807. Feb. Apr. 12 10 IMT Apr. p. 5 For our invoice of Teas ^ " Jersey" w Protecting your draft on Wood & Co. for . ft Paid Protest, &c., $4. My ^ "^ ct. commission $6 '/ Accepting your draft at 10 days on Wood & Co. // Protest, $1. My ^ '^ ct. commission $3. n Your J Joint Shipment to London *^ '' Cambria" $1200 10 $600 1 Crs. >> $1600. 4093.05 5693 1745 For my i your Joint Shipment to London May 'is i If Your | my acct. sales of Joint Shipment "^ <' Vixen I I Balance due P. D. Due by equation 1st Jan. last.* i I E. E., New York, 30th June, 1867. Note. For clearness and brevity there is no better mode of stating a short account than this. The subtraction of the credits from the debits is made to show the balance. When the balance is against you, the form has to be a little varied, as yon see by Hay's account following.— See page 103. 644 1210 604 4980 7488 33 05 28 (Ponn III.) WILLIAM HAY, Esq., IN AOOT. OUEEENT WITH P. DUPP, Dr. •am. Mar. Apr. May 2 16 15 // 4. // For your half Walker's Invoice of Eice Bot. on joint acct. // Carter's protested note endorsed by you Your half joint shipment to Liverpool "^ " Erie" Your half Finlay & Co.'s Invoice of Pork Bot. on joint acct. June |30 \ f Balance carried to your credit in new acct. 1887. Feb. Mar. Apr. June 12 1 5 5 15 1 28 Crs. 30 For your Invoice of Table Linen ...... Cash on acct. of purchases on joint speculation . My half your Invoice of Wines sent me for sale on joint acct. Your half my acct. sales of goods sold on joint acct. . Your Invoice of Pork ....... Amt. advanced by you in joint shipment "^ " Erie" . Your half net proceeds of joint shipment to Boston . Your half returns of joint shipment to Liverpool Your i dividend net profits of Ship Roscoe ji If By Balance due Mr. Hay brought down E. E., New York, 30th June, 1867. 12 L6012 L0813 12 12 12 * This is ascertained by what we call a Compound Equation. As we do not see the rule in any of our arithmetics, we sub- join it. Rule.— Find the equated time of each side of the account by a simple Equation— note 2, p. 68. Then multiply the lesser side by the time that intervenes between these two equations, and divide the product by the balance of the account; the quo- tient is the time to count back or forward. If the balance is on the side of the earliest equation, count back from that date ; but if it be on the side of the latest equation, count forward from that date. Let us illustrate the rule by Taylor & Co.'s account as above stated — refer to the Day-Book for the time when each amount falls due. We find by simple equation that the Dr. side falls due April 6th, and the Cr. side May 5th. The time between these equations is 29 days : and the lesser side of the account is $5693. X 29 days = 165.098 -h $1745 (the balance) = 95 days. Now the balance being on the side of the earliest equation— April 6th, we must count back from that date 95 days, which brings us to the 1st January, tlu> dav upon which this balance is due. 116 MERCANTILE FORMS. * Form IV.— See Note 1, p. 82. SALES OP MERCHANDISE sold by order and for account of E. Morris, Esq., London. 1867. Feb. 5 9 Mar. 1867. Feb. Mar. 18 12 Sold for Cash to J. Lorillard — 1 pipe, 120 galls., Port Wine .... Sold to William Park at 4 months — 5 pipes, 600 galls., Port Wine .... Sold for Cash to W. Bryant & Co. — 3 pipes, 360 galls.. Port Wine, Sold R. Banks for Cash — 2 pipes, 240 galls., Port Wine .... For net proceeds of 10 pipes Port Wine sold in New Or- leans, Rec'd Barclay & Co.'s acceptance at 60 days from date for ...... , Taken to my acct. the remaining 9 pipes, 1080 galls., at market price @ 60 days . . . @ ^3. 12 20 12 @ 83. u ft 3.50 3. 3.50 360 2100 1080 840 4500. 3240. CHARGES. // // tf II II Paid Duties Freight and Primage . For Grauging Cartage and Cooperage Cartage, Freight, and Insurance of 10 pipes shipped to New Orleans .... R. Banks, for overgauged Wine . Storage ........ Advertising ....... Commission and Guarantee 5 per cent, on $12120 Net proceeds due in Cash 2d May E. E. New York, March 12, 1867. % 2222.22 167.78 1.50 3.50 28. 21. 3.50 14.50 606. i p. DUFP. The Account Sales is always drawn from the Commission Sales I>ook; or, if that book i» not kept, from the Day Book. No entry whatever ought to appear in the account but what relates to the sales; and nothing should appear in the charges but the expenses attending the Sales. — See Note 3, p. 68. The rule for equating the time? is given on page 68. Or the student may, if he prefers them, work by those given in his Arithmetic; but I would recommend him to prac- tise upon the one he intends to use until he can operate with dexterity and accuracy. When you make out an Account Sales, with part of the consignment unsold, give a conciPe statement of the goods unsold at the foot of the account. — See Note 4, p. 68. 7740 12120 3068 9052 117 I^vfi • SET II.— DUFF'S BOOK-KEEPING. Form V.— See Note 4, p. 90. ACCOUNT SALES of 40 Bales Brussels Carpeting, sold for the joint acconnt of P. Duff of New York, R. Morris of London, and J. Taylor & Co. of New Orleans, each one-third. 18«7. May 1867. Apr. May 13 18 20 18 Sold to Warden & Bell— 120 pieces, 4250 yds @ 62. Net proceeds of 55 pieces sold at Austin & Co.^s Auction Taken to my own account the remaining 55 pieces, 1907 yds. @ $2. CHARGES. Paid Duties to the Custom-house // Freight and Primage per " Vixen" . // Insurance against fire ..... ft Cartage and labor . . . i . Storage $3, Advertising $10 Commission 2^ per cent, on $15874 Net proceeds Of which my i is w K. Morris' do. at his credit due this day » J. Taylor & Co. do. do. E. E. New York, ) , May 18, 1867. J . ■' 3000. 150. 33. 2. 13. 396.85 4093.05 . 4093.05 4093.05 $12279.15 Duff. 8500 3560 3814 15874 3594 12279 85 15 Form VI. — A Foreign Bill of Exchange. — See Note 6, p. 76. Exchange for £1000 Sterling. New York, February 25, 1867. Sixty days after sight of this our first Exchange (second and third not piiid), pay to the order of Peter Duff One Thousand Pounds Sterling, for value receiyed, and place the same to account as per advice from To Egbert Morris, Esq., | Yours, respectfully, Merchant, London. j Baker & Fox. Form VII.— An Inland ^.ill, on Draft.— See Note 2, p. 70. $1000.-^% 1 ^ New Orleans, December 10, 1866. Ten days afWw^Jit, pay to the order of Messrs. Ryan & Dale One Thousand Dollars,' value recei^f^ foyjiccount of, To Mr. PETER,Dirf% ^ * Yours, respectfully, Merchant, ^^ York. J John Taylor & Co. Form VIII. — An Order.— See Jan. 24, p. 72. $500.-jft5<>j New York, January 24, 1867. Pay to the order of Messrs. Warden & Bell Five Hundred Dollars, for value received, for Yours, respectfully, To James Walker, Esq., ") p. Duff. Merchant, New Yoi-k. j Form IX. — An Order for Merchandise. — See Note 3, p. 70. I108.T% New York, January 15, 1867. Pay to the order of Mr. Henry Pryor One Hundred and Eight Dollars, in Merchandise out of your store, for account of To Mr. Peter Duff, ) James Carter. Merchant, New York, j 118 MEECANTILE FOEMS. Form X. — A Promissory Note. — See Note 4, p. 72. S1515./g%. New York, January 30, 1867. Sixty days after date, for value received, I promise to pay to the order of Mr. Peter Duff Fifteen hundred and fifteen dollars, y^u- William Hay. Extensive houses now generally arrange such transactions with an acceptance. The fol- lowing is the form : Form XI. — An Acceptance for the above transaction. $1515./o%. New York, January 30, 1867. Sixty day^ a^r date, for value received, please pay to my order Fifteen hundred and fifteen Dcii^s, jYo- To William Hay, Esqufl : p. Duff. Merchant, New Yor^j ^ With the left side up, Hay Writes across the face, in red ink, " Accepted." Wm. Hay. This form will be found convenient for making payable at a particular place — say Phila- delphia. The drawer then says " pay to my order in Philadelphia." The acceptor must name the place where he will have funds to take it up — thus, he writes across the face. *' At the Girard Bank." Wm. Hay. To negotiate this acceptance, the drawer has to endorse it himself, it being payable to his own order. Form XII. — ^A Joint Promissory Note. ^SOO./qO^. New York, January 30, 1867. On demand, for value received, we or either of us, promise to pay to the order of Mr. Peter Duff, Five hundred dollars. Wm. Hay, James Carter. Form XIII. — A Receipt in full. — Note 4, p. 70. New York, January 16, 1867. Received from James Carter Five hundred and sixty dollars in full. $560.^Oo'u- P. Duff. Form XIV. — A Receipt for money on account. — Note 2, p. 84. $800. Received from Peter Duff, Eight hundred dollars, on account. New York, March 31, 1867. R. Lenox. Form XV. — A Receipt for an endorsement upon a note. — Feb. 12, p. 74. $2000.y%<5j. Received from Mr. Thomas Edwards, Two thousand dollars, which is endorsed upon his note. New York, February 12, 1867. \ P. Duff. Form XVI. — A Receipt for a promissory note. — January 18, p. 72. $600. Received from Mr. James Carter, his note at twenty days for Six hundred dollars, which, when paid, will be in full to date. New York, January 18, 1867. P. Duff $2100./^o^. Form XVII.— An Endorsed Note.— Feb. 9, p. 74. New York, February 9, 1867. Four months after date, for value received, I promise to pay to the order of Messrs. Warden & Bell, Two thousand one hundred dollars. Wm. Park. Endorsed notes are always drawn payable to the endorser, not to the holder. 119 ■I SET II.— MERCANTILE FORMS. Form XVIII. — A Letter of Introduction. New York, May 30, 1867. Dear Sir, I have the pleasure of introducing to you the bearer, my much esteemed friend, William Hay, Esq., Merchant of this city. While in London he wishes to confer with you upon some business, the nature of which he will himself explain to you. Kecommending Mr. Hay to your usual kind attention, I remain, Dear Sir, To KoBERT Morris, Esq., ) Yours, Kespectfully, Merchant, London. P. Duff. Form XIX. — ^A Letter of Credit. New Orleans, March 30, 1867. Dear Sir, If the bearer, Mr. James Draper, desires to make any purchases of merchandise of you on credit, you may consider us responsible to you for the payment of the same, to any amount not exceeding One thousand dollars. In the event of his failing to make his pay- ments according to agreement, we require you to give us timely notice of the same. We are, Dear Sir, To Mr. Peter Duff, ] Yours, Kespectfully, Merchant, New York. } John Taylor & Co. Form XX. — ^A Letter with an Account. — See Form I., p. 115. New York, June 30, 1867. Dear Sir, Inclosed I hand you your account current balanced by $5676.59, in my favor due this day ; to which, if you find it correct, please make your books conform. I am with- out any of your favors to reply to, but remain. Dear Sir, To II. Morris, Esq., \ Yours, Respectfully, Merchant, London. J P. Duff. Form XXI. — A Letter of Advice. — See Note 5, p. 84, and Note 1, p. 86. New York, April, 10, 1867. Gentlemen, I have to inform you that I have this day paid your bill of $1200, on Sidney Wood & Co., which was protested for non-payment. Your bill of $600 on the same parties, has also made its appearance, and the drawees having apprised rae of their inability to give protection to your signature, I have accepted for your honor and will take care of it at maturity. Bill paid $1200. Expenses $4. Commission ^ per ct., $6. Due this day $1210. Bill accepted supra protest $600. Protest $1. Commission $3. Due 23d inst., $604 which amounts please place to credit of, Gentlemen, To Messrs. John Taylor & Co., | Yours, Kespectfully, Merchants, New Orleans. j P. Duff Form XXII. — A Letter of Advice. — See Note 4, p. 76. London, December 24, 186(5. Dear Sir, In my respects of the 18th instant, I inclosed you an invoice and bill of lading of a consignment of 30 Pipes Port Wine shipped per " Herald," which sailed on the 19th. I have now to advise you that I have this day valued upon you at 10 days on account of the same for $2500 in favor of Kobert Banks, which please honor for account of To Mr. P. Duff, ) Yours, Respectfully, Merchant, New York. J R. Morris. 120 DUFFS BOOK-KEEPING. PAKT II. 121 , 1 1 ': T ■ i' 1' i! il 1, ij il 1 1 I I i i .! '1 DUFFS BOOK-KEEPING, PART IL EXEMPLIFYINa PARTNERSHIP BOOKS Upon two different methods, for greatly abbreviating and simplifying tbe usual process of Double Entry Book-keeping. Adapted to the most limited retail, or to the most ex- tended wholesale business ; with the whole of the auxiliaries, with part, or without any of them. Illustrating a new method of PROVING THE LEDGER:* By means of which, no entry once made upon the Day Book or any op the Auxiliaries can afterwards be omitted at any stage of its passage to the Ledger without certain detection. Embracing also an exemplification of the PRIVATE LEDGER, By means of which the results of the business can only be known to the partners. Practical directions for transferring the contents of the old Ledger to the new one, illustrating the formation of a NEW FIRM BY THE INTRODUCTION OF A NEW PARTNER. Also, particular directions for conducting partnership books during settlement, after dissolution. MAKING OUT PARTNERSHIP BALANCE SHEETS. p Rates op Commission and Storage established by the Chambers of Commerce of the cities of NEW YORK and PHILADELPHIA, with various additional matters of important in- formation for men of business. * We do not present the six-columned Day Book or Journal as original. Our method of proving the Books is applicable to any form of Day Book or Journal. 123 V- ii I I SET I.— PART II.— PARTNERSHIP BOOKS. PRELIMINARY REMARKS. 1. We now propose to supply what other authors have omitted — an arrangement of the Double Entry principle, practically adapted to retail business, — a method divested of the cumbrous machinery of Auxiliaries, the dilatory intervention of the Journal, and, above all, the voluminous masses of writing created by the common mode of keeping and posting the Cash and Merchandise accounts. 2. Though the following method is conducted strictly under the first fundamental rule of Double Entry — equal debits and credits — it will be readily seen that a great saving of books, writing, posting and checking is effected, with increased security against error, with the full benefit of all the information obtained by the ordinary Double Entry process, and with the convenience of having your personal accounts daily posted up and ready for settlement at a minute's notice. Let us state its advantages over the common process more distinctly. Ist. — Dispensing with all books but the Day Rook and Ledger. 2d. — Writing in the cash and merchandise accounts in the Ledger reduced to about one LINE FOR ONE HUNDRED. 3d. — Checking the cash and merchandise posting, reduced in the same proportion. 4th. — A yearly saving of forty or fifty folios of the Ledger. 5th. — Increased security against error, as no entry once entered upon the Day Book can be omitted in posting without detection. — See Note 1, p. 135. 6th. — Daily posting of the personal accounts, thereby having them always ready for settlement. 3. These are considerations which entitle this method to the particular attention of all retailers. And though, in ordinary retail business, the Day Book and Ledger are the only books ab.solutely required, we shall show hereafter, that as the business increases this arrangement will not be disturbed by the introduction of any one, or all the auxiliaries in use. It is therefore not only adapted to the most minute retail business, but to the most extensive operations of commerce. 4. No person should attempt to learn the science by commencing here. If he is unac- quainted with its principles, he must first acquire them by the course of instruction in the preceding part of this work. Afterwards the form of these books, although somewhat com- plicated in appearance, can be understood and practised with ease. Indeed, after the Day Book Entry is once correctly made, the subsequent steps partake much of the simplicity of Single Entry. But, for obvious reasons, no one should attempt to apply it to business until he has gone through a course of exercises. 5. The following Day Book is ruled with six columns; the debits, as usual, always occupying the left, and the credits those on the right. The column next the writing on the left and that on the right, as you perceive by the post marks, are the only ones that are posted in detail. The cash and merchandise amounts, both debits and credits, are forwarded from page to page until the 30th March — p. 128. From there they are posted in one sum, afiixing to it the post mark as usual. In making the Day Book Entry, care must be taken to extend all cash and merchan- dise entries into their own columns. And those who are very expert in addition, and who desire to keep their work free from erasures, should foot and prove the addition first upon a waste sheet of paper, taking care afterwards to keep each set of figures under its own column. 6. In making an entry, the same form of expression is used as upon a common Journal. In entering an invoice of sale, the particulars are first short-extended, like Evans's or But- ler's entries on the next page. 7. Observe, the Cash and Merchandise accounts can be posted monthly or yearly, as may suit your convenience, recollecting that every time these accounts are posted, it makes a period in the amounts brought forward on the Day Book, and the new period commences with the heads of the columns empty. — See Note 1, p. 128. 124 Diis. NEW YORK, January 2, 1867. Cbh. Mdse. 3380 Cash. mo 3380 Paid Bal. 954 4954' 1 1200 400 4 271 337 25 50 50 50 25 \U4 2 10 2247 4954 3380 2 1700 50 10581 3253 50 Cash, Dr. to Sundries, To P. Duff, received on account of capital, " W. Gordon, If Mdse., Dr. to Sundries, To T. P. Cope & Sons, for Invoice, " Wm. Hay, for Invoice, " Cash, paid freight, == 5. = Sundries To Cash, Expense account paid laborers. T. P. Cope & Sons, remitted them. Wm. Hay, remitted him. Exchange account, paid Premium on drafts. „ __ Robert Martin (270 Bowery), To Mdse., 1 pair fine Boots, ..... $6. Repairing two pair do. . . . .1. 1 pair Ladies' Boots .... 2.50 f, ; James Carter, To Mdse., 1 pair Boys' Shoes, .... $1.75 Footing 1 pair Boots, .... 2.75 If Robert Evans (Buffalo), To Mdse., 12 pair Boots, at $8. $96. 24 " " Light, " 6. 144. 24 " Boys' Shoes, " 1.25 30. Packing case and cartage, 1.25 ====== 10. "~^ P. Duff, To Cash on account, II James Moore (Pine St.), To Mdse., 1 pr. Boots,* // Robert Butler (Albany), To Mdse., 48 pair Ladies' Boots, at $2. . . $96. 60 " Men's do, " 3. . . 180. 60 " Boy's do. " 1. . . 60. Box and cartage, . . . . 1.25 ,; ZZZZZ Cftsh To Mdse. for sales to date, ==z= 20. = W. Gordon, To Cash on account, // J. Carter, To Mdse., for 2 pair Shoes, . , $2. Amounts forwarded, Cash, Merchandise Proof OBsh. 1. Pencil the cash paid under the amount received, and you can see the balance as often as you desire. — See Note 1, p. 128. * Entries that are collected before posting, are marked 80 in the folio column, and the pen is run lightly through the figures on both sides. Omit these figures in the ad- dition, and dispose of the cash as if received for a ready money sale. 2500 1500 2500 800 80 1 I 3605 50 7300 1700 50 1580 50 n 9m 171 337 25 4M 954 4 1700 50 1580,50 .10581 125 i i i I I DBS. 1 January 20, 1867. Cbs. MdM. 3380 " Osah. 4954 2247 94 IM 2 Bro't forward, . R. Martin (270 Bowery), To Mdse., rep*g Boots, 31. .^ I I 6 , I i 1 I P. Duffy To Mdse. for 1 pr. fine Boots, 2 50 1 W. Gordon, To Mdse. for 1 pr. Ladies' Boots, I il U - Feb. 1. == ' Mdse. To Sundries, To Cash paid Journeymen to date, " J. Day, foreman's wages to date, n 45 3 James Day, To Sundries, j To Cash, paid him on account, i " Mdse., a Black Dress Coat, 3 20 3 ' Expense acet. to Cash pd. for Coal $3, post. 20, n Sundries To Cash, 111 T. P. Cope k, Sons, remitted draft. 200 1 Wm. Hay, do. do. 6 50 ,3 Exchange acct., paid Prem. on the above drafts. I — 10. - 7800 50 CMdi. 1700 60 Mdse. 24 20 1580150 50 6 2 50 16 430 12 35 I Sundries To Mdse., 3 J. Day, pd. his order to W. Price. 2 R. Martin, do. to James Reed. Mdse., Dr. to Cash pd. Journeymen, — 16. Mdse. To Cash, pd. Davis's Auction Lill, fi 95 45 3 : J. Day, Dr. to R. Martin. ! For our order on R. Martin. // — 60 200 A. BeU To Mdse., for 1 full Circle Cloak, 20. ^== Mdse., Dr. to Edward Pryor, For his Invoice of Trimmings, n Cash To E. Pryor, rec'd in loan, 1 w ! \ 2 50 2 A. Bell To Mdse., repaired Coat and Vest, // ■ 16 3 E. Pryor To Mdse., 2 pr. Blk Cassim. Pants at $8. 3 8 3146 20 5154 • 4160' 12460 20 • Amounts forwarded. Cash, . . . Merchandise . Proof 1. After the books are open we discontinue the useless, though universal, practice of continually repeating the place of business at the head of every page. 2. Mdse. is Dr. for the expense of manufacturing, al- though it is more proper to carry rents, clerks' wages, and the expense of selling it, to the Ex- pense account. 8. To save writing we may, hereafter, set the footings of the Cash and Merchandise columns, at once into the proof column. 3 20 706 50 16 630 25 60 200 7635 3100 20 1725 1 12460 20 126 25 47 45 2 16 50 Dks. Mdse. 4160 80 50 Gash. 5154 534 250 300 650 February 28, 1867. Cbs. 3146 '20 200 48 36 45 5 43 800 40 48, Bro't forward, j Mdse. To Cash, pd. Journeymen, \ — If Mdse. To J. Day, wages to date as foreman, ■ == Mar. 1. - 1 7635 1 I Cash. 3100 20 1 I 36 3 i 50 1 MdM. 1725! 3 1 E. Pryor To Cash, pd. loan of 20th ult. ^ ^ I Sundries To Mdse., 1 ! P. Duflf, for 6 yds Black Cloth, at $8. 1 I W. Gordon, 16 yds. Fig'd Satin, 1.50 24. 1 doz. Black Cravats, 12» — 10. — 200 Cash To R. Evans, rec'd by mail, — - " — ft Sundries To Mdse., 2 R. Evans, 1 ps., 36 yds., Satin, 3 j E. Pryor, pd. his order to A. Wood. _ -^ ff at $1.25 Sundries To Mdse., A. Bell, 1 fine Hat. Samuel Gaynor, 4 yds. B. Blk. Cloth, at $10. 40. 1 " Cassimere, 3^ ^..^ 20. "- 250 I i « T. P. Cope & Sons To Cash, 1 Pd. their draft at sight for Bal. of account. // Cash, Dr. To Robert Butler, rec'd per mail, ff 806 I 3 Edward Pryor To Andrew Bell, i for our order on the latter. 3 I * S. Gaynor To Mdse., paid his order to H. Wallace, — ' ■■ 25. = 4417 20 I 6354 4780 15551 20 Mdse. To Sundries, To T. P. Cope & Sons, for Invoice of Cloths, " Cash, paid freight on same, ■ Cash To Mdse., For Cash sales to date. Amounts forwarded, .... Cash, Merchandise Proof 1. We wish our readers to observe, that though want of room compels us generally to write only the initials of the Christian names of persons, in business we direct these to be written in full; confusion and trouble are frequently occasioned by the contrary practice. Legal titles should also always be chosen : "Commercial Advertiser" or "Evening Express" are not the proper titles for accounts in our books. 2. Recollect Note 1, Carter's acct., p. 105. 3. Recollect Rule IX., p. 40. 2 300 40 504 30 8779 4166 20 2606 15551 20 127 84 51 4S 48 650 Drs. March 30, 1867. Crs. Hdss. 1 1 OMh. 4780 1 6354 4417 20 60 3 m 37 25 45 90 20 2 3 4 4632 6391 4830 20 25 45 1 1 15853 Bro't forward, ;/ Expenses To Cash, paid store rent to date, // Merchandise To James Day, for foreman's wages to date. = 31. == James Carter, Dr. to Cash on account, ff Expense account To James Carter, for 3 months' salary to dates, ff — Profit A, Loss To Cash, for a counterfeit $20 note, ff Cash To Robert Butler, Received in full per mail. Total amount to date Cash . . Merchandise Proof Merchandise on hand per Inventory at date is $3217.50.— See Invoice Book, p. 137. m Cast 1. Hdae 8779 4166 20 2606 60 3 50 45 - 2 90 20 2 37 25 1 1 8956 4291 2606 16853 25 20 1. To find the balance of cash in hand, after a period of the Day Book is posted, you must add, with your pencil, the balance of the posted part of the cash account on the Ledger to the footing of the debit column of that account on this book; then deduct the amount of the credit column, and you have the balance in hand, as in note 1, p. 23. 2. Care must be taken to extend the cash and merchandise entries into their own columns. Each entry should be carefully examined before adding up. 3. This form of Day Book will be found applicable to almost any kind of business, the Cash columns being always required as they are here. Those which we use for Merchan- dise "may be used for any title that will represent the person's principal business; the Medi- cal and Legal professions can use it for their Practice; Manufacturers would use it for their Factory, Hotels would use it for their Expenses, &c. 4. Every business has an account from which its principal income is derived. This and the cash 'account must always create a great number of entries, and any mode of posting these entries in accumulated amounts, must materially diminish the amount of writing in the Ledger. No method has yet been tried which accomplishes this object with so much simplicity and accuracy as those explained in this and the following set. I am aware that some do it, or attempt to do it, by the page, by the week, and by the month, by means of what is called a " collecting sheet.' But, on account of its great impediment to checking, and still greater difficulty in detecting errors, this mode of posting can never be recom mended. 128 PARTNERSHIP BOOKS. THE LEDGER. INTRODUCTORY REMARKS. 1. The following Ledger is opened, conducted, and closed upon the same principles as those already explained. I have made one or two slight deviations from the common course, which the book-keeper may or may not adopt, as he pleases. In order to conflict as little as possible with the established process of teaching, I retained the prepositions To and By in the Double Entry Ledgers in the first part of this work ; but as I consider them of no more use than the old practice of filling up the cent column with unmeaning ciphers, I have dropped them in both Ledgers in this part of the work. 2. In the next place, I have in some instances briefly detailed the Day-Book entries on the Ledger. I am aware that some ridicule all attempts at entering details of any kind of busi- ness upon the Ledger, and many persons are impressed with the idea, that it is contrary to the rules of accounts to do so. But retailers will be perfectly safe in giving what I suggest a trial. It is as easy to write 1 ft) tea, a hat, a coat, or a pair of boots, at a man's account, as merchandise. The book-keeper's experience will soon enable him to judge how far it will be for his convenience to carry out this method of posting, recollecting that it is only recom- mended to retailers. 3. While teaching the principles of the science, dividing the Profit & Loss account into Expense, Exchange, Interest, &c., renders the subject more complex and tends to retard rather than facilitate the student's progress. For this reason none of these accounts were introduced in any of the preceding sets : but we have given an exemplification of each in this and the following set, with the necessary directions for closing. We may also observe, that these accounts ought always to be kept in every business that creates any considerable number of entries for them. Note 4, p. 24. 4. I have opened the Ledger with a cash capital of 84000, placing $2500 at the credit of Dufl", and $1500 at the credit of Gordon. The business closes with a gain, which is divided and carried to the credit of each partner in proportion to his capital. 5. It may be proper to observe here, that the rules of accounts have nothing to do with regulating the division of profits or losses ; that is altogether a matter of private agreement. In our next Ledger will be found an illustration of the equal division of profits ; and on page 181, various modes of adjusting the difference of capital by interest : our students shall have an ample variety of illustrations. 6. After closing this Ledger we have transferred the contents to a new set. This was done for the purpose of giving another practical elucidation of that process, and also to get an opportunity of exemplifying the application of our method of proving the books to an entire set. We think it proper to give this explanation here, because many persons imagine that every new partner who is introduced into a firm, makes it necessary to have a new set of books. This is not necessary, provided the old books have been regularly kept. It is, however, generally necessary to take an inventory of the property on hand and to make out a Balance sheet. The new partner's name is then introduced, with a credit for whatever he brings in, and a debit for what the firm may assume for him. The old partners' accounts are closed and their respective shares in the business at that period brought down. 7. A suspended list ought always to be opened upon these occasions for such debts as the old partners have any doubt of collecting. — See Suspended List, p. 134. — Of course they must make good to the new firm all old debts for which they credit themselves : and if many of these debts should afterwards prove wholly or partially irrecoverable, the adjustment oV the matter has always to take place after the lapse of considerable time, — perhaps several years : it then becomes an awkward and very troublesome operation. In all such cases it is better, at the commencement, for the old partners to carry no debts to their credit but such as they are absolutely certain of collecting. Leave all the others behind upon the suspended list, and make new dividends of them, between themselves, as collected. — See Duff" and Gordon's Account, page 169. I 129 I il ' . r I #' ON CLOSING A PARTNERSHIP LEDGER. 1. The principles of opening, closing, transferring, and re-opening books have been already so carefully explained in the first part of this work, that it is to be hoped nothing need now be repeated that has been there explained. 2. The only new features in the process now before us are the dividends of gain or loss, the partners' accounts, and the suspended list ; the management of all the other accounts is in every respect the same as in individual business. 3. The manner of finding the net gain or loss, is the same as we have previously explained : the division of it, and the operation of closing the account, can be best explained at the account itself — p. 134. 4. In closing the personal accounts, omit the partners' accounts, and leave them open until the last : they, like the stock account in individual business, being always affected, as you perceive by referring to them, by the closing entries of Profit & Loss, and must, there- fore, be left open to receive their entries of gain or loss when that account is closed, which cannot be done until it receives all its transfers from the Other accounts. Therefore, the partners' accounts, Profit & Loss and Balance, must be remaining open after all others are closed : these are then closed — ^first. Profit & Loss into the partners' accounts, then the partners' into Balance : then, if all be correct. Balance will be exactly closed by these last transfers from the partners' accounts. The accountant should always first make the closing entries of these last accounts in pencil, to be certain that the Balance will close by the last entries. For although this trial may have come out all correct, errors or omissions may have got into the work that he has done since, which will compel him to scratch and disfigure these, the most conspicuous accounts in his Ledger. 5. It may \>e proper to remark, that though both our partners' accounts here close To Balance, when a partner draws out more than his share of the gain and the amount he has paid in, his acct. closes -By Balance. When all the partners' accounts close in this way, then the firm is insolvent. In short, after partners have received their transfer from Profit & Loss, their accounts then close in every respect like those of other persons. — See Notes, Balance account, p. 35.* 6. We have already alluded to the use of the Suspended List, and have now only to state, that it is opened for the purpose of exhibiting a list of all such accounts as we think we cannot safely make a dividend upon : the partners must themselves mark these for the book- keeper. The amount of such accounts must be known in order to enter the Profit & Loss account, for the Ledger will not, of course, balance without disposing of these accounts either in Profit & Loss or Balance : besides, the practical merchant or mechanic will find this companion to the Balance sheet a useful monitor every time it is made out. 7. The book-keeper can often materially shorten the balance sheet by sending round, before making it out, and paying off" all trifling balances against him, and, at the same time, by col- lecting all balances of this kind. From inattention to what I here suggest, I have seen balance sheets made out with fifty or sixty accounts of trifling sums upon them, nearly all of which would have been paid if called for. Note. — ^We think it unnecessary to annex an index to this Ledger : we give one to the next — page 164. * If a partner is taken into the firm without capital, his account will open without a credit, and will remain so until the Imginess places a profit at his credit. 130 fir. R DUFF. Cr. 1867. Jan. 10 Cash, 31 1 pr. Fine Boots, Mar. 1 6 yds. Blk. Cloth® $8. Balance, 59. f. 1867. 1 1 1 5 Jan. ' 2' 2 6 Mar. 31 3 48; , 1 ' ' 4 2884 47 2943 47 Cash, 2943.47 p 59. ^' 1 4 2500 443 47 ,- 188£47 2943 47 -1- 1. Credit each partner for what he pays in, and for his share of th^net gain, and debit him for what he draws out and for his share of the net loss. Close To or By Balance. — Notes 4 and 5, p. 130. •2. When a partner leaves home, taking money with him to lay out for the business, he should leave a memorandum of th« amount with the cashier, who can count this paper as money until the partner sends him a statement of the outlay • then the final entry is made. The practice of encumbering a partner's account with such transactions can never b« recommended. W. GORDON. 1867. Jan. Mar. I 20 31 2 31 1 Cash, 1 pr. Ladies' Boots, 16yds. F. Satin® 1.50 1 doz. Cravats, 48.50 Balance^ f. 1 2 3 4 1 10 250 24 12 1717 58 r 1867. Jan. Mar. 2! Cash, 31 Profit & Loss, ^'ffiJS f. 1 1500 4 266 08 i I 1 1766 08 1766 08^ 1 1 i |- III ) T. P. (PI ^ladelphia \' 1867. 1 Jan. COPE & SONS. 1867. ' Jan. 5 Feb. 5 Mar. 20 Cash, // 1 2 3 4 1200 500 800 2 Mdse. "^ Invoice, 1 2500 i '^' 1 2500 3 504* 2500 504 31 Balance f. Mar. 25 Mdse. "^ Invoice, WILLIAM HAY. iscr. Jan. Feb. Mar. 5 5 31 Cash, // 600 Balance, * f. < . 1 1 400 : 2 200 4! 200 ' 1867. Jan. 2 Mdse., »5: 1 800 i 800 800 ■^ ■— mz CASH ACCOUNT. 1867. Mar. 31 Sundries to date, SiS 2100.05 1 4 ! 6391 25 25 1867. Mar. 1 31 1 Sundries to date, 4 4291 20 Balance, . J 100 05 6391 1 639125 1 MERCHANDISE ACCOUNT. 1867. 1 Mar. 31 Sundries to date, 4 4830 1 Profit & Loss, f. 4 993 50 1 Ii — - ■ --;1 1867. ' ; Mar. 31 Sundries to date, // lrilMn"<' 5S23-56 4 2606 1 5823 50 ML50 5823 50 ■ -^^ Il 131 ii! ii I I ' f; i' '' Dr. ROBERT (i«70 Bowery; MARTII^. ir. 1887. I I Jan. 5l 1 pr. Fine Boots, Repairing 2 pr. do. 1 pr. Ladies' Boots, 20 Repairing Boots, Feb. 10 Pd. order to J. Reed t May 23> Bal. bro't down, Note 7, p. 129, and 6, p. 130. I. The above account remained closed until Martin paid the amouDt to the new firm. It was then re-opened to re- cord the payment : this must always be done in such case:s. 1807. Feb. Mar- May 15 31 Our order to J. Day, Suapeuded J^ist, f. 23, Pd. Duff, Gordon & Co. 2 4 2. If the business of the new firm had re-opened in these books, it would then have been necessary to re-open the suspended accounts with a Day Book Entry, making them Dr. To Duff & Gordon : then credit them for the payment. JAMES (Clerk) CARTER. 1867. Jan. ' 5; Shoes 1.75, Boots foot- ed 2.75, 20 2 pr. Pumps, @ $2, Mar. 31 Cash, 53.W vlalance, f. 1 ; 1887. ;Mar. 31 1 4 50 1 1 4 4 4 45 36 50 1 90 1 3 mos. sal'y to date, Sim 90 90 ROBERT (Buffalo) EVANS. 1867. I I Jan. 5 Mdse.*^ Invoice, Mar. 10 36yds.cordSatinl.25' 3 316.2& 250. May 31 Bal. bro't down, 1887. 27125' Mar. 45 10 31 Cash by mail, fcu;=pUU(ieu List, Pd. Duff, Gordon A Co. 3 4 See Martin's account above, and Note 2, Suspended List, p. 134. ROBERT (Albany) BUTLER. 1867. 1 I Jan. 10 Mdse. 19 Invoice 1 337 25 1867. 337 25 Mar. ,20 Cash f mail, 31 f 3 4 3001 37125 337 25 ANDREW BELL. IMT. Feb. 15 1 1 full circle cloak, 20 Coat and vest repaired, Mar. 10 1 Beaver Hat, 52.S0 q 40. *> 12.50 1807. Mar. 20 Our order to E. Pryor, ' 3 31 i Profit & Loss, f.j4 Considering thia a bad debt, we clooe it into Profit & Lobs. 132 Dr. JAMES (Foreman) DAY. Cr. i8«r. Feb. 1 10 15 Mar. 31 Cash, Black Dress Coat, Pd. order to W. Price^ Our order on R. Mar- tin, 83. I^alance. ' fol. 2 2 20 25 12 25 1 1867. Feb. Mar. 1 28. 30' , i 4j G8 — 150 1/ 150. 82. 2 50 1 '3 50 4; 50 ! i 150 EXPENSE ACCOUNT. 1867. Jan. 5 Cash, Feb. 5 n Mar. 30 // Store Rent, 31 J. Carter, salary, i54.to 1 2 4 150 3 20 60 90 154 70 186T. Mar. 31 Profit & Loss, fol. 4 154 70 154 70 EXCHANGE ACCOUNT. 1867. ' Jan. 5 Feb. 5 Cash, 1 4 10.50 2 6 50 10 50; 1867 ' Mar- 31 Profit & Loss, fol. 10 50 10 50 1. This and the preceding account are branches of Profit & Loss, and are always closed into it. — Note 4, p. 24, and Note 3, p. 129. The student can never be at any loss in conducting them, they being of the same nature as Profit & Loss, and are therefore always debited when you lose, and credited when you gain by them. EDWARD PRYOR. 1867. j I 1 !| Feb. '20 ' 2 pr. Blk. Pants, @ $8. 2 16 Mar.. 1 1 Cash Loan 20th ult., 3x 200 |lO i Mdse.pd. order to Wood | i 6 1 20 Ourorder on A.Bell 262. 260. 1867. I I I Feb. 20 Mdse. ^ Invoice, 2 60 I Cash Loan, m | X 200 Mar. 31 Hahuice, fol., t Zl 262 This method of entering loans dispenses with the Borrow & Loan accoant. SAMUEL GAYNOR. 1867. I I 11 Mar. 10 4 yds. best Blk. Cloth, ' 3 1 // Cassimere, 20 Paid order to H. Wal lace, n. 40 8 48 91 1867. I I fol -. n --'■■'■■"" 91 '■ ' » 133 I f' Jlr. PROFIT & LOSS. Cr. PROOF SHEET, March 31, 1867. Drs. Crs. IMT. Mar. '31 Cash counterfeit money Andrew Bell, Expense acct., Exchange acct., Suspended acct., P. Duff's net gain, W. Gordon u fol. 283.% 1867. Mar. 31 Mdse., fol. 1 993 993.50 283.95 Gain, 709.55 993 50 50 m •i |,:. V i :b Bead Note 4, p. 130. 1. The marginal pencil figures on each side show how the net gain is found : Then, Duff's Capital was 2500. Gordon's 1500. 4000 : 709.55 : : 2500 : 443.47, Duff's share of the gain. Then, 4000 : 709.55 : : 1500 : 266.08, Gordon's do. do. 2. When each partner's share of the gain, thus found, is placed to the debit of this account, it must exactly close it. BALANCE ACCOUNT. 1887. Mar. 31 Cash, fol. Mdse., E. Pryor, S. Gaynor, _^^ ^^..^-^ »ao.55 1 1 1 3 2100 3217 2 91 ! 05 50 55 ! 1867. Mar. 31 T. P. Cope & Sons, fol. Wm. Hay, James Carter, James Day, eos.so P. Duff, for net capital, W. Gordon, // 1 2 3 1 1 504 200 36 68 i 2884 1717 50 47 58 5410 5410 155 } 1 —r P. Duff W. Gordon •. T. P. Cope & Sons W. Hay Cash Mdse. . Robert Martin . Jas. Carter . R. Evans . Robt. Butler I Andrew Bell i James Day . \ Expense Account ! Exchange Account I Edward Pryor . Samuel Gaynor Profit & Loss fol. 2 See Balance accounts, pp. 17 and 35. This account is made up from the Ledger, in all respects as in individual business; and the difference between the amount of the effects, and the debits owing by the firm, is the net joint CHoital. The proportion of that capital which belongs to each partner, can only be known from his account. When each partner's balance is transferred, it must, as you see above, close this account : neither more nor less. If any of the partners overdraw their capital, then, of course, the balance they owe the firm, like a balance due from any other individual, is part of the effects and comes to the Dr. side of this account. 1. The above Proof or Trial sheet must embrace all amounts that have been posted since the last balance — closed accounts as well as open ones. See Cope & Sons' account above. By this means we have not only proof by equal debits and credits, but we have the sum total of the postings to the Ledger agreeing in amount with the sum total of the Day-Book trans- actions. Compare the above with the Day-Book footings, p. 128. This is the strongest and most conclusive proof that our Day-Book is completely posted. If one dollar or one cent be omitted, it is evident that this Trial must fall just that amount short of the Day-Book foot- ing. On the contrary, if any entry by any means gets twice posted, the Trial will certainly show it by footing up just the amount of the error more than the Day-Book. 2. In our next set our students will find an illustration of the monthly trial, also a full explanation of the mode of detecting and correcting errors. 3. If the business had continued in this Ledger, you must recollect, that in re-openinsr. the amounts composing the old Balance account do not pass through the Day-Book, ibr this reason, when you take your next trial, it will foot just the amount of this Balance account more than the Day-Book. Therefore at each succeeding trial after the first, until the re- opening entries are passed again through the Day-Book, deduct the amount of the previous Balance from the footing- of the trial sheet, and the remainder must agree with the footing of the Day-Book as above. SUSPENDED LIST. 186T. 1 ii Mar. 31 Robert Martin, fol. 2 Robert Evans, i 20 66 25 86 25 1867. ' i Mar. 31 Profit & Loss, fol. See Note 7, p. 129, and Note 6, p. 128. This account, as you perceive above, is closed into Profit & Loss. It will be seen by these accounts — p. 132 — that when a payment is received upon it, the account must be re-opened by bringing the suspended balance down. I wish the learner to observe that when the business is transferred to new books, as in this case, there is no occasion for closing the suspended accounts. Find the balances as directed — Note 3, p. 113 — and transfer them to the list and leave the accounts standing open until paid. But I have closed them, because, by so doing, it is easier to convey the idea of what was done with the balances, and more particularly when and how they were settled after the Ledger was closed, and all other accounts transferred. After what has been stated in Note 3, p. 113, it will be seen that it is never necessary to close an account for the mere pur- pose of finding its balance to make up any sheet or list. 134 135 ' ■f^l SET II.— PART II. Opening with a transfer of the contents of the last Ledger. — Exhibiting ALSO the formation OF A NeW FiRM BY THE ADMISSION OF A NEW PARTNER. — Illustrating thl use of all the Auxiliaries in the new process for detecting errors and PROVING THE LEDGER. 1. We have shown in the last set our method of proving the Books, applied to the Day- Book and Ledger only. That set, as already stated, is only intended for a retail business. As the business extends, the Auxiliaries and the Journal become necessary. I may however remark, that the Journal would seldom be required in any ordinary business, if all persons about the establishment were instructed in keeping a Day-Book upon this principle. ^ Where this is not done, a common Day-Book must be kept, from whence the book-keeper journal- izes the entries. 2. Our purpose is now to show, that our method of detecting errors and proving the books. is applicable with the use of as few or as many of the Auxiliaries as the book-keeper may consider it necessary to keep. 3. By a slight alteration in the form of the Invoice Book, and adding up and forwarding the amounts from page to page, it will be seen that this book, the merchandise debit column in the Journal, and the debit side of the merchandise account in the Ledger, will correct each other; and by attending to the footings of this book and the Journal, an error cannot pass unobserved for a single page. It is to be observed, however, that all entries affecting the debit side of the merchandise account, must originate upon this book. • 4. The next question that presents itself is, how are invoices of consignments to be dis- posed of? We exemplify two entries of this kind: one on April 30, p. 137, and one on June 4, p. 138. By these entries it will be seen that all such invoices, and invoices on ac- count of ourselves and others in company, can be entered upon this book, without disturbing the entries of our own invoices, the amounts of which are extended into the right-hand column to be footed and forwarded as before directed. 5. By a similar arrangement it will be seen that we have made our Sales Book, the Mer- chandise credit column in the Journal, and the credit side of the merchandise account in the Ledger, agree with each other. By the cpmmon mode of keeping the Cash Book, its balance and that of the cash account in the Ledger must agree, otherwise there must be error in one or the other — perhaps in both. This, however, furnishes no clue to where the error exists. From our arrangement of this Book in connection with the cash columns in the Journal, it will be seen that you can always in a few minutes point out the very page and generally the side of the Book upon which the error exists. 6. The Bill Books both control their representatives in the Ledger upon the principles explained in Note 4, p. 48. The Commission Sales Book governs the Consignment Sales acct. in the Ledger in a similar manner. And the same harmony is maintained between the Check Book and the Bank Account. 7. The following Invoice Book opens with an inventory of the Merchandise brought into the new firm by the old partners, as will be seen by the Journal ; this Merchandise is carried to their credit. The Day-Book and Cash-Book show their other effects. 136 INVENTOBY of Merchandise in Store belonging to DUrr & GORDON, April 1st. 1867. 1 D.B.I. ^ 6 pieces, 112?, 115?, 116, 112, 118, 117 = 691 yds. Ingrain Carpeting . . . • @ ^1. 4 // Blk.Broadcloth,20?,21!,20!,19?=82yds. 10. 2 ^ Blk. Oros de Naples, 60, 60 = 120 yds. 1. 12 " Blk. Bombazine 20 w Colored Florence 20 // Blk. Crape de Paris . 4 // Black Satin Vestings 2 // Green Broad Cloth . 100 If Prints 20 tf Furniture 1 // do. 1510 yds. 120 yds. 41 vds. 15. 30 cts. 5. 2. 6. 3. 3.25 10. Boston, April 6th, 1867. D. B. 1 Messrs. Duff, Gordon & Co. Bo't of Wm. Hay. D. G. 500 ps. Merrimac Prints . . . . @ $3. &Co. ;200 // Furniture 4. 80 // Rolled Jaconets 1-25 QO tf If ff 1-50 Packing cases ...... Paid Cash, Freight, and Cartage II D.B.I. 691 820 120 180 453 100 240 246 300 65 2 Mdse. Dr. 50 3217 150 New York, April 10th, 1867. Messrs. Duff, Gorpon & Co. Bo't of A. Stuart & Co. 1 ps. Super Wool Black Cloth . . 22? @ $S. 1 // Double Mill'd Cassimere ... 24 1.50 — - 20. =============== D.B.I. No. 4. // 6. Messrs. Duff, Gordon & Co. Bo't of A. Stuart & Co. 1 ps., 60 yds., Blk. Gros de Naples . . @ 75 cts. 1 // 60 If II Bombazine .... 50 30. Invoice of 40 pieces Brussels Carpeting, consigned to Duff, Gordon & Co., for sale by order and for account of A. Stuart & Co. 10 ps., 360 yds. . * @ $1. 10 // 360 // 1.25 « 8. 1 10 If 360 // . . . Ingrain . . 1.50 u 10. 10 /' 360 // , . . do. . . 2. New York, April 30th, 1867. May 1. ===== 1500 800 100 90 4140 2494 i 4 > llle./ 180 36 216 45 30 75 D B. 2. Messrs. Duff, Gordon & Co. Bo't of Edward Pryor. 4 yds. Black Silk Velvet @ $4. 6 '/ Fine Black Broadcloth . . . @ $8. Forwarded 360 450 540 720 2070 16 48 64 6078 50 137 { a 1 il ; { May 1, 1867. j Bro't forward Messrs. Duff, Gordon & Co. D- B.2. Bo't of Samuel Gaynor. 4 ps., 240 yds., Black Gros de Naples . . @$1. 1 ps. Green Crape New York, May 1st, 1867. • 23. ' D.B.3. Philadelphia, May 10th, 1867. Messrs. Duff, Gordon & Co. Bo't of T. P. Cope & Sons. 500 bbls. Superfine Flour . . . . @ $4. 50 // Herring 6. June 4. F. H. Invoice of Broadcloths, consigned to Duff, Gordon & Co. for sale by order and for account of Francis Hardman 6 ps. Super Blue, 19?, 20?. 21, 19, 18, 22 = 120 yds., @ $8. 7 // Wool Black, 17, 23, 18, 22, 19, 21, 20 = 140 // @ 9. Packing case Boston, June 1st, 1867. D. B. 4. Taken to our account @ 3 months, 3 pieces A. Stuart & Co.'s Carpeting, viz. 2 pieces 72 yds. @ $1.50, and 1 piece 36 yds. @ §2 Messrs. Duff, Gordon & Co. D B.4. Bo't of S. Henry & Co. il2 Cashmere Shawls @ $50. 12 // » 30. 12 » I, 10. 12 n Lamb's Wool Plaid do. . . 3. Rec'd Payment, New York, June 4th. 1867. S. Henry & Co. ====== 10. D.B.5. D.B.5. Duff, Gordon & Co. Bo't of Wm. Hay. 24 pr. Super Bath Blankets @$7. Duff, Gordon & Co. Bo't of Thomas Freeman. 12 pr. Super 10-4 Rose Blankets ===== 20. == @$6. Duff, Gordon & Co. D. B. 5. Bo't of James Haven. 14 pieces Satin Ribbon i It @$2. I Duff, Gordon & Co. D. B. 5. Bo't of A. Stuart & Co. 500 ps. Merrimac Prints . . , . @ $2. Rec'd payment By note @ 3 months, New York, June 20th, 1867. A. Stuart & Co. June 30, Total purchases to date . 240 25 6078 50 2000 300 960 1260 2 265 2300 2222 600 360 120 .36 180 1116 168 72 28 1000 J 1207 50 Inventory of Mdse. on hand June 30, 1867. 4 ps., 320 yds., Ingrain Carpeting 700 // Merrimac Prints 400 barrels S. F. Flour . 300 ps. Furniture Prints 400 // // // . . 10 Cashmere Shawls 8 // // . . 50 barrels Herring 10 ps. 200 yds., Broadcloth 4 6 4 6 230 360 82 Blk. Gros de Naples Fancy // Broadcloth . @31. 4. . 4. 4. . 2. 50. . 30. 6. . 3. 1. . 1. le. Crape de Paris . 5. Enter'd Ledger 2. CONCLUDING REMARKS. 1. It is not necessary to pass the Inventory of goods on hand through the books, unless at the transfer to new books, although there are no objections to doing so in the common mode of keeping books ; but upon this plan, for the reasons named in note 3, p. 135, it would cause some trouble with the next trial sheet. 2. In a business where the invoices are so long, that copying them entire becomes incon- venient, an abstract of them will be found sufl&cient for this book ; but we must again remind our student that he must see this book made complete. Every entry affecting the debit side of his merchandise account must originate here ; but when this is done, this book becomes a direct and perfect check upon the Dr. side of the merchandise account in the Ledger. Nothing so completely establishes : lie correctness of this part of the book-keeper's work as the agreement of this book with its representative in the Ledger ; and this is done on any day or at any hour you choose to compare its footing with those of the Journal : you are not obliged to wait until the time of making out the trial sheet. — Compare the footing of the last page with that of the debit merchandise column on the Journal, p. 161. 3. On the other hand, as the Invoice Book is usually kept, it affords no protection what- ever against error in the Ledger. It is, indeed, of no practical use, except as a memorandum of the prices of the goods. 4. When this book is Tiept in this form, the work of posting can be shortened by another process. Post all the personal accounts direct from here to the Ledger, post marking them as usual ; and at last post the merchandise debit from the end of the month or the end of the quarter, as may be decided upon, inserting the post mark on the same line with the sum. We shall show hereafter — p. 142 — that the Sales Book can be posted in the same way, and thus do away with the merchandise columns in the Journal. 5. This is perhaps the shortest and simplest of all methods of posting; but there is not the same security against errors, nor the same facility in detecting them, that we have in the other arrangement : besides, there are some kinds of business to which it will not be appli- cable, whereas the arrangement we have given is applicable to any kind of business whatever 139 138 5' 1 I ^ THE SALES BOOK. The object for keeping this book is to avoid entering long invoices of sales upon the Day Book. It is generally ruled with one set of money columns ; but for our purpose two sets are required. By means of these two sets of columns, it will be seen that all entries, usually made on a Sales Book, can be made upon this, in the common form, and with very little trouble, All amounts affecting the Merchandise accountareseparated, footed, and forwarded like the credit Merchandise column on the Journal ; while all the particulars of the invoice of the sale are stated and exhibited in the inner column, as usual. It is so simple that any further explanation seems unnecessary. The first entry on April 30, and the last one on May 23, exemplify the management of entries when only a part of the amount is to go to the credit of merchandise. 1* NEW YORK, Saturday, April 10, 1867. D.B. Sold Robert Butler (Buffalo), @ 3 mos., 50 pieces Merrimac Prints . 10 w Rolled Jaconets 1 // 22? Fine Wool Black Broadcloth 30 '/ Furniture Prints Packing case U. 10. 5. D.B.I. Edward Pryorto Mdse. for 2 yds. fine Brown Cloth @ $8. If D.B.I. D.B. 2. D.B. 2. Sold Richard Howe for Cash 70 pieces Prints 5 // Furniture 200 20 225 150 I l!50 5. Packing box Tues. 20. * Paid E. Pryor's order to J. Burk in Mdse. // Sold Samuel Gay nor on his order favor of C. Rhodes, 1 piece 20 yds. Super Black Cloth . . @ 11. 1 // 118 yds. Ingrain Carpet . . 1 280 25 50 220 177 D.B. 2. Sold James Camp for Cash, 2 pieces 19.', 20.'=40 yds. Super Blue Broadcloth @ 11. 1 // 60 yds. Black Gros de Nap. . . 1. 10 pair Bath Blankets . . . . .12. 60 pieces English Prints .... 5. 5 per cent, for Cash Friday 30 75 440 60 120 300 920 46 D.B. 2. @ 4.50, 8108. 1 30. Sold Joel Post for Cash, 24 yds. Purple Silk Velvet . 30 n Crimson and Gold Fringe 4 ps. 144 yds. A. Stewart & Co.'s Carpets 2.50 Merchandise forward .... 138 360 498 1. There is no necessity to specify the articles you have sold in payment for this order. Your possession of it is evidence of your having paid it. 2. When you furnish merchandise upon an open order — that is, an order permitting the bearer to draw any amount he desires— it is necessary to specify what you sel l upon it, a nd t o furniah the drawer of the order with a bill . 140 596 16 50 305 75 45 397 874 138 2372 25 Saturday, May 1, 1867. Bro't forward D.B. 2. D. B. 2. Sold P. Duff on account, 4 yds. best Black Cloth . 1 yd. Black Silk Velvet . If Sold C. Spencer on his note @ 20 days, , 40 ps. Merrimac Prints . 10 // Furniture 1 // 20? Black Cloth . Packing case . @ S8. . @ $3. // 4. w 6. D. B. 2. D. B. 2. Sold W. Gordon on account, 16 yds. Fig'd Gros de Naples 1 Silk Cravat . It Sold James Carter on account, 1 pr. Black Silk Gloves 12 yds. Linen . If @ 31.25 @ 75c. D. B. 2. Sold Robert Banks on account, 1 yd. Fancy Velvet, 31.50. 2? Fancy Cassimere, @ 82. — If — — ^ D. B. 3. Received Cash for sales of Mdse. this day = Monday, 23. ==^ n. B. 3. Invoice of Mdse. shipped by the Brig "Tribune," Truck, Master, by order and for account and risk of Messrs. T. P. Cope & Sons, Philadelphia. 40 bbls. No. 1 Mackerel . . . . @ $6. 300 boxes Smoked Herring . . . . 1. CHARGES. Commission 5 per cent, on $540 Cash paid for cooperage, cartage, &c. . E. E. New York, May 23, 1867. = Tuesday, 31. = S27. '' 12. D. B. 4. Sold William Evans, payable in 10 days, 4 ps. Furniture Prints 2 1/ If // . . . @83. // 4. // D. B. 4. D. B. 4. D. B. 3. D. B 4. Sold J. Reed, payable next week, 1 ps. Super Black Cloth If Sold Joel Post, payable in 10 days, 2 yds. Super Blue Broadcloth 22?, @ 38. . @39. Received Cash for sales 23d, $180. 31st, 386 . IT Sold R. Butler wrappers for a bale A. Stuart & Co.'s Carpet Merchandise forwarded 141 240 300 2 8" 284 50 21 .50 10 25 6 50 160 ' 540 540 i 1 39 579 1' 1 20 182 18 266 I 1 50 3919 50 ^ 8 Saturday, June 4, 1867. 1 Bro't forward D. B. 4. Sold James Reed on account, i 1 ps., 36 yds., Brussels Carpet . 1 Silk Shawl .... @ 82.25 81 15 D. B. 4. Sold Wm. Hay on account 1 Cashmere Shawl . D. B. 4. Sold Robert Parker, payable 1st July — 1 Cashmere Shawl D. B. 4. Sold George Draper, on his note, 6 Cashmere Shawls . 6 '/ // 6 Silk If ======== 10. . @ $55. // 30. . // 20., 830 180 120 3919 96 60 60 D. B. 5. Sold R. Banks on account, 6 pr. 10-4 Super Bath Blankets 6 ff 10-4 // Rose // . @310. // 8. D. B. 5. Sold Edward Pryor on account, 3 pr. 10-4 Super Bath Blankets . 3 // 10-4 If Rose w 1 ps., 21? yds., Blk. Broadcloth . 20. = . @sio. // 8. . // 6. 60 48 80 24 129 630 108 D. B. 5. Sold William Garden for Cash deposited, 500 ps. Merrimac Prints Total sales to date @ $2.50 183 1250 6306' 50 50 CONCLUDING REMARKS. 1. Compare the above footing with that of the credit merchandise column in the Journal, p. 161, and every person at all acquainted with the subject must be convinced that there cannot be a more conclusive evidence of .the correctness of this part of the work. 2. When the Sales Book is kept in this lorm it admits of being posted, as we have directed at the Invoice Book, note 4, p. 139 ; post the personal accounts as usual, and the merchandise in one sum from the foot of the account above. 3. If no Commission Sales Book is kept, the sales on consignment can be short extended as in first entry Apr. 30, p. 140. 4. It is scarcely necessary to observe that the way the Sales Book is generally kept, it affords no means whatever of proving its contents to be all transferred or posted; and there is the strongest reason to believe that errors, deeply affecting the interest of the proprietors, jfrequently pass for ever undiscovered in this book. 5. A few years ago a Western merchant called at the office of an extensive wholesale dealer in Philadelphia to pay his account. On referring to the Ledger it was found bal- anced. Upon the merchant representing that he had a subsequent invoice from them, the Sales Book was searched, and an invoice of about $1300 found marked off that book as if journalized, but no entry appeared upon the Journal. Now, in this case, it is evident that the discovery of this omission was purely accidental, and it is equally certain, that, by our plan, it would have been undoubtedly discovered before we had journalized another page. 142 )(kk "n :5 P ^. i-r. 03 ^ tri- P o p - 137 1855 to 1-' Oi to n CD oo 1867. 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Apr. Dr. 1 Sundries P. Duff (S. A.) * P. Duff .W.Gordon (S. A.) I J. Carter (S. A.) 10, Merchandise i R. Butler 20 1 Merchandise 30 Commission Sales Merchandise Baknce "^ old Ledger, fol. 4. Rec'd balance of his capital Rec'd on acct. Rec'd balance due on his capital Rec'd on acct of his capital Rec'd from Howe Rec'd on acct. Rec'd of Camp Rec'd for Stuart's carpets Rec'd of J. Post 7716.78 4&15 May I 1 S. Gaynor^ Merchandise 23 B. Receivable ' Merchandise Duff & Gordon 31 Merchandise S. Gavnor Duff & Gordon Balance in hand bro't down Rec'd on acct. Rec'd for sales this day Rec'd for Spencer's Note Rec'd for sales this day Rec'd Martin's acct. Ledger A. p. Rec'd for Sales this day Rec'd on acct. Rec'd of R. Evans, Ledger A. p. 2 873X5 864.^ June ' 4 10 20 Balance in hand bro't do-v«m Joel Post Rec'd in full James Reed Rec'd on acct. Commission Sales Rec'd of Jennings for cloths R. Butler Rec'd '^ mail Commission Sales Rec'd of McKenzie for cloths Duff & Gordon Rec'd of R. Evans in full Profit & Loss Rec'd gain on auction purchase 3158.90 2939. 219.90 Total amt. received to date 2100105 115 53 500 1282 42 2000 305 100 874 360 138 75 7775 75 48 50 160 284 180 20 86 20 25 15 50 87365 9 65 18 100 1200 100 1540 41 150 25 7775 75 825 50 3149 25 11750 50 1. In business the Cash Book ought generally to be balanced every night; never at longer periods than a week. For obvious reasons, we could not, in a work like this, introduce a sufficient number of entries to do so : we have, therefore, only balanced it monthly. 2. The manner of making the entries upon this book, is in all respects the same as note 9. p. 53. The right hand column is used for carrying forward the sums total of all money received and paid, thereby enabling us to keep a constant check upon the Journal—Com- pare the footings above, June 30, with those of the Journal, p. 161. And it will facilitate the detection of error to balance this book when the Journal is footed at the bottom of any page, where you can compare the cash columns together. 3. Observe, this Cash Book is always balanced in the inner columns, until the period of 144 ACCOUNT. Cl 1 1867. Apr. 1 City Bank Paid in deposit 5800 Store Expenses Pd. for fuel 3 James Day Pd. him on acct. 8 10 Mdse. R. Banks • P. Duff Pd. freight of W. Hay's Invoice Pd. him on acct. of store expenses Pd. him on acct. 11 20 30 60 20 B. Receivable Pd. R. Parker net proceeds of note 979 50 30 Commission Sales II H P. Duff Pd. cartage, &c., on Stuart's Carpets Pd. freight on # » Pd. him on acct. 1 24 60 50 - W. Gordon James Carter Pd. him Pd. him 25 15 City Bank Pd, in deposit Balance in hand carried down 750 48 15 75 , 7727 60 7775 May 1 R. Banks Expense acct. James Day W. Gordon P. Duff Pd. him on acct. Pd. a quarter's rent Pd. him on acct. // » II II ~ 30 60 12 10 5 23 T. P. Cope & Sons James Day "W. Gordon Pd. Charges '^ " Tribune" Pd. him ten dollars, James Day* Pd. him on acct. 12 10 40 31 Profit & Loss E. Pryor R. Banks W. Gordon For counterfeit money Pd. him on loan Pd. him on acct. II II 20 200 10 5 t City Bank Pd. in deposit 450 864 Balance in hand carried down 4 Pd. him on acct 873 65 5l June James Day • Commission Sales City Bank Duty, &c., on Hardman's goods In deposit 748 100 1 10 II II Commission Sales James Day II Pd. F. Hardman in full, net proceeds In full On acct. 100 1855 13 20 R. Banks 90 .. James Haven In full »»• 28 29391 • ■ Total payments to date 11530 60 • Balance .:, i:....-i ..,::.... u^wn - _- J >; i 11750 50 — posting the Cash from the Journal ; it is then closed in the outer column ; but the balance is brought down or forward in the inner column. The balance brought down must not be extended as money received again. This was done before the last balance. It must, how- ever, be added in in striking the balance. 4. As in the Ledger, we have dropped the useless appendages of to and by in this booL 5. By having a folio column next the date or the money column the entries may all be posted direct from this book to the Ledger, and the sum total of money received and paid is posted in one sum from the bottom, as from the Journal. * Day's signature — See Note 7, page 76. K 145 I li' CHECK BOOK. 1. In this form we follow our favorite theory of making this book prove the correctness of its representative in the Ledger. Our column of deposits, and that of checks, is pre- served unbroken, and carried forward from page to page, corresponding with the debit and credit side of the Bank account in the Ledger — compare and see p. 168 — until we get our Bank pass-book balanced ; then we balance both our Check Book and Bank account in the Ledger, bringing the balances down as usual. The detection of errors in this form is so simple, and so speedy, that I cannot think it necessary to offer any directions. 2. I must insist, however, upon your drawing and numbering all your checks upon your own book. Any deviation from this practice will, sooner or later, give trouble. Date. Depo- sit. Date. To WHOM PAID. Apr. May 7041. 1703.65 4337.35 Bro't down May June 7329.30 3051.20 427&10 1 5800 130 750 1 400 13 91 7041 - - 1887. 2. Check. 1 Apr. 20 for 2 notes 1 703 65 No. 1. New York, Apr. 20, 1867. The Cashier op the City Bank, New York, pay to myself, or hearer, Seven Hun- dred and three Dollars y^'^. $703. /^5y. P. Duff. May 23 W. Hav 2703.65 2 2000 7041 4337 35 31 450 { 400 4 200 100 10 491 95 100 20 1250 May 31 Cope k Son 3 500 I, li 31 W. Hay 4 200 II II Jane 4 Stuart's n'e 5 291 i 4 eg. Henry 6 1060 20 4 Cope A Son 7 XOOO No. . 3051.20 Eul. New York, ,186 . Bro't down 7329 30 4278 10 27S 10 — - pay to 7329 30 $ The Cashier op the City Bank^ New York, or bearer Dollars j-^. nnr I. ll 'i 3. When a deposit is made it must be entered in your pass-book, at the time it is made ; all writing in this book must be done by the bank officers. The New York city banks col- lect notes and bills in the city, free of charge ; but, if protested for non-payment, the owner must pay the expense of it. 4. Three days' grace are allowed upon all notes, for which discount is also taken : thus, a not« having 60 days to run, 63 days' discount is deducted. — See note 2, p. 45. — In some of the States they charge 64 days' interest in such cases, charging interest both for the day of date and day of payment. 5. You can at any time show the balance in the margin with your pencil, as is shown by the small marginal figures above ; but the deposit and check columns must be carried forward unbroken until your pass-book is balanced. 6. To prevent fraud, when dealing with strangers, checks are sometimes made payable to order : the bank will not then pay them until the holder endorses them and identifies him- self the person named in the check. EXPENSE BOOK. 1. This book is kept for the purpose of enabling the Book-keeper to avoid passing all minute items of expense separately through the books. One of the junior clerks, say R. Banks, is paid a sum of money sufficient to defray the expenses for a few weeks. ^ The Book- keeper debits Banks, and credits his Cash account for this money when placed in Banks' hands. The Cash account is, by this means, kept free from derangement ; and Banks should be provided with a separate drawer to keep this money in ; and as he pays it out for ex- penses he must enter a precise statement of all the items upon this book, adding it up and carrying forward the amount to the end of the month, or to the time when it is proposed to enter the amount in the books. After examining the amounts and additions, the Book- keeper debits Expense and credits Banks for the amount, at the same time balancing this book as below. — See Day-Book, note 3, p. 155. Afterwards this book re-commences in all respects as before, Banks receiving an additional sum from the Cashier when the amount in his hands is expended. 2. If it be preferred, however, when the amount is paid into Banks' hands, the Book- keeper may make Expense Account Dr. To Cash at once, without passing it into Banks' account. The amount is then placed on the Cr. side of this book, and the details of ex- penditure on the Dr. side, in all respects as before, until the money is expended, when the book should be balanced, and re-commence anew as before. Either of these methods will greatly abridge the expense account in any business. Apr. 10 12 14 15 For Cash paid postages cartage of goods coach-hire laborers « 2 rms. wrapping-paper 2 50 , 20 j 25 30 May 1 10 \i 15 n 25 1/ June 5 10 n n 20 II 1867. 41b twine for mending desk-stool ream letter-paper postage to N. Orleans cartage of goods Box rent at Post Office printing 500 cards ' painting a new sign blank book wafers sealing-wax 6 mos. sub. Tribune 1 year n Sun Taxes postage for R. Butler II W. Hay laborers omnibus advertising postages wafers ink, sand, &c. 2 50 60 3 50 5 6' 20 &0 3 3 4 10 20 50 10 1 10 10 22 June 30 By amount to R. Banks Cr. 45 15 45 U(\ 147 n Ml as (9 O O O j T-lir Tt< co- os -' QO Oi -:- O 1 « c3 0) .22 7j • 1 co;^ CO oo 1867. 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CS p •»3 © © «3 C4-1 O OQ © '© 03 d o O OQ CO © OQ •T3 d c3 © X * X O rj O 03 g cj 5? g^d --O0Q_ A QQ d © i: a d S 2 d Ph ;: rH (M CO "^ »0 b «S -« .ti l8 148 ^ O ^<1 ^d ©q o o o 1^ j ^^- •a 3 e. CO g >» CS s I a 1-H CO == 8 I o O ^ o a © S -J *- OD P o o O =!3 «-> *-• o. e3 Ph 3 .0 03 00 © '© d C o o ^1 © THE DAY BOOK -SET II. , PART II. INTRODUCTORY REMARKS. 1. This set opens with the formation of a new firm, by the admission of James Carter as a partner. It will be seen that the contents of the old Ledger form the opening entries of these Books. — Compare Balance account, p. 134, with the first entry in the following Day Book, also with the first entry in the Invoice Book, p. 137, and the first debit entry Cash Book, p. 144. It is arranged that each partner shall contribute $3000 capital; the two old members bring in the effects of their former business as so much of their capital, the new firm at the same time assuming their liabilities. 2. The usual manner of opening and conducting partners* accounts is to credit each for what capital he pays in at the time the books are opened and for each succeeding payment afterwards. I would, however, recommend that two accounts be opened with each partner, a PRIVATE ACCOUNT and a stock account. — See the partners' private accounts, p. 165, and their stock accounts, p. 173. The stock account to be credited for the whole amount of capital to he paid in. The private accounts are to be debited for any amount that is de- ficient of the stock, and for what they withdraw from the firm, and credited for v, hat they pay in of the deficient stock, and for what they may temporarily pay over their capital. — See Duff"'s and Carter's accounts, p. 165. 3. By this arrangement, the stock account of each partner remains undisturbed until the time of closing the books, and if any adjustment of interest has to take place it will be upon the private account. 4. All judicious practical merchants are aware of the importance of avoiding all needless exposure of their affairs. This, in some establishments, is unavoidable where the partners' accounts and the results of the business are all exhibited on the public Ledger. In order to avoid this inconvenience I have, in this set, exemplified the Private Ledger. 5. Keeping this book entails no additional trouble upon the book-keeper; there are no entries to make in it, except at the opening and closing of the Books. It opens — see p. 173 — with nothing but the partners' stock accounts; the Profit & Loss, Balance and Sus- pended list are opened at the time of closing. By referring to these accounts — p. 174 — it will be seen that the results of the business can only be known to those who have access to this book; it is impossible to find out any thing about it from the public Ledger alone. 6. In business it will also be advisable to place the opening entry of the business upon a Private Journal, from whence it is posted direct to the Ledger without appearing upon the public Journal. This will create no impediment to our system of proof, for the book- keeper has only to obtain the footing of this private Journal, and add it to that of the public Day Book and Journal, and the amount must agree with that of the Trial Sheet. It is deemed unnecessary to give an exemplification of this private Journal here. It stands connected with the public Journal upon the same principle as the private Ledger does with the public one. Indeed the readiest way to comprehend them is to consider the two books as one. 7. The following Day Book is made up partly of original entries and partly by transfers from the old Ledger and the Auxiliaries. I shall show hereafter that the Journal may be composed direct from the Auxiliaries, without passing the entries through the Day Book, but for reasons before given — p. 62 — I do not consider it advisable to attempt that process, until after the student is entirely master of the whole subject. The mode of procedure in transferring the Auxiliaries to the Day Book is not, however, unlike that of journalizing them; it forms a useful preparatory exorcise for that operation. 149 h SET II.— DOUBLE ENTRY BOOK-KEEPING. 1. It does not matter which of your Auxiliaries you transfer first: we shall commence with the Invoice Book, p. 137. We commence on the 10th April (the previous entry being already transferred in the opening entry), and transfer the two entries under that date to the Day Book — compare and see. Then turn to the Sales Book, p. 140, and do the same with three entries we find under that date, taking care to mark them off these books ; but not until they are actually entered in the Day Book — Note 4, p. 142; next, look into the Commission Sales Book, but it contains no entries on this day. Go on to the Cash Book — p. 144 — aiid you find two debits and three credits; pass them into the Day Book and mark them off as directed — Note 7, p. 53. The entries of the Check Book are generally made on the Day Book when they occur. The contents of the Expense Book are not usually transferred until the end of the quarter or the end of the month, as may be directed. Bills Receivable — p. 148 — has one transfer, and Bills Payable two upon this date. After they are transferred mark them off as directed in the Cash Book. This completes the transfer of that day's business from the Auxiliaries : you now re-commence and go over them all in the same way again for the next day's business, and so on until the contents are all transferred. Observe, you cannot transfer several dates from any one book in one entry, because this throws the dates in confusion in the Ledger. 2. Our Day Book is footed and forwarded from page to page, and if all journalized cor- rectly, must always exactly agree with that book. We generally only pencil the footings of the Day Book in practice : and you ought to bring forward these footings as fast as you journalize, in order to get the earliest notice of error if it gets in. You may foot your Day Book column any where on the page, when you desire to find the amount corresponding with the foot of the page on the Journal. 3. In making compound entries upon this Day Book, you must guard against the practice of extending both debits and credits, as many persons do. For instance, in the first entry on the opposite page, if we had full extended the $5410.55 a second time, it would have caused a disagreement between the Day Book and Journal at once, of that amount. 4. In order to have our books all agree in amount, it is necessary that all entries relative to the balancing of accounts at the time of settlement should originate upon this book. — See first entry, May 10, p. 153. 5. We have dropped the useless practice of perpetually writing the name of our place of business at the head of every page of our Day Book and Journal. ' It is proper and .perhaps necessary to do so on the first page of any book, but the repetition of it afterwards is entirely useless. But it will often be found useful to insert the day of the week with the day of the month. 6. I would advise the student not to be in too much haste to write these exercises, but first take a survey of the operations recorded by tracing them from one book to another up to the Ledger: thus mentally examining the whole subject before he attempts the mechani- cal execution of it. — See Note 4, p. 27. 7. I need hardly observe that if the preceding Sales Book be dispensed with then full particulars of every sale must appear upon the Day Book. 150 NEW YORK, Thursday, April 1, 1867. P. Duff, W. Gordon, and J. Carter have this day entered into partnership; it is agreed that each partner shall furnish a capital of . 3000. Duff and Gordon bring in as a part of their capital, the effects of their late firm, and the new firm assumes their liabilities '^ their Balance acct. Ledger A. fol. 4, viz. : *Cash in hand . . . . "^ Ledger A. fol. 1. Merchandise Edward Pryor owes . S. Gay nor Balances due to T. P. Cope & Sons . Wm. Hay James Carter . James Day P. Duff for his net capital W. Gordon do. do. Ledger A 1. 3. 3. fol. 1. 1. 2. 3. 1. 1. 2100.05 3217.50 2. 91. 504. 200. 36.50 68. 2884.47 1717.58 5410.55 u Rec'd the following sums in cash "^ Cash Book 1. From P. Duff for Balance due on his capital H do. on his private account . // W. Gordon for Balance due on his capital . u James Carter on account of his capital If C. B. 1. 115.53 500. 1282.42 2000. Paid the following sums To the City Bank in deposit For Fuel .... To James Day on account . 5800. 3. 8. •James Carter's ^ joint capital is . . . . $3000. Balance due him by Duff and Gordon as above is 36.50. Cash received as above .... 2000. 2036.50 Balance due on his capital to debit of his private account . Saturday, Id .Bought Mdse. of Wm. Hay @ 3 mos. "^ Invoice Book 1. Paid cash for freight of same 2494.40 11.60 Bought of A. Stuart & Co., at 30 days, Mdse. "^ Invoice Book, p. 1. Sold R. Butler on account, @ 3 months, Mdse. "^ Sales Book, p. 1 Sold E. Pryor on acct. Mdse. "^ S. B. 1. Sold R. Howe for cash do. do. . . 596.50 16. 305.75 Received cash of R. Butler on acct. n Paid cash to R. Banks on acct. of Expenses // do. to P. Duff on account 20. 30. Forward 1. This entry embraces both sides of the Balance account in the last Ledger.— See p. 134. The pupil will insert the pages of his own Ledger — not ours. 2. As the journalizing proceeds, mark the entries oflf the Day Book as directed.— Note 7, p. 28. The pages of the Journal are not necessary : the dates are always a BuflScient reference. 3. See Note 2, p. 149. 151 ~ 5410 55 I 3897 95 5811 963 50 2506 I 216 . I 2 n Saturday, AprU 10, 1867. Bro't over Received Samuel Gaynor's note No. 1, @ 30 days, for bal. of acct. AccM Wm. Hay's draft No. 1 on us, @ 10 days, for bal. due him 1st inst. Acc'd T. P. Cope & Sons' draft No. 2 on us, @ 10 days, for bal. due them Gave James Day our order on E. Pryor, payable in Merchandise, for Tuesday, 20. Paid our acceptance No. 1 to Wm. Hay, due 23d inst., $200, less disct. 10 cts $199.90 do. do. No. 2 to T. P. Cope, due 23d inst., $504, less disct. 25 cts 503.75 Paid by check on City Bank .... 703.65 Amount of discount is .35 Paid E. Pryor's order in favor of J. Burk in Mdse. from store Paid S. Gaynor's order in favor of C. Rhodes in Mdse. from store Cash to Mdse. received for sale to J. Camp . Mdse., Dr. to A. Stuart & Co. for Invoice of Silks, &c. Discounted for R. Parker his note No. 2, @ 4 mos., for $1000. Paid him in cash, net proceeds 43^^ months' discount is . Friday, 30. 979.50 20.50 Paid cash freight and cartage of A. Stuart & Co.'s goods // P. Duff on acct. ...... tf Wm. Gordon // James Carter ... ... If the City Bank in deposit n 25.50 60. 25. 15. 750. Received cash for sale of A. Stuart & Co.'s goods, C. S. B. 1. Mdse f S. B. 1 Saturday, May 1( // 360. 138. 'Rec'd-on account of our James Carter, cash deposited in City Bank. Net proceeds of his Bill on Gibson, Bright & Co. . . . $300. Interest due him on Hall's mortgaore // Bought Mdse. of Edward Pryor, I. B. 1. do. of Sam'l Gaynor, do. 2. // Sold Mdse. ^ Sales Book 2. To P. Duff on account To C. Spenser on his note No. 3 @ 20 days . If W. Gordon on account . . . . . If James Carter on account . . . . H Robert Banks // *Rec'd of R. Butler his note, No. 4, @ 3 mos.,' to close acct. Forward 1. Tlie firm have no entry to make with Gibson, Bright & Co. ; though this bill waa drawn by Carter one of our partners, it was on his own private account. We credit him for the money received for the Bill, and also for the interest collected on Hall's mortgage. X The number of a note must always accompany it, to enable ua to post it as directed, note 1, p. 167. 19873 25 91 200 504 20 704 45 397 874 75 1000 875 150 498 400 329 359 75 i 496 50 26742 Saturday, May 1, 1867. Bro't forward . Gave our note. No. 3, to A. Stuart & Co., to close acct., for ■■- - -^ •■ 1/ — — — Received Cash on acct. from S. Gaynor, C. B. 1. . . . 50. a II for sales this day 160. -" - II '. 1 Paid Cash to R. Banks on acct., C. B. 1 '/ // a quarter's rent of store /' II to James Day on acct. . ff II to W. Gordon // // to P. Duff II 30. 60. 12. 10. 5. Monday, 10. ' Rendered James Day his account; balance due him is . * Rendered Samuel Gaynor his account; balance due us is ~—^ = Thursday, 13. ■-— :.:i Received Cash, paid the City Bank in deposit, for S. Gaynor's note No. 1 r^ ^ - — - — — = ^ Monday, 23. Gave Wm. Hay our check on the City Bank on acct. for . // Bought Mdse. of T. P. Cope & Sons on acct., I. B. 2. ______ /; Shipped by the Brig "Tribune," by order and for account of T. P. Cope & Sons, I Mdse. "^ Sales Book 2 540. ' Paid charges in cash ........ 12. Commission on $540, @ 5 per ct 27- • ^ ,- ' Received Cash for Spencer's Note No." 3 284.50 // II from R. Martin for an old debt due Duff & Gordon 20. If II for sales of Mdse. this day .... 180. — -•- /.* " Paid Cash to .James Day on account ..... 10. 11 to W. Gordon // j40. ^--= = Tuesday, 31 • -z z: Balance in deposit in the City Bank this day on settlement ■ — ^- — II Received Cash this day for sales .... " II of S. Gaynor on account . n If oi^. Evans for Duff & Gordon „ Paid Cash to Edward Pryor in loan » II Lost by counterfeit money n II to R. Banks on acct. n 'I W. Gordon . '/ '/ City Bank in deposit Forward 86. 20. 25. 200. 20. 10. 5. 450. '26742 291 210 117 28 82 91 2000 2300 579 484 50 50 4337 35 131 685 38127 85 1. In order to preserve that liarmony between the books, upon wliich our method of proof i- fiiuink-d. no entry must appear upon the Ledger (except the olosing entries at the geni'ial liiUance- witliout originating upon the Bay Book or some of the auxiliaries. When wo settle with an iadividual we enter the balance as above, and pass it through the Journal. — Notes 1 and 2, p. 15'J. 153 / Tuesday, May 31, 1867. Friday, June 10, 1867. lii -I li Bro't over Sold W. Evans on acct. Mdse. '^ Sales Book 2 James Reed on acct. n u 2 , Joel Post // " » 2 . 20. 182. 18. ' Sold Robert Butler (Erie) on acct. Stuart & Co.'s goods, C. S. B. 1 576. j of our Mdse., S. B. 2 1.50 Gave T. P. Cope & Sons our check on City Bank on acct. Grave W. Hay u h # * Received cash on acct. of James Carter, deposited in City Bank. For Cutler, French & Co.'s Note 250. From Stay & Hall on acct 150. Saturday, June 4, Take to our acct. 3 ps. A. Stuart & Co.'s Carpet, I. B. 2 . I' Bo't Mdse. of S. Henry & Co.. I. B. 2, @ 5 f ct. disct. for Cash $1116. Net amount paid by check on City Bank . . . . 1060.20 I>iscount 55.80 Paid by check on City Bank our Note, No. 3, in favor of A. Stuart & Co. . - g . J. Reed's private acct. is Dr. for transfer from '- Sundry Drs. acct." . Received Cash, deposited, of E . Pryor for our loan of 31st ulto. Sold Merchandise, S. B. 3, to James Reed on acct. ... 96. » to Wm. Hay n . . .60. » to Robert Parker // , . .60. » to Geo. Draper on Note No. 5, @ 3 mos. 630. // _ — — Received Cash of Joel Post in full 18. '/ of James Reed on acct 100. > u of Jennings & Co. for sale of Hardman's goods 1200. Paid Cash to James Day on acct. . . . . I n to City Bank in deposit . . . . # to freight and duty on Hardman's cloths, 5. 100. 748. Settled with T. P. Cope & Sons. Gave them our check on the City Bank for Our Note, No. 4, at 30 days to close acct. 1000. 221. Forward, 1. Here, as at Note 1, p. 152, the firm has collected money for tneir partner. Carter. It is almost unne- . cessary to say, that we have uo entry to make al>out Cutler, French & Co.'s Note, nor about Stay & Hall's account, though we name them on the Day Book. "We credit Carter for the amount col- lected; and he keeps his own private account with these parties. 2. We do not pass this cash into the Cash account because we sent it immediately to the Bank. The Bank account by this means materially diminishes the cash transactions, and renders that acct. easier to keep.— Note 1, Fryer's acct., p. 133. 38127 220 577 500 200 85 50 400 180 1116 291 182 200 846 1318 853 1221 46232 35 Brot. Forward Bot. of William Hay on account Mdse. I. B. 2 Bot. of Thomas Freeman on account do. 2 Sold R. Banks on account Mdse. S. B. 3 do. E. Pryor do. 3 . . . n — Discounted at City Bank R. Butler's Note No. 4. for $496.50 ^ Net proceeds at our Cr. in deposit .... 55 days' Discount ....... It — Received Cash on account of R. Butler by mail Rec'd do of McKenzie & Abbot for sale of Hardman's goods, C. S. B. 1 . Rec'd do. of R. Evans, for Duff & Gordon . . - •- - ^- --- - n -- ^ - * We close sales of Hardman's cloths. Total sales C. S. B. 1, Our commission on the same 5 "^ ct., is . Net proceeds paid F. Hardman in cash, is . . . • - — n Paid cash deposit in the City Bank .... Paid James Day cash in full Monday, 20. Bot. Mdse. of James Haven on account I. B. 2 Bot. Mdse. of A. Stuart & Co. on our Note, No. 5, @ 3 mos. 168. 72. 108. 183. 491.95 4.55 100. 1540. 41.25 is $2740. 137. 1855. 100. 13. 28. 1000. // Sold Mdse. to W. Garden for cash deposited Bot. at auction 10 cases Irish linen, amounting to 81500. Sold them again at the auction room for 10 ^ ct. advance. Rec'd the advance in cash. Paid cash to R. Banks on account ...... : Paid cash to James Haven in full ...... I :=.=r-::r^=:^ ThuTScLay, 30 = I * Cash paid Expenses Apr. 1st to date by R. Banks '^ Expense I Book 1 ........ . R. Banks' salary as clerk 1st April to date is . * Total transactions to date 90. 28. 45. 300. 154 1. See Note 3, p. 143. Where you will see how this account is closed upon the Sales Book. There is no separate account opened for it upon the Ledger. 2. For the reasons given in Note 2, last page, this cash never appears in the cash account. S. Refer to Notes 1 and 2, p. 147. You perceive Banks must here bo credited for his salary and also for what he has paid out for the store by the Expense Book. 4. Compare this amount with the footing of the Journal, p. 161. This affords indisputable proof of the Day-Book being entirely Journalized. To every practical merchant the importance of this test between these books, must be at once apparent ; for there is no step in the process of book-keeping, where omissions are more likely to take place, and where they are less looked for than between this book and the Journal. The major part of Book-keepers direct all attention to the Ledger: and they will sometimes search for weeks to find out a trifle that jirevents their trial from coming out correct, while they perhaps never spend an hour in comparing their Day-Book and Journal. And after all, their trial of the Ledger proves nothing, even when it comes out correct, except that the Ledger agrees with itself. If it does not prove it to agree with any one other book, while our trial proves it to agree with the whole of them.— Note 4, p. 142. 155 46232 35 240 291 496 50 1681 25 1992 113 1028 1250 150 118 345 53937 10 REMARKS ON THE JOURNAL. The following Journal is, in form, similar to that of the Day-Book, p. 125. The columns on the left of the writing contain the debits and those on the right the credits. The columns next the writing on each side are the only ones posted in detail : the two others representing cash and merchandise, are footed and forwarded from page to page to the end of the month, or the end of the year, as may be desired, and from there posted in one sum into the Ledger, and the post mark affixed as usual. — See posting of our cash and merchandise accts. from the foot of page 161. In the Journal in the first part of this work, an entry was made for every receipt and payment of cash, and for every purchase and sale of merchandise. Here you will find several collected together — see second and third Day-Book entries, April 1st, — and the student will perceive that there are several other entries that might be incorporated in one, for instance, the first and second entries on the 10th April, are both merchandise debits, and might, therefore, have been journalized in one entry ; but I thought it better to leave some- thing to the student's own discretion in the matter. Before footing your Journal, always go over the entries again to see that all the amounts are extended into the proper column. Then foot them first upon waste paper, which ought to be ruled to the pattern of the Journal, otherwise you are sometimes liable, after the addi- tions are correctly made, to transpose the figures, and place them in the columns to which they do not belong. As you foot and forward the Journal, the Day-Book ought to be kept up also in order to get the earliest intimation of error, if it gets in. The Day-Book is generally only footed in pencil, and you can do it anywhere on the page where you wish to obtain the amount that ought to correspond with the Journal. In posting the Journal to the Ledger you make use of the same phraseology as upon the Double Entry Ledger in the first part of this work. In our last Ledger, which is intended principally for a retail business, we, to some extent, particularized the Day-Book entries : that principle of posting, however, can hardly ever be carried to any extent in a wholesale business. Indeed it will rarely ever be necessary, because bills or invoices almost always accompany the sale. As your posting is completed, you should always go over the work again and check it as directed — Note 2, p. 32. No one can expect to keep his books free from errors without this precaution. These books are specially adapted to daily posting, and if my young readers are disposed to profit by my experience in this matter, they will never allow their books to fall behind for a single day, if they can possibly avoid it. In some kinds of business, keeping the books up is almost indispensable for successful and efficient management. There are a great many book-keepers who have got it into their heads, that posting books once a week, or once a month, is sufficient. There is a method of journalizing and posting all accounts only once a month, upon which I shall have some observations to make hereafter : but I now repeat that my advice to all book-keepers is, to keep their books in such a manner that when called upon for an account, they have only to open the Ledger and find the whole account before them, ready for settlement. Those who will give this mode of posting six n:onths' trial, will not be easily persuaded to change it. i|; 156 ! Drs. NEW YORK, Aprn 1, 1867. Cbs. Hdse. 3217 50 Cash. 210(y 05 2506 216 2 91 3 1 8897 95 309 IOC 75 Sundries To Sundries, $5410.55 1 Cash .... Mdsc. .... Edward Pryor , , , Samuel Gaynor . To T. P. Cope & Sons . William Hay . James Carter's Stock acct James Day P. DuflF's Stock acct. W. Gordon's Stock acct. n II It II Ledg. A, fol. 1 Cash. Mdie. // // II I I I I I It Cash To Sundries, To P. Duff's Stock acct. " P. Duff .... " W. Gordon's Stock acct. . " James Carter's Stock acct. 504 200 36 50 68 2884 47 1717 58 1! 115 53 ll 500 i; 1282 42 1 2000 // 5800 4 3 4 8 3 963 50 1 Sundries To Cash 2 City Bank Expense .account. James Day. James Carter, Dr. To James Carter's Stock acct. " 10. -= Mdse. To Sundries, To Wm. Hay .... Cash 5811 963 50 2 2494 40 // 1160 tt Mdsc., Dr. to A. Stuart 360 " Mdse 25156.75* 25156.75 -. - -'-^= May 1, -.... 400 4 City Bank to James Carter 1 400 n 829 Mdse. To Sundries, To E. Pryor 3 64 " S. Gaynor 1 265 If Sundries To Mdse 37 1 P. Duff. 284 50 3 Bills Receivable, No. 3. 21 50 1 W. Gordon. 10 25 1 James Carter. 6 50 5 Robert Banks. II 496 50 3 Bills Receivable, No. 4, To R. Butler to close acct. 5 496 50 12622 75 Amounts forwarded, 16282 40 7775 75 Cash, 7727 60 6343 50 Merchandise 2732 26742 'Proof 26742 979 50 875 50 138 Drs. Mdse. Cash. 6343 60 7775 75 12622 75 i 291 210 May 1, 1867. Bro't forward, II 2300 30 60 12 10 6 28 82 91 2000 679 484 50 359 76 I 10 40 2 A. Stuart & Co. To B. Payable No. 3 to close acct. — II . Cash To Sundries, To S. Gaynor " Mdse. received for Sales . . . . II Sundries To Cash 6 R. Banks. 4 Expense account. 3 James Day. 1 W. Gordon. 1 P. Duff. 10. 3 1 James Day's old acct. Dr. to his new acct. II 1 2 Samuel Gaynor's new acct. Dr. to his old acct. 13. 4 City Bank To Bills Receivable No. 1. . 23. 2 3 William Hay To City Bank II Mdse. To T. P. Cope & Sons . . . . // 2 T. P. Cope & Sons To Sundries, To Mdse " Commission // Cash To Sundries, To Bills Receivable No. 3 . " Duff 3.Sll^ • • • • • Merchandise . • • . 2UU 20 10 5 460 •0883 10 8601 25 8643 50 38127 85 Proof 1. Hero you first post the debit and balance Day's ac- count ; then post the credit in the new account. 2. Here you must first post the credit and balance Gay- nor's acct. ; then post the debit in the new acct. 3. Hay is made Dr. to the Bank for the check ; no entry is required in the Cash Book. 4. You must now also balance your Check Book. — See p. 146. 6. See Note 1, p. 133. 159 Cks. Cash. 16282 40 7727 60 2732 291 60 3 1 4 2 28 82 91 2000 2300 6 27 2S4 50 2U 4 4337 35 1 6 20 26 25838 26 8591 60 3698 38127 86 100 li: 640 12 180 60 80 686 Drs. May 31, 1867. Cns. Mdso. Cash || ^ seiTsO 8601 25 20883 U 1 tA Bro't forward, It Sundries To Mdse. 20 6 1 W. Evans (S. D. acct.). 182 6 James Reed (S. D. acct). 18 6, Joel Post (S. D. acct.). 577 50 5 Robert Butler To Sundries, To Commission Sales I " Mdse. Cash. Mdse. 25838 2^ 8591 6(i 369{ m 500 200 400 Sundries To City Bank 2 T. P. Cope & Sons. 2 Wm. Hay. // ' i \^ 180 1116 4 "City Bank To James Carter . ^^^^-^^-= June 4. Mdse. To Commission Sales. 14868.60 291 1 l' 182 6 2ud 4 1 Mdse. To Sundries, To City Bank " Interest 4 576 7oa 400 18U 4 1060 2C 55 80 BiUs Payable No. 3, To City Bank ff James Reed To Sundry Drs. acct. u City Bank To E. Pryor for Loan of 31st ultimo, 4 291 6 182 3 200 96 60 60 630 6; 2 6 3i Sundries To Mdse., James Reed. Wm. Hay. Robert Parker (S. D. acct.). Bills Receivable, No. 5. 1318 5 100 748 1221 26373 60 9919 25 9939 50 46232 33 // Cash To Sundries, To Joel Post in full " James Reed " Commission Sales 6 18 6 100 5 1200 r/ Sundries To Cash . James Day. City Bank. Commission Sales. 853 1:, T. P. Cope & Sons To Sundries to close acct. To City Bank . " Bills Payable, No. 4 Amounts forwarded Cash Merchandise . 2 Proof . 1. These letters indicate Scndrt Debtoks accoimt. — See p. 170. We place these marks here as a guide to learners, but no such marks are required in busi- ness, because the book-keeper determines for him- self, when he is posting, whether he will open an account for the iudividual or place his name with the amount on the Sundry Drs. account. 2. See Day Book, footing p. 154. 4. 3 1000 221 32022 25 9444 60 4765 60 46232 35 60 160 Drs. Mdse. Cash. j j 9939 50 9919 25 26373 60 I 240 -1 L028 June 10, 1867. Bro't forward. lOf 18£ 5 3 Mdse. To Sundries, To Wm. Hay " 1 Thomas Freeman (S. C. acct.) // Sundries To Mdse R. Banks. E. Pryor. 491 95 4 4 55 4 Sundries To Bills Receivable No. 4 City Bank. Interest. 1681 25 1992 Cash To Sundries, To R. Butler . " Commission Sales " DuflF & Gordon . ff Commission Sales To Sundries, To Commission " Cash .... 100 13 3 Sundries To Cash. City Bank. James Day in full. 1/ 20. Mdse. To Sundries, To James Haven (S. C. acct.) " Bills Payable No. 5 . ii 1250 4 City Bank To Mdse. isoj // Cash To Profit & Loss . // 90 28 345 5 6 Sundries To Cash . Robert Banks. James Haven in full. 30. Expense account To R. Banks 13911.75 Crs. Cash. Hdm. 2 6 32022 25 9444 60 4765 5(1 168 72 291 3 496 50 100 1540 4125 6 137 l65o 113 28 1000 1250 150 lis 345 13911.75 30979 10 11750 50 2 11207 50 2 53937 10 Total Amounts to date, 36100 ;; Ip^^^ ^. "2 11530 60 Merchandise 2 6306 50 ' P^OOf 53937 jy 1. This indicates Sundry Creditors' account.— See Note 1, last page, and p. 170. 2. This makes our first Journal period. From here the total amounts of the cash and merchandise debits aud credits are posted into the Ledger.— See p. 166. 3. Compare this amount with our Day Book footing, p. 155, also with the trial sheet, p. 171. II •* i 161 CONCLUDING REMARKS UPON THE JOURNAL. 1. The mode of journalizing the last Day Book, it is presumed, will be sufl&ciently under- stood by the examples. We shall now endeavor to explain verbally the manner of com- posing the Journal from the Auxiliaries, without passing the entries through the Day Booi, as we have here done. When the nature of the business will admit of this, it will consider- ably lessen the amount of writing. 2. It is to be observed, however, that in a business which frequently creates compound entries, journalizing in this way will meet with many awkward impediments ; for instance, the first Day Book entry of this set. cannot be explicitly stated without embracing the first merchandise entry on the Invoice Book, and the first debit entry on the Cash Book. The only way of getting over this obstacle in journalizing the auxiliaries, is to let such entries pass into the Day Book and begin a new period — that is, commence immediately after these entries bringing forward and journalizing. We will now endeavor to explain the process of JOURNALIZING FROM THE AUXILIARIES. 3. When this is done, the Day Book will contain a much smaller number of entries ; for, if you adopt this method of journalizing, you must keep the entries belonging to each auxi- liary upon itself. They must not appear upon the Day Book (except in such cases as above stated) ; if they do, they will certainly lead to confusion. 4. Although it does not matter which book we journalize first, yet it is better to adopt some regular course : say we begin with the Day Book, and journalize all the entries under the present date. Then make Cash Dr. to Sundries for all entries on the Dr. side of the Cash Book, and Sundries Dr. to Cash for all entries on the Cr. side. Merchandise is Dr. to Sundries for all entries under the same date on the Invoice Book ; and Sundries Dr. to Merchandise for all entries on the Sales Book. Mark the entries oflf the Cash Book as directed Note 7, p. 53, and off" the Sales and Invoice Book, as directed for the Day Book, Note 7, p. 28. Bills Receivable, Bills Payable, and Commission Sales Book, are each jour- nalized in their turn in the same way, and marked off as directed with the Cash Book. 5. You next take each book in the same order, and journalize the following day's busi- ness as before ; and so on, until you have all brought up ; observing that the footings of the Invoice, Sales and Cash Book, agree with their representatives in the Journal as you proceed. 6. This process of journalizing does not disturb our mode of proof. The footing of the Auxiliaries, and that of the Day Book, have only to be added together to agree with the Journal. 7. Some journalize a whole month of the Cash Book in one entry, and then do the same with the Sales Book, preserving the order of the dates in the margin of the Journal ; but this method produces such a confusion of dates in the Ledger, that it can never be recom- mended. We have now to explain the second mode of abbreviation, viz. : POSTING ALL THE PRIMARY BOOKS DIRECT TO THE LEDGER. 8. When the nature of the business admits of it, this plan of posting efl'ects the greatest reduction in writing that perhaps can be made in Book-keeping. But it is subjected to the same impediments from compound entries, that we have just noticed. Note 2, and which can only be got over in the same way. We have already explained the manner of posting the Invoice and Sales Book, p. 139 and 142. When it is intended to post the Cash Book in this manner, a folio column will be required either next the money columns or next the date columns, in which you will insert the folio of the Ledger, as you proceed with the post- ing. The footings of these three books are summarily posted at the end of the month or the end of the quarter as from the Journal. 9. The Bill Books and the Commission Sales Book, may be posted, both sides, by the same process ; but I would recommend their passing into the Day Book. 10. The Day Book should have the entries all made in Journal form, when it is intended to post it in this way. I am now alluding to the common form of Day Book. 11. Our proof is obtained by adding together the footings of the Cash, Invoice, Sales, iiud Day Book. The amount must agree with the amount of the Ledger trial, as on p, 171. 162 t ON MONTHLY JOURNALIZING. 1. The object of this method is to condense, not only the cash and merchandise, but all the accounts in the Ledger, into one line each in the month. Many persons are stron-ly prejudiced in favor of this plan of journalizing, on account of the abridgment it makes^in the accounts in the Ledger : in some kinds of business it will no doubt work tolerably well ; but where the book-keeper is frequently called upon to make up statements of accounts, and to effect settlements, in a business of any magnitude, there must ever be this insuperable objection to it:— the books can never be kept up. You cannot commence the joumalizintr ot the month's business until the month has expired, and before you can journalize and post this month, a considerable part of the next must have elapsed j in a word, the nature of the process will never permit you to get your books up to the date of settlement. Even the strongest advocates of this method admit the force of this objection, and can offer no advan- tage to counterbalance it, but the abridgment of the accounts in the Ledger. I must, how- ever, name other objections to the process, viz. the chances of errors and omissions in jour- nalizing; the risk of making errors in drawing off accounts current, and making settlements without having your books posted ; the correctness of which can only be determined when the accounts are posted ; then, the time required in searching up the Day Book entries for the Journal, is certainly at least equal to the time required for writing them. Consequently, m less time than any person could possibly journalize a month's business in this way, by our plan of posting our first Day Book, we should have it all posted up into the Ledger. Ihe author once kept a set of books upon this plan; these remarks are, therefore, dictated by experience. 2 Some directions will now be required on the DETECTION AND CORRECTION OF ERRORS. n ^l ^^^.*"^^ ?o®s ^0* ^g^ee with the footings of the Journal, compare the footings of your Cash Debits and Credits with those in that book : also, those of the Merchandise account ; then the Bill Books and the Bill accounts. Get a trial from the Commission Sales Book to compare with its representative in the Ledger, compare the footings of the Check Book with the Bank account; and if you have posted direct from the Invoice, Sales and Cash Book, these books must be compared with their representatives in the Ledger. If all these books and the Ledger agree, the error must be in some of the personal accounts or some account not represented by any of the above books, and must be, between the Journal and the Ledger, m the Ledger or in the trial itself. Taking the Day Book and Journal as the best authority, we ascertain the difference between them and the Ledger trial. Sometimes . we find one side agreeing with the Journal : in this case our attention is confined to one side ot the Ledger only. In all cases it is proper to know the amount of error ; for if there be but one, knowing the amount of it, sometimes readily leads to its discovery. When the error is found, if it cannot be corrected as directed, page 98, the correcting entry must originate upon the Day Book or some other primary Book. . ^' T^^T/^ ^^^^^ ^^^^^^ ^° *^® Journal by extending into the wrong column, if you have tooted and forwarded the amounts before discovering it, at your next footing add the amount to the colunan to which it belongs, and subtract it from that into which it w^ erroneously extended. — Read Note 2, p. 98. '' Errors in any of the primary books are corrected as. directed, Notes 10 and 11, page 98, and Note 2, p. 125. > i' a "> 4. We will now endeavor to give our readers some useful directions IN RULING BOOKS OF ACCOUNTS. In ordering books, always provide the binder with an exact pattern of the size of paper and ruling. Never choose books of any kind that will keep you constantly cramped for space to write upon. Many persons use Day Books and Cash Books made of cap paper folded long, and are forever trying to cram their entries upon a line, very often leavin them half finished in the attempt. i^ 7 j In the next place, never throw away unnecessary space in maroins and date columns 163 i 'O [i I Five-tenths of an inch is ample space for the month, and three-tenths for the date and cent columns. The width of the dollar column depends on the magnitude of the business ; but the figures in this column ought not to be crowded. Five-tenths of an inch is a good space for four figures, and six figures ought to have seven-tenths. Three-tenths faint ruling is a good size for common Day Books, Journals, &c. ; but Ledgers and the six-column Day Book or Journal may be somewhat narrower. Mechanics and retailers, proposing to post their Ledgers as suggested. Note 2, p. 129, will find it useful to have the debit writing space, ruled one-fourth or one-third wider than the credit space. In small Ledgers it is better to bind the index in the book ; in large ones it is more convenient to have it bound separate. In either case, direct the binder to " throw over" the first leaf of the index, and commence lettering on the third page. This enables the book-keeper to place the upper letter upon each leaf on the left page, and the lower one on the right, thus giving each letter a full page throughout the index. In the six-column Day Book or Journal, it will be well to have the dividing lines between the cash and sundries column, on both sides, black or some dark color ; it will also be useful to order a red footing line across the bottom of the page, the fourth line from the bottom. Before concluding this subject, I will take leave to oflfer a suggestion upon the con- struction of BOOK-CASES. In vaults and safes, the book-cases are almost universally constructed for setting all the books on end, leaving the whole weight of the paper, by this means, hanging and straining upon the binding, and not unfrequently breaking it. It will take no more space to contain the books upon horizontal fixtures than in perpendicular ones, and it is obvious that all large books are less liable to injury in the one position than the other. INDEX TO LEDGER B. Bills Receivable Bills Payable Banks, Robert . Butler, Robert Carter, Janies . Cash . Cope & Sons, T. I City Bank . Commission Sales Commission . Duff, P. . Day, James . Duff & Gordon Expense Evans, W. Freeman, Thomas Gordon, Wm. . Gaynor, Samuel Hay, William . Haven, James Interest . A. » 3 . 3 5 . 5 1 . 2 2 . 4 5 . 6 1 . . 3 y .1' 6 . 6 1 . 1 2 . 6 4 Merchandise Pryor, Edward Profit & Loss Post, Joel Parker, Robert Reed, James . Stuart, A., & Co. Sundry Drs. Sundry Crs. J. K. L. N. 0. Q. 3 4 6 6 6.6 . 2 6 . G T. U. V. W. X. \. z. 164 Pf. 1867. I I Apr. 10 Cash, 30 // May 1 Mdse. Cash, 30 -^ ■ P. June nt. Balance. fol. 1 2 3 2 30 60 37 5 421 553 91 DUFF. 1867. I ! Apr. I 1 Cash, June 30 Duff & Gordon, fol. 1 5 Cr. i 500 53 91 553.M 132. 421.91 553 91 June|80 Balance bro't down, 421 91 Read Notes 2 and 3, p. 149. *' '^'"tr^H^f ?^ *'''° following accounts are the partners' private accounts; they are debited for all sums withdrawn and credited for any sums paid in over the capital. The credits of June 30 at this and Gordon's account are their diridendi 01 aeots collected for the old firm. W. GORDON. 1867. Apr. 30 Cash, May 1 Mdse. Cash, 23 2 3 11 // 101.50 32.34 69.16 June 80 balance bro't down. I i 25 ' 2150 10 40 I 5 ! . 1867. I ! June 30 Duff & Gordon, fol. 5 32 34 10150 69 16 -uaicuiuf. 101 50 JAMES CARTER. 1887. Apr 1 J. Carter's Stock acct., 1 SO Cash, 2 May 1 Mdse., k 988.75 800. 188.75 Balance, ML 4 fol. . 400 400 988 75 June 30 Balance bro't down. ^' ^^"sttk accouVtrrnt.'"''"' '' ^^'""^ *^'' ^'^*""' ""'^ '^'^"'''* *° ^" '*P^**^ ^^"" *^« ^^'^'^ ^^^^ opened-Refer to hi* 2. The two credits are payments on account of this deficiency. If interest is to be charged a Dav Book entrv will i«. m«H- r It, a nd It mil be brought to this account, not to his stock account. ^nargea, a i^ay iJook entry will be made «f SAMUEL GAYNOR 1867 Apr. 1 Amtf Ledger A, fol. 3x 91 ^0 Mdse May lO Balance on settlement, June 30 Balance bro't down. 397 488 82 1887. 82 62 ^pr. 10 Bills Keceivable, ^ay 1 Mdse., J Cash, 8 10 Balance debit in n/a., 2x 91 265 50 48S Jun 31 Cash, c 30 Balance, 20 82 Refer to Note 2, Warden & Bell's account, p. 105 1. Wliere a settled account is comprised in a single line, iMs sufficient to mark the entries on each side a. above and omit them H. .n^'^'J account current. But the author has witnessed so much confusion and trouble in acJounJs frJS. iSr- tr« rir^n^i^VV^' *"'\V* settlement, that he again requests the student's attentio^to Note 1 wS" Tcomi p Ij. Note, p. 20, Notes o and 6, p. 23, Note 4, p. 70, and No te 1, Carter's account, p. 105. i. " ooa s account, p. 165 I, » 1ft. CASH. Cr. 18W. ' ' June 30 Sundries to date, n^so^ 1 U590.W 5 11750 50 11750 pO 1867. ' June 1 30 Sundries to date, Balance, f. 5 2 11530 219 11750 60 90 50 Jun 30 Balance bro't down. 219 — 1 90 MERCHANDISE ACCOUNT. 1867. June 30 Sundries to date, Private Ledger, " I 'II 18OT. I f 5 11207 50 June 30 Sundries to date, 6306 50 Private Ledger, 17514 ~ f. 5 2 6306 50 11207150 1. Post the ne-w bnsiness to thia account as before. When closing the Ledger, transfer again with a double balance as above. T. P. (Philadelphia) COPE & SONS. 1867 ' ' Apr. *10 ' Bills Payable, May 23 Sundries, 31 City Bank, June 4 Sundries, 2x 504 3 579 4 500 1221 2804 1887. Apr. I 1' Sundries fLedg.A,f. Ix 504 May 23 Mdse., 3 2300 2804 I. This account affords another illustration of what is alluded to in Note 1, Gajrnor's account, p. 165. In business this mark is made upon the doable red line, and bo rauall aa not to disfigure the account. WILLIAM (Boston) Apr. 10 Bills Payable, May 23 City Bank, 31 // M June 4 Mdse., iSUj liiiiiince, M60. loi. 2x 200 3 2000 4 200 60 402 2 40 2862 40 1887. fl Apr. 1 1 Sundries Ledg. A, f. 1 x 200 1 10 Mdse., I 12494 40 June 10 // S*^ 5 168 402.40 June 30 Balance bro't down. 2862 40 402 40 STUART & CO. i88r. May 1 Bills Payable, 201 291 1867. Apr. 10 Mdse., 20 v 1 2 ' 216 75 291 166 Or. JAMES (75 Tenth Street) DAY. 1887. Apr. 1 Cash, 10 E. Pryor, May 1 Cash, 10 New acct., May 23 Cash, June 4 « 10 // !' 1867. Apr. 1 Sundries, Ledg. A, f. 3 Cr. 8 68 May 10 Old acct., 68 28 28 1. The last debit entry before, the first balance above, and the first credit after it, are in one Jounial entry, the first one posted before the account is balanced, and the last one after it.— Note 1, p. 159, and Note 1, p. 153. EDWARD (25 John Street) PRYOR. 1867. Apr. 1 Amt. Ledg. A, 10 Mdse., 20 // May 31 Cash in Loan, June 10 Mdse.. June 30 Bal. bro't down, f. 3 1 2 446. 284. I«t. 2 16 45 Sii 200 5,. 183 |j 446 162 1867. lApr. 10 James Day, 2 I May 1 Mdse., June 4 City Bank, Loan of 31st ult., 284. 4 X 200 20 64 30 Balancv 446 1. The above loan on May Slst, is passed through account as directed at Pryor'a acct., p. 133. ___ BILLS RECEIVABLE. 1867. Apr. 10 S. Gaynor, No. 1, 2 20 Sundries, May 1 Mdse., R. Butler, June 4 Mdse., 91 2, 2 1000 2502. K 872. ^'j 1630. June 30 Bro't down, No. 2, I i » f 5, 284 50 1867. May 13 City Bank, No. 1, 3 •' c:.i ,„d dowij, li„ May 23 Cash, 3, 3 496 50 June 10 Sundries 630 , 87S. 4, 5 2502 1000 630 91 284 50 496 50 2502 BILLS PAYABLE. 1867. Apr. 20 Sundries, I // .Tune 4 City Bank, 995. 1, I: 2 4 200 504 291 5j 2216 1 _ „,„ 1867. |Apr. 10 W. Hay, Cope & Sons, May 1 Stuart & Co., June ' 4 Cope & Sons, 20 Mdse., No. 1, 2, 3. 4, 5, 2216. 9»5. 1221. 2 200 504 3 291 4 221 5 1000 2216 June 30 Bro't down, No. 4, \ \ If It 5, 221 1000 1 Referring our readers to the copious directions for the management of these accounts, pp. 33, 34, 52, 103, and 104, we have now only to explain the peculiarity in the mode of posting adopted above. The notes are all posted separately, accom- panied with their respective nimibers, and the counter-post, with its number, must be always kept upon the same line with the first entry, leaving blanks opposite all notes in hand in the Bills Receivable account, and opposite all unpaid notes in the Bills Payable account. 2. In closing, the blanks must be all filled in red, and the same notes, with their numbers, recapitulated in new account. Thia method of posting these accounts will contribute much to theLr correctness, and, in some cases, renders the Bill Book unnecessary. 167 I I ' V! 4 Br. CITY BANK. Cr. 1867. Apr. 1 Cash, 30 // May 1 J. Carter, 13 Bills Receivable, 31 Bal. bro't down, I Cash, James Carter, June 4 E. Pryor, Cash," 10 Bills Receivable, Cash, ' 20 Mdse., - 1867. Apr. 20 Bills Payable, May 23 Wm. Hay, '1 l^il-iifr^ to. r\ 'fi., 2 3 3 4 4337 85 May 31 Sundries, 450 June 1 4 Mdse., iBills Payable, 7329.30 3051.20 427&10 June 80 Bal. bro't down. 400 200 100 49195 100 1250 7329 30 4278 10 Cope & Sons, 30. i^;u:i;jcj, 3051.20 703 65 2000 7041 700 1060 20 291 1000 7329 $0 See Note 2, p. 157, and Note 1, Day's account, p. 167. Every house doing a business of any magnitude, should keep a Bank account. It simplifies and shortens the Cash account, and diminishes the trouble and chances of error iu making payments. PROFIT h, LOSS. 1M7. May 31 Cash, 3 June 30 Pr. & Loss, Pr. Ledg. f. 2 20 130 160^ 1867. ' June 20 Cash. 5 150 150~ 1. This account is continued in this Ledger until the time of closing, when its balance is transfen-ed to the Profit k Loss in the Private Ledger. — See the above balance in Profit & Loss account, p. 174. EXPENSE ACCOUNT. Apr. 1 Cash, 1 3 May 1 // 3 60 June 30 R. Banks, 40& 5 345 1867. June 30 Private Ledger, f. 2 408 408 408 INTEREST ACCOUNT, 1867. f f! 1867. ' ' June 10 Bills Receivable, 6 4 55 Apr. 20 Bills Payable, 30 Pr.&Loss Pr.Ledg. f. 2 72 10 i Bills Receivable, i June 4 Mdse., i«.» 76 65 . I 2 4 ^5 20 50 55 80 76 65 1. This, and the Expense account, are both closed into the Profit k Loss account iu the Private Ledger, p. 174. 163 I Dr. 1867. Apr. 30 Cash, June 4 w 10 Sundries, COMMISSION SALES. Cr. I 2 4 2765.50 5 June ^0 Bal. bro't down, 1867. 25 50 Apr. 30 Cash, 748 May 81 Robert Butler, 1992 June 4 Mdse., Cash, i! 10 // 3866. 6621 50 2765 50 June 30 Bal. bro't down, 2 360 ( 4 576 180 1200 V 5 1540 6621 50 3856 See Notes 1 to 4, p. 143. . . a ■% -a %. 1. This account represents all our commission business. All the accounts are kept and settled on the Commission Sales Book. 2. We have closed this account by DmhU Balance, for the purpose of practically exemplifying that operation, though this mode of balancing -was not required here, or, indeed anywhere, except when transferring an account from one I,*Higer to another, which you wish to leave closed on the old book, and to re-open on the new one with the whole ai.iount of each side brought forward. You will perceive that the above operation will effect that purpose.— See Morri.s' Sales, p. 107. ROBERT (Clerk) BANKS. 1867. Apr. 10 Cash, May 1 Mdse., Cash, 31 // June 10 Mdse., 20 Cash, 30 .,..,.„.,... 20 June 30 Expense acct., ^[^ 5 6 50 30 26i.50 80 50 ROBERT (Albany) BUTLER. 1867. i ' Apr. 10 Mdse., May 31 Sundries, vrm. \ i 596 50 Apr. 10 Cash, 1 May 1 Bills Receivable, 2 596 50 i j ^,,,J_jti I u 577 50 June 10 Cash, 5 577 50 100 496 50 596 50 100 577 5m DUPP & GORDON. 1867. ! June 30 P. Duflf, jW. Gordon fol. 1 1867. 53 91 May 23 Cash, 32 34 31 // I June 10 " 86.25 3 5 20 25 4125 86 25 86 25 1. This account is credited for all collections made of Duff & Gordon's old debts, and if any thing is lost upon any of thf nr- counts from which they credited themselves in the new firm, this account will bo debited for the amount. Of the aK.ve collections they make a dividend in the same proportion as ttiey divided the gain wlun lii. y dosed their l>o.>ks.— St« Profit & Loss account, p. 134. 169 • Br. SUNDRY DEBTORS. Cr. 1867. May 31 W. Evans, Jas. Reed, Joel Post, June 4 Robert Parker, 4 20 182 18 J80. 300. 60 80. 280 vn, 20 ; 60 1867. o uuuoO T - > ■» 1 ■- 4 Jas. Reed's acct., 4 ,| Cash of Joel Post, aoo. !|| ': .or, car. dow;. :'.0 182 18 ;<) 280 June 30 W. Evans, bro't down , R. Parker, ft i ' 1 In every business there are frequently small sales and unsettled balances due from persons with whom wo expect to have no farther dealings. The simplest and easiest way to keep account of such transactions is under a Sundry Drs. head. Enter the name, sum, date, &c., as above, taking care to index each individual's name, as you perceive we have done— refer to the index, and see. , , , ^ i. , * -d 2. When payment is made, it comes through the books as far as the Journal, as though the party had an open account. Jiy the index, the name is found on this account, post it like Joel Post's entry, 4th June, above, on the same line opposite the debit, and'it settles the transaction. ^ . j. . j , t.- *u * 3 You must recollect, however, that you cannot make more than one debit and one credit to each individual. 11 tbe trans- actions exceed this, you must re-page the party's name in the index, and transfer, through the Day Book, the amount from this account to his private account, aa we have done above with J. Reed. SUNDRY CREDITORS. 1867. - 20 Cash paid J. Haven, 5 28 ' 1867. June 10 20 DueT. Freeman, 6 ' It Jas. Haven, ^£; 7a. 1 72 28 1 100 1 i 100 1 1 June 30 Due T. Freeman, bro't down, 1 72 1. This account is managed in all respects like the last one, except that the entnes first appear at the credit side. 2. When a purchase is made of a party with whom you have not an account, and intend to pay it in a short time, let the trans- actions as those in the last account, come through the books as far as the Journal, in the usual way, then post the name, amount, Ac, to this account, recollecting to index the name. When payment is made, it must be always placed on the Dr. side, on the same line with the credit, as with Haven's entry above. . „ , , j. . ^r, 3. These tw(. accounts close by filling up the vacant spaces in red, as above, recapitulating all the names and amounts in the new account. JAMES REED. 1867. June 4 Sundry Drs. acct Mdse., 278. 100. 178. 182 96 _ 1867. June 4 30 Cash, :ded Li-t. 4 100 f. :l 178 278 278 11 " " — 1 • ll 1 This account was first commenced under the Sundry Dks. head, but finding he was going to deal farther with us, we re- indexed his name, and opened a private account with him. This will frequently occur in business, but, as the name la already in the index, the trouble is trifling compared with the old-fashioned plan of keeping a petty Ledger for such accounts. COMMISSION 1867. June 30 Profit & Loss, ACCOUNT. 1867. f. 2 164 May 28 Cope & Sons, June 10 Commission Sales, i^ 164 3 5 1 ' 1 27 137 164 170 TEIAL SHEET, June 30, 1867 P. Duff . W. Gordon James Carter S. Gay nor . // Cash . Merchandise . T. P. Cope & Sons Wm. Hay A. Stuart & Co. - James Day // Edward Pryor Bills Receivable . Bills Payable . City Bank . // . Profit & Loss Expense Account Interest Account Commission Sales Robert Banks Robert Butler // Duff & Gordon Sundry Debtors Sundry Creditors James Reed Commission . Private Ledger Drs. Ors. fol 1 2 1. By comparing these footings with those of the Day-Book and Journal, and finding them to ao-ree, we have direct and indisputable evidence that no omissions can have occurred either in journalizing or posting. Whereas the common Trial Balance affords no security against any errors but such as disturb its equilibrium. And it is well known that omissions deeply affecting the interest of the Merchant frequently take place between his Sales Book, or his Day-Book and his Journal, which the method we are now introducing affords the means, and the only means, of detecting with certainty. — Note 4, p. 142. 2. There are so many obvious advantages in taking a monthly trial, that it is strongly recommended in business. On the next page, I have given a form, by which, when the titles are once written, the amounts only require to be afterwards inserted until the end of the year. 171 I AN IMPEOVED POEM 01 MONTHLY TBIAL SHEET POE 1867. Accounts. 1 Drs. April. Crs. DBS. Mat. Crs. DH8. Juhs. Cbs. P. Duff, 90 500 42 W. Gordon, 25 76 50 James Carter, 9781 50' 10 : 25 800 • Samuel Gay nor, ; 488 91 ' 82 417 Cash, 2 ' 7775 ' 76 7727 60 825 < 50 864 ' 3149 ! 25 2939 Merchandise. ! 6014 i 30 2372 25 2629 1547 25 2564 2387 T. P. Cope & Sons, 504 504 1079 2300 1221 Wm. Hay, 200 2694 40 2200 60 168 A. Stuart & Co. 291 291 James Day, 3 28 68 50 28 18 Edward Pryor. 63 20 200 64 183 200 Bills Receivable, 1091 1 781 375 50 630 496 50 Bills Payable, 704 704 291 7037 85 291 1221 2351 iO City Bank, 4 6550 703 65 5678 35 2141 95 Expense Account, 3 60 1 345 t ! i Interest Account, 20 85 1 1 4^5 55 i to Commission Sales, 6 251 50 360 , 1 1 576 2740 2920 Robert Banks, 20 1 1 ' 46 50 198 345 R. Butler, 596 i ^0 100 577 50 496 50 , 100 Privale Ledger, 1 9000 April * 25156 ' r5 25156 75 Profit & Loss, 4 1 20 150 Duff & Gordon, 5 1 45 4125 Sundry Debtors, 6 220 60 200 Commission, 27 • 137 May .... 14So8 60 ■ 14868 ( 50 Sundry Creditors, 6 1 1 1 28 100 James Reed, < 278 r5i 100 June .... (3911 \ 1 3911 -3 rs 1. The above form of monthly trial will require medium or royal paper, ruled with six debit and credit columns on each page. This will enable the book-keeper to take his trial in about half the usual time, inasmuch as the titles once written ser^-e for the whole year. 2. As our Journal is not posted in monthly periods, you cannot find the cash and merchandise amounts for the above trial from the Ledger, but you can procure them from the Sales, Invoice, and Cash Books; and I have given the monthly totals in small figures in the margin of the Journal, so that you can see when your trial agrees with that book. 3. Before making out each month of this sheet, go over the Ledger, carefully adding up the month's business, inserting it in pencil in the margin of each account : from these marginal figures the trial is filled up. 4. To facilitate this operation, the author originally had his Ledger ruled with two sets of money columns on each side, so that every account could have each mouth's business extended in monthly sections, like our Cash Book. But some of his mercantile friends expressing a strong dislike to this manner of ruling the Ledger, ho has been induced, in deference to their opinion, to abandon it, although his own opinion of its practical utility remains unchanged. b. Want of time is the greatest objection to the monthly trial, but it is believed, that if a proper estimate is made of the time usually required for correcting books at the end of the year, the advantage will often be in favor of the monthly trial, which gives timely notice of the existence of error, and but a short space of business to examine in order to find it. 6. In conclusion we may also name another advantage of the monthly trial. When it always comes out correct, there is not any necessity of ever making out a Balance Account. Dividends can be safely made upon the Profit & Loss Account, after closing into it all accounts representing gain or loss. Indeed, this may be done in any case where there is satisfac- tory evidence of the entire correctness of the books ; but, as all experienced accountants know, in the ordinary mode of keeping books, the Balance Account affords the only satisfactory evidence of this. When a dividend is made, and a net capital exhibited in the Stock or Partners' Accounts, the Balance Account must at the same time be shown, as evidence of the existence of effects to represent that capital. 172 THE PRIVATE LEDGER. ] . The object of this book having been explained, Note 4, p. 149, we have now only to observe, that, although it is, in business practice, always a separate book, it must be dealt with as though it formed part of the other Ledger. After the accounts are opened, no public business can require any reference to it. Indeed, no reference is ever required to it, except at the time of closing the books or taking the trial. The sum of its footings must appear upon the trial as you see on p. 171. At the time of closing, the transfers are all made from the public Ledger to Profit & Loss, Suspended List, and Balance, as if these accounts were opened in the same book. If the dividend is made without making out a balance account, as suggested in Note 6, p. 172, the course to be followed with the other accounts in this book will still be the same as it now is. Dr. P. (Stock Acct.) DUFF. Apr. 1 June 30 Sundries, Ledg. A, f. 1 Cash, 8000. 1 Profit & Loss. f. 2 Cr. 1 2884 47 115 53 1400 53 Net Capital at date, 4400 53 w. (Stock Acct^) GORDON. im. A|Mr. 1 Sundries, Ledg. A, f. 1 1717 58 Cash, 3000. 1 1282 42 June 30: Profit & Loss, f. 2 1400 53 Net Capital at date, 4400 53 JAMES (Stock Acct.) CARTER. J 1867. Apr. June Sundries, Ledg. A, f 2 36 50 Cash, 1 2000 J. Carter's Pr. acct. sooo. 1 963 50 30' Profit & Loss, f. 2 1400 54 Net Capital at date, 4400 54 1. We have, above, carried the whole amount of each partner's dividend to his credit in Stock account, but our attentive student no doubt recollects what we stated, Note 5. p. 129, and he will therefore readily understand, that the partners may order various other disposi- tions of their dividends; for instance, they may agree to carry a certain percentage on their capital to the credit of their private accounts to cover sums that they have withdrawn, and allow the remainder to pass to the credit of their Stock accounts to increase their capital. They may think proper to order the whole amount to the credit of their private accounts or draw the cash for it as soon as the amount is known, as in banks and joint stock com- |anies. 173 Dr. MDSE. ACCT. Cr. 1867. : 1867 June 30 From Public Ledg., f. 2 11207 50 June 30 From Public Ledg. f. 2 6306 50 Profit & Loss, 2 4899. 1 1 i^iiiaiicu, 2 i 9800i 2 4899 16106 5(> Balance, 9800 16106 50 1. The balance will always be brought down npon this Ledger. Every time the Ledger is balanced, the total postings to tint account on the Public Ledger are transferred by double balance as above. PROFIT & * LOSS. 1867. June 30 Expense, Public L. f. 4 Suspended List, 1063.50 2 P. Duff, i n/g. 1 W, Gordon, i // ^ 1 J. Carter, i u ' 1 1867. June 30 Pr, & Loss, Pub. L,, f. 4 Merchandise, I Interest, Commission. L., f. 4 130 2 4899 4 72 10 5265.10 1063.50 6 1 164 4201.60 IM0.S8 5265 10 See Notes 4 and 5, p. 130, and Note 1, p. 173. The above gain is carried to the partners' stock accounts. BALANCE ACCOUNT. 1867. 1867, June 30 W. Gordon, fol. 1 69 16 June 30 P. Duff, fol. 1 421 91 James Carter, . 188 75 , 1 Wm. Hay, 2 402 40 Samuel Gaynor, 62 ) Bills Payable, 3 1221 ! Cash, 2 219 90| Commission Sales, 5 3856 j Mdse., 9800 R. Banks, 80 50 1 Edward Pry or. 3 162 Sundry Crs., 6 72 1 Bills Receivable, 1630 1 P. Duff, n. c, 1 4400 53 ; City Bank, 4 4278 lOi W. Gordon, n. c. 4400 53 Commission Sales, Sundry Drs., 19255.41 5 2765 50i 6 80j 19255 41; 1 James Carter, n. c. 4400 54 19255 41 1 ; SUSPENDED ACCOUNTS. 1867. June 30 Robert Butler, j James Reed, f. 653.50 I ! 5 6 1 477 178 655 50' 50 ; 1867. June I 30 Profit & Loss, fol. 2 655 50 655 50 See Notes 1 to 3 Suspended List, p. 134. We have only to remark further, that if these accounts have been closed, you will allow them to remain so, until you it'- ceive a payment upon them. When this takes place the account is to be re-opened with a debit for the suspended bal- ance: but this cannot be done upon the face of the Ledger. Profit & Loss having been debited for the amount at the last balance, mu.^t now be credited for it upon the Day Book, making the individual Dr. To Profit & Loss for balance per Suspended List. It may, perhaps, be asked, why not carry such payments to the credit of Profit & Loss, without re- opening these accounts ? This \sill not do, because these individuals' accounts must record the payments they have made upon them. 174 i^ o o D -^ » O P OD CD . I— I 5'3 O 2 « OQ f? OB S, 9 ill So*? *^' n* ^ ^% "J P J9 a- O o o C ^ 2 2 ^ © O *^ p p c 3 ^ « p S A a" 1 3 p "* 5 3 < CO s ^ o .a* ^ S'^ ^g^ ?^% « 3» 5. 5 5^ 6 & ;;: P^ p ©33 "Ti an p. p»- CD a'^ a C » o OD ?. B ;;• tr CD ? ? P ^ 3 S C5 C > OK} 2. 3 r* 2- 3 o ?L Mj ■— ' » 2 CO 3 o 3 CO ul debts to Duff' to Gord to Carte o B o 3 i-j O on CD 2 ob'*'^-0 OB ^ OB P.1 CD '-'• o M- CD ™ ^.t- 3* P 3 o &i c-r^ a o a 3 OB O 00 3 r* 3 O ^ ^ S* a* e* ^ 3 CD ro P &- &. ^ p o o CD o o a, . 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"When a concern is dissolved, the books being generally left in the hands of one or more of the firm for the purpose of settling up, each of the partners should be provided with a Balance Sheet, similar to that on the preceding page. From this Balance Sheet each re- tiring partner makes the proper Journal entry in his own books. If the remaining partners continue the business in their own name, unless they have bought out the interest of the retired partners, they should make no use of any of its books to record transactions relating to their own business. To those who understand the preceding set of books, the following Exercises will fully explain the subject. The student should write out his own answers before he consults those in our Key. EXERCISES ON WINDING UP PARTNERSHIP BOOKS. 1. On the 30th June, the day on which the preceding books were balanced, suppose thai Gordon and Carter retire from the firm, and leave the books in the hands of Duff for settle- ment : what entry will each retiring partner make in his own private books in conformity with the Balance Sheet of the late firm, supposing they had no previous entry in their private books of their investment in the firm ? 2. What entry will Duff make in his books ? 3. The Bank Deposit, Cash in hand, and Bills Receivable, being available property, what entry will Duff make of the same in his books on receipt of them ? 4. What entry will he make for the same in the books of the firm ? 5. What entry for the Merchandise in hand and debts due the firm ? 6. What entry in his own books when he makes a payment of $1000 in cash to Gordon, one of the retired partners, on account of his Stock ? 7. What entry for the same transaction in the books of the firm ? 8. What will be Gordon's entry when he receives the money ? 9. What will be Duff's entry, in his own books, when he sells Merchandise belonging to the firm for cash, $2000 ? 10. What entry in the books of the firm for this sale ? • 11. What entry in the firm's books if he sell James Carter, one of the retired partners, S3000 worth of Merchandise, on account of the balance due him by the firm ? 12. What entry for this sale in Duff's private books ? 13. What entry will Carter make in his books for the same ? 14. What entry in his own books, when Duff collects cash due the firm j say the amount of S. Gaynor's account ? 15. How will the same be entered in the books of the firm ? 16. What entry in his own books when he pays, cash, a debt due by the firm ; say the balance due Robert Banks? 17. What entry for the same in the books of the firm ? 18. When the merchandise belonging to the firm is all disposed of, how is the account to be closed upon the books of the firm ? 19. If any of the personal accounts due the firm are wholly or partially lost, what entry in the books of the firm at the final settlement ? 20. When any of the suspended accounts, say Robert Butler's, is collected in cash, what entry in the books of the firm ? 21. When the effects of the firm are all made available, how is the Profit & Loss account to be finally closed on their books ? 22. How will the partners' accounts be finally closed on the books of the firm ? 23. What entry will each partner make on his own books to close the account with the firm, after the effects are all paid over ? • 176 PARTNEKSHIP SETTLEMENTS.— PAET 11. The foregoing exercises illustrate the course to be pursued when a firm is dissolved with a view to dividing the effects only as they are collected and made available. But it will always be found more convenient and advantageous for all parties, if the retiring partners agree upon a stipulated allowance for bad debts, expense of collecting, &c. In this ease, the books and all the effects of the firm become the property of the remaining partners, and they continue the business in the same books as before the dissolution ; at the same time becoming liable to the retired partners, in the terms agreed upon, for the balances they have accepted for their interest in the house. 24. Suppose Gordon and Carter retire, and Duff takes the effects, books, and the whole busi- ness into his own hands, assuming all the liabilities of the firm, as also the balances due the retiring partners, less five per ct. oft' their last dividend, to cover bad debts, what entry will he make upon the books of this discount ? 25. What entry will Carter and Gordon make upon their books to show the transaction ? After this, Duff debits them as he pays them off, in cash, merchandise, &c. ; they at the same time making conforming entries in their books. In the above exercises, we have made no allusion to the open consignment accounts. In every house doing a commission business there must always be a number of consignments on hand, partly sold at the time of closing the books. When a balance sheet is made up, either for the purpose of admitting a new partner, or settling with a retiring one, it is obvious that the commission upon these sales, as far as they are effected, must be taken into account; and to do so, the commission, so far earned, must be carried to the credit of the commission account. In doing so, some other account must be debited for the same amount : now, the question is, what is the proper account to debit ? It would be manifestly improper to debit the sales account without rendering the owner a statement, and it is by no means proper nor desirable to render him an account, unless he calls for it, until the sales are completed. The commission thus earned, being part of the effects of the parties who have thus far conducted the sales, their Balance account must be debited for it. To make Balance account Dr. to Commission, is a peculiar and somewhat anomalous entry; and it will, perhaps, be asked, what effects have we got to represent it? To this we reply, that the entry represents our claim against this person's sales ; and this claim is of the same nature as that against Ppyor, or any other individual. The only difference is, that we do not, just now, for the reasons above named, place the amount to the debit of the sales. Now, it must be recollected, that the Commission account closes Bi/ Balance and to Profit & Loss; ?nd, like all other balance-closing entries, this one must be brought down into new account ; and when the account afterwards receives its credit for the commission on the sales, when completed, the effect of this debit entry, so brought down, will be to extinguish its amount out of the credits of the account at the next dividend, thus preventing a new dividend of that portion of the commission accounted for in the old account. When dividends are made as we have suggested, note 6, p. 172, without making up a Balance account, then our Day Book entry will be. Commission new account. Dr. To old account After posting the credit entry, close the account into Profit & Loss ; and, after the closing lines are drawn, post the debit entry. It is to be observed that, in business, the entries we are now considering will often have to embrace the commission upon a large number of different accounts. A Day Book entry, specifying all the particulars, will, therefore, always be required in form something like the followinir : — Balance Account Dr. To Commission. For commission 5 per ct. on A. B.'s sales effected to date, 8500. /' f 2i // on C. D.'s // j6 the other partners. Sundries, Dr. to Duff, Gordon & Co. Cash, for the money in hand. City Bank, for balance transferred. Bills Receivable, for amount of Notes in hand. Duff, Dr. to Sundries. To City Bank, to close account. // Cash, do. do. // Bills Receivable, do. No entry until converted into available funds. Duff, Gordon & Co., Dr. to Cash 81000. Gordon, Dr. to Duff . . . 1000. Cash, Dr. to the late firm . . 1000. Cash, Dr. to Duff, Gordon & Co. 2000. Duff, Dr. to Merchandise . . 2000. Carter, Dr. to Merchandise . 3000. No entry, he having given the firm no credit for the Merchandise. Merchandise, Dr. to Duff, Gordon & Co. 83000. Cash, Dr. to Duff, Gordon & Co. . . 62. Duff, Dr. to S. Gaynor, to close account . 62. The firm, Dr. to Cash, paid R. Banks in full 80.50 Banks, Dr. to Duff, to close account . . 80.50 The same as if the firm still existed. To or By Profit & Loss. Profit & Loss, Dr. to the individual, for the amount lost. Re-open the account as directed, Suspended List, p. 174; then. Duff, Dr. to Butler, for the amount received. In the usual way, To or By the partners' accounts. When Duff pays over each partner the balance due him, it will close both their accounts and his. They will close their accounts To or By Profit & Loss. Sundries, Dr. to Profit & Loss 140.05. J. Carter, for 5 f cent, discount on 81400.53 870.02 W.Gordon, do. do. ... 70.03 Duff, Dr. to Stock, for balance due on account, less discount allowed. Remark. — By a careful comparison of the abovo answers with the questions, p. 176, and the amounts in the balance sheet, it will be seen, that although the firm no longer exists, each partner must keep his account with it, and it keeps account with them until finally settled up. The books of an old firm must record the whole settlement of its affairs, as completely as if it still existed. The retiring partners can never debit the remaining ones for their claim against the firm. The remaining partners are not accountable any faster than the effects are converted into available funds. To carry such entries into private account would inevitably lead to the greatest confusion. It is at all times advisable, where the amount can be agreed upon, for the parties to agree to an allowance for bad debts, &c., and one party to sell out, and the other to buy, :is exem- plified in questions 24 and 25. The business then goes on without interruption. When this arrangement cannot be effected, the new firm has no other course to follow, than that laid down upon page 176. And if it has dealings on its own account with the retired partners, the greatest care must be taken to distinguish between payment* made ou private account, and on account of the late firm, otherwise the accounts of the new and old firm may become involved in inextricable confusion. 185 DUFF'S BOOK-KEEPING. MANUFACTURERS' FORMS. TIME AND WAGES REGISTER OF THE PITTSBURGH NOVELTY WORKS. 1867. Jauvabt 1. JAN0ART 8. Name. Quantity. Bate. Amount. 24 Quantity. Rate. Amount. Patrick Birch 6 doz. Locks. I i t John Brown 5j // // 5. 27 50 Robert Hammer 4 // » 6. 24 i 1 Levi Wall ! 31 // t 7. 24 50 i ' Joel Black 2i // '/ 8. 20 Wm. End ; I 15 'f Latches. 1.50 22 50 1 Charles Dunn 12 If If 1.75 21 1 Toseph Castle 10 // // 2. 20 John Cross 25 " Hooks. .50 12 50 George McCoy 30 // // .40 12 Forward t ! • 208 1 1 1 ' The above form is designed for paying the men by the piece, in weekly payments. We have extended the first week's wages upon the first page. In business, the above $208 is brought forward into the head of the " amount" column upon the next page, and so con- tinued from page to page until the whole list of workmen (often several hundred) is com- plete. On pay-day the whole list is extended as above. The men assembled, the pay-clerk calls the names in their order upon the Register, hands each the amount due him, and checks it upon the left money column, thus |/. From the foot of the last page of the Register, the weekly amount total is transferred and marked " entered Cash Book." This book should be made of paper large enough to contain four weeks' business. It will save writing to continue the ruling over two pages. The names will not then have to be re-written until the weekly spaces are all filled. If a workman is discharged, it is noted opposite his name, and his remaining weekly spaces remain blank. 186 DUFFS BOOK-KEEPING.— MANUFACTURERS' FORMS. P5 Q iz; ^ o fe 1^; o l-H ^^ t> ^ CD QO iH w ^ iH p^ & ^ P5 a r/} eg H h> H l-H 0^ o, TJ ^ w s Eh 08 fe 'ft O 'd a p:5 o EH W o ^ m o p^ El GO u m o ^ ^ < ^ o ^ < m I a (A & ^6 2 a OQ H ^ ^ QQ JC^QO oqinooocoTjHTjioO"^ »o 1 (M (M O 00 CO (M fM (M iM 00 lO (M i-lOC50iOCO(M(M(M-« 1-3 H-s^ a -♦J en O o o d5 J4 OQ 6 M o o pq -^ r^ Sp: CP -^^ •T3 DO C3 -4^ o .i; a S5 ^ c3 rt >^^ c8 rt K^ 9 e S ^ OS c4 O -<^ o ^ « fc^ - ^^ i Q fcfJ ^ -M -^3 (J) *^ ^ r-^ C ;h O a o CI •r' «-" C3 fe rt c) O a ^2 S „ ^ ° ^ c -^ 3 c2 t- b O S -^ c >« ra *^ Jl^ ri2 9. ^ ^ a f^ ^N o ^ a o ^ Xi ^ ^- d o OQ c3 a> OQ X c; _ 5 o © te C "^ ("1 k*' .^« . O o 03 > a> ^ a s| a^ -fcS 02 CO ^ ^ C^ J! O S •T3 C3 fl Qj rt c3 a a X ^F^ *" QJ '=+-1 .2 ^ "^^ p ^ o -^g 8 a ^s a ^ ^^ ^. ■ '^ a. OQ ° o -a ^ "T? o o i^ o " QJ .p^ .1-1 •v p,| 2^^ fee o p < o 5 rt _p q5 S Jh "^ ^ ^ 'vV. P 9 ^ C^ QJ fl P -S f^ I— I J- a pq "^ " o rC ^ o s a .a -3 en O tQ a o -c3 C a a o ^ ^^ %i =0 , o >> == a 09 13 Oi p -*^ o o ^H a S ? .5 .rP O !^ a o o a. a pi< '^ ^^"^ o o :S a d M P n3 c2J p >» o o -" .w O ... «cS a cc -S OhSH o eg 187 FORM OF A RECEIVING AND KECEIVED. Date. Marks and Articles. 1M7. Jan. i 1 2 Feb. Mar. Apr. 10 1 10 20 1 10 1 \ C. D. 14 Bales Received from. Penna. R. R. Consigned to. Weights. Charges paid. t C. Day, Cincinnati 700, 70 460, 970 1 466, 671 I 221, 970 I 447, 100 I 801, 1200 ! 740, 1427 369! 72 W.Wade, 170 B. Flour R. 0., 2 Hhds. W.&Co.lOHhds.Hama B. & Co., 200 B. Flour J. P. 9 Bales P.P. W.&C.R.R. S. B. Velocity S. B. Dart S. B. Peru Penna. R. R. 10 W. H.300B. Oil ; S. B. Diadem W. Wade, N. Y. R. Owens, Ph'ilada. Webb & Co., N. Y. Beck & Co., N. Y. J. Pope, :"t. Louis, Mo. 9248 Pike & Co., Baltimore 400, 300, 660, 430, 210, 740 860 610 920 6130. 86 60 102 FORWARDING REGISTER. FOEWARDED. Date. 1867. Jan. 60 75 The above form will be found suitable to almost all kinds of Receiving and Forwarding business. It will be seen that the column for " weights" is left blank when the freight is charged by the package ; and the money column, "charges paid," is only used when we have to pay charges to the carrier from whom we receive the articles. The amounts of commission and charges are entered in the Cash Book and Journal, out of the column " commission and charges," when the amount is marked off thus,|/. Some- times we collect both commission and charges of the conveyance by which we forward, insert- ing the amount in their bill of lading, to collect of the consignee when they deliver the freight. If we have an account with the consignee, we can debit his account for the amount. Suppose this to be the case with the first entry above, our Journal entry will be C. Day, Dr. to Sundries .... To Cash, paid charges to Penna. R. R. on 14 bales // Commission, forwarding same p. S. B. Herald 188 8415.94 369.72 46.22. Feb. Mar. Apr. 15 16 20 21 4 Conveyance. Articles and Weights. Consigned to. Comm. Comm. k Charges. Steamer Herald 14 Bales 9243 cwt. C. Day, Cincinnati 46 22 415 94 Penna. R. R. // H u It n n S. B. Dart 11 170 Bbls. Flour 2 Hhds. Tobacco 10 Hhds. Hams 200 B. Flour 9 Bales W. Wade, New York R. Owens, Philada. Webb & Co., N. York Beck & Co., N. York J. Pope, St. Louis 8 50 93 50 2 2 10 i l! 10 10 60 25 65 128 25 Penna. R. R. 300 Bbls. Crude Oil Pike & Co., Baltimore 30 105 Or, if our arrangements require us to charge the boat or company by which we forward, take the second entry : Penna. R. R. Co , Dr. to Sundries .... $93.50 To Cash paid P. F. W. & C. R. R. on 170 Bbls. Flour 85. // Commission, forwarding same .... 8.50. If we collect of the conveyance, we debit cash for the amounts so collected. Credits as above. In extensive business, this book must be paged and the consignees' names indexed. The index will be of the common form, and lettered in the beginning of the book. 189 DUFF'S BOOK-KEEPING. RATES OF STORAGE • ALLOWED BY THE CHAMBER OF COMMERCE OF PHILADELPHIA WHEN NO SPECIAL AGREEMENT IS MADE, OR NOTIFICATION GIVEN.— CHARGEABLE PER MONTH. Almonds, per bale Ashes, per bbl. Bale Rope, per 100 lbs Barilla, per ton Bark, Quercitron, per hlid. . Bottles, per gross . Burr Stones Butter, per keg Candles, per box 25 lbs // Sperm, per box Cassia, per box // per 100 lb mats Champagne, in baskets, per doz. Cheese, per 100 lbs . . . Coal, in shed or yard, i per bushel. Cocoa, per 100 lbs . Codfish, per drum // loose, per 100 lbs Coffee, per hhd. . . . . // in 100 lb basrs Copper sheathing, per case . // rods,perl001bs Cordage, per 100 lbs Corks, per bale . . . . Cotton, per square bale II per round bale Duck, per pack, 2 bolts Dyewoods, Braziletto and Nica- Ground I Cellus Floor or lofts. Cents. I Cents. 10 7 2 30 30 8 li 8 6 1* 25 25 6 I f h 1 5 12J 1^ 2 12^ 20 1* 12* 12* 2 12 12i 15 1* ragua, per ton /; 50 25 20 other kinds, per ton Earthen and glass ware, per hhd. Figs, per drum Fish, per barrel . Flax, per 100 lbs . . . Flax seed, per tierce Flour, and other clean barrels . Ginger, per 100 lbs Grain and seed, in bulk, per bushel Hams, per hhd. . Hay, per bale .... Hemp, loose, per ton // in bales, per 100 lbs Hides, each Hoops, in yard or wharf, 15 c. per 1000 Hops, per bale . . .10 Horns, per 1000 . . . .50 Indigo, per seroon ... 6 per case, . . . .12 JL 4 5 2* 9 3 2i 3. 4 15 12* 75 2 1 n 3 4 4 10 u IJ l2^ 10 1 15 1 10 10 1* 10 10 12 1 37* 1:10 15 I 4 2 7 2 2 11 10 62^ f 8 37* 5 10 Iron, bloom, or pigs, per 1000 lbs // bars .... // hollow ware Lard, per keg .... Lead, in pigs, per 1000 lbs // in sheets, // in oil or dry Leather, per side Lemons, per box Oronnd Floor. Cents. 8 10 20 1* . 7 10 15 ^f 2 Lumber, in yard, per 1000 feet 12* c. Madder, per hhd. ... 25 Molasses, per hhd. . . .25 // per tierce . . .18 // per barrel . . .6 Nails, per 1000 lbs . . .15 Naval stores, per barrel . . 6 Oil in casks, per 100 gallons . 20 Oil in baskets, per dozen . . f Pepper and Pimento, per 100 lbs 1* Plaster, not under cover, 10 c.pr ton. Provisions, per bbl. . . .6 Quicksilver, per flask . . IJ Raisins, per keg . . . .1^ // per box ... * Rice, per tierce . . . .12 Salt, per bushel ... f Saltpetre, per bag . . .1^ Segars, per 1000 ... 1 Steel, per 1000 lbs . . .10 Staves, io yard or wharf. for pipes, per 1000, 25 c. Sugar, per hhd 25 Sugar, per bbl. ... 5 // per box, under 500 lbs . 6 II other packages 100 lbs . 1^ Tea, per chest . . . .4 Tin, block, per 1000 lbs . . 10. // sheet, per box ... 5 Tobacco, Ohio & Maryland, p. hhd. 25 // other kinds . . 30 // manufactured, per keg 3 // per seroon . . .4 Wines and Liquors, per cask of // 130 to 150 gallons . 30 // less than 130 gallons . . 25 // not over 63 // . 12 ^ // not over 35 k . .6 // not over 20 # .5 // per dozen bottles . . 1 CcUarf or lofts. CsifTa. 6 8 15 1 5 8 11 I 20 20 14 5 10 4 15 4 1 1 I 10 i u 1 8 20 4 4^ U 3 8 I 20 22 2 3 25 20 10 5 4 .1 All nuTchandise taken on storage pays for one month, and it is chargeable with another month if it remains one day after this time. The owners of the goods pay all charges for storing, tiering reasonably high, and for delivering. 190 DUFF'S BOOK-KEEPING. RATES OF COMMISSION ESTABLISHED BY 'IRE CHAMBER OF COMMERCE OF THE CITY OF PHILADELPHIA, WHEN NO SPECIAL AGREEMENT EXISTS, ON INLAND AND FOREIGN BUSINESS. PKR CT. Merchandise, for selling, on the total amount (Foreign) . . • -5 // (Domestic) . • • - ^l for purcbasing and shipping, or accept- ing bills for purchases, on cost and charges . . . • • 2| for receiving and forwarding,ow the value J on responsibilities incurred for same . 2^ Vessels, for purchasing or selling, 07? the gross amount . . . • 2\ for chartering to proceed to another port or for procuring freight . . 2| for collecting freight or general ave- rage, on the amount collected . .2^ paying for repairs, outfits, or disburse- ments, 071 the total amount . . 2i Marine Insurance, for effecting, when the premium does not exceed 10 "^ ct., on the amount covered . . h if the premium exceed 10 "^ ct, on the amount of premium . ... 5 settling and collecting losses without litigation, on the amount collected . Fire Insurance, for effecting, on the amount of premium . . .5 for adjusting and collecti;;g losses, on the amount collected . . .1 PEK CT Inland and Foreign Bills of Ex- change, endorsing or drawing and negotiating, in every case, on the pro- ceeds . . . . • • 2i for purchasing without endorsing, on cost and charges . . • • f for selling, on the net proceeds . . i for collecting, on the amount collected i for paying over, on the amount paid . \ for remitting, on the amount remitted \ Specie and Bank Notes, Drafts and Public Stocks, for selling, on the proceeds . . . • -2 for purchasing, on cost and charges . i Public Stock, for collecting dividends, on the amount collected . . i Advancing money, or for accepting bills, in all cases on the amount ad- vanced or accepted . . . 2i Collecting claims on insolvent estates or litigated or disputed accounts, on the amount recovered . . .5 Receiving and Paying all moneys from which no other commission is rec'd 1 Receiving '/ .... I Paying '/ . . . . ^ Guarantee, in every case . . -21 All consignments of merchandise withdrawn or re-shipped are subject to full commission to the extent of all advances and responsibilities incurred, and to half commission on the current value of remainder. For selling merchandise previously consigned to another house, but withdrawn from them, when no responsibilities are incurred, only half commission is to be charged upon the cur- rent value, such value to be determined in all cases by the certificates of two competent merchants or brokers. Bills remitted for collection under protest for non-acceptance or non-payment are subject to half commission only. The above commissions are exclusive of storage, brokerage, guarantee, and all other ex- penses incurred. Unless he order Insurance, the risk of loss by fire, robbery, and all other unavoidable risk, is with the owner of the consignment, ordinary care being taken by the consignee to secure it. 191 < I / DUFF'S BOOK-KEEPING. RATES OF COMMISSION ESTABLISHED BY THE CHAMBER OF COMMERCE OF THE CITY OF NEW YORK, WHEN NO SPECIAL AGREEMENT EXISTS TO THE CONTRARY. \_ExtTacted from the Minutes, Vol. II., pp. SO and 30. '\ FOR INLAND BUSINESS. PER CT. Merchandise, for buying, selling, ship- ping, or accepting for purchases without funds in hand to cover the 2J 1 * h same ..*••• Stocks, for buying or selling Specie, i> h . . Bills of Exchange, selling without en- dorsement ..... Bank Notes, or Drafts, uncurrent, for selling ..... Bills of ExcHANGE,endorsing and selling 2^ Vessels, purchasing or selling . . 2^ chartering, to take in cargo at other ports ...... procuring freight .... collecting freight .... outfits, repairs, and disbursements collecting general average 2* 2i^ 2* 2* 2i on Kemittances in Bills, in every case Receiving and forwarding goods, the value of the same when the same is entered for duty or debenture ..... Collecting dividends on stocks . Collecting Bills, and paying over the amount ..... Receiving and Paying money upon which no other commission has been received ..... Collecting and Settling Insurance losses ....... Marine Insurance, for effecting, in every case' where the premium does not exceed 10 "^ ct., on the amt. covered when the premium exceeds 10 "^ cent., on the amount of premium PER CT. ^ i 2i FOR FOREIGN BUSINESS. PER CT. Merchandise, for selling for buying and shipping with funds in hand, on the total amount of cost and charges . . . . . 2J Stocks, for purchasing or selling . . 1 Specie, '/ w . . § Bills, Drawing or Endorsing, in every case . . . . . .2^ Vessels, purchasing or selling . . 2J for procuring freight . . .5 collecting freight on general average 2\ repairs, outfits, or disbursements, with funds in hand . . . . 2i Marine lNSURANCE,for efiecting, in every case where the premium does not exceed 10 "^ cent., on the amount covered .....* PER CT. Marine lNSURANCE,for efiecting, in every case where the premium exceeds 10 "^ cent., on the amount of livemmm 5 Dividends on Stock, for collecting . \ Litigated or delayed accounts, col- lecting . . . . . .5 Insurance Losses, adjusting and col- lecting . . . . . . 2J Receiving and paying money upon which no other comm. is charged . 1 Remittances in Bills, in every case . \ Landing and re-shipping Merchandise from vessels in distress, on the value 2J Receiving and forwarding Merchan- dise entered at the Custom-House, on the value . . . . .1 on all responsibilities incurred for the same ..... 2^ The above comnjissions are without guarantee of debts for sales on time, brokerage, storage, and all other charges incurred. In the absence of instructions for insurance, the risk of loss by fire is always borne by the proprietor, as also the risk of loss by theft, rob- bery, or any other unavoidable accident, provided ordinary care be taken for the security of the property. Bills remitted for collection and returned under protest for non-acceptance, or non-payment, are subject to the same commission as when duly honored. All consign- ments of merchandise withdrawn or re-shipped are subject to full commission, to the extent of the advances or responsibilities incurred, and to half commission on the balance of value. 192 DUFF'S BOOK-KEEPING. RATES OF STORAGE chargeable monthly, established by the chamber of commerce of the CITY OF new YORK, WHEN NO PRIVATE AGREEMENT EXISTS. {Extracted from the Minutes, Vol. II., p. 31 to 34,'] CENTS. Almonds in packages, per cwt. . . 6 Alum in bags or casks, per ton . . 40 Ashes, pot or pearl, per bbl. . . 8 Beef do. . . .6 Bottles, quart, in crates or hampers, per gross . . . . . .8 Bark, Quercitron, in casks, per ton . 60 Bagging, in bales or loose, per piece . 3 Butter, in firkins of 60 K), per firkin . 2 Cocoa, in bags or casks, per cwt. . 2^ Chocolate, in 50 lb boxes, per box . 2 Candles, in 50 to 60 lb boxes, per box 2 Coffee, in casks, per cwt. . . .2^ do. in bags, per cwt. . . -2 Copperas, in casks, per ton . 40 Copper, in pigs, do. . . 20 do. in sheets or bolts, do. . . . 30 do. braziers' bottoms, do. . . 75 Cordage . . . do. . . 50 Cassia, in boxes or bags, per cwt. . 10 Cotton, American, in square bales 300 lbs 12 J do. do. round bales . do. E. I., in bales, per 300 lbs Cheese, in boxes or loose, per cwt. Duck, heavy, per bolt do. Ravens, or Russia sheeting, per piece . . . • • Dry goods, in bales or boxes, per 40 cubic feet . . Earthenware, in crates of 25 to 30 ft. . do. in hhds. of 40 to 50 ft. . Fish, pickled, per bbl. do. dry, in boxes or casks, per cwt. . do. in bulk, per cwt. Figs, in frails or drums, per cwt. Flax, per ton ..... Flax seed or other articles, in casks of 7 bushels ..... Flour, or other dry articles, per barrel Grain, in bulk, per bushel . Ginger, in bags, per cwt. Glass, window, in 50 feet boxes . Hemp, per ton ..... Hides, dried or salted, per hide . Hardware, in casks or cases, per 40 feet cubic . Indigo, in boxes or seroons Iron, in bar or bolts, per ton 16 9 3 n 40 15 30 6 4 2^ 2J 60 10 4 1 2 75 n 40 4 20 cEsm. do. in hoops, sheets, or nail rods, per ton 30 Liquors, in puncheons of 120 galls., per puncheon ..... Liquors, in quarter casks do. in pipes 120 gallons do. bottled in casks or boxes, per dozen .... Leather, per side . . . • Lard, in 60 lb firkins .... Lead, in sheets or pigs, per ton . do. ground in oil or dry, per ton Molasses, in 110 gallon hhds. Other casks in proportion to their size. Nails, in casks, per cwt. Oil, in 110 gallon casks or hhds. do. in 30 flask chests, per chest . do. in baskets, per dozen bottles Paints, in kegs or casks, per ton . Pork, per barrel .... Pepper, in bags, per cwt. Pimento, in casks or bags, per cwt. Rice, in tierces, per tierce . do. in half tierces, per half tierce Rags, in bales, per cwt. Raisins, Malaga, in casks . do. in boxes . do. other packages, per cwt. Saltpetre, in bags, per cwt. . do. in casks, per cwt. Salt, in kegs or bulk, per bushel . Shot, in casks, per ton Soap, in 50 or 60 R) boxes, per box Steel, in bars or bundles, per ton do. in boxes or tubs, per ton Sugar, in boxes or bags, per cwt. do. in casks, per cwt. do. refined in p'kges or casks, per cwt. Tallow, in casks or other packages, do. Tea, Bohea, in whole chests, per chest do. in half chests . do. green or black, in qr. chests do. other size boxes in proportion Tin, block, per ton .... do. in the usual sized boxes, per box . Tobacco, in hhds., per hhd. do. in bales or seroons, per cwt. . do. manufactured, in 100 lb kegs Woods for dyeing, under cover, per ton do. in yards, per ton Whiting, in hhds., per ton 30 ^\ 30 li 1 2 20 40 30 o 30 4 li 40 6 2J 2* 12 8 6 3 1 2 2 2J 1 37* 2 30 40 2 2i 3 2 15 8 4} 20 U 371 4 2 50 25 37 i to th« turn- taken oat DUFF'S BOOK-KEEPING. <• THE QUANTITY OF GOODS TAKEN FOR A TON IN - FREIGHTING VESSELS. Extract from the By-Laws of the Chamber of CoMxMerce of the City of New York. Resolved, That when vessels are freighted by the ton, and no special agreement is made between the owner of the vessel and the freighter of the goods, respecting the proportion of tonnage, which each particular article shall be computed at, the following regulations shall be the standard of computation. That the articles, the bulk of which shall compose a ton, to equal a ton of the heavy materials, shall be in weight as follows ; 1568 1830 1120 1307 952 1110 8 6 20 16 12 6 7 8 200 22 36 36 31 29 40 1 10 8 10 8 lbs of Coffee in casks, lbs of Coffee in bags, lbs of Cocoa in casks, lbs of Cocoa in bags, lbs of Pimento in casks, lbs of Pimento in bags, barrels Flour, 196 lbs each. do. Beef, Pork, Tallow, Pickled Fish, Pitch, Tar, and Turpentine, cwt. Pig and Bar Iron, Pot Ashes, Sugar, Logwood, and all heavy Dyewoods, Rice, Honey, Copper Ore, and all other heavy goods, cwt. Coffee, Cocoa, and Dried Fish in bulk, cwt. Dried Codfish, in casks of all sizes, cwt. Ship Bread, in casks, cwt. do. in bags, cwt. do. in bulk, gallons Wine measure (on the full capacity of the cask) of Oil, Wine, Brandy, and all other Liquors, bushels of Grain, Peas, or Beans, in casks. '/ // // in bulk. European Salt, in bulk. Salt from the West Indies. // Sea Coal, feet (cubic) of Mahogany, Square Timber, Oak Timber, Oak Plank, Pine, and other Boards, Beaver, Furs, Peltry, Beeswax, Cotton, Wool, and Bale Goods of all kinds, hhd. of Tobacco, cwt. Dried Hides, cwt. China Raw Silk, cwt. Net Bohea Tea. cwt. Green Teas. 194 DUFFS BOOK-KEEPING. PART III. 19S I DUFFS BOOK-KEEPING. PART III. COMMERCIAL CALCULATIONS, COMPREHENDING ABBREVIATED METHODS OP PRACTICAL COMPUTATION, SETTLEMENT OF ACCOUNTS, &c. NOT FOUND IN COMMON ARITHMETICS. ADDITION. Young accountants, though good arithmeticians, often experience difficulty in addinir up long columns of figures with certainty. Such persons will find the following method useful : Set down upon waste paper the sum of each column under each other, addinir downwards for proof, and if found correct, point oflf the right hand figures, carrying the left to the next column, thus: 4796.27 4.1 9832.39 37 325.41 1 9 9800.99 04 4723.78 3:5 70.87 29 Mark off" the two upper places in the column of amounts, for cents. Read the figures marked off at the right upwards — 29549.71, the total product. Any persevering student can in a few weeks attain a high degree of proficiency and accuracy in addition by writing out long columns of figures upon slips of paper, say sixty or seventy figures in length, and practice adding them for half an hour, daily. By this means of regular d;iily exercise, the student can ultimately attain such a facility of addition as to enable him to add several col- umns of figures at once. Take the above four columns of dollars, and carrying 3 from the cents makes the first amount read 73 ; 73 and 4723 are 4796 ; 4796 and 9800 are 14596. and so on to the head of the column. The student must practice first upon short columns, such as will require but little carrying. As he uses longer columns, carrying becomes un- avoidable, but the eye soon becomes accustomed to the reiding process in figures as well aa letters. It only requires time and application to acquire it in either. 197 DUFF'S BOOK-KEEPING. ON COMMERCIAL CALCULATIONS.— PART HI. I PBOFIT AND LOSS. Under this head we shall confine ourselves to exercises upon the rule for determining the per centage gain or loss upon a merchandise account. See pp. 33 and 36. Example 1. Purchases of merchandise for $11400.25. Sales effected in seventy-three days, 69400.84. On hand, 83400.84. Kequired the total gain, the average daily sales, the average gain per cent, and the average daily profits. \nswer. Total gain ...... $1401.43. Average daily sales * . . . 128.78, nearly. Average gain per cent 17^, nearly. Average daily profits . . . . 19.19-f-. Ex. 2. Suppose the purchases $12405. Sales effected in 150 days, $7609. On hand, $6800. Required the total gain, the average gain per cent, the average daily sales, and the average daily gains. Ans. Total gain. $2004. Average gain per cent. $35-j^jW. Average daily sales, $50.72f . Average daily profits, $13.36. Ex. 3. Purchased, $8000. Sold in 90 days, $5000. Amount on hand, $4000. Re- quired the daily average sales, the daily average profits, the total gain, and the gain per cent. Ans. Total gain, $1000. Daily sales, $55.55|. Daily profits, $11,111^ and 25 per cent. gain. Ex. 4. Purchased, $4226. Sold in 60 days, $1585. Remaining on hand, $3202. Required the daily average sales, the total gain, the daily gain, and the gain per cent. Ans. Total gain, $561. Daily gain, $9.35. Daily sales, $26,416. Average gain, 54|5J per cent. Ex. 5. Purchases, $6895. Sold in 36 days, $4011. On hand, $2223. Required the total gain or loss, the daily sales, the daily gain or loss, and the gain or loss per cent. Ans. Total loss, $661. Daily sales, $11 1.41i. Daily loss, $18.36^, and 14 -{-percent, loss. The same rule gives the per centage gain or loss upon any amount of sales. Ex. 6. Bought candles at 13 cents and sold them at 16 cents. Required the gain per cent. Ans. 23^3 per cent. Ex. 7. Bought sugar at 5J cents *^ lb and sold it at 7i cents. Required the gain per cent. Ans. 36j'*j per cent. Ex. 8. Bought molasses at 25 cents *^ gal. and sold it for 23 1 cents. Required the loss per cent. Ans. 5 per cent, Ex. 9. Bought cloth at §2.622 and sold it at $3.10. Required the gain per cent. Ans. ISj^y per cent. Ex. 10. Sold merchandise at 10 per cent, advance on the first cost, from which I deduct 5 per cent, from the face of the invoice for prompt payment. Required the net per centage gain. Ans. 4^ per cent. Ex. 11. Sold merchandise at 30 per cent, advance ; from the face of the invoice deducted 20 per cent. Required the net per centage gain. Ans. 4 per cent. Ex. 12. Sold merchandise at 50 per cent, advance on the prime cost. Allowed the retailer 40 per cent, discount on the face of the invoice. What is my net per centage, gain or loss ? Ans. 10 per cent. loss. Ex. 13. A manufacturer sold his productions by retail at 25 per cent, advance on the cost of production. He gave up the retail business, and agreed to furnish retailers at 20 per cent, discount upon his retail prices. Required his net per centage gain. Ans. Nothing. Note. — The effect of discounts in such cases as the above is often overlooked by the inexperienced. The results of these esampies 6bu'Hi the practical importance of understanding the matter. -tno TO FIND COMMISSION AND BE0KEEA6E. RULE. — For 1 per cent, point off two places, and for 10 per cent, point off one place, to the right of the given sum. Take aliquot parts for the intermediate rates. Ex. 1. Required I per cent, brokerage on $1268. Ex.2, Ex. 3. Ex.4. Ex.5. Ex. 6. Ex. 7. Ex.8. Ex.9. // ff II II If II It It 1 4 I 1 li 5 7i 10 It It 1842. tt n 850. u . 899, u commission on 1668.88. It H 248.44. // n 1499.90. It ff 664.40. // n 779.49. Ans. $3.17. Ans. 9.21. Ans. 6.375. Ans. 8.99. Ans. 20.861 Ans. 6.211 Ans. 74.995 Ans. 49.83. Ans. 77.949 Ex. 10. Received $5000 to invest in a bill on New Orleans, which I purchase at par. Required the amount of the bill, and also my brokerage, which is ^ per cent, on the bill. Ans. Bill, $4975.124. Brokerage, $24,876. Ex. 11. Received $3000 to invest in a bill, which I procure at 2 per cent, discount Required the amount of the bill, also my brokerage, which is \ per cent, on the face of the bill. Ans. Bill, $3045.68+. Brokerage, $15.23, nearly. Ex. 12. Net proceeds of J. Taylor & Co.'s sales, $2639. They desire the amount in- vested in a bill on New Orleans, and remitted them. Bills are 1 per cent, premium. My brokerage is i per cent, on the investment. Required the amount of the bill. Ans. 82600. Ex. 13. Remitted my correspondent in Mobile, $6000, to be invested in cotton. His commission is 5 per cent, on the investment. Required the amount of the invoice and his commission. Ans. Invoice, $5714.29. Commission, $285.71. Ex, 14. Received from Gr. Page, $9000, to be invested in hops. My commission for purchasing is 2 J per cent, on the investment. Required the amount of my invoice and my commission. Ans. Invoice. $8780,49. Commission, $219.51. ON INTEEEST. The legal rate of interest in Pennsylvania, New Jersey, Delaware, Maryland, A'irgiaia^ North Carolina, Tennessee, Kentucky, Ohio, Indiana, Illinois, Missouri, Arkansas, District of Columbia, and on all debts due the United States, is 6 per cent. In New York, Michigan, Wisconsin, Iowa, and South Carolina, it is 7 per cent. In Georgia, Alabama, Mississippi, Texas, and Florida, it is 8 per cent. In Louisiana it is 5 per cent. In England and France, 5 per cent. In Canada, Nova Scotia, and Ireland, it is 6 per cent. When the rate of interest is above or below 6 per cent,, first find the interest at 6 per cent., then add or subtract the difference, viz. : For 5 per cent, deduct i, for 7 per cent, add i, and for 8 per cent, add i of the interest found at 6 per cent, TO FIND THE INTEREST AT SIX PER CENT. FOR MONTHS. RULE I. — Remove the decimal point two places to the left in the principal, then multi- ply by half the number of months. The product is the interest required. 199 DUFF'S BOOK-KEEPING. TO FIND THE INTEREST FOR DAYS. RULE II.* — For 60 days, point off two places in the principal, and it becomes the in- terest. For 6 days, point off three places, and the principal becomes the interest. For 5, 10, 15, 20, 25, 30, &c. days, take aliquot parts of the interest found as above for 60 days. For other numbers, multiply the interest found as above for 6 days by i the given number of days. The product is the answer. Example 1. Required the int // 2. // II » 3. It » 4. It » 5. n w K 6. n 7. It tf 8. II a 9. n H 10. It n 11. It B 12. It n 13. It II w 14. II » 15. w 16. w 17. II w 18. II w 19. II It 20. II tt 21. If n » 22. u II M 23. II tt 24. » 25. If 26. n H 27. H 28. H 29. w 30. » 31. It 32. n 33. u 34. II It 35. n 36. It 37. It 38. It 39. It 40. 1. It 41. n 42. w 43. ti 229.70 664.40 712.60 964.30 667.60 1267.70 1461.12 48.48 194.14 3344.20 1616.60 1718.80 2120.40 412.12 1886.18 1854.54 1794.92 1763.30 2788.80 5. 7. 180.48 284.60 363.24 1216.40 1890.90 2412.64 1518.90 1920.60 1266.48 2424.66 1098.48 726.24 960.48 1566.96 1399.97 1224.12 369.18 96.84 636.69 224.42 846.60 for 1 month. 2 mos. 3 4 5 6 7 8 9 10 11 12 16 2 years and 1 mo. 2 // 3 2 // 3 I, 4 // 4 // 4 I, 60 days. 6 5 10 11 <15 20 22 25 30 33 35 40 44 50 63 66 1 2 7 8 12 13 9 8 5 8 10 Ans. II II II It If n II II II II II It It II It If II II II n n n II If II II II II II II $2.24t 2.297 9.966 14.25t 24.107t 20.028 44.369t 58.444t 2.181t 9.707 183.931 96.996 137.504 265.05 55.636t 311.219t 407.998t 475.653t 493.724 808.752 .05 .007 .151 .391 .665t 3.041 6.303 8.846t 6.328t 9.603 6.965t 14.l43t 7.323t 5.325t 8.004 16.453t 15.399t .204t .123} .112t .848t .448t 1.834t ned by judicial decisions, and it is almost universally * This Rule, though admitted to be slightly inaccurate, has been sustai nsod by merchants in this country. It is based on the supposition of the year being divided into twelve equal months of .30 daya each— 360 days. It therefore gives the interest j^s = jj part too much. 200 Example 44. // 45. " 46. /' 47. // 48. '/ 49. /' 50. ON COMMERCIAL CALCULATIOJS^S.— PART III. Ans. Required the interest of $960.84 for 17 days 1236.18 // 19 1122.22 // 27 1860.48 // 29 246.24 // 37 II It N If ft II II « 321.21 // 39 9666. II 40 II II 11 If If II II 82.722-f- 3.914-j- 5.049-f- 8.992 -f- 1.518-j- 2.087+ 64.44 Februafy *27.'^ "''' '"' "^"^'^ ^'"""''^ ^^' ^^^^' ® ^^ ^^^'' ^^^"^^^^ *^« unexpired time, Ex. 52. A note dated March 30, @ 90 days. Required the unexpirtd^'Le^ Mt723. UuJ!: ^ ""'" ^'''^ ^^'' ^'''^' ® ^ "^^^^^- ^«^-^^d '^^ "°4rred tfme^oTihe February 1, 1^85^ '''"' ^''''" ''' ''''' ® ' "^"^^^^ ^^^"^^ thfunexpiredTme, Ex. 55^ ' A note for $1368.72, dated 10th September, 1852, having 12^monthfto'^ruo is discounted on the 21st October. Required the interest in the unexpired tTme. ' Due OPERATION. Tear. Month. 1853 . . 9 . . 1852 . . 10 . . Day. 13 21 10 . . 23 unexpired time.* Ans. Interest on the same, S73.682-f-. Ex. 56 A note for $360, dated May 31, @ 6 months, is discounted September 14 Required the unexpired time and interest for th^ time. (September 14. Ex, 57 A note for 1960.96, dated 30th Juot @ 9oX'is dlLlnlTS'teTr 9 Required the unexpired time and the discount. i^^^ounrea September 9. Ans. Unexpired time, 22 days. Discount, $3.5234-. It now remains to notice what is called Partial Pavments— wher^ nnf^Q nr \.r.r.A -j by ..stallmentB. There are two rules for computing'thHaterSt such cl^""'' "" f"^ thp^n iTti!^''^'"'?'? KULE.-Find the amount of the principal at the date of settlement • s s,^trr.£;s.&r"Ar^t=tii ■air-' "'"■- •=- This is the. principle upon which Morris' Account Current is settled. (Page 114.) II. The Legal Rule.— Compute the interest on the principal to the time of th^ fi,«* amC?ofT y^y'^r'T'- ''^''^ '"S**"' "^''^^ the interest then ir From the amount of the principal and interest subtract the payment. The remainder i^thT principal. Proceed in the same manner with all subsequent payments '^' "*' The Courts of the United States and most of the State Courts have adopted this rul^ of^.1 'T °n'""?'"'"""'°*' '" Arithmetic will have any difficultTrnapplyt/etW tW wni ntf" 9"7»'ject m introducing them here is to show the widely d'Et%e^uL !^^t^tds^:ii^m*^r;Se^ ^^'^"'^ transaction, which ,^^ * See note on page 200. 201 DUFF'S BOOK-KEEPING. Bond for $900 on interest at 6 per cent, commencing May 8, 1838, was settled Sept. 8. 1852. Payments as follows, viz : 8, 1839 4, 1839 . 9, 1840 10, 1840 . 15, 1841 25, 1841 . 12, 1841 2, 1841 . 19, 1841 1, 1841 . 1, 1841 7, 1841 . 16, 1842 24, 1842 . 27, 1845 6, 1846 . 14, 1846 20, 1847 . 2, 1848 4, 1848 . 4, 1848 30, 1848 . 15, 1849 1, 1850 . 7, 1852 Upon computing the interest on the ahove transaction by the Me^«/fti\I^"l« '^}ZIV balance due on the mortgage of $88.07. By the Legal Rule we find the balance $266.37, making a difference in the settlement of this $900 mortgage of $178.30. It niust be ad- mitted! however, that the annual rests usually made by merchants in settling accounts would have made a difference in favor of the creditor ; but as these rests were not made at tte proper time we could not go back into the account and make them afterwards. It is to be observed, however, that the Legal Rule, in this and all similar cases, gives the creditor compound m- tercBt in its most exacting form, as every time the debtor makes a payment the interest is compounded against him. I could have adduced many other examples to show in the most strTking manner, the difference resulting from these different methods of computing interest -to show that the difference is always increased in an accelerated ratio as the payments are multiplied or the time prolonged. In the case of Clancert^ vs. Latouche 1 Ball & Beat 420 the difference resulting from the different methods of computing interest was about £24000 sterling. It may be asked what remedy is to be proposed in the confusion and un- certainty that Lists in the law relating to this matter? We answer, None. It is only proposed to make all concerned aware of the difference resulting froni the two methods, and leave the parties interested to govern their transactions accordingly If I mistake not the law allows the debtor, when paying money to a person to whom he is indebted on two accounts, to appropriate the payment to the discharge of whichsoever account he plea^es- the one ;hich is the most burthensome to him, the one which bears mterest-provided he makes his election at the time of payment. If he does not do so the creditor can make h s election, and will, of course, apply the payment to discharge the interest first and tbe surplus to paying the principal. If neither party makes an election I believe the law will do it for them, and will apply the payments to discharge that debt which bears hardest upon the debtor. It will be see^ that the debtor on the above mortage made eight payments upon it m one year, and the creditor, availing himself of the Legal Rule at the time of settlement com- pounded the interest Against him eight times in that year. Nothing but ignorance of the 202 1st payment , May 2d II June 3d II Jan. 4th II June 5th II Jan. 6th II May 7th II June 8th II July 9th II Aug. 10th II Sep. 11th II Nov. 12th II Dec. 13th II Feb. 14th II Sept. 15th II Oct. 16th II July 17th II Oct. 18th II Mar. 19th II Alar. 20th II May 21st II July 22d II Sep. 23d II Apr. 24th II Mar. 25th II Sep. 86. . 50. 104. . 28. 50. 6. 5. . 20. 20. . 15. 10. . 10. 19. . 80.50 25. . 50. 25. 40. 20. . 35. 43.50 . 58. 48. 9. ON COMMEECIAL CALCULATIONS.— PAET IIL consequences would permit any debtor to make payments in such a manner. What I have now stated will, it is to be hoped, make the matter fully understood. ADJUSTMENT OF INTEREST, GAIN, LOSS, &c. For Rule see page 180. Example 1. Kay^s paid up capital for 12 months is He drew out for 6 months . Long's paid up capital for one year was He drew out for 5 months . 8600. S800. $12000. $14000 ^ Required the Journal entry for adjusting the interest between the partners without pass- ing it into the interest account. $59. Answer. Kay Dr To Long ^59. Ex. 2. C. paid in $8000 for 1 year and drew out $400 for 9 months. D. paid in $16000 for 1 year and drew out 8800 for 3 mos. and $400 for 8 mos. E. paid in $14000 for 1 year and drew out $11000 for 4 months. F. paid in $11000 for 1 year and drew out nothing. Required the Journal entry for adjusting the interest between the parties. Ans. Sundries, Dr. to D $263.50 C . $206.50 E • . . . 48.50 ^ 8.50 The same rule will adjust lost time between mechanics who are in partnership. Ex. 3. Three mechanics, X., Y., & Z, equal partners in their business, with the under- standing that each is to be charged with $1.50 per day for all lost time. At the time of settlement it was found that X. had lost 24 days, Y. 6 days, and Z. 32 days. Required the Journal entry for adjusting the matter between them. Ans. Sundries To Y §22. -^* • • • • . . . $ 5. Z 17. Ex.4. N.is |,0.§,P.|,and Q. f, proprietors in the business. N.lost 24.0. 48, and P. 6 days. Q. lost no time. Each was chargeable with $1.50 per day for lost time. Required the Journal entry for adjusting the matter. Ans. 0. To Sundries $42.75 N $7.87 II P. 5.63 '' Q- . 29.25 Ex. 5. R., S., T., & U. dissolved partnership, and divided all their effects, when it was found that the following balances were due to each, viz. : n. . . , $760. T. . . . $582. ^*^ 470. U 680. The books were kept by single entry. The partners are equal in gain or loss. Required the Journal entry that will be made when the sums are paid and received for final settlement. Ans. Sundries To Sundries . . $194. ^ $137. U 57. ToS §153. '' T 41 Ex. 6. v., W.,&X. dissolved partnership, and after dividing all their effects there was a balance due V. of $940 ; due W. $90. X. was indebted $140. The firm owes a note of 8268. 203 DUFF'S BOOK-KEEPING. The partners are equal in gain or loss. Required the sums to be paid and received among the partners, which will leave them all to share equally in the loss, and take up their note. ^ Ans. Y. receives $554. W. pays $296. X. pays $526. Journal entry when the money is paid and received : Sundries To Sundries, $822. Bills Payable, for note taken up V. for amount paid him $268. 554. To W., for amount refunded // X. // // $296. 526. Ex. 7. G-. is I, H. is i, I. J, and J. i, partners in business. After dissolution and divi- sion of all their effects, their accounts stood as follows : — Balance due Gr. is $28, H. $84, I. is indebted to the firm $44, and J.'s account is balanced. Required the Journal entry that will be made in the books of the firm, when the amounts are paid and received, for the final settlement between the partners. Ans. Sundries To Sundries, $78. VT. .... H. .... To I. . . . II J. $2.50 75.50 $61. 17. Ex. 8. K., L., M.,and N. partners in business, kept their books by single entry, and after dissolution and division of all their effects, they find their accounts standing as follows upon their books, viz. :— There is a balance due K. of $280; due L. $840 ; M. is indebted to the firm $440 ; N.'s account stands balanced. K.'s original capital was $3400; L.'s, $1200; M.'s $2220 ; and N.'s, 82180. The profit or loss was to be divided in proportion to the original paid' up capital. Required the Journal entry that will be made in the books of the firm, when the amounts are paid and received, to effect the final settlement between the partners. Ans. Sundries To Sundries, $772.44 K. for amt. received L. " " • • To M. for amt. paid in . // N. // If $23.11 749.33 $607.73 164.71 Ex. 9. C. Rush, R. Lyell, and F. Fish, partners in business, kept their books for several years by single entry. They finally closed them, made a dividend of the profits, and re- opened them by double entry, which necessarily exhibited each partner's net capital at this date. Some time afterwards. Rush furnished their book-keeper with an account of $840, which he had withdrawn for his own use from the firm, previous to the closing of the old books and which he had kept a private account of without entering it to his account in the books' of the firm. Rush and Lyell were each i and Fish ^ gain or loss in the business. Required the Journal entry to settle the above $840 between them on their new books. Ans. Rush To Sundries, $630. To Fish $420. // Lyell .... 210. Ex. 10. On July 1, 1853, W. Wood retires from the firm of Hay & Wood. Their Bal- ance Sheet is made out for settlement. We find their Profit & Loss Account Dr. $1280, Cr. ^2450, and their Commission Account is credited $3400, in addition to which it is entitled to 5 per cent, commission on sales effected on the following consignments, which are only partly sold, viz.:— On R. Cargo's sales, which is Dr. for charges posted, $400, and Cr. for gales effected, $7800; due by average May 1, 1853. M. Loder's sales is Dr. for charges posted. $300; Cr. for sales effected, $9400 ; due by average September 1, 1853. ^ Required the Ledger specification exhibiting the disposition of the above consignments, with the commission'^and interest on the same in the partners' Balance sheet. (See Direc tions, page 177.) 204 ON COMMERCIAL CALCULATIONS.— PART III. Then suppose Hay continues the business in his own name and completes the sales of Cargo's goods — total sales, $9800. He also completes Loder's sales — $10,400. The charges posted are, in both cases, as above stated. Under the Ledger specification already made, exhibit Hay's Commission Account, re-opened and credited for the commission on the final settlement of the consignments. Ans. The firm will owe Hay $70.10 int. The student will write out the Ledger specification. BUYING AND SELLING STOCKS, &c. Ex. 1. Required the value of Hudson River Railroad Stock, which makes a dividend of 8% per annum, payable semi-annually, money being worth 6 per cent, per annum, pay- able semi-annually. Solution.— 6 : 100 : 8 : : $133i. Ans. That is, $100 of stock is worth $133 J, or 33i per cent, advance. Ex. 2. What is the value of the Citizens' Bank Stock, which has made a dividend of 5 per cent, per annum? Money worth 6 per cent. Ans. 16§ per cent, discount. Ex. 3. Bought $500 in Exchange Bank Stock, which divides 9 per cent, dividend per annum. Money being worth 6 per cent, interest. I am to pay the amount in Tennessee money which is at 3 per cent, discount. Required the amount of Tennessee money it will take to pay for the stock. ^ Ans. $773.20, nearly. Ex. 4. Sold $2000 of City Bank Stock, which divides 7 J per cent, per annum. Received in part payment $1000 of Winchester Railroad Stock, which divides 4J per cent, per annum. Money worth 6 per cent, interest. Required the balance I am to receive in inoney. Ans. $1750. Ex. 5. London Bridge Stock is said to divide 2 per cent, per annum. Money in England being worth 5% interest. Required the value of this stock. Ans. 60% discount. DOMESTIC AND FOREIGN EXCHANGES. Ex. 1. Bought a bill on Boston, for $780, at 1 % premium. What must I pay for it? TP o T^ 1 -^^s. $787.80. JliX. 2. Bought a bill on New Orleans, for $1680, at f per cent, discount. What must I pay for It? ^j^g. $1667.40. Ex. S. Sold my bill on St. Louis, for $1840, for 1 J% discount. Required the amount I shall receive. ans. $1812.40. Ex. 4. Sold my bill on London, for £450 sterling, for 8 per cent, premium. Required the amount.* ^^^g ^9160. Ex. 5. Bought a bill on London, for £1266 15s.t at 9i% premium. What shall I have to pay for It? Ans. $6164.85. . JliX. b. 1 owe Holderness & Chilton, of Liverpool, $7218, net proceeds of sales of mer- chandise efi"ected for them, which I am to remit them in a Bill of Exchange on London for such amount as will close the transaction, less i per cent, on the face of the bill, for my di^d^^^'T^'' *'^*°^*' ^^^"^""^ '"''"''^ '°*° ^^'^^''*^ currency, multiply by 4f To change Federal currency into sterUng. t If there be shillings and pence, change them into the decimal of a pound, and multiply as before 205 DUFF'S BOOK-KEEPING. commission for investing. Bills on London are 8 per cent, premium. Required the amount of the bill, in sterling, to be remitted. Ans. £1500 5s. Q-fd. Ex. 7. A., of Pittsburgh, sent articles to the World's Fair, in London, which were after- wards sold by B., of London, on A.'s account— net proceeds, £1266 15s. sterling. B. was instructed to invest this amount in Bills on New York, and remit to A., which was accord- ingly done. B. charged i per cent, brokerage, on the face of the bills, for investing, and purchased the bills at 7 per cent, discount. Required the amount of the bill A. must re- ceive in Federal currency to close the transaction. Ans. S6037.53, nearly. We confine our illustrations of Foreign Exchange to Great Britain, because a knowledge of it is necessary to understanding the accounts in this system of Book-keeping. But to treat of Exchange upon all foreign countries would require space which we can appropriate to matters of greater interest to the majority of our patrons. ON COMMEKCIAL CALCULATIONS.— PAET IIL Ex. 2. Insured my ship, the Chieftain, for $65000, to Canton and back, for 4} per c dll it amount to ? Ans. §2762.5i premium. What will it amount to ? Ans. §2762.50. Ex. 3. Insured the ship Ironwood, for $48000, at 2* %, and gave my note for the pre- mium. Before the note was paid the ship was lost, and the insurers paid the loss. Required the amount I received, taking up my note as part payment. Ans. 846800. Ex. 4. Insured the ship Roscoe, (which was worth $47500,) for $45000 at 2 per cent, policy, $1, to Liverpool and back to New York. Freight out was $12500. Expenses at Liverpool, $4500. The ship was lost on her return. The insurance company has paid the insurance. Required each owner's share of the net proceeds of the vessel. W. Hay is i, myself i, and C. Hartwell h. Ans. My share, $13024.75. Hay's, $13024.75. Hartwell's, $26049.50. Ex. 5. I wish to insure merchandise on board the ship Chieftain, for San Francisco. Amount of invoice, $12447 ; cost of policy, $1 ; premium is 2 per cent. Required the pre- mium, and the sum upon which we insure to cover the premium and policy. (See Note 3, page 84.) Ans. Amount to cover, $12702.04. Premium. $254.04. INDIEEOT EXCHANGE Effects a remittance through one distant place to another. It is sometimes termed the Arbitration op Exchange. Ex. 1. I wish to remit George Wildes & Co., of London, £3600 sterling. Exchange on London in New York, is 10 per cent, premium. Exchange on London can be obtained at TT_i:i?__' XT » c! *;„ -p^- Q ^«« ««T>+ vM.ATn^iTn Naw VnrV T?il1s nn Halifax are i ner cent. Halifax, Nova Scotia, for 9 per cent, premium. New York Bills on Halifax are \ per ce discount. If I remit a draft to Halifax, and pay my agent ^ per cent, for investing it Bills on London, what will I gain over the direct Exchange ? SOLUTION. £3600 sterling = $16000 @ 10% prem. = cost of the direct Exchange . . $17,600.00 Halifax Bill on London, @ 9 % + ^% for investing . . $17,520.00 i% discount for New York on Halifax ^^-^^ Cost of the indirect Exchange 17.476.20 Gain «123.80 Ex. 2. I have to remit £6300 to London. New York Bills on London are 10 J per cent, premium. New York on St. John, New Brunswick, f per cent, discount. St. John on London is 9J per cent, premium. If I pay my agent in St. John I per cent, for investing, what will I gain by the indirect Exchange ? Ans. $370.48. INSUEANOE. Insurance is a security given by underwriters or insurance companies to the owners of ships, houses, or other property, to indemnify them in case of loss by fire or shipwreck. The premium is always a percentage on the value insured. The written and printed document held by the party insured as evidence of the contract of indemnity is called the Policy. Ex 1 If I get my house insured for $4500, at 1 J per cent, premium, what shall I pay as premium? Ans. $56.25. ^ 206 SIMPLE EQUATIONS. RULE.— See page 68. Ex. 1. Received from John Fowler, for sale on commission, 900 bbls. flour, upon which paid freight and charges, $14. After charges, storage, 6^^ cts. "^ bbl. Laborers' wages, for storing and hoisting out, $2.50. Commission for selling, 2 J %. Sales effected as follows, viz. : May 1, 40 bbls. @ $4.50, for cash ; II 19, 60 June 2, 150 ft 2, 50 // 11, 500 // 21, 50 II II II II II @ 4.75, on acct. @ 30 days ; @ 4.80, on note, @ 60 // @ 4.50, for cash j @ 4.75, on note, @ 90 days ; @ 4.80, // @30 @ 4.50, for cash. // // 30, 50 Required the account sales showing the net proceeds, and when due. Ans. Net proceeds, $4071. Due, August 13th. Ex. 2. Received from Lyon, Haven k Co. for sale on consignment, 150 bbls. mackerel and 40 bbls. salmon, upon which paid freight and cartage, $190. Labor in storing. $1.70. Commission on the sales, 5 per cent. Sales effected as follows, viz : June 7, 40 bbls. mackerel, @ $12.50, on acct. @ 3 mos. // 19, 10 // salmon, @ 18.75, on note, @ 30 days ; July 1, ^ II II @ 18.00, for cash; // 17, 100 // mackerel, @ 12.75, on note, @ 60 days ; II 29, 16 II salmon, @ 18.75, on acct. @ 30 days. State the account sales, showing the net proceeds, when due by equation, and the balance of goods on hand. Ans. Net proceeds, $2043.175. Due, September 5. Ex. 3. Received from George Carver, for sale on his account, 80 tons Iron. Freiirht and charges paid, $74. Commission for selling, 5 per cent, which was sold as follows :* * The sales being all at 6 months, we may equate between the days of sale. 207 DUFF'S BOOK-KEEPING. May 20, Sold at 6 months, on acct. 12 tons, @ S65 u 31, June 20, n 30, July 11,^ ;/ 11, // 11, H 19, u n H u II II II II II II II II II II It 8 15 18 6 4 8 4 @ @ @ @ 66. 65. 64. 66. 65. 65. 66. We are to pay Carver the net proceeds in a note payable 6 months after date Required the amount of it, and the day on which it must be dated. Also, the account sales, showing the amount on hand. . _- -^ «« /-v i i r> . Ans. Date of note, for 84494.55, June 22. On hand, 6 tons. Ex. 4. Sold John Taylor & Co. : April 30, Invoice of Merchandise, @ 4 months, $620.49 Tt/r^ n' .. .. ^^ ft n 7.^0.50 May n July 1, 30, 1, 11, 11, u » 9 W @ 6 // 730.50 @ 30 days 480.80 (a) 60 ff 560.95 @ 60 // 330.40 @ 4 months, 500.00 Required the day upon which the above account will fall due, by average. ^ "^ Ans. September 16. Ex 5 Received of Charles Page, for sale on his account, 30 hhds. N. 0. sugar, upon which paid freight, 860; cartage, 87.50; storage 89. Commission and guarantee, 5 per cent. Sales effected as follows : Au<-. 1, Sold, on note @ 60 days, 4 hhds. 4660 lbs. less 10 per cent, tare, 5| cts. 30, 30, 30, Sep. 16, u 30, II 11 @ 3 mos. 6 for cash, 3 on acct. @ 60 days, 7 for cash, 4 on note, @ 3 mos. 6 // 5880 / r // It 1 r bi ti // 3390 / 1 n If 1 1 5i // II 6990 / 1 u H 1 / 5f // II 4830 / 1 n H 1 / 5i // II 5960 / 1 tt If 1 / 51 // Required the account sales, exhibiting the net proceeds and the day when the same is due, by average. Ans. Net proceeds, 81424.78. Due, November 1. STOEAGE EQUATIONS. Equation is applied to the storage of property by the following Rule —Multiply the number of packages by the number of days that they have been in store. Divide the product by 30; the quotient is the number of packages subject to one month's storage.^ Ex. 1. I have stored 1500 bbls. flour for 4 days. Required the number of bbls. subject to one month's storage. ^ ^^ «^^ 1 1 1 * ^ Solution.— 1500 X 4 days = 6000 h- 30 = 200 bbls. Ans. bbls. bbls. days. days. Proof— 1500 : 200 : : 30 : 4. TK.-a nnA thfi fwo followin" Bales may be added together and make bnt one product. , . „ j tj n v 5^E -^VherelnumS of pacLSef are received^and delivered at different dates, proceed as in Compound Fellowship. 208 ON COMMERCIAL CALCULATIONS.—PART III. Ex. 2. May 1, Received 200 bbls. flour. " 16, II 300 II n June 1, // 400 u u July 13, // 500 // // 20, // 700 // // Aug May 10, Sold 150 bbls. II 18, II 30 // June 10, M 550 // July 30, // 660 // Aug. 30, // 700 II Required the number of bbls. subject to one month's storage on August 31. Ans. 1269 bbls. Ex. 3. Received the following consignments from J. L. Starr & Co., viz. Sept II II Oct. II Nov 1, Received 15 hhds. sugar. 12, 1/ 80 bbls. molasses. 30, II 30 hhds. tobacco. ^ 6, // 40 H sugar. 20, II 50 bbls. molasses. 30, 11 40 hhds. tobacco. Sept. 20, Sold 12 hhds. sugar. Oct. 1, // 40 bbls. molasses. Nov. 1, // 43 hhds. sugar. » 10, // 60 bbls. molasses. Dec. 1, // 65 hhds. tobacco. Required the number of hhds. and bbls. subject, each, to one month's storage, Dec 1 Ans. 48 hhds. sugar. 160 bbls. molasses. 63 hhdl tobacco! COMPOUND EQUATIONS. For Rule, see note on page 116. Ex. 1. May 1, 1866 received of R. Morris, London, 40 bales carpet. Paid frei-ht and other charges in cash, $1600 Sold the carpets the same day, on note at 6 mos. f^ §60(2) du^k casT '''' ^"^'^°*'^' ^%- I^equired the day on which R. Morris' net proceeds are fr^t "/r"''' "^^ ^L'' ^- ^^^*"^"' '' ^-*-' ^^ -- U^^ints'^'paid S ' O tl?'^'' 'T^' f??- i"^^ ^^ ""'"'^''^ ^'' ^'^^ «« ^« ^t 30 days' sight tbr ^2000. On the same day sold the 50 cases prints, on note at 4 mos. for S5400. Commis- sion and guarantee, 5%. Storage, $10. Required the day on which the balance of thTn^ proceeds will be due .n cash Ans. Balanc'e, $3000. Due, Dec. 5 1866 . . A ^ ' 1866, sold R. Manly an invoice of dry goods, amounting to 82800 on account, at 4 mos^ On the same day I bought of him an fnvoice of flour^at 30 day^br f l^'^A. r^ \'' "^^^ f ^ ^ ^^'- ^^" *^^ ^^^^°^^- I^equired the day on which thia note must be dated so that neither party will lose interest. Ans. Note for $1000. Balance will bear date December 15, 1866. Our account with Robert Carver is as follows : Jan. 1. Sold him goods on account, at 3 months . Ex.4. 1867. // 27. Feb. 20. Mar. 12. Apr. 1. // ff // // 1867. Jan. 16. Feb. 10. Mar. Apr. Crs. Received cash on account $600.00 550.50 449.80 500.49 400.21 4. 1. II II II II $250.00 300.00 350.00 200.00 J Note his order on John Doe, at 10 days cash on account .... ^^ Required the day on which the balance of the account will fall due" by "average. I? c TI- 1 1 1 ^NS. July 14. falU * ^^ '''' ""^'"^ *^' ^''^''''^ ^^ ^^"^^"^ ^^y'' ^^^^^"^ (P^S« 116) wiU T 209 ^'''' ^^'^^^- DUFF'S BOOK-KEEPING. Ex. 6. Our account with George Draper stands as follows, viz. : July 1. Sold him merchandise, at 4 mos. w 10. Paid his order in cash . n 30. Merchandise at 60 days Aug. 2. '/ " 3 mos. r; 19. Paid his order in cash Sept. 30- Merchandise at 30 days Oct. 1. I* // 60 // July 30. Credit for his note at 4 mos. Aug. 31. '/ " 90 days Oct. 1. " " 30 » . II 30. '/ cash in full Required the interest due to us or by us on the above account by equation. Ans. Dr. equation, Oct. 26. Cr. Nov. 29. Interest due us, Oct. 30, U^.oi. . $1600 80 . 600 850 . 100 300 . 450 $1680 1450 400 450 COMPUTING FEEIGHT. Marine freights are computed by the ton of 2240 lbs for all articles occupying less than forty cubic feet to the ton. Rule.— Multiply the given number of tons by the rate ; the product is the freight Ex. 1. Required the freight of 131 tons 15 cwt. of Iron, at $2.50 pej- ton. ^^^^ ^^ Ex. 2. Required the freight of 71 tons 5 cwt. of Copper, at $2.40 per ton. Ans. ci7l. In the Western River Navigation freight is computed by the net 100 lbs. Rule.— Multiply the given number of pounds by the rate, and divide the product by 100 ; the quotient is the freight. Ex. 3. Required the freight of 47491 lbs, at 15 cents per 100 lbs. ^ Ans. $71.24, nearly. Ex. 4. Required the freight of 61221 lbs, at 37* cents per 100 lbs. ^ Ans. $229.58, nearly. Ex. 5. Required the freight of 31121 lbs, at ISf cents per 100 lbs Ans. cOO'"""!"- Ex. 6. Required the freight of 40411 lbs, at 12i cents per 100 lbs. Ans. ^ou.oi— j— • The same Rule applies in computing the price of Scantling, Boards, &c. Ex. 7. Required the amount of 1721 feet of Scantling, at $1.37^ p^r^lOO ^^^^ Ex. 8. Required the amount of 118372 feet of Boards, at $11.25 per M. ^ Ans. $loi51.by. Ex. 9. Required the amount of 70112 feet of Flooring, at $21 per^M. ^^^^ Ex. 10. Required the amount of 1129 feet of Oak Scantling, at $3.12* per C. Ans. ^oi).-dO-j- 210 ON COMMERCIAL CALCULATIONS.— PART III. GENEEAL AVEKAGE. When damage or loss is incurred by any part of the vessel or cargo, for the benefit of all concerned, all who profited by the safety of the vessel or cargo must contribute to the relief of those whose property was thus sacrificed. This contribution is called General Average. Such sacrifices cannot be made without consultation of the officers and crew, and mustl)e absolutely necessary for the safety of the vessel, otherwise Greneral Average will not take place. Particular Average means a partial loss of the ship or cargo, by the dangers of the sea, fire, or other unavoidable accident. This loss must be borne by the owners of the property or their insurers. ' The vessel and goods injured, saved or lost, are valued at what they would have brought in cash at the port of destination. It is customary, in calculations of General Average, to allow only two-thirds of the cost of replacing vessels' masts or furniture, the new articles being worth one-third more than the old. The rule for finding the General Average is similar to that of Fellowship. Rule. — As the sum of the values of the contributory articles is to the total loss, so is 100 to the per centage loss. Ex. 1. Suppose the Ship Hudson, on her passage from Liverpool to New York, to have sustained the following damages, viz. : Cost of replacing masts, rigging, and cables, cut away Less i, extra value for being new Cost of one anchor, which was lost . . . . 15 pipes of wine, thrown overboard Towing into harbor $3000 1000 $2000 800 3000 200 General average loss $6000 Contributory interests, viz. : Ship Hudson, valued at Cargo Freight . Less portage bill $4000 2000 As 60000 : : 6000 : 100 : : 10 per cent. So that the ship's owners must contribute Owners or insurers of the cargo Owners or insurers of the freight $16000 42000 2000 $60000 $1600 4200 200 $6000 Ex. 2. The ship Roscoe, on her voyage from New Orleans to New York, was thrown upon her beam ends and obliged to cut away her masts, when she righted, but sprung a leak, in consequence of which the following property was thrown overboard to lighten the vessel, which was ultimately towed into New York : 20 hhds. Sugar, belonging to R. Dyer . 30 w II I, W. Kane . Damage done to G. Halis' goods Freight of goods thrown overboard . Cost of new cables, masts, sails, and rigging Less ^, for newness . Towing the ship into port 211 . $1600 1800 . 1600 120 $3600 1200 2400 80 $7600 DUFF'S BOOK-KEEPING. ON COMMEKCIAL CALCULATIONS.— PART IIL 111 *ni n Contributory interests, viz. : R. Dyer's goods, thrown overboard W. Kane's // w ... Value of W. Hay's goods, less freight and charges a G-. Page's " " " " w R. Manly 's " n n n G. Halis' n n If If If the ship Deduct for damages Value of the freight Less seamen's wages $20000 3600 86800 3400 $1600 1800 4200 5950 12650 14800 16400 3400 $60800 Required the per centage that each party must lose of his interest in the ship, cargo, and ^^®^^^^- Ans. 12^ per cent. We have above given the rule for General Average, with illustrations to explain its applica- tion which any good arithmetician will readily understand. But it is to be observed, that to understand in all cases what will constitute a General Average loss, and what interests are to contribute to it, requires an intimate knowledge of the Law of Insurance. J^or instance, it has been decided that the damage sustained by a merchant vessel and cargo, in fiahtin- and beating off a privateer, is not a subject for General Average. Also, the removd of a quantity of perishable fruit while the vessel was in a port of refuge for the purpose of repairs which removal increased an incipient decay, and caused an entire loss ot the truit ; this was also decided to be no matter for General Average. In fact it is said by an eminent writer upon law to be "the most intricate and perplexing in the whole Law of Insurance. The subject will be found judiciously treated in the American editions of *' Smith s Mercan- tile Law," and " Abbott upon Shipping." ON OPENING BOOKS BY DOUBLE ENTEY. Ex 1 I open my books with cash in hand, $100. Deposit in the City Bank, $4900. R. Gain's note for $4000 ; interest due on the same, $200. I own house and lot on Water Street, worth $30000 upon which I owe $10000 on bond, with $500 interest due on the same. H. Stubbs owes me on account, $700. I owe R. Ryan on account, $1500. Required the Journal entry for opening my books. Ex 2 Commenced business with cash in hand, $250. Deposit in Exchange Bank, $7000 Eiohty shares Hudson River Rail Road Stock, $100 per share, with 25 per cent, paid upon it Forty shares City Bank Stock, $50 per share, in full. One hundred shares Central Rail Road Stock, $100 per share, with 60 per cent, paid upon it. Required the opening Journal entry. Ex. 3. Jacob Ring pays in cash, $2100. Aaron Budd, $1990. They are to do business under the firm of Ring & Budd. Required the Journal entry for opening their books. Ex 4. J. Park and P. Buchan, partners in business. Park pays in cash, $1000 j merchan- dise, $1100. Buchan pays in cash, $1000; merchandise, $890; notes due him, $100. Required the Journal entry for opening their books. 212 Ex 6. Ex. 5. Rowen & Cox commence business with the following capital, viz. : J. Rowen pays in cash, $2000 ; merchandise, $500 ; notes due him, $400. Wm Tell owes him, on account, $100. Rowen owes debts which the firm assumes, viz. : On his notes, $300 ; to Wm. Yates, on account, $400. B. Cox pays in cash, $1800 ; merchandise, $800 ; notes due him, $600. J. Pond owes him, on account, $300. Cox owes debts which the firm assumes, viz. : On his notes, $700 ; to Geo. Oates, on account, $500. Required the Journal entry for opening their books. Dean & Brady commence business as follows : R. Dean pays in cash, $1400; notes due him, $1200; interest due on these notes, $130 ; merchandise, $600. Sands & Turner owe him, on account, $200. The firm assumes the following debts owing by Dean, viz. : On his notes, $500 ; to Fulton & Gowan, $200. D. Brady pays in cash, $1200; notes due him, $1500; interest due on these notes, $160. The firm assumes notes owing by Brady, $980. Required the Journal entry for opening their books. D. Mills is the owner of a Factory, which, together with other effects belonging to his business, constitutes a net capital of $40000, which is at the credit of his Stock A^ count in a regular set of double entry books. Without closing his books or exhibiting any inventory of his property, he agrees to admit J. Roy and B. Gates as equal partners, on'their paying into the firm as capital $20000 each, and paying him a bonus of $10000 each, also, in cash ; which was to constitute all three partners equal in property, and equal in gain or loss. Required the Journal entry for introducing the new partners and their capital into the old books. Ex. 8. Suppose Mills' capital to be $60000, at the credit of his Stock Account. Roy and Gates agree to come in as i partners in the business by paying in, as capital, $30000 each, in cash, and also to pay Mills a bonus of $5000 each, in cash. Required the Journal entry to introduce the new partners' names into the books. Mills to be ^, and Roy and Gates each i in property and J gain or loss. When a firm establishes branches of its business at distant points, these branches are debited and credited in all respects like strangers, and the branches do the same with each other and with the head of the firm. Ex. 7. EXEEOISES IN CLOSING THE LEDGEE. Ex. 1. tf Stock Merchandise Profit & Loss // Bills Receivable tf Bills Payable n W. Horn // D. Camp is Dr. $1200 3470 850 2700 240 180 1900 (f Cr. $2800 // 2400, on hand, $1250 » 1650 If 1800 If 1200 # 270 If 420 Write out a Ledger specification of the above, open a Balance Account, and close the whole of the accounts. // Ex. 2. Stock Merchandise Profit & Loss Bills Receivable ff Bills Payable // R. Irons a John Doe n is Dr. $1800 " 7500 2150 980 200 750 1600 Cr. $2200 // 4600, on hand, $3500 If 250 ff 880 n 6600 ff 150 300 Write out the, Ledger statement, open the Balance Account, and close the books. 213 f , DUFF'S BOOK-KEEPING. Ex. 3. Stock Profit & Loss Interest Expense Storage Commission Balance is Dr. H If n It If $750 1220 150 1410 750 9890 Cr. $4800 n 1880 H 450 If 110 If 1250 n 600 n 5080 Write out the Ledger statement and make the final closing entries. Ex. 4. John Doe and Richard Roe, partners in business, are balancing their books, which they find standing at the final closing as follows : J. Doe's account is Dr. $420 Cr. $3800 R. Roe's // 60 '^ 3600 Profit & Loss " 700 '/ 4900 Balance // 17320 '/ 6200 The partners are equal in gain or loss. Required the final closing of the Ledger. Ex 5 S.'Boon and R. Simmons find their books standing as follows : S. Boon's acct. is Dr. $1230 Cr. $2700 R. Simmons' n 1050 " 1300 Profit & Loss '/ 6600 " 900 Balance ^ 9220 '/ 13200 S. Boon is f and R. Simmons J gain or loss. Required the final closing of the Ledger. PAETNEESHIP SETTLEMENTS BY SINGLE ENTET: In single entry Book-keeping, where no Profit & Loss Account is kept, the gain or loss is determined as directed on page 18. Ex 1. A. paid into firm $600, and drew out $180. B. paid in $300, and drew out $120. The undivided effects amount to $450. A. is f and B. i gain or loss. Required the divi- sion of the $450 between them. Ex. 2. C. paid in $2400, drew out $750. D. If 2100, // 1100. B. f 2000, // 120. Each partner's share in the gain or loss is equal. At the date of dissolution they are owing debts, $2750, and have cash, notes, merchandise, and ^^^%^^f.^\^f,^^^^^ balance due each partner. Ans. Due C $2110 ; D. $1460 ; E. $2340. ' Ex. 3. A. paid in $700, drew out $150. B. // 800, // 290. C. » 500, '/ 400. At the time of their dissolution their cash, merchandise, and other effects amount to $1848, and they owe $950. The partners share equally in the gam or loss^ Required the balance due each. Ans. Due A. $462.67 ; B. $422.67 ; C. $12.66. Ex. 4. F. pays in $3200, draws out $650. G. » 1624, // 500. H. If 1500, If 1450. F. is to be i gain or loss, and G. and H. each h G- and H. retire from the business. The cash and merchandise on hand is $3800. Outstanding debts due the firm $2850, upon 214 ON COMMERCIAL CALCULATIONS.— PART III. which it is agreed to allow 10 per cent, discount for bad debts. The firm owes, on not^s md book debts, $3400. Required the sums F. will have to pay G. and H. on retiring — F. to become the owner of all the effects of the firm and assuming all their liabilities, as above itated. Ans. F. pays G. $934.25, and H. pays F. $139.75. Ex. 5. A. was I and B. ^ gain or loss, and at the time of dissolution B. agrees to take the whole stock of cash, merchandise, and other effects of the firm, for 83010.79 — A. re- tiring from the business. By their accounts it appeared that A. had drawn out $592.82. and paid in $1146.78; B. had drawn out $103.27, and paid in $504.92. No interest was to be charged on either side. Required the sum B. must pay A. on retiring. Ans. $1924.08. rOE EEOTIFYING DERANGED DOUBLE ENTET BOOKS. Rule. — Close all the impersonal accounts into Profit & Loss ; then place the amount of each side of the Profit & Loss in the list of Effects and Liabilities, carrying back to the Profit & Loss the difference between the Effects and Liabilities. Close the Profit & Loss into the partners' accounts in all respects as in double entry. This transforms the single entry Ledger into a double entry one. (See pp. 7, 18, and 19.) Ex. 6. N. paid in $2460, drew out $975. 0. II 2660, // 420. P. n 2800, // 1100. At the time of dissolution they owe $4500, and have cash, merchandise, and other effects, $8840. They also have an expense account open which is debited for $1260. Required the balance due each partner, exhibiting the expense account closed, each partner sharing equally in the gain or loss. Ans. Due N. $1123.34. Due 0. $1878.33. Due P. $1338.33. Ex. 7. Q. paid in $2560, drew out $1075. R. // 2770, // 520. S. II 2890, // 200. At the time of settlement the firm owes $4450, and have cash, merchandise, and other effects, $8780. Their expense account is debited for $1480. Profit & Loss is Dr. $640, and Cr. $1400. Commission account is credited for $1850. The partners are equal in <^in or loss. Required the balance due each, and exhibit the impersonal accounts all closed. Ans. Due Q. $786.67. Due R. $1551.67. Due S. $1991.66. If there be property accounts open, close them By Balance for the value on hand, and bring the balance down, and carry the gain or loss to the Profit & Loss account. Then proceed as directed in the above Rule. Ex. 8. N., 0., and P., partners in business, paid into the concern as follows: N. paid in $2464, and drew out $985. 0. // 2665, ff 424. P. n 2880, n 1110. At the time of dissolution they owe $4595. They have merchandise on hand valued at $4400; cash, $1840; notes and book debts due them, $2218. Their expense account is debited for $1286. Their merchandise account is debited for $40050, and credited for $39500. Their Profit & Loss account is debited for $1665, and credited for $1580. Each partner shares equally in the gain or loss. Required the balance due each at the time of dissolution. Ans. Balance due N. $936.67. Due 0. $1698.67. Due P. $1227.66. 215 ir DUFF^S BOOK-KEEPING. Ex. 9. R. and S., partners in business, desire to make a dividend of their gain or loss They find their books standing as follows : R.'s account is S.'s // Merchandise Cash Bills Receivable Bills Payable Profit & Loss Commission Interest R. Roy C. Page Dr. // It II II w $6600 950 24000 13000 16500 4800 700 880 2200 Cr. ei5000 H 12000 w 12500 on hand, $11000 w K W M n u 9500 7500 8300 2700 2200 1400 800 Required the Ledger Specification of the book, exhibiting the balance shoet and each partner's capital. Ans. R.'s capital, S9375. S.'s capital, $12025. Each partner's giin, $975. When the capital is paid in at different times, and it is agreed that profit or loss is to be divided in proportion to the time it is invested, the gain or loss is found by the preceding rules, and divided by the following Rule. — Multiply each partner's capital by the time it was employed ; then add all the products together and say, as the sum of these products is to each partner's product, so is the whole gain to each partner's share of it. Ex. 10. K., L., and M., partners in business, commencing 1st January, 1866. . $1200 900 . 1100 800 . 1100 1400 200 1800 At the time of dissolution, 31st December, 1866, the firm has cash and merchandise in hand, $5500; notes and book debts, $4500. They owe $3200. The gain or loss is to be divided in proportion to the amount of capital paid in by each partner, and for the time it was in the business. Required the balance due each partner. Ans. K.'s gain, $112.14. Balance due him, $2512.14. L.'s // 98.48. // // 2398.48. M.'s // 89.38. u M 1889.38. Jan. K. paid in March // // June II II . . Aug. // drew out Jan. L. paid in May Oct. // drew out . Jan. M. paid in II drew out nothing Ex. 11. N., 0., and P. partners in business, commencing January 1, 1867. Jan. 1, N. pays in . . . . $600 March 1, H II . . 800 July 1, // draws out . . 200 Sept. 1, // pays in 600 Jan. 1, 0. // . . . . 700 May 1, II II . . 400 June 1, II draws out . . 200 Aug. 1, // pays in 1200 Jan. 1, P. 1/ . . . • 1000 Oct. 1, II II , . 600 ON COMMERCIAL CALCULATIONS.— PART III. At the date of settlement, December 31, 1867, the firm has cash and other effects in hand, $7500, and are owing debts to the amount of $3400. Required the division of the gain or loss, m proportion to the amount and time each partner's capital was invested, and the net balance due each partner. Ans. N.'s net loss, $494.83. Balance due him, §1305.17. O.'s II 488.79. It I, 1611.21. P.'s '/ 416.38. # u 1183.62. Ex. 12. X. and Y. partners in business, commencing 1st January, 1867. Jan. Ij X May 1 June 1 II Sep. 1 Oct. 1 Jan. 1 , Y March 1. II May 1, June 1 II Oct. 1 1 " paid in . . . . $9000 • • • • drew out . 2400 . 1800 * • • • paid in . . . 2000 800 * * • • drew out . 3000 . 1600 " • • • • paid in . . . 1200 . 1500 " . . . . 8000 216 T. "'^io^l^i^i^l.''^ !o^l^^^ *^^ 31st of December, 1867, their merchandise account was VT. ^6^0[){); Or. ^JTOOO. Balance of merchandise on hand, per inventory $10500 Cash on hand, $4900. Bills Receivable, $12400. R. Draper owes on account, $2450. They owe ?? ^^oL'"'' n'' i^t^co^' '^^^ ^""^ ^' ^^^ ^^ ^^^^^'^*' ^^^^- Their Profit & Loss account is Dr. $8bb ; Or. $1520. Expense account is Dr. $2420. Commission account is Cr 8*^760 Interest is Dr. $480; Cr. $950. The gain or loss is to be divided in proportion to'each partner s capital, and in proportion to the time it was invested. Required each partner's share of the gain or loss, the net balance due each, and a Ledger specification exhibiting the closing ot all the accounts and the balance sheet. Ans. X.'s share net gain, $6671.73. Net balance due him, $15071 73 Y.'s // // 2748.27. u h 12448.27. Ex. 13. J. Boyd and W. Page, partners in business, dividing the gain or loss equally. Page retires from the firm. Their books are kept by single entry ; and the partner's accounts stood as follows :--J. Boyd is Dr. for sums withdrawn, $6200 ; Cr. for sums paid in, $SlU0 W. Page IS Dr. for sums withdrawn, $5100, and Cr. for sums paid in, $7800. Their effects consist of Cash which Page takes to his account $4400. Bills Receivable which he also takes to acct * , ' ^3700.* Mdse. on hand which Boyd takes to his acct. . . . . ' . 560o! Book debts which he also takes to acct. . . . * , * G30o! They owe on notes, which Boyd assumes . . . . ' . 2200 They owe Book debts, which he assumes . . .*.'.* lioo! Required which partner is indebted to the other, and what amount ? Ex. 14. A. became embarrassed, and failed in business. His effects were sold off at auction, and the net proceeds, $7770, paid over by the auctioneer to the assignee \ was indebted as follows, viz : o * To B. on notes and book account . . $4800 '/ C. on account .... 5600 ^ . .. . " ^' " 3600 J^ach creditor is to receive in proportion to the amount of his claim. The assi<-nee*s com mission 18 5 per cent, on the amount paid over to the creditors. Required the amount to ^e received by each. Ans. B. receives $2537.14. ' C. // 2960. D. » 1902.86. 217 (I" h -f 1 i DUFF'S BOOK-KEEPING. ON THE SETTLEMENT OF ACCOUNTS. Referring to our directions for making out accounts, (page 114,) we have only to observe that, under the date of the semi-annual settlement, spare space is usually left in the Day-Boox to insert entries of all omissions that are discovered upon exchanging accounts current. These omissions are entered and posted up under date of the last day of the last month s business embraced in the account for the semi-annual settlement; but the payment must appear under the date upon which it takes place. To enter or post it under a back date would derange the cash account. i i n In those cases in which we expect to receive the balance of the account rendered betore any new transactions take place, it is unnecessary to balance the account on the Ledger until we can post up the payment and close the account. But if new transactions take place be- tween the parties before the payment of the balance of jthe old account is made, it will ^'enerally be found more convenient to balance the old account in the Ledger, and bring down the balance into new account, in which an entry of the payment will appear when made. Those who prefer excluding this old balance and its payment from the next account current, can star out the entries on the Ledger, as seen in the following specification, and leave the amounts out of the new account current. Loans of money, and other transient matters, may be left out of the account current by the same means. (See Pryor's account, page 167.) Br. E. OARVER. Or. 1867. Jan. Feb. Mar. June June July Aui:". Sep. Oct. Dec. 17 1 10 28 To Merchandise // Sundries 30 7 4 30 21 7 30 To Bal. ^ acct. rca'd // Merchandise ir Order to F. Oaks // w to K. Kankin " Merchandise If Order to Winters '/ Merchandise 7 14 20 27 416 4200 780 1160 6557 X 1222 30 39 46 56 69 84 480 79 130 494 73 360 40 20 80 40 20 74 40 70 30 60 1867. Feb. Mar. June 4 28 8 30 July 1 17 20 Aug. // By Cash Bills Receivable Merchandise Bal. to new acct. By Merchandise If Cash on old acct. II 31y order per | Ryan & Co. j II Cash in full for old acct. ! 15 19 20 416 4000 918 1222 6557 40 80 20 40 34X 33 730 800 140 38>' 422 20 In business a note is generally taken for such a balance as the above, and the account is immediately closed. , ., i i n ^i Between houses keeping interest accounts with each other, unless the balance ot the ac- count is paid, with a note or money, on presentment, it and the other payments will appear in the next account. « i />n i -r. i i ^ • i. On pacre 146 will be found a practical exemplification of the Check Book, kept in such a manner a^'s to check both sides of the Bank account in the Ledger. We shall now add some additional directions for settling with your banker. When you get your Pass Book balanced, if it contains any charges for discounts, commis- sions, or any entries not in your books, enter them both on your Check Book and Day-Book. If all your checks have not been returned, enter the numbers and amounts, in red ink, on the. ^ 218 ON COMMERCIAL CALCULATIONS— PART III. Dr. side of your Check Book and Ledger, and if all your work is right, the balance in de- posit will close the account. Close the account, and bring down the balance on the Cheek Book and Ledger in the usual manner, and bring down the outstanding checks in the same manner on the Cr. side. To make the matter clearly understood, we subjoin a specification of it on a Check Book : DATE. 1867. June July August Sept. Out, 175 177 Sept. 30 5 12 1 19 1 4 7 24 30 AMOUNTS DEPOSITED. DATE. 1867. Bro. forw'd 4248 10 June 30 Deposited 800 July 2 // 1300 5 // 400 Aug. 2 // 1140 Sept. 9 // 660 90 13 // 840 40 Sept. 30 II 521 24 II 216 16 $600. 970. 1570 80 80 Sept. 30 1 11196 Balance 5095 NAME. No. AMOUNT. Checks out, 1100 40 R. Hill, 174 900 VV. Wood, 175 600 R. Cox, 176 1100 60 B. Ray, 177 970 W. Boon, 178 1430 Balance, 5095 80 11196 80 Checks out, 1570 CHECKS. You will understand that the above $5095.80 represents the balance made by the banker on your Pass Book; but he made that balance before two of your checks (Nos. 175 and 177) were presented ; consequently your books will not show the same balance until the amount of these checks is counterentered. This should be done in red in the old, and black in the new account. I feel confident that no business man will try this form of Cheek Book, and not prefer it to the old practice of entering Checks and Deposits all in one column. Young accountants will find the advantage of having their Pass Books frequently balanced. In a business of any magnitude it should be done monthly — never at longer periods than three months. EXERCISES IN INVOICES. See Forms, page 59. Ex. 1. Sold Draper, Son & Co. July 6, 1867 : 1 piece superfine Black Broadcloth. Xo. 427, 19'' yds. @ $3.62^ 1 end, 10^ yds. Green do. No. 401, @ $3.62*. 1 end Blue do. No. 644, 10 yds. @ S3.62i 2 pieces Black do. Nos. 4202 and 4203. 18 and 18'^ yds. (aX $3.31^. 4 ends Vesting, 6^, 8^ 9S and 7^ yds. @ $2.50. 2 pieces do. 14 and 16 yds. @ §3. Required the invoice, exhibiting the correct amount. Ans. S434 ^Q Ex. 2. Sold King, Wood & Co., July 10, 1867, 12 doz. Black Silk Hose, @ 810. 9 dox. Ladies' best Black Kid Gloves, @ S7.62i 4 doz. Men's do. @ $9.87i 2 doz. do. out sizes. @ $11.50. 6 doz. Men's fancy colored do. @ $9.75. 8 doz. Children's do. @ $4.62*. 6 doz. do. Thread, @ $2. 12 doz. Men's fancy Silk Half Hose, @ $3.75. 6 doz. do. Black Ribbed, @ $4. Required the invoice, exhibiting the correct amount. Ans. $427 63 219 ^ • I ■M ' t DUFF'S BOOK-KEEPING, Ex. 3. Sold George Gains & Co. July 30, 1867 : 10 doz. LyelFs Shovels, @ $7.75. 15 doz. Bowman's Spades. @ $10.75. 5 doz. do. Cast steel, @ $12.50. 5 boxes Derby Scythe Stones, @ 83.50. 20 doz. Grass Scythes, @ $11.50. 12 doz. Corn do. @ $13.50. 3 Mouse- hole Anvils, 120, 230, and 330 lbs. @ 12 cts. ^ ft). 3 Birmingham Anvils, 100, 150, and 250 ft)s, @ 8 cts. "^ ft). Required the invoice and correct amount. Ans. $832.35. Ex. 4. Sold Richard Carver & Son, July 31, 1867. At 5% discount*— 55 Patent Balances, @ $10. 30 doz. Patent Coffee Mills, @ $5. 20 doz. Lippincott's Axes, at $10. 25 doz. do. Hatchets, @ $4. 30 doz. do. @ $3.75. At 10% discount— 30 Roland's 6-feet Mill Saws, @ $3.75. 25 do. 6^feet Cross-cut Saws, @ $3.75. 4 doz. Hand Saws, @ $7.50. 6 doz. do. @ $9. 4 doz. do. @ $6.50. The followincr are net— 10 gross Gilt Vest Buttons, of each No. 479, @ $1 ; 566, @ 1.20 ; 667, @ $1.30 ; 494, @ $1.40 ; 993, @ $1.50 ; 337, @ $1.60. 2 doz. Rodgers' Penknives, of each No. 4200, @ $7 ; 4900, @ $8 ; 4300, @ $9 ; 4400, @ 9.50. 12 doz. best balance- handled Ivorv Table Knives and Forks, @ $10.50. Required the invoice and amount. ^ Ans. $1614.49. Ex. 5. Sold David Chesman & Co. : 4 hhds. Sugar, each 1146, 1104, 1107, and 1003 ft)s gross, tare 10%, @ 5 cts. 16 boxes Mould Candles, 56 R)s each, @ 10^ cts. ; boxes 25 cts. each. 30 boxes Bloom Raisins, @ $3. 40 doz. Corn Brooms, @ $2. 2 chests, 84 ft)s each, Y. H. Tea, @ 68 cts. 6 half chests do. 240 lbs, @ 65 cts. Required^the invoice and amount. -^NS. $734.52. Ex. 6. Sold Mason & Sands : 6 Detached Lever Silver Watches, @ $12. 8 do. fe $15. 5 do. Gold do. @ $40. 5 Duplex Lever Gold do. @ $65. 6 do. do. @ $75. IMoz. Gold Spectacles, @ $60 per doz. ^ doz. do. @ $75 per doz. 3 doz. Silver do. @ $10. 2 doz. do. (a) $15. 1 doz. Eight-day Clocks, $65. k doz. Church Clocks, @ $80. Required the invoice. Ans. $1439.50 ON COMMERCIAL CALCULATIONS.— PART III. Commission and guarantee, 5 per cent. Storage, $66. Required the Journal entry for closing the sales ; carrying Hay's net proceeds to his credit. Ex. 7. Suppose the above total sales to be $6000. Our half, first cost, the same, ($6000). No charges are made. Required the Journal entry to settle the transaction, supposing we give Hay our note at 60 days for his share of the net proceeds. Ex. 8. Suppose our half, first cost, and the total sales to be equal, as in the last problem — $6000 each— and the after charges. Storage, $30 ; Commission and guarantee, 5 per cent. Required the Journal entry to close the sales, supposing Hay's net proceeds to be paid him in cash. Ex. 9. Suppose our half, first cost, $9000. Total sales, only $8000. Commission and guarantee, 5 per cent. Storage, $28. Required the Journal entry to close the account, sup- posing we give Hay an order on James Carter for his share of the net proceeds. Ex. 10. Our half, first cost, was ^11500. Charges posted, $500. Total sales, $18000. After charges. Storage, $84 ; Commissi- and guarantee, 5 per cent. The inventory of the joint property unsold is $8000.* Required the Journal entry to close the account, sup- posing Hay's i net proceeds to be carried to his account. Ex. 11. Suppose our half, first cost, $10500. Charges posted, $560. Total sales, $15000. After charges. Commission and guarantee, 5 per cent.; Storage, $48. Property on hand, $6200. Required the Journal entry for closing the account, paying over Hay his half net proceeds in cash. Ex. 12. Our half, first cost, was $14800. Charges posted, $150. Total sales, $7800 Joint property on hand, $13200. After charges, viz. : Storage, $64 ; Commission and guar- antee, 5 per cent. Required the Journal entry to close the account, supposing it to include our note to Hay for his half net proceeds. Ex. 13. Our half, first cost, was $9000. Charges posted, $8800. Commission, 5 per cent. Storage, $24. Total sales, $4400. Joint property unsold, $2200. Required the Journal entry to close the account and carry Hay's share of the deficiency to his account. EXAMINATION ON SETTLING CONSIGNMENTS AND JOINT ACCOUNTS. See Questions 25 and 26, page 41. Ex.1. William Mount's sales are completed. Total sales, $3420. Charges posted, $780. After charges, viz. : Commission and guarantee, 5%. Storage, $20. Required the Journal entry to close the sales on the Ledger, supposing the net proceeds to be carried to Mount's credit. A^^,r.o »^ Ex. 2. Gr. Glen's sales are effected to amount of $14040. Charges posted, $1729. Alter charges, viz. : Commission and guarantee, 5%. Storage, $56. Required the Journal entry for closing the sales, supposing we pay over the net proceeds at the same time in cash. Ex. 3. Effected sales for David Carman, $4660. Charges posted, $4440. After charges are. Commission, 5 per cent. ; Storage, $36. Required the Journal entry to close the sales. Ex. 4. Effected sales of Michael May's goods, $9840. Charges posted, $9910. After charges. Commission and guarantee, 5 per cent. ; Storage, $45. Required the Journal entry to close the sales. Ex. 5. Completed sales of merchandise on joint account with Wm. Hay, each one-half. Our first cost was $2400. Total sales, $6400. Charges posted, $800. After charges. Com- mission and guarantee, 5 per cent. Storage, $18. Required the Journal entry to close the sales, carrying Hay's net proceeds to his account. Ex. 6. Completed sales of merchandise on joint account with Wm. Hay, each one-half. Our half, first cost, $6000. Total sales, $12600. Charges posted, $490. After charges, EXERCISES IN DISCOUNTING BUSINESS PAPER. Ex. 1. Received Hall Smith's note for $1200, dated August 31, 1867, at 6 months, en- dorsed by James Betts. Discounted the same December 27. Required the note the unexpired time, and discount. ' Ex. 2. Received J. W. Frost's note for $900, dated October 28, 1867, at 4 months, endorsed by W. Summer. Discounted December 13. Required the note, unexpired time' and discount. ' Ex. 3. Received A. T. Howden's note for $1800, dated October 31, 1867, at 4 months, endorsed by D. Bowers. Discounted November 30. Required the note, the unexpired time, and discount. Ex. 4. Received J. Warden's note for $1266, dated March 31, 1867, at three months, endorsed by I. N. Forner. Discounted May 31. Required the unexpired time, and discount' Ex. 5. Received R.Manly's note for $624, dated March 30, 1867, at 3 months, endorsed by J. Carter. Discounted May 1. Required the note, the unexpired time, and discount. ^ Ex. 6. Received W. S. Haven's note for $1566, in my favor, dated April 30, 1867, at ninety days. Discounted June 26. Required the note, the unexpired time, and discount Ex. 7. Received Hay & Wood's note, in my favor, for $1824, dated August 30, 1867. at ninety days. Discounted September 30. Required the note, unexpired time, and discount. Ex. 8. Received H. Winslow's note, in my favor, for $966, dated December 30, 1867. at ninety days. Discounted February 28. Required the note, the unexpired time, and discount * Short-extend each discount, and from the marginal addition subtract the discount, full-extending the net amounts. Leea than five mills count nothing in the extensions ; five mills and upward count another cent. 220 * See Note 4, 1st Co. Sales, page 109. 221 DUFF'S BOOK-KEEPING. Ex. 9. A Judgment Note.— (January 10, p. 70.) S3000.^^. ^^^ York, January 10, 1867. Thirty days after date, for value received, I promise to pay to the order of P Duff THREE THOUSAND DOLLARS, and in case of non-payment at maturity I hereby authorize any attorney in any court in the United States or elsewhere to enter ^P P^^^^^^^^^^ upon the same, without stay of execution or benefit of any exemption law, with costs and five per cent, attorney's fees for collecting. ^^^^^^ Edwards. N0TK.-If the holder wishes to enter judgment on receipt of this note, leave out the clause, " and in case of non-payment at maturity." 1 2. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. FINAL EXAMINATION. What is the fundamental rule in Double Entry Book-Kceping ? (See note 1 page 260 What constitutes the distinction between Single and Double Entry? (Note 1, l^iUs HowTthe clpr/dfspJJed of in opening books by Single Entry, in an individual busi- ness? (Notel, p. 7.) How in Double Entry ? (Notes 1 and 2, Stock acct. p. 66.) How is the capital disposed of in opening Partnership Books by Single Entry ? (Note o Ti 'r ^ How in Double Entry ? (Note 1, Duff's acct. p. 131.) ^ i. .^^ TJnnhlP Is there any difference in the rule for conducting personal accounts in Single and Double Entry ? (Notes 3 and 4, p. 7, and 3 and 4, p. 26.) „ ^ .^_ . _ , ^.^ Is there any difference in recording Orders, Drafts, &c.? (Note 5, p. 7, and Rule Whatsis the use of the Cash-Book ? (Note 1, p. 9, and note 1, p. 530 Where are all cash transactions generally first entcr-d t (Note b p. 06.) What is done with the Cash-Book entries as they are transferred to the Day-15ook or Journal? (Note 7, p. 530 . ^^ . o rx^ , a rq ^ How do we ascertain the balance of money in hand? Cf^o^?'.?' 7->',^ .f. ^. .. How are the Ledger titles for money received and paid exhibited? (N. 10 and 11, How are entries made on the Day-Book ? (Note 5 p. 24) What is meant by posting a Day-Book or Journal? (Note 7, p. ^4.) What is the first thing to be done after the Day-Book or Journal is posted ? (Note 4, How d^thf partners' acc^oun^ close after the Profit & Loss is closed into them ? (Note 2 Duff's account, p. 15, and note 4, p. 130.) o /xt . i n j > What does the final closing entry of the partners' account represent? (Notel,Gordon s loot T) 15; note 1, Balance acct. p. 134.) ,xt , « -r» i What wSi it represent if he draws out more than he has in the firm ? (Note 2,Balance When'au aect.'has filled up its space, how is it continued to a new page? (Note 2, Wnod's acct D. 15, and note 1, p. 102.) How ^oiau account 're-open on the same page ? (Note 2, Hay's acct. p. If, and note Upon which side of an account is the final closing entry made ? (Sect 1, p. 18.) Why iTote the transfers on the face of the Ledger folio ? (Note 6, p. 18, and note 5. Whafare^he objec^t^ons to making original entries affecting the personal accounts on the Led-er, without a Day-Book entry ? (Note 7, p. 18, and note 3, p. 25) . What 1^ the general rule for finding the gain or loss in Single Entry Book-Keeping? How isit found in Double Entry ? (Note 4, Profit & Loss acct. p. 350 • 222 FINAL EXAMINATION.— PART III. 27. What balances are brought down in re-opening Single Entry books ? (Note l,p. 190 28. What is meant by closing an account? (Note 6, p. 23.) 29. Why not carry Expense, Commission, and Exchange directly to Profit & Loss, and avoid opening these accounts? (Note 4, p. 24, and note 3, p. 129.) 30. What is meant by checking? (Note 2, p. 32.) 31. What is the use of the Journal ? (6, p. 25.) 32. How may this book be dispensed with ? (6, p. 25, and 5, p. 91.) 33. What other title would better express the nature of the Stock account ? (Note 1. p. 26.) 34. Why drop the ciphers in the cent column ? (Note 8, p. 27.) 35. How do we show how far the Day-Book is Journalized ? (7, p. 29.) 36. How do we show how far the Journal is posted into the Ledger ? (6, p. 29.) 37. What is to be done when the Journal is posted ? (Note 2, p. 32.) 38. What must be done before attempting to close the Ledger ? (Note 3, p. 32.) 39. What is the use of the Trial Sheet? (Note 1, p. 36.) 40. All closing entries for the Balance account are written red, while Profit & Loss, and all others, are black. Why is this distinction? (Note 6, Stock acct. p. 33, and note 7, Merchandise acct. p. 33.) 41. What composes the Dr. and Cr. sides of Stock ? (Notes 1 and 2, Stock acct. p. o3.) 42. What composes the Dr. and Cr. sides of Merchandise ? (Notes 1 and 2. Mdse. acct. p. 33.) 43. How does this account close if all the property be sold ? (Note 3, Mdse. acct. p. 33, and Kule 2, p. 99.) 44. How does it close if part of the property remain in hand ? (Note 5, Mdse. acct. p. 33, and Rule 2, p. 99.) 45. What is an Inventory, and where is it entered ? (1st entry, pp. 59, 61, 137, and 139.) 46. What composes the Dr. and Cr. sides of Bills Receivable account? (Note 1, Bills Rec. acct. p. 33.) 47. What does the difference between the two sides represent ? 48. How does this account always close ? 49. What do the Dr. and Cr. sides of the Cash account represent? (Cash acct. p. 34. ^ 50. What does the difference between the two sides represent ? 51. How does this account always close ? 52. What does the difference between the sides of Bills Payable represent ? (Bills Pay- able acct. p. 34.) 53. How does this account always close ? 54. If the Dr. side be $4000, and the Cr. side S6000, what does the difference represent ? 55. How do all personal accounts close ? (Hay's acct. note 2, p. 34.) 56. How do property accounts close if all or part of the property be on hand ? (Case 2. Rule 2, p. 99.) 57. What do the Dr. and Cr. sides of Profit & Loss exhibit ? (Profit & Loss acct. p. 35.) 58. What accounts close into it? (Note 2, Profit & Loss, p. 35; Note 1, Bell's acct. p. 132; Exchange acct. p. 133.) 59. When is this account closed, and into what account or accounts does it close ? (Note 3. Profit & Loss, p. 33; Sect. 4, p. 130; Note 2. Profit & Loss, p. 134.) 60. What is Expense account Dr. for, and how does it close ? (Note 1, Exchange acct. p. 133.) 61. What is the Exchange account Dr. and Cr. for, and how does it close ? (Note 1, Exch. acct. p. 133.) 62. What is the Interest account Dr. and Cr. for, and how does it close ? (Note, Interest acct. p. 168.) 63. What is the Suspended List debited for, and how does it close ? (Note 6, p. 130 ; Not«^ 7, p. 129; Note 1, p. 134) 64. What is to be done when a suspended account is paid ? (Note 1, Martin's acct. p. 132.) 65. What do the Dr. and Cr. sides of Balance account represent ? (Balance, p. 35.) 66. If the Dr. side be S15000, and the Cr. side $10000, what does the difference rej^rcsent ? (Note 4, Balance acct. p. 35.) 67. If the Drs. bo $8000, and Crs. $12000, what does the difference represent? (Note 3, Balance acct. p. 35.) 223 ',i f 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86, 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106. 107. 108. 109. 110. DUFF'S BOOK-KEEPING. What precaution is necessary in closing this account ? (Balance acct. p. 35, and note 4, p. 130.) Where should this account he made ? (Sect. 1, p. 19.) What is meant by re-opening a Ledger? (Note 1, p. 113.) Suppose there be not sufficient space under the old account to re-open ? (Note 1, p. 113.) How are the daily average sales ascertained for any given time ? (Note 14, p. 36.) How is the average gain per cent, ascertained upon sales of Merchandise when all is sold ? (Note 15, p. 36.) How if part of the Merchandise remain on hand ? What entry is made of an invoice of a consignment received? (Note 21, p. 41.) What is the rule for keeping account of consignments received ? (Eule 10, p. 41.) When the property is sold, how do we find the net proceeds? (Note 25, p. 41.) If the owner of this consignment draw on you on account of these sales, what account do you debit for his draft? (Note 29, p. 41.) How do you keep account of property which you consign to others for sale on your own account? (Rule 11, p. 41.) If you draw on the consignee on account of a consignment? (Note 31, p. 41.) What are Joint Accounts ? (Note 1, p. 42.) What title does the manager of a joint speculation give the account in his books? (Note 4, p. 42.) What title do the silent partners use in their books ? (Note 9, p. 42.) What is the general rule for conducting joint accounts as manager ? (Rule 12, p. 43.) How do the other partners keep an account of their investments in the speculation ( (Note 1, 2d Co. Shipment to London, p. Ill, and note 9, p. 42.) How does the manager find the net proceeds when all the property is sold? (Note 1, p. 43.) How if part of the property remains on hand ? (Note 4, 1st Co. Sales, p. 109.) How does the manager find his net gain or loss ? (Note 13, p. 43, and note 3, p. 80.) What is the rule for determining the maturity of an acceptance or note having its running time in days ? (Note 1, p. 45.) When the running time is months? (Note 3, p. 45.) When will one day's advance in the date of a note give three or four days' advance in the time of payment? (Note 1, p. 46.) When will one day's advance in the date give two days' advance in the maturity ? (Note 2, p. 46.) Upon what occasions may three or four notes, dated on different days, having the same running time in months, all become due on the same day? (Note 1, p. 47.) When will two notes, dated on different days, having the same running time in months, become due on the same day ? (Note 2, p. 47.) What ought to be done with notes which remain in hand over due ? (Note 4. p. 52,.) How do we enter a note on the Bill Book when received ? (Note 1, p. 49.) How when passed away ? (Note 2, p. 49.) What is the use of the Invoice Book ? (Note 1, p. 58.) Where is the first entry of an Invoice ? (Note 3, p. 58.) What particulars of an Invoice is required in the Day Book ? (Note 3, p. 58.) What is the use of the Sales Book ? (Note 1, p. 62.) When this book is not kept, where are the particulars of the sales entered ? (N. 3, p. 62.) How is the Commission Sales Book kept? (Note 1, p. 65.) What composes its Dr. and Cr. sides ? (Notes 2 and 3, p. 65.) Where do the entries pass from this book ? (Sect. 3, p. 66.) How is the net proceeds found, and how is it disposed of when found ? (N. 2, p. 66.) How do you enter a re-consignment on the Commission Sales Book ? (Entry Feb. 12, Commission Sales Book, p. 67.) Repeat the rule for equating time on account of sales. (Rule, p. 68.) Repeat the rule for the Compound Equation. (Rule, p. 116.) Where do we obtain the materials for opening a new set of books in continuation of old ones ? (Note 1, p. 69.) 224 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. FINAL EXAMINATION.— PART III. How can a new set of books be opened from old ones without passing the contents through the Day Book and Journal ? (Sect. 3. p. 19.) What is the general rule for correcting errors in the Ledger ? (Notes 2 and 5. p. 98. What is the general rule for correcting errors in the Journal ? (Notes 10 and 2, p. 98. How are errors corrected in the Day Book ? (Notes 11 and 2, p. 98.) What precaution is necessary in indexing accounts? (Note 1. p. 100.) Where do we obtain the particulars for an account current? (Note 3, p. 114.) Where do we obtain the particulars for an account of sales? (Note 1, p. 117.) How are the Cash and Merchandise accounts posted from the six-column Day-Book or Journal? (Note 7, p. 124, and note 2, p. 161.) How can the Merchandise Drs. be posted direct from the Invoice Book? (N. 4. p. 139. How may the Merchandise Crs. be posted from the Sales Book ? (Note 2, p. 142.; What is the use of the Private Ledger? (Note 1, p. 173.) What accounts are kept in it? (Pages 173 and 174.) What is the rule for settling interest on partners' capital ? (Page 180.) What is the rule for casting 1 and 10 per cent, commission ? (Rule, p. 199.) How are the intermediate rates found ? What is the rule for finding interest at 6 per cent, for months? (Rule, p. 199.) What is the shortest rule for finding it for 60 days ? (Rule, p. 200.) What for 6 days ? What if the rate be over or under 6 per cent. ? What is the mercantile rule for settling interest on running accounts ? (Rule. p. 201 .) What rule is adopted in the United States Courts ? (Rule, p. 201.) What is the rule for working storage equations ? (Rule, p. 208.) What is the rule for ascertaining general average? (Rule, p. 211.) Repeat the rule for dividing profits in proportion to time and amount of capital, t Rule. p. 216.) 225 % \ l! Ir DUFFS BOOK-KEEPING. PART IV. k JOINT STOCK ACCOUNTS, ILLUSTRATED IN A COMPLETE SET OF NATIONAL BANK BOOKS: AND ONE SET OF RA^ILRO^D BOOKS. TO WHICH IS ADDED A FULL SET OF PRIVATE BANKER'S BOOKS. 227 \ II INTRODUCTORY REMARKS. - ■ In the following set of National Bank Books, we present all tlie practical details of the first six months' business, from the preliminary proceedings of the originators of the com- pany, down to the declaration of the first dividend. The exercises are such as will guide the accountant in opening, conducting, and closing Joint Stock Books of any kind. We have given explanatory notes wherever we deemed them necessary for the learner's information ; but for the rules and principles of the science he must refer to the early part of the work, where he will find them minutely explained, and where every one ought to commence the study of it. In the transactions recorded in Foreign Bills of Exchange we have to acknowledge our obligations to Messrs. James G. King & Sons, Bankers of New York, for valuable inform- ation promptly and courteously afforded us in matters upon which we could obtain no information from other Banks, as but few Joint Stock Banks in New York do any direct business with foreign countries. We have arranged the forms of the following set for posting by three different methods, VIZ. First. — By Journalizing the contents of the General Cash Book. Second.— By constructing the General Cash Book so as to admit of direct posting from it to the Ledger. Third. — We have arranged the Ledger Titles upon the Receiving and Paying Teller's Cash Books in such form as to admit of direct daily posting from these books to the Ledger without the intervention of either a Journal or General Cash Book, introducing the greatest abridgment that the process will admit of. MINUTE BOOK. CITY NATIONAL BANK. DECEMBER, 1866. 1. This book is a journal of the preliminary proceedings of the Company. We have not continued it after the general business of the Bank commenced. After that date there is but little to record but the date and names of the members present at each meeting. The book is usually in the charge of the Cashier. 229 For obvious reasons, we have made no entries of the present premiums upon Gold. 228 I< K" M I tt DUFF'S BOOK-KEEPING— PART IV. MINUTES OF THE BOARD OF DIRECTORS OF THE CITY NATIONAL BANK. FIRST MEETING. The provisional Board met at the office of John Ward, Esq., December 10th, 1866. PRESENT. John Ward, James Harper, Wm. Major, Wm. B. Archer, Wm. Hay, J. C. Baker. Mr. Ward, the acting President, stated that Article V. of the Articles of Asso- ciation directs us to call a meeting of the Stockholders for the purpose of electing three additional Directors, to complete the Board, within ten days of the date when the subscription to the Capital Stock was completed. As all the stock has been subscribed, he would offer the following resolution : — * Resolved, That the subscribers to the Capital Stock of the City National Bank be notified that an election of three Directors, to complete this Board, will be held at this office on the 20th day of December, 1866, between the hours of 12 M. and 4 P.M. Adjourned to meet on December 20th. CHAS. P. DUFF, Acting Cashier. MINUTES OF SECOND MEETING. Office of John Ward, Esq., Thursday, December 20th, 1866. PRESENT. John Ward, Wm. B. Archer, J. C. Baker, James Harper, Wm. Hay, Wm. Major. Mr. Ward, acting President, laid before the meeting the following report of the inspectors of elections. The undersigned, inspectors of the election of Directors for the City National Bank, hereby certify that the following statement is the true and correct number * of votes given for the three Directors elected this day at the office of John Ward, Esq., by the Stockholders of the said Bank, to complete the Board of Directors for the same for the year 1867 : — Thomas Mitchell, 4400 votes. Robert Lenox, 4391 Robert Banks, 3998 R. C. Root, Richard Irvin, J> Inspectors of Election. Thos. B. Smith, Sworn before me this 20th day of December, 1866. Thos. Archer, Alderman. 230 C( (I NATIONAL BANK ACCOUNTS. Mr. Harper then offered the following resolution, which was adopted : Resolved, That Thomas Mitchell, Robert Lenox, and Robert Banks, are dulv elected members of this Board, and the acting Cashier is hereby directed to notif\' the said parties of their election. Mr. Hay then proposed the following resolution, which was adopted : Resolved, That the Board adjourns to meet at this office on Monday, December 24th, 1866, at 2 p.m., for the purpose of electing a President and Cashier. Adjourned. CHAS. P. DUFF, Acting Cashier. MINUTES OF THE THIRD MEETING. At the office of John Ward, Esq., Monday, December 24th, 1866. Wm. B. Archer, Wm. Hay, J. C. Baker, Robert Lenox, present. John Ward, James Harper, Wm. Major, Thomas Mitchell, Robert Banks. Mr. Ward stated that the Board had met for the purpose of electing Bank Officers for the year 1867. For the office of President of the Board he understood there were but two candidates, Mr. Archer and himself. He declined saying anv thing of his own qualifications; but of his friend Mr. Archer, he felt it' his duty to say that his long, successful, and honorable career among us as a merchant eminently fitted him for this responsible office. Mr. Hay arose and stated that he fully agreed with Mr. Ward in his high opinion of his friend Mr. Archer ; but he thought the members of the Board would agree with him in the opinion that both the candidates were eminently fitted for the office. Mr. Lenox then moved that the Board proceed with the election. And for this purpose he nominated, as Judges, Robert Banks and Thomas Mitchell, who were accepted. The Directors voted, as usual, by ballot, and the Judges reported For John Ward, five votes. For Wm. B. Archer, four votes. Mr. Banks then announced to the Board that Mr. John Ward was dulv elected President of the City National Bank for the year 1867. The Board next proceeded to elect the Cashier. Mr. Harper nominated Mr. Chas. P. Duff. Mr. Lenox nominated Mr. Wm. Draper. Upon the ballot Mr. Duff received six votes ; Mr. Draper received three votes. Whereupon Mr. Banks announced that Mr. Chas. P. Duff was duly elected Cashier of the City National Bank. The President suggested the appointment of a committee of three to procure a suitable building for the Bank. 231 Ill I DUFF'S BOOK-KEEPING— PART IV. Mr. Ward nominated Mr. Archer. Mr. Harper nominated Mr. Hay. Mr. Lenox nominated Mr. Banks. When the following resolution was read and adopted : — Resolved, That Messrs. W.B.Archer, Wm. Hay, and Robert Banks, are hereby appointed a committee to procure a suitable building for a Bank, and report upon the same at the next meeting of the Board. The President next recommended the appointment of a committee to draft By- Laws to define the duties and regulate the powers of the Officers and Directors. Mr. Major nominated Mr. J. C. Baker. Mr. Mitchell nominated Mr. Robert Lenox. Mr. Hay nominated Mr. Jas. Harper. Whereupon the following resolution was read and adopted : — Resolved, That Messrs. J. C. Baker, Robert Lenox, and James Harper, are hereby appointed a committee to draft By-Laws for the government of the Officers and Directors of this Association. The meeting adjourned to meet on Monday, December 31st, 1866. CHAS. P. DUFF, * Cashier. MINUTES OF THE FOURTH MEETING. At the office of John Ward, Esq., Monday, December 31st, 1866. PRESENT. The President, Wm. B. Archer, J. C. Baker, James Harper, Thos. Mitchell, Wm. Hay, Robert Lenox, Wm. Major, Robert Banks. After reading the minutes of the last meeting, Mr. Archer, chairman of the Committee on Bank Building, reported, That, not being able to find a building that they can recommend for purchasing, the committee advise the Board to lease the premises No. 41 Wall Street, recently occupied as a Banking House by Messrs. Greenwood, Cox & Co. Immediate possession can be obtained at a rent of $4000 per annum, and the committee are of the opinion that $1400 will cover all expenses necessary to prepare the building for our business. Mr. Mitchell then offered the following resolution, which was adopted : — Resolved, That the President is hereby authorized to lease the premises No. 41 Wall Street, for a term of five years from the first day of January, 1867, for the use of this Association, and to contract for such repairs and improvements upon the same as he may deem necessary to fit them for our Bank, and that the expenses of all such repairs and improvements, together with the rents of the said premises, during the said lease, be paid out of the funds of the Bank. Mr. Lenox proposed the following, which was also adopted :— 232 NATIONAL BANK ACCOUNTS. Resolved, That the Cashier is authorized to purchase the necessary furniture, books, stationery, and such other articles as he and the President shall deem necessary to prepare the Bank for business. The President then stated that about $300,000 of the Capital Stock had been paid in. Would it not be proper to invest a part of this amount in United States Bonds? Whereupon Mr. Harper moved the following resolution : — Resolved, That the President is hereby authorized to invest in United States Bonds such amount of the funds of this Association, now in hand, as he may deem expedient. Adopted. Mr. Banks then proposed the following resolution, which was also adopted : — Resolved, That the third instalment of 50 per cent, of the Capital Stock of this Association shall be due and payable on the 10th day of January next ensuing, and that the Cashier notify the subscribers of the same. Mr. J. C. Baker, from the Committee on By-Laws, presented their report, w hich was read, adopted, and ordered to be engrossed in a suitable book for reference by the Directors and Officers. Mr. Banks stated that the repairs of the Banking rooms could no doubt be so far completed as to admit of holding their next meeting in them ; Therefore, Resolved, That the Board shall meet at their Bank, No. 41 Wall Street, on the 5th day of January next, at 12 M., for the purpose of appointing clerks, » 'to I ^ T » 1, s< vi/ 01 OD a PQ •5 0) •a o » o X o •a o 9 « is « o «5 I o DC I I o '-^ « V ^ .§ CITY NATIONAL BANK, GENERAL CASH-BOOK, 1867. 1. All receipts and payments preceding the commencement of general business are first recorded in this book. Afterwards it is made up from the Receiving and Paying Tellers' Cash Books. In a large business it ought to be journalized and balanced daily, and its balance must agree with the balance of money in the vault, and in the Tellers' hands, con- sisting of Notes of other Banks, Checks on other Banks, Treasury Notes, Specie, and Our own Notes in hand, used as money. 2. In our Private Banker's accounts, we shall exhibit this book posted direct to the General Ledger, which may be done in any banking business. But we think the Journal will make this set more easily understood by the student. When it is to be posted direct to the Ledger, the form of our Private Banker's book is preferable. See p. 352. 247 t Dr. Oi^SH 1866. Dec. Iter Jan. Jan. 1 5 6 9 10 15 18 Capital Stock Mar. 19 21 2 27| 28i 30! 31 9 lOl a « // n H w w f ir » n Received on First Instalment II n II H Discount and Interest Capital Stock // u II II II u If Discount and Interest Capital Stock IT « on past due Instalments Second Instalment » ft v n If on past due Instalments Third Instalment u u lOJj Depositors Iron City National Bank 1st National Bank, Chicago 1st Nat. Bank New Orleans Circulation Balance bro't down Per Receiving: Teller's C. B. Feb. 15 Balance bro't down Circulation Per J ieceiv mgl eiic Bills discounted • ' H II Depositors » n n Exchange H n 9 16 Balance \ bro't down Circulation Per Receiving ' Teller's C. B Bills Discounted " u u Depositors " w » 1st Nat. Bank, New Orleans n » M 1st Nat. Bank, Chicago " » It Iron City Nat. Bank " » ff 9000 36000 3000 6000 67500 43500 15000 10 22000 8000 5000 6000 43000 24000 12000 28 102500 197500 50 600038; 50 399238 12300 1000 1500 500 160000 50 5745381 50 218471' 84 232000 7900 21164 136 479671 84 3530711 84 880001 18600; 6800; 12001 1600: 1200, 1868. Dec. im. Jan. Jan. Feb. Mar. 10 10 15! 470471! 84 .ACCOUNT. Cb. 1 Expense II United States Bonds Bank Furniture P'd Root, Anthony & Co., for Sta- tionery P'd Times & Tribune, Advertising // for 200 5/20 Bonds of SIOOO each P'd Ashley & Son's bill Balance to n/a Depositors 1st Nat. Bank, Chicago 1st n II New Orleans Foreign Bills of Exchange Exchans:e United States Bonds u n w Balance to n/a Per Paying Teller's C. B. n H It U It Depositors United States Bonds Iron City Nat. Bank 1st Nat. Bank, Chicago 1st Nat. Bank. New Orients E:: change Per Paying Teller's C. B. M » It It II H II II U II II tl 1/ II n Balance to n/a 16 I Depositors Per Paying Teller's C. B. 1st Nat. Bank, Chicago if ii it 1st Nat. Bank, New Orleans n /' w Iron City Nat. Bank // // n II II tt Foreign Bills of Exchange Exchange // // n Balance carried forward 150 50 200000 600 i 600038 50 7900 500 1000 44444 44 2222 22 300000 1 21-iTl 84 5T4538 50 ,„ , ' 18600 100000 3564 792 352« 116 84 479671 84 10300 1188 2352 1782 9.7.7.79 22 1189 11 1 51 470471 84 248 249 I I I ■I It .■ 2 Dr. Oi^SH 1867. Apr. 15 Bills Discounted Depositors 1st Nat. Bank, New Orleans Iron City Nat. Bank 1st Nat. Bank, Chicago Baring Bros. & Co. Exchange Bal. bro't forward Per Receivinor Teller's C. B. u tt u M H II If n » II If n u H n Certified Check unpaid ' May 14 Balance bro't down Depositors Per Receiving Tell Discount and Interest W » II Baring Bros. & Co. » » n Exchange WW If Iron City Nat. Bank WW II Bills Discounted WW If Ist Nat. Bank, Chicago WW w 1st Nat. Bank, Boston WW w June 12 Depositors Baring Bros. & Co. Exchange Profit and Loss Discount and Interest Balance bro't down Per Receiving Teller's C. B. w w w w u u n w w Balance bro't down 431438 7200 51100 8000 2000 4000 26666 2666 ROO 51 67 67 533871 85 500606 85 12788 18000 40000 4112 2 5700 6900 2394 590502' 85 576799 10 18984 20003 50 2116; 2000' 204 I 94 620107 54 603847 ' 54 .ACCOUI^T. 1867. Apr. May 15 14 Circulation Foreign Bills of Exchange Exchange Depositors Expense Per Paying Teller's C. B. u y II tt If If ff tt Baliuicc to n/a June 12 i Depositors Iron City Nat. Bank 1st Nat. Bank, Chicago Foreign Bills of Exchange Exchange Per Paying Teller's C. B. // // If II tt tt II II tt II n tt Balance to i:/ii * Checks are certified with the understjinding that they are to be immediately paid into another bank, which will present them promptly for payment. If the holder uses his check for a distant remittance, if unpaid at the time of balancing this book it must be re-entered, as in this case. Cr.« 500 20000 1290 8500 2975 Certified Check out* 533871 85 800 Depositors Per Paying Teller's C. B. 4903 75 Iron City Nat. Bank II , II If 1980 Bank of Montreal tt tt tt 3564 1st Nat. Bank, Boston tt u u 2394 Exchange tt tt tt 62 Baliiucc to u/a 5::::- 10 590502 85 8300 2772 2970 2000 218 cor. -47 54 250 251 I II • I ^ t ;, a* FOKM OF A POWER OF ATTORNEY TO TRANSFER STOCK. '0r HhIm Sl^iCrfibi^ii' /if^^m cmd^€^^e a^ia aMctn^ Uiepoca /lue ana /au/a/ a^dneu fci name ^o /ian<^ui ^o dialed €n meWa/uYa/C7€Cc^o/mr CITY NATXaNAX^ BANK OF l^ll^'SSf YORK. ^7©ifneJ50 ^anc/ ani^ - ' . 10 Duflf Brothers & Co., by Win. H. Duff Duflf Brothers & Co., u T. C. Duff . Duff Brothers & Co., // B. P. Duff . Harper & Brothers, by John Harper Harper & Brothers, // James Harper I. Jan. 10 Richard Irvin & Co., by E. Irvin Jan 10 : Lyon & Haven, by Wm. M. Lyon Lyon & Haven, // J. W. Haven . Robert Lenox Harriet Lenox R. Jan. -10' R. C. Root, Anthony & Co., by R. C. Root . R. C. Root, Anthony & Co., / R. C. Root, Anthony & Co., Ryan & Dale, Feb. 15 Roy, Wade & Co., J. Anthony, Jr. A. S. Allison . W. L. Eyan . J. C. Roy . . w. Jan. 10 John Ward City City City City City City 9 City H K City J. J. Jones.* PAYING TELLER'S CASH BOOK, CITY NATIONAL BANK, JANUARY, 1867. 1. This book is of the same form as the Receiving Teller's Cash Book, the left page recording all transactions for the accounts of the General Ledger, and the right page for the Depositors' Checks paid and certified, and for Certificates of Deposit. Although we have passed the contents of this book into the General Cash Book, the Accountant will soon perceive that the arrangement of the Ledger titles enables him to post them direct from here as easily as from a Journal. When this mode of posting is adopted, no General Cash Book is required, — the balance of that account being obtained from the Cash account in the General Ledger. 261) * In this book the Bank ought to have registered, in alphabetical order, the signatures of all per- «)n9 keeping accounts with it; and these signatures should be witnessed by the Paying Teller, or some other officer of the Bank. 268 !; PAYMENTS FOR GENERAL LEDGER. New York, 1st Nat. B'k, Chicago Fd Draft on 0. H. Bliss 1st Not. B'k, New Orleans // " " F. J. Herron Forei<^n Bills of Exchange '/ for Brown, Brothers & Co., on G. Peabody for £10,000 St'g Exchange " 5% Premium for do. U. S. Bonds /' for 300 5/20 Bonds of $1000 each G. C. B. 1 500 1000 44444 2222 44 22 300000 348166 66 Iron City Nat. Bank 1st Nat. B'k, Chicago 1st Nat. B'k, New Orleans U. S. Bonds Exchange Fd Coll. Bates & Bell Less Exchange // Coll. W. S. Hunter Less Exchange // Coll. Gregg & Hall 2000 „ I, J. Kane J600 Less Exchange f> for 100 5/20 Bonds of $1000 each n Sundry Exchanges G. C. B. 1 February 3564 792 3528 3600 72 100000 i 116 ! 108000 March 1st Nat. B'k, Chicago 1st Nat. B'k, New Orleans Iron City Nat. B'k Fd Coll. Patterson & Wild Less Exchange u Coll. Hay & Wood Less Exchange // Coll. R. Bruce Less Exchange 1200 12 2400 48 1800 18 1188 2352 1782 Foreign Bills of Exchange if for Pollock & Gilmore on R. : Rankin & Co., for £5000 St'g • Exchange n 5% Premium on ditto // Sundry Exchanges G. C. B. 1 22222 1189 1111 11 78 28733 33 22 11 270 January 10, 1867. Jj'OR DEPOSIT LEDGER 2 Harper & Bros. 3 Barclay, Hope & Co. 4 W. B. Archer 4 Lyon & Haven 1 Rich'd Irvin & Co. Paid Check If » ff H H n w G. C. B. 1 1800 1500 1000 1200 2400 7900 15th, 1867. 2 Harper & Bros. Paid Check 1 R. Irvin & Co. \i u 1 R. C. Root, Anthony & Co. II II 1 R. Lenox It » 3 Duff Bros. & Co. » ff 2 Harriet Lenox If » 2 John Ward H If 4 Lyon & Haven If It 3 Jas. Carver H a 4 Ryan & Dale ft I 4 W. B. Archer It H 5 Roy, Wade & Co If G. C. H \ B. 1 1500, 1000 600, 500 1500, 1000 300, 400, 600 600, 200 1400, 1600 2000 2100 600 2500 1100 600 1100 2500 1300 800 3000 1000 18600 I leth, 1867. 5 ,5 5 4 3 !3 3 J. W. Burnham Paid Checks A. B. Hunter U tt Roy, Wade & Co. It n Ryan & Dale n » J. Carver U It Barclay, Hope & Co. It n Duff Bros. & Co. II .7 500, 700 200, 100 400, 600 2000, 500 1600, 400 1200, 1000 G. C. B. 1 The left money column is used for short-extendinu checks where one depositor draws a number on one day. 1200 300 1000 2500 2000 1100 2200 10300 271 PAYMENTS FOR GENERAL LEDGER. Circulation P'd mutilated ret'd per B. N. R. 1 Foreign Bills of Exchange // for Betts & Turner on Bold & Starkey for £4500 St'g Exchange // 6% Premium for ditto If 1% disc't on our Dr'ft No. 1 // Expense i% II II II II 11 II Rent to April 1st II Salaries to April 1st G. C. B. 2 1000 1975 Iron City Nat. B'k Bank of Montreal 1st Nat. B'k, Boston Exchange Fd Coll. R. Glass & Co. // H W. Pay son Less Exchange II Coll. G. Wilde & Co. 9 // J. Carter Less Exchange n Coll. J. Barker & Co. Less Exchange n Sundry Exchanges G. C. B. 2 2400 1200 3600 36 2400 6 Iron City Nat. Bank Fd Coll. C. H. Ball u II J. Home & Co. Less Exchange 800 2000 ii2800 28 1st Nat. B'k, Chicago V Coll. W. Baker Less Exchange Foreign Bills of Exchange // for Dyer & Morgan on Swain- son & Willis, £450 St'g Exchange n %ffo Premium on ditto '/ Sundry Exchanges G. C. B. 2 3000 30 160 58 272 April 1200 1 80 10 500 20000 1290 2975 24765 May 1980 3564 2394 62 8000 June 2772 2970 2000 218 7960 ISth, 1867. FOR DEPOSIT LEDGER. Paid Check // II R. Irvin & Co. R. Lenox R. C. Root, Anthony & Co. Certified Check Harriet Lenox Paid // Duff Brothers & Co. Certified* // A. B. Hunter // it John Ward Paid // Paid Certified G. C. B. 2 14th, 1867. Harper & Bros. Harriet Lenox John Ward J. Carver Ryan & Dale R. Lenox Lyon & Haven 400, 500 Paid Checks n u " » 300, 400, 700 " * 200, 300 » » 600, 800 // Protest on No. 8, ret'd ff // // // 19 G. C. B. 2 12th, 1867. Paid Check Harriet Lenox Jno. Ward # n 600, 500 Duflf Bros. & Co. // II 200, 300 R. C. Root, Anthony & Co. n u 400, 500 W. B. Archer u n 300,' 900 R. P. Duflf Certificate of Deposit No. 1 G. R. Duncan u u u « 3 G. C. B. 2 • bt* Form, Pago 274. 900 i 700 1400 500 1400 2 175 4903 75 1300 1100 500 900 1200 2100 1200 I 8300 273 f M TELLER'S STATEMENT, January 10th, 1867. " City National I>aak" Notes Legal Tender » National Bank » Gold Silver Checks and Drafts Memoranda Receipts Payments A.M. P.M. 1 10000 150000 150000 160000 44500 87000 10000 2288 50 1871 84 2100 399238 ,50 218471 84 175300 356066 66 574538 50 574538 50 A CERTIFICATE OF DEPOSIT. itij Sati0nal %mh of Seto flmrb, ^ ^ ^ -e ^ u//^: /cf^'/. m has deposited in this Banh ^ WZfi '^Ao €e4 am^ ^ne ^^l^Ufk^ '^I>oll^^ payable to his order on j^eturn of this certificate properly endorsed. \$^fi)0.^ ^^^//, CASHIER. ll -^ THE OrrERIJ^G BOOK, « CITY NATIONAL BANK, JANUARY, 1867. 1. This is a memorandum of the business paper offered to the Board of Director^ for discount. The owner endorses his signature on each piece of paper. If rejected it i^ returned to him. If accepted, it is numbered, and entered in the Book -Notes and' Bilk Discounted." 275 I. rhis certificate is negotiable either by blank or special endorsement. (See Entry, p. 265.) w li\ m"^^ t i mm lUSL. A CERTIFIED CHECK. A> 9....r^^€ii4c/ife?^ o a> o w ^ ^ s C) Ph cS 0) qqPh I> ■^ a> < (O fl'9 o »5 '-' 50 CO 00 i^ « So O 00 w ^ 25 o CD '•-3f*H fi^shj-^ft •73 'd T3 "^ rri « O O) O ^ '4>> -W ro;>, 1 )ec. 1 2 mos. Feb. 4 25,12% 2000 8i33 40 48.33 195167 2 Feb 15 RvMM tfc Dale Nov. 12 ?. II ,15 36 1000 6 6 994 4 15 Barclay, Hope Dec. 14, 60 ds. 15 36! 1 1800 10 80 10 80 1789 20 3 15 J. Carver | 14! 1 60 '/ 15 36 1600 9 60 9 60 1590 40 3 U W. B. Archer Nov. 10 4 mos Mar. 13 62 1%' 1200 12 40 12 24 40 1175 60 4 Mar. 16 Lvon c'v- Haven Dec. 14 60 d:-'. Feb. 15 36 1500 9 9 1491 4 Feb. 15 R. Irvin & Co. 14 i 3 mos. Mar. 17 66 1 3000 33 8913 52 33 2967 141 13 11958 87 1 Mar. 16* Deprs 8913 Int. 1! t 52 Fxch. i 12100 12100 Jour. 1 * * Mar. 17 was Sundtiy. f The Journal explains how to post these matters direct to General Ledger. Friday, February 15, 1867. 1866. W. B. Archer Nov. 13 R. Irvin & Co. Oct. 8 Roy, Wade & Co Sept. 9 DuffBros.&Co. 1867. 13 R. Lenox Feb. 11 Root, Anthony & Co. Jan. 12 |16 29 3600 11 24 ■2% 2400 12 25 1% 1800 16 29 3300 .16 1 29 1200 16 29 , 2100 1 i 1 14400 1 i , - — - 17 40 17 40 3582 60 4 Mar. 16 9 60 48 57 60 2342 40 1 1« 7 50 18 25 50 1774 50 5 1§ 15 95 15 95 3284 05 3 1« 5 80 5 80 1194 20 1 16 1015 10 15 2089 85 1 16 60 40 66 132 40 14267 60 Deprs. 66 40 Int. 66 Exch. Saturday, March 16, 1867. i 1867. i ■ 1867. A. B. Hunter Jan. 12 3 mos. Apr. 15 30 ! 1500 J. W. Burnham Feb. 1S66. 11 60 ds. 15 30 2400 DuftBros.&Co^ -Dec. 12 4 mos. 15 30 90(^ 1867. John Ward Mar. 13 1 1 30 ds. 1 i 1 ' i 1 ' 1 15 30 j 2400 7200 7 50; 12 Ij 4 50 12 36 J. Carver |!Apr. Lyon & Haven \ Feb. W. 1>. Arcber i Jan. Rvan & Dale Mar. 12 Monday, April 15, 1867. 1867. May 13 28 14 29 14 29 14 29 V/c 2400 II 1 1600 1500 1800 7300 14400 Jour. 2 7 50 1492 50 5 Apr. 15 12 2388 5 15 4 50 12 36 895 5a 3 2388 2 7164 36 7200 15 Deprs. Int. Joor. 2 1120 12 23 20 2376 80 3 May 14 7 73 1 7 73 1592 27 4 Prot'd 725 7 25 1492 75 4 May n 8 70 ' 8 70 1791 30 4 14 3488 12 46 88 7253 12 34 8S 12 Depn. Int. Exch. 7300 Jour. 2 ^7^^ NOTES AND BILLS DISCOUNTED No> Drawer. 22 A. J. Pierce 23 Harper & Bros. 24 Note 26 A. Stewart & Cb. Endorser. J. W. Burnham J. Betts & Co. Lyon & Haven J. W. Myers Payer. Payable in Hay & Wood J. R. Weldin & Co. Davy, Jones & Co. J. Home New Orleans Pittsburgh City Pittsburgh Tuesday, May 14, 1867. Discounter. Date. Time. Due. 2 S ,.£ 5^ Amount. P^ t^« 1867. 1867. John Ward May 14 90 ds. Aug. 15 93* 2% 1200 Barclay, Hope - 14 60 // July 16 63 1% 800 Lyon & Haven 1 3 mos. Aug. 4 82 2400 t Int. Exch. Roy,Wade&Co 14,:90ds. 15 93 1% 1800 6200 IS 60 24 840 8 32 80 27 90 18 lut. & Exch. Net Proceeds. Wheu Paid. 12 60 1157 40 2 16 40 783 60 3 32 80 2367 20 4 45 90 1754 10 5 87170 50 137 70 6062 30 87 70 I If i 'I 6200 Depis. Int. Excb. Jour. » * In some States the law authorizos the banks to charge interest for th.- di.y o! discount and dav of payment In New York the rule is as stated p. 45. . i j mu .^^m I i NOTES AND BILLS DISCOUNTED 26 27 28 29 30 Harper & Bros. Note // J. West & Co. Note Harper & Bros. J. Page A. T. Howden Barclay, Hope & Co. R. Irvin & Co. W. G. Johnston & Co. A. B. Weed J. Gardner F. L. Rainbow R. Banks Pittsburgh City // Pittsburgh City 1. This is a register of all Foreign Bills of Exchange usually bought by the President under (By- Board. But this paper, being usually bought at a premium, cannot be registered on " Bills Discounted" Foreign Bills When received. 1867. Jan. Mar. Apr. June No. Drawers. 10 1 16 2 15 3 12 4 DraweoH. Endorsers. Brown Brothers & Co. Pollock & Gilmore Betts & Turner Dyer & Morgan George Peabody R. Rankin & Co. Bold & Starkey Swainson & Willi? Wm. Page Marks & Cowden Stacy & Evans W. Martin 280 Wednesday, June 12, 1867. 1867. 1887. i : I Harper & Bros. June 12 60 ds. Aug. 14 63'!%' 600 ' 3 113; 1600 4 ; 84! i! 1800 8!ll8l!l% 1200 13 123 , 40001 J. W. Burnham May 30 4 mos. A. B. Hunter June 1 3 // Barclay, Hope 5 R. Irvin & Co. 10 3 4 ,4 aos.jpct. " jSept. '/ Oct. // // 6 30 6 3013 25 20 23 60 12 12 _ 167 23 18 12'30 ' 587 70 2 30 13 1569 87 5 25 20 1774 80 5 3;5 60 1164 40 3 82 _ 3918 1 185 23 9014 Dej.™. 167 23 Int. 18 fixch. 9200 9200 Jour, -t BILL BOOK. Laws, Article X.) direction of the Board; or, if desired, each transaction may be suUiiItied to the book without changing its form. of Exchange. Where drawn. Dated. Sight. New York Montreal Toronto New York 1867. I Jan. 10 Mar. 5 Apr. 10 June 12 Payable in. Amount. Wnen Uemitted. Memoranda. i60 days 1 ■60 // 30 " 60 * ! I II London Liverpool ' II London £ 10000 6000 4500 450 s. d. 1867. Jan. Mar. Apr. June 12 Jour. 1 * 16 i; 2 15 2 12 ; 3 * See ulao P. T. C. B. 1. 281 •e t o i OS t o a § a ;«>? pes Pi Pk OQ Pi >» ei Hi I- £ o 9 g CO 0) (M o s 03 O o o 'o (3Q s e8 > OQ S • F-« =. ^ s ^ cc ^ "^ OS ^ <^ irlv c^ o ^ b o S ':5 ^ 03 OJ .1— I OQ o ::: ^ r^ 55C fe O ." *• G3 fl ^ .1^ "^ ^ "72 ^ « o OJ o o S 2 &c C . 03 ^ a) Ph 03 . cc OJ S "1^ j3 fi ^ .s § "" "^ -g ^ t^ ^ 5 0> «, <=' ® rt 5^ a a s CO 03 =2 -<.9 pi O o s-^ 03 § ^ £ I fl == S 5::! 03 03 ciS Pi Cl,^ 03 O rt »-' P. o i> >-j DO rC r—i P rH 0> c rS p- 3 s^ c P. ^ ^ ^ S ^ o z> o ^ ^ ^ . 1 ! IMPIUS-I SIOSS. I Let* TEB. A B C D Date. ! Ii Teeascrt Number. Bask Numbkk. Dbnomi NATIOK. Amount. 20000 20000 20000 20000 Mem. 1887. Jan. 101 i 10 15 15 16 16 16 16 16 1 t 4000 4000 4000 40001 1867. Jan. Jan, Jan. Jan. Jan. Jan. Jan. 1 I Jan Jan 5 r 5 5 1 5 m O 5 5 5 5 324001 to 328000 324001 // 328000 324001 // 328000 324001 II 328000 328001 to 330000 328001 // 330000 328001 // 330000 328001 // 330000 415001 to 425000 : 415001 // 425000 415001 II 425000 415001 // 425000 425001 to 425800 425001 II 425800 425001 '/ 425800 425001 '/ 425800 ; 430001 to 430500 ! 430001 // 430500 430001 // 430500 430001 // 430500 430501 to 480600 430501 II 430600 430501 II 430000 430501 V 430600 430601 to 430625 430601 II 430625 430601 " 430625 430601 " 430625 ! 430626 to 430630 i 430626 // 430030 430626 // 430630 430626 // 430630 ' 430631 to 430632 430631 // 430632 430631 // 430632 430631 /' 430632 1 to 4000 1 // 4000 1 II 4000 1 // 4000 4001 to 6000 4001 // 6000 I 4001 // 6000 1 4001 // 6000 6001 to 16000 6001 '/ 16000 6001 '/ 16000 6001 '/ 16000 16001 to 1680Q 16001 '/ 16800 16001 /' 16800 16001 " 16800 16801 to 17300 16801 // 17300 16801 '/ 17300 16801 II 17300 17301 to 17400 17301 // 17400 17301 /' 17400 1730. " 17400 17401 to 17425 17401 II 17425 17401 '/ 17425 1 17401 // 17425 17426 to 17430 ; 17426 II 17430 17426 // 17430 { 17426 II 17430 17431 to 17432 17431 // 17432 17431 II 17432 17431 // 17432 t 58 5s 5sl 58 lOs 10s'. 10s lOs 5s 5s 58 58 lOsi lOsj 10s' lOs 208 208 208 208 508 508 508 50s lOOs 100s 100s 100s 5008 5008 5008 500s i 1000s lOOOs 1000s 1000a A B 80000 R.T.(3.B.l 2000 2000 2000, 2000 ; 20000 20000 20000 20000 80000 R.T.C.B. 1 Feb. 10000 10000 10000 10000 A 1 B C D A B C T) 50000 50000 50000 50000 200000 R.T.C.B.1 800 800 800 800 8000 8000 8000 , 8000 % A B C D A B C D A B C D A B C D A B C D 32000 R.T.C.B.1 Mar. 500 500 500 500 t 10000 10000 10000 10000 40000 • R.T.C.B.2 100 100 100 100 5000 5000 5000 5000 20000 R.T.C.B.2 25 25 25 25 2500 2500 ! 2500 2500 10000 R.T.C.B.2 5 5 5 5 2500 2500 2500 2500 10000 2000 2000 2000 2000 8000 i 1 R.T.e.B.2 2 2 2 2 R.T.C.B. 2 1 i When ani> 1867. Apr, How Rktiked. 15 NoTKS. i TEEA8URT Number. iBank Niimber. ti^Tm"' '^*'""^^^^- Mm Sent to Wa.shington 10 324001 to 324010 10 ! 324051 II 324060 1 to 10 1 OS 51 '/ 60 i 5s 50 MutiJate«l 50 20 328001 II 328020 4001 /' 4020 | 10? 20<» 20 328041 // 328060 4041 n 4060 1 10s 200 500 P.T.(\B.2 284 285 i FORM OP PROTEST FOR NON-PAYMENT. Jnited States of Aimerica. "SBe if ^nown^ That on the day of the date hereof M. W. ^. ^ool, mm guljUF, ly authority of the tf^omwottwealttl Of getttt.^ylvattia, duly commissioned and sworn, residing in the City of Pittsburgh, County of ^vrRTUET LIBERTY U INDEPENDENCE.^ Allegheny, in the said Commonwealth, at the request of f 1® tw%m ilty lattom'Sl l^ifc^ exhibited, the original .rJ^o^ whereof a true copy is on the other side written (the time therein specified for its payment having fully expired), t€^€€d€t/ whereof I duly notified the <=^6a/z€l u^/ W^iM^^^ QShcreicpon /, the said J^otary, at the request aforesaid, Have f t0tej$tcd, nnd Do hereby solemnly ^Xt^U^i, against the ,=M€i^t «W ^^u/ac^^l of the said .=Jfo^, and all others concerned, for all exchange, re-exchange, costs, damages and interests, suffered and to be suffered for want of ,£^€iy^»»t€^ thereof, V^xxs gone anb |rotesicb, at Pittsburgh, the rt< GO tJ< r-l • OQ «B s c3 o to O O 02 O) J* O fl fl g-^ ^ S O ? »H 03 M o o ^ L^ ° k %: > o cS ^ cS >^ 'Vi.ii -J Jh CO i o • F-l a pq 0} O o o a o u o p4-^" « fe- es w a o >^ 1-1 2 ii a I o t4 OQ > OQ o S ;|pqw S3 OQ CO f-i » i = PQ g c3 % a • ^ « Q S d a OS Xtl ;3 44 pq . ,-§ 03 ■^ ^ o o •6 1 S • p-4 ft -3 ^J o OQ PlH o o •a d es pq o •I— t -«^ a M d :?; o CO C5 S « o ^ pd cJ 03 > CO 03 o Ph O J 1-5 PhH^ pq S^ to o d 03 O P5 ^^ d ^^ cu C -jj ^ rh rt >» O . . HiWP^P^H^P^ O ■"^ 5j OS PM d o e3 K^ f-l si O 03 1-3 o a> n 90 :i a rH(MCO^rH©lCO O^O COt-THiOt-COOiOr-j^CO lO CO lO Tt< eq r^ d pd • Si 292 i TICKLEE, CITY NATIONAL BANK, o ^'^ f-l 'c3 a> -^ pq £ ed PP . o WW • a dhj ^ 05 O tH JANUARY, 1867. 1. This book records the day of payment of all the business paper in the Bank. It is made up from the Discount Book and Collection Kegisters. One, and sometimes two pages have to be reserved for every day's business in the year. And in extensive business it is often convenient to have one book for discounted paper, and another for collections, and sometimes one for Foreign collections. To save room, we have entered all in one book, the form of which will serve for the others when the nature and extent of the business require them. Although a very important book, it is, strictly speaking, only a memorandum-book, from which payers are notified of the day upon which their paper falls due. The Directors also regulate their discounts by learning from it the amount of discounted paper falling due every day. 2. As paid, our own paper is marked " Entered/' or " Paid." Collections are marked *' Passed." ! 293 L'A i o S « to ta 03 OQ O O « PM o »a lO lC »0 CO CO »0 »0 lO o es iS us (14 w « i a CO 00 ^ - - ^ i 58 Si 5: 5: eU CO CO eS lO »0 lO lO s <1 Ph :; %: ::: ^t< T^ ^ ^ * s 4) (1h 02 c :3 « 1 ^ A ^ W) -Si O i*i OQ a el 'f) 9 tiO t 3 D •^ ^ 1 z; Oh ■w a s a ( < CO CO (M 1 CO CO 1-1 ( Ah o o o o (M , O •« OS (h 03 S: es - gj— -A,, W Pk ft. ^ fti CO to a =« « OS •43 03 a> S V a ft • V m-B • a a Q . ei PhP- ^ H3 rt CO 00 CO 00 (M CO QO CO 2 ^4 O a o a g^ s 03 «« o ai 03 p^ Ph It III! I s o 11} m ti ^ • ■»a 9M Bro a ^ >»H u > \ 9* In ^ « ^ 1 w :zi I 1 s Oi=t«=:==-=^ 2 S5 1 ;z; « c • 1 OQ «!d «M > a •^4 5 s > £ hH • P^ e 9 M -ts s a> ^ 03 ^ P ^ ^ a ST e8 e3 l>k w P3 «^ . o c AC) 00 o OQ ^ C 03 . . >» OQ OQ « « > ► « OQ OQ ^ ^ 53 d 1 1 OQ OQ 1 » CO CQ ^^ CO QO CO GO (M O r-( CO QO CO CO QO Tt< "• O) >H ^^ o O = S^gg^.g =^.lffl «^ o 02 ?2 S GC S CS c^ |,^o^«o.|pc^ -sart f=»^r=^A3P^H-;p ^ 5 ^ p^^MO^H^Mp^M^^^ V o Ohi ^^< •-3QQ a 1 rt W3 >^ e3 <— 1 . Ph ^ II • ^ ' a ^p^ ;^ O ^ a: o J2; 12; O * & fe ft » ><1 M o o fl a OD O o =« > S P5 *-• fl P* > 03 O m 03 o O) ,:5^-5 ^q e^^q QQ 00 QO 05 O 1— t l> tH (M !M 00 a il 1 i Mil I , t I I m 1 . S g >>.2 » b © " ^^ d t->S d c3 ) AND H. Ball Home & m. Baker Due JuD L. Dixon .y & Mart . Burton s. Carver Due Jul m. Beach J. Holm len Park B. llyan W. Park Due Jul R. Weld Due Ju] . D. Wall las. Page Butler yers & H d © d dH^^ hiP^^? ^H<. 5 « * hi =3 ^ ^ r 2 ^ QQ © > O cS g : o pq g n % O - © ^ Phi-5^A ,6 Oi O »-• » , rH r-t O rH (M CO 7-\ T-\ T-\ T-i •^ lO CO t» 00 r^ r-\ i-( T-^ ■r-i CO -rj* O CO b- l-K T^ T->^ T-K i DEPOSITORS' LEDGER. CITY NATIONAL BANK. JANUARY, 1867. 1. This book contains no accounts but those of Depositors and Certificates of Deposit. We have adopted a new form which we think Banks will find very convenient in business, as it constantly shows the balance of each account. The accounts are never closed until the depositor desires his Pass Book balanced. His account is then footed, and the balance brought down into the new account. See Duff Brothers & Co.'s account, p. 300. 2. The aggregate balances of this Ledger must agree with the balance of the •• Deposi- tors' " account in the General Ledger. 297 296 RICHARD IRVIN & CO. JOHN WARD. % . , \ II lii^ 1 1 18fl7. Jan. Feb. Apr. May June 10 15 15 14 12 Cash Discount No. 7 Check Cash Collection w Discount No. 9 '! Check // Collection Discount No. 30 ! Checks. 1 2400 ! i j 2100 2000 1 ROBERT LENOX. |l 1867. Jan. 10 Cash Feb. 15, // Discount No. 12 Checks Apr. 15 Cash Check May 14 Collections June Protest on No. 8. Collections 2500 ••.100 2 Deposits. 1500 2967 1800 1552 2400 2342 784 3918 40 Balakcb. 1200 1400 1194 20 3000; I 3528' 4200 ! 1294 20 3194 20 6720! 20 10920 20 R C. ROOT, ANTHONY & CO. 1867. Jan. 10 Cash Feb. 15 Discount No. 13 1 Check 600 Apr. 15 ' Cash Certified Check 1000 May 14 Cash JunCj 12 Collection^ Checks 1 900 1600 900 2089 1 85 50001 i 3000 1 2700 3989 85 7989! 85 10989 . 85 ! 12789 85 If Checks i. Deposits. BALWot. 1867. Jan. 10 Cash 1800 Feb. 15 Checks 1100 700 Mar. 16 Discount No. 17 2388 Cash 1500 4588 Apr 15 // 2500 Check 2000 5088 May 14 Discount No. 22 1157 40 Checks 1 1400 4845 40 June 12 // 1100 3745 40 ! 1 HARRIET LENOX. 1867. Jan. 10 Cash Feb. 15 Check Mar. 16 Cash Apr. 15 Check May 14 Cash Check June 12 Cash Check HARPER & BROTHERS. 299 400 1600 2800 3200 3700 1867. * i Jan. 10 Cash Discount No. 1 Check 1800 2000 1951 67 i 2151 67 Feb. 15 Cash Collection Check 2000 2500 784 ! 3435 67 Apr. 15 Cash 5700 9135 67 May 14 Collection * Checks 900 1176 9411 67 June 12 Discount No. 26 587 70 9999 37 298 I 11 It I lit r 3 DUFF BROTHERS & CO. RYAN & DALE. 1867. Jan. 10 Feb. 15 Mar. 16 Apr. 15 May 14 June '12 Cash II Discount No. 11 Check Discount No. 16 Checks Cash Certified Check Cash // Checks ,". ;:C0 Deposits. Balance. 1000 1000 3284 05 June 30 Balance 1100 895 50 2200 6500 800 1 1 2000 2100 500 ^12170 55^1 16779 55 16779 55 12179 55 4184 i 05 2879 55 8579 55 10579 55 I 12179 55 BARCLAY, HOPE & CO. 1867. Jan. 10 Cash , Discount No. 3 Check Feb. 15 Collection Mar. 16 Cash Check May 14 Discount No. 23 June 12 // « 29 1500 1100 800 ! 1789 20 1600 1400 783 60 1164 40 JAMES CARVER. 1807. Jan. 10 Cash Discount No. 4 Feb. 15 Collection Checks Mar. ,16 // Apr. 15 Discount No. 18 Cash May ,14 Checks 1089 20 2689 20 2989 20 8772 180 4937 120 600 1590 40 2190 40 1200 2090 40 90 40 2376 80 2100 4567 20 1 4067 20 18G7. I Jan. 10 Cash Discount No. 2 Feb. 15 Collection Checks Mar. 16 « Apr. 1 15 Discount No. 21 May 1 14 Checks 1867, Jan 10 Discount No. 5 Check Feb. 15 Discount No. 8 Checks Apr. 15 , Discount No. 20 ' Cash June 12 Collections Checks /•* *. 1867. Jan. 10 Discount No. 6 Check IJeb. 15 Collection I Checks Apr. 15 Discount No. 19 Cash May 14 Discount No. 24 I jj Protest on No. 19 June' 12 ' Cash Collection Checks 1)EP08IT i. Bal\m:e. ■i 800 t 994 1794 3528 800 ,522 2500 -022 1791 30 3x13 30 1400 2413 30 i W. B. ARCHER. 1000 3000 1200 LYON & HAVEN. 1200 2500 1175 60 175 60 3582 60 758 20 1492 75 0000 12250 95 2744 13794 95 1491 2100 291 1 75 1592 27 4350 5833 27 2367 20 8198 72 1300 2940 12438 72 The red figures Indicate the balance overdrawn. 301 A. B. HUNTER. 18C7. Feb. 15 Cash Mar. 16 Discount No. 14 I Cash I Checks Apr. 15 Certified Check June 12 Discount No. 28 Cash CflKCKa . Deposits. 1 400 ' 1492 1100 50 300 1000 1774 80 1200 1 1 1 , i Balance. 2692 1692 4667 50 50 30 GENERAL LEDGER, ROY, WADE & CO. h ' i 1867. Feb. 15 Discount No. 10 I 11 Check Mar. 16 Checks Apr. 15 Cash , May 14 Discount No. 24 1774 50 1000 774 ; 1000 3700 3474 1 V 1 1754 10 ! 5228 50 J. W. BURNHAM. 1867. « Mar. 16 Discount No. 15 2388 Cash 1600 Checks 1200 2788 Apr. 15 'Cash 1950 4738 June 12 t Discount No. 27 1 1 1569 87 6307 1 87 CITY NATIONAL BANK JANUARY, 1867. 1. This book, like the Ledger in any other business, is the book which exhibits all the results of the business. In the present instance it is made up exclusively from the Journal. In a business in which that book is dispensed with, the Ledger is made up from the Gene- ral Cash Book, as in our Private Banker's Books. But, as we stated, notes pp. 261 and 269, we have arranged the Receiving and Paying Tellers' Cash Books so as to admit of direct posting to this Ledger, When that mode of keeping the books is adopted, these two books will be auxiliaries to the Deposit and the General Ledger. 2. From this book the monthly and semi-annual statements are made out. 3. Havitig given indexes to all the Ledgers in the first three parts of this work, we omit them in the fourth part. 4. The Taxes on the profits, circulation, and deposits of the Bank, being payable in July and January, could not be practically exhibited here. 5. Before closing, a Trial Balance must be taken. We have made the closing entries on the face of the Ledger. Those who prefer journalizing them can do as we have done with our Rail Road accounts, pp. 334 and 335. CERTIFICATES OP DEPOSIT. 1867. Apr. 15 R. P. Duff, I I H. P. Ford, May 14 ! G. R. Duncan, June 12 ' R. P. Duff, j G. R. Duncan, No. 1 2 3 1 8 2100 1200 2100 2400 1200 4500 5700 2400 • 303 302 I! i< I 1 i Dr. CAPITAL STOCK. Ck. June ''^0 I>uIanco o 31 1866. 1867. Jan. 1( Cash June 30 Balance 1 300000 { 300000' 600000 600000^ CASH ACCOUNT. isee. 1 Dec. 31 1867. Jan. 101 Sundries Capital Stock Sundries Circulation Feb. 1 15* Sundries Mar i 16| // Apr. 1 15| // May 14| // June 12 '/ June 30' Balance 300038 50 300000; 15300 160000 261200 117400 101633 34 89896 43308 44 1866. Dec. 1867. Jan. 31 10 Expense Sundries 1388776 28 603847 54 U. S. Bonds Feb. 15^ Sundries Mar. 16 tf Apr. 15 " M!ay '14| « June ! 12| w ,;:;0. r::::i::cc 200 1, 200600 1 1 56066 66 l' 300000, 1 126600 ' 2 39033 ; 33 2 33265 3 12903 75 |3i 16260: f. 5 J rC'V'M"^ 1 54 1388776 28 UNITED STATES BONDS. 18CT. Jan. 10 Cash // Feb. 15 'f June 30 Balance 200000 300000 100000 600000 600000 1M7. Halanco GOOOGO 600000 304 I ' Dr. DEPOSITORS. Cr. 1867. Jon. 10 Cash Feb. 15 // Mar. 16 II Apr. 15 II May 14 // June 12 // 30 Balarue ' : T "" 1867. i i 1 7900 Jan. 10 Cash 1 12300 1 18600 , Bills Discounted 1 11958 87 te 10300 Feb. 15 Cash 1 21164 » 8500 Bills Discounted 2 14267 60 3 4903 75 Mar. 16 Cash 2 6800 3^ , 8300 Bills Discounted 2 7164 5 1. '.ii ; 1 Apr. 15 Cash Bills Discounted 2 2 I 51100 7253 12 jMay 14 Cash Bills Discounted 3 3 12788 6062 30 f f June 12 Cash 3 18984 1 66 June 30 > ! Bills Discounted 8 9014 178856 77 i 178856 66 i 1 1 Balance 120352 91 FOREIGN BILLS OP EXCHANGE. 1867. Jan. 10 Cash, Mar. 16 // Apr. 15 II June 12 II No .A 2 2 3 2 4 3 III 1867. 44444 44 Jan. 12 Baring Bros. & Co. No. 22222 22 iMar. 16 // 2 2 ,..1 20000 2000 Apr. 15 June 12 88666 66 3 % 4 3 BILLS DISCOUNTED. - V 1867. Jan. 10 Sundries Feb. 15 n Mar. 16 II Apr. 15 II May 14 II June 12 II June 30 Balance BANE FURNITURE. 1867. Jan. 10 Cash U 305 44444 44 22222 22 20000 2000 88666 66 \ \ I 12100 1 14400 2 7200 2 7300 3 6200 1 1867. Teb. 15 Mar. 16 Apr. 15 iMay 14 Jiine ,30 Cash // // Balance t 1 2 2 3 1 7900 18600 7200 5700 8 9200 i 56400 i i 56400 i 17000 i 1 i ' I ; H I i:' III ::i. S Br. DISCOUNT ft INTEREST. Cr. 1867. June 130 Profit & Loss ' 1808. I I 18724 78 Dec. 31 Cash ill 1867. j IjJan. 10 Bills Discounted Feb. 15 // " 18724 78 Mar. il6 Apr. 15 May 14 // n Cash Bills Discounted June 12 Cash Bills Discounted 1 38 50 1 89 13 2 66 40 2 36 2 34 88 3 18000 3 87 70 3 204 94 3 167 23 18724 78 EXPENSE ACCOUNT. 1866. Dec 31 Cash 18«7. Apr. 15 If 1 2 200 2975 3175 1867. June 30 Profit & Loss f 5 EXCHANGE ACCOUNT. 18W. Jan. 10 Cash 1 Feb. 15 II 1 Mar. 16 n 2 Apr. 15 If 2 May 14 II 8 June 12 II 3 30 Profit & Los^ f 5 I 1867. \- 2222 22 • Jan. 10 Bills Discounted 116 Feb. 15 Cash 1189 11 Bills Discounted 1290 Apr. 15 Cash 62 Bills Discounted 218 May 14 Cash 4131 34 Bills Discounted ; June 12 Cash Bills Discounted 9228 67 !i CIRCULATION ACCOUNT. 1867. Apr. 15 Cash June 11 s 500 47'.'r»0O 480000 1867. ' ! Jan. 10 Cash • Feb. 15 // • Mar. 16; '/ June 30 Balance 306 3175 3175 1 52 1 136 2 66 2 2666 2 12 3 4112 3 50 3 2116 3 18 67 9228 ! 67 1 160000 1 232000 2 88000 480000 , 479500 I Dr. IRON CITY (Pittsburgh.) NATIONAL BANK. Cr. 4 isr.T. Feb. 15 Cash Mar. 10 // May 14 n June 12 '/ June 30 Balance 1867. i 3564 I Jan. 10 Casii 2 1782 Mar 16 II 3 1980 lApr. 15 II 3 2772 May 14 Protest 1 i .JUllC /M> Kaiancc 10098 1 1 ! 1 1 5896 1 1 1000 2 1200 2 2000 3 2 FIRST NATIONAL (ChicagoO BANK. 1867. Jan. 10 Cash Feb. 15 II Mar. 16 // June 12 // 1 1 2 3 500 792 1188 2970 fi 1867. ! Jan. 10 Cash ,j Mar. 16 n jjApr. 15 II May 14 n 1 2 2 3 ;;it r.alanco i" 14000 June 30 Balance FIRST NATIONAL (New Orleans.) BANK 1867. ■ i Jan. 10 Cash Feb. 15 " Mar. 16 '/ Jur.c ;)0 Ualancc 1 1 2 1000 3528 2352 9700 1867. Jan. 10 Cash Mar. 16 " Apr. 15 N 1 2 2 June 30 Balance BARING (London.) BROS. & CO. 1867. 1867. Jan. 12 Foreign Bill, No. 1 1 44444 44 Apr. 15 Cash, Mar. 16 u n 2 2 22222 22 | May 14 Apr. 15 // // 3 2 20000 June 12, w // 4 3 2000 88666 66 i 1996 49 jAne 30 BalanqiB No. 1 2 2 3 June 12 '/ for No. 3 refd. 3 oO Halaucc 1' BANK OP (Montreal, Canada.) MONTREAL. 1867. May 14 Cadi 3 3564 FIRST NATIONAL (Boston.) B- 1867. i May 14 Cash 1 3 2394 1867. 1 1 May 14 Cash i ao7 BANK 10098 1500 1600 4000 6900 14000 8550 50U 1200 8000 9700 2820 I 26666 67 40000 20003 50 •n 88666 66 2394 r^^ I ! i ^ ii '•M R..i 11 •• 1 1 I I. B-^^ II Dr. PROFIT & LOSS. Cr. 1867. June 30 Expense , Dividend No. 1 Surplus Capital i il fl3 3175 5 18000 5 3681 12 24856 12 1867. June 12 Cash 3 30 Discount & Interest f 3 Exchange 3 l! 2000 18724 78 4131 34 24856 12 DIVIDEND No. L SURPLUS CAPITAL. 1! 1867. • 1 June 30 > i ■ 1 f 5 BALANCE ACCOUNT. ISflT. June 3( Cash U. S. Bonds ! j Bills Discounted Bank Furniture , Bank of Montreal I Baring Bros. & Co. Iron City Nat. Bai^ T 1867. I I f 1 603847 54 June 30 Capital Stock 1 600000 2,1 17000 2 600 4 3564 4 1996 49 4 5896 1232904 03 Depositors Circulation 1st Nat. Bk. N. Orleans 4 1st Nat. Bk. Chicago 4 Dividend No. 1 1 5 Surplus Capital 6 f 5 18000 3681 12 f 1 600000 2 120352 91 3 479500 2820 8550 18000 3681 12 1232904 03 DIVIDEND BOOK, CITY NATIONAL BANK Diyidend UTo. 1, Three per cent., declared June 30, 1867. Archer, W. B. Baker, J. C. Barclay, Hope & Co. Banks, Robert Cox, J. W. Comptou, J. R,. Duff, Wm. H. Duff, P. Duncan, Geo. R. Harper, James Hay, Wm. Irvin, Richard. & Co. Lenox, Harriet Lenox, Robert Mitchell, Thos. Major, Wm. Root, R. C. Smith, T. B. Ward, John Warren, Samuel 2000 100 300 600 100 20 100 100 30 Amount. 6000 300 900 1800 300 60 300 300 90 Bate. Beceived Paymeui. 600 1800 1 200 600 100 300 50 150 100 300 600 1500 300 900 100 300 100 300 1 1 500 1500 100 300 6000 18000 1. When a stockholder calls for his dividend, the book-keeper fills a check for th« amount, as follows : — Eity Hatitaal Saak, eatei. a/u {m^iVliamrh ^. -fiTolzeT, Esq., &t !« Bix QClioubscundL ' .„ Woiia "/ d cha\ •iae eooo.f^ '. J. (Pob'r'keT, General Book-keeper. 308 The date is then inserted in the 'Mate" column above, and the drawer of the dividend in- serts his signature in the '^ Received Payment" column, opposite the amount of his dividend. 2. Dividend Checks are charged to the Dividend Account, in the same manner that De- positors' Checks are charged to individuals. When all the dividends are paid, "Dividend No. 1," in the Ledger, will be balanced. 309 Y I M n H:l '1 !M a> CO II o o o o o (M CO o (M o CO o o T-+ lO o 30 la o •r> GO QO 70 O :3^ o o lO Od o 09 CO Od -* 1-4 1— n aa < "^ I -* kO la o h- O b- o o ^ o Tj+ o o CXD o QO o o CO o CO o u H o fl o % STANDING LEDGER. KICHAKD IRVm & CO. Date. Payable by. 1866. Dec. 14 J. W. Loring Oct. 8' Hay & Wood 1867. June 10 K. Banks 'A o A.S discounter. ^^ VM^t^- endorser. 3000 2400 Due. M**" 4000 1867. Mar. 17 Paid ,11 H Oct. 13 LYON & HAVEN. 1866, Dec. 14 Bateman & Hill 1867. " Feb. 11 J. Morton lull J. Kane 1200 1867. Feb. 15 Paid If Mar. 16 May 14 Protested 1 Some call this the "Blue Book." The form and two illustrations which we give will fully ex- plain its use and importance to the President and Directors. In business it is indexed, which enables them to refer to it and see at once what every borrower is liable for as promisor or endorser. 2. The entries are made from the Discount Book as the notes are entered on that book. REGISTER OF STOCKS. Purchased. Due. Description. 1867. I 1881. Jan'y.l 2 Feb. 1881. 25 Jan*y. 1881. Feb. 10 Feb* 25 300 Bonds U.S. 5/20s of $1000 each, 4th Series, Nos. 20001 to 20300 15 1881. Feb. 25 : 100 Bonds U.S. 5/20s of $1000 each, 4th Series, Nos. 30001 to 30100 Amount. 100 Bonds U.S. 5/20s of $1000 ) each, 3d Series, Nos. 19001 to \ 19100 ) Jan'v 2 Feb. 25 100 Bonds U.S. 5/20s of $1000 ) ^' ' each, 4th Series, Nos. 1201 to [ 1300 ) Interest is due. May 1 and Nov. 1 May 1 and Nov. 1 May 1 and Nov. 1 May 1 and Nov. 1 Remarka. This book records all stocks and bonds the property of the bank, and when the interest is payable. 311 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. QUESTIONS FOR EXAMINATION ON NATIONAL BANK ACCOUNTS. When is the General Cash Book a book of original entry? (N. 1, p. 247.) What is it made up from? (N. 1, p. 247.) What should its balance agree with ? (N. 1, p. 247.) Do banks generally keep adjournal ? (N. 1, p. 253.) When it is kept, what book receives all its entries from it? (N. 1, p. 253.) What does the Stock Ledger record ? (N. 1, p. 257.) Where are its entries first obtained? (N. 1, p. 257.) - Upon what book are the transfer entries first recorded? (N. 1, p. 257.; What must the aggregate credits of the Stock Ledger agree with ? (N. 2, p. 257.) Why are its accounts kept in alphabetical order? (N. 3, p. 257.) Where do the amounts of the Receiving Teller's Cash Book pass when a General Cash Book is kept? (N. 1, p. 261.) ^ When no General Cash Book or Journal is kept, where are the contents of this book posted? (N. 1, p. 261.) What is the use of the Signature Book ? (N. 1, p. 268.) Who should witness the signatures? (N. 1, p. 268.) Where is the balance of Cash on hand found when no General Cash Book is kent ? (N. 1, p. 269.) ^ How can a Certificate of Deposit be negotiated? (N. 1, p. 274.) What is the use of the Ofi"ering Book ? (N. 1, p. 275.) Where are the Accepted Notes and Bills entered? (N. 1, p. 275.) What is done with Rejected Notes and Bills? (N. 1, p. 275.) What is done with Discounted Paper when protested? (N. 1, p. 278.) What is done with Protested Collection Paper ? (N. 2, p. 282.) Where do we enter all paper remitted for collection ? (N. 2, p. 290.) Where do we enter Discounted Paper when collected ? (N. 3, p. 290.) Where do we enter collections when paid ? (N. 3, p. 290.) What do we record in the Foreign Bill Book ? (N. 1, p. 280.) Why not enter them on the Discount Book, as we do all other paper belono-ine to the bank ? (N. 1, p. 280.) ^ ^ "" ^ Where are all Notes and Bills entered when received for collection ? TN. 1 and 2 p. 287.) ^ What is t^e Tickler used for? (N. 1, p. 293.) What accounts are kept in the Depositors' Ledger? (N. 1, p. 297 ) When are they closed ? (N. 1, p. 297.) What must the aggregate balances of this Ledger agree with ? (N. 2, p. 297.) How are overdrawn balances indicated? (N. 1, p. 301.) What Ledger exhibits the results of the business? (N. 1, p. 303.) What book are the Monthly and Semi-monthly Statements made from ? (N 2 n 303.) V • .' F What account do we debit for the Dividend Checks ? (N. 2, p. 309.) How will the account ''Dividend No. 1" stand when all are paid ? (N. 2, p. 309.) DUFF'S BOOK-KEEPING. RAIL ROAD ACCOUISTS. JANUARY. 1867. 313 312 '■A EEMARKS. V The following set of Rail Road accounts illustrates in a condensed form the construction and equipment^of the road, the commencement of its operations, and the declaration of the first dividend. Part of the earnings are carried to credit of the Stock, part to the DiYi- BEND, and part to the Surplus Capital. The forms of Manifests, Bills of Lading, &c. are among the best in use j but Rail Road and Express Companies vary all these forms to adapt them to changes in business.. i: 314 KAIL EOAD ACCOUNTS. CONSTRUCTION AND EQUIPMENT DAY BOOK. PENNSYLVANIA RAIL ROAD, JANUARY, 1867. 1. This book is ruled with a date and voucher column on the left: the next two are for the titles cif the account and the items of expenditure. To the right of these are eleven money columns, each of which has its representative account in the General Ledger. Compare and see. 2. The figures in the Voucher column are the numbers which are endorsed upon them as they are filed away for future reference. 3. When the footings are brought forward to the end of the month, bring them under the amount in the Depot column on the left. From the aggregate footing make the Jour- nal entry. See Journal entry of January 31. 4. The Incidentals should be designated '^ Construction Incidentals," in the Journal, as there is another account of the same name in Operating Expenditures. 5. The entries in this book are made from the vouchers, and are, as the Journal entrj indicates, cash payments. » 315 h CONSTEUCTION AND EQUIPMENT, 11 s Date "1 What Aeeoiut. 1866. Jan. 4 1 Surveying Pd 8 2 Land // 9 3 Incidental Exps. II 12 4 Grading II 14 5 Depots II 15 6 Road Building II 16 7 Bridging " 18 8 Tunneling II 19 9 Locomotives II 1 do. II 10 Cars II 21 11 Fencing II 12 Incidental Exps. II 13 do. II 14 Fencing // 15 Cars // 1 16 Depots // 22 17 Road Building // 18 Lands // 19 Surveying II 20 Bridging II 21 Depots II 22 Grading 23 Incidental Exps. 24 24 Bridging 25 Tunneling 26 Grading 27 Locomotives 28 Surveying 29 Cars 30 Lands 31 Road Building 32 Fencing II 33 Depots n 26 34 Incidental Exps. II 35 do. II 36 Depots II 37 Cars For what paid. , E. H. Heastings 1 rao.'s Salary to Jan. 1st J. Cartwright, for Right of Way, per Deed M'ch 4, 1866 W. S. Haven, for Blank Books Jacob Ring, Excavating 21000 vds. @ 10^ $21' )0 Less 20% retained 420 Passal and Hay, building Freight Depot at Harrisburg Knap, Ward & Co., for R.R. Iron Carpenter & Co., Bridging Wood Run, per Contract Hall & Oxley, for Tunneling Bills Hill, // " Pillow & Lens, for Locomotive and Tender "Locomotive" // II II II It II "Driver" Kirk & Rhodes, for 5 Freight Cars, @ $500 each Burns & Shell, for Fencing 350 Rods, @ $1.00 H. Greeley, for Advertising J.G.Bennett, " G. Wood, for Fencing 160 Rods, @ $1.00 Kirk and Rhodes, for 3 Passenger Cars, at $2000 each J. Burchinell, for Freight and Passenger Depot at Altoona, per Contract R. Driver, Laborers' Pay-Roll for Dec. 1866 Adam Oaks, for 40 Acres, per Deed Jan. 14, 1867 W. Maxwell's Traveling Expenses Oliver Birch, for 9000 ft. Oak Lumber, @ 20/ Boyd & Murdoch, for Freight Depots at Pittsburgh, per Contract Excavating on Section 14, 4000 yds., @ 10 n II 15,3000 II @20 n II 16,2500 // @20 $400 600 500 $1500 300 Less 20% retained, Telegraphing for one month F. Freeman, Bridging Red Run, Sec. 31 Piper & Wood, Tunneling Coal Hill, '/ 27 Murphv & Hill, Grading Roads Hill, // 21 Sterling & Brown, for Locomotive and Tender "Velocity" J. Camp, 4 mos.' Salary to date Painter & Carpenter, for 2 Pass. Cars, @ $2200, per Contract R. Stone, for Right of Way ,100 ft.wide, per Deed Jan. 23,1867 Freight & Duty on R.R. Iron received per Ship from Li- verpool Samuel Graves, for 1600 Rods, @ 75/ J. & A. Patterson, for Building Depot at Pittsburgh, per Contract W. S. Haven, for Binding and Stationery Daiiv Commercial, for Advertising to date Carpenter & Co., for Building New Office at Pittsbrrgh Pas- senger Depot Kirk & Rhodes, 6 Cars, @ $400, per Contract Amounts carried forward JANUARY, 1867. Depoti. Road Building. Lands. Surveying. Grading. Bridging. Tunnelling. locomotiTcs. Can. Fencing. Iici4eital 100 700 130 1680 6000 4400 1300 3800 7000 7000 2500 7600 1500 9400 800 350 160 40 35 6000 80 1800 1200 170 4900 (S3 4400 80 6600 3100 1300 270 850 4400 1200 330 70 24570 9000 2350 260 3050 8000 2400 8200 20600 15300 1710 670 316 317 9 CONSTRUCTION AND EQUIPMENT, Date. *» Wkt Account. / For what paid. 1867. Jan. 2G 111 , 38 Lands 39 Bridging 40 do. 41 Grading 42 Lands 28 43 do. 44 Road Building 45 Incidental Exps. 46 do. 47 Surveying 48 do. 49 Lands 31 50 Road Building 51 do. 52i Grading 53 Bridging 54 Locomotives 55 Cars 56 Incidental Exps. 57 do. 58 Fencing 59 Depots 60 Surveying fi n Amounts bro't forward, Pd. J. Banks, for Procuring Right of Way 1/ Hiram Hill, for Material delivered on Soc. 1 \V. Stone, for Bridging " 1 R. Baker & Sons, Excavating, as follows,— viz. : 31000 yds. on Sec. 18, 19, 20, @ lOf- $3100 1500 /' /' 18, 19, 20, @ 20/ 300 3400 Less 20% retained 680 R. Banks, for Right of Way 100 feet wide, per Deed MayT,' 1866. Commission of Appraisement, for services for Switch Ties, 80, @ 20 J. K. Smith, 1 mo.'s Salary to date R. Roberts, 1 if do. do. W. Morris, 3 " do. do. R. Manley, 3 w do. do. J. Wood, Right of Way 100 ft. wide, per Deed May 7 1866 Freight and Duties on R.R. Iron from Liverpool Driver's Pay-RoU for Jan. A. Wood, Grading Farmer's Hill D. Haven, for Bridging Wood Creek Archer & Co., for Locomotive and Tender "Ajax" Kirk & Rhodes, 6 Passenger Cars, @ $2200 Team Hire this month "Morning Post" for Notice to Stockholders Robert Hall, for 1600 Rods, $1.00 Carpenter & Co., for Building Freight Depot at Pittsburgh R. Patterson, Horse Hire Total amount pd. for Depots // Road Building » Lands If Surveying V Grading IT Bridging Tunneling » Locomotives JANUARY, 1867. * Road Building. Lands. Surveying. Grading. Bridging. Tunneling, locomotives. Cm. Fencing. IncideitiL 245701 9000 // // 1/ II II II II II II II II II II II II II II II I 16 2350 110 260 3050 8000 460 8200 20000 15300 1710 67A 2720 1300 440 450 300 1890 8484 2600 1 1 Cars Fencing Incidentals Journal 1. ToUil 11500 36070 20100 6090 1100 8100i 14800 8200 27600 28500 3310 1200 155070 150 2330 5400 7000 13200 20100 6090 90i 1100 230 70 1600 8100 14800 8200 27600 28500 3310 1200 i. 318 319 i I I' til CONSTRUCTION AND EQUIPMENT, FEBRUARY, 1867. litt. £ ^ What Aeeout. 1867. Feb. 1 61 Incidental Exps. It ^2 Depots 63 Road Building €4 Lands ^ 65 Surveying 66 Depots 67 Grading 68 Bridging 69 Tunneling 70 Locomotives n do. n do. 71 Depots \12 \ do. 73 Koad Building 74 Bridging 75 Cars jk do. 76 Fencing 77 Incidental Exps. II Pd II II II II II II II II II II II II II II II II II II II For what paii Dispatch, for Advertising J. & A. Patterson, Building Depot at East Liberty R. R. Spike Co., for bill of Spikes Z. Wainwright, per Deed May 7, 1806 W. Moore and Assistants, to date R. Shrum, Building Depot at Greensburg J. Dignam, for Grading 93750 yds. @ 10 $9375 Less 20 fo retained 1875 Cox & Co., Bridging Turtle Creek Ames & Co., for Tunnel at Greensburg Baldwin & Co., for Locomotive and Tender " Kiskiminitas" // II II II II II "Allegheny" II II II II II n "Altoona" D. Wood, Building Depot at Johnstown S. Maple " II II Lancaster Laborers' Pay-Roll for Feb. for Bridges from Greensburg to Altoona, per Contract Kirk & Rhodes, for 8 Passenger Cars, @ $2000 // II II 3 Baggage " @ 500 J. Post, for 700 Rods, @ $1.00 J. Daub, painting signboards, per Contract Total amount pd. for Depots L*epoti, Road Building lands. SorFoying. 5000 8000 4500 // » H If 9 # a n Road Building Lands Surveying Grading Bridging Tunneling Locomotives Cars Fencing Licidentals Journal 2. Total 10000 8000 13500 1100 900 Grading. 7500 Bridging. Tunneling. LocomotireB. Gin. Feodng. 800 270 14000 8200 7000 8000 7200 31000 18000 1100 900 7500 14800 8200 22200 17500 700 11 800 122700' 18000 1100 900 820 I ( 7500 , 14800 16000 1500 8200 22200 17500 700 530 700 800 821 1 ■ I h' I FORM OF A LOCAL BILL OF LADING. C. A. CARPENTER, FREIGHT A«ENT, PITTSBITRGH, PA. in HU ^o<,<. oraer, >He '"''<>''''«' ''ZZ:^Jh: l:lrTc:nZn:: pZin, Fre^, ana C,ar,». in €U. par funds, as per TaHff ftates. . ^. ^ * ^. It 1. acreed, and Is part of the Conrfderatlon of this Contract! 1 That all goods received for transponation shaU be properly pac.ed. and distinctly marked with the name of the consignee and the Station ""^1. ^That^htp^nTyV/auia Bail Road Company shall not ^e «.^nsible fo^^^^^^^^^^ eoldtor for anv loss, injury, or damage from the dangers of ra|l ''"'^^ transportation^ IhefJaud or gross neglgence of said Company or its servants; SefC or from iny cause whatever, unless the same be proved to .''''^e CKicurred from '»>« J^*^^ °%«™dg are intrusted to any other Company or person noVUable for an/damage to glass or fragile articles, unless h«reV° «?«"''' -^ '««^'3^;^-^^ selected shall be regarded exclusively as the (Which said Pennsylvania R:iil Eoad Company "hereby *"t»»°""d »° f,<'\;„'^^^^°'^P"^ghIll not in any event be responsible for the negligence or Agent of the owner, and as such alone liable; »nd the Peo^^yJ^^Ji'^R?;'' «°/^ Road Company be liable for any loss or damage non-performance of any such Company or person ; nor in any event shall '''^J^^^^^^^P^'afe days after the time when said property has or ought ^IriTee^^elil^e^^i^'x^hf g'o^d^S^^^^^^ '-'-'^-^- ^'^ ^^'^^^^ °' '''''''' "''' '''"''' '" "" "ISH aiSSES^^^S^eJKSS:! tS^^-Oe^ts or Warehouses of said Company. t ^'un"p^S.TrC^«oL:'pSrMrh7s!'ind like ^ ., t^e C^m^ny!from the moment such articles are delivered from the cars ^ djrect^ or m^^^^^^^^ ^^^^^ ^^ ^^^ ^^^ arrival or '^'ilf^f^S^or'.t "c^p^nf ^fndlr^J^sTilf rtldin^ ro'fommenc^ upon the shipment of the goods from this Station, and to terminate when unloaded from the cars. — -— - ■1>J1J^TIJS.S. .A.IITICX.ES. FORM OF A THROUGH BIL L OF LADING. «KIIHSYI*¥JLHIJL BJLII* B0AB COMPAMT. a A OABPENTER. Freight Agent, Pittsburgh, Pa. S. B. KINGSTON, Jr.. Freight Agent, Philadelphia, Pa. C A. OAJiri-JS. i±.m reig ^^^j^^^ BEOWN, Agent, N. . B. W. Co., Baltimore. H. H. HOUSTON, GENER AL FREIGH T ACENT, PH ILADELPHI A. _ ■xjFOJsr THE I'OXjXiO'wiiTCS- coisriDiTionsrs. C^The owner or Consignee to pay freight »» Pti;,»,P-L'tfac?\^hat''?hVcrm'p:ny ^ilf n^ It is agreed, and is part of the consideration of this contract, ^nat the Company yunoio« ly ^ tj^-g or Hollow Ware, nor for injury to the or Queensware. the injury or breakage of Looking G asses, Glass Show Cases Picture Frame>^ ^^^ ^^^ „f perishable Wdden contents of Packages, nor for the l»ss in ''^'K^t or otherw^e of Grain or Coffee m ^^^S'^ «>• "^/^^ ^^^^ j^ ^ „ of Lemons or Oranges in Nicies, nor for damages arising to any article car^e^J^"™ '^^.^^^^''JVroviden^^^ by Firs from any cause whatkvek. while in transit SSes, unless covered by canvas, or loss or damage »« Goods occaMoned by Pro.ident^^^^^^^ .^ consideration of the Company any other Rail Road or Transportation Company, or Agent ^xxd ll'^^.^^lfiZXJj^^^^ Conditions and Provisions of this, and of such Bill of exclusively as the Agent of the owner or consignee and sha 1 he ^n"tled ^ '^« »'„7«^^;* °'„o7"be, in any event, responsible for the negligence or non- "^SAZc'^'r a-^n^s^c'^lforpa^nto; rgtn?^no^r^sh";f/r h^rpa^or^ATeK liable for any lessor injury except upon lU or their respective LTnircr^irorTema^rrii l^^.ll^'^^^ir^t^^tll^t'c^^^^^^^ or Agent, for loss or damage thereby, this Bill of Lading shall be deemed and taken as a release in full therefor merchandise is loaded into the cars of tile Company, and .j'XT.,3r.iS.-iTii\':;i«.^^o^^^^ ... ^. r™„ «„. . u». The Owner or Consignee will have his or their Agent or Kn>Pio>ees to receive ana re ra^^^ e ^^ Owner's risk, or be removed, at the ^ Said merchandise may be retained for a'' «>Tearage8 o^Jf ^^^^^Ve^ponsfM issumed. for any loss or damage to such merchandise, unle^s^'Ihtliim-le'reSd in'^rS^^^ »»• '^^^'» **•» '^^^ ^''^^ '^' '^"'^ ^'^^'^ ''"^ ^^"^ ''" '^^'^ " on«ht to have been delivered. „,„„h„„p-i frnm such cause as would render the Carriers liable, it is expressly agreed that they ^''^N^'Tl'J^'ac^'eV^'ing^Vis Bm Shfp'pi^l'lrr'ither Agent of the owner of the property carried, expressly accepts and agrees to all iU conditions, stipulations, and exceptions. RAIL ROAD ACCOUNTS. OPERATING EXPENDITURES, PENNSYLVANIA RAIL ROAD, JANUARY, 1867. 1. The headings of the columns will sufficiently explain the use of this book. 2. Its ten money columns have also their representatives in the General Ledger, which will explain themselves. — Refer to them. 3. The final footing at the end of the month is made and Journalized like the last book. 323 ^a^j>!>^Tiis.s. A-HTIOXjES. 322 OPERATING EXPENDITURES, c What AccoDst. 1867. Mar. I 1 2 3 4 5 6! 7 81 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 8 36 37 10 38 39 40 41 15 42 43 16,44 1145 18 46 19i47 5 6 Incidental Exps. Track Repairs Fuel Station Trains Engines Cars Station Shop Buildings Oil & Waste Incidental Exps. Fuel Station Trains. Shop do. Engines Cars Track Buildings Oil & Waste Incidental Exps. Fuel Train do. Station Shop Station Engines Cars Incidental Exps. do. Track do. Fuel Incidental Exps. Oil & Waste do. Incidental Exps. Building Cars Engine? Station I do. Trains Shop For what paid. Pd. W. G. Johnston & Co., for Blanks and Stationery Whitmore, Wolff, Duff & Co., for Spikes James Oak, for his Bill of Wood Wm. Ward, 1 mo.'s Salary as Supt. Pay-Boll for Feby. Mitchell, Stevenson & Co., for Castings Kirk & Rhodes, for Glass W. Darsie, 1 mo.'s Salary Craig & Co., for 3 Stoves Carpenter & Co., for Repairs to Pittsburgh Depot Childs & Co., for 5 Bales 1500 lb. Cotton W. S. Haven, for Printing Cards and Wav Bills Darlington Coal Co., for 400 Tons Coal, (^ $2.00 Salaries for Feb'y Trains, Pay-Roll for Feby. Geo. Dexter (Foreman), Salary to date Blacksmiths' Pay-Roll for Feby. Warden & Son, Cylinder Head for Locomotive " Driver" Kirk & Rhodes, for Bill of Locks, &c. Bell & Ward, for New Switch at Altoona Boyd & Murdoch, Repairs to Office Fleming & Bros., Bill of Oil R. M. Riddle, for Advertising to date J. A. Reams' Bill of Wood Brakesman's Pay-Roll for last month Conductor's w '/ n Laborers' « n n Machinists' ti n n Watchman's Wages Craig & Co., Repairing Pipe and New Pipe for " Velocity" Jas. Sawyer, for Oak Plank Daily Post, for Advertising J. Bailey & Co., i> Pay-Roll for M'ch 4 II II II II 6 J. Day, 150 Tons Coal delivered at Johnstown W. S. Haven's Bill for Pjinting Tickets F. Sellers & Co., for Oil B. C. & J. H. Sawyer, 1200 lb. Grease, @ 8/ W. G. Johnston & Co., for Office Stationery Hugh Beatty, for Painting Depot at Pittsburgh E. Edmunson & Co., for Upholstering Paine & Co., for New Spark-Catcher for " Ajax" W. White, 1 mo.'s Salary as Freight Agent at Pittsburgh D. Hill, I! " Passenger n n n A. Black, 1 mo.'s Salan' as Freight Conductor J. Woodwell & Co., for'Tools Amounts carried forward 324 MARCH, 1867. Station. 150 200 160 140 30 180 120 980 Trains. Engines, ! I Can. Track. Buildings. Oil k Waste. FneL lieidertab 45 80 420 1365 390 2300 1600 940 560 440 50 3650 190 60 150 130 30 170 180 190 110 120 80 220 75 180 130 120 1 ti 1 1 150 370 250 800 110 180 300 350 96 120 110 60 30 530 500 470 480 846 1400 930 325 Ot^ERATING EXPENDITURES, I ; 1 Date. TT¥ :c=c: What Account. I •1 i L 1867. II I Mar. 19 48 Shop I 49 Track ! '*// do. 20 50 Buildings 24 51 Cars 52 do. 26,53 Trains &4 do. 55 Incidental Exps. t 56 do. 28 57 Fuel !68 Oil & Waste 29 59Statioii ' 60 do. 61 Shop 162 do. 63 Trains 64 Oil & Waste 165 Fuel 166 Trains t67 Shop 1 68 Station 69 Engines 70 Cars 71 Track 72 Buildings )73 J^iation 30 SI I For what w Amounts bro't forward Pd. J. Gardiner, for Horse Hire 1 month " Repairs on Division No. 7, in Feby. // • // w II II 9, '/ '/ // Masons' Bill at Philadelphia for 14 Water Coolers, @ $5 Wilson & Co., Bill of Lamps and Fitting Watson's Salary as Passenger Conductor Gray's '/ n » " H. Tunier, for Trunk Lost Kay & Co., Freight '/ A. Bell, for Wood B. L. Fahnestock & Co., for Oil Wilson, Freight Agent at Altoona, Salary for this month Hay, Passenger ii n n " " " " G. Dexter (Foreman), Salary for this month Blacksmiths' Pay-RoU for this month Brakesman's n n *' for Rags and Tallow Baird & Sons, 700 Tons Coal, @ $2 Fireman's Pay-Roll for this month Machinist's " " " W. N. Davis, Salary for this month Machinists at Philadelphia Warren & Lee, of '/ for New Rail on Sees. 17, 18, 19, & 24 for Enlarging Ofl&ce at Pittsburgh Secretary & Clerks' Pay-Roll at Philadelphia Amount pd. for Stations this month M ft II II II II II n I u II n II u w B H W W n » II II II II II II » u II II II II Shop Trains Engines Cars Track ii Buildings Oil & Waste Fuel // Incidentals Jour. 2. Total Operating Expenditures for March 826 MARCH, 1867. Station. 980 140 110 Trains. Engines. 2800 3G50 30 200 1670 3100 4305 52801 4200 5100, , 4400i 2160 1105 2880 1230 .S3760 80 420 60 60 530 1475' 530 980 4305 5280 Cars. 500 Track. |l Buildings. Oil & Waste. Fuel 70 60 3670 470 440 160 480 846 1400 Iieideitik 930 4470 P 320 ¥ y 4200 5100 3330 4400 90 210 80 204 55 1400 1360 t 2160 1105 2880 1230 327 II t w ?5 H g P4 ^ > P4 ^ |H s o a e .d ■** w a S h o .a d 9 Si s 03 1 « ja ■** a ca .a m s e o u o .a 8 o as o M 8 e .d • « « p .a « i i » I •A 4 a H H 1 I o Q «! O P3 M \ OQ izi n I o 1 o 01 I o i3 O a o o o o o o o o o o o o o »o o »n CO (M OS CX) t- i tH T-H 1—1 (M T— 1 o o o 04 o o o ' o (M O - -- lO lO »0 lO »0 lO iC aO ^ O §P O O CO O O 9*3 O O ^ p. o o CO CO o o o o o o o o o 00 o o o CO 40 CO o o o o o o o CO o o o JO o o o ' o o o o , o I CO I o 00 P4 8 m OD bo p Pu •o •3 I P3 a p OD rj P ^ e3 O a> > m PQ o Ci5 p'^ 03 o p p p p Q a a o Pn O S p o 1-^ ;h e3 340 RAIL ROAD ACCOUNTS. GENERAL LEDGER, PENNSYLVANIA RAIL ROAD. 1. This book and the Stock Ledger are generally opened at once, as all entries relating to the shareholders have to be posted into that Ledger, and this one also. See the posting to both, January 2 2. This Ledger, in business, must have an Index, but it need not be written here. The Bonds Payable account is the same as the Bills Payable account, and may be posted to that account, but it is better to follow the established custom. 3. All the accounts which you closed into Construction & Equipment account repre:ieiit property, and the debit side of that account stands in the debit side of the Balance accouiit as assets of the company. 4. Operating accounts are of the same nature as Profit & Loss, into which they finally close. Dividend and Surplus Capital are both accounts representing liabilities, and are entered in the credit of the Balance account. 5. All the accounts that close into Construction & Equipment and Operating account remain closed, and the unoccupied space below them may be used for a new account withuut a new heading. 6. By comparing these Books before writing, the student who is well versed in Double Entry Book-keeping will have no trouble in understanding them. 7. Surplus Capital is a reserve fund to enable the directors to make uniform dividends when business is unfavorable. w 341 <4 ■! lit,: 1 1 1 1 Dr. CAPITAL STOCK Cr. 1867. Jan. Feb Mar. 1 31 2 Treasurer Profit & Loss 1 4 lOOOOQ 200000 2000(J TREASURER'S ACCOUNT. 1867. Jan. ; 3 Capital Stock t 31 Bonds- Payable Feb. I Capital Stock Mar. ' 3:^ Sundries Balance 100000 540000 200000 7839^ 1867. ' ' Jan. 1^ Cash Feb. 151 // Mar. 31 // Balance 1 2 6 CASH ACCOUNT. 18«7. • I Jan. 15 Treasurer Feb. la If Mar. 31 // 1 170000 2 120000 52400 Balance 342400 12690 1807. Jan. 31 Sundries Feb. 28 // Mar. 31 // Interest Balance 1 2 BONDS PAYABLE. I I DISCOUNT 1M7. Jan. 31 Sundries ACCOUNT. 1867. Jan. 31 Bonds Payable 6000a 1807. Mar. ! 31 Constr. & Equip. 342 170000 1200001 52400 57.')9J>2 918392 155070 122700 33760 18180 12690 342400 600000 60000 Dr. DEPOTS. Gb. 2 1 2 36070 31000 67070 1867. Mar. i 31 1 31 Constr. & Equip ROAD BUILDING. 1867. I Jan. 31 Cash Feb. Mar. 28 // 1 Bills Payable I 2 20100 18000 160000 198100 1867. Mar. 1 31 Constr. & Equip. 3 198100 19810 <1 LANDS ACCOUN"' 1867. Jan. Feb. 31 28 Cash // * SURVEYING ACCOUNT. 1867. Jan. Feb. 31 Cash 28 // 1 2 1100 900 2000 1807. Mar. 31 Constr. & Equip. 3 2000 2000 I GRADING ACCOUNT. 1867. Jan. Feb. 31 28 Cash // 1 2, ' 8100 7500 15600 1 1867. Mar. 31 Constr. & - 15600 15600 343 « 1 Db. BBIDGING. Cb. 1867. ' ! Jan. 31 Cash Feb. 29 // 1 2 14800 14800 1887. Mar. 311 Constr. & Equip. 3 2960d 29600| TUNNELING ACCOUNT. 1887. Jan. 31 Cash Feb. 28 // L 1 2 8200 8200 16400 186T. Mar. 31 Constr. & Equip. 16400 164001 LOCOMOTIVE ACCOUNT. 1887. Jan. Feb. 31 Cash 28 // 1 2 . 27600 22200 "49800 1887. Mar. 31 Constr. & Equip. 4980« 49800 CABS ACCOUNT. 1867. Jan. , 31 Cash Feb. I 28 II 1 2 285001 17500 46000 1887. Mar. 31 Constr. & Equip. 46000 46000 FENCING ACCOUNT. 1867. Jan. 31 Cash Feb. 28 H 1 2 3310 700| 4T)i0 1867. Mar. 31 Constr. & Equip. 3 , CONSTRUCTION INCIDENTALS. 1887. Jan. 31 Cash Feb. , 28 // Mar. 31 Constr. & Equip. 3 2000 2000 BILLS PAYABLE. 1867. Mar. 1 Sundries 344 169080 Dr. INTEREST. Cb. 4 1867. ' Mar. 1 Bills Payable 31 Cash 9080 18180 '27260 1867. Mar. 31 Constr. & Equip. \ 3 27260 27260 FREIGHT 1867. Mar, 31 Operating 40310 ACCOUNT. 1867. Mar. 31 Treasurer 40310 PASSAGE 1867. Mar. 31 Op erating 34092 ACCOUNT. 1867. Mar. 31 Treasurer 34092 U. S. MAIL SERVICE. STATION SERVICE. 3100 SHOP 1867. I ! Mar. 31 Cash SERVICE. |l 1867. ' I 4305 Mar. 31 Operating 4305 TRAIN SERVICE. 1867, Mar 345 5280 9 Db. ENGINE SERVICE. ism. Mar. 31 Cash 2 4200 CAB REPAIRS. iser. Mar. 31 Gash T]EtACE REPAIRS. Mar. 31 Cash 2 • 4400 ' 1867. Mar. 1 1 81 Operating BXnLDING REPAIRS. 1807. ' < Mar. 31 Cash 2|| 2160 18«7. ' ' Mar. 31, Operating OIL & WASTE. 1867. ' Mar. 31 Operating FUEL ACCOUNT. 1867. Mar. 31 Cash 2 288rt 1867. Mar. 31 Operating OPERATING INCIDENTALS. 1867. Mar. 31! Operating 3 Cr. 4400 2160 2880 1230 Dr. PROFIT & LOSS. 44632 1867. Mar. 31 Operating Cb. 44632 CONSTRUCTION & EQUIPMENT. 1867. Mar. 81 Sundries 3! 525030 BALANCE ACCOUNT. 1867. Mar. 31 Treasurer Cash f 1 i 575992 1; 12690 Constr. & Equip. 6 525030 1113712 1867. Mar. 31 Capital f 1 , Bonds Payable I Bills Payable I Dividend No. 1 I Surplus Capital 820000 600000 3 169080 6, 15000 9632 ill3712 OPERATING ACCOUNT. 1867. Mar. 31 Sundries Profit & Loss 1867. Mar 31 Sundries I ( 78392 78392 DIVIDEND No. 1. 1867. ' Mar. 31 Profit & Loss 15000 SURPLUS CAPITAL. 9632 QUESTIONS FOR EXAMINATION ON RAIL ROAD ACCOUNTS. I. Where are the totals of the Construction & Equipment Day Book carried to? (N. 2 Whatare the entries of this book made from? (N. 5, p. 315.) ju,„„„ „ 3. Where are the total amounts of the money columns of the Operatmg Expenditures re- presented ? (N. 2, p. 323.) • j ^ 9 /isi o « Q9Q ^ 4. Where are the aggregates of the Operating Receipts carried to / C^N- ^> P- ^^^O 5. What entries originate upon the Journal? (N. 1, p. 331.) 6. Who is supposed to keep the books of the company/ (iN. A P- ^^^ „oi >, 7 How does the Secretary keep his account with the Treasurer? (N- ^, P- ^^^■) 8. What is done after the contents of the Journal are posted into the General Ledger? 9 What'acco^unts are to be opened preparatory to closing the Ledger ? (N. 4, p. 331.) 10. Where are the closing entries of the Ledger made ? (IN. 5, p. 661.) II. How is the total gain divided? (N. 6, p. 331.) 12 What accounts are kept in the Stock Ledger r {IS. 1,1^. 66i.) 13 How are transfers of stock made? (N. 1, P- ^^'^•) 14. When is the transfer of stock prohibited? (N. 1. p. ^5*57.) , ^;\^a ^^ tho 15. If a sale of stock is made while the transfer booK is closed, who is entitled to the 16. Wh^a^m^f be do^e when^you take a Trial Balance off the General Ledger? (N. 2, 17. What^must the aggregate amount of the credits of the Stock Ledger agree with ? 18. When are the accounts in this Ledger closed? (N. 3, p. 337.) 19. When is the General Ledger opened? (N. 1, p. 341.) 1.1 »? /M 9 r. ^±^ ^ 20 Is there any difference between "Bonds Payable- and" Bills Payabe ? (N. 2 p. 341 ) 21. What do the accounts closing into "Construction & Equipment" represent? (N. 3, 22. What is the nature of Operating Accounts? (N. 4, p. 341.) 23. Into what account do they close? (N- 4, p. 341.) fxr a r. qil ^ 24. Are "Dividend" and "Surplus Capital" effects, or liabilities? (N. 4, p.^41.) 25 What is done with the accounts closed into Construction & Equipment after the books are closed? (N. 5, p. 341.) 26. What is " Surplus Capital" ? (N. 7, p. 341.) DUFF'S BOOK-KEEPING. PRIVATE BANKER'S ACCOUNTS. II 1867. 349 348 PEELIMINARY EEMARKS. Although the principles of Bank Accounts have been ftdly illustrated in our set of National Bank Accounts, the business of the Private Bauker differs in so many particulars from that of the Joint Stock Company that we think the following set of books, expressly adapted to this particular business, will prove useful in perfecting the business man's edu- cation. 350 CASH BOOK, PRIVATE BANKER'S ACCOUNTS. NOVEMBER, 1867. 1. Bankers generally make this book perform the oflGice of Cash Book and Journal. The arginal pages indicate the direct posts to the General Ledger, which is made up from this book. 2. The aggregate monthly receipts and payments are posted from the' right-hand money colli nins. o51 111 1 Db. O^SH 1867. Nov. 8 10 16 23 30 2 : To P. Duff II Wm. Hav // W.Wood // Depositors // Discount // Depositors // Discount // Depositors // Discount // Depositors '/ Discount // Depositors // do. // Discount '/ Depositors '/ Discount '/ Bills Keceivable II Depositors // Bills Receivable II Discount Eec'd in full for his capital // // // u » » » If M It » II II II II II II If II II II II Dec. 4 7 ii4 21 28 29 30 31 To Discount Depositors Discount Depositors Bills Receivable do. do. Discount Depositors Discount Depositors Discount Bills Receivable Discount Depositors Discount Depositors Discount Duff Brothers & Co. Thomas Thompson & Bills Receivable do. do. Balance 1 1 1 P. 1 2 1 3 1 1 1 1 1 1 1 1 1 1 1 per Deposit Register Discount Book Deposit Register Discount Book Deposit Register Discount Book Deposit Register Discount Book Deposit Register do. do. Discount Book Deposit Register Discount Book for Discount No. 3 per Deposit Register for Discount No. 2 per Discount Book Balance Rec'd per Discount Book 2 // Deposit Register 2 «r Discount Book 2 II Deposit Register 2 II for Discount No. 4 • II II No. 5 // per Discount Book 2 II Deposit Register 2 If Discount Book 2 M Deposit Register 2 n Discount Book 2 // for Discounts No. 8, 9, and 10 // per Discount Book 2 u Deposit Register 2 w Discount Book 2 n Deposit Register 2 // Discount Book 2 // for draft on them Co. // " II do. a Discount No. 7 » U II 1 2 3 2 3 2 3 2 2 3 2 3 2 2 2 3 2 3 2 2 2 |3 12 !3 2 3 2 3 2 3 2 3 3 3 2 2 20000 10000 ! 10000 ; 2200 i 158 02 1900 69 2200! 25 1 3260! 39f0 3049' 5985 62 47 2900 154 57 5600 6630 4000 110 1 78343 )6 78343 66 26533 66 1260 ; 8815' 75 50 9960 2800 4200 2618 ^0 2700 I 80 80 1410 143 $4 3600 i 306 I 890 i 200 I 13910 I 113 84 1000 6000 3800 5000 68883 95416 H 6737 74 iLCCOUNT. Cb. 1 )8 1867. Nov. 2 By Depositors // Bills Receivable Pd. per Check Register // for Notes 1, 2, 3, and 4 1 2 2 1000 17400 // Discount II per Discount Book 3 20 7 // Depositors n Check Register 2 675 // Discount // Discount Book 3 37 8 // Depositors a Check Register 2 1600 // Discount n Discount Book •«• 3 12 9 II Depositors // Bills Receivable // Check Register II for Note 5 2 2 2400 4200 II Discount '/ per Discount Book 3 15 10 // Depositors // Check Register 1 2 1100 11 // Bills Receivable // for Note 6 • 2i 1600 16 II Depositors // per Check Register 2i i 1300 // Discount // Discount Book 3* 75 23 II Depositors II Bills Receivable n Check Register // for Notes 7, 8, 9, and 10 2 2 7920 7400 II Discount '/ per Discount Book 3 105 30 // Depositors II Check Register 2 4920 II Discount n Discount Book 3 31 51810 4 Balance carried down Pd. per Check Register 2 2 26533 66 66 78343 Dec. By Depositors 560 // Discount // Discount Book 1 3 15 7 II Depositors 1/ Check Register 2 2 360 II Discount II Discount Book 2 3 24 // Bills Receivable // for Note 11 2 3800 14 // Depositors II Bills Receivable II per Check Register II for Notes 12, 13, and 14 2 2 2 430 4500 21 II Depositors '/ per Check Register 2 2 2850 // Discount II Discount Book 2 3 56 // Bills Receivable // for Notes 15 and 16 2 5600 28 II Depositors '/ per Check Register 2 2 3640 • II Discount //" Bills Receivable II Duff Brothers & Co. n Discount Book // for Notes 17, 18, 19, and 20 II Retaining n/p of Note No. 10 2 3 2 3 12 12600 • 1188 29 // Bills Receivable // for Notes 21 and 22 2 24000 30 II do. do. II R. P. Duff II II II 23, 24, and 25 II Retaining n/p of Note No. 19 2 4 15000 130 31 II Depositors // per Check Register 2 2 6700 II Discount II Discount Book 2 3 50 // Bills Receivable // forNotesNo.26,27,28,29,30,«&31 2 1254 II T. F. Shephard II Retaining n/p of Note No. 10 4 960 II T. Thompson & Co. II do. " '/ II 1 Balance carried down t4 3 4950 6737 74 88679 M 95416 X 353 PRIVATE BA-ISTKER'S PITTSBURGH, Nov. 2, 1867. 1867. Nov. Wilson, Childs & Co R. S. Carson W. J. Murphy Wm. Payne C. B. 1 Nov. 7 ! Wm. Payne J. R. Weldin R. Banks Jas. Wood C.B.I Nov. I 8,i Chas. Page ' ' W. Stoner R. S. Carson R. Banks C.B.I Nov. 9 Wm. Payne R. S. Carson I R. Banks J. Pillow Note 2 8 6 C. B. 1 Nov. 10 J. R. Weldin W. J. Murphy Robt. Knox Jas. Watt Greo. Draper Note 5 4 ' C.B.I Nov. 16 Jas. Wood W. Hay John Hatch White & Edwards Note 7 C. B. 1 Nov. 23 Chas. Page Jones & Hatch I ! Rich & Gray I I Hay & Wood Wm. Payne Certificate of Deposit No. 1 C.B.I 354 2 2 2 1 2 600 1900 ( 1 700 240 260 1000 1 1 2 3 2200 300 260 1000 1700 3260 2 1 3 3 3 600 500 749 450 750 3049 2 3 4 4 2 4 4 5 1 5 2000 1475 760 1750 5985 450 750 460 500 40 700 2900 DEPOSIT REQISTER. PITTSBURGH, Nov. 30, 1867. 1867. Nov. Dec. Dec. !l 30 Dec. Dec. Dec. Dec. 14 Chas. Page Wm. Hay R. S. Carson Wm. Stoner Hay & Wood Certificate of Deposit Wilson, Childs & Co. James Pillow Hay & Wood James Watt R. Knox Jones & Hatch Certificate of Deposit 21 , Geo. Draper Wm. Stoner 28 Jno. Hatch White & Edwards Rich & Gray Hay & Wood 30 Jones & Hatch W. Payne R. Martin 31 Wm. Hay R. Banks H. P. Ford & Co. Wilson, Childs & Co. W. Stoner W. Payne Notes No. 2 // 3 // 4 C. B. 1 Note 1 12 C. B. 1 Note 15 14 No. 5 C.B.I Note 11 C.B.I Note 16 17 18 20 C.B.I Note 19 C.B.I Note 10 C.B.I 1. In this book enter all receipts of money received on deposit account and for Certificates of Deposit. The daily amounts are carried to the Cash Book, and the particulars are posted into the Depositors' Ledger. 355 ' "™ 2 , 470 3 1000 1 1400 2 560 5 700 5 ' 1000 5 600 5 900 1 3 5 3 2 6630 400 7800 615 8815 3 3000 3 , 3960 4 i 1000 5 i' 2000 9960 2600 100 2700 4 200 4 150 , 4 500 ' 5 560 1410 4 130 1 360 5 400 890 3 960 2 550 5 600 1 3200 2 4800 1 3800 13910 1867. Nov. PITTSBURGH, Nov. 2, 1867. W. Payne Wilson, Childs & Co. W. J. Murphy R. S. Carson Robt. Banks Jas. Wood J. R. Weldin C. Page W. Payne R. S. Carson R. Banks W. Stoner James Pillow IC Wm. Payne W. J. Murphy Robt. Knox U Jas. Watt Geo. Draper Jas. Wood Wm. Hay 2S Jones & Hatch White & Edwards John Hatch Rich & Gray Hay & Wood C. Page 3d John Hatch White & Edwards Wm. Payne Wilson, Childs & Co. R S. Carson C. B. 1 C. B. 1 C. B. 1 Note 6. Collection Register C. B. 1 C. B. 1 C. B. 1 Certificate of Deposit No. 1 Note 3 Discounted C.B.I Certificate of Deposit No. 2 ¥ «r w 3 C. B. 1 1. This book records the payment of all Checks and Certificates of Deposit. Transfer the amounts daily to the Cash Book, and post the particulars to the De- posit Ledger. Job 2 2 1 2 2 3 3 3 2 3 4 4 4 4 5 2 4 4 1 1 400 400 200 1000 375 200 100 675 700 600 300 1600 1000 600 200 600 2400 200 700 200 1100 400 200 500 200 1300 400 800 700 20 400 5600 7920 840 1000 600 1000 1480 4920 OHEOK REGISTER. PITTSBURGH, Dec. 4, 1867. 1867. Dec. -14 Jl ;58 ;{i Hay & Wood R. S. Carson C. B. 1 Jones & Hatch Wm. Payne C. B. 1 R. Martin Rich & Gray C. B. 1 Wm. Hay Wilson, Childs & Co. R. Knox Certificate of Deposit No. 5 C.B.I R. Knox Jones & Hatch White & Edwards Certificate of Deposit No. 3 C.B.I Wm. Stoner Wilson, Childs & Co. do. do. Certificate of Deposit No. 1 C. B. 1 357 5 1 4 1 5 4 3 1 3 5 3 4 4 5 2 1 1 5 400 160 560 200 160 360 300 130 430 500 200 150 2000 2850 400 240 2400 600 3640 5000 700 300 700 6700 1 1 i PRIVATE Bi^NKER'S NOTES & BILLS When Rec'd. Discounted for. 1887. i NoY. ; 2 j Jno. Scott K. Banks S. White I S. Smith 9' T. Rhodes 11 Good & Little 23 Moss & Howard Rhodes & Verner G. R. White W. Payne Dec. 7 J. Taylor 14 S. Barrett I I D. A. Carston Jno. Hawkins 21 Hay & Wood J. Watt 28 i J. Pillow R. Banks S. Simpson W. Wells 29 R. Smith E. Waltby 30 Thos. Anderson D. Fox W. Langdon 31 B. F. Swan J. M. Smith R. Root Jno. Black R. P. Murry J. Higgins Dbaweb. Simon Payne Thos. Gains Chas. Page W. Hay S. Barrett S. Wise R. Goodwill M. Thompson A. Mason C. Ralston Jno. Eastman W. Hare Simon Payne Hay & Wood Jas. May Rogers & Co. Ragan & Morse T. A. Craig M. Love C. Page J. Brown Adrian & Co. C. Rhea W. F. Smith W. Langdon L. C. Donnell G. W. Holmes J. Hoag S. Green L. Bradley J. Vinsonhaler On Whom Drawn. Ik whose Favor. Wm. Young J. S. Ward T. C. Duff E. Lynch Jno. Kerr Wm. Cook G. L. Ryder D. Hall A. D. Walker Jno. Jones S. Myers S. White Good & Bacon T. Rhodes J. S. Duncan Moss & Howard Rhodes & Vomer G. R. White S. Stevens E. D. Jones S. Barrett D. A. Carston Jno. Hawkins Hay & Wood J. Dally J. Pillow R. Banks S. Simpson W. Wells Henry Rigg E. Waltby C. Gipner J. C. Young Ourselves S. J. Grant R. B. Wilson M. Die D. White V. B. Smith H. S. Kerr 1. Enter all discounted paper as abovo ; the Discounts in the Discount Book, the payments in the Cash Book, and the day of maturity in the Tickler. 358 BILL BOOK. DISCOUNTED. Where Payable. No. Date. j 1 1867. 1 Cnicago ' 1 Sept. 25 City 2 28 // 3 Oct. 21 Philadelphia 4 Nov. 7 City 5 Sept. 7 // 6 July 11 It 7!; 18 It 8i June 25 II 9 Sept. 26 New York 10 Nov. 18 TniE. When Due. Amount. Memoranda. City » w It St. Louis City It ' u ,» It Chicago City New Orleans City New York City II Cincinnati City St. Louis 11 Aug. 1 !12!iJuly 10 13 'Sept. 14 II 15 Dec. 16 17 18 19 1 28 1 20 15 5 20 20 1 Oct. 15 21 liDec. 5 22 2a 24 *25 ii 26 Nov. 27 Dec. 28 29 30 31 .Sept. 15 20 15 20 3 1 30 ' 3 15 3 months 60 days 30 // 1 month 3 months 5 '/ 5 // 6 *i' 90 days 30 // 6 months 6 // 5 // 4 3 3 90 days 60 // 3 months 5 // 60 days ||90 // 3 months 90 days 3 months 90 days 3 months 1 1 60 days 3 months 3 6 1867. Dec. Nov. Dec. // If If 1868 Feb. Jan. Feb. Jan. Mar. Feb. Mar. Feb. Mar. 28 5000 30 4000 23 5600 10 2800 4200 14 1600 21 3800 Feb. Mar. // // 6001 1800 1200 3800 800 3000 700 1600 28 28 21 4 113 4 31 4 23 4000 18 2000 6 4000 23 3000 18 3600 6 4000 23 20000 18 5000 If 4000 23 6000 Paid Dec. 31 // Nov. 30 // II 23 tf Dec. 14 Protested Dec. 10, pd. Dec.l4 n Dec. 14 // Dec. 21, pd. Dec 31 Paid Dec. 28 If Dec. 28 // Dec. 28 4 4 3 6 18 18 225 140 170 360 125 234 359 PRIVATE BANKER'S NOTES & BILLS Wheic KnrD. Collected for. Drawer. On Whom Drawn. Ix WHOSE Favor. 1867. Nov. 2 Wilson, Childs& Co Jas. Moultrie H. Jones r S. Stinson W. Payne S. Girty J. Gray J. Shepler R. S. Carson J. S. Duncan R. S. Carson W. J. Murphy S. Stevens Thos. McCabe J. R. Weldin S. Crites F. Wallace J. R. Weldin 3 R. Banks R. Carson Thos. Smith 7 Jas. Woods S. R. Moultrie Jas. Woods 10 C. Page Jno. Easton C. JfcLoo'an R. Sanders 15 W. Stoner W. Roy J. Getty 20 W. Hay J. Dalton A. Martin R. Jones 30 Geo. Draper Ditto & Knox Geo. Draper Bee 1 Jas. Pillow Stein & Dawson Jas. Pillow 4 S. Barrett W. Hare S. Barrett R. Knox J. Moultrie Jno. Milton R. Good J. Watt S. Barrett F. Garrett 21 Jno. Hatch R. Knox • Jno. Hatch White & Edwards Jones & Langdon White & Edwards Rich & Gray S. Girty Rich & Gray Jones & Hatch Brady & "Stein S. Grant T. Fairbanks Hay & Wood R. Roy J. Goodall 28 Ross & Childs J. Riggs S. Lowry 30 R. Banks Thos. King F. Johnson R. Banks 1. lliiB book records all paper received 1 br collection. Record its d latnrity at the same time on the Tickler. When col- Serted, pass it to the credit of the owner on the Deposit Register. PRIVATE BANKER'S NOTES & BIH£ When. Remitted to. Place. Drawer. In whose Favor Nov. 2 S. Ripley Philadelphia S. Girty J. Shepler T. Thompson & Co. Chicago S. Crites J. R. Weldin 13 Duff Bros. & Co. New York Jno. Easton R. Sanders 25 R. P. Duff Cincinnati Jas. Moultrie S. Stinson Dec. 1 S. Ripley Philadelphia W. Hay Good & Bacon 4 Geo. McCallum St. Louis Jas. Moultrie R. Good 15 Duff Bros. & Co. New York C. Ralston S. Stevens 20 T. F. Shepard . New Orleans J. Dalton R. Jones R. P. Duff Cincinnati Brady & Stein T. Fairbanks 186B. T. Thompson & Co. Chicago Simon Payne Jno. Jones Jan. 25 Duff Bros. & Co. New York Thos. King R. Banks do » L. C. Donnell S. J. Grant Feb. 25 T. Thompson & Co. Chicago Adrian & Co. E. Waltby Mar. 1 R. P. Duff Cincinnati Samuel Green D. White 10 T. F. Shepard New Orleans W. F. Smith J. C. Young G. McCallum St. Louis J. Vinsonhaler H. S. Kerr 15 do // Rogers & Co. J. Dally 2. Ten or fifteen days before the matnrity of foreign paper, forward it to your agent, transferring it from the Tickler to this book. When he notifies you of its payment, debit him ; or, if he remits the proceeds, enter it to credit of the owner on Deposit Register. 360 OOLI.EOTION HEQISTER. RECEIVED FOR COLLECTION. Where Payable. No. Date. TUfE. When Dot. 1 Amount. Mexoransa. 1867. 1867. ! 1 Cincinnati 1 Oct. 2 60 days Dec. 4. 400 Paid Dec. 7 Philadelphia 2 5 30 // Nov. 7 300 Nov. 9 City 3 6 1 month 9 260 9 If 4 Aug. 7 3 months 10 500 10 Chicago 5 Sept. 5 2 // 8 600 10 City 6 July 6 4 // 9 1000 9 // 7 Sept. 14 60 days 16 2000 16 New York 8 Aug. 20 3 months 23 470 30 City 9 29 90 days 1 30 560 Ret'd Protested Nov. 30 New Orleans 10 July 25 5 months Dec. 28 980 Paid Dec. 31, less 320 City 11 18 5 If i 21 2600 21 /; 12 Nov. 4 30 days j ; 1868. 7 7800 7 «f 13 July 10 6 months Jan. 13 100 St. Louis 14 Oct. 12 60 days 1867. Dec. 14 4000 1 Paid Dec. 14, less $40 City 15 11 12 months 3000 '■ 14 16 Feb. 25 110 B 28 200 28 n 17 !10 n 150 28 It 18 Nov. 25 1 If 500 28 Cincinnati 19 Sept 26 190 days 140 30, less $10 City 20 Oct. 26 i 60 days 1868. 560 28 u 21 30 |90 // Jan. 31 800 3000 New York 22 28 i3 months 1 FOREiaN" COLLEOTIOI?^ REOISTER. REMITTED FOR COLLECTION. Collected for. No. Date. Dm. Amount. Memoranda. 1867. 1867. W. Payne 2 Oct. 5 Nov. 7 300 Received Nov. 9 J. R. Weldin 5 Sept. 5 8 600 Rec'd 10 C. Page 8 Aug. 20 23 470 Rec'd 30 Wilson, Childs & Co. 1 Oct. 2 Dec. 4 400 Rec'd Dec. 7 Ourselves 4 Nov. 7 1 10 .2800 Rec'd 14 R. Knox 14 Oct. 12 14 4000 Rec'd 14, less HO Ourselves 10 Nov. 18 21 1200 Rec'd 28, less 812 W. Hay 10 July 25 28 980 Rec'd 31, less 820 Jones & Hatch 19 Sept. 26 140 Rec'd 30, less 810 Ourselves 1 1 25 1868. 5000 Rec'd 31, less 850 R. Banks 22 Oct. 28 Jan. 31 3000 Ourselves 26 Nov. 3 Feb. 4 j 225 20000 do 22 Dec. 20 Mar. 23 do 29 3 6 360 do 24 15 18 4000 do 31 Sept. 15 18 234 do 16 Dec. 20 23 4000 861 PRIVATE BANKER'S DISCOUNT BOOK. 1867. ! Nov. 2!' Note 1 u 2 u 3 // EECEIVED. 4 Exchange C.B.I Nov. 7 Exchange 1 C.B.I Nov. 8 Exchange C.B.I Nov. 9 Note 5 Exchange C.B.I Nov. 16 Note 6 Exchange // C.B.I Nov. 23 Note 7 II " ^ ' I' // 9 i I // 10 • i Exchange u C.B.I Nov. 30 Exchange C.B.I DISCOUNTS. ! 1867. 46 67 i Nov. 18 67 19-60 17 73 45 10 125 158 92 28 17 8 21 69 10 7 3 5 ^1 2170 18 Nov. Nov. ; 8 Nov. I 9 39 70 747 45 10 62 47 16 47 35 10 5 60 56 50 31 Nov. 16 PAID. Exchange // H IT C.B.I Exchange u H H C.B.I Exchange u n C.B.I Exchange u C.B.I Exchange C.B.I Nov. "23 Exchange C.B.I 154 57 40 17 22 31 110 Nov. 30 Exchange Dec. It K If If C.B.I Exchange C.B.I 10 3 5 2 20 25 2 50 4 75 125 3 50 37 3 4 5 12 5 10 15 45 17 •2 11 75 25 37 22 21 105 10 3 50 1150 4 75 125 31 10 2 3 15 1. This is a record of all discounta receired and paid and all sums received and paid for exchanging money. The amounts are daily passed into the Cash Book. 362 1867. Dec. Dec. Dec. EECEIVED. I Exchange 14 C.B.I Dec. 21 Note 11 Exchange C.B.I Exchange Note 12 Exchange Note 13 Exchange Note 14 Exchange // C. B. 1 Dec. i 28 Dec. 29 Note 15 // 16 C.B.I Dec. 30 Dec. 31 Note 17 ' // 18 // 19 // 20 C.B.I Note 21 n 22 C.B.I Note 23 // 24 n 25 C.B.I Note 26 27 28 29 30 Draft 1 Note 31 Draft 2 C.B.I DISCOUNTS. 625 635 1 1 1867. Dec. 7 1260 37 37 25 13 13 PAID. Exchange C.B.I 75 50 40 525 I ^ ' 522 i 26| 504' I 5 60 526 505 60 Dec. 21 Exchange II Dec. 28 IP u C.B.I F. C. R., Note 10 C.B.I 2618 60 1947 6133 80 80 26 67 26 67 42 50 48, 143 84 Dec. 31 F. C. R., Notel C. B. 1 26 280 306 65 52! 83 200 1131 147 17.6 4 20 ! 160 10 3 90 113 34 363 3 T 4' 10 24 10 3 15 ^ 56 12 50 I 364 TICKLER, PRIVATE BANKER'S ACCOUNTS, NOVEMBER, 1867. 1. In business there is generally a whole page of this book appropriated for each day of the month. > And some bankers keep one Tickler for discounted paper, and another for collections. But we think the following form will serve without any inconvenience for both classes of paper. 2. As the notes are paid, they pass into the Cash Book ; or, if collections, to the Deposit Eegister. Protested notes, like No. 9, are returned to the owner, who must pay any ex- penses that are incurred. 365 s a a o • CO d Ret'd Nov. 30 «44 -^ Oi 1—1 Ci 03 CO o iz; iz; izi O ft ^ ^ ^ O 'd fl CO Co (» o bC QQ ;zi p p ft « a: P^ I ^ , Ph oj a: Ti "^ "^ w ■•-' "^ 'tf "^ • I—* .^H .^N CS ^ c^H k^^ cpH e3 cS edp4 Mcd ei eS P^ Ph OiU OiPh P-1 PM ea a- I GQ OD Tt< Tj4 ft -s e3 ft ^ Ph Ci^ a CO o o o CD O (M O ta o o o o CD O (M Tj4 CO o o to ^ 00 o o o o 00 (M o o o o o o O O CD (jq "tJH t}< CO t^ CD GO 1 i 2 e8 i 1 tS a 13 •3 ^ -=; o Ph ^ _^ ^ ^ -^ -^ c) o o {z;o o O PhO •I— I ft OQQ pq 09 00 t- o Oi CD CO (M CO » s > OQ OD § o o M '^ c» o o o I (4 OQ fiifi fiM fi <»' OQ (U OS CQ l-dQQ OQ cig o '^ £ ^ -2 «8 OQ Pnfiii-a Is Be fl • a s O o C3 • i-H rt OQ 0) S QQ T< >H OQ f— I "3 I L O QQ o OQiOQ l-sp^ QQ OQ »-aO I g Hfi (go ^■S "a fi ce «^ w o ^ pq o oJ o ;=: i Hare Hare • • P^ CQ o >> b i p;^ W i-sEhW i-sbQi-^ i-sH i-a © QQ 1 53 i"~i c8 03 O QQ a: c3 w W ©°^";^ GQ © ^' -bS ^-f QQ H ilds © en © ' WJS5 ft QQ © © d 00 o ^ © fl .r2 o c3 ^ '^ ^ ^ OQ ft =S CQ p:; S W CQ © OQ =t !£ ^^^^g^WO oqO P^P^O o as iHOt- OCDt-OOOSOrHOOOS CO ^ ITJ S I^ Hl S2 CO CD t OD © > ► I— 1 1 © ^ © QQ % 3° t-i (t tf S rH QO eci 1—1 00 367 « '\ W dB "3 g O a M tf-^ 2 o O O IZiOOQ OQOOO 1 CO «* 00 ■ ^1-1 Oil g Q ga 1 Wilson March hite March pner Young Smith Kerr March Hey Ives « ^ 3dW«^ ft 2 P^ Q dh5h>W Hi O H O ^ « OQ r] 03 Wi o 1 W. Holm. B. May ml. Green tgan <& Mo Page Rhea . F. Smith Bradley Vinsonhal ger & Co. Love Irian & Co . Langdon « OQ •2 • •w s 1 . , 9 S SQ OQ ^ O ? >; ^ i< £ 'fl? ^ ■ '^ 1 '© Q? n OQ * 5° QQ % % % % ft OQ % % % >H tH fM d s d ^ o O O o * o t-o Oil j>oco-^oi-i! cooiiMia a Cl rH (M 1 i-l(M Dec. 28 810 — Dec. 31 960 Balance 373 460 500 960 810 H Dr. HAY & WOOD. Or. 1867. Nov. : 23 Cash Dec. 4 u 400 400 1867. I Nov. 23 Cash 30 // Dec. 7! // 28 \,te 20 1 2 2 2 500 700 615 560 HOBERT MARTIN. i8«r. Dec. 14 Cash 2 300 t 1M7. Dec. 1 30 Cash m 2 400 H. P. FORD & CO. 1887. Dec. 31; Cash 600 CERTIFICATES 1867. Dec. 1 31 Cash, Dec. Dec. 2^ I 21 No. 1 2 If 3 *, 2. It is closed whenever the partners desire to divide the profits or see the results of their business 375 I Dr. P. DUFF. Cr. Dec. 31 Balance f 4 22482 87 1 18C7. Nov. Dec. Dec. 2 31 31 Cash Profit & Loss f 1 4 20000 2482 87 22482 87 22482 87 • Balance 22482 87 WM. 1867. Dec. 31 Balance f 4 11241 1 43 1867. Nov. Dec. Dec. 2 31 31 Cash Profit & Loss f 1 4 • 10000 1241 43 11241 43 11241 43 « • Balance 11241 43 Dr. DEPOSITORS' ACCOUNT. Cr. ^ 1887. Nov. 2 7 8 Cash 11 1000 675 1600 1867. Nov. 2 7 8 Cash It II 2200 1900 2200 9 If 2400 9 It 3260 1 10^ II 1100 10 It 3049 XV 16 If 1300 16 II 5985 1 23 It 7920 23 II 2900 3(1 II 4920 30 i| 6630 Dec. 4 II 560 Dec. 7 // 8815 , 7 14 21 28 31 It 1 It If II 360 430 2850 3640 6700 14 21 28 30 31 It II It It It 9960 1 2700- 1410* 800! 13910 Balance f 4 30354 Dec. 31 ! I 65809 65809 t Balance 30354 1 I I w. WOOD. 1867. Dec. 31 Balance f 4 11241 44 44 1867. Nov. Dec. Dec. 2 31 31 Cash Profit & Loss f Balance 1 4 10000 1241 44 11241 11241 44 11241 44 CASH ACCOUNT. 1867. Nov. Dec. Dec. 3C 31 Sundries 31 Balance 78343 66 68883 08 147226 74 Sundries // Balance 1 1 4 376 51810 88679 0737 147226 74 74 BILLS 1867. Nov. Dec. Dec. 2 9 11 23 7 14 21 2g f 311 Cash 31 Balance '^ 17400 4200 1600 7400 3800 4500 5600 12600 24000 15000 1254 97354 68354 RECEIVABLR 1867. Nov. Dec. 23 30 14 28 31 Cash // It It It It It Balance 377 I 5600 4000 2800 4200 3600 3800 5000 CS354 97354 3 Br. DISCOUNT ACCOUNT. Ce. Dr. R. P. (Cincinnati, 0.) DUFF. Cr- 4 18C7. Nov. Dec. Cash K 2i 30 4 7 21 281 31 ofit & Loss f 20 37 12 15 75 105 31 15 24 56 12 50 4965 5417 74 1807. Nov. Dec. i Cash 7! // 1 2^ 30 4 7 14 21 28 ^ 30 31 // It It n n II II .11 II II n II It 158 69 25 39 62 154 110 1260 75 2618 80 143 306 200 113 5417 92 70 47 57 50 60 80 84 34 "74 1867. Dec. !30 Dec. 31 Cash Balance THOMAS P. 1867. Dec. Dec. 31 31 Cash Balance 130 130 1807. Dec. 81 Balance (New Orleans.) SHEPHERD 960 i 960 1867. Dec. 31 Balance 130 960 \ I DUFF (New York.) BROTHERS & CO. 1867. Dec. 28 Cash Dec. 31 Balance 1188 1188 188 1807. Dec. 3l| Cash Balance 1 4 1000 188 1188 THOMAS (Chicago.) THOMPSON & CO. 1887. Dec. 31 Cash Balance f 1 4 4950 1050 1887. Dec. Deo. 31 31 Cash I 1 6000 6000 6000 tt • Balance 10.50 378 PROFIT BALANCE 1867. Dec. 31 Cash f 1 Bills Receivable 2 Duff Bros. & Co. 3 R. P. Duff 4 T. F. Shepherd 4 & LOSS. 2482 ! 87 1241 ; 43 1241 : 44 4965 ; 74 18C7. ' ! Dec. 31 Discount 4965 1 74 4965 74 ACCOUNT. 6737 68354 188 130 960 76369 74 74j 1867. Dec. • 31 Depositors f Thompson & Co. P. Duff Wm. Hay W. Wood 379 30354 I 1050' 22482 87 11241 43 11241 44 76369 I 74 ;ii SELECTED PROBLEMS IN ACCOUNTS. 1. 2. 3. 4. O. 6. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. QUESTIONS FOR EXAMINATION ON PRIVATE BANKER'S ACCOUNTS. What office does the Cash Book perform? (N. 1, p. 351.) Into what book are its contents posted? (N. 1, p. 351.) Where are the aggregate monthly receipts and payments posted from? (N. 2, p. 351.) What is entered in the Deposit Register? (N. 1, p. 355.) Where are the daily amounts carried to? (N. 1, p. 355.) Into what book do we post the particulars? (N. 1, p. 355.) What does the'Check Register record? (N. 1, p. 356.) Where are the amounts transferred ? (N. 1, p. 356.) How often ? (N. 1, p. 356.) Where do we post the particulars? (N. 1, p. 356.) What is entered on the Bill Book ? (N. 1, p. 358.) Where are the discounts entered? (N. 1, p. 358.) Where do we enter the payments? (N. 1, p. 358.) Where dd we record the maturity of discounted paper? (N. 1, p. 358.) What does the Collection Register record ? (N. 1, p. 360.) What is done with the net proceeds of collections? (N. 1. p. 360.) When are Foreign Notes or Bills remitted for collection? (N. 2, p. 360.) When you are notified by your agent of the payment of a collection, how is it entered ; (N. 2, p. 360.) What is recorded in the Discount Book? (N. 1, p. 362.) When and where are the amounts carried to? (N. 1 . p. 362.) How many Ticklers are kept by some Bankers ? Q\. 1, p. 365.) How do we enter the notes as they are paid? (N. 2, p. 365.) What is done with protested paper ? (N. 2, p. 365.) Who pays the expenses of a Protest ? (N. 2, p. 365.) What accounts are kept in the Depositor's Ledger ? (N. 2, p. 369.) What books is it comjlbsed from ? (N. 2, p. 369..) When are the accounts in it balanced ? (N. 2, p. 369.) What must the aggregate balances agree with ? (N. 3, p. 369.) Where are the contents of the General Ledger posted from? (N. 1, p. 375.) When is it closed ? (N. 2, p. 375.) 380 PROBLEM I. W- X., Y., and Z. bought of A. on joint account, each }, $20000 worth of sugars, for which W. as manager of the sales gave his note to A. at four months, indorsed by the other partners; and each partner made conforming entries in his books. Afterward, A. offers W. 5 per cent, discount off the face of his notes, to cash them, which W. on conferring with X. and Y. agrees to, Z. being a resident of Philadelphia, to which place he had re- turned after entering into the above transaction. W. pays his own share and half of Z.'s in cash, less the 5 per cent, discount. X. pays his own share and one-fourth of Z.'s, less the 5 per cent, discount, in a draft at sight on C, of New York, which A. accepts in pay- ment at f per cent, premium; X. allowing him 1 per cent, brokerage on the face of the draft for negotiating it. Y. pays his own share and \ of Z.'s, less 5 per cent, discount, in a draft at 60 days' sight upon Z., which A. accepts in payment at 2 J per cent, discount, drawn for such sum as will cover the transaction, and 1 per cent, brokerage on the face of the draft, which A. charges for negotiating it. On advice of this second arrangement, Z. makes con- forming entries in his books. Afterward W. orders him to invest the amount which he had advanced for him in the above transaction in bills on New Orleans, and remit, on W.'s account, to B., of that place. This was done in bills at 2* per cent, discount, which closed the account, and covered \ per cent, brokerage on the face of the bills, which Z. charged for investing. Required the correct amounts and the correct Journal entries of W., X., Y., and Z., in each of the above transactions. PROBLEM 11. A., B., and C. purchased the machinery and hull of an old steamer called the "Vixen," for $10000, of which A. paid $4000, B. $3400, and C. $2600. They afterward sold \ of the purchase to D. for $2000 cash, which they divided and drew out of the concern in such proportions as left them all \ ovrners. In these proportions as owners, and with this machinery, they built the steamer " Yolante.'' In addition to their shares in the machinery, A. paid in cash $l'261, B. $1320, C. $1410, and D. $1430. After running fifteen months, the boat was sunk and lost. The accounts on her books then stood as follows : Steamer "Volante" Steamer "Vixen" Freight account Passage ii Wages II Fuel w Expense ii Bills Payable Bar account . DcbiU. $14894.83 «4.35 0.67 21923.88 11843.02 24134.27 130.30 Credits. $265.39 35803.04 28375.17 104.01 8450. 363.71 Effects saved from the wreck realized $2860. C. and D.'s shares were uninsured. A had $4000 and B. $3000 insured on their shares, valued at $5000 each. The amounts in- sured when recovered, and the amount realized by the owners from the wreck, were applied in discharging the above claims against the vessel. Each owner was \ gain or loss. Re- quired the settlement of the transaction between them. Also, the division of D.'s purchase- money between A., B., and C. PROBLEM III. A., B., and C. agree to do business in partnership, on the following terms: C. is to manage the business, and to have a commission equal to half the net gain on the business for the management of it. A. pays in $2600 capital, B. $1400, C. $1200. C. draws out $2400. At the end of the year they have cash on hand, $3000 ; merchandise, $2400. They owe $500. Their expense account is Dr. for $600. The gain or loss to be divided equally. Required the balance due each; also, the amount of C's commission. 381 il ^ ^1 *'• SELECTED PKOBLEMS. PROBLEM IV. C. is manager of a joint speculation in flour with D. and E., of which C and T) ,r. each i and E i proprietors. C. takes $12,000 worth of the joint property to his private He pays U $1500 m merchnndise, and gave his (C.'s) note for $1000, and save ud his (D^s) own note which he held against him for $500. He paid E his * ( Seoom mnan in flour belonging to the Company, and $3000 in his (C.-sfdrafron F of NewVork at hrotZ:'^\"'^^ ^l cent, discount for such sum as Will Ler the $3000 and* per cen' brokerage on the face of the draft, which E. charges for negotiating it. ^ Required C.'s Journal entry, with the correct amounts composing it. PROBLEM V. T fc^!nTl! "^^°"'' T^ "y'"'^ "" "^"'"S business on joint account. As manager of the sales Sor losr On"thr ""^ ^'"Z:" ^""K'' '"'^'^ *« *'"« of 1^' «<>• sales eahpartae; insut:: p^!r^:'^:^:l,l't'^^^^ '- «». s^es. I^ave paid rectr my i7v JcToflhTrmf '"^ ^""' '''''^''"' ^''°' ^°""^' ^^"^ -"7> -"en he PKOBLEM VI. J ^^^'.^' ^7®' and J. KiDg, owners of steamer "Albatross." Jt^r%i;\rrn^L^it^a7p:ar°^t"^^^^^ ^^ -^^S ^He J. Bay paid in S2400, drew out 81158 ■ Howe // 2690, /a 1212 J. King // 4950, // 2750 the bo'at $157" *''*'' "' '•"' ""'' "'""''' *''' '*-"" -^-k. $820, and debts due Required the settlement between the owners of the boat. PROBLEM Vn. ^ 81440 p 1465 i; 1485 ^ 1610 $6000 which sums were placed to the credit of their respective accounts on the vessel's books 382 SELECTED PKOBLEMS. For the balance of $2000 they gave their joint note, which was afterwards taken up with , funds earned by the boat. At the end of six months, D. sells out his interest, as it then stood upon the books, to C, who paid him for the same out of his own private funds. The remaining owners some time afterwards sold the vessel for $6500 ; and, after discharging all claims against them, they have cash and other effects left amounting to $6450. The books were kept by Single Entry, and no settlement took place since the commencement of their connection. Their accounts now stand upon their Ledger as follows : — A/s account debited for sums withdrawn, $2050, and credited for sums paid in, $2255 B/s » ff 1 1640, nun 2060 C.'s nun 1750, n w a 2110 D.'s n M It 1965, « * » 2090 No interest to be computed in the settlement. Required the division of the above $6450 between A., B., and C. PROBLEM VIIL On January 1, 1867, Brewer, Malt & Co., of Pittsburgh, sent their clerk, W. Porter, to Louisville, to establish an agency for selling their ales. On 30th June following, the agency was discontinued, and they rendered the following account to Porter, the items of which both parties agree are correct, but Porter thinks the balance is not correct. Is it 80 ? or, what is the correct balance ? > MB. WALTEE PORTER Dr. In Account with BREWER, MALT & CO., Cr. 1867. Jan. June 1 30 30 To Cash advanced. Invoice of Ales , Cash Invoice of Ale. , Cash for sales.. Ale returned... 1/ II To Bal. due B., M. & Co. 1867. 191 Feb. 297 Mar. 389 ; May 298 June 2938 50 810 50 4923 608 1 1 1 30 By Cash paid for Barley II Casl^aid for Hops... II Paid Kent II Paid Expenses // Salary Ale returned I! ! // 1508 1007 260 40 690 810 Balance due 608 50 4923 50 PROBLEM IX. Lea & Preston purchase of J. Stanley \ of the steamer " Herald," which is h his paid- up capital (at his credit on the books) of $6500, for which they pay him $4000. They have an account against the boat for repairing machinery of $1250, which it is agreed is to stand as part payment ; the balance they pay Stanley in cash. Required the Journal entry to introduce the new owners into the books. 383 INDEX. ii Abbreviations • • • • Acceptance, form of, Form XI Accepting a correspondent's draft, Jan. 3, p. 70*; Feb. 20 * Accepting supra protest for honor of drawer, Apr 10 Account Books, directions for ruling .... Accounts current with interest . forms of of sales, form of , , ' ' , on jomt account personal. Rules III. & IV., p. 38: note 3 . ' . ' Profit & Loss, how kept, Rule VIII., p. 40; Note 1 property, how kept, notes 1 & 2, p. 35 : Note 7 property, Rules VI. & VII Addition, method of proving Advance and discount compounded, Ex. 10, 11, 12 13 Average gain or loss on Mdse. account, Rule Exercises Average, General, computations in . Balance account. Double Entry Single Entry . . . ' . * Balance Sheet, form of Bank Stock received in legacv, Anr 10* Bill Books, forms of ^ -f ' ^ ' ^" * • • Bill of Exchange (foreign), accepting, * collection of, payment of, payment of acceptance, purchase of, purchase of, on commission, „., sales of, ... Bill of Parcels, form of Bills and notes paid in instalments. Notes 3 *& 4 Bills of Exchange, &c., Rule IX Bills Payable account, directiDns for Receivable account, directions for Boards, computing the price of . Bottomry Bond, cash lent on, Feb. 25 collected, Apr. 25 .*.*.* Cash account, directions for why balance monthly . Cash Book defined . . . . . ' . * . directions for ruling Cash entry for lost money when found, . Feb 25 received for investment on joint account. Mar. 1 Cash Sales Book Check Book balanced, with part of the checks unpaid * defined form of Ciphers, why not used in cent columns. Note 8 . ' Closing the Ledger, specifications for exercises Commission & Brokerage computation adjusted with a retiring partner, Ex. 10 Rates by New York Chamber of Commerce n • . o 1 X, P^^i^adelphia Chamber of Commerce Commission Sales Book defined Consignment, amount unsold taken to account, * Mar*. 12 (foreign), received on joint account, Apr. 20 Consignments, average time upon, how found, . 384 Feb. 20 Feb. 25 Feb. 18 Mar. 5 Feb. 25 June 12 Feb. 28 PAGE . 21 119 . 76 86 . 163 114 20, 116 117 118 23 24 23 39 197 198 36 198 211 35, 113, 134, 174 17 . 175 84 . 48, 148 76 . 76 76 . 80 76 . 94 78 . 20 52 . 40, 118 34 . 33 210 . 76 88 . 34 112 . 9, 53, 144 57 76 78 8 219 146 146 27 213 199 204 192 191 65, 143 80 . 88 68 INDEX. rA«a Consignments (foreign), received, entry for, Feb. 1 74 made to others, Rule XL ' . * . * . * 41 received and reconsigned to others, Feb. 12 74 received, Rule for conducting. Rule X * . * . * 41 for finding the net proceeds, Note 25 41 Day Book, Double Entry, definition of 24 opened in individual business . . . . . * . ' 28, 70 Single Entry, definition of 14 opened in partnership XO Six-Column ' . " . * 125 the book of original entry. Note 1 25 Deranged Double Entry books, to rectify .*.'.'.* * 215 Discount, by bank, entry for, Feb. 6 . '.*.*.*. 74 by myself, of notes, Dec. 21 *.*.*.' * 30 Drafts received for collection, Feb. 25 '.'.*.'. 76 Endorsed Note, form of, Form XVII ng Equations, compound *.*.*.* * 209 simple .*.*.'.*.'.'.*.'.* 207 storage 208 Errors, detecting and correcting *.*.'.*.*.* 98 163 Estate, bankrupt, division of assets, Ex. 14 . . . .'.*.*,*.'. .217 Exchange, indirect *.*.*.'.* * * 206 Exchanges, domestic and foreign *.'.'.*.* * 205 Executor of an estate, payments as, . Mar. 16, 17 . * . * , * . * . * . * . * g2 . property received as, Mar. 12 * ... 82 Exercises for the final examination of the student ^^ in closing the Ledger '.'.*.*.*. 213 in discounting business paper 221 in making out invoices . ^ . * . * 219 in opening books *.'.".'.*.* 212 in stating accountsf of sale *.*.*.*.* 207 in the settlement of consignments ' , ' * 220 in the settlement of joint accounts . . . .*.*.*,*. 220 Expense Book, directions for keeping , , . , ,',*,*,* * * 147 Foreign importation, on my own account, Dec. 1, p. 30: Feb. 1 . . 74 Freight, computing '.'.*.* 210 Freight of vessels tjo Gain & Loss, adjustment between partners ....*.., 203 204 House, Insurance of, Feb. 18 . . . ^n Insolvent debtors, compounding with, Jan. 20 72 note compounding for, Feb. 12 *.'.'.*.*.*.*. * 74 Insurance, effected on a ship as agent. Mar. 4 * 78 on a shipment as agent, May 31 . , ' , \ ' * ' * 99 on my house, . . Feb. 18 '.*.'.* 76 * on my store, . Feb. 18 75 covering the premium and policy, Ex. 5 settlement with the insurers for loss by fire, Feb. 28 . * . * . * . * . ' 73 with the underwriters, . . June 18 * 94 Interest, abbreviated rule for computing .... ... ^ adjustment of * ' iqa oaq legal rates in different States . . . ,.*.*.*.' * * foo mercantile and legal, rule for computine oni Inventory, forms of . . . . ^ ° . * . * * * " ' .g 61 m Invoice Book, defined .... ' tlill form of . . tq'lf? formsof . . . . . . * ^?^^ll Invoices, exercises in making 219 Joint accounts, closing with a loss, June 1 94 with gain. Mar. 5 . . .'.'.*.' ' * * 80 with part sold, Note 4, 1st Co. Sales . .'.*.'.*.' 109 z 385 i! • r Mar Mar INDEX. Joint accounts, closing with property returned unsold, June 25 with sales complete, Note 13 defined ........ Rule for conducting as manager, XII. as silent partner. Note 9 for finding net proceeds, Note 1 when our share is paid in by a partner, Mar. 1 when we find our partner's stock, when we find a part of partner's stock Joint Promissory Note, form of, XII. Journal, checking of, Note 2 definition of ... directions for posting monthly .... Six-Column use of, Note 6 . . . Journalizing, from the auxiliaries monthly Rules for Journeymen's wages, entry for, Feb. 1 Judgment Note, form of, Example 9 Key to principal articles . . • ledger, closing in partnership Double Entry, definition of . on opening and closing opening in partnership private, form and definition rules for closing . Single Entry, definition of on closing re-opening by Double Entry Letter of Advice, form of, Form XXI. of Credit, form of. Form XIX. . of Introduction, form of, Form XVIII Loan upon an endorsed note, Apr. 1 Manufacturers' Time Registers, form of . Merchandise account, directions for daily sales of, how found by average gain per cent, on sales, how found imported on private account, Feb Note 14; insurance of, . . . . Feb. 18 received for sale on joint account. Mar. 1 2 28 Notes, accepting supra protest, for honor of a correspondent, Apr collection of, when past due, Apr promissory, accommodation, entry for, . . Jan forms of ...... . when endorsed, due and unpaid, entry for. Mar. 16 Opening Books, specifications and exercises in Orders, forms of Partnership Books closed with profits equal . with profits unequal . introducing a new partner opened settlements settlements by single entry settling after dissolution Payment of draft for honor of a correspondent, Apr. 10 of our note under protest, . . Apr. 29 Posting defined, Note 7 from the primary books to the Ledger how marked, Note 8 386 10 20 31 PAOB 96 43 42 43 42 43 78 78 84 119 32 25 32 163 157 25 162 163 26 126 222 183 130 23 32 129 173 99 14 18 19 120 120 120 84 186 33 36 36 74 76 78 86 86 72 119 82 212 118 174 134 136 124 177, 215 13, 214 176 84 88 24 162 24 INDEX. PA6B Private Ledger, how opened and closed 173 Profits divided equally '.*'.'.' 174 divided in proportion to capital 134 to time and capital . 216 Promissory Note, form of, X ' . .119 Proof Sheet, an improved form for monthly trial * . . 172 forms of * 36,'l35,'l71, 183 Property, entry for rent, Jan. 18 72 repairs, Jan. 18 72 received as executor, Mar. 12 g2 received from legacy, Dec. 14 .30 Quantity of goods for a ton, in freighting . . 194 Receipts, forms of j^g how taken upon a Day Book or Cash Book, Feb. 20 . .*.*.'.*. 7*6 145 Receiving and Forwarding Register, form of * . ' igg Rents, collecting *.'.'.' * 88 Rules for closing the Ledger *.*.'.'.*.* 99 computing time when bills and notes fall due . .*.*.*.*.*.' 45 debiting and crediting. Single Entry * * 7 Journalizing "'.*.'.* 26 with illustrations 38 39 40 41 Ruling books of account * ' ' 'igo directions for * . * . " * 5ft Running time on business paper, in days '.'.*.' * 45 in months * . * . 45 Sales Book defined go iQg form of ....'. 63 138 Scantling, computing the price of *.*.".*.' 210 Settlement of accounts by "starring out balances . . . .'.'..,',* 218 Ship, purchase of, Jan. 20 * . ' * 22 sale of, June 30 * . ..*.'.'.' 95 Shipment, closing with a gain, . . Mar. 12 ' . * ' 80 entry for returns, . . Mar. 12 . . . .*.*.'.*. 80 (foreign), loss of, at sea, . June 18 . . ' . . .*.'.* * 94 (foreign), on joint account . Apr. 10, 15 . . ' . .'.*.*.'. 85 (foreign), our own account, Apr. 5 .84 on account of another person, Feb. 12 *.*.*.*. 74 on our own account, entry for, Feb. 12 . . . .*.'.*.'.* 74 Rule for. Rule XI *.*.*.. 41 Specifications and exercises in stating invoices * * 219 Stock Account, directions for '.'.*,' * * 33 38 Stocks, buying and selling. May 4, . . . . . .*..'.*.*. 90 205 Storage Equations * . * . ' * * * 208 rate for, by Chamber of Commerce, New York . . .'.'.*.*. 193 by Chamber of Commerce, Philadelphia . . .'..'.'. 190 Sundry Crs. account ' " * yr^ Drs. account * . ' . * * * 170 Suspended List *.'.*.'.".* * 134 174 Time Registers, forms of i og Trial Balance (proof sheet), forms of *.'.'.*. 36 13*5 171 Sheet, new form for monthly . . . > . . . .*.*.*.' ' 172 Unexpired time on business paper, how found, Ex. 51 to 55 201 221 Vessel, disbursements as agent, Mar. 4 ^ ^ 70 loan on bottomry bond of, Feb. 25 . . . .*.*.*.'.*.* 76 purchase of, as part owner. Mar. 2 *','.*.*. 78 as sole owner, Jan. 20 " . * . * 72 receipts as agent, . , Mar. 5 '.'.*.' 80 Winding up partnership accounts yj^ 387 ^ i \ INpEX. INDEX TO NATIONAL BANK BOOKS. PAOS Articles of Association ^ By-Laws ^^ Bank Note Register ^°^ Cash Book, General, defined ^' Paying Teller^s 269 Recei^ng Teller's 261 Collection Register, City 287 Foreign ^* Passed City and Foreign 291 Remitted for 290 Certified Checks 273 Certificates of Deposit ^^ Discount Book -j^ Depositor's Ledger, Improved form of f^ Dividend Book • J^o • Check, form of . . . ^^ Forms, Authority to sign business paper ^^ Certificate of Deposit ^^ Certified Check {j^ Dividend Check 309 Power of Attorney to transfer stock ^^ Protest for non-payment 286 Semi-annual Statement jjj^^ Teller's daily Statement 274 Foreign Bill Book 280 Bills of Exchange 280 Bill protested ' * ' * * qaq General Ledger ^^^ Introductory Remarks 242 243 244 Instalment Lists ^^ ^^^' ^ , Scrip 245 Journal j^^ Ledger, Depositor's J^' General i^t Stock ' ' ' lu Standing, form oi ^^;!- Minute Book 229 OfferingBook * 989 Protest Book ^°^ Protested paper, account of, how kept ^o^ Protest, form of ^ 286 Passed City and Foreign Collection Register 291 Questions for Examination ^12 Register of Signatures 268 '"^S^^S^of • ■. • .•.•.•.•.•.•.•.•.••• 2^2.^1 Ledger 257 Register ^^' 388 Stock, Subscription to 241 Transfer of 246 Transfer of, by Power of Attorney 252 Transfer Book, form of 246 Teller's Statement, form of 274 Tickler 293 INDEX TO RAIL ROAD BOOKS. Construction and Equipment Day Book Dividend Book .... Forms, Local Bill of Lading . Petroleum Bill of Lading Through Bill of Lading , Through Manifest Way Manifest . General Ledger Introductory Remarks . Journal Ledger, General . Stock . Operating Expenditures Receipts . Questions for Examination Stock Ledger . 315 340 322 330 322 328 328 341 314 331 341 337 323 329 348 337 INDEX TO PRIVATE BANKER'S BOOKS. Bill Book 35g Collection Register ' 360 Cash Book . 351 Check Register .356 Deposit Register 354 Discount Book 362 Depositor's Ledger . . 369 Foreign Collection Register 360 "Five-Twenty" Bonds, form of 364 General Ledger 375 Ledger, Depositor's 369 General 375 Preliminary Remarks 351 Questions for Examination 380 Tickler 365 389 RECOMMENDATIONS. " It gives a clear insiglit into this science through all its gradations, from the simple style of the retailer to that required for the most varied and complicated commercial busi- RECOMMENDATIONS. THE FOLLOWING RECOMMENDATIONS INDICATE THE PUBLIC SENTIMENT IN REFERENCE TO THIS WORK. Extract from the official report of a Special Committee of Merchants of the Chamber of Commerce of the city of New York : Chamber or Commerce, New York, Feb. 6, 1849. At a regular meeting of the Chamber, held this day, the following report was presented, accepted, and a copy ordered to be transmitted to Mr. Duff. The committee to whom was referred the subject of Mr. Duff's work on Book-keeping, Rep(yrt^ That they have examined the work submitted to them, and deem the favorable opinions which have already been ex- pressed by gentlemen of competent authority, and prefixed to its pages, well deserved, and in this case very properly bestowed. Respectfully submitted, (Signed) CHARLES M. LEUPP, Merchant. LEOPOLD BIERWIRTH, do. ROBERT KELLY, President of the Board of Education. Extract from the Minutes. Prosper M. Wetmore, Secretary. Extract from a report of a Special Committee of Merchants and Accountants, appointed by the Board of Managers for the American Institute, to examine this work : " Your committee are so favorably impressed with the proposed improved method of Mr. Duff, that they unanimously concur in the opinion of its utility, and that the public would be benefited by adopting it." I certify that the foregoing is a true copy of a Report of a Special Committee, made to and adopted by the American Institute of the city of New York. GURDON J. LEEDS, Recording Secretary. " It contains much matter that is important and interesting to the merchant and man of business, to whom it will be found highly useful." C 0. HALSTEAD, Late President of Manhattan Bank, N. Y. *' It is by far the most complete work of the kind I have ever seen." JAMES B. MURRAY, President Exchange National Bank, Pittsburgh. " I differ entirely from those who think the counting-house the best place to learn Book- keeping in. From this work it is learned in its application to every form of business, un- trammelled by the peculiar details of any one kind of business." THOMPSON BELL, President Commercial Bank of Pittsburgh. " No other work upon Book-keeping, so far as my knowledge of them extends, explains the subject with so much clearness and simplicity." F. W. EDMONDS, Late Cashier Mechanics' Bank, Wall Street, N. Y. 390 ness A. S. FRASER, Cashier Seventh Ward Bank, N. Y. " I graduated in Duff's College in about half the time that I expected. His admirable system leaves out nothing essential, nor puts in any thing superfluous." J. R. COMPTON, Cashier of the Niagara Bank, Lockport, N. Y. " I admire your system of Book-keeping. Since I acquired a knowledge of it, some years since, through Mr. David Parsons, I have put it in practice in different branches of busi- ness, and have always found it work like a charm. I have recommended it to my friends as containing all that is necessary to make the most thorough accountant." R. LAMB, Cashier People's Bank, Bellefontaine, Ohio. " Duff's Book-keeping is, without doubt, the best adapted to a business education ever published. Students save about half the time and labor required by other systems." JOHN J. JONES, Book-keeper First National Bank, Wheeling, Va. " The new method of checks and balances will, if carried out, prevent errors, or, if made, they will be more readily found than by any other system." DAVID L. BROWN, Late Book-keeper to the Merc, and Manuf. National Bank, Pittsburgh. " It is in every way calciriated to impart that knowledge necessary for the experienced book-keeper. Every thing is made plain and easy to be understood." J. CAROTHERS, -' Formerly Banker, Wood Street, Pittsburgh. " Your work on Book-keeping is the most clear and comprehensive that I have met with." JOHN SNYDER, Late Cashier Bank of Pittsburgh. " It is evident that you have brought to the study of Book-keeping a clear head which has lost none of that clearness by the long cultivation of an accurate science. It is impos- sible to make the subject of accounts more easy of comprehension to the young beginner; and, what is often still more difficult, you have made it so to the old learner." W. H. DENNY, Late Cashier of the Merchants' and Manufacturers' National Bank, Pittsburgh. " I knew little or nothing of Book-keeping when I entered your College. Since leaving it I have had charge of the books of this banking firm for nearly six years, and have kept them without difficulty. During my leisure hours I settled up the books of a mercantile firm, and have met with nothing but what was fully explained in your course of instruc- tion." M. HUNNINGS, Of the firm of Kramer & Rahm, Bankers, Pittsburgh. " I took charge of the books of this extensive banking-house immediately on leaving your classes, and have every evidence that I give them perfect satisfaction." J. W. DAVITT, Of the firm of Kramer & Rahm, Bankers, Pittsburgh. " My tuition fee in Duff's College and the study of his new system of accounts was among the best investments I ever made." C. E. BABCOCK, Book-keeper State Bank of Iowa, Fort Madison. 391 EECOMMENDATIONS. RECOMMENDATIONS. THE FOLLOWING RECOMMENDATIONS INDICATE THE PUBLIC SENTIMENT IN REFERENCE TO THIS WORK. Extract from the official report of a Special Committee of Merchants of the Chamber of Commerce of the city of New York : Chamber op Commerce, New York, Feb. 6, 1849. At a regular meeting of the Chamber, held this day, the following report was presented, accepted, and a copy ordered to be transmitted to Mr. Duff. The committee to whom was referred the subject of Mr. Duff's work on Book-keeping, -i?epor?, That they have examined the work submitted to them, and deem the fayorable opinions which have already been ex- pressed by gentlemen of competent authority, and prefixed to its pages, well deserved, and in this case very properly bestowed. Respectfully submitted, (Signed) CHARLES M. LEUPP, Merchant. LEOPOLD BIERWIRTH, do. ROBERT KELLY, President of the Board of Education. Extract from the Minutes. Prosper M. Wetmore, Secretary. Extract from a report of a Special Committee of Merchants and Accountants, appointed by the Board of Managers for the American Institute, to examine this work : " Your committee are so favorably impressed with" the proposed improved method of Mr. Duff, that they unanimously concur in the opinion of its utility, and that the public would be benefited by adopting it." I certify that the foregoing is a true copy of a Report of a Special Committee, made to and adopted by the American Institute of the city of New York. GURDON J. LEEDS, Recording Secretary. " It contains much matter that is important and interesting to the merchant and man of business, to whom it will be found highly useful.'' C. 0. HALSTEAD, Late President of Manhattan Bank, N. Y. " It is by far the most complete work of the kind I have ever seen." JAMES B. MURRAY, President Exchange National Bank, Pittsburgh. " I differ entirely from those who think the counting-house the best place to learn Book- keeping in. From this work it is learned in its application to every form of business, un- trammelled by the peculiar details of any one kind of business." THOMPSON BELL, President Commercial Bank of Pittsburgh. " No other work upon Book-keeping, so far as my knowledge of them extends, explains the subject with so much clearness and simplicity." F. W. EDMONDS, Late Cashier Mechanics' Bank, Wall Street, N. Y. 390 " It gives a clear insight into this science through all its gradations, from the simple style of the retailer to that required for the most varied and complicated commercial busi- ness. A. S. ERASER, Cashier Seventh Ward Bank, N. Y " I graduated in Duff's College in about half the time that I expected. His admirable system leaves out nothing essential, nor puts in any thing superfluous." J. R. COMPTON, Cashier of the Niagara Bank, Lockport, N. Y. ^ " I admire your system of Book-keeping. Since I acquired a knowledge of it, some years since, through Mr. David Parsons, I have put it in practice in different branches of busi- ness, and have always found it work like a charm. I have recommended it to my friends as containing all that is necessary to make the most thorough accountant." R. LAMB, Cashier People's Bank, Belief ontaine, Ohio. " Duff's Book-keeping is, without doubt, the best adapted to a business education ever published. Students save about half the time and labor required by other systems." JOHN J. JONES, Book-keeper First National Bank, Wheeling, Va. " The new method of checks and balances will, if carried out, prevent errors, or, if made, they will be more readily found than by any other system." DAVID L. BROWN, Late Book-keeper to the Merc, and Manuf. National Bank, Pittsburgh. u It is in every way' calculated to impart that knowledge necessary for the experienced book-keeper. Every thing is made plain and easy to be understood." J. CAROTHERS, ' Formerly Banker, Wood Street, Pittsburgh. " Your work on Book-keeping is the most clear and comprehensive that I have met with." JOHN SNYDER, Late Cashier Bank of Pittsburgh. " It is evident that you have brought to the study of Book-keeping a clear head which has lost none of that clearness by the long cultivation of an accurate science. It is impos- sible to make the subject of accounts more easy of comprehension to the young beginner; and, what is often still more difficult, you have made it so to the old learner." W. H. DENNY, Late Cashier of the Merchants' and Manufacturers' National Bank, Pittsburgh. S " I knew little or nothing of Book-keeping when I entered your College. Since leavin it I have had charge of the books of this banking firm for nearly six years, and have kept them without difficulty. During my leisure hours I settled up the books of a mercantile firm, and have met with nothing but what was fully explained in your course of instruc- tion." , M. HUNNINGS, Of the firm of Kramer & Rahm, Bankers, Pittsburgh. " I took charge of the books of this extensive banking-house immediately on leaving your classes, and have every evidence that I give them perfect satisfaction." J. W. DAVITT, Of the firm of Kramer & Rahm, Bankers, Pittsburgh. " My tuition fee in Duff's College and the study of his new system of accounts was among the best investments I ever made." C. E. BABCOCK, Book-keeper State Bank of Iowa, Fort Madison. 391 II II I « RECOMMENDATIONS. " An experience of nine years in business has not yet brought any transaction into my hand so difficult as many of your class exercises." E. SPAHR, Book-keeper to the National Bank of Commerce, Pittsburgh. The following letter indicates the perfection of the course of study in this old and popu- lar institution : " With no previous knowledge of accounts, nor practice in any kind of book-keeping, ex- cept a course of study in Duff's College^ from his system of Book-keeping, I took charge of the books of this bank. This treatise certainly combines the most comprehensive system of science and practice in accountantship now before the public. It is so judiciously diversi- fied that it fits the student for keeping accounts in any kind of business." FRED. L. RAINBOW, Book-keeper Mechanics' National Bank, Pittsburgh. *' I consider this treatise the most comprehensive and complete system of Book-keeping that I have met with." T. B. DICKSON, Individual Book-keeper Merc, and Manuf. National Bank, Pittsburgh. ** I readily concur in all that is said of this work by other competent judges. No writer upon Book-keeping has had the advantage of such an extensive and varied experience in business. I have known him, personally, for upwards of twenty years ; a great part of that time as an extensive American and European merchant, as an extensive ship-owner, and as a bank director, &c., and in all these departments he has borne the reputation of the highest order of business talents. Every thing said or written by such a person, on the subject of business, is of interest, not only to young men designed for business, but for those already engaged in it." JOHN W. BURNHAM, Merchant, No. 8 South Street, New York. " You have made good use of your long experience as a merchant in making plain many of those matters of business, the want of due comprehension of which so often occasions serious difficulties in the counting-house. The accuracy and conciseness manifested throughout the whole work, bear testimony to the great care and labor you have bestowed upon it." RICHARD IRVIN, Merchant, 98 Front Street, New York. " Mr. Duff is a man of rare qualifications for business, — a man that will go through with whatever he takes in hand. His system of Book-keeping should be studied by every one who has any thing to do with dollars and cents." JOHN McD. TAYLOR, Merchant, Union Street, New Orleans. " Mr. Duff is a merchant of the first respectability." J. LANDIS, Merchant, New Orleans. " Mr. Duff has been recommended to me as a merchant of the highest respectability." 0. H. BLISS, Merchant, New Orleans. " I have always pronounced your system the most thorough and diversified course of training for business, before the public. The most experienced accountant will recognize, in your plan of rectifying deranged books, a new and most ingenious method of bringing order out of confusion." ANGUS CAMPBELL, Book-keeper to Burdett & Choate, Wholesale Commission Merchants, Memphis, Tenn. 392 KECOMMEISTDATIONS. " Your system of accounts is excelsior. Every man that studies it as you direct cannot help going into business a first-class accountant, and with a good general business know- ledge that it will take years to acquire by practice. Your Bank Check Book is an improve- ment of great value in all large houses." W. D. ELLIOTT, ° Book-keeper to Smith, Sherwood & Co., Merchanta. St. Louis,' Mo. *' I have been thirty years a practical book-keeper, and during my practice I have never before met with a work which so fully explains the whole subject of accounts; in fact, it is the first treatise that I have seen from which a thorough practical knowledge of the science can be obtained." JOHN CAMPBELL, Merchant, 53 John Street, New 1 ork. " There is no other system of Book-keeping in use that so thoroughly and practically elucidates this part of a business education ; and your impressive and interesting lectures on business, commercial law, banking, &c., will be useful to me through life." X. Ji. A-UAJyife, Book-keeper for McElroy, Dickson & Co., Merchants, Pittsburgh. " With no previous knowledge of accounts, except your course of study, I took charge of the books of this extensive business, and have kept them satisfactorily for nearly eight vears. To obtain the best business education, I say go at once to the best college, which I am positive is yours." CHARLES F. WELLS, Book-keeper for B. L. Fahnestock & Co., Importers and Wholesale Druggists, Pittsburgh, Pa. " With no other education than I got in a common country school, your instruction in Book-keeping enabled me to take charge of the books of an extensive firm in Wood Street. and finally of the books of this department of the Railroad Company, which I have now kept successfully for eight years." J- K.. SMITH, '^ ' Book-keeper, Treasurer of the Pittsburgh, Fort Wayne & Chicago Railroad Co. *' I have tested the thorough business training I received in your excellent establish- ment, bv many years' successful practice in some of the largest firms in the city." ' ^ ^ ^ ^ SIMON JOHNSTON, Druggist, Pittsburgh. " The accountant who keeps his books upon your system will have the advantage of im- nrovements which are not found in any other system." ^ HARVEY M. COWAN, Late Book-keeper to Messrs. J. Wood well & Co., Hardware Merchants, Pittsburgh. " At the age of seventeen I graduated in your College. I have since kept books in banks in Springfield, Illinois, and St. Louis, Missouri, until my health compelled me to return to this vicinity, where I am keeping the books of this extensive firm. It is due to you to say, that the longer I have practised upon it, the more I am satisfied that your judiciously arranged and diversified course of study is superior to all others that I have seen, in pre- paring a young man for any branch of business." T. K. BABCOCK, Book-keeper to the Cambria Iron Works, Johnstown, Pa. " Although the books I am keeping are widely different from what I studied with you, yet that complete knowledge of the principles of the science which I obtained in your classes has enabled me to conduct every thing successfully." GEO. W. JACKSCN, Book-keeper to the N. W. Virginia R. R. Co., Grafton, Va. 393 I EECOMMENDATIONS. ^' We have used your Book-keeping for eight years. During this time I have examined every other work I could hear of, but have found none so judiciously arranged and so com- prehensive in all that relates to an accountant's education. This fact is also attested by numbers who had first studied other systems and afterward graduated with us." T. H. POLLOCK, Principal Pollock's Commercial College, Chestnut Street, Philadelphia, Pa. *'I do not hesitate to say that this is the most perfect work that I ever examined on the suDject. rp jj TUTTLE, Banker, Philadelphia. •' Four system of accounts is in every way thorough, without any superfluous matter. Since leaving your Institution I have met many of your pupils who express the same opi- °'''°- ^ JOHN S. WILSON, Of Messrs. Kilgore, Wilson & Co., Merchants, Philadelphia. " I believe your system to be the best now taught." B. McKENNA Of A. Diamond & Co., Booksellers and Stationers, Philadelphia. " Book-keeping, as elucidated by your system, is the most thorough and complete extant, bmce i studied with you, I have had seven years' experience in the practice of it." „ , , CHAKLES FITCH, Book-keeper to Messrs. Allibone & Jenks, Merchants, Philadelphia. " I believe your course of study to be far superior to that given in Eastern cities, in this branch of education." B. K. JAMISON Book-keeper to Messrs. R. J. Ross & Co., Bankers, Philadelphia. " My present business brings before me nearly every system of Book-keepin- in use, and It IS to your admirable system of accounts, and your masterly manner of teaching it that I owe my qualification for effecting the intricate settlements brought into my hands bv this b^^°««s. JAMES FULTON, Adjuster of Fire Insurances, 424 Chestnut Street, Philadelphia. " Since graduating in your College, I have settled several sets of complicated books 1 am now satisfied that I have mastered the science under your instruction, and recommend all who desire to become expert and scientific accountants, to go at once to your establish- ^^^^- J. A. STEELE, Book-keeper to Messrs. Sledge & Cress, Merchants, Chappell Hill, Texas. "I shall ever regard your instruction in Book-keeping, and your impressive and interest- ing lectures upon business, as my most valuable preparation for my present business Your system of accounts can never be excelled. It prepares one for every kind of business." ^ « R. J. BROWN, Of Brown & Brother, Druggists, Leavenworth City, Kansas. "I saj- from experience, that no one who graduates in your system of Book-keepincr as you teach it, will have any trouble in keeping any kind of books." S. M. RANKIN, Of Sample & Rankin, Bankers, Keokuk, Iowa. " I ^a/.f ? i^^ea that your course of instruction was so much a course of practice until I applied it m business. Your system of Book-keeping has business letters, accounts in- voices notes, acceptances, checks, &c., so thoroughly interwoven with the exercises in Jiook-keeping that I have met with nothing in business that your excellent course of train- mg has not fully prepared me for." JAMES H. SMITH Book-keeper for Smith & Baker, Wool Merchants, Newark,' Ohio 394 RECOMMENDATIONS. " I experienced no difficulty in applying your excellent instruction to immediate prac- tice, particularly your six-columned Journal, which proves to be a great economizer of time and labor, and a safeguard against error." M. S. STOKES, Book-keeper to Messrs. R. S. Hollins & Co., Merchants, Nashville, Tenn. " We take pleasure in testifying to the truth of Mr. Stokes' statements in regard to your system of Book-keeping, and fully concur with him in recommending it to the public as safe, accurate, and easily comprehended." R. S. HOLLINS & CO. " Your six-columned Journal is a model of accuracy and brevity, not likely soon to be improved upon ; and your method of rectifying deranged books is a most valuable ap- pendage to your system, that I have not seen nor heard of elsewhere." A. J. McClelland, Book-keeper, Cumberland Iron Works, Tenn. " I found no difficulty in applying your system to practice. Your six-column Journal saves a large amount of writing, and is, therefore, better adapted to my business than any other system of Book-keeping that I have seen." P. J. FLINDALL, Merchant, Trenton, Canacili West. " I am getting on finely with the books and the business of this firm. Success to your valuable Institution and to all who avail themselves of the advantages of your instruction from your system of Book-keeping — the best of all systems extant." R. C. ARMSTRONG, Book-keeper to Messrs. Hibbert & Son, Merchants, Louisville, Ky. " I advise all my friends to enter your well-organized Institution. It is certainly head- quarters for a thorough commercial education." WM. B. MORGAN, U. S. Treasury, Washington, D. C. " With no previous^ knowledge of accounts or business but what I learned in less than eight weeks under that able and systematic course of instruction for which your establish- ment has been so long and so justly celebrated, I have since kept books for several years in two mercantile establishments ; I have several times successfully rectified deranged books, changing the Single Entry Ledger into Double Entry, &c. Since 1861, my position in this Department required the greatest skill and accuracy in Book-keeping, the duties being more varied and chaligeable than in any other Bureau in the Department. Few of your graduates have had their proficiency more thoroughly tested than mine ; and I say to all desiring a thorough business education, by no means miss your College and your lectures upon business. I speak of their value from experience." THOS. GLEN JONES, U. S. Treasury Department, Washington, D. C. *' DuflF's Book-keeping is an excellent text-book for schools. Its teachings are very lucid, while it embraces many points of interest to be found in no other work on Book- keeping extant." J. R. WEBSTER, Teacher of Book-keeping, Central High School, Baltimore. " After a year's trial of it in my classes, I find the instruction conveyed by your Book- keeping is more complete and practical than any other I have used." JOHN SHEPHERD, Late Teacher of Book-keeping, Columbia College, N. Y. '' Having ascertained that DuflF's system of business accounts is the best in use, we have introduced it as a text-book in this college." JOHN K. STEWART, Late Professor of Book-keeping, Southern Commercial College, Richmond, Va. 395 EECOMl^IENDATIONS. " The crowning excellence of your system of Book-keeping is the judicious abridgment of all unnecessary details and repetitions, reducing the time of study to about half that re- quired in other Commercial Colleges. And my employer says he has never seen a person direct from College that went ahead with all their books so promptly and accurately as I ^ave." WILSON S. ROOSE, Book-keeper for Ignatz & Herzog, Merchants, Chicago, 111. " I haye had no difficulty with my books. I see now the great advantage and superiority of your well-arranged system of instruction in Book-keeping." WM. M. HORGAN, Book-keeper to J. B. Shay, Merchant, Chicago, 111. "I have already successfully tested the value of your admirable rules for settling old business books and opening new ones from them, and now readily subscribe to all that your former graduates have said of the superiority of your system of Book-keeping." D. C. BERGUNDTHAL, Book-keeper for S. W. Prather, Merchant, Wheeling, W. Va. use " I believe your system of accounts, and manner of teaching it, unequalled by any in R. T. KITTS, Book-keeper to McCullough, Morris & Co., Wholesale Grocers, Cincinnati, Ohio. "Without any previous knowledge of business books except a course of study from Duff's Book-keeping, I have kept the books of this extensive business for about three years. In my opinion, a more complete system of science and business practice has never' been printed." W. L. KEEPERS, Book-keeper, Rar -oon Iron Works, Greenupsburg, Ky. " Duff's system of accounts is the most perfect I have seen. It contains many improve- ments, abbreviations, and guards against errors which I have not seen nor heard of else- where." JAMES H. McCLOY, Book-keeper W. McClintock's Carpet Warehouse, Pittsburgh. " I fully concur in all that I have heard in commendation of your system of merchants' accounts. Many years' experience in keeping books in this and other houses, since I studied it, enables me to say that I consider it decidedly the best work of the kind in use." JAMES E. DICKSON, Book-keeper for Mitchell, Stevenson & Co., Iron Founders and Merchants, Pittsburgh. " This work comes to us with such high recommendations, from parties well able to judge of its merits, that we have no hesitation in cordially inviting attention to it as a work of great utility to merchants." — New York Albion. " Evidently the production of one thoroughly versed in the art and science of accounts, and artistic in his views and manner of elucidating them." — Journal of Commerce. " Numerous as are the publications already before the public on this important branch of mercantile education, we think, from the emphatic testimonials appended to the work, that Mr. Duff has succeeded in effecting a more ready and desirable method of teaching and reducing to practice this great essential in the conduct of mercantile affairs." — New York Evening Express^ October 30. 396 KECOMMENDATIONS. FROM THE PITTSBURGH GAZETTE. « Duff's BooK-KEEPiNG.-This has become the standard work upon commercial science^ No work yet published so thoroughly unfolds the whole subject^ ^L^^.J^ars .riva^ is the only work yet published in this country which exemplifies the merchants private Led-er,-an arrangement by which the results of the business cannot be known by the principal LedL ; f n arrangement which mercantile men, conductmg a large business, know theXe of N^ possible good can arise from a needless exposure of any man's business. "We have in a former number spoken of Mr. Duff's new and excellent treatise upon merchants' accounts, published by the Messrs. Harpers. Eve^ ^^/^^^^^^^ an indispensable addition to his library; and there are but few accountants so old, or so wise, as not to derive valuable information from it."-Eunt's Merchants' Magazine, A. 1. " A few weeks' study in Duff's College prepared me for ^^^^P^"?^^^^^^ "^*'°- sive firm I have seen no other system so complete." EDWIN Uh^DtAi, Sive nrm. x uavc d j Book-keeper to the Waterbury & Detroit Copper Co., Detroit, Mich. " DufF'8 Book-keeping is so much of a self-instructor, that I graduated in twenty-one days, and haye kept books ever since without difficulty." „^„,t ™; ^S,; n. y. " During mv former occupation of a teacher of Book-keeping, few persons took greater pains to compare different treatises upon this science, with a view to select the most thorough Ld comprehensive; and I state, without hesitation, that Duff's Book-keepmg will impart a more perfect and practical knowledge of the science, in less time with ess labor to the learner, and with less, trouble to the teacher, than any treatise that ^*'^,y«^^PP|*^^'* "P"" the subject.' General Book-keeper for B. A. Fahnestock's Son & Co., Wholesale Druggists, Pittsburgh. " My brother and a number of my young business friends having at different times been educated for business from Duff's Book-keeping, and they all havmg afterwards proved to be highly accomplished accountants and business ""f n- 1 tl^^'^f^"-* f ^^I '''Jf ^^^ ^'^""^ of eLLn is brought to full perfection in this work." ^^^^ J^^ES BOBB, ^_^^_^^_ Pittsburgh, Pa. " Duff's system of Merchants' Accounts exhibits in a clear, compact, and condensed form, without being superficial, all the essentials of a thorough ^^^^^^^^^^^^^'^^^^^^ Book-keeper Iron City National Bank, Pittsburgh. "I am recommending all my friends to your Commercial CoUe^. My cou^e of study from your excellent treftise on merchants' accounts, V^^V^^l^r^^or^^^^n,^^^^^^^ ^' this banking-house. Book-keeper to Austin, Elder & Fletcher, Bankers, Chambersburg, Pa. .' I prefer your Book-keeping and plan of instruction to any I I'^'^g'^^jj^VoN '""'=*" in thi/city. 'l have no trouble m keeping our book. _^^^^^ ,„ ^^H^'ILf i Co.Srchan^ Philadelphia. 397 RECOMMENDATIONS. " I now hold a clerkship of the first class in this deDartment T PRf^Am u « • -i Treasury Department, Washington, D.C. •moi ^ T ^r ^ ""^ n^ '°.*^^ counting-room of these extensive mills, for which I was fittpd ma nly by the excellent busmess education I received in your collegk I nrfuiry concur mall that your other numerous students have said of the superiority of your ystemT Book-keeping and business education/' ^ ]^^ p": HOOPER Clerk Salisbury Mills, Amesbury, Mass. "I have had charge of this bank as cashier since 1st October last and for mv abiHtv in discharge the duties of this responsible office you are entitled to the crpdi?^ TkIV months spent in your noble eduLtional establisLent st^dybg y^^^^^^ systm ^7 accounts has been of great value to me." ^ L. W VALE Cashier First National Bank, Mount Pleasait, Iowa. 398 ^ H^ DUFF'S MERCANTILE COLLEGE, No. 37 FIFTH STREET, PITTSBURGH, PA. POUNDED IN 1840, AND INCORPORATED BY THE LEGISLATURE OF PENNSYLVANIA WITH PERPETUAL CHARTER. THE BUSINESS MAWS FAVORITE COLLEGE FOR THE LAST TWENTY-SEVEN YEAES. It is believed to be the only institution of the kind in America founded and conducted by an experienced merchant. Our course of original lectures upon the details of -^^-.-.•■■#«#« ^ ACTUAL BUSINESS are to one going into business on his own account, worth more than his tuition fee, and may save him thousands of dollars in experimental know- ledge, that will take him years to acquire in business. In these lectures we have no competitors, as none but an experienced merchant can impart the practical information which they contain. It will also be found that our system of accounts is, with one exception, the only modern one m use, in- cluding comprehensive exercises in BUSINESS WITH FOREIGN COUNTlRIES. Our system of instruction, thus extended into fields of business wholly omitted by others, enables us to present our students with a valuable col- lection of .^ .—.—-. «».»« BUSINESS FORMS in every department of inland and fbreign business. Regular lectures upon the are delivered to the classes. One of the most accomplished and ex- perienced teachers of Business and Ornamental PENMANSHIP is in constant attendance on the classes. Jfbr Terms and all other particulars, send for our Tamphlet Circular, pp^7S. ADDRESS P. DUFF & SON, 3gg PITTSBURGH. PA. EXTRACTS FROM THE CHARTER OF DUFF'S MERCANTILE COLLEGE. The preamble of the Act, after reciting the circumstances connected with the establishment of the Institution by the proprietor, in 1840, proceeds :— "And having, through his professional labors and publications upon commercial science, greatly improved and enlarged the facilities for obtaining a thorough mercantile education, in order to give increased efficiency and permanence to his laudable efforts in promoting the cause of Commercial education, and thereby advancing the ends and purposes of commerce, it is hereby proposed that his Academy be incorporated. Therefore, " SECTION 1. ^e it enacted by the Senate and Mouse of Representatives of the Commonwealth of Pennsylvania, in Gene?'al Assembly met, and it is hereby enacted by the authority of the same, That there be, and hereby is erected and estab- lished, in the County of Allegheny, in this Commonwealth, a College for the education of merchants, and others, in the various branches of literature and science immediately con- nected with a thorough mercantile education, by the name, style, and title of 'DUFF'S MERCANTILE COLLEGE OF PENNSYLVANIA,' to be permanently located in the city of Pittsburgh, in said county of Allegheny." (SECTIONS 2, 3, 4, and 5 relate to the government of the College,— its liabilities, privi- leges, &c.) " SECTION 6. That the President, Professors, and Tutors for the time being, of said College, shall constitute the Faculty of said College, and shall have power to grant and con- firm such degrees in the sciences taught in the College, to such students and graduates of the College, and others, when, by their proficiency and learning, professional eminence, or other meritorious distinction, they shall become entitled thereto, as they may see fit, and to grant graduates, or persons on whom such degrees may be conferred, diplomas, or certificates. " SECTION 7. No religious sentiments shall be acwounted a disability to hinder or debar students from entering the College, prosecuting their studies, and receiving diplomas or cer- tificates, or in any manner to abridge their privileges or immunities as students in any de- partment of said College." (SECTIONS 8, 9, and 10 relate to the By-Laws, Conveyances, &c.) (Signed) JOHN CESSNA, Speaker of the Souse of Representatives, B£N«r. MATTHEWS, Speaker of the Senate, Approved the eleventh day of March, one thousand eight hundred and fifty-one. WM. F. JOHNSTON, Governor of Pennsylvania, Ikckctaky's SrncE. Pennsylvania^ ss. : f Ao JutXt^^ (^tviii^f that the foregoing is a true and correct copy of the original Act of the General Assembly, entitled, "An Act to Incorporate Duff's Mercantile College of Pennsyl- Taaia/' as the same remains on file in this office. Witness my hand and the seal of the said office at Harrisburg, this 25th day of April, 1851. A« L, BTJSSELL, Secretary of the Commonwealth, 400 L.S. COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at the expiration of a definite period after the date of borrowing, as provided by the library rules or by special arrangement with the Librarian in charge. DATE BORROWED DATE DUE DATE BORROWED DATE DUE « - • t 1 ■ • C28(84a)MSO 1 / \ D420 D873 Duff Mercantile bank and railroad bookkeeping. 1870. COLUMBIA UNIVERS TY 0041443900 LIBRARIES ^ DEC 2 6 1945 END OF TITLE