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Author: 
 
 Williams, Louis Lafayette 
 
 Title: 
 
 Theoretical and practical 
 book-keeping 
 
 Place: 
 
 [Rochester] 
 
 Date: 
 
 [1884] 
 
MASTER NEGATIVE # 
 
 COLUMBIA UNIVERSITY LIBRARIES 
 PRESERVATION DIVISION 
 
 BIBLIOGRAPHIC MICROFORM TARGET 
 
 ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD 
 
 imvtm\Uf>n3 
 ' 420 ' 
 
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 (Yfilliams, Louis Lafayette 3 1841-1919. 
 
 Theoretical and practical book-keeping, for uso 
 in business colleges and in common schools, high 
 schools and academies, and for self-instruction. 
 (Rochester, N. Y. , Andrewsj 1884. 
 
 160 p. forms. 30^^^. 
 
 On cover: Stewart & Hammond's business college 
 book-keeping, Trenton, N. J. 
 
 Edition of 1890 has title: The new theoretical 
 and practical book-keeping. 
 
 "Entered ... by V^lliam & Rogers, in the 
 office of the f^ Librarian of Congress." 
 
 RESTRICTIONS ON USE: 
 
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 BUSINESS COLLECiE 
 BOOK-KEEPING 
 
 TRENTON, - - N.J 
 
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' M il i l l - 
 
 THEORETICAL 
 
 AND 
 
 PRACTICAL 
 
 BOOK-KEEPING, 
 
 FOR USE IN 
 
 BUSINESS COLLEGES, 
 
 4 « c 
 
 t » t 
 
 AND IN 
 
 • • • • 
 
 J ' -■ • . 
 
 « « to a • 
 
 COMMON SCHOOLS, HIGH = SCHOOLS AND ACADEMIES, 
 
 AND FOR 
 
 Self-Instruction. 
 
 ) 
 
 1884. 
 
i 
 
 '^ 
 
 
 3^ -•i'6 4 /Z 
 
 
 
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 Entered according to Act of Congress, In the year 1«B, 
 
 By WILLIAMS & ROGERS, 
 
 In the office of the Ljbrjwiap of Cpngresa. at.Washlngton, D. fJ 
 
 » * t ■ t 
 
 at » ■ « • — ' ■ ■ 
 
 -I — 
 
 t • « » f 
 
 
 
 
 E. R. Androwa, Printer and n»M)kbinder, Rochester, N. V. 
 
 
 PREFACE. 
 
 VE do not claim that we have enunciated any new principles in the course of study in the science and practice 
 of book-keeping contained in this work. We do claim, however, that we have arranged those abready 
 established in such a manner, and accompanied that arrangement with such clear and complete explana- 
 tions, as will insure the pupil a knowledge of the subject, practically independent of the instructor. 
 
 While we have studiously avoided unnecessary theorizing, we have endeavored to give a competent reason for 
 every step to be taken, believing that the pupil, if he have the ability to master the subject under any circum- 
 stances, wiQ be able to secure, from the reasons and illustrations given, a thorough knowledge of the science of 
 accounts. 
 
 We desire that the student's mind shall be constantly directed to the matter in hand— that of learning practical 
 book-keeping— and not become confused by abstruse theories that can be of no possible use to him in pursuing 
 the course of study, nor of the least value to him in after life. 
 
 The claim of this work to superiority over all other publications of its character is based, particularly, upon 
 the manner in which the transactions selected as a basis of the student's work have been graded, the fullness of 
 explanation of every step to be taken, the placing of such explanations in immediate proximity to the transactions, 
 the system of references to the illustrations adopted, the encouragement to progress in penmanship afforded by 
 the engraved pages, the ability of the pupil to rely upon himself, and the material lessening of the labor of the 
 
 ^^^"'•- THE AUTHORS. 
 
DOUBLE ENTRY BOOK-KEEPING. 
 
 « • 
 
 I 
 4 
 
 » Book-keeping is a record of business transactions. 'The object of such record is to enable the 
 proprietor to determine, at any time, the true condition of the business. 
 
 » There are two methods of book-keeping in general use, Hermed Single Entry and Double Entry. 
 The following explanations refer to the Double Entry method. 
 
 * The principal books used are the Day Book, Journal and Ledger. 
 
 • The Day Book, or Blotter as it is sometimes called, contains a statement of the business transac- 
 tions in detail. ' The record should be made as soon as the transaction takes place, " to guard against 
 errors which might be occasioned by delay in making the entry. 
 
 •The Journal contains the Debits and Credits, taken from the Day Book, and arranged in a form 
 convenient for transferring to the Ledger. '' Deciding upon and arranging the debits and credits in 
 the Journal is called Journalizing. " In every journal entry the debits and credits must be equal. 
 "The Day Book and Journal may be combined, "by writing the particulars regarding the transactions 
 in the Journal, in connection with the journal entry. 
 
 "The Ledger contains the final results, "which are exhibited by collecting all debits and credits 
 having the same name under one heading. " Such a collection of debits and credits is called an 
 Account. "An account has two sides, "the left side being called the Debit and "the right side the 
 Credit. * Transferring the debits and credits from the Journal to the Ledger is called Posting. 
 
 «The terms Debit or Debtor, and Credit or Creditor, may be abbreviated: as, Dr. and Cr. 
 
 Other books, as the Cash Book, Bill Book, Order Book, Invoice Book, Sales Book, etc., will be 
 explained hereafter. 
 
 « In Double Entry book-keeping there are three kinds of accounts aside from an account with the 
 Proprietor: accounts with Persons, accounts with Property, and accounts representing Allowances 
 made by us, or to us, for Interest, Discount, Exchange, Premium, Storage, Commission, Expenses, 
 etc., by which we sustain Losses or realize Gains. 
 
 Note.— While it will be necessary, in due time, for the Student to become thoroughly familiar with the principles 
 involved in the rules given on the "following pages, he can do so much more easily and quickly, and with a better 
 understanding of their application, if he learn them as he has occasion to apply them, than he can by commuting 
 
 them to memory in advance. 
 
 The Student, therefore, after reading carefully the following rules, examples and explanations, may proceed with 
 the work upon his books, as instructed in the foot notes from page to page. Each step is so carefully explained, and 
 the references so fully given, that he should have little difficulty in performing the work correctly and understandingly. 
 
 The debits and credits in any business transaction may be determined by the following 
 
6 
 
 TirV.onKTTrAL and PItArTK'AL BOOK-KEEPItra. 
 
 GENERAL RULES FOR JOURNALIZING. 
 
 4 
 
 Tkrsoxs AKK ])KHIT' ' 
 
 ^Whon tlioy get into our (l(>l)t, and 
 ' Wlion we get out of their debt. 
 
 ** 1*K01'EUTY IS DkHITKI), / 
 
 TTiider an apj)ro))riato title, as Afdsc., }lrn\ J'.state, 
 (Jasli, eU'.y AvheJi it comes into oui jiossession. 
 
 "Allowances ark Dkritkd, 
 Under appropriate titles, as Interest, Exchange, 
 
 " Persons are (Credited, 
 •Wlieu we get into tlieir debt, and 
 ' Wlien tlu'V get out of our de])t. 
 
 * 1*R01'KRTY IS (/RKDITKl), 
 
 Under its approj>riate titU', wlien it go(V8 ont of 
 our ]>osses8ion. 
 
 "Allowances ark f'RKDiTEi), 
 Under tlieir a])}»ro])riate titles, wlien made to us. 
 
 Commission, etc., wlien made by us. 
 
 The hree kinds of accounts mentioned above are divided into "two general classes, one class 
 showing Gains and Losses, and the other Resources and Liabilities. 
 
 *• Losses. 
 
 An account exhibits a Loss, if the thing it rep- 
 resents has cost us more than it has produced. 
 
 " Resources. 
 An account exhibits a Resource, if it represents 
 
 " Gains. 
 An account exhibits a Gain, if the thing it rep- 
 resents has produced us more than it has cost. 
 
 " Liabilities. 
 An account exhibits a Liability, if it represents 
 a debt owing by us. 
 
 property on hand, or a debt owing to us. 
 
 ** The excess in an account showing either a Resource or a Loss will be on the debit side, and " the 
 excess in an account showing either a Liability or a Gain will be on the credit side. 
 
 SPECIAL RULES FOR JOURNALIZING. 
 
 The following additional rules, definitions and explanations are given to supplement and empha- 
 size the foregoing general rules, as a further aid to the student in the work of journalizing. 
 
 THE PROPRIETOR. 
 
 Dr. 
 
 Cr. 
 
 " The Proprietor is credited for the amount of 
 his investment on ccmimencing business, for all 
 subsequent investments, and for his net gain. 
 
 "•The Proprietor is debited for his liabilities 
 assumed by the business, for all amounts drawn 
 by him from the business for his private use, and 
 for his net loss. 
 
 "The title "Stock" is sometimes used in place of the proprietor's name. The explanation for a 
 co-partnership will be given hereafter. 
 
 CASH. 
 
 Dr. 
 
 " Cash is debited when it is received. 
 
 Cr. 
 
 M 
 
 Cash is credited when it is paid out. 
 
 "Under the title "Cash" we include Currency, Bank Checks, Postal Orders, Sight Drafts, and 
 usually all kinds of paper payable on demand. " The Dr. side of cash account will always be greater, 
 when there is any difference, « because we cannot pay out more than we have received, ** and the 
 difference will show the cash on hand, « which difference is a Resource. *« When all the cash has been 
 paid out, the account will balance. » 
 
 MERCHANDISE 
 Dr. Cr. 
 
 "Mdse. is debited when it is bought, for its 
 cost. 
 
 " Mdse. is credited when it is sold, for its pro- 
 ceeds. 
 
 *» Under the title " Mdse." we generally include all goods the proprietor is dealing in as a business. 
 « Sometimes, however, for the purpose of exhibiting results in detail, separate accounts are opened, 
 as "Flour," "Pork," "Beef," etc., instead of including all under the general heading "Mdse. 
 " Since the Dr. side of Mdse. account shows the cost of the goods, and the Cr. side the proceeds, the 
 
 TUKOIJETIOAL AND PllACTTCAL ]iO(»K-KEEPIX«. • 
 
 difference will show the gain or loss, providing the goods have all been sold. " If there is an Inventory 
 (goods unsold), its value must first be added to the proceeds from sales, and the difference ^^^n tlu-n 
 show the gain or loss. "The above rule and explanations will also apply to <»ther i)roiK'rty, as Real 
 Estate (houses and hinds). Bank Stock, Railroad Stock, etc., excepting that an account si.oul.l Uv 
 opened with each, under its apju'opriato title. 
 
 EXPENSE. 
 
 Dr. 
 
 ** Expense is debited with any outlay for carry- 
 ing on the business. 
 
 Cr. 
 
 ** Expense is credited when anything of value 
 is disposed of, which was previously debited to 
 Expense. 
 
 « Under the title "Expense" we generally include such items as Rent, Salaries, Office Books, 
 Office Furniture, Fuel, Light, etc. "If, as in the case of Mdse., it is desired to show results in detail 
 separate accounts may be opened with "Rent," "Salaries," "Office Furniture," etc., instead of 
 including all these items under the general heading "Expense." "Expense account usually shows 
 
 a loss. 
 
 BILLS RECEIVABLE. 
 Dr. C-r. 
 
 "Bills Receivable is debited for the written 
 promises to pay, of other parties, when received. 
 
 «° Bills Receivable is credited for the written 
 promises to pay, of other parties, when paid or 
 otherwise disposed of. 
 
 ••Under the title "Bills Receivable" we include, generally. Notes and Time Drafts. •'The Dr. 
 side of the account will always be larger, when there is any difference, «» because we cannot- dispose of 
 a greater amount than we have received. •* The difference in the account will show the Bills Receiv- 
 able on hand, •* which difference is a Resource. •• The account will balance when the Bills Receivable 
 have all been disposed of, because such bills are always debited and credited at their face value. 
 
 BILLS PAYABLE. 
 
 Dr. 
 
 •^ Bills Payable is debited for our written prom- 
 ises to pay, when redeemed (that is paid). 
 
 Cr. 
 
 •« Bills Payable is credited for our written prom- 
 ises to pay, when issued (that is given). 
 
 » Under the title " Bills Payable " we include, generally, Notes and Accepted Time Drafts. ™ The 
 Cr. side of the account will always be larger, when there is any difference, "because we cannot redeem 
 a greater amount than we have issued. " The difference in the account will show the Bills Payable 
 outstanding, " which difference is a Liability. "The account will balance when all the Bills Payable 
 have been redeemed, because such bills are always debited and credited at their face value. 
 
 INTEREST AND DISCOUNT. 
 
 Dr. 
 
 "Interest and Discount are debited when allowed 
 to others. 
 
 Cr. 
 
 " Interest and Discount are credited when al- 
 lowed to us. 
 
 " Interest is the compensation allowed for the use of money. 
 
 ™ Discount is the allowance made for the payment of a debt before it is due. 
 
 ^» When the Dr. side of Interest and Discount account is the greater, the difference shows a loss; 
 when the Cr. side is greater, the difference shows a gain. ^ The above rule will apply also to such 
 accounts as Exchange, Premium, Collection, Storage, Commission, etc. 
 
 Additional rules and explanations will be given when required, in connection with the work to be 
 performed. 
 
 EXAMPLES IN JOURNALIZING. 
 
 Note.— The following twenty-nine Examples, representing a series of business transactions, are desi<jned to illus- 
 trate the application of the principles embodied in the foregoing General and Special Rules, and to serve lis references 
 to aid the student in the work of journalizing. These examples are not to be written up by the student, but should be 
 carefully studied as follows: He should first read the Day Book Record for the transaction, then observe how it is 
 Journalized, and also study the explanations which follow, consulting the rules to which references are made. After 
 reading all of the examples, the student may commence the work upon his books, as instructed in note on page 12. 
 
!► 
 
 i 
 I 
 
 I 
 
 8 
 
 THEORETK'AL AND PRACIIOAL BOOKKEEPING. 
 
 EXAMPLE No. 1. 
 
 DAY BOOK RECORD. 
 
 ITBMS. TOTAL. 
 
 JOURNAL ENTRY FOR SAME. 
 
 DR. 
 
 CR. 
 
 J. T. Sniitli commenced 
 business this day, and 
 invested Cash, 
 
 1 
 
 j 
 
 
 5000 
 
 
 
 
 Casli, Dr. 
 
 To J. T. Smitlj, Cr. 
 
 5000 
 
 5000 
 
 Why is Cash Dr. in above journal entry? Because Cash is received (see 30, page 6). 
 Why is J. T. Smith Cr. ? Because the proprietor should have credit for his investment (see 37, 
 page 6). 
 
 EXAMPLE No. 2. 
 
 DAY BOOK RECORD. JOURNAL ENTRY FOR SAME. 
 
 J. T. Smith owes C. B. 
 Hall, on account, which 
 is to be paid from the 
 business, 
 
 500 
 
 J. T. Smith, Dr. 
 
 To C. B. Hall, Cr. 
 
 500 
 
 500 
 
 Why is Smith Dr.? Because the proprietor is Dr. for liabilities assumed by the business (see 36, 
 page 6). 
 
 Why is Hall Cr. ? Because the proprietor is in his debt (see 24, page 6). 
 
 EXAMPLE No. 3. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Bought of J. E. Morse, 
 
 for Cash, 
 200 bbls. Flour, at 6.00, 
 
 
 
 1200 
 
 
 ! 
 
 
 Mdse.. Dr. 
 
 To Cash, Cr. 
 
 1200 
 
 1200 
 
 Why is Mdse. Dr. ? Because it is bought (see 47, page 6). Why is Cash Cr. ? Because it is paid 
 out (see 40, page 6). 
 
 EXAMPLE No. 4. 
 
 DAY BOOK RECORD. JOURNAL ENTRY FOR SAME. 
 
 Sold Geo. Andrews, for 
 
 Cash, 
 50 bbls. Flour, at 6.75, 
 
 337 
 
 50 
 
 Cash, Dr. 
 
 To Mdse., Cr. 
 
 337 
 
 50 
 
 337 
 
 50 
 
 Why is Cash Dr. ? Because it is received (see 39, page 6). Why is Mdse. Cr. ? Because it i^ 
 sold (see 48, page 6). 
 
 EXAMPLE No. 5. 
 
 DAY BOOK RECORD. JOURNAL ENTRY FOR SAME. 
 
 Bought of E. N. French, 
 
 on account, 
 100 bbls. Beef, at 14.50, 
 
 1450 
 
 Mdse., Dr. 
 
 To E. N. French, Cr. 
 
 1450 
 
 1450 
 
 Mdse. is Dr. because it is bought (see 47, page 6). Why is E. N. French Cr. ? Because we have 
 bought property of him on account ('*on account" means that we do not pay him for it at time of 
 purchase), and we therefore get into his debt (see 24, page 6). 
 
 EXAMPLE No. 6. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Sold Reed & Mills, on 
 
 account, 
 50 bl)ls. Flour, at 7.00, 
 
 350 
 
 50 
 
 Beef, 
 
 16.00, i 800 
 
 1150 
 
 Reed & Mills, Dr. 
 
 To Mdse., Cr. 
 
 1150 
 
 1150 
 
 Why are Reed & Mills Dr. ? Because they have bought property of us on account (that is, they 
 do not pay us for it at the time of purchase), and therefore get into our debt (see 23, page 6). Why 
 is Mdse. Cr. ? Because it is sold (see 48, page 6). Since Flour and Beef were both journalized as 
 Mdse. when bought, we now credit Mdse. in one amount for the sale. 
 
 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 EXAMPLE No. 7. 
 
 9 
 
 DAY BOOK RECORD. 
 
 ITEMS. TOTAL,. 
 
 JOURNAL ENTRY FOR SAME. 
 
 I>R. 
 
 OR. 
 
 Paid rent of store in 
 Cash, 
 
 50 
 
 Expense, Dr. 
 
 To Cash, Cr. 
 
 50 
 
 50 
 
 Why is Expense Dr.? Because rent is an item of cost in carrying on the business (see 54, page 7). 
 Cash is Cr. because it is paid out (40, page 6). 
 
 EXAMPLE No. 8. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Paid E. N. French, cash 
 to apply on account, 
 
 450 
 
 E. N. French, Dr. 
 
 To Cash, Cr. 
 
 450 
 
 450 
 
 Why is E. N. French Dr. ? Because we get out of his debt, to the extent of 1450 (see 23, page 6). 
 Since we gave him Cr. Jan. 5 (see Ex. No. 5) for 11450, we must now make him Dr. 1^450, the amount 
 we pay him, in order that his account may show the exact amount we still owe him. Cash is Cr. 
 because it is paid out (40, page 6). 
 
 EXAMPLE No. 9. 
 
 DAY BOOK RECORD. JOURNAL ENTRY FOR SAME. 
 
 Received cash of Reed 
 & Mills, to apply on 
 account. 
 
 200 
 
 Cash, Dr. 
 
 To Reed & Mills, Cr. 
 
 200' 
 
 200 
 
 Cash is Dr. because it is received (39, page 6). Reed & Mills are Cr. because they get out of our 
 debt to the extent of $200 (24, page 6). Since we made them Dr. (see Ex. No. 6) for %\ 150, we must 
 now give them Cr. $200, in order that their account may show the exact amount they still owe us. 
 
 EXAMPLE No. 10. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Bought of E. D. Harris, 
 100 bbls. Pork,at 12.00, 
 
 Gave my note at 10 days 
 in payment. 
 
 1200 
 
 Mdse., Dr. 
 
 To Bills Pav., Cr. 
 
 1200 
 
 1200 
 
 Mdse. is Dr. because it is bought (47, page 6). Bills Payable is Cr. because our written promise 
 to pay has been issued (see 68, page 7). 
 
 EXAMPLE No. 11. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Received of Reed i& Mills, 
 their note at ten days, 
 to apply on account. 
 
 i 
 
 
 600 
 
 
 
 
 Bills Rec'v, Dr. 
 
 To Reed & Mills, Cr. 
 
 600 
 
 600 
 
 Bills Receivable is Dr. because the written promise of another party has been received (59, page 
 7). Reed & Mills are Cr. because they get out of our debt to the extent of 1600, our claim for that 
 sum now being in the form of Bills Receivable (24, page 6). 
 
 EXAMPLE No. 12. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Gave E. N. French my 
 note at ten days, with 
 interest, to apply on 
 account. 
 
 500 
 
 E. N. French, Dr. 
 
 To Bills Pay., Cr. 
 
 5001 
 
 500 
 
 E. N. French is Dr. because we get out of his debt to the extent of $500 (23, page 6), our liability 
 now being in the form of Bills Payable for that amount. Bills Payable is Cr. because our written 
 promise to pay has been issued (68, page 7). 
 
 i« 
 
 f 
 
i 
 
 .i 
 
 ' 
 
 10 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 EXAMPLE No. 13. 
 
 DAY BOOK RECORD. 
 
 Sold Chas. Iljinilin, 
 50 l)bl8. Flour, at 7.00, 
 50 " Pork, 14.00, 
 
 Rec'd payment by his 
 note at ten days, with 
 interest. 
 
 ITEMS. 
 
 TOTAL. 
 
 
 
 350 
 
 
 
 
 
 
 700 
 
 
 1050 
 
 
 
 
 JOURNAL ENTRY FOR SAME. 
 
 PR. 
 
 CR. 
 
 Hills Rec'v, Dr. 
 
 To Mdse., Cr. 
 
 1050 
 
 1050 
 
 Bills Receivable is Dr. because the written ])roniise of another party is received (59, page 7). 
 Mdse. is Cr. because it is sold (48, page 6). 
 
 EXAMPLE No. 14. 
 
 DAY BOOK RECORD. .TOITRNAL ENTRY FOR SAME. 
 
 Sold F. E. Clark, 
 
 25 bbls. Beef, at Kl.OO, 
 Rec'd in payment, Cash, 
 Balance on account. 
 
 
 
 400 
 
 
 5 . 
 
 
 150 
 250 
 
 
 
 
 CO 
 
 
 Cash, Dr. 
 
 F. E. Clark, Dr. 
 
 To Mdse., Cr. 
 
 150 
 250 
 
 400 
 
 Cash is Dr. because received (39, page 6). F. E. Clark is Dr. because he gets into our debt (23, 
 page 6). Mdse. is Cr. because sold (48, page 0). The above form is equivalent to making Clark Dr. 
 400 and Mdse. Cr. 400 in one entry, and then making a second entry, Cash Dr. 150, Clark Cr. 150. 
 The above form saves one entry. 
 
 EXAMPLE No. 15. 
 
 DAY BOOK RECORD. JOCRNAL ENTRY FOR SAME. 
 
 Bought of Milo Sage, 
 
 300bbls. Flour, at(J.50, 
 Paid him Cash, 
 Balance on account, 
 
 950' 
 lOOOl 
 
 1950 
 
 c > 
 
 c o 
 
 Mdse., Dr. 
 
 To Cash, Cr. 
 '' M. Sage, Cr. 
 
 1950 
 
 950 
 1000 
 
 Mdse. is Dr. because bought (47, page G). Cash is Cr. because paid out (40, page G). Sage is Cr. 
 because we get into his debt (24, page G). This form saves one entry, as explained in the preceding 
 example. 
 
 EXAMPLE No. 16. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR S.A.ME. 
 
 Bought of 0. F. Wil- 
 son, 
 House and Lot, for cash. 
 
 1500 
 
 Real Estate, Dr. 
 
 To Cash, Cr. 
 
 1500 
 
 1500 
 
 Real Estate is Dr. because bought (see 53, page 7). Cash is Cr. because paid out (40, page 6). 
 
 EXAMPLE No. 17. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Bought of W. E. Holt, 
 200 bbls. Beef, at 13.00, 
 
 Paid him Cash, 
 
 My note at 15 days for 
 balance. 
 
 
 
 2G00 
 
 
 
 
 600 
 
 
 
 
 
 
 2000 
 
 
 
 t 
 1 
 
 
 
 Mdse., Dr. 
 
 To Cash, Cr. 
 '' Bills Pav., Cr. 
 
 •2600 
 
 GOO 
 2000 
 
 Mdse. is Dr. because bought (47, page 6). Cash is Cr. because paid out (40, page 6). Bills Payable 
 is Cr. because we issue our written i)romi8e to pay (08, page 7). 
 
 EXAMPLE No. 18. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Bought Safe for Office, 
 and paid for same in 
 Cash, 
 
 200 
 
 Expense, Dr. 
 
 To Cash, Cr. 
 
 200 
 
 200 
 
 Ex})ense is Dr. because the Safe is an item of cost in carrying on the business (54, page 7). Cash 
 
 is Cr. because paid out (40, page 6). 
 
 Note. — In cases like the above where part jKiyment is made at the lime of purchase, the transaction may, if <le.sirp<l, 
 bo journalized as follows: debit or credit the person, as tlie case may be. with the /'/// amount In one entry, and in 
 auotbcr entry credit or debit him wifli the payment. 
 
 * 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 11 
 
 EXAMPLE No. 19. 
 
 DAY BOOK RECORD. 
 
 Sold A. D. Larkin, 
 
 50 bbls. Flour, at 7.50, 
 
 25 '' Beef, IG.OO, 
 
 Rec'd in payment. Cash, 
 
 His note at two months 
 
 for balance. 
 
 ITEMS. 
 
 TOTAIi. 
 
 
 
 375 
 
 
 
 
 
 
 400 
 
 
 775 
 
 
 
 
 275 
 
 
 
 
 
 
 500 
 
 
 
 
 
 
 JOURNAL ENTRY FOR SAME. 
 
 DR. 
 
 CB. 
 
 Cash, Dr. 
 Bills Rec'v, Dr. 
 
 To Mdse., Cr. 
 
 275 
 500 
 
 775 
 
 Cash is Dr. because received (39, page 6). Bills Receivable is Dr. because received (59, page 7). 
 Mdse. is Cr. because sold (48, page 6). 
 
 EXAMPLE No. 20. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 J. T. Smith drew cash 
 from the business for 
 private use. 
 
 350 
 
 J. T. Smith, Dr. 
 
 To Cash, Cr. 
 
 350 
 
 350 
 
 Smith is Dr. because he is the proprietor and draws this money for private use (3G, page G). Cash 
 is Cr. because paid out (40, page G). 
 
 EXAMPLE No. 21 
 
 DAY BOOK RECORD. 
 
 .JOURNAL ENTRY FOR SAME. 
 
 Rec'd of F. E. Clark, to 
 
 balance account, 
 Cash, 
 His note at 45 days for 
 
 100 
 150 
 
 
 1 
 
 250 
 
 
 1 
 
 
 Cash, Dr. 
 Bills Rec'v, Dr. 
 
 To F. E. Clark, Cr. 
 
 100 
 150 
 
 250 
 
 Cash is Dr. because received (39, page G). Bills Receivable is Dr. because received (59, page 7). 
 Clark is Cr. because he gets out af our debt (24, page G). 
 
 EXAMPLE No. 22. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Paid M. Sage, to apply 
 on account, Cash, 
 
 My note at 30 days, with 
 interest. 
 
 250 
 500 
 
 750 
 
 M. Sage, Dr. 
 
 To Cash, Cr. 
 " Bills Pay., Cr. 
 
 750 
 
 250l 
 5(K) 
 
 Sage is Dr. because we get out of his debt, in part (23, page 6). Cash is Cr. because paid out (40, 
 page 6). Bills Payable is Cr. because we issue our written promise to pay (G8, page 7). 
 
 EXAMPLE No. 23. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Paid my note of the 10th 
 inst. , in favor of E. D. 
 Harris, in Cash, 
 
 1200 
 
 Bills Pay., Dr. 
 
 To Cash, Cr. 
 
 1200 
 
 1200 
 
 Bills Payable is Dr. because our written promise to pay is redeemed (67, page 7). Cash is Cr. 
 because paid out (40, page 6). 
 
 EXAMPLE No. 24. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Rec'd Cash of Reed & 
 Mills, for their note of 
 11th inst., due to-day. 
 
 GOO 
 
 Cash, Dr. 
 
 To Bills Rec'v, Cr. 
 
 6(X) 
 
 600 
 
 Cash is Dr. because received (39, page G). Bids Receivable is Cr. because the written promise to 
 pay of another is disposed of (GO, page 7). 
 
 t^ 
 
li 
 
 THKORETICAL ANI> PKAl^'ICAL HOOK KKEIMNO. 
 
 EXAMPLE No. 25. 
 
 PAY HOOK UKrORl). 
 
 Paid iuyn(>tiM>f 1 x'tli inst. 
 in favor of l''ri>iu'h. duo 
 to-day. witli interest, 
 in Catsh, 
 
 Face of note. 
 
 Interest to date. 13 davs. 
 
 rrnMR. 
 
 •nVTAI,. 
 
 
 
 
 
 501 
 
 O.s 
 
 
 
 500 
 
 
 
 
 
 
 1 
 
 i 
 
 08 
 
 
 
 
 
 .lOl'KNAL ENTKY FOR SAME. 
 
 DR. 
 
 CR. 
 
 Hills IXv.. I)r, 
 Interest, |)r. 
 
 To Casli, Cr. 
 
 500 
 1 
 
 08 
 
 601 
 
 08 
 
 Bills Payable is Pr. beeause our written promise is redeemed (07. pa^o 7). Interest is Dr. because 
 it is allowed to others (T5. page T). Cash is Cr. beeause paid out (40, page (i\ 
 
 EXAMPLE No. 26. 
 
 DAY HOOK KKrOKD. 
 
 Kee\l eash of ('has. Ham- 
 lin, for his notei>f I'Mh 
 inst.. due to-day, with 
 interest, 
 
 Faee of note. 
 
 Interest to date, 13 tlays, 
 
 
 
 105-.> 
 
 •28 
 
 
 
 1050 
 
 
 
 
 
 
 . ^' 
 
 28 
 
 
 
 
 
 .TOURNAI. ENTRY FOR SAME. 
 
 Casli, Dr. 105*2 
 
 To Bills Uec'v, Cr. 
 " Interest, Cr. 
 
 1050 
 
 28 
 
 Cash is Dr. beeause received (39. page (i). Bill Receivable is Cr. because disposed ot (GO, page 7). 
 Interest is Cr. beeause it is allowed to us (7<>, page 7). 
 
 EXAMPLE No. 27. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Prepaid my note of ITth 
 inst., in favor of W. E. 
 Holt, 
 Discount off, 8 days. 
 Paid balance in Cash, 
 
 2 67 
 1907 33 
 
 2000 
 
 Bills Pay., Dr. 
 
 To Discount, Cr. 
 '* Cash, Cr. 
 
 2000 
 
 2 
 
 1997 
 
 67 
 33 
 
 Bills Payable is Dr. because our written promise has been redeemed (r,7, page 7). Discount is Cr. 
 beeause it is allowed to us (TO, page 7). Cash is Cr. because paid out (40, page 6). 
 
 EXAMPLE No. 28. 
 
 DAY BOOK RECORD. 
 
 .TOURNAL ENTRY FOR SAME. 
 
 A. D. Larkin prepaid his 
 note of 19th inst.. 
 
 Discount off, 1 mo. 22 
 days. 
 
 Ree'd balance in Cash. 
 
 4 
 495 
 
 33 
 67 
 
 500 
 
 Discount, Dr, 
 Cash. Dr. 
 
 To Bills Rec'v, Cr. 
 
 4 
 
 33 
 
 
 495 
 
 67 
 
 500 
 
 Discount is Dr. because it is allowed to others (75, page 7). Cash is Dr. because received (39, 
 page 6). Bills Receivable is Cr. because the written promise to pay of another party is disposed of 
 (60, page 7). 
 
 EXAMPLE No. 29. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Paid Clerks' Salaries to'! 
 date, in Cash, jj 
 
 100 
 
 Expense, Dr. II 100 
 
 To Cash, Cr. ' 
 
 100 
 
 Expense is Dr. because Salaries is an item of cost in carrying on the business (54, i)age 7). Cash 
 is Cr. because paid out (40, page 6). 
 
 Note to Student.— Having carefully read the preceding pages, you may now begin the work upon your books. 
 First copy into your Day Book the business transactions for January, as given on the following pages. As you are 
 supposed to be the proprietor of the business, you will write your name in the blank lines in the first two transactions 
 on the next page. 
 
 In copying you may omit from your Day Book the figures in the column at the left of the transactions, as they are 
 simply reference figures, to assist in journalizing. The explanations for their use will be given hereafter. You should 
 make your pages as nearly as possible like the following, in substance, penmanship and arrangement. Read foot notes 
 carefully, as all are important to an understanding of the work. 
 
 TIIKOHKTKAL AND PKACHirAL BOOKKEEPING. 
 
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 16 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 DIRECTIONS FOR JOURNALIZING. 
 
 Having com})letocl the work of copying the foregoing transactions into your Day Book, you may 
 now journalize them. As explained in and 10, on page 5, journalizing is deciding upon the i.roper 
 debits and credits of the business transactions recorded in the Day Book, and arranging them in the 
 Jouriud in a form convenient for transferring (posting) to the Ledger. In journalizing, therefore, you 
 will need your Day Book and Journal before you. 
 
 The Examples commencing on page 8 are designed to assist you in the work of journalizing. 
 To illustrate : Read the first transaction in your Day liook ; then turn to page 8 and comj>are 
 it with the Day Book Record of Example N<>. 1. As you will see, they read sul)stantially alike, 
 and precisely the same principles are involved in each. If, therefore, Exami)lc No. 1 be journalized 
 
 Cash, Dr. 5000 ^^^^^ journal entry.for Example No. 1, page 8), it follows that the 
 
 To J. T. Smith, Cr. 5000 ^ •> -' 
 
 . • T^ « 1 1 11 I • r 1 ^'^sh, Dr 4000 
 
 first transaction in your Day Book should be journaiizeil r^^ Student, Cr. 4000 
 
 Turn to your Journal, therefore, and make the journal entry as shown in the engraved form below, 
 ^ou will observe that the del)its are entered on the left side and the credits on the right side of the 
 dividing line. The abbreviations Dr. and Cr. are omitted' from the Journal. The sign *' To " indicates 
 that the item before which it is placed is a credit. After you have made the entry in your Journal, turn 
 at once to your Day Book, and, in the column at the left, check the transaction thus V, to prevent 
 
 omissions. 
 
 Next proceed to journalize the second transaction in your Day Book. By reference to page 13 of 
 the text book, you will see that the small reference figures at the left of this transaction indicate that 
 you are to consult Example No. 2, on page 8, for assistance in making the journal entry. Again, the 
 reference figures for transaction of January 2, page 13, refer you to Example No. 3, page 8; for 
 transaction of January 4, to Example No. 5, and so on. 
 
 By referring in this manner to an exami)le containing the same conditions as the transaction you 
 are journalizing^ you can readily determine the proi)er debits and credits for all of the transactions in 
 January. In consulting these examples for assistance in making the journal entries, you should at the 
 same t'ime study the rules and exidanaticms given under them, that you may, as soon as possible, 
 become familiar with the principles of debit and credit. 
 
 After journalizing all of the transactions for January, present your Journal to the teacher for 
 
 approval. 
 
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 THEORETICAL AND PRACTICAL BOOK-KEEPING. 1< 
 
 DIRECTIONS FOR POSTING. 
 
 After you have journalized all of the transactions for January, and your Journal has been 
 approved by the teacher, your next work will be to post. Posting, as explained in 14 to 20, on page 5, 
 is transferring the del)its and credits from the Journal to the Ledger, placing those of the same name 
 under one heading, for the purpose of exhibiting the final results of the business. The simple process 
 of posting is not difficult; it is purely mechanical, but it requires constant watchfulness and care to 
 perform the work without making errors. 
 
 A few Ledger accounts are shown on page 19, to give you an idea of the form for opening 
 accounts in your Ledger; and you will find explicit instructions for posting given below% under ''Guide 
 for posting the Journal entries for January." 
 
 You are to follow those instructions to the very letter, performing the work step by step as 
 directed. To illustrate: In the instructions for posting the first journal entry (Jan. 1), you are told 
 to *' write your own name at the top of page 1 in your Ledger." Before reading the instructions 
 further, you should turn to your Ledger and })erform the work exactly as directed; then turn again 
 to the instructions and see what the next step is, and take that, and so on until you have posted the 
 entire entry. 
 
 Then take the instructions for the second entry in your Journal, and proceed in the same manner 
 as with the first entry, performing the work precisely as indicated. 
 
 After you have posted a few of the journal entries by the aid of the instructions, lay aside your 
 text book and proceed without it if possible. 
 
 You may now place your Journal and Ledger before you, and commence posting in accordance 
 with the following 
 
 GUIDE FOR POSTING THE JOURNAL ENTRIES FOR JANUARY. 
 
 JANUARY 1. (See this Entry in your Journal.) 
 
 First, write your name at the top of page 1 in your Ledger, on the upper line, in a bold, plain 
 hand. (See form of Ledger on page 19.) Next, on the right hand side of the heavy line in the 
 center— Cr. side— enter, in the date column, the date, *'Jan. 1." (The explanation column will be 
 left blank for the present.) Next, in the journal page column, enter the page of your Journal, 
 *'l." Next, in the amount column, enter the amount, "4000." Next turn to your Journal, and 
 place a check mark, thus ''\/," opposite the student's name, to indicate that the item has been 
 posted. (See Journal form on page IG.) Before reading any further, perform the above work 
 precisely as instructed. Next write '"Cash," in a bold, plain hand, at the top of page 2 in your 
 Ledger. Next, on the left hatid side of the heavy line in the center — that is, on the Dr. side — 
 enter in the date column, the date, ''Jan. 1." Next, in the Journal page column, enter the page of 
 your Journal, "1." Next, in the amount column, enter the amount, ''4000." Next turn to your 
 Journal, and place a check mark, thus "v//" opposite Cash, to indicate that this item has been posted. 
 
 • 
 
 JANUARY 1, SECOND ENTRY. (See this Entry in your Journal.) 
 
 Turn to Student's account, on page 1 in your Ledger, and on the left hand side — that is the Dr. 
 side of his account — enter, in the date column, the date, "Jan. 1." Next, in the journal page column, 
 enter the page of your Journal, "1." Next, in the amount column, enter the amount, "300." Next 
 turn to your Journal and check the item thus "v/." Next write "J. S. Baker's" name at the top 
 of page 3 in your Ledger. Next, on the right hand side — that is the Cr. side of his account — enter, in 
 the date column, the date, "Jan. 1." Next enter in the journal page column the page of your Jour- 
 nal, "1." Next, in the amount column, enter the amount, "300." Next turn to your Journal and 
 check the item thus "v/«" 
 
 JANUARY 2. (See this Entry in your JournalJ 
 
 Open an account with "Merchandise" at the top of page ^ in your Ledger; then, on the left 
 hand side — that is the Dr. side — enter, in the date column, the date, "Jan. 2"; next enter the page 
 of your Journal, "1"; next enter the amount, "G50"; next turn to your Journal and check Mdse. 
 thus " v/." Next go to Cash account, on page 2 in your Ledger, and enter, on the Cr. side — that is 
 the right hand side — the date, "Jan. 2 "; next enter the journal page, " 1"; next enter the amo*int, 
 " 650 "; next turn to vour Journal and check thus " v^." 
 
lb 
 
 THEOREriCAL AND PRACTICAL BOOK-KEEPING. 
 
 JANUARY 3. (See this Entry in your Journal.) 
 
 Turn to Merchandise account, on page 4 in your Ledger, and enter, on the Dr. side — leff hand 
 side— in the date column, tlie (hite, "3," the ditto nuirks— thus " — being j)hiced under Jan. to save 
 repetition; next enter tlie journal page, " 1 "; next enter tlie amount, " 750 "; next check the item in 
 the Journal thus, ''\/." Next oi)en an account with II. W. Stevens, at the top of page 5 in your 
 Ledger, and enter, on the Cr. side oi his account, the date, 'Man. 3"; the journal page, *'l"; the 
 amount, '' 750"; then turn to the Journal and check as before instructed. 
 
 JANUARY 4. (See the Journal Entry.) 
 
 Turn to Cash account, on page 2 in your Ledger, and enter, on the Dr. side— /<// hand side — of 
 the account, the date, "4," ])lacing ditto marks under the month; next enter the journal page, 
 "1"; next enter the amount, "187.50"; next turn to your Journal and check. Next turn to Mer- 
 chandise j:ccount, on i)age 4, and enter, on the Cr. side, the date, ''Jan. 4"; next the journal page, 
 '* 1 "j next the amount, " 187.50 "; next turn to your Journal and check. 
 
 JANUARYS. (See the Journal Entry.) 
 
 Open an account with "Ford & Co." in the middle of page 5 in your Ledger, and enter, on the 
 Dr. side of the account, the date, "Jan. 5"; next enter the journal page, "1"; next enter the 
 amount, '■•6::i5.00"; next turn to your Journal and check. Next turn to Mdse. account, on page 4. 
 and outer, on the Cr. side, the date, "5"; next the journal page, " I"; next the amount, "625.00." 
 
 JANUARY 6. (See the Journal Entry.) 
 
 Open an Expense account at the top of page 6. Enter, on the Dr. side, the date, "Jan. G "; next 
 the journal page, "1"; next the amount, "25"; next check in the Journal. Next turn to Cash 
 account, on page 2, and enter, on the Cr. side, the date, "6"; the journal j)age, " 1 "j the amount, 
 "25"; then check in the journal. 
 
 JANUARY 8. (See the Journal Entry.) 
 
 Turn to H. W. Stevens' account, on page 5, and enter, on Dr. side, the date, "Jan. 8"; journal 
 page, "1"; amount, "250"; then check in the Journal. Next turn to Cash account, on page 2, and 
 enter, on the Cr. side, the date, the journal page, the amount; then check in the Journal. 
 
 JANUARY 9. 
 
 On Dr. side of Cash account enter the date, the journal page, the amount; then check in the 
 Journal. Next, on the Cr. side of Ford & Co.'s account, enter the date, journal i)age, amount. 
 
 JANUARY 10. 
 Post on the Dr. side of Cash account, as instructed heretofore, and check in the Journal; then 
 post on the Cr. side of Mdse. account. 
 
 JANUARY 11. 
 
 Post on the Dr. side of Stevens account, and on the Cr. side of Cash account, remembering to 
 check in the Journal after each posting. 
 
 JANUARY 12. 
 
 Post on Dr. side of Mdse. account. Next open an account with James T. Hoag, at the top of 
 page 7, and credit him. 
 
 Note.— You will observe that, in every journal entry, an equal amount is posted to both sides of the Ledger, thus 
 keeping it constantly in balance. This is the principle upon which Double Entry book-keeping is based and from 
 which it takes its name. 
 
 You should now be able to proceed with the posting without further a.«*sistan(e. In case you should be unable 
 to do so, however, for additional practice apply to the teacher for a separate nheet of ledger paper, and post the same 
 entries again. 
 
 In opening new accounts in your Ledger hereafter, leave one half of a page space for each, until otherwise 
 
 \astructed. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPINQ. 
 
 19 
 
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20 THEOHETICAL AND PKACTIOAL BOOKKEEPING. 
 
 TRIAL BALANCE. 
 
 " A Trial Balance is a teit to ascertain whether the debit and credit sides of the Ledger are equal. 
 "The Trial Balance does not prove the work absolutely correct, «»as errors may be made which will 
 not affect the e(iuality of the Ledger, ^ such as posting to the wrong account, errors in journalizing, 
 erroneous computations, etc. 
 
 » If the footings of the Trial Balance are equal, however, it is generally regarded as evidence that 
 the work upon the Ledger is correct, "although the careful book-keeper, in addition to such proof, 
 will usually go over his computations and posting the second time. 
 
 You may now proceed to take a Trial Balance for January. 
 
 INSTRUCTIONS FOR TAKING JANUARY TRIAL BALANCE. 
 Commence with the first account in your Ledger, which is Student's, and foot the Dr. side of the 
 account, "placing the footing in small lead-pencil figures, *« close up to the line on which the last item 
 
 is posted, as illustrated below. 
 
 Student. 
 
 188 
 Jan. 
 
 18 
 
 300 
 
 75 
 
 375 
 
 188 
 Jan. 
 
 4000 
 
 The above illustration shows how the Dr. side of Student's account will appear in the Ledger 
 after it has been footed for the trial balance. ** Do not draw lines under the columns to be added, as 
 the peculiar position of the footing serves to distinguish it from the other items in the account. 
 " Make your pencil footings i)lain and distinct, but as small as possible. When there is but one item 
 on either side of an account, no pencil figures are necessary; for example, see credit side of Student's 
 account above. Next write your name on the first line in the trial balance sheet, »' placing the Dr. 
 footing of your account in the left hand column and the Cr. footing in the right hand column, as 
 illustrated in the trial balance given below. 
 
 You will then turn to the next account in your Ledger— Cash. Add both sides of the account, aa 
 before instructed, placing the footings in pencil in the position described above, and then transfer 
 them, with the title of the account— Cash— to the next line in the trial balance sheet. Continue Jn 
 this manner, footing and carrying results to the trial balance, until the footings of all of the accounts 
 in the Ledger have been transferred. »» When the footings of both sides of an account are equal they 
 should be omitted from the trial balance, as in the case of the account with James T. Hoag. You 
 may rule up Hoag's account in your Ledger at once. (See lirst ruling of his account, page 30.) "If 
 your trial balance is correct, the footings of the sides will be e<iual, and will correspond in all particulars 
 with the one givpu below. Ahvaijs nse red ink in ruliiKi. 
 
 
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 THEORETICAL AND PRACT1CA.L BOOKKEEPING. 
 
 ERRORS IN TRIAL BALANCES. 
 
 21 
 
 »* No rule or set of rules can be given for the certain detection of errors in trial balances, save, 
 perhaps, a careful review of the entire work. If only one error has been made, however, the following 
 short tests will frequently disclose it, and they should be first applied, as involving much less labor 
 than going over the entire work. 
 
 First.— »^ If the error be exactly $1, $10, $100, $1000, etc., it is very likely in the additions, either 
 of the Ledger accounts or the columns of the trial balance. 
 
 Second.— *« An error may have been made in carrying the footings of the accounts from the Ledger 
 to the trial balance, or «' an account may have been omitted entirely from the trial balance. 
 
 Third.— »« If an amount has been omitted in posting, the trial balance will be exactly that amount 
 out of balance. *« Look through the Journal or other books from which you have posted, and see if 
 you can find an item of the same amount as the error, which has been omitted in posting. 
 
 Fourth.— "* If un amount has been posted to the wrong side of the Ledger, the trial balance will 
 be just twice that amount out of balance; "»' therefore look through the Journal for an item of one-half 
 the amount of the error. 
 
 Fifth.— '"^ If the error be divisible by 9, it is quite likely to have been caused by a transposition of 
 figures; as, $43 posted $24 would make an error of $18, which is divisible by 9; again, $345 posted 
 $453 would make an error of $108, which is divisible by 9, etc. 
 
 Sixth.—'""' Should all of the foregoing tests fail to disclose the error, it will be necessary to review 
 the work, '»*trom the date of the last trial balance, in the following manner: '* Examine carefully 
 each journal entry, to be certain that the debits and credits are equal, and '""then see that these debits 
 and credits have been transferred correctly to the Ledger, '°^ placing a check mark in pencil, thus \/, m 
 the Ledger against each item examined and found to be correctly posted. ** If, after thus checking 
 tlie work, you find an amount not checked, you may conclude that the item has been posted twice. 
 »»» Merely examining the posting without checking will not answer the purpose; every item must be 
 checked to locate the error. 
 
 Note.— Questions upon a few of the leading principles involved in the work of the foregoing set are given below, 
 and you should be prepared to answer them satisfactorily if called upon L»y the teacher at any lime to do 6u. Bcturc 
 proceeding further, therefore, study carefully the answers to the following 
 
 QUESTIONS FOR REVIEW. 
 
 Pages.— 'What is book-keeping? 'What is the object of it? *What are the principal books 
 employed in Double Entry called? « Describe the use of the Day Book. » Tiie Journal. "The 
 Ledger. '° What is Journalizing? "* What is Posting? 
 
 Page 6.—^ When are Persons debited? "When are Persons credited? *^When is Property debited? 
 
 "When is Property credited? 
 
 Page 20.— '• What is' a Trial Balance? «MVliy does it not prove the Ledger absolutely correct? 
 "When may an account be omitted from the Trial Balance? 
 
 Note.— After you have become familiar with the principles covered by the above questions, proceed to copy into 
 your Day Book the transactions for February, as given on tlie following pages. In all computations, if the fraction is 
 five mills or over, add another cent ; if less than five mills, drop the fraction. Strive to make the work upon your 
 books «how constant progress in penmanship, by imitating as nearly as possible the forms given you to copy. 
 
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 Note. — After you have completed copying the foregoing transactions into j'our Day Book, before proceeding to 
 journalize, draw up on foolscap paper the notes mentioned in the transactions of Feb. 2, Feb. 5, Feb. 9 and Feb. 12. 
 (See form of note on page 21.) 
 
 Interest and Discount are computed in this work at 6 per cent., on a basis of 365 days, unless otherwise specified. 
 When a note is given in months, the interest or discount is reckoned in months and days; if given in days, the actual 
 number of days are taken. 
 
 After writing the notes called for above, proceed to journalize the transactions for February as you did those of 
 January, referring when necessary to the principles and examples indicated by the figures at the left of the transactions 
 to a.ssist you in the work. As before stated, you sliould, when referring to the rules and explanations, study them care- 
 fully, that you may, as soon as possible, journalize independently, by becoming familiar with tlie principles of debit 
 and credit No reference figures are given for a few of the simpler transactions in February, it being presumed that 
 you are sufficiently acquainted with the principles to enable you to journalize them without such assi.stance. 
 
 When you have completed tlie journalizing for February, present your journal, together with the forms of notes 
 called for above, to the teacher for approval. You will then be prepared to begin 
 
 POSTING FEBRUARY. ' 
 
 As the business for February is a continuation of that of January, it will be posted under the 
 same ledger headings, new accounts being opened, of course, as they may be required. Since full 
 instructions for posting were given in January, you will i)robably not require any further assistance, 
 as the work of posting is always substantially the same. 
 
 Should you need further aid, however, in the work, instructions for posting a few of the tii-st 
 journal entries in February are given below. 
 
 GUIDE FOR POSTING FEBRUARY. 
 
 FEBRUARY 1 (See this Entry in your Journal.) 
 Turn to Wells, Johnson & Co.'s account, on page 8 in your Ledger, and enter, on the Dr. side of 
 their account, the date, "Feb. 1"; the page of your Journal, ''3"; the amount, ''200"; then turn 
 to your Journal and check this item. 
 
26 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 Next turn to Cash account, on page 2, and enter, on the Cr. side, the date, **Feb. 1 "; the journal 
 page, ''3"; the amount. •';iOO''; then turn to your Journal and check. 
 
 FEBRUARY 1. (Second Entry.) 
 
 Turn to Expense account, on page 6, and enter, on the Dr. side, the date, journal page and 
 amount; then check in the Journal. Next turn to Cash account, on page 2, and enter, on the Cr. 
 side, the date, journal page and amount; then check in the Journal. 
 
 FEBRUARY 2. 
 
 Turn to Mdse. account, on page 4, and post on the Dr. side. Next open an account with Bills 
 Payable at the top of page 9 in your Ledger. (Bills Payable will require one })age space.) Post, on 
 the Cr. side, the date, journal page and amount. Kemember to check every item in the Journal as 
 soon as posted. 
 
 FEBRUARY 3. 
 Post on the Dr. side of Cash account, and on the Cr. side of Mdse. account. 
 
 FEBRUARY 5. 
 
 Open an account with Bills Receivable at the top of page 10 in your Ledger. (Bills Receivable 
 will refjuire one page space.) Post, on the Dr. side, the date, journal page and amount. Turn to 
 Moore & Collins' account, and credit them with same amount. 
 
 Post on Dr. side of Mdse. account. 
 11, and credit him with same amount. 
 
 FEBRUARY 6. 
 Next open an account with David Bailey at the top of page 
 
 FEBRUARY 7. 
 
 Post, on the Dr. side of Cash account, "100"; on the Dr. side of Jas. T. Iloag's account, ** 56.25'*; 
 on the Cr. side of Mdse. account, '' 150.25." 
 
 Note. — Continue in this manner until you have posted the entire month of February. In opening new accounts 
 hereafter in this month, give each account one half a page space, excepting Interest and Discount, which will require 
 one page each. 
 
 After you have completed the posting for the entire month, your next work will be the 
 
 TRIAL BALANCE FOR FEBRUARY. 
 
 Proceed to take a Trial Balance for Fel)ruary, in accordance with the instructions for the January 
 Trial Balance, given on i)agc 20. In footing tlie accounts for February, add in tlie January footing 
 also. 
 
 Remember that the footings are to be in pencil. Make small, plain figures, and place them close 
 up to tlie line on wliich the last item in the account is i)osted, as instructed in 88, })age 20. 
 
 Ford & Co.'s account balances; it is therefore to be ruled up (see form of ruling on pages 38 and 
 39), and omitted from your Trial l^alance. 
 
 When all the accounts in your Ledger have been footed and transferred to the Trial Balance, it 
 should agree in all respects with the Trial Balance given below. 
 
 If, however, your Trial Balance does not prove, turn to page 21 and consult the instructions there 
 given for finding *' Errors in Trial Balances." 
 
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 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
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 Note. — Questions upon some of the principles involved in the preceding set are given below, and you should be 
 prepared to answer them if called upon to do so. Before proceeding further, therefore, study carefully the answers to 
 the following. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 7.—^ When are Bills Payable credited? *^ When debited? ^ When are Bills Receivable 
 debited? *" When credited? ^^ When are Interest, Discount, etc., debited? '* When credited? "For 
 wliat is Expense debited? ^For what credited? "What is generally included under the title **Cash"? 
 *» Under the title ^'Merchandise"^ ^ Under the title '* Expense"? "Under the title ''Bills Receiv- 
 able " ? «• Under the title ' • Bills Payable " ? 
 
 Note. — Before proceeding with the month of March, study the following rule and explanations for the Bank 
 account, and also the examples given below illustrating the rule. 
 
 BANK. 
 
 Dr. 
 
 Cr. 
 
 "* Bank is credited when a check is drawn upon 
 the bank. 
 
 "" Bank is debited when a deposit is rnade in 
 the bank. 
 
 '" The checks drawn by other persons, which come into your possession, should be journalized as 
 Cash. Debit Cash when you receive such checks, and credit Cash when you dispose of them. (See 
 form of check on page 28.) 
 
 Note. — The following examples will illustrate the rule given above for journalizing the Bank account. 
 
 / 
 
 II 1 
 
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 28 
 
 THEOKETICAL AND PRACTICAL BOOK KEEPING. 
 
 EXAMPLE No. 30. 
 
 DAY BOOK RECORD. 
 
 iTVlfS. TOTAL. 
 
 JOURNAL ENTRY FOR SAME. 
 
 I)R. 
 
 CR. 
 
 Opened an account at City 
 Bank, and deposited, 
 Cash. 
 
 
 
 1500 
 
 i 
 
 J 
 
 
 
 City Bank, Dr. 
 
 To Cash, Cr. 
 
 1500 
 
 150( 
 
 EXAMPLE No. 31. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Bo't of W. E. Brown, 
 25 bbls. Flour. @ 8.00, 
 
 Paid for same by cheek 
 on City Bank, t 
 
 200 
 
 Mdse., Dr. 
 
 To City Bank, Cr. 
 
 200 
 
 200 
 
 EXAMPLE No. 32. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Keceivc'd of H. A. Strong, 
 iiis check on First Ma- 
 tional Bank, in settle- 
 ment of his account. 
 
 1 
 
 
 200 
 
 1 
 
 1 
 
 
 Cash, Dr. 
 
 To H. A. Strong, Cr. 
 
 200 
 
 200 
 
 EXAMPLE No. 33. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Paid J. A. Richmond, on 
 account, H. A. Strong's 
 check on First National 
 Bank, 
 
 20< 
 
 J. A. Richmond, Dr. 
 
 To Cash, Cr. 
 
 200 
 
 200, 
 
 Note.— The Bank account is sometimes kept in the Check Book instead of in the Ledger, the balance in bunk 
 being considered as cash on luuid. When this method is adopted, no entry is made in the Cash account at tlie time of 
 depositing. Cash account being credited wlien a chcc k is drawn upon the bank. This method of keeping the Bank 
 account will be illustrated in a more advanced part of the work. 
 
 You may now proceed to copy the transactions for the month of March into your Day Book. One page only is 
 written up, the remaining transactions being simply in the form of a connected statement or hi.story, from which you 
 are to copy, arranging the work as heretofore. In a few cases references are made to similar transactions, to assist you 
 in the proper arrangement of the work in your Day Book. 
 
 Fourth National Bank, 
 
 Ok Cincinnati. 
 
 Pay to 
 
 ^^Z^^^'^^^l^c^ OR Order. 
 
 I^I^L-^^ DOLLARS, 
 
 i-*W 
 
 i 
 
 \ 
 
 THEORETICAL AND J»RACTICAL BOOK KEEPING. 
 
 29 
 
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30 
 
 59, pa. 7. 
 48, pa. B. 
 
 87, pa, 7. 
 
 40, pa. «. 
 
 67, pa. 7. 
 7«, pa. 7. 
 40, pa. 6. 
 
 47, pa. «. 
 68, pa. 7. 
 Zi, pa. 6. 
 
 Ex.30, p. 
 
 28. 
 
 39, pa. 6. 
 
 59, pa. 7. 
 
 L'3, pa. 6. 
 
 48, pu. ti. 
 
 89, pa. 6. 
 80, pa. 7. 
 
 Ex. 31, p. 
 2b. 
 
 7o, pa. 7. 
 39, pa. «. 
 60, pa. 7. 
 
 .'}9, pa. 6. 
 «0, pa. 7. 
 78, pa. 7. 
 
 THKOHKTICAL AND PKACTRAL BOOKKEEPING. 
 
 I MARCH 7. 188-. 
 
 Sold Clark, Sons & Bradley, on *^-, 3750 lbs. Lard, (a) 13|c. Arrange this transaction in vour 
 Day liook same as Feb. lU, i)age 24. (See note at bottom of l>age. ) 
 
 9. 
 
 Sold D. B. Martin, 20 bbls. Pork, @ 13.25; ,30 bbls. Flour, @ 8.25; 15 bbls. Beef, @ 15.75. 
 Kec'd i)ayment by note at 90 days. (See form of Day. Book entry, Feb. 9.) 
 
 Paid February Gas Bill, in Cash, 4.75. (See form of Day Book entry, Jan. 6.) 
 
 10. 
 
 Paid my note of Feb. 20, favor of H. W. Stevens, in Cash. (For amount of this note, see 
 Day Book, Feb. 20; and for form of Day Book entry, see Feb. 11.) 
 
 11. 
 Roc'd Cash of Clark, Sons & Bradley, on % 200.00. 
 
 12. 
 
 Prepaid my note of Feb. 23, favor of L. J. Peek, due Mar. 18th, 433.75. Discount to maturity, 
 days, 43c. Balance i)aid in Cash, 433.32. (See Day Book form, Feb. 28.) 
 
 13. 
 Paid David Bailey, Cash on % 02.50. 
 
 Bo't of W. A. Bancroft, 000 lbs. V. II. Tea, @ 65c.; 1000 lbs. Java Coflfe, 0^, 28c. Gave him, 
 
 in })ayment, my note at 10 days, with interest, 500.00; balance on ^. (Day Btiok form, 
 
 Feb. 18.) 
 
 14. 
 
 Opened an account at College Bank, and deposited Cash, 500.00. (See example No. 30, on 
 page 28, for form of Day Book entry. ) 
 
 15. 
 
 Sold Ford & Co., 20 bbls. Flour, @ 8.25; 18 bbls. Beef, @ 15.75; 30 bbls. Pork, @ 13.50. 
 Rec'd in j)ayment. Cash, 353.50; their note at 10 days, with interest, 300.00; balance on 
 ^c. (See Day Book form, March 0.) 
 
 16. 
 
 Rec'd Cash of Ford & Co., for their note of Feb. 21st, due to-day. (See your Day Book, Feb. 
 
 21, for amount of this note.) 
 
 17. 
 
 Paid J. S. Baker, Cash in full of ^;. (See his "^ in your Ledger for amount you owe him.) 
 
 18. 1 
 
 Bo't of 11. W. Stevens, 100 bbls. Salt, @ 2.15, and paid for same by check on College Bank. 
 (See Example No. 31, on page 28, for form of Day Book entry, and form of check on 
 page 28.) 
 
 D. B. Martin prepaid his note of 0th inst., due June 10th, 748.75. Discount to maturity, 83 
 days, 10.22. Rec'd Cash for balance, 738.53. (See Day Book form, Feb. 22.) 
 
 Sold D. V. Bell, for Cash, 50 bbls. Salt, @ 2.55. 
 
 20. 
 Rec'd Cash of Moore & Collins, for their note of 5th inst., due to-day, with interest. Face of 
 note, 500.00; interest to date, 15 days, 1.23. (See Day Book form, Feb. 17.) 
 
 21. 
 Deposited Cash in College Bank, 1200.00. 
 
 22. 
 
 Sold Wardwell & Vance, for Cash, 10 bbls. Pork, @ 13.1i>; 10 bbls. Beef, @ 15.50. 
 
 Note. — Whenever the fraction is five mills or over, add anotber (jHt , when less than five mills, drop the 
 fraction. • 
 
 \ 
 
 ^ 
 
 4 
 
 • / 
 
 •h 
 
 39, pa. 6. 
 53, pa. 7. 
 
 3B. pa. 6. 
 40, pa. 0. 
 
 67, pa. 7. 
 7.5. pn. 7. 
 Ill, p. 37. 
 
 23, pa. 6. 
 Ill, p. 27. 
 
 THEOKKTICAL AND PRACTICAL BOOK-KEEPING. SI 
 
 23. 
 
 Sold Henry F. Mixer, the House and Lot No. 718 Main St., for Cash, 2300.00. 
 
 24. 
 Student ( ) drew Cash from the business, for i)rivate use, 125.00. 
 
 25. 
 Rec'd of Moore & Collins, their note at 20 days, to balance «/c, 130.30. (See Day liook form, 
 
 Feb. 5th.) 
 
 26. 
 
 Sold Sickles, Stover & Jackson, 800 lbs. Java Coffee, @ 32c. ; 180 lbs. Y. 11. Tea, (^ 85c. 
 Rec'd in payment, Cash, 209.00; balance on «/c. 
 
 » 
 
 Paid my note of 13th inst., favor Bancroft, due to-day, with interest, by check on College 
 Bank. Face of note, 500.00; interest to date, 13 days, 1.07. (See Day Book form, Feb. 
 
 25.) 
 
 27. 
 
 Gave W. A. Bancroft a check on College Bank, to apply on % 500.00. 
 
 Rec'd Cash of Sickles, Stover & Jackson, on % 50.00. 
 
 28. 
 Rec'd Cash of Ford & Co., for their note of 15th inst., due to-day, with interest. Face of 
 note, 300.00; interest to date, 13 days, G4c. 
 
 29. 
 Paid Book-keeper's salary for the month in Cash, 75.00, 
 
 30. 
 Rec'd Cash of Clark, Sons & Bradley on % 100.00. 
 
 31. 
 Deposited Cash in College Bank, 3500.00. 
 
 Paid Rent of Store, by check on College Bank, 25.00. 
 
 j^oxi: — Copy the Inventories as given below into your Day Book, immediately following the transactions for 
 March. When the inventory includes a long list of goods, a separate book, called the "Inventory Book," may be 
 employed. 
 
 RESOURCE INVENTORIES, MARCH 31, 188-. 
 
 MERCHANDISE. 
 
 100 bbls. Flour, 
 50 '* Salt, 
 COO lbs. Y. H. Tea, - 
 800 " Java Coffee, 
 
 Office Safe, valued at 
 " Books, 
 
 EXPENSE. 
 
 7.00, 
 
 i 
 700 
 
 
 
 2.13, 
 
 , 106 
 
 50 
 
 
 65c. 
 
 ! 390 
 
 
 
 28c. I 
 
 224 
 250 
 
 
 1420 
 
 
 50 
 
 
 300 
 
 50 
 
 lis 
 
 An Inventory represents, generally, property on hand, as in the case above. "*It may, however, 
 represent a debt owing to us or owing by us, such as interest accrued on notes, unpaid rent, etc. "^ An 
 Inventory may, therefore, show either a resource or a liability. 
 
 "® In business, the inventory of goods on hand is usually found by going through the store, weigh- 
 ing, measuring or counting the articles, "Uhcir value being estimated usually at the i)rice at which 
 they could then be purchased. ""In some kinds of wholesale business it is advantageous to keep what 
 is called a '" Stock Book," from which the quantity of goods on hand can be determined &t ony time, 
 and with much less labor than by the method described above. 
 
3? 
 
 THEORETICAL AKD PKACTICAL BOOK KEEPING. 
 
 Note. — Having completed copying the Day Book for March, journalize the transactions, consulting the examples 
 and rules to wliich references are made, as you may find it necessary. After you have journalized the entire month, 
 before commencing to post, write up, ou foolscap paper, the checks mentioned in the transactions of March IS and 26 
 (see form of check on page 28), and present them, with your Journal, to the teacher for approval. 
 
 POSTING MARCH. 
 
 The business of March being a continuation of that of January and February, it will be posted 
 under the same ledger headings, opening such new accounts as may be refpiired. 
 
 Give all new accounts in this month one-half of a page space, excepting College Bank, which will 
 require one page. 
 
 BALANCE SHEET. 
 
 After you have completed the posting for March, you may next "'make out a ''Balance Sheet," 
 for the purpose of ascertaining the exact condition of the business at the j)resent time. 
 
 ""The Balance Sheet as illustrated on page M combines with tiie Trial Balance a statement, 
 exhibiting in a condensed and convenient form for reference, the Resources, Liabilities, Losses and 
 Gains of the business. In performing this work, it is of the utmost importance to you that you do 
 not merely copy the form of Balance Sheet. To do the work understandingly, securing a knowledge 
 of the relations of the various accounts to the business, it is absolutely essential that you take each 
 step in the order indicated, and perform the work precisely as directed in the instructions which follow. 
 
 GUIDE FOR MAKING BALANCE SHEET FOR MARCH. 
 
 If you have not in your Trial Balance book a form ruled to correspond with the one shown on 
 page 34, you will rule a sheet. First take a trial balance of your Ledger, precisely as instructed for 
 January and February; that is, foot the accounts in pencil, and carry the footings to the Jirst two 
 columns of your Balance Sheet. Do not extend any amounts to the other columns until you have 
 thus drawn off into your Balance Sheet all of the ledger accounts and footed the columns, to ascertain 
 whether your Ledger is in balance. If your trial balance proves — that is, if the first two columns foot 
 equally — your next step will be to extend the Resources, Liabilities, Losses and Gains, as shown by 
 the various accounts as follows: 
 
 CASH. 
 
 Commence with Cash, it being the first account in your Balance Sheet, following the Proj)rietor's 
 (Student's) account. "'The difference between the Dr. footing. 15871.91— the cash received — and the 
 Cr. footing, 15530.49— the cash paid out — is 341.42, which you are to extend to the Resource column 
 in your Balance Sheet, because it is the cash on hand. (See 32, page 6.) 
 
 MERCHANDISE. 
 
 *" First enter, in the Resource column, the Mdse. on hand — that is the Inventory as shown on 
 page 31 — 14J0.50. (See 32, page 6.) Make tlie entry in red ink, to distinguish it from the resources 
 shown by the ledger accounts. Next find the gain on Mdse. account by either of the following 
 methods, and extend into the Gain column of your Balance Sheet 803. G2. (See 31, page 6.) 
 
 •^ First Method. 
 
 Sales of Mdse. (Cr. footing), 9,377. 62 
 
 Inventory (goods on hand, page 31),... 1,420.50 
 
 Cost of Mdse. (Dr. footing), , 
 
 10,798.12 
 9,994.50 
 
 Gives the gain, 803. 62 
 
 '"Second Method. 
 
 Sales of Mdse 9,377.62 
 
 Cost of Mdse 9,994.50 
 
 Inventory '' - 1,420..50 
 
 Gives the gain. 
 
 8,574.00 
 
 803.62 
 
 H. W. STEVENS. 
 '"The Cr. footing of his account is IvMO, and the debit footing 775. You are to extend to the 
 Liability column the difference, 435, because it is the balance you owe him. (See 33, page 6.) 
 
 FORD & CO. 
 "•The debit footing of their account is 200, and, there being no credit, extend the 200 to the 
 ■Resource column, it being the amount they owe you. (See 32, page 6.) 
 
 4' 
 
 THEOKETIOAL AND PKACTICAL BOOK- KEEPING. 
 
 33 
 
 I 
 
 I 
 
 1} 
 
 '^ 
 
 EXPENSE. 
 
 '■' First enter, in the Resource column, the Expense Inventory, 300, given on page 31. (See 32. 
 page 6.) Enter the item in red ink, as explained for Mdse. Inventory. Next enter, in the Loss 
 column, 320.05, the loss on Expense account (see 30, page 6). "*This you will find by deducting the 
 Expense Inventory, BOO, from the Dr. footing of Expense account, 620.05, because the Safe and Books, 
 when bought, were charged to Expense account, and are therefore included in the Dr. footing, 620.05. 
 
 JAS. T. HOAG. * 
 
 The Dr. footing of his account is 123.75, and the Cr. footing 25. You are to extend to the 
 Resource column the difference, 98. 75, because it is the balance he owes you (32, page 0). 
 
 WELLS. JOHNSON & CO. 
 The Cr. footing of their account is 968.75, and the Dr. footing 200. You are to extend to the 
 Liability column the difference, 768.75, it being the balance you owe them (33, page 6). 
 
 BILLS PAYABLE. 
 
 **«The difference between the Cr. footing, 2383.75 (the notes issued), and the Dr. footing, 2083.75 
 (notes redeemed), is 300, which you are to extend to the Liability column, it being the Bills Payable 
 outstanding (33, page 6). 
 
 BILLS RECEIVABLE. 
 '***The difference between the Dr. footing, 2854.80 (the notes received), and the Cr. footing, 
 2724.50 (notes disposed of), is 130.30, which you are to extend to the Resource column, it being the 
 Bills Receivable on hand (32, page 6). 
 
 DAVID BAILEY and W. A. BANCROFT. 
 Same instructions and explanations for these accounts as given above for H. W. Stevens' account. 
 
 INTEREST. 
 
 ''' The difference between the Cr. footing, 2.17 (the interest allowed to us), and the Dr. footing, 
 1.92 (the interest allowed by us), is 25c, which you are to extend to the Gain column (31, page 6). 
 
 DISCOUNT. 
 
 '"'The difference between the Dr. footing, 16.64 (the discount allowed by us), and the Cr. footing, 
 3.16 (the discount allowed to us), is 13.48, which you are to extend to the Loss column (30, page 6). 
 
 SICKLES, STOVER &. JACKSON. 
 Same instructions and explanations as given above for Jas. T. Hoag's account. 
 
 REAL ESTATE. 
 
 '" The difference between the Cr. footing, 2300 (the returns from sales), and the Dr. footing, 2000 
 (the cost), is 300, which you are to extend to the Gain column (31, page 0). 
 
 CLARK, SONS & BRADLEY. 
 Same instructions and explanations as given above for Jas. T. Hoag's account. 
 
 COLLEGE BANK. 
 
 ^^ The difference between the Dr. footing, 5200 (the amount deposited), and the Cr. footing, 
 1241.07 (the amount withdrawn), is 3958.93, which you are to extend to the Resource colnmn, it being 
 the balance on deposit in the bank (32, page 6). 
 
 You may now foot the remaining columns of your Balance Sheet, viz: the Resource, Liability. 
 Loss and Gain columns, after which make a summary of the results, as shown in the form of Balance 
 Sheet on page 34. 
 
 '^ When the losses exceed the gains, the difference is called the *'Net Loss." ^^ In such case the 
 Net Loss is to be deducted from the Net Investment, to find the Present Worth. 
 
 '" When the Liabilities exceed the Resources, the Proprietor is said to be ** Insolvents" 
 
34 
 
 TIIEOUKTICAL AND IMIACTICAL liOOK-KKKPINO. 
 
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 TIIEOUETICAL AND PRACTICAL BOOK-KEEPING. 
 
 :^5 
 
 Note. — On April 1 you are to admit P. W. Leonard as a partner in your business. You may therefore close your 
 Ledger, witli tliat object in view, a-s explained l)elow. 
 
 First read carefully tlie following "General Rules for Closing the Ledger," and then procttnl with the work ati 
 instructed under "Guide for Closing the Ledger for March," on page 36. 
 
 CLOSING THE LEDGER. 
 
 '**lt is {!Ustomary in business, once a year at least, to take an inventory of goods on hand, '^'and 
 close those {iccounts in tlie Ledger which show losses and gains, ""for the purpose of carrying the Net 
 Gain or Net Loss to the I*roprietor's account, thereby causing it to show his i)resent worth. 
 
 '" 'J'he remaining accounts at such time, that is, those showing resources and liabilities, are not 
 usually closed. '"All of the accounts, however, may be and sometimes are closed, the object l>eing to 
 mark a i»eriod, or new starting })oint in the business, as the beginning of a new business year, the 
 admission of a new i)artner, or the oi)ening of a ncAv Ledger. 
 
 GENERAL RULES FOR CLOSING THE LEDGER. 
 
 '"LOSS AND GAIN ACCOUNT OPENED. 
 Open an account with ** Loss and Gain," at the top of the first blank page following the last 
 account in your Ledger, if you have not already opened such an account. 
 
 •"ACCOUNTS CLOSED IN THE ORDER IN WHICH THEY APPEAR IN THE LEDGER. 
 To economize time, and to avoid omissions, close the accounts in the order in which they stand in 
 the L<^dger, omitting the Proprietor's account until all the other accounts in the Ledger have been closed. 
 
 "^ACCOUNTS HAVING RESOURCE INVENTORIES CLOSED. 
 If an account lias a Kesource Inventory, enter the amount of it on the credit side of tlie account, 
 in red ink, using for explanation "Inventory." Next enter, on the smaller side of the account, in red 
 ink, tlie difference between the sides, using for explanation " Loss and Gain." Next rule up the account 
 and enter the footings, carrying the Inydntory below the rulings, on the debit side of the account, in black 
 ink. Next transfer the loss and gain amount to the opposite side of Loss and Gain account, in black ink, 
 using for explanation the title of the account you are closing, as "Expense" or "Merchandise." 
 
 '^ACCOUNTS HAVING LIABILITY INVENTORIES CLOSED. 
 If an account has a Liability Inventory, enter the anlount of it on the debit side of the account, in 
 red ink, using for exjdanation " Inventory." Next enter/ on the smaller side of the account, in red ink, 
 the difference between the sides, using for exjdanation " Loss and Gain." Next rule up the account and 
 enter the footings, carrying the Inventojy below the rulings on the credit side of the account, in black 
 ink. Next transfer the loss and gain amount to the Opposite side of Loss and Gam account, in Idack 
 ink, using for explanation the title of the account you are closing, as "Expense" or "Interest." 
 
 '"ACCOUNTS SHOWING GAINS HAVING NO INVENTORIES CLOSED. 
 Enter, on the debit side, in red ink, " Loss and Gain," and the difference between the sides of the 
 account. Rule up the account, enter the footings, and transfer the loss and gain amount to the cre<lit 
 side of Loss and Gain account, in black ink, using for explanation the title of the account vou are 
 closing, as "Mdse.," "Real Estate," etc. 
 
 "« ACCOUNTS SHOWING LOSSES HAVING NO INVENTORIES CLOSED. 
 Enter, on the credit side, in red ink, " Loss and Gain," and the difference between the sides of the 
 account. Rule up the account, enter the footings, and transfer the loss and gain amount to the debit 
 side of Loss and Gain account, in black ink, using for exjdanation the title of the account you are 
 closing, as "Expense," "Interest," etc. 
 
 "'ACCOUNTS SHOWING RESOURCES CLOSED. 
 Enter, on the credit side of the account, in red ink, "Balance" and the difference l>etwt»en the 
 sides. Rule and foot the account, and carry the difference below the rulings, on the debit side, in black 
 ink, using for exi)lanatioii " Balance." 
 
 '«• ACCOUNTS SHOWING LIABILITIES CLOSED 
 Enter, on the debit side of the account, in red ink, "Balance" and the difference ])etween the sides. 
 Rule and foot the account, and carry the difference below the rulings, on the credit side, in bliick ink, 
 using for explanation "Balance." 
 
86 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 "'LOSS AND GAIN ACCOUNT CLOSED. 
 Enter on the smaller side of Loss and Gain account, in red ink, tlie proprietor's name and the 
 difference between the sides, Avliicli difference will be the Net Gain or Net Loss. Rule and foot the 
 account, and carry the difference to the opposite side of the proprietor's account, in bhick ink, usmg 
 *' Loss and Gain" for exi)lanation. In case of a i)artner8hii), the difference should be divided according 
 to the terms of the partnership contract, and each ])artner'8 name and share entered separately m the 
 Loss and GaTn account, and afterward transferred to tlie opi>osite side of his individual account. 
 
 »»THE PROPRIETOR'S ACCOUNT CLOSED. 
 Enter on the smaller side, ''Present Worth'' and the difference between the sides, in red ink. 
 Rule and foot the account, and bring tlie difference below the rulings on the credit side of the account, 
 in black ink, using '* Present Worth " for exi)lanation. In case the debit side of the proprietor's account 
 is greater, the difference will be entered as " Lisolvency." In case of a partnership, each partner's 
 account should be closed as described above. This completes the closing of the Ledger. 
 
 Note.— After you have carefully read the "General Rules for Closing the ledger," given above, you may proceed 
 with the work of closini^ your Ledger. 
 
 To assLst you in applying the foregoing rules, a few closed accounts are shown on pages 38 and 39, and explicit 
 directions are given below f^ every step to l)C taken, and you should follow these directions very carefully. Take each 
 step in the exact order indicated, and perform the work nrecLscly as directed, 
 
 GUIDE FOR CLOSING THE LEDGER. MARCH 31, 188-. 
 
 First, at the top of a new page in your Ledger, open an account with Loss and Gain. Simply 
 write the heading. No entry is to be made in the account for the present. 
 
 Then turn to the first account in your Ledger following the Proprietor's (Student's) account, 
 
 which is 
 
 CASH. 
 
 On the first vacant line on the Cr. side of this account say, in red ink, '* Mar. 31, Balance, 341.42." 
 Next rule and foot the account. (See Cash account closed, on i)age 38.) 
 
 '*» In ruling an account, draw the red line directly upon the blue line. In the double ruling, draw 
 the lines as close as possible and not have them run together. Rule on the mme line on both sides of 
 the account, even if there be a larger number of entries upon one side than upon the other. (See 
 
 ruling, on page 38. ) 
 
 '^ The 8i)ace for Cash on page 2 having been filled, open another Cash account at the top of a new 
 page in your Ledger, and transfer the balance, 341.42, forward to the new account, as follows: On the 
 Dr. side of the new Cash account say, m black ink, "Apr. 1, Balance, 341.42." 
 
 '» In the page column of the old Cash account, enter the i)age of the new account, to show where 
 the balance was tramf erred to; and in the page column of the new account, enter the page of the old 
 account, to show where the balance was tranxferred from. 
 
 '^Red ink entries in the Ledger indicate that the amounts so entered are to he transferred to some 
 
 other place. 
 
 MERCHANDISE. 
 
 On the Cr. side of this account enter, first, the inventory. Say, in red ink, *' Mar. 31, Inventory, 
 1420.50." Then, on the Dr. side, enter the gain. Say, in red ink, " Mar. 31, Loss and Gain, 803.62," 
 and enter in page column the page of the Loss and Gain account. Next rule and foot the account (see 
 Mdse. account closed, on page 38). Next transfer the gain to the Cr. side of the Loss and Gain account. 
 Say, in black ink, " Mar. 31, Mdse., 803.02," and enter page of Mdse. account. Next transfer the inven- 
 tory below the ruling oi the Mdse. account, on the Dr. side. Say, in black ink, "Apr. 1, Inventory, 
 
 1420.50." 
 
 H. W. STEVENS. 
 
 On Dr. side of this account say, in red ink, "Mar. 31, Balance, 435." Next rule and foot the 
 
 account. Next transfer the balance below the ruling on the Cr. side. Say, m black ink, "Apr. 1, 
 
 Balance, 435." (See Stevens' account closed, on page 38.) 
 
 FORD &. CO. 
 Only one item having been posted to this account since it was balanced and ruled u]», it is 
 unnecessary now to close it, the balance, 200, being shown as it stands. 
 
 EXPENSE. 
 On the Cr. side of this account enter, first, the inventory. Say, tn red ink, " Mar. 31, Inventory, 
 300." Next enter, on the same side of the account, the loss. Say, in red ink, "Mar. 31, Loss and 
 Gain, 320.05," and enter page of Loss and Gain account. Next rule and foot the account. Next 
 
 I'HEOKETICAL AND PRACTICAL BOOK-ttEEPlNG. 
 
 37 
 
 \ 
 
 transfer the loss to the Dr. side of the Loss and Gain account. Say, in black ink, " Mar. 31, Exi>euse, 
 320 05 " and enter page of Expense account. Next transfer the inventory below the ruling of the 
 Expense account, on the Dr. side. Say, in black ink, "Apr. 1, Inventory, 300." (See Expense account 
 closed, on page 39.) ^^^ ^ ^^^^ 
 
 On Cr. side of this account sav, in red ink, "Mar. 31, Balance, 98.75." Next rule and f<K»t the 
 account. Next transfer the balance below the ruling, on the Dr. side. Say, in black ink, "Apr. 1, 
 Balance, 98.75." (See Hoag's account closed, on page 39.) 
 
 WELLS, JOHNSON &. CO. 
 Take the same steps in closing this account that you did in closing 11. W. Stevens' account. (See 
 directions for closing his account, on x>age 36.) 
 
 BILLS PAYABLE. 
 On the Dr. side of this account sav, in red ink, "Mar. 31, Balance, 300." Rule and foot the 
 account, and transfer the balance below the ruling, on the Cr. side. Say, in black ink, "Apr. 1, Bal- 
 
 ""^^'^''•" BILLS RECEIVABLE. 
 
 On the Cr. side of this account sav, in red ink, "Mar. 31, Balance, 130.30." Rule and foot the 
 account, and then transfer the balance below the ruling on the Dr. side. Say, in black ink, " Ajir. 1, 
 
 Balance, 130.30." ..... r^A^^ o/^r-r 
 
 DAVID BAILEY and W. A. BANCROFT. 
 
 Same instructions as given for closing H. W. Stevens' account. 
 
 INTEREST. 
 
 On Dr. side of this account say, in red ink, "Mar. 31, Loss and Gain, 25c," and enter page of Loss 
 and Gain account. Next rule and foot the account. Next transfer the gain to the Cr. side of the Loss 
 and Gain account. Say, in black ink, "Mar. 31, Interest, 25c," and enter page of Interest account 
 
 (See Interest account closed, i)age 39. ) 
 
 ^ DISCOUNT. 
 
 On Cr. side of this account say, in red ink, "Mar. 31, Loss and Gain, 13.48," and enter page of 
 Loss and Gain account. Rule and foot the account; then transfer the loss to the Dr. side of the I^ss 
 and Gam account. Sav, in black ink, "Mar. 31, Discount, 13.48." (Remember ahvays to enter the 
 number of the page, when amounts are transferred to or from some other page in the Ledger. 
 
 SICKLES. STOVER & JACKSON. 
 
 Same instructions as given for closing Jas. T. Hoag's account. (See Hoag's account closed, on 
 
 l^^^^''-^ REAL ESTATE. 
 
 On Dr. side say, in red ink, " Mar. 31, Loss and Gain, 300." Rule and foot the account, and then 
 transfer the gain to the Cr. side of Loss and Gain account. Say, in black ink, " Mar. 31, Real Estate, 
 
 QOO " 
 
 CLARK. SONS & BRADLEY. 
 Same instructions as given for closing Jas. T. Hoag's account. 
 
 COLLEGE BANK. 
 On Cr. side say, in red ink, " Mar. 31, Balance, 3958.93." Rule and foot the account, and transfer 
 the balance below the ruling on the Dr. side. Say, in black ink, "Apr. 1, Balance, 3958.93." 
 
 LOSS AND GAIN. 
 On Dr. side of this account say, in red ink, "Mar. 31, Student, 770.34." Rule and foot the account; 
 then transfer the Net Gain to the Cr. side of Student's account. Say, in black ink, " Mar. 31, I>iss and 
 Gain, 770.34." (See account closed, on page 39.) 
 
 STUDENT. 
 On Dr. side of this account say, in red ink, " Mar. 31, Present Worth, 5170.34." Rule and foot 
 the account; then transfer the difference below the ruling, on the Cr. side. Say, in black ink, " Apr. 
 1, Present Worth, 5170.34." (See account closed, on page 38.) 
 
 Your Ledger is now closed, and the purpose of such closing has been accomplished, viz: '"The 
 Proprietor's account has been made to show his present worth, and »»the resources and liabilities i-ei>- 
 resenting such present worth are exhibited below the rulings of the various accounts showing them. 
 
 Note.— This subject continued on page 40. 
 
38 
 
 TIIEOItin'ICAL AND PRACTICAL BOOK-KEEPING. 
 
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40 
 
 THEOREllCAL AND PRACTICAL BOOKKEEPING. 
 
 II' 
 
 !i' 
 
 "* In closing the accounts, the equilibrium of the Ledger has not been disturbed, *" as, in every 
 instance where an amount was entered in an account, either upon the debit or credit side of the 
 Ledger, the same amount was immediately transferred to the opposite side of the Ledger, either in 
 some other account or below the rulings of the same account, tlius keeping the Ledger constantly in 
 balance. A trial balance, to prove that your Ledger is now in balance, should be taken, and if correct 
 will correspond with the following: 
 
 TRIAL BALANCE OF LEDGER BALANCES, APRIL 1, 188-. 
 
 "'LIABILITIES (Cr. Balances). 
 
 Bills Pavable, 
 
 Personal Accounts, 
 
 161 
 
 RESOURCES (Dr. Balances). 
 
 Cash, 341.43 
 
 Mdse. Inv 1,430.50 
 
 Expense Inv. 300.00 
 
 Bills Receivable, 130.30 
 
 College Bank 3,958.93 
 
 Personal Accounts, 660. 94 
 
 Total Resources, 6,813.09 
 
 Total Liabilities, 
 
 Student's Present Worth, 
 
 300.00 
 1,341.75 
 
 1,641.75 
 5,170.34 
 
 6,813.09 
 
 Note. — After yon have proved your Ledger to be in balance, as above indicated, you will be ready to proceed with 
 the month of April. Before doing so, however, write out upon foolscap paper answers to the following questions, and 
 present them, with your books, to the teacher for approval. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 5. — ''* What is Book-keeping? *"* Describe the use of tlie Day Book. *'" The Journal. 
 '*"** The Ledger. **Givc the three kinds of accounts used in Double Entry. 
 
 Page 6. — *^** Give the rule for journalizing Personal accounts. '*"*• Property. *'** Allowances. 
 " Into how many general classes are the three kinds of accounts divided? '"When does an account 
 show a Loss? *' When a Gain? '^'' What is a Resource? '^ Liability? "*"" Give the rule for journalizing 
 the Proprietor's account. ^'^ Cash. *''-*^ Mdse. 
 
 Page 7.—"-" Expense. '«*" Bills Receivable. "•' Bills Payable. "" Interest, Discount, etc. 
 Page 30. — *' What is a Trial Balance? "'** Why does it not prove the Ledger abtolutely correct? 
 " When may an account be omitted from the Trial Balance? 
 
 Page 31. — *' Wliat is the first thing to be done to locate an error in the Trial Balance? **'*'' The 
 second? ** What effect would the omission of an amount in posting have upon the Trial Balance? 
 "* W' hat if posted to the wrong side of the Ledger? '°* What is the peculiarity of an error caused by 
 figures having been transposed? "" Wlien all of the short tests for finding the error fail, what is it 
 necessary to do as a final resort? '"^"'** Why is it necessary to indicate by a check mark in the Ledger 
 that each item has been examined? 
 
 Page 37. — ""*'" Give the rule for journalizing Bank account. "* How are the checks of other 
 parties in your hands treated? 
 
 Page 31. — "*""* Wliat is an Inventory? "*■'" How found usually, and at what price are the goods 
 estimated? 
 
 Page 33. — "^ W^hat are exhibited in the Balance Sheet? '"In what column are the Inventories 
 entered? '^'■'** How is tlie gain on Mdse. found? 
 
 Page 33. — '** How is the loss on Expense found? 
 
 Page 34. — What does the difference between the footings of the columns of Resources and Liabili- 
 ties show? (See Summary, also 137, page 33.) What does the difference in the footings of the 
 columns of Losses and Gains show? (See Summary, also 135, page 33.) How is the Present AVorth 
 of the proprietor ascertained? (See Summary, also 136, page 33.) 
 
 Page 35. — '" Wliat new account is it sometimes necessary to open in closing the Ledger? '**In 
 what order should the accounts of the Ledger be closed? "* How are accounts having resource inven- 
 tories closed? '"^ How are accounts having liability inventories closed? "' How are accounts showing 
 gains, having no inventories, closed? '** How are accounts showing losses, having no inventories, 
 closed? '*• How are accounts showing resources closed? '*" How are accounts showing liabilities 
 closed? 
 
 Page 36. — "' How is the Loss and Gain account closed? '" How is the Proprietor's account closed? 
 How are partners' accounts closed? 
 
 I 
 
 ( 
 
 
 THEORETICAL AKD PRACTICAL BOOKKEEPING. 
 
 41 
 
 Note.— Before proceeding with the month of April, study carefully the following explanations and examples on 
 pages 41, 42, 43 and 44. 
 
 DRAFTS. 
 
 163 
 
 A Draft is the written order of one party upon a second, requesting the payment of a sum of 
 money to a third. '"The party drawing the draft is the '* Drawer." '"The party upon whom the 
 draft is drawn is the " Drawee." '** The party to whom the draft is made payable is the " Payee. "* 
 
 '" The draft is employed, usually, as a medium of exchange between distant places, obviating the 
 expense and risk of sending money. 
 
 '** Drafts may be drawn with reference to time in three different ways, viz: "» At sight, *™a speci- 
 fied number of days after sight, or '" a specified number of days after date. '"Drafts drawn "at 
 sight " are presented to the Drawee for payment. '" Time drafts are presented for "acceptance." 
 
 "* Acceptance, when applied to drafts, signifies the written acknowledgement of the Drawee, that 
 he agrees to the conditions named in the draft. "' This he does by writing across the face of the draft, 
 usually in red ink, to distinguish the acceptance from the other writing, the word Accepted, the date, 
 where payable, and his signature. "*It is not necessary to date the acceptance when the draft is 
 drawn a given number of days after date. 
 
 
 
 
 
 ^ 
 
 t-t'^ryv^^'n/ 
 
 z^yiy 
 
 In the above draft, Simon Duncan is Drawer, J. V. W^entworth is Drawee, and Eric Hunter is 
 Payee. The parties sustain the following relations to each other: Duncan owes Hunter, and 
 Wentworth owes Duncan. Duncan, who resides in Baltimore, draws the draft and remits it to 
 Hunter, who resides in Albany. Immediately upon its receipt, Hunter presents it to Wentworth, 
 who also resides in Albany, for acceptance. Hunter will then hold Wentworth's written promise to 
 pay, which, if paid at maturity, will cancel the indebtedness of both Duncan and Wentworth. 
 
 "' The Payee has no legal claim against the Drawee until after the draft has been accepted. 
 
 "* There need necessarily be but two parties to a draft. "' The Drawer may make the draft pay- 
 able to himself, in which case he either sends it to the Drawee to be accepted and returned, or, if his 
 (the Drawer's) credit be unquestioned, he may dispose of it before acceptance. 
 
 '^'What are termed "Bank Drafts" constitute a large proportion of the business transacted 
 through this medium of exchange. '" All banks keep money deposited with one or more of the 
 banks located at some one of the commercial centers of the country, as New York, Boston, Chrcago, 
 San Francisco, New Orleans, etc., against which they draw drafts to sell to their cuetomers for remit- 
 tance to creditors, these drafts passing everywhere current as cash. 
 
 SPECIAL INSTRUCTIONS FOR JOURNALIZING DRAFTS. 
 
 DRAWER'S ENTRIES. 
 
 '** When he draws a draft and remits it to the Payee, to apply 
 on account, he makes 
 
 '" When he draws a draft and disposes of it, less discount, 
 receiving cash for proceeds. 
 
 Payee, Dr. 
 
 Cash, 
 Discount, 
 
 To Drawee, 
 
 To Drawee, 
 
42 
 
 THEORETICAL AND PRACTICAL BOOK-KEEl'lNO. 
 
 IS4 
 
 tas 
 
 tM 
 
 DRAWEE'S ENTRIES. 
 When he accepts a draft drawn on Iiim on account. 
 
 When lie pays a sight draft drawn on liini in cash. 
 
 When lie prepays a time draft, in cash, less discount, instead 
 of accepting ir. 
 
 m 
 
 When he pays his acceptance at maturity, in cash. 
 
 Drawer, 
 Drawer, 
 1 ) rawer, 
 
 Bills Payable, 
 
 To Hills Payable, 
 To Cash, 
 
 To Discount, 
 " Cash, 
 
 To Cash, 
 
 Cash, 
 
 
 Discount, 
 
 
 
 To Drawer, 
 
 Bills Keceivable, 
 
 
 a^o Cash, 
 
 
 " Discount, 
 
 PAYEE'S ENTRIES. 
 
 -When he receives a time draft from Drawer, to apply on I Bills Receivable, 
 account, and has had it accepted. m ,. 
 
 ^ I io J)rawer, 
 
 "" When the Drawee prepays the draft in cash, less discount, 
 instead of accepting it. 
 
 "" When he buys the draft of the Drawer, instead of receiving 
 It on account, the Drawer allowing him the discount. "^ 
 
 GENERAL RULE FOR JOURNALIZING DRAFTS WHEN DRAWN ON ACCOUNT. 
 
 »' Debit the person who draws the draft on you. - Credit the person on whom you draw a draft, 
 in th^?r~^' following examples and explanations are given to illustrate the application of the principles embodied 
 
 ;: :^i^r ;^f r;;;i:::ir^:'.:;;;-^ '-''" -' ^^ -^^-^ ^- - ^^ -^ - ---- ^ --«^ 
 
 EXAMPLES ILLUSTRATING JOURNAL ENTRIES OF ALL PARTIES TO DRAFTS. 
 
 UNDER DIFFERENT CONDITIONS. 
 
 EXAMPLE No. 34. 
 
 cS <D 
 
 1- ^ 
 
 g ^ 3 -^ ^ 
 
 Jr «i -* "» 
 
 
 1500.00. 
 
 Detkoit, Mich., Aj)r. 1, 188-. 
 
 O «> S3 
 
 :3 H 
 
 
 Thirty days after date, for value received, i)ay to Smith & Ogden, or order. 
 Five Hundred Dollars, and charge the same to my account. 
 
 To Frost & Selden, fi. h. DINGMAN. 
 
 Philadcli)bia, Pa. 
 
 Due May 4, 188-. 
 
 Dingman's entry, if he sends above draft to 
 Smith & Ogden to apj)ly on account. 
 
 Smith & Ogden, 
 
 To Frost & Selden, 
 
 500 
 
 Frost & Selden's entry when they accept the 
 drjift. 
 
 600 
 
 R. II. Dingman, 
 
 To Bills Pay., 
 
 500 
 
 500 
 
 Smith & Ogden's entry at time of receiving the 
 draft fr«im Dingman on account. 
 
 Bills Rec'v, 
 
 To R. II. Dingman, 
 
 500 
 
 500 
 
 m 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 EXAMPLE No. 35. 
 
 43 
 
 ii!2oo.oo. 
 
 Richmond, Va., Apr. G, 188- 
 
 At sight, pay to the order of E. T. Crouch, Two Hundred Dollars, for 
 
 value received, and charge same to the account of 
 
 GOSS & FARNS WORTH. 
 To Eaton, Clark & Co., 
 
 New York. 
 
 Goss & Farnsworth's entry at time of drawing 
 the draft and remitting it to Croucii, on account. 
 
 
 
 E. T. Crouch, 
 
 To Eaton, Clark & Co. 
 
 200 
 
 00 
 
 20000 
 
 E. T. Crouch's entry at time of receiving draft 
 of Goss & Farnsworth, on account. 
 
 
 
 Cash, 
 
 To Goss & Farnsworth, 
 
 200 
 
 00 
 
 200 00 
 
 i 
 
 Eaton, Clark & Co.'s entry at time of paying 
 the draft, in cash. 
 
 
 
 Goss & Farnsworth, 
 
 To Cash, 
 
 200 00 
 
 1 
 
 200 
 
 00 
 
 EXAMPLE No. 36. 
 
 1600.00. 
 
 
 
 
 Burlington 
 
 , Iowa, Apr. 
 
 10, 
 
 188-. 
 
 * 
 
 At ninety days' 
 
 sight, pay 
 
 to the 
 
 order of A. 
 
 M. Gordon, 
 
 Six 
 
 Hundred 
 
 Dollars, 
 
 value received. 
 
 and charge 
 
 ! to ac 
 
 count of 
 
 
 
 
 • 
 
 
 
 
 
 BIGELOW & 
 
 CO. 
 
 To 
 
 Hatch, Mills & Pardee, 
 
 
 
 
 
 
 
 
 Chicago, 
 
 111. 
 
 
 
 
 
 Bigelow & Co.'s entry at time of drawing the 1 
 draft and sending it to A. M. Gordon, on account. 
 
 
 
 A. M. Gordon, | 
 To Hatch, Mills & Pardee, 
 
 600 
 
 00 
 
 000 00 
 
 A. M. Gordon's entry if, when he presents the 
 draft. Hatch, Mills & Pardee prc})ay it in cash, 
 less discount 93 days, instead of accepting it. 
 
 
 
 Cash, 
 Discount, 
 
 To Bigelow & Co., ' 
 
 590 
 9 
 
 83' 
 17 
 
 1 
 
 600 
 
 00 
 
 Hatch, Mills & Pardee's entry at time of pre- 
 j)aying the draft as above stated. 
 
 
 Bigelow & Co., 
 
 To Cash, 
 
 " Discount, 
 
 ' 600 
 
 00 
 
 590 
 9 
 
 83 
 
 i: 
 
 EXAMPLE No. 37. 
 
 day book record. 
 
 ITEMS. total- 
 
 journal ENTRY FOR SAME. 
 
 DR. 
 
 CR. 
 
 Accepted J. T, Brown's 
 draft on us, at 10 days' 
 sight, favor of D. Woods, 
 to apply on account. 
 
 400 
 
 J. T. Brown, 
 
 To Bills Payable, 
 
 400 
 
 i 
 
 
 400 
 
 We owe Brown the above amount. He therefore has the right to order us to pay it, either to 
 himself or to another. In accepting the draft — that is, in agreeing to its conditions in writing — we 
 issue our written promise to pay, and must therefore credit Bills Payable. We debit Brown because 
 we get out of his debt by agreeing in writing to })ay this amount to another party. 
 
44 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 DAY BOOK RECORD. 
 
 EXAMPLE No. 38. 
 
 JOUBNAT. ENTRY FOR SAME. 
 
 Drew a draft at 60 days ■ 
 after date, on Marsh 
 Bro's, Kansas City, and 
 discounted it at City 
 Bank, 
 Discount for 63 days, 
 Rec'd cash for proceeds, 
 
 1 
 
 1)4 
 
 {mm 
 
 100 
 
 Discount, 
 Cash, 
 
 To Marsli Bro's, 
 
 1 
 
 98 
 
 04 
 96 
 
 100 
 
 Marsh Bro's owe us the above amount, due in 60 days. Having immediate use for the money, we 
 draw a draft upon them and get it discounted at City Bank. By paying the above draft, Marsh Bro's 
 will get out of our debt. We therefore give them credit, Cash and Discount being debited. Should 
 Marsh Bro's fail to honor the draft, however, we should be obliged to refund the money to the bank, 
 in which case Marsh Bro's would be debited back, thus placing their account as it was before the draft 
 was drawn. 
 
 EXAMPLE No. 39. 
 
 ' D.\Y BOOK RECORD . JOURNAL ENTRY FOR gAME. 
 
 Pre{)aid our acceptance in 
 
 favor of \Vm. Heath, 
 Discount off, 40 days, 
 Paid balance in cash. 
 
 
 
 250 
 
 1 
 
 1 
 
 
 164 
 
 
 1 
 
 ( 
 
 
 
 248 
 
 36 
 
 
 
 1 
 
 
 Bills Payable, 
 
 To Discount, 
 '' Cash, 
 
 250 
 
 164 
 24836 
 
 At the time of accepting the almve draft, we issued our written promise to pay, and therefore Bills 
 Payable must have been credited. We now debit liills Payable, because our written promise to pay 
 has been redeemed. 
 
 EXAMPLE No. 40. 
 
 .TOIRNAL EXTRY FOR SAME. 
 
 DAY BOOK RECORD. 
 
 Paid Geo. D. Baker's draft 
 on us, at 60 days' siglit, 
 less discount. 
 
 Face of draft. 
 
 Discount off, 63 days. 
 
 Paid balance by check on 
 City Bank, 
 
 
 
 300 
 
 
 
 
 3 
 
 11 
 
 
 
 
 
 296 
 
 89 
 
 
 
 
 
 (Jeo. 1). Baker, 
 
 To Discount, 
 '* City Bank, 
 
 300 
 
 311 
 
 296 89 
 
 We pay the above draft drawn upon us by Baker when it is presented, instead of accepting it, and 
 therefore credit Discount and City Bank instead of crediting Bills Payable, as in Example No. 37 
 above. 
 
 EXAMPLE No. 41. 
 
 , DAYBOOK RECORD. JOURNAL ENTRY FOR SAME. 
 
 Had C. T. Meldrum's ac- 
 ceptance discounted at 
 City Bank, 
 Discount off, 48 days. 
 Proceeds placed to our 
 credit. 
 
 
 
 175 
 
 
 
 
 1 
 
 38 
 
 
 
 
 
 173 
 
 62 
 
 
 
 
 
 (■ity Bank, 
 Discount, 
 
 To Bills Receivable, 
 
 173 
 1 
 
 62 
 38 
 
 176 
 
 When the above draft was received by us and accepted by Meldrum, we must have debited Bills 
 Receivable, because the written promise to pay of another person had come into our possession. We 
 therefore credit Bills Receivable now, because such written promise to pay is disposed of. 
 
 Note.— After you have carefully read the foregoing rules and explanations, you may proceed with the month of 
 April. You are to admit Mr. D. W. Leonard as an equal partner in the business, he to invest an amount of cash equal 
 to your present worth, as shown by your Balance Sheet of March 31st. 
 
 In a business conducted by a partnership, an account is usually opened in the Ledger with each partner, in which 
 he is credited with his share of the investment and also his share of the gains, or is debited with his share of the losses. 
 
 A " Stock " account is sometimes opened in a partnership business, instead of an account with each partner, which 
 is credited with the combined investment of the partners, and at stated periods is credited with the entire net gain of 
 the business, or debited with the net loss. In such case a " Stock Ledger" is kept by the partners, upon which each 
 has an account showing his interest in the business. 
 
 In the month of April the first plan will be adopted. 
 
 1 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING 
 
 45 
 
 
 
 yjAyU> /. /J'r- 
 
 / 
 
 ^2/Ut-fP^e^nM^ ^.i^Ttyy-cJy^^'T^U^^^iy^ . ^td-^Ptn^/9^ ^^^ 
 
 />^^ y^^X^^^^ j^^/ 
 
 / 
 
 / 
 
 
 
 
 
 /c^/ 
 
 / 
 
 Aj/J2.i;>^.yi^^^ (zajJi^ ..^t^n/ C.^rC-U^^ 
 
 
 
 J. 
 
 / O 
 
 ^cfO G 
 
 uoo 
 
 jq^OTE. The resources and liabilities, constituting your investment, are shown in the balances below the rulings iu 
 
 your Ledger, hence no entry of them is required in your Journal. 
 
i I 
 
 l! 
 
 , 
 
 46 
 
 60, pa. 7. 
 75. pa. 7. 
 110, p. 27. 
 
 Ex.37, p. 
 
 Ea. .38, p 
 44. 
 
 Ex. 37, p. 
 
 43. 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 APRIL 5. 188-. 
 Paid H. AV. Stevens, cash on jiccount, 100. 
 
 Had For,l & Co.-. note of a.l inst. .iiscountcd at Clleg.. Hunk. Face of note, 1()0; discount 
 ^5 dajs, 41c. ; proceeds credited to our account, »1)..V.I. ^JSee Jiote No. 1, below.) 
 
 6. 
 
 days for 150.00; balance on "/c. 
 
 7. 
 
 Accepted David Bailey's draft on us, at 10 days' sight, favor E. U. Andrews, payable at College 
 Bank, to ai)ply on % 500.00. ^ 
 
 8. 
 Drew a draft at 30 days from date, on Ford & Co., Baltimore, and had it discounted at College 
 Bank, l^ace of draft, 100.00; discount, 33 days, 54c.; rec'd cash, y9.4(i 
 
 » 
 
 185, p. 42. 
 Ill, p. 27. 
 
 Accepted A\^ A. Bancroft's (Boston) draft on us, favor of himself, at 3 days^ sight, to balance 
 
 "c, do. 00. 
 
 9. 
 Bo't of W. A. Bancroft, Boston, 20 chests Y. H. Tea, 1200 lbs., @ 65c. Gave him in pay- 
 ment, check on College Bank, 500.00. Balance on % 
 
 10. 
 
 Ex. 37, p. 
 43. 
 
 Deposited cash in College Bank, 1500.00. 
 
 » 
 
 11 
 
 67, pa. 7. 
 76, pa. 7. 
 Ill, p. 27, 
 
 U2, p. 41. 
 
 187, p. 42. 
 
 Accept^ed IT. W. Stevens' (Detroit) draft on m, at 30 days from Apr. 8th, fuvor Howe & Orton, 
 
 12. 
 
 Sold Clark, Sons & Bradley, New York, on % 10 chests Y. H. Tea, 600 IbV @ 75c • 5 mats 
 Java Coffee, 400 lbs., @ 32c. \ 
 
 13. 
 
 Prepaid note given Wells, J. & Co., Mar. 6. Face of note, 300.00; discount off to maturity, 
 25 days, 1.23. Paid balance by check on College Bank. 
 
 14. 
 
 Drew a draft on Clark, Sons & liradley. New York, at sight, and remitted it to David Bailey 
 on "/c, 300.00. ^' 
 
 »> 
 
 188, p. 42. 
 
 Paid our acceptance of 8th inst., favor of Bancroft, due to-day, in cash, 38.00. (Sec Note 
 
 15. 
 
 Rec'd cash of Sickles, Stover & Jackson, on «t, 50.00. 
 
 16. 
 
 Rec'd from Moore & Collins, Buffalo, to apply on % their draft at 3 days' sight, on L. M. 
 llorton, which Ilorton acce])ted, 200.00. 
 
 17. 
 Rec'd cash of Moore & Collins for their note of Mar. 25th, due to-day, 130.30. 
 
 to our credit in the Bunk i.s equivalent to making a depo.sit. 
 
 >..twl?!. ^''' ^■~^'"' ^^V^^f' '' ^'- ''^'"'"'*' •'"'' '""^''^^ i"'"^''' '^ ^'-'^ redeemed. Studc-nt mu.st di.stingui..h 
 between th« expressions - Paul our acceptance," and "Paid draft on ua." K.member that a draft drawn Z .« 
 18 not a Bdls Payable until we have accepted it. » u "i iis 
 
 Ex.33, p. 
 44. 
 
 187, p. 42. 
 ill, p. 27. 
 
 30, pa. 6. 
 60, pa. 7. 
 78, pa. 7. 
 
 182, p. 41. 
 75, pa. 7. 
 
 3R. pa. fi. 
 eo, pa. 7. 
 
 47, pa. 6. 
 68, pa. 7. 
 24, pa. 6. 
 
 59, pa. 7. 
 34, pa. «. 
 
 3», pa. 6. 
 75, i)a. 7. 
 fiO, pa. 7. 
 
 THEORETICAL AND PRACTICAL BOOK-K EEFING. 
 
 18. 
 
 47 
 
 Prepaid our acceptance of 11th inst., favor Howe & Orton. Face of acceptance, 200.00; dis 
 count to maturity, 23 days. Paid balance in cash. (See Note No. 1, below.) 
 
 19. 
 Sold R. H. Barnard, City, on % 50 bbls. Salt, @ 2.55. 
 
 20. 
 Our acceptance of 7th inst., favor Andrews, due to-day, at College Bank, has been charged by 
 the Bank to our ^^c. (See Note No. 2 below.) 
 
 21. 
 
 F. W. Warren paid his note of 3d inst., and interest, due to-day, in cash. Fane of note, 
 200.00; interest to date, 18 days. 
 
 Drew a draft at 60 days from date, on Sickles, Stover & Jackson, Detroit, and remitted it to 
 H. W. Stevens, on <^, less discount. Face of draft, 100.00; discount off, 63 da3s. 
 Charged the balance to his ^c. 
 
 22. 
 
 Rec'd cash of L. M. Horton, for his acceptance of 16th inst., due to-day. 
 
 Paid Rent of Store in cash, 25.00. 
 
 » 
 
 23. 
 
 Rec'd of R. H. Barnard, his note at 20 days, with interest, to apply on ^, 50.00. 
 
 24. 
 Student drew cash from the business for his private use, 50.00. 
 
 25. 
 Drew a draft on F. W. Warren, Avon, at 30 days' sight, favor of ourselves, to balance ^; and 
 sent draft to him to be accepted and returned. Amount of draft, 75.00. (This is simpl} 
 a memorandum; no journal entry is required until draft is returned. 
 
 26. 
 
 Bo't of Beekman & Ordway, Phil'a, 20 hhds. N. 0. Molasses, 1260 gals., (nt 50c. Accepted 
 their draft on us, favor themselves, at 60 days' sight, 315.00. Balance on «^. 
 
 Deposited cash in College Bank, 1000.00. 
 
 y* 
 
 27. 
 
 F. AV. Warren returned draft accepted. Acceptance dated Apr. 26. (See Apr. 25, above. ) 
 
 >5 
 
 Paid our note of 4th inst., favor Wells, Johnson & Co., and interest, due to-day, by check on 
 College Bank. Face of note, 400.00; interest to date, 23 days. 
 
 28. 
 
 Paid W. A. Bancroft, on % by check on College Bank, 175.00. 
 
 Paid Bookkeeper's Salary in cash, 75.00. 
 
 29. 
 
 30. 
 
 A fire i^ our store last night damaged our entire stock of Tea. No insurance. Sold the 
 entire lot to-day at auction for cash; 1200 lbs., @ 25c. 
 
 »» 
 
 Discounted F. W. Warren's acceptance, received 27th inst., at College Bank. Face of accept- 
 ance, 75.00; discount off, 29 days. Rec'd cash for the proceeds. 
 
 Note No. 1.— Compute Interest and Discount at 6 per cent., on a basis of 365 days for a year. 
 
 Note No. 2. — Since in the acceptance of this draft we made it payable at College Bank, the bank charges 
 it to our account the same as a check. 
 
I • 
 
 I = Total, 1926 38 
 I = Total, 265 00 
 
 48 
 
 '»'"^<^RETICAL AND PRACTICAL KOOK KKEPINQ. 
 
 INVENTORIES, APRIL 30, 188-. 
 
 Note. -Copy the Inventory in your Day Book in the form shown on page 31. 
 
 MDSE. ]^^^ ^'''J^^- l^l^iir, @ 7.00; 30 bbls. Sugar, 7500 lbs., @ ll^c • 
 
 ( 400 lbs. J. Coffee, @ 28c. ; 12G0 gals. Molasses, @ 50c. 
 
 EXPENSE. J ^^^^ ^^^^' valued 10 ^ below cost. 250.00-25.00=225.00 
 ( " Books, ** 20^ - - 50.00-10.00= 40.00. 
 
 NoTE.-Aftef copying the Day B(H,k. an.l Inf.^re proceeding to jonrnHlize. druw up. on cap paper and nre^n. .. .K 
 teacher for appnn.al. the draf.s referred to in transacti.n.s April 11,1. 14th. KMh and 2 .h. Z form 'of d ^^ naL 
 41. 42 and 4.}. Next j.>urMali/e an.l post. If an account get. crowchd for space transfer it toTnJw «f ? ^ f 
 mstrucons (154, page 8(5) for transferring an account. Opcnleonurd's account i^the mTdd e o ^.^Tn ""'l'^ ^"^ 
 Give personal account.s hereafter one-fourth of a page spu-e; oOurs one half of a page. ^ '^^'• 
 
 On May Ist Alex Mitchell is to be admitted as a partner; you may therefore make out Balance 
 Sheet similar to that for March. In the form of Balance Sheet given below, only a few of the 
 amounts are extended, the student being required to complete the extensions, foot the columns and 
 prove h.s results, as indicated in the Summary below. (Kefer to -Guide for making Balance Sheet 
 for March, on page 32, aud also to -Trial Balance and Balance Sheet for March,'' on page 34 ) 
 
 ?rTtwo 1 '' ^'7 ''' 'n 'r' 't "'"'""'^ '" >""^ ^^''^'^ '" P^'-*^^' ->d --y the footings to the 
 hrst tHo columns of your Balance Sheet, and foot those columns, to ascertain whether your Ledger is 
 
 columt'^Shtld r r;T' '^ r^'"^' the Resources, Liabilities, Losses and Gains' to the other 
 columns. Should the first two columns not foot e<,uaHy-in other words, should your trial balance 
 not prove-turn to page 21 and consult instructions 94 to 109, to assist you in finding the error. 
 
 TRIAL BALANCE AND BALANCE SHEET, APRIL 30. 188-. 
 
 lu r. 
 
 1 
 1 
 4 
 5 
 
 Student, 
 
 D. W. Leonard, 
 
 Mdse. 
 
 H. W. Stevens, 
 
 Expense, 
 
 Jas. T. Hoag, 
 
 Moore & Collins,- 
 
 Wells, J. & Co. 
 
 Bills Payable, 
 
 Bills Receivable, 
 
 David Bailev, 
 
 VV. A. Bancroft, 
 
 Interest, 
 
 Discount, 
 
 Sickles, S. & J. 
 
 Clark, Sons & B. 
 
 College Bank, 
 
 Cash, 
 
 R. H. Barnard, 
 
 Beekman & 0. 
 
 DR. rOOTINO 
 
 50 
 
 3943 
 398 
 400 
 
 9G 
 
 CR. FOOTING. 
 
 905 
 
 5170 
 
 5170 
 
 1743 
 
 435 
 
 34 
 34 
 
 RB80URCK8. 
 
 30 705 
 
 51 
 
 30 
 
 59 
 
 MABILITIBg. 
 
 SJOO 
 
 3G 
 
 04 
 
 I^>SHK8. 
 
 GAI.NS. 
 
 92 
 
 SUMMARY. 
 
 Total Losses, 
 " Gains, 
 
 Net Loss, 
 
 Total Resources, 
 " Liabilities, 
 
 Present Worth of Firm 
 
 409 90 
 
 409 90 
 
 11333 07 
 145:^ 29 
 
 9880 78 
 
 Student's Net Investment, 
 " i Net Loss, 
 
 5120 34 
 204 95 
 
 Present Worth, - 4915 39 
 
 D. W. Leonard's Net Invest., 5170 34 
 
 i Net Loss, 204 95 
 
 n 
 
 it 
 
 Present Worth of Firm 
 
 Pres. AVorth, 
 
 4965 39 
 9880 78 
 
 on nfx7p;^''"'^ "" *''"""'' ''""*"^' '""" ""* ^"""' "'"^ '^^ P^'"^"^'-'"*' "^^^•"""''* -'- '" »>« -»-«^- ^^ iu«tructioas 
 
 TirKouprncAL and practical BOOK-KKKPIXG. 
 
 40 
 
 If iiio accounts ill ytnir Li'dgcr arc correct, the difference between the Dr. and C-r. footings ot those 
 accoimts not exteii(k'd in tiic above Balance Sheet Avill be as follows: Cash, 1129.51; Wells, J. & Co., 
 208.75; Bills Payable, 315; Moore & C, G3. 50; Bailev, 412.50; Discount, 30c. ; Bank, 7083.24; Bancroft, 
 105; Clark, S. & B., 470.19; Sickles, S. & J., 20; Barnard, 77.50; Beekman & 0., 315; Hoag, 98.75. 
 
 CLOSE ONLY THE ACCOUNTS SHOWING LOSSES AND GAINS. 
 After completing your Balance Sheet for April, jiroceed to close in the Ledger those accounts only 
 which exhibit losses and gains, together with the Loss and Gain and Partners' accounts, in accordance 
 with the General Rules for Closing the Ledger, on pages 35 and 30. For assistance in closing Mdse., 
 see 145, page 35; Expense, 145, i)age 35; Interest, 148, j>age 35; Discount, 148, jjage 35; Loss and Gain 
 account (for partnership), 151, i)age 30; Student's and Leonard's accounts, 152, page 30. 
 
 Note. — Tlie debit and credit sides of your Ledger remain equal after closing the above mentioned account.^, tlie same 
 as though all the accounts had been closed, nince the amount entered to close an account was immetliatcly transfernti, 
 either to tlie opposite side of the account closed, or of some other account. The accounts wliich remain unclosed show 
 only Kesources and Liabilities, the difference between which is the Present Worth, as exhibited by the partners' accounts. 
 
 Before proceediu"^ with May, present your books to the teacher for approval, and be prepared to answer the following 
 
 QUESTIONS FOR REVIEW. 
 
 Page 41.— ""I What is a Draft? '""'« W^hat are the parties to a draft called? '" How is the draft 
 employed? "*"'" State the three ways of drawing drafts in reference to time. • '"* What is meant by 
 "Acceptance" when applied to drafts? 
 
 Page 42.— '"-"'' Give general rule for journalizing drafts when drawn on account. 
 
 MAY 1. 188-. 
 
 Alexander Mitchell has this day been admitted as a partner in the business of Student and 
 Leonard. The name of the new firm is to be Student, Leonard & Co. The gains and 
 losses are to be shared as follows: Student, f ; Leonard, f ; and Mitchell, \. 
 
 » 
 
 Alex. Mitchell invests cash, 1000, and the store now occupied by the firm, valued at 3000. 
 
 Sold Barton & Hathaway, Binghamton, 25 bbls. Flour, @ 8.40. Rec'd in payment, cash. 
 100.00. Balance on % 
 
 54, pa. 7. 
 40, pa. 6. 
 
 47, pa. 6. 
 
 68, pa. 7. 
 
 Took out Policies of Insurance of 2,000.00 on store, and 5,000.00 on contents, for one year, 
 with A. S. Gatchell, agent. Paid premium on same in cash, 60.00. 
 
 M 
 
 Bo't of Grouse Bro's, Syracuse, 100 bbls. Salt, @ 2.15. Accepted their draft on us, at 15 
 days' sight, payable at College Bank, for same. 
 
 4. 
 
 Sold Gates & Sheldon, on their note at 20 days, with interest, 50 bbls. Salt, @ 2.60. 
 
 6. 
 Paid H. W. Stevens, cash to balance <^. (See note below.) 
 
 7. 
 Bo't of Henry D. French, Buffalo, 25 bbls. Beef, @ 14.25; 30 bbls. Pork, @ 11.50. Gave 
 him in payment, our note at 15 days, with interest, 345.00. Balance on «/•. 
 
 9. 
 
 Rec'd cash of Moore & C, for their note of April 0, due to-day. (See note below.) 
 
 10. 
 Paid W. A. Bancroft's sight draft on us, by check on College Bank, 50.00. 
 
 Note.— Student will find it necessary, hereafter, to consult his books, to ascertain amounts left blank in 
 the record, such as balances due on personal accounts, which will be found in the Ledger if the work h iS 
 all been posted; also particulars regarding notes, which will be found in the Day Book record at the time of 
 giving or receiving them. 
 
I » 
 
 50 
 
 iia V. 'ST. 
 
 112, 1>. -T. 
 
 Zl, pa. 6. 
 64, |»a. 7. 
 m, 1>. 27. 
 
 THKOUE-nOAL AND PRACTICAL BOOK-KEEPINO. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 51 
 
 Deposited in Culleye Bunk casl 1(50.00. 
 
 12. 
 
 14. 
 
 Bo't a draft on Now York, 200.00, at ^ 'ji excliunge. Paid for same by check on College Bank, 
 200.50. Keniitted dratt to Beekman & Ordway, on % 
 
 16. 
 Reo'd cash of Sickles, Stover & Jackson, to balance «/^ (see note bottom i)age 40). 
 
 » 
 
 •7, pa. 7. 
 7«, pa. 7. 
 Ill, p. 27. 
 
 Rec'd cash of K. 11. Barnard, for his note of Apr. 23d, and interest, due to-day. 
 
 18. 
 
 Sold E. F. Sharpsteen, Elmira, 630 gals. N. 0. Molasses, @ 00c. ; 2500 lbs. Sugar, @ 13Jc. 
 
 Kec'd in i)ayinent, his note at GO days, indorsed by B. W. Crossmau, 37«.00. Balance 
 
 on ^. (See forms of Indorsement, page 150.) 
 
 20. 
 Our acceptancfi of 2d inst., favor Grouse Bro's, due to-day, has been charged to our <^ at 
 
 College Bank. 
 
 Rec'd cash of Barton & Hathaway, to up])ly on "jh, 50.00. 
 
 21. 
 Prei)aid our acceptance of Aj)r. 26th, favor of Beekman & O., by check on College Bank. 
 Face of acceptance, 315.00, discount to maturity, 38 days. 
 
 24. 
 Paid cash for permanent repairs on store, 100.00. (Debit Real Estate.) 
 
 25. 
 Paid our note of 7th inst., and interest on same, due to-day, in cash. Face of not.-, 345.00; 
 interest to date, 18 days. 
 
 26. 
 Rec'd of Jas. T. Iloag, his check on Traders' Bank, to api)ly on «<•, 50.00. 
 
 D. W. Leonard drew from the business, for his j.rivate use, by check on College Bank, 100.00. 
 
 27. 
 Gates & Sheldon paid their note of 4th inst., and interest, due to-day, in cash. 
 
 28. 
 Sold Moore & Collins, on % 10 bbls. Beef, @ 17.25; 10 bbls. Pork, @ 14.00. 
 
 29. 
 Paid Wells, J. & Co.'s draft on us, at 60 days' siglit, 200.00, less discount, 63 days, by check 
 on College Bank. 
 
 » 
 
 Sold Clark, Sous & Bradley, on % 20 bbls. Sugar, 5000 lbs., @ 12|c. 
 
 30. 
 Bo't of David Bailey, 10 bbls. Sugar, 2500 lbs., @ ll^c. Paid him cash, 100.00; check on 
 College Bank, 100.00. Balance on % 
 
 31. 
 Paid Bookkeeper's Salary for month in cash, 75.00. 
 
 Deposited in College Bank, Iloag's check, rec'd 26th inst., 50.00; and casJi, 1500.00. 
 
 Note.— You may now journalize, post and take trial balance. Should your trial balance not prove, 
 consult instructions 94 to 109, page 21, for detecting the error. In posting, when an account balances in your 
 Ledger, rule it up at once. Before an account becomes too much crowded for space, rule it up and transfer 
 to a new account, as instructed in 154-155, page 30. Foot the accounts in pencil, as instructed heretofore 
 for taking trial balance. You need not make a Balance Sheet this month, nor close any of the accounts 
 in the Ledger. The diflFereuce between tlie Dr. and Cr. sides of a few of the principal accounts are here 
 given: Wells, J. & Co., 6^.75; Bills Payable, balances; Discount, 4.04; College Bank, 7556.78; Cash, 313.13; 
 Clark. Sons«fe B., 1113.94; Mdse., 1124.63; Expense, 400.50; Bills Receivable, 378.00; Interest, 34c. If your 
 trial balance proves your Ledger to be in balance, and your accounts ngree with the balances given above, you 
 may proceed with June. i 
 
 no, p. 27. 
 75, pa. 7. 
 tiO, pa. 7. 
 
 JUNE 1. 188-. 
 
 Discounted, at College Bank, S]iari)steen's note, rec'd May 18th. Discount off to maturity. 
 Proceeds placed to our credit. (See Note !No. 1, below.) 
 
 2. 
 Sold F. W. AVarren, on % 5 bbls. Sugar, 1250 lbs., @ 12fc. 
 
 Paid Henry 1). Frencb's siglit draft on us, by check on College Bank, 200.00. 
 
 3. 
 
 Rec'd cash of Clark, Sons & Bradley, on % 400.00. 
 
 5. 
 Sold A. & D. FarAvell, Canton, 10 bbls. Beef, @ 16.25; 10 bbls. Pork, @ 13.50; 10 hhds. 
 N. O. Molasses, 630 gals., @ 60c. llec'd in payment, their note at 10 days, with intiTest, 
 150.00. Balance on "/c. 
 
 6. 
 Accepted David Bailey's draft at 20 days, favor Marsh & Co., to balance ^. 
 
 7. 
 
 Bo't of Beekman & Ordway, on ^^, 5 hhds. N. O. Molasses, 315 gals, @ 55c. 
 
 8. 
 Rec'd of R. 11. Barnard, his check on First National Bank, to balance ^•. 
 
 9. 
 Rec'd of E. F. Sharpsteen, his note at 30 days, indorsed by B. W. Crossman, on «^-, 250.00. 
 
 12. 
 Bo't of Henry D. French, 25 bbls. Beef, @ 14.25. Accepted his draft on us at 10 days, for 
 175.00. Balance on <^. 
 
 13. 
 Deposited in College Bank Barnard's check, rec'd 8th inst. 
 
 14. 
 Sold Sickles, S. & J., 25 bbls. Flour, @ 8.25; 1250 lbs. Sugar, @ 12k. Rec'd in payment, 
 cash, 50.00; their note at 45 days, 75.00. Balance on <^. 
 
 15. 
 Drew a draft on Barton & H., Bingham ton, at 90 days, to balance their % Had the draft 
 discounted at College Bank, and rec'd credit for proceeds. 
 
 16. 
 Paid W. A. Bancroft, cash to balance ^, 55.00. 
 
 Note No. 1.— From June 1, the day the above note is discounted, to July 20, its maturity, the time is 49 
 days, counting the actual number of days. The student will rememlx.'r that if the time is in days, 365 ilays, or 
 If the time is in months, 12 mouths for a year, are to be taken as a basis in computmg interest and discount, 
 unless otherwise specitied. 
 
 When paper is drawn in months, the practice differs, somewhat, with places and individuals, as to 
 the manner of liiuling time, and computing interest and discount. For the sjike of uniformity and accu- 
 racy, the method explained Ixilow will be observed throughout this book. To illustrate: A note t)f $500, 
 dated May 17, at 4 mouths, is discounted June 28. The time between June 23, the day the note is discounted, 
 
 , „- ,, . .. i? *, . S^ mo. 20 da. ) The discount for 2 months is 5.00 
 
 and September 20, the mat unty of the note, -j g .. 23 " f " " •' 27 days " 2 22 
 
 2 mo. 27 days = 7.22 
 
 If the note to be discounted is an interest l)earing note, first compute the interest upon the face of 
 the note from the date it Ix-gins to draw interest to maturity; then add the interest to the face of the note, 
 and compute discount upon the amount thus obtained, from the date of discounting the note to its maturity. 
 The face, plus the interest, minus the discount, will be the proceeds of the note. 
 
52 
 
 THEOKETICAL AND PKACTICAL UUUK-KEKPING. 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 53 
 
 50 a 7 f ^'^• 
 
 23, pa. 6. 
 
 48, pa. 0. 
 
 •' I, 
 
 
 23, pa. 6. 
 •5, pa. 7. 
 HO, F.a. 7. 
 111. p. 27. 
 
 note made by Chas. II. Fisher, in lIoag\s favor, dated Mar. 25tli last, at 4 iiios. witli 
 interest, 275.00. Accrued interest allowed him. Balance on «^ (Sec note No. 1, below.) 
 
 18. 
 \. & 1). Farwell jiaid their note of 5th inst., and interest, due to-day, in easli. 
 
 19. 
 Drew sight draft on F. AV.AVarren, Avon, and deposited in College Bank to our credit. 
 Amount of draft, 50.00; liank's charges for collecuon, 25c. Balance to our credit. 
 
 20. 
 Sold E. F. Shari)8teen, on % 5 hhds. :N. 0. Molasses, 315 gals., @ 62ic. 
 
 21. 
 Student drew cash from the business, for his own use, 75.00. 
 
 22 
 Paid Henry D. French, the note rec'd of Sickles, S. & J., 14th inst., 75.00. Discount to 
 maturity allowed him. Gave him our check on College Bank, to balance his ^. 
 
 23. 
 The draft drawn on AVarren, lOtli inst., was to-day returned i)rotested for non.i)avment. Pro- 
 test fees, 1.25. Gave the Bank a check to cover draft and fees, 51.25. (Sec Note No. 2, 
 below. ) 
 
 24. 
 Accepted Beekman & Ordway's draft on us, at 30 days' sight, favor of themselves, 150.00. 
 
 25. 
 Rec'd cash of E. F. Sharpsteen, on t^, 131.25. 
 
 Paid our acceptance of 12th inst., favor of French, by check on College Bank. 
 
 27. 
 Deposited in College Bank, cash, 500.00. 
 
 29. 
 
 Paid our accei)tance of 6th inst., favor of Marsh & Co., by check on College Bank. 
 
 30. 
 Paid liook keeper's Salary in cash, 75.00. 
 
 Note No. l.-As tliis note has Kt-n drawin- interest since March 20th. it is worth considerably more than 
 Its face at tliis time. 
 
 NoTK No. 3. -The fees, under some circumstances, nii-ht projK'rly be charged to Warrens account: but in 
 this case we charge them to E.xpen.se account. 
 
 INVENTORIES, JUNE 30, 188-. 
 
 MDSE. 
 50 bbls. Salt, @ 2.15; 5 bbls. Beef, @ 14.25; 10 bbls. Pork, @ 11.50. Total Mdse. Invt.,.. 293 75 
 
 REAL ESTATE. 
 Store, owing to advance in Real Estate, estimated to be worth at present time 3500 00 
 
 EXPENSE. 
 Office Safe and Office Books, valued at 200 00 
 
 Insurance, 10 months unearned premium, 50 00 
 
 250 00 
 
 Leonard and Mitchell propose to buy Student's interest in the business, and ].ay him cash, as his 
 Present Worth shall show ui)on closing the Ledger, they assuming all the resources and liabilities of 
 the old firm. Student agrees to the proposition, as he is desirous of engaging in the Produce and 
 Commission business on July Ist. 
 
 You may therefore make out a Balance Sheet, showing the exact condition of the business, as 
 heretofore instructed. 
 
 The difference between the Dr. and Cr. sides of a few of the principal accounts in your Ledger, 
 independent of inventories, should be as follows: Bills Payable, 150.00; Discount, 41c.; Cash, 
 339.70; Mdse., 292.G3; Expense, 477.00; Bills Receivable, 525.00; Interest, 3.82; College Bank, 
 7428.83. 
 
 If correct, the results exhibited by your Balance Sheet should ])e as follows: 
 
 SUMMARY. 
 
 Total Gains, - . _ . 
 *' Losses, - - - - 
 
 986 
 231 
 
 38 
 23 
 
 15 
 
 Student's Net Investment, 
 1 Net (Jain, 
 
 " Present Worth, 
 
 J). W. Leonard's Net Investment, 
 f Net Gain, - 
 
 ** Present Worth, 
 
 Alex. Mitchell's Net Investment, 
 i Net Gain, - 
 
 4840 
 302 
 
 4865 
 302 
 
 39 
 06 
 
 39 
 06 
 
 00 
 03 
 
 5142 
 5167 
 4151 
 
 
 Net Gain of Firm, - - . 
 
 755 
 
 45 
 
 Total Resources, . - . 
 ** Liabilities, - - - - 
 
 14817 
 357 
 
 93 
 00 
 
 93 
 
 
 Present Worth of the Firm, - 
 
 14460 
 
 4000 
 151 
 
 45 
 
 
 
 
 
 
 1 " Present Worth, - 
 1 Present Worth of the Firm, - 
 
 
 03 
 
 ' 
 
 14460 
 
 93 
 
 After completing Balance Sheet, balance and rule up all of the accounts in the Ledger. (See 
 General Rules for Closing the Ledger, i)age 35; also see closed Ledger, on pages 38 and 39). After 
 completing the work, jjresent your books to the teacher for ins])ection; also i»repare for examination 
 upon all the work passed over, as outlined by the following: 
 
 QUESTIONS FOR REVIEW 
 
 Page 5.—' What is Book-keeping? * The object of it? ^ How many methods, and what are they? 
 •What are the i)rin('ipal books used? • Describe the Day Book. ' When should the record be made in 
 the Day Book? " AVhy? * Describe the Journal. '" What is journalizing? "What must be the c<mdi- 
 tion of the debits and credits in every journal entry? "" How may the Day Book and Journal be 
 combined? "'* Describe the Ledger. " What is an account? "-'» How many sides has an account, and 
 what called? ^ What is posting? " How many kinds of accounts in Double Entry? 
 
 Page 6.— *»-«« Give the general rules for journalizing. " Into what two general classes are the three 
 kinds of accounts divided? ^ When does an account exhibit a Loss? "When a Gain? ^ When a 
 Resource? '' When a Liability? ^ Upon which side is the excess when an account shows a Resource? 
 ^ When it shows a Loss? '' When it shows a Gain? '* When it shows a Liability? '«-'^ Give the rule 
 for journalizing the Proprietor's account. ^ What title is sometimes used in place of the proprietor's 
 name? ^-*> Give the rule for Cash. ^' What is included, usually, under this title? 'MVhen there is 
 any difference in this account, which side will always be greater? *^ Why? **-^' AVhat is the difference, 
 and what does it show? *'^Give the rule for Mdse. "MVhat is usually included under this title? 
 " What exception to including all goods under the general heading Mdse. 
 
 Page 7.—" To what other accounts will the rule for Mdse. ai)ply? "-" Give the rule for Expense. 
 " What is usually included under this title? " What exceptions to including all such items under the 
 general heading Expense? '"-'» Give the rule for Bills Receivable. '' What is usually included under 
 this title? " Which side of the account will always be greater, when there is any difference? ^ Whv? 
 **^ What is the difference, and wlurt does it show? *« When will the account balance? Why? *'-« (^iVe 
 the rule for Bills Payable. «» What is included under this title? 'MVhich side of the account will 
 always be greater, when there is any difference? " Why? "-" What is the difference, and wliat does it 
 show? '* When will the account balance? Why? "" Give the rule for Interest and Discount. " What 
 is Interest? "What is Discount? ^"To what other accounts will the rule for Interest and Discount 
 apply? 
 
 •I 
 
54 
 
 » 
 
 ! I 
 
 
 THEORETICAL AND PKACTICAL BOOK KEEPING. 
 
 Page 20.—" What is a Trial Balance? *'-** Why does the trial ])alanco not prove the work abso- 
 lutely correct? "'« Exi)lain footing the accounts for taking a trial balance. »« When may an account 
 be omitted from the trial balance? 
 
 Page 21.— »* What is the character of the error, generally, when it is an even Id, llO, 1100, $1000, 
 etc.? »*-" How could an error be made in transferring from tlie Ledger to the trial balance? '* If an 
 amount has been omitted in lasting, Avhat effect will it have ujum the trial l)alance? •"" What if posted 
 to tiu^ wrong side of the Ledger? '"MIow may the error have been caused, if it is divisible by 9? 
 loa-im Explain the ste])s to l)e taken in reviewing tlie work, when this course is found necessary in onler 
 to detect the error. ""*-"*» In examining the posting, why is it necessary to place a check mark in the 
 Ledger? 
 
 Page 27.—"*-"' (Jive the rule for journalizing Bank account. "* How should the checks of other 
 persons in your hands be treated? 
 
 Page 31.— "MVhat does an Inventory generally represent? "* What nuiy it represent? "MVhat 
 will an inventory show in each case? "* How is an inventory usually taken? "' What i)rice is generally 
 placed upon the goods? "* In what other way nuiy an inventory be found? 
 
 Page 32.— "Tor what purpose is a Balance Sheet nuule? '*» Describe the balance sheet. '*' Into 
 which column is the ditTcrence between the Dr. and Cr. footings of (!ash extended? Why? ""Why is 
 the Mdse. inventory entered in the Rescmrce column? '*'-'*^ Explain both nu'thods of finding the gain 
 on ^Idse. account, when there is an inventory. '" When the Cr. side of a i)erson's account is lar«rcr 
 than the Dr., to which column is the difference extended? Why? '*« When the Dr. footing is the 
 larger? 
 
 Page 33. — "* How is the actual loss on Ex]>ense account ascertained, when there is valuable j»ro])- 
 erty on hand, which was originally debited to the Expense account? "'What does the difference in 
 the Bills Payable account show? Why? '*• In the Bills Receivable account? Why? '"' If the Cr. side 
 of Interest or Discount is larger than the Dr., why is the difference a gain? "* If the Dr. side is larger, 
 why is the difference a loss? "•■• What does the difference in Real Estate account show? Why? '^ In 
 liairk account? Why? 
 
 Page 34. — What is the difference between the total gains and total losses called? (Summarv; see 
 also 135, i)age 33.) Give the two ways of finding the Present Worth of the i)roiu-ietor. (Sumnuiry; sec 
 also 130, page 33.) When the liabilities exceed the resources, what is the difference called? (See 137, 
 l)age 33.) 
 
 Page 35. — ''»-'*' How often, usually, and for what ])urpose, are the accounts showing losses and 
 gains c1os<m1 in the Ledger? "* When and for what i)ur})ose are all of the accounts in the Ix:'(lger 
 closed? "MVhat new account is to be oj)ened? '** In Avhat order are the accounts to be closed? 
 '"Ex})lain closing accounts having resource inventories. '** Having lial)ility inventories. '"Accounts 
 showing gains, having no inventories. '*^ Accounts showing losses, having no inventories. '*' Accounts 
 showing resources. '" Accounts showing liabilities. 
 
 Page 30. — '•'"How is the Loss and Gain account to be closed? How in case of a partnership? 
 '"How is the Proi)rietor's account to be closed? '"In ruling, what kind of ink is to be used? 
 '**■'" When the space assigned to an account has been filled, how is the account transferred? "* What 
 do red ink entries in the Ledger indicate? 
 
 Page 37. — '"''"After the Ledger has been closed, what is shown by the balances that have been 
 carried down below the rulings of the various accounts? 
 
 Page 40. — '*'-'*° In closing the accounts, why has the erpuility of the Tjedger not been disturbed-? 
 i«-i«3 ji(j^ (\q yon prove the closed Ledger to l)e in balance? 
 
 Page 41.—'*^ What is a Draft? '"'*« What are the parties called ? '" What is the advantage of the 
 draft ? '^''-'*' How drawn with reference to time ? '" Eor what are Sight Drafts ])r('si>nted to the 
 Drawee? '"Time Drafts? "*-'" What is meant by Accei)tance, and how made? "* When is it not 
 necessary to date the accei)tance? '" When does the Drawee become legally resimnsible to the Pavee? 
 '"'"'How may a draft be drawn so that one of the ])arties shall sustain a double relation to it? 
 J80-18I Explain the use of Bank Drafts? '"Give Drawer's entry when he draws a draft and remits it to 
 Payee on account. '*''' When lie disposes of it for cash, less discount. 
 
 Page 42. — '*** (Jive Drawee's entrj' when he acce])ts a draft drawn on him. '"* When he pays sight 
 draft on him in cash. '** When he prepays draft, less discount, instead (»f accepting it. '"When he 
 pays his acceptance at maturity. '** Give Payee's entry when he receives time draft from Drawer on 
 account. "* When Drawee pre])ays draft, less discount, instead of accei>ting it. "" When he buys draft 
 
 '•'■"* Give general rule for journalizing drafts when drawn on account. 
 
 for cash, less discount 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 Note. — Before proceeding with the mouth of July, study carefully the following exi)lanalious and examples. 
 
 65 
 
 SHIPMENTS. 
 
 Dr. 
 
 Cr. 
 
 '" Shipment is credited at the time of receiving 
 an account sales, for the net proceeds. 
 
 '"Shipment is debited at the time the property 
 is 8hi})ped, for its estinuited value (usually its cost), 
 and for all expenses. 
 
 "* When property is shipped to be sold on commission, the person who ships it opens an av'^count 
 upon his books with "Shii)ment," to reju'esent the ])roi)erty which has i)assed from his possession, but 
 not from his ownershijj. "* To distinguish different shipments, the name of the jdace or party is 
 generally used with the number of the shii)ment, thus: ** Shipment to Detroit, No. 1," "Shipment 
 to Brown & Co., Baltimore, No. 3," etc. '"The i)erson who shii)s the property is called the ''Con- 
 signor." '** After the })roi)erty has been disposed of, a statement showing the sales and all the charges 
 is rendered to the Consignor. Such a statement is called an ''Account Sales." "* The difference 
 between the sales and all the charges is called the "Net Proceeds." ** After the Shipment has been 
 credited with the net })r()ceeds, it will show either a gain or a loss. *"' If a statement of the business 
 were to be made before receiving an account sales, the value of the shipment would be treated as a 
 resource inventory. 
 
 CONSIGNMENTS. 
 
 Dr. 
 
 *"' Consignment is debited for all charges ])aid 
 when the i)roperty is received, and also for all 
 subsequent charges, and for the net j)roceeds at 
 the time of rendering the account sales. 
 
 Cr. 
 
 90S 
 
 Consignment is credited for all sjiles of projv 
 erty belonging to it. 
 
 *" When property is received to be sold on commission, the party receiving it opens an account 
 upon his books with " Consignment," to rei)rcsent the property which has come into his possessioriy 
 but not his oivnersJiip. *"* To distinguish different consignments, the name of the Consignor is gener- 
 ally used and the number of the consignment, thus: "J. D. Winslow's Consignment No. 2," etc. 
 *** The l)arty who receives the property is called the " Consignee." *" After the closing entry has be^n 
 made, debiting the C(msignment for the final charges and net proceeds, the consignment will balance. 
 '^ If a statement of the business WTre to be made before closing the consignment, aiul the charges 
 u])on it to the time of the statement exceeded the sales, the difference would be a resource. ^ It the 
 sales exceeded the charges, the difference would be a liability. 
 
 EXAMPLE No. 42. 
 
 DAY BOOK RECORD. 
 
 Shij)])ed Wood & Martin, 
 Palmyra, to be sold on 
 our account and risk, 
 2000 bu.R. Wheat, @ 1.25, 
 Paid insurance in cash. 
 
 ITEMS. 
 
 TOTAIi. 
 
 
 
 2500 
 
 
 
 
 
 
 G 
 
 25 
 
 2500 
 
 25 
 
 
 
 JOURNAL EXTRY FOR SAME. 
 
 PR. 
 
 CR. 
 
 Ship't to AV. & M., Palmyra, 
 No. 1, 
 
 To Mdse. 
 Cash, 
 
 2500 
 
 25 
 
 2500 
 
 
 25 
 
 Shipment is debited for the value of the i)roperty and also for the exj)euse of insuring same. 
 (See 103, page 55.) 
 
 EXAMPLE No. 43. 
 
 DAY BOOK RECORD. 
 
 •TOURXAL EXTRY FOR SAVE 
 
 Rec'd an account sales of 
 the 8hi})ment nuuleWood 
 & Martin. 
 
 Our net proceeds remitted 
 in cash. 
 
 2850 
 
 
 
 
 
 1 
 
 Cash, 
 
 To Ship't to W. & M., 
 Palmvra, No. 1, 
 
 2850 
 
 2850 
 
 Shipment is credited for the net i)roceeds (see 104, page 55). In this case Shipment shows a gain, 
 the net i)roeeed8 being greater than the cost (see 200, page 55). 
 
 •t 
 
 mrmmmmmmmmgm 
 
56 
 
 THEOKETICAL AND PRACTICAL BOOK KEEPING 
 
 EXAMPLE No 44 
 
 DAY BOOK RECORD. 
 
 ITKMS. 
 
 TOTAL. 
 
 Siiipix^dJ. D.Welch, Now 
 N'ornon, to bo sold on 
 oiii acrount and risk, 
 r)()(. UhU. Aj |)los, @ 2.50, 
 Paid Iroight in cash, 
 
 1250 
 50 
 
 I;K)0 
 
 JOURNAL ENTRY FOR SAME. 
 
 . DR. 
 
 Ship't t.) J 1). W., New 
 \ onion. No. 1, 
 
 To Mdse. 
 Cash, 
 
 1300 
 
 CR. 
 
 1250 
 50 
 
 THEORETICAL AUD PRACTICAL BOOK-KEEPING. 
 
 EXAMPLE No. 49. 
 
 DAY BOOK RECORD. 
 
 ITEMS. 
 
 TOTATi. 
 
 JOURNAL ENTRY FOR SAME. 
 
 DR. 
 
 Rec'd from II. G. Lvman, 
 Ovid, to be sold on his 
 account and risk, 
 1000 bu. S. AVhoat, 
 Paid freight in cash. 
 
 1 
 
 
 50 
 
 
 
 
 II. G. Lvman's Consi<m- 
 
 ment Ko. 1, 
 
 To Cash, 
 
 50 
 
 57 
 
 m. 
 
 50 
 
 f I 
 
 EXAMPLE No. 45. 
 
 DAY BOOK RECORa 
 
 JOURNAL ENTRY FOR SAME. 
 
 Hoc'd an account sales of 
 the shi})nient made J. 
 D. Welch, 
 
 Our not jiroceeds credited. 
 
 1225 
 
 J. I). Welch, 
 
 ToShip'ttoJ. D.W.,Now 
 Vernon, No. 1, 
 
 1225 
 
 1225 
 
 In this case the Shipment shows a loss, the net i)roceeds being less than ihe cost (See '>00 
 l)age 55.) v ^ . 
 
 EXAMPLE No. 46. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Ii(>c'd from Church & Co.. 
 Toledo, to be sold on 
 their account and risk, 
 
 5000 bu. W. Oats. 
 
 Paid freight in cash, 
 
 200 
 
 Church & Co.'s Ccmsign- 
 nu'iit J^'o. 1, 
 
 To Cash, 
 
 2(M) 
 
 200 
 
 Consignment is debited for the charges paid on the i.roi)ertv at the time it is received (See 202 
 page 55.) 
 
 EXAMPLE No. 50 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Sold Boyd & Son, on «(», at 
 30 days, from Lyman's 
 Consignment No. 1, 
 
 500 bu. S. Wheat, @ 1.40, 
 
 i 
 
 
 700 
 
 
 
 
 Boyd & Son, 
 
 To Lyman's Consignment 
 No. 1, 
 
 TOO 
 
 EXAMPLE No. 51. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Paid cartage, in cash, on 
 500 bu. Wheat, sold Boyd 
 & Son, from Lyman's 
 Con. No. 1, 
 
 • 
 
 
 10 
 
 
 
 
 Lyman's Consignment No. 
 
 1, 
 
 To Cash, 
 
 10 
 
 EXAMPLE No. 52. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Sold G. E. Senev, on his 
 note at 30 days, from 
 Lvman's Con. No. 1, 
 
 300 bu. S. Wheat, @ 1.45, 
 
 i 
 
 
 1 
 435 
 
 
 
 
 Bills Rec'v, 
 
 To Lvman's Consiffiiment 
 
 No. 1, 
 
 700 
 
 10 
 
 435 
 
 
 435 
 
 i 
 
 DAY BOOK RECORD. 
 
 Sold E. B. Fryo, for cash, 
 from Church & Co.'s 
 Consignment No. 1, 
 
 5000 bu. Oats, @ 42c., 
 
 EXAMPLE No. 47. 
 
 2100 
 
 JOURNAL ENTRY FOR SAME. 
 
 Cash, 
 
 To Church & Co.'s Con. 
 No. 1, 
 
 2100 
 
 Consignment is credited for all sales made from it. (See 203, page 55.) 
 
 2100 
 
 DAY BOOK RECORD. 
 
 EXAMPLE No. 53. 
 
 Re-shipped the 200 bu. 
 Wheat unsold of Ly- 
 man's Con. No. 1, per 
 his instructions, to E. 
 B. Phelps, Fairport. 
 
 Paid cartage on same in 
 cash. 
 
 JOURNAL ENTRY FOR SAME. 
 
 
 
 • 
 
 3 
 
 50 
 
 
 
 Lvman's Consignment No. 
 
 1, 
 
 To Cash, 
 
 3 
 
 50 
 
 50 
 
 m 
 ^ 
 
 EXAMPLE No. 48. 
 
 DAY BOOK RECORD. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Closed Church & Co.'s 
 Con. No. 1, and ren- 
 dered an account sales. 
 Storage, at ^c. })or bu., 
 Commission, 2 ^ on sales. 
 Church & Co.'s net j)ro- 
 coeds remitted in cash. 
 
 25 
 42 
 
 1833 
 
 1000 
 
 Cliurch & Co.'s Consign- 
 ment No. 1, 
 
 To Storage, 
 Commission, 
 Cash, 
 
 1900 
 
 25 
 42 
 
 1833 
 
 Consignment is debited at the time of rendering the account sales, for tlie charges and the net 
 proceeds (see 202, page 55). The net i)roceed8 of the above consignment are found bv deducting all 
 charges from the sales, as follows: (Ex. No. 40) Freight, 200; (Ex. No. 48) Storage, 2:y; Commission, 
 42; Total charges, 207. Total sales (Ex. No. 47), 2100; leaves the Net Proceeds, 1833 (see 199, page 
 55). The above consignment will balance, because in Ex. No. H) it is debited 200, in Ex. No. 48 1900, 
 and in Ex. No. 47 it is credited 2100 (see 207, i)age 55). 
 
 
 DAY BOOK RECORD. 
 
 EXAMPLE No. 54. 
 
 JOURNAL ENTRY FOR SAME. 
 
 Closed Lyman's Consign- 
 ment No. 1, and ren- 
 dered an account sales. 
 Storage, at Ic. i)er bu.. 
 Commission, 2 ^ on sales, 
 H. G. Lyman's net jiro- 
 ceeds placed to his 
 credit. 
 
 10 
 
 
 
 
 
 
 22 
 
 70 
 
 
 
 
 
 1038 
 
 80 
 
 1071 
 
 50 
 
 
 
 Lvman's Consignment No. 
 
 1, 
 
 To Storage, 
 Commission, 
 II. G. Lyman, 
 
 1071 
 
 50 
 
 10 
 
 22 
 
 1038 
 
 70 
 
 80 
 
 The net proceeds of the above consignment are found bv deducting all of the charges from the 
 sales, as follows: (Ex. No. 49) Freight, 50; (Ex. No. 51) Cartage, 10; (Ex. No. 53) Cartage, 3.50; 
 (Ex. No. 54) Storage, 10; Commission, 22.70; total charges, 90.20. Sales, (Ex. No. 50) 700; (Ex. No. 
 52) 435; total sales, 1135. Leaves the Net Proceeds, 1038.80. 
 
 Note.— In the Commission business, a book called the Sales book is usually kept, in which all entries relating t3 
 Consigiinu'iits are made and posted directly to the Ledger. The Sales Book is not to be used in the business of the two 
 foUuwiu^ months, but will be explained and illustrated hereafter. 
 
i: 
 
 ■f I 
 
 
 
 58 
 
 THEORETICAL ATfD PRACTICAL BOOK-KKKPING. 
 
 
 / <7 ^ ^ 
 
 C/^2^^^^ 
 
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 5^ -^5^>^^ i;%^/ a>^^ 
 
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 TUEOKETICAL AND PRACTICAL BOOK-KEEPING. 
 
 59 
 
 Ex. 44, p. 
 
 Ex. 49, p. 
 57. 
 
 Ex. 53, p. 
 
 JULY 10, 188-. 
 Paid Dodge & Hardy's Bill for Office Books and Stationery in cash, 31.25. 
 
 11. 
 
 Shipped Dow & Todd, Lodi, to he sold on my account and risk, 250 hu. W. Oats, @ 45o. Paid 
 
 cartage in cash, 2.00. 
 
 12 
 
 Ex. 45, p. 
 
 56. 
 
 aoe, p. 55 
 
 305, p. 55. 
 
 308, p. 55. 
 
 Ex. 54, p. 
 67. 
 
 1«3, p. 55. 
 
 196, p. .55. 
 
 303, p. 55. 
 
 23, pa. 6. 
 
 «U, pa. 7. 
 
 302, p. 55. 
 
 193, p. 55. 
 
 Bo't of Wm. B. Hoyt, on my note at 10 days, with interest, 3500 hu. Barley, @ 90c. 
 
 13. 
 
 Rec'd from W. J. Corning, Waterloo, to bo sold on his account and risk, 1000 hu. White Wheat. 
 
 Paid freight in cash, G5.00. 
 
 15. 
 
 Sold N. C. Iluhhard, on his note at 5 days, from Coming's Con. No. 1, 400 hu. W. Wheat, @ 
 
 1.40. 
 
 16. 
 Paid J. C. King cash on <^, 300.00. 
 
 »» 
 
 Hec'd from Dow & Todd, Lodi, an Account Sales of the shipment made them 11th inst. Net 
 proceeds to my credit, 102. 75. 
 
 17. 
 
 Sold Jno. D. Mas^fpllichfield, on «^ 250 hu. W. Oats, @ 50c.; 1500 hu. Barley, @ 1.00. 
 
 18. 
 Rec'd from J. B. Clark, Clyde (2d consignment), to be sold on his account and risk, 300 bu. 
 Red Wheat. Paid Freight in cash, 18.00. 
 
 19. 
 
 Sold Roh't G. I^idlaw, on % at 10 days, from Coming's Con. No. 1, COO hu. W. Wheat, @. 
 1.42. 
 
 >» 
 
 Closed Coming's Con. No. 1, and rendered an Account Sales. Storage, at Ic. per hu., 10.00; 
 Commission, 2 ^ on sales, 28.24. W. J. Coming's net proceeds jdaced to his credit, 
 
 1308. 7G. 
 
 21. 
 
 Shi])ped G. H. Wheeler, Bristol (2d shipment), to he sold on my account and risk, 500 hu. W. 
 Oats, @ 45c.; 500 ])u. Barley, @ 90c. 
 
 22. 
 
 Sold for cash, from Clark's Con. No. 2, 100 hu. R. Wheat, @ 1.35. 
 
 23. 
 N. C. Iluhhard paid his note of 15th inst. in cash. Remitted the cash to W. J. Corning on <5fe. 
 
 24. 
 Bo't of C. D. Mathews, on my note at 25 days, with interest, 3000 hu. Mixed Oats, @ 40c. 
 
 Rec'd from Morey & Co., Richmond, to he sold on their account and risk, 800 hu. Corn. Paid 
 
 Freight in cash, 00.00. 
 
 25. 
 Paid my note of 12th inst. in cash. 
 
 ') 
 
 Sliii)])ed M. & D. Fisher, Easton, to he sold on my account and risk, 2000 hu. Mixed Oats, @ 
 40c.; 1500 hu. Barley, @ 90c. Paid Insurance in cash, 10.75. 
 
 26. 
 
 Rec'd from G. H. Wheeler, Bristol, an Account Sales of the shi})ment made him 21st inst. 
 My net proceeds remitted in cash, 798.99. 
 
 Rec'd cash of Dow & Todd, in full of ^fc. 
 
 # 
 
I 
 
 
 60 
 
 184, p. 43. 
 
 59. pa. 7. 
 'M, pa. 6. 
 
 THKORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 27. 
 
 Afi'optcil W. J. Corning's ilruft on nie at 15 days' sight, to apply on ^, 500.00. 
 
 29. 
 Sold fi)r cash, from Clark's Con. No. 2, 100 bu. R. Wheat, ^ 1.37. 
 
 30. 
 
 T{(M'M of 11. (1. Tiaidhnv, his note at 20 days, with interest, to lialanee ^. 
 
 31. 
 Paid lient of Warehouse for the month, 50.00, and Laborer's serviees in full, 25.00, in cash. 
 
 INVENTORIES, JULY 31, 188-. 
 
 M DSE.— 1000 bu. Barley, (??> OOe. ; 1000 bu. :M. Oats, ® 40c. Total, 1300 00 
 
 SHIPMENT to M. & D. Fisher, East on. No. 1, 21G0 75 
 
 Note. — Journalize and post. Open a separate account for each Shipment and for mM Consignment. Give Cash 
 account one page space; Mdse. one-lialf of a page; Bills Payable, Bills Receivable. Storage and Connnission, one-third of 
 a page each; all others one fourth of a page each. After j)osling the month, make a Balance Sheet, and cIohc onljf the 
 accounts in the Ledger showing losses and gains. 
 
 In the Balance Sheet given below only a few of the extensions are made, the student being require*! to complete the 
 extensions and prove his results. They should agree with the Sununary given Ih'Iow. After you have }K*rformed this 
 work, continue the sjime business through the month of August. 
 
 TRIAL BALANCE AND BALANCE SHEET, JULY 31, 188-. 
 
 I,, r. 
 
 
 I>U. FOOTI.XO. 
 
 1 
 
 OR. rOOTING. 
 
 UR80URCKS. 
 
 LIABILITIES. 
 
 UMsn. 
 
 1 
 
 GAINS. 
 
 
 Student, 
 
 
 
 6000 
 
 
 
 
 
 
 
 
 
 
 
 Cash, 
 
 8408 
 
 74 
 
 5353 
 
 73 
 
 
 
 
 
 
 
 
 
 
 Mdse. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Ship't to G. H. AV., Brist(d, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 No. 1, 
 
 455 
 
 
 485 
 
 
 
 
 
 
 
 
 30 
 
 
 
 Storage, 
 
 
 
 15 
 
 
 
 
 
 
 
 
 15 
 
 
 
 Commission, 
 
 
 
 43 
 
 24 
 
 
 
 
 
 
 
 43 
 
 24 
 
 
 J. C. King, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Expense, 
 
 100 
 
 25 
 
 
 
 
 
 
 
 
 
 
 
 
 Ship't to D. & T., Lodi, No. 1, 
 
 114 
 
 50 
 
 102 
 
 75 
 
 
 
 
 
 11 
 
 75 
 
 
 
 
 Bills Payable, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Bills Receivable, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 J. D. Mason, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Clark's Con. No. 2, 
 
 18 
 
 
 07.) 
 
 
 
 
 254 
 
 
 
 
 
 
 
 W. J. Corning, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Shijvt to G. 11. W., Bristol, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 No. 2, 
 
 675 
 
 
 798 
 
 00 
 
 
 
 
 
 
 
 
 
 
 Morey & Co.'s Con. No. 1, 
 
 GO 
 
 
 
 
 60 
 
 
 
 
 
 
 
 
 
 Interest, 
 
 (; 
 
 73 
 
 
 
 
 
 
 
 
 
 
 
 
 Ship't to M.& D.F., Eastern, 
 
 
 
 
 
 Inrt. 
 
 
 
 
 
 
 
 
 
 No. 1, 
 
 2160 
 
 75 
 
 
 
 2160 
 
 75 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 SUMMARY. 
 
 ♦ 
 
 Total Gains, - 
 " Losses, 
 
 Net Gain, 
 
 Total Resources, 
 ** Liabilities. 
 
 Present Worth. 
 
 374 
 
 73 
 
 124 
 
 73 
 
 250 
 
 00 
 
 9052 
 
 76 
 
 2802 
 
 76 
 
 6250 
 
 00 
 
 Student's Investment, - 
 ** Net Gain, - 
 
 ** Present Worth, 
 
 6000 00 
 250 00 
 
 6250 00 
 
 i«i, p. .v.. 
 
 196. p. 55. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 AUGUST 1. 188-. 
 
 61 
 
 302, p. 55. 
 
 Ex. 53, p. 
 57. 
 
 Ex. 48. p. 
 56. 
 
 23, pa. 0. 
 JJ4, pa. 6. 
 40, pa. 6. 
 
 Shipi)ed Dow & Todd, Lodi (2d shipment), to be sold on my account and ritik, 1000 bu. Barley, 
 @ 90c. Paid cartage and insurance in cash, 25.00. 
 
 3. 
 
 Bo't for cash, 3000 bu. White Oats, @ 52c. 
 
 4. 
 Rec'd from J. B. Clark, Clyde (3d consignment), to be sold on his account and risk, 400 bu. 
 Beans. Paid freight in cash, 20.00, 
 
 5. 
 
 Sold Niles & Kinnie, 800 bu. Corn (Morey & Co.'s Con. No. 1), @ 65c. Rec'd cash, 120.00. 
 Balance on (^. 
 
 Closed Morey & Co.'s Con. No. 1, and rendered an Account Sales. Storage, 8.00; Commission, 
 2 ^ on sales, 10.40. Morey & Co.'s net proceeds placed to their credit. 
 
 6. 
 
 Bo't of O. B. Delano, on my note at 60 days, 2500 bu. Barley, @ 90c. 
 
 Rec'd from M. & D. Fisher, Easton, an Account Sales of shipment made them July 25th. Net 
 proceeds remitted in cash, 2258.25. 
 
 8. 
 Drew a sight draft on J. D. Mason, Richfield, 600.00, and paid it to J. C. King, in full <;f <^. 
 
 »> 
 
 Rec'd from Benj. Beebe, Northport, to be sold on his account and risk, 1000 bu. Corn. (Mem- 
 orandum only.) 
 
 Sold R. G. Laidlaw, on ^, at 15 days, from Clark's Con. No. 3, 100 bu. Beans, @ 3.25. 
 
 12. 
 
 Shipped to E. B. Worden, New London, to be sold on my account and risk, 1000 bu. Mixed 
 Oats, @ 40c. Paid cartage and insurance in cash, 17.50. 
 
 13. 
 
 Re-shipped, as per instructions received from J. B. Clark, to be sold on his account and risk, 
 
 the 100 bu. R. Wheat belonging to Clark's Con. No. 2, to R. D. White, Smithport. Paid 
 
 Cartage in cash, 2.00. 
 
 14. 
 
 Closed J. B. Clark's Con. No. 2, and rendered an Account Sales. Storage, 6.00; Commission, 
 2 ^ on sales. Clark's net proceeds remitted to him in cash. (See also explanation under 
 Ex. 54.) 
 
 Paid my acceptance of July 27th in cash. 
 
 » 
 
 16. 
 
 Bo't of D. Woods, 2000 bu. Mixed Oats, @ 48c. Paid him cash, 460.00, and gave him my 
 note at 10 days, with interest, for balance. 
 
 17. 
 Sold for cash, from Beebe's Con. No. 1, 300 bu. Corn, @ 68c. 
 
 M 
 
 Rec'd of Niles & Kinnie, their note at 20 days, with interest, to balance <^, 400.00. Remitt^ 
 the note to Morey & Co., together with cash to balance their ^. 
 
 18. 
 
 Sold Milton Forbes, on his note at 30 days, 500 bu. Mixed Oats, 53e. ; 1000 bu. White Oata, 
 @ 56c. 
 
 Rec'd from W. J. Corning, Waterloo (2d consignment), to be sold on his account and lisk, 
 3500 bu. W^hite Wheat. Paid Freight in cash, 280.00. 
 

 <*» 
 
 I 
 
 I 
 
 i 
 
 62 
 
 303, p. 55 
 
 20B, p. 55. 
 
 THEORETICAL AND PRACTICAL BOuK KEEPIMO. 
 
 19. 
 
 Sc.Ul Jno. 1). Alusoji, ,.n «/-, from ('lark's Con. No. 3, 300 bu. Beans, @ 3.35. 
 
 *» 
 
 OU»se(l (Mark's Con. No. 3, and ivndorcd an Account Sales. Storage, 8.00; Commission, 2 ^ 
 on sales. J. B. Clark's net ])roceeds ]daced to liis credit. 
 
 21, 
 
 Paid my note of July 24, and iiitercst, due to-day, in cash. 
 
 » 
 
 aOB, p. 55. 
 
 Dow & Todd, LiMli, por my instructions, have re-shijiped to Wells Bro's, Carlisle, to be sold 
 my account and risk, 1000 bu. Barley, shii)i)ed tiiem 1st inst. 
 
 on 
 
 22. 
 
 Sold for cash, from Coming's Con. No. 2, 150 bu. White Wheat, Q/i 1.45. 
 
 n 
 
 Rec'd cash of R. 0. Laidlaw, for his note of July 30th aiul interest. 
 
 23. 
 
 Sold for cash, from Beebe's Con. No. 1, 700 bu. Corn, @ G8c. 
 
 *t 
 
 Closed Beebe's Con. No. 1, and rendered an Account Sales. Storage, at Ic. per bu.; Commis- 
 sion, at 2 ;s^ on sales. Benj. Beebe's net i)roceeds remitted in cash. 
 
 194, p. 55. 
 
 24. 
 
 Rcc'd cash of R. G. Laidlaw, in full of «>, 325.00, and remitted same to J. B. Clark, on % 
 
 » 
 
 Rec'd from E. h. Worden, New London, an Account Sales of shipment made him 12th inst. 
 My net proceeds remitted in cash, 485.80. 
 
 25. 
 
 Shipj)ed to Frank Odell, Lisbon, to l)e sold on my account and risk, 1500 bu. Barley, @ 90c. 
 Paid cartage and insurance in cash, 18.38. 
 
 »> 
 
 Rec'd cash of Jno. I). Mason, on «y(-, 1025.00. 
 
 26. 
 
 im, i> 55. 
 
 Rec'd from Morey & Co., Riehinond (2d consignment), to be sold on their account and risk, 
 1000 bu. Corn. Paid Freight in cash, 75.00. 
 
 Paid W. J. ('orning, cash to balance ^. 
 
 27. 
 
 Shippe<l to M. & 1). Fisher, Easton (2d shipment), to be sold on my account and risk, 1000 bu. 
 31, Oats, @ 48c. Paid cartage in cash, 5.00. 
 
 f> 
 
 Sold.J D. Mason, 1000 ))u. White Oats, @ 55c.; 500 bu. Barley, (a) 1.00. Rec'd cash, 250.00, 
 and his note at 20 days for balance. 
 
 28. 
 
 Milt«m Forl)es prepaid his note of ISth inst. Face of note, 825.00; discount to maturity. 
 Rec'd cash for the proceeds. 
 
 29. 
 
 Faid my note of l«th inst. and interest, due to-dav, in cash. 
 
 194, p. ^'^. 
 afci, p. 55. 
 
 23, pa. 6. 
 40, pa. 6. 
 194, p. 55. 
 
 THEOREITCAL AND PRACTICAL BOOK-KEEPING. 
 
 29. 
 
 63 
 
 Rec'd advice from M. & P. Fisher, Easton, that the 1000 bu. M. Oats shipped them 27th inst. 
 were destroyed by fire while in transit. No insurance. 
 
 Sold R. G. Laidlaw, on <^, from Morey & Co.'s Con. No. 2, 600 bu. Corn, @ 70c. 
 
 30. 
 Rec'd from Wells Bro's, Carlisle, an Account Sales of the shipment made them on our account 
 by Dow & Todd. Our net proceeds, 894.25, remitted by their sight draft on J. B. Clark, 
 which we have paid to Clark, together with cash to balance his ^. 
 
 >» 
 
 Rec'd from Grant & Son, Salem, to be sold on their account and risk, 500 bu. R. Wheat. Paid 
 
 Freight in cash, 30.00. • 
 
 31. 
 
 Rec'd cash of Jno. D. Mason, in full of <^. 
 
 Sold for cash, from Grant & Son's Con. No. 1, 200 bu. R. Wheat, @ 1.35. 
 
 » 
 
 Paid Rent of Warehouse for month in cash, 50.00. 
 
 INVENTORIES, AUGUST 31. 188-. 
 
 MDSE.— 500 bu. Mixed Oats, @ 48c.; 1000 bu. White Oats, @ 52c.; 500 bu. Barley, 
 
 ^90c. Total, -.- - 1^10 00 
 
 SHIPMENT to Lisbon No. 1, at cost, -- -- 1368 38 
 
 Note. — Journalize and i><)st. Give new accounts one-fourth of a page space. After posting the month of August, 
 make out a Balance Sheet and close the Ledger. Bring down the llesources and Liabilities, and prove your work. If 
 correct, it will agree with the following: 
 
 TRIAL BALANCE OF LEDGER BALANCES, AUGUST 31, 188-. 
 
 RESOURCES 
 
 Cash, 5050 12 
 
 Mdse. Inv 1210 00 
 
 Bills Receivable, 800 00 
 
 Personal Accounts, 420 00 
 
 Coming's Con. No. 2, 62 50 
 
 Ship't to Lisbon No. 1, Inv. - 13G8 38 
 
 8911 00 
 
 LIABILITIES. 
 
 Bills Payable, 2250 00 
 
 Morey & Co. 's Con. No. 2, 345 00 
 
 Grant & Son's Con. No. 1, 240 00 
 
 Student's Investment, 6250 00 
 
 Net Loss,.-. 174 00 
 
 Present Worth, _ 6076 00 
 
 8911 00 
 
 QUESTIONS FOR REVIEW. 
 
 Page 55. — "^'"^ Give the rule for journalizing Shipments. "* Explain the meaning of shipment. 
 '** How are the the different shipments distinguished? ^" What is the party called who shijjs the 
 ])roperty? "MVhat is meant by Account Sales? '"By Net Proceeds? '^ What will the Shipment 
 account show after it has been credited with the net proceeds? *"• What before? ***"*** Give the rule 
 for journalizing Consignments? ^ Explain the meaning of Consignment. ** How are the different 
 consignments distinguished? ^ What is the party called who receives the property? **" When should 
 a Consignment balance? **''^ What would a Consignment show if it were unclosed at the time of 
 making a Balance Sheet? 
 
 t : ! 
 
\ 
 
 i 
 
 I 
 
 i 
 
 (^4 
 
 THEOKETICAL AND PRACTICAL BOOK-KEEPING. 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 65 
 
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 SEPTEMBER 1, 188-. (See Notes 1 and 2 below.) 
 
 Student and Wm. B. Henderson form a co-partnership this day, under the firm name of Student 
 & Co., for tlie purpose of conducting the Hardware Business. The partners are to invest equal 
 amounts, and share e(iually in gains and losses. 
 
 In consideration of extra services. Student is to be paid by the firm a salary of one hundred dollars 
 per month. 
 
 STUDENT'S INVESTMENT. 
 
 Resources: Currency paid in, 1500; on deposit in Flower City Bank, 1163.73; Geo. W. Banning, 
 Brock })oit, owee on account, 85; ). 
 
 Liabilities: Student's note in favor of R. D. Jones, dated March 16th last, at 6 months, payable at 
 Flower City Bank, with interest, 500 (enter this note in Bill Book also; see page 71). Interest accrued 
 to date, 5 mo. 15 days (see Note No. 3, below). 
 
 WM. B. HENDERSON'S INVESTMENT. 
 
 Resources: A note made by M. R. Si>ellman, dated July 11th last, at 60 days, payable at First 
 Natioiud Bank, with interest, 800 (enter also in Bill Book; see page 71). Interest accrued to date, 52 
 days (see Note No. 3, below). Currency paid in, 2193.16. 
 
 2. 
 Pay cash for Office Books, 25.00. 
 
 » 
 
 Buy of E. Corning & Co., Albany, on % 50 kegs Cut Nails, 5000 lbs., @ 3c. lb.; 20 Blacksmith's 
 Drills, @ 6.00 ca. ; 20 doz. Cast Steel Augers, @ 5.50 doz. ; 15 doz. Plain Galvanized Coal Hods, % 
 12.00 d«z.; 2 doz. Universal Clothes Wringers, (cb, 60.00 doz. 
 
 3. 
 
 Sell Barber & Swift, Georgetown, 3 doz. C. S. Augers, @ 8.00 doz.; 5 doz. P. G. Coal Hods, @ 
 15.00 doz.; 10 kegs Cut Nails, 1000 lbs., (^ 4^c. Receive in payment, their note at 10 days, with 
 interest, payable at Farmers' Bank, 100.00 (enter also in Bill Book). Balance on ^. 
 
 n 
 
 Cash sales of Mdse. for the day, as per Cash Drawer, 30.50. (See Note No. 4, below.) 
 
 4. 
 
 Sell L. B. Mason, Batavia, 4 IT. C. Wringers, @ 7.00 ea.; 5 Blacksmith's Drills, @ 8.00 ea.; 20 
 kegs Cut Nails, 2000 lbs, @ 4fc. lb. Receive in payment, cash, 50.00. Balance on ^. 
 
 Note No. 1. — The Day Book, a.s a separate book, will hereafter be dispensed with, and the history of the tmnsaoti(Mis 
 written in the Journal, or other book of original entry (13, page 5). In the form shown on page 64, lK)th del)its and credits 
 are entered at the left side of the page, the right side being reserved for the explanations. The debits are to l)e entered 
 first. The credits may be distinguished by having the sign "To " placed before them. The explanations are to be written 
 about one-third smaller than the journal entries. 
 
 Note No. 2. — An auxiliary book, called the Bill Book, is to be kept, to show the particulars regarding the Bills 
 Payable and Bills Receivable which j'ou issue and receive. The fonn shown on page 71 is arranged for lK)th notes and 
 drafts. The Drawer of a draft and the Endorser of a note sustain substantially the stime relation to the paper; both are 
 therefore entered in one column. The same is true also of the Drawee of a draft and the Maker of a note. Three days 
 of grace are always to be added in giving the maturity of paper. As soon as you have made an entry in the Journal for 
 a Bills Payable issued or Bills Receivable received, turn at once to the Bill Book and enter it there also. When a Bill 
 has been paid, or disposed of in any manner, state the fact in the proper column in the Bill Book. 
 
 Note No. 3.— In cases of this kind the interest accrued does not represent a gain, but a liability. It may be credited 
 to Interest account, however, since by debiting the whole amount of interest to Interest account when the note is disposed 
 of, the temporary fictitious gain is adjusted, the difference showing the actual loss for the time such note was in the 
 business. In case a statement of the business should be desired before the note is disposed of, the interest accrued to the 
 time of such statement would be debited to the Interest account as a liability inventory. If the note were a Bills 
 Receivable instead of a Bills Payable, the above conditions would be reversed. 
 
 Note No. 4.— Whenever a cash sale is made during the day, the amount is entered upon a slip of papt-r. At the 
 close of the day's business these slips are added together, and the amount should agree with the cash in the drawer. An 
 entry is then made upon the books for the whole amount, debiting Cash and crediting Mdse. 
 
> >»jiW I E!".. . i . i «. " WW 
 
 66 
 
 THEORETICAL AND PliACTlCAL BOOK-KEEPING. 
 
 THEORETICAL AND PRACIICAL BOOK-KEEPING. 
 
 67 
 
 6. 
 
 "'I 
 
 i 
 
 Buy of Hamilton &> Mathews, City, 45 doz. Brass-rod Curry Combs, @ 1.75 doz.; 5 doz. 50-lb. 
 Steelyards, @ 8.25 doz.; (5 doz. 10-iiich Trowels, @ 8.50 doz.; 40 (Jrindstoncs, @ 1.50 ea.; 12 doz. 
 No. 2 Japanued Boot Jacks, @ 3.25 doz.; 15 doz. Carpet Stretchers, @ 2.25 doz. Give them in pay- 
 ment, your note at 15 days, payable at F. C. Bank, with interest, 100.00 (enter also in Bill Book); your 
 check on F. C. Bank, 50.00. Balance on ^. 
 
 Cash sales, as per Cash Drawer, 41.35. 
 
 » 
 
 8. 
 
 Sell Louis Ernst, City, on his note at 30 days, payable at Commercial Bank, 2 doz. Steelyards, @ 
 10.00 iloz.; G doz. Boot Jacks, No. 2, @ 5.00 doz.; 15 doz. B. It. Curry Combs, (^ 2.25 doz. 
 
 Deposit cash in Flower City Bank, 500.00. 
 
 » 
 
 9. 
 
 Pay freight on goods from Albany in cash, 19.75. (Debit Mdse.) 
 
 10. 
 Accept E. Corning & Co.'s draft on you, at 5 days' sight, favor themselves, i)ayable at F. C. Bank, 
 
 on <^, 300.00. (lUl, page 42, Und 68, page 7.) 
 
 12. 
 
 Receive cash of M. K. Spellman, for his nole and interest, due to-day. (Mark this note in Bill 
 Book as i)aid; see i)age 71.) 
 
 13. 
 
 Sell C. B. Shafer, Gasport, 20 kegs Cut Nails, 2000 lbs., @ 4|c. lb.; G U. C. Wringers, @ 0.50 ea. ; 
 6 Grindstones, (a), 2.75 ea. ; 2 doz. Cari)et Stretchers, (a) 4.20 doz. lleceivc in payment, his check on 
 Flower City Bank, 50.00. Balance on % 
 
 Sales for cash, as per Cash Drawer, 85.80. 
 
 f» 
 
 n 
 
 Deposit in F. C. Bank, Shafer's check rec'd 13th inst. Also deposit currency, 100.00. 
 
 15 
 
 Draw a draft, at 10 days from date, on Barber «& Swift, Georgetown, to ])alance «<•, 44.00. Have 
 
 the draft discounted at F. C. Bank, and proceeds })laced to your credit. (1 10, i)age 27; 75, page 7; 
 
 11)2, page 42.) 
 
 »> 
 
 Receive cash of Geo. W. Banning, on «^, 400.00. 
 
 16. 
 
 Barber & Swift pay their note of 3d inst., due to-day, as follows: Give a new note, at 30 days, 
 payable at Farmers' Bank, 50.00; and their check on Farmers' Bank to cover balance of old note and 
 interest, and also interest on the new note to maturity, paid in advance. (59, page 7; 39, i)age 6; 60, 
 page 7; 76, page 7.) 
 
 Receive cash of L. B. Mason, to apply on <^, 50.00. 
 
 18. 
 Sell E. N. Hoaxter, Lyons, on his acceptance at 30 days from date, payable at Exchange Bank, 
 5 Blacksmith's drills, Qt, 8.00 ea.; 8 doz. 1-inch Augers, @ 7.25 doz.; 5 doz. P. i\. Coal Hods, @ 15.25 
 doz.; 20 doz. B. R. Curry Combs, % 2.50 doz.; 3 doz. J. Boot Jacks, @ 5.00 doz. 
 
 n 
 
 Your acceptance, due to-day at F. C. I^ank, has been charged to your ^. (See Note No. 2, 
 page 47.) ^^ 
 
 Your note due to-day, with interest, has been paid and charged to your account at F. C. Bank. 
 (See Bill Book; also 67, page 7; 75, page 7; 111, page 27.) 
 
 21. 
 Buy of Hart, Bliven & Mead, New York, 50 doz. Round Handle Bread Knives, % 1.00 doz.; 12 
 Copying Presses, with wheel, (^ 5.00 ea. ; 50 pairs Barn Door Hangers, extra heavy, @ 2.25 pr. ; 10 
 doz. Cow Bells, No. 2, @ 8.25 doz.; 6 Ice Cream Freezers, 10 qt., @ 8.00 ea. ; 1500 lbs. Babbitt Metal, 
 @ 12^c. lb.; 12 doz. Lemon Squeezers, wood, @ 1.50 doz. Give them in payment, your note at 30 
 days, 100. 00; your note at 60 days, 200.00; both notes payable at F. C. Bank. Balance on ^. 
 
 22. 
 
 Receive of C. B. Shafer, Gasport, his note at 45 days, with interest, indorsed by W. G. Sterritt, 
 payable at Flower City Bank, to balance his "Jfc, 106.40. 
 
 23. 
 
 Sell E. D. Graves, Penn Yan, 20 doz. R. H. Bread Knives, (^ 1.50 doz.; 25 prs. extra heavy B. D. 
 Hangers, @ 2.75 j)r. ; 2 I. C. Freezers, lO-qt, @ 10.00 ea. ; 100 lbs. B. Metal, @ 15c. lb.; 1^ doz. Lemon 
 Squeezers, @ 3.00 doz. Receive in i)ayment, his check on First National Bank of Penn Yan. 
 
 24. 
 Deposit in F. C. Bank, Graves' check rec'd yesterday; also deposit currency, 2000.00. 
 
 Your note due to-day, with interest, has been charged to your ^ at F. C. Bank. (See Bill Book.) 
 
 26. 
 Sell Ezra Langworthy, Marcellus, for cash, 25 doz. R. H. Bread Knives, @ 2, 10 doz. ; 1 Copying 
 Press, 8.00; 2 doz. No. 2 C. Bells, @ 9.75 doz.; 300 lbs. B. Metal, @ H\c. lb. 
 
 27. 
 E. N. Hoaxter prepays his acceptance of 18th inst., less discount to maturity, in cash. 
 
 29. 
 Prepay, by check on F. C. Bank, Hart, Bliven & Mead's draft on you, at 45 days' sight, 258.50, 
 less discount. (191, page 42; 76, page 7; 111, page 27.) 
 
 Receive cash of L. B. Mason, to balance his ^, 63.00. 
 
 30. 
 Pay Clerks' Salaries in full to date, in cash, 75.00. 
 
 Give Student credit for Salary, as provided in partnership agreement Sept. 1. 
 
 INVENTORIES, SEPTEMBER 30. 188-. 
 
 RESOURCE. 
 Mdse. — Goods in stock, as per Inventory Book, 712 79 
 
 LIABILITY. 
 Expense. — Rent unpaid for month of September, _ lOO 00 
 
 INSTRUCTIONS FOR POSTING SEPTEMBER. 
 
 First open an account for Student, and another for Henderson, giving each one-half of a page 
 space. Give Cash, Mdse. and Bank, one page each; Bills Payable, Bills Receivable, Expense, and 
 Interest and Discount, one-half page each. (Interest and Discount may be posted as one account ; write 
 the heading in the Ledger " Interest & Discount.") Give all other accounts one-third of a page each. 
 In opening personal accounts, enter the residence in the Ledger after the name, but written in a 
 smaller hand. 
 
 In posting, hereafter, the explanations are to be entered in the Ledger as explained and illustrated 
 on next page. 
 
,1 
 
 68 
 
 THEOKLTICAL AND PKACTICAL BOOKKEEPING. 
 
 THEORETICAL AND PBACTICAL BOOKKEEPING. 
 
 69 
 
 »> 
 
 ! i 
 
 Mi 
 
 
 SEPTEMBER 1. 
 
 In posting the item of 1500 to the Dr. side of Casli account, ssiy, in tljc explanation column, *' To 
 Sundries." (When the opjmsite side of the journal entry consists of more than one item, the word 
 *' Sundries" is used in tlie Ledger instead of entering the items. Sec Ledger accounts l)elow.) Enter 
 the same explanation in posting to Dr. side of F. C. Bank and lianning's accounts. In posting the 
 item of 500 to Cr. ^;de of Hills Payable account, say, in the exj)lanation column, "By Sundries." 
 Enter the same exi»lanation in posting to Interest and Student's accounts. 
 
 SEPTEMBER 1, Second Entry. 
 
 On Dr. side of Bills Receivable say, in the exj)lanation column, "To Wm. B. Henderson." Enter 
 same explamition in i)osting to Interest and Cash accounts. On Cr. side of Henderson's account say, in 
 explanation column, " By Sundries.'* 
 
 SEPTEMBER 2. 
 
 On Dr. side of Expense account say, "To Cash," and on Cr. side of Cash account say, "By 
 Expense." 
 
 SEPTEMBER 2. Second Entry. 
 
 On Dr. side of Mdse. account say, "To E. Corning & Co." On Cr. side of E. Corning & Co.'s 
 account say, " By Mdse." 
 
 SEPTEMBER 3. 
 
 On Dr. side of Bills Receivable account say, "To Mdse." On Dr. side of Barber & Swift's account 
 say, " To Mdse."; and on Cr. side of Mdse. account say, " By Sundries." 
 
 
 
 
 
 STUDENT. 
 
 
 
 
 
 
 
 
 
 
 
 
 188 
 Sept. 
 
 1 
 
 By Sundries, 
 
 1 
 
 3000 
 
 
 WM. B. HENDERSON. 
 
 
 
 
 
 
 
 188 
 Sept. 
 
 1 
 
 By Sundries, 
 
 -• 
 
 3000 
 
 
 
 CASH. 
 
 
 188 
 Sept. 
 
 it 
 
 1 
 1 
 
 To Sundries, 
 " Henderson, 
 
 1 
 1 
 
 1500 
 5>103 
 
 16 
 
 188 
 Sei)t. 
 
 1 
 
 1 
 
 2 
 
 By Expense, 
 
 1 
 
 25 
 
 
 
 GEO. W. BANNING 
 
 . E 
 
 IROCKPORT. 
 
 
 188 
 Sept. 
 
 1 
 
 To Sundries, 
 
 1 
 
 850 
 
 1 
 
 
 
 
 
 
 
 E. CORNING & CO.. ALBANY. 
 
 
 
 
 
 
 
 188 
 Sept. 
 
 2 
 
 By Mdse. 
 
 1 
 
 680 
 
 
 Mr. Henderson is to sell his interest in the business to Student, and retire from the firm October 
 Ist. After you have completed the posting, therefore, you may make Balance Sheet and close only 
 those accounts showing gains and losses and the partner's accounts. The work is to be performed 
 substantially in accordance with the instructions for April, on page 48. In closing the Expense 
 account, see 146, page 35. 
 
 A few of the results shown by your Balance Sheet are appended: Cash on hand, 2923.53; Balance 
 in bank, 2773.88; Difference in Interest and Discount account, 1.11; Mdse. bought, 1562.00; Mdse. 
 sold, 1214.70; Net Gain for thp month, 66.60; Present Worth of the firm, 6166.60. 
 
 OCTOBER 1, 188-. 
 
 Purchase of Wm. B. Henderson, this da}', his interest in the business, and pay him as follows: 
 Cash, 2000.00, and check on Flower City Bank for balance of his present worth. 
 
 Dejwsit cash in Flower City Bank, 500.00. 
 
 2. 
 
 Sell L. B. Mason, 500 lbs. B. Metal, @ 16fc. lb.; 5 doz. No. 2 Cow Bells, @ 9.75 doz.; 25 pairs 
 B. D. Hangers, @ 2.75 pr. ; 9 doz. C. S. Augers, @ 7.00 doz.; 6 U. C. Wringers, @ 7.50 ea. Receive 
 in payment, cash, 75.00. Balance on % 
 
 4. 
 
 Draw a sight draft on Ceo. W. Banning, Brocki)ort, for 250.00, and deposit same in F. C. Bank to 
 your credit, less ^ ^ for collection. 
 
 6. 
 Sales for cash, as per Cash Drawer, 80.50. 
 
 Accept Corning & Co.'s draft, at 5 days' sight, favor S. B. Roby & Co., payable at F. C. Bank, 
 200.00. 
 
 7. 
 Loan J. D. Smith cash, to be returned on the 9th inst., 50.00. (23-40, page 6.) 
 
 8. 
 Give Hamilton & Mathews check on F. C. Bank, to apply on <^, 30.00. 
 
 9. 
 J. D. Smith returns the cash loan of 7th inst., 50.00. 
 
 10. 
 Buy of Hart, Bliven & Mead, New York, on ^c, 20 doz. Cast Steel Axes, @ 12.00 doz.; 15 doz. 
 10-inch Wrought Wrenches, @ 12.00 doz.; 30 doz. Shovels, steel edge, @ 14.00 doz. 
 
 Draft drawn on Geo. W. Banning, 4th inst., has been returned protested for non-payment. Give 
 check on F. C. Bank to take up the draft and i)ay protest fees on same, 1.75. (See instructions under 
 Ex. 38, page 44 ; also Note No. 2, page 52.) 
 
 Receive cash for a note due to-day. 
 
 Student draws 100.00 from the business, for private use, by check on F. C. Bank. 
 
 '12. 
 Deposit cash in F. C. Bank, 500.00. 
 
 Sell Barber & Swift, on % 10 doz. C. S. Axes, @ 15.25 doz.; 5 doz. P. G. Coal Hods, @ 13.00 
 doz.; 3 Ice Cream Freezers, (a) 10.00 ea.; 5 doz. W. Wrenches, (a) 14. .75 doz. 
 
 14. 
 C. B. Shafer prei)ays his note of September 22d in cash. 
 
 Pay Clerk's Salary in full to date, in cash, 35.00. 
 
 » 
 
 Your acceptance due at F. C. Bank to day has been paid and charged to your <^. 
 
 15. 
 
 Receive from L. B. Mason, to apply on % his draft at sight on Hamilton & Mathews, for 50.00, 
 which you pass over to them to apply on your % (23-24, page 6.) 
 

 ^i 
 
 H 
 
 W 
 
 t 
 
 j 
 
 70 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 17 
 
 Pay Rent of Store for September and October, by check on F. C. Bank, 200.00. 
 
 Receive cash for note due to-day. 
 
 Deposit Cash in Flower City Bank, 200.00. 
 
 19. 
 
 20. 
 
 Sell Barber & Swift, 10 doz. W. Wrenches, @ 14.75 doz.; 5 doz. C. S. Axes, @ 15.25 doz.; 6 doz. 
 L. Squeezers, @ 3.25 doz.; 5 doz. R. II. Bread Knives, @ 2.10 doz.; 2 Ice Cream Freezers, @ 10.00 
 ea. Receive in payment, a note dated October U last, at 90 days, with interest, made by Ira T. Bush, 
 favor B. & S., and endorsed by them to you, 200.00. Interest accrued to this date allowed them (see 
 Note No. 3, i)age 05). Balance on ^. 
 
 21. 
 
 Receive cjish of G. W. Banning to ap})lyou«;(-, 250.00, also for i)r<)test fees on draft returned iUth 
 inst., 1.75. 
 
 Receive cash of Barber & Swift, on % 300.00. 
 
 22. 
 Deposit cash in F. C. Bank, 500.00. 
 
 Frank N. Harper, whose note Student endorsed last October for 4000.00, has failed, and com- 
 promised with his creditors @ 40c. on a dollar. Give check on F. C. Bank, 2400.(10, for deticiency to 
 pay up note. (See note below. ) 
 
 23. 
 
 Give Hart, B. & M., check on F. C. Bank, on (^c, 100.00. 
 
 24. 
 A note due to-day, at F. C. Bank, has been j)aid and charged to your ^. 
 
 » 
 
 Draw a draft on L. B. Mason, Batavia, at GO days from date, for 184.25. Have the draft discounted 
 at F. C. Bank, and the proceeds credited. 
 
 25. 
 
 Pay Hart, B. & M., to ap])ly on ^, Ira T. Bush's note, received of Barber & Swift 20th inst. 
 Interest accrued to date allowed us. 
 
 Deposit in F. C. Bank cash 136.31. 
 
 26. 
 
 27. 
 
 Memorandum. — The Store and ccmtents were last night destroyed by fire. Nothing was saved 
 except the books and papers. No insurance. 
 
 Student has decided to accept a proposition made to him by Geo. D. Whitney, to form a co-part- 
 nershi}) and continue the Hardware Business. 
 
 Make a Balance Sheet, and close the Ledger for October. The following are a few of the results 
 which should be shown by your Balance Sheet: Balance in Bank, (520.85; Bills l*ayable outstanding, 
 200.00; Bills Receivable, account balances; Difference in Interest and Discount account, 1.37; Mdse. 
 sales for October, 984.75; Net Loss, 705.04; Proprietor's Insolvency, 71.74. 
 
 In closing the accounts which show gains and losses, you may transfer the differences directly to 
 the Proprietor's account, instead of carrying them through the Loss and (Jain account. Close and 
 bring down the balances of the accounts showing resources and liabilities. Take a Trial Balance of 
 these balances before proceeding with November. (See 161-102, page 40.) 
 
 Note. — The endorsement of this note In'in^ a transaction of Student not connected with the business, the It>ss is to be 
 debited to his account instead of to Loss and Gain account. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 ^ ^ I- !> 
 
 ^ ^ ^ ^ 
 
 5\ 
 
 j::^ 
 
 
 s 
 
 ^ 
 
 5 
 
 fIF 
 
 ^ 
 
 
 m 
 
 mi 
 
 1^ 
 
 «;. u >. 
 
 =7^ 
 
 ^ * 
 
 T 
 
 • .$^ 
 
 % ^ 
 
 I 
 
 r^ 
 
 X <s\ 
 
 ^ ^ ^ 
 
 \ \ V 
 
 ^ *o > 
 > > ^ 
 
 
 ^ 
 
 -2»_ 
 
 MS 
 
 
 A. 
 
 ^ 
 
 71 
 
 4 
 
 n 
 
 a 
 
 
 s 
 
 is 
 o 
 
 
 
 m 
 
1i 
 
 THEORETICAL AND PliAOTIOAL UOOK KEEPING. 
 
 i 
 
 i 
 ft 
 
 NOVEMBER 1, 188-. (See Notes 1 and 2 below.) 
 
 Student and Geo. D. Whitnoy luivo tliis day formed a co-j)artnerslii}), under the firm name of 
 Student & Co., and have lea.sed of 11. X. Smitli the store No. 14()G Main Street, at T-iOO ju-r year, for 
 the purjwse of continuing tlie Hardware business estal)lished by Student & Henderson. 
 
 The co-partnersliip articles provide that Geo. 1). Whitney shall not be re(iuired to give any of his 
 time to the business, but shall, instead, furnish a cash ca})ital of ^5000. Student is to devote his entire 
 time and energies to conducting the business. The liabilities shown by Student's l^'dger, October 31, 
 are to ])e assumed by the firm, and the resources are to become firm jiroperty. The gains and losses 
 are to be shared e(pially. 
 
 1. 
 
 Geo. P. "Whitney i)ays in cash, 5000.00, the amount of his investment as ])er co-])artnership agree- 
 ment. (After entering this in the Journal, niake entry also in the Cash Book; see i)age 78.) 
 
 »> 
 
 Deposit in Flower City liank, cash, 4000.00. (Enter also in Cash Book; see juige 79.) 
 
 2. 
 
 Buy of Hemingway & Selden, City, 75 kegs Cut Nails, 7500 lbs., @ '^a. per lb.; 50 Grindstones, 
 @ l.OO each; 10 doz. C. S. Augers, @ 5.50 doz. ; 4 doz. IT. C. Wringers, (r^ <)0.00 doz. ; 5 doz. Steel- 
 yards, @ 8.00 doz.; 25 doz. Carpet Stretchers, @ 2.40 doz. Give them in payment, your iu)te at 10 
 days, payable at F. C. Bank, 500.00. Balance on ^c. 
 
 3. 
 
 Sell E. Langworthy, Marcellus, 2 doz. Car])et Stretchers, (r^ JJ.OO doz.; 10 (Jrindstones, @ 2.50 
 each; 2 doz. V. S. Augers, (f^ 7.25 doz.; 25 kegs ('ut Nails, 2500 lbs., @ 4c. lb. Receive in payment, 
 cash, 50.00. Balance on "fc. (Enter the cash in Cash Book also; see j)age 78.) 
 
 »» 
 
 Pay Coming & Co. cash, to balance ^/c. (Enter also in Cash Book; see l)age 79.) 
 
 5. 
 
 Draw a draft, at twenty days from date, on Barber & Swift, Georgetown, as ]>er their instructions, 
 to balance 'fr. Have the draft discounted at F. C. Bank, and the proceeds i)laced to your credit. 
 
 ft 
 
 Sell C. B. Shafer, 10 kegs Cut Nails, 1000 lbs., @ 4c. lb.; 2 Clothes AVringers, ^ G.25 each; 3 doz. 
 C. S. Augers, (u} 7.25 doz. Keceive in i)ayment, his note at 45 da\s, j)ayable at F. C. Bank. 
 
 6. 
 
 Pay cash for 2 tons of Coal for office, 10.80. (Enter also in Cash Book; see ]>.ige 79.) 
 
 Cash sales, as per Cash Drawer, 48.75. (Enter also in Cash Book; see i)age 78.) 
 
 8. 
 
 Buy of E. Corning & Co., Albany, 25 Blacksmith's Drills, @ COO each; 25 doz. P. G. Coal Hods, 
 C^ 12.25 doz. Accei)t their draft at 10 days' sight, favor of themselves, for the amount of the invoice. 
 
 Receive cash of G. W. Banning, to a})})ly on <^r, 100.00. 
 
 9. 
 
 Buy a Safe for the Office, and })ay for same by check on F. C. Bank, 225.00. 
 
 Note No. 1. — In the foUowinu^ months a Ca.sh Book Ls to ln' kept n.s nn auxilinry l)o<)k, nnd tlio use of the Bill Book 
 is to be continiU'd. In oiMiiini^ tlu; ('a.-;h Book, omit the tirst pa^jjc, so us to l»riii<; the ll('<('ipt.>< and Dishuisenjents on 
 opiKJsite pages. Whenever ca.sh is received, enter the amount, with an iipi)ropriate ex[)lanation, on the UJt side of the 
 Ca.sh Book, and on the 7^if/ht side when paid out. Tiie difTen-nee should exhibit, at any time, the cash on liand. At the 
 end of the month you will balance your Cash Book, bringing down the balance of ca.sh on hand. (See (ash Book form, 
 on pages 78 and 79.) 
 
 Note No. 2.— The Cash Book may be kept as a principal ]>ook. omitting all cash tnmsartions from the Jounuil. and 
 r>osting them dinrtly from the Cash Book. (This method will be illustrated hereafter.) 
 
 It is customary to balance the Cash Book everyday in business, and prove the ca.sh; that is, ascertain whetlier the 
 cash on liand ugreeu with the balauc(> shown by the Ciish Book. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 73 
 
 Fay Hart, Bliven & Mead, in full of <^, as follows: Cash, 250.00; C. B. Shafer's note received 5th 
 inst., less discount to maturity; and check on F. C. Bank for balance. 
 
 10. 
 Deposit in F. C. Bank all the cjish on hand. 
 
 Cash sales, as per Cash Drawer, 85.35. 
 
 11 
 
 Sell Barber & Swift, 10 B. S. Drills, @ 7.25 each; 5 doz. P. G. Coal Hods, @ 15.00 doz. Pteceive 
 
 their check on Farmers' Bank of Georgetown, 50.00; and their note at 10 days, payable at Farmers' 
 
 Bank, for balance. 
 
 12. 
 
 Pay Hamilton & Mathews, in full of ^, the check received of Barber & Swift 11th inst., less cost 
 of collecting same, 25c., and currency for balance. 
 
 13. 
 
 Buy of Pratt, Conway & Mills, Pittsburgk, 200 kegs Cut Nails, 20,000 lbs., @ 3c. lb. Pay them 
 cash, 50.00; your check on F. C. Bank, 150.00; and your two notes in equal amounts for the balance, 
 one at 30 days and the other at (JO days, both payable at F. C. Bank, with interest. 
 
 14. 
 
 Sell L. B. Mason, on <^, 2 doz. C. S. Augers, @ 7.25 doz.; 5 doz. Carpet Stretchers, (5; 3.00 doz. ; 
 10 kegs Cut Nails, 1000 lbs., @ 4c. lb. 
 
 Cash sales, as per Cash Drawer, 18.50. 
 
 » 
 
 15. 
 
 A note due at F. C. Bank to-day has been charged to your <'^. 
 
 16- 
 
 Sell Oliver Bro's & Co., Williamsburg, 50 kegs Cut Nails, 5000 lbs., @ 4c.; 10 B. S. Drills, @ 
 7.25; 3 doz. Steelyards, @ 9.15 doz. Receive in payment, a note made by Louis Ernst, in their favor, 
 dated October 15th last, at 90 days, payable at Traders' Bank, and endorsed by them to jou, 200.00, 
 
 less discount to maturity. Balance on ^. 
 
 18. 
 
 Receive cash of E. Langworthy, to apply on ^, 50.00. 
 
 19. 
 Buy of Hart, Bliven & Mead, 1 doz. 10-qt. Ice Cream Freezers, @ 90.00 doz.; 2500 lbs. Babbit 
 Metal, @ 12^0. lb.; 20 doz. No. 2 Cow Bells, @ 8.10 doz.; 15 Copying Presses, with wheel, @ 4.75 
 each; 100 pairs B. D. Hangers, @ 2.00 pr. ; 75 doz. R. H. Bread Knives, @, 85c. doz. Give them 
 check on F. C. Bank for one-half of the invoice. Balance on ^. 
 
 20. 
 Student ai)])roj)riate8 the following for his individual use: 1 pr. B. D. Hangers, 2.00; 1 Copying 
 Press, 4.75; 1 T. C. Freezer, 7.50. 
 
 Deposit in F. C. Bank all the cash on hand. 
 
 >» 
 
 21 
 
 Pay Daily Tribune, Advertising Bill, by check on F. C. Bank, 18.50. 
 
 » 
 
 An acceptance due at F. C. B;ink to-day has been charged to your <^. 
 
 22. 
 
 Sell L. B. Mason, 2 doz. Cow Bells, @ 9.50 doz.; 4 Copying Presses, @ COO each; 25 kegs Cut 
 Nails, 2500 lbs., Qi> 4c. lb. Receive in payment, cash, 50.00. Balance on <^. 
 
 23. 
 A note due at F. C. Bank to-day has been charged to your ^e. 
 
 Barber & Swift pay 25.00 cash on their note due to-morrow, and renew the balance by a new note 
 at 30 days, i)ayable at Farmers' Bank. Interest on the new note ])aid in advaiu'e in cash. 
 
Sim 
 
 74 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 70 
 
 % 
 
 ft 
 
 25 
 Accept a draft on you by Hart, B. & M., at 15 days' sight, for 250.00, to ap])ly on ^.. 
 
 27. 
 Receive cash of Geo. W. Banning to balance his '^. 
 
 n 
 
 Sell Oliver Bro's & Co., on % 500 Iba. B. Metal, @ 14c. lb.; 20 doz. R. If. Bread Knives, @ 1.05 
 doz. ; 25 pairs B. D. Hangers, (a) 2.50; 100 kegs C. Nails, 10,000 lbs., (a) 4c. 
 
 29 
 
 The draft drawn on liar]>er «&- Swift, 5th inst., due yesterday, was ])rotested for non-])aynient. 
 Protest fees, 1.25. Give check on F. C Bank to cover the draft and fees. (See note below.) 
 
 Give Hemingway & Selden your check on F. C Bank, to apply on <^, 100.00. 
 
 30. 
 Draw a sight draft on L. B. Mason for 75.00, and i>ay it to Hart, B. & M., to a])i)ly on °jc. 
 
 »> 
 
 Pay one month's rent as follows: Deliver goods from the store amounting to 58.75, on H. N. 
 Smith's order, and })ay the balance in cash. 
 
 After your Journal has been approved, you may balance your Cash Book and bring down the 
 balance of cash on hand, as illustrated on ])age8 78 and 71). You will observe that in bringing down the 
 balance it is carried to the last column, the object being to avoid including this amount in the receii)ts 
 of cash for December, which are to be entered in the first column. 
 
 Since the debits and credits of cash are shown in detail in the Cash Book, you may omit them in 
 posting from the Journal, and simply ])ost the debit and credit footings as shown by the Cash Book. 
 
 Post all the other debits and credits from the Journal as heretofore instructed. Post under the 
 September and October headings, opening new accounts when necessary. Give each new account 
 one-third of a page space. After you have comjileted the })osting, take a Trial lialance. Should your 
 Trial Balance not prove, see 94 to 109, page 21. None of the accounts are to be closed. If an 
 account balances, rule it up. Should an account get crowded for sjjace, transfer it to a new page. 
 (See 154-156, ])age 30.) A few results are here given: DilTerence in Bank account, 3147.01; Cash. 
 134.14; Bills Payable, 050.00; Interest and Discount, 1.50; Expense, 354.55; Mdse. bought, 2005.13; 
 Mdse. sold, 1058.80. 
 
 DECEMBER 1, 188-. 
 
 Buy of E. Corning k Co., 10 doz. C. S. Augers, % 5.50 doz.; 20 doz. P. G. Coal Hods, % 12.00 
 
 doz. Give them note at 20 days, payable at F. C. Bank, with interest, 150.00; cash, 45.00. Balance 
 
 on % 
 
 2. 
 
 Receive of E. Langworthy, cash to balance his ^c. 
 
 4. 
 
 Sell C. B. Shafer, 2 I. C. Freezers, @ 10.00 ea.; 500 lbs. Babbit Metal, @ 15c. lb.; 5 doz. Cow 
 Bells, @ 9.50 doz.; 10 doz. R. H. Bread Knives, (ct, 1.05 doz. Receive in i)ayment, his note at 15 days 
 for 75.00; cash, 25.00. Balance on «t. 
 
 6. 
 
 Have Louis Ernst's note, received 10th ult., discounted at F. C. Bank, and the i>roceed8 jHaced to 
 your credit. 
 
 Pay Clerk's Salary in cash, 50.00. 
 
 8. 
 
 Note. — The fee.s in this case are properly chargeable to Barber & Swift\s account, as the draft wa.s drawn at their 
 request. 
 
 Receive Oliver Bro's k Co.'s check on City Bank of Williamsburg, 101.90, on «fc. 
 
 12. 
 Buy of Hamilton k Mathews, 50 doz. Brass Rod Curry Combs, @ 1.75 doz.; 10 doz. 10-inch 
 Trowels, (^ 8.50 doz. ; 25 doz. Boot Jacks, @ 3.25 doz. Pay them Oliver Bro's & Co.'s check, received 
 9th inst., and your check on F. C. Bank for balance. 
 
 Deposit cash in F. C. Bank, 50.00. 
 
 j> 
 
 13. 
 
 An accei)tance, due to-day, has been charged to your <^ at F. C. Bank. 
 
 14. 
 Sell F. E. Hodgson, Maplewood, 25 kegs Cut Nails, 2500 lbs., @ 4|c.; 5 doz. B. R. Curry Combs, 
 (fl^ 2.25 doz.; 3 doz. Boot Jacks, @ 5.00 doz.; 5 B. S. Drills, @ 7.25. Receive his note at 00 days, 
 endorsed by A. M. Hardy, payable at Branch County National Bank, for 100.00. Balance on % 
 
 16. 
 Your note and interest due to-day has been charged to your ^c at F. C. Bank. 
 
 n 
 
 Cash sales, per Cash Drawer, 55.25. 
 
 18. 
 Give Hemingway & Selden, check on F. C. Bank, to balance <^. 
 
 20. 
 Buy of Pratt, Conway & Mills, 500 kegs Cut Nails, 50,000 lbs., % 3fc. Give them check on F. C. 
 
 22. 
 
 Bank in full payment for same. 
 
 Receive cash for a note due to-day 
 
 23. 
 
 Sell E. Langworthy, 100 kegs Cut Nails, 10,000 lbs., @ 4|c. lb.; 3 doz. 10-inch Trowels, @ 10.25 
 doz.; 20 doz. B. R. Curry Combs, @ 2.25 doz. Receive in i)ayment, his draft at one day's sight on 
 Hemingway & Selden, which they accept, 250.00. Balance on ^. 
 
 Receive cash of C. B. Shafer, in full of ^c. 
 
 99 
 
 24. 
 
 Your note due at F. C. Bank to-day has been charged to your ^. 
 
 25. 
 Oliver Bro's & Co. represent that the Babbit Metal sold them 27th ult. was of an inferior quality, 
 and claim a reduction of 4c. per lb. Hart, B. & M., of whom you bought the Metal, instruct you to 
 allow the claim and charge it to them. 
 
 Receive cash for a note due to-day. 
 Deposit in F. C. Bank all the cash on hand. 
 
 26. 
 
 » 
 
 27. 
 
 Receive cash for an acceptance in your favor due to-day. 
 
 >9 
 
 Sell Geo. \V. Bannmg, on <^^, 4 doz. R. H. Bread Knives, @ 1.05 doz.; 1 doz. Cow Bells, @ 10.07 
 doz.; 5 doz. Boot Jacks, @ 3.25 doz.; 1 Copying Press, 0.00; 2 doz. Carpet Stretchers, @ 3.00 doz.; 
 50 kegs Cut Nails, 5000 lbs., @ 4r|c. lb. 
 
 29. 
 
 Receive cash of Oliver Bro's & Co., to balance <^. 
 
re 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 TIIKOKKTICAL AND PRACTICAL BOOK-KEEPING. 
 
 77 
 
 
 *) 
 
 |l 
 
 m 
 ft 
 
 30. 
 
 Barbor & Swift have compromised with their creditors at AO ^. "Receive cash of tliem on ihat 
 basis ill full settlement of their "/c. 
 
 *f 
 
 Draw a sight draft on L. B. Mason for the balance lie owes you, and i)ay same to Hart, IJliven & 
 Mead, together with sutiicient cash to balance their "/•. 
 
 31. 
 Pay Rent of Store, 100.00, and Clerk's Salary, 50.00, in cash. 
 
 n 
 Deposit in Bank all the cash on hand. 
 NoTK. — Close the ('asli Book ami poHt us instructed on pag(^ 74. 
 
 INVENTORIES, DECEMBER 31, 188-. 
 
 M DSE. — Goods on hand, as per Inventory Book, 355O 25 
 
 EXPENSE. — Safe on hand, valued at 200 00 
 
 Make out Balance Sheet, and close the Ledger. The Summary of your Balance Sheet should agree 
 with the following: 
 
 SUMMARY, DECEMBER 31, 188-. 
 
 Total Gains, - 
 '* liosses. 
 
 Net Gain, 
 
 Total Resources, 
 " Liabilities, 
 
 Present Worth, - 
 
 413 (i8 
 10(>4 2«> 
 
 6278 27 
 300 00 
 
 5978 27 
 
 Student's ^ Net Gain, 
 *' acc't debited, 
 
 (< 
 
 Present Worth, 
 
 Whitney's Investment, 
 
 4 Net (Jain, - 
 
 << 
 
 a 
 
 Present Worth, 
 Present Worth of Firm, 
 
 532 13 
 
 
 85 90 
 
 
 
 440 14 
 
 5000 00 
 
 
 532 13 
 
 
 • 
 
 5532 13 
 
 6978 27 
 
 Note.— After you have completed the work ujMm your books, present them to tlie teacher for inspection. An 
 examination Avill likewise Ik? given, in wiiiclj you will 1m? rc(iuin'd to make the journal entries for all of the parlies in a 
 large variety of business transaetions. together with a review of the principles as outlined in the questions uixm pages 53. 
 54 and 63, together with the following: 
 
 MISCELLANEOUS QUESTIONS. 
 
 Note. — Written answers are require<l to the following (piestions. 
 
 * From what does Double Entry Book-keeping take its mime? * IIow are you enabled to decide to 
 which of the two general classes of acc(umts used in double entry any i)articular account belono-s? 
 ' What title may be used instead of the j)r<)i)rietor's luime? * Mention the three accounts in which the 
 excess, if any, must always ap})ear on the same side, and state the reason in each case? ' To which of 
 the two geiu^ral classes of accounts docs a Personal account belong? • What circumstance mi'^-ht arise 
 to place it in the other class? ' Why is it necessary that Bills Payable aiul Bills Receivable sliould 
 always be debited and credited with their face value? * Mention some of the errors which will not 
 affect the eciuality of the Ledger. * In case the Trial l^alance does not ])rove, give the short tests to be 
 applied before i)roceeding to examine the i)osting. '"When the check of aiu>ther jKTson is received, 
 how is it jounuilized? " Give an example of an inventory showing a liability. '* Give the two wavs of 
 finding the Present Worth in doulde entry. " What is meant by Insolvency? '* What is the object of 
 closing accounts showing losses and gains? '* In closing an account, why is the eqimlity of the Led^rer 
 not affected? '* What is meant by the acceptance of a draft? " Give the general rule for journalizint' 
 drafts when drawn on account. '* What jounud entry is nuule when the proj»rietor comiucnces busi- 
 ness with both Kesources and Liabilities? "What would a Shi])ment account show at the time of 
 making a Balance Sheet, if no Account Sales had been received? *MVhat wotild a Gousifument 
 account show, if uncloseil at time of iiiakiug a Balance Sheet? 
 
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 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
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 BUSINESS 
 
 RECEIPT (To Apply on Account). 
 1175.25. Philadelphia, Jan. 6, 188- 
 
 Received of Wm. De Long, One Hundred and 
 Seventy-five -^^^ Dollars, to apply on account. 
 
 CHAS. G. APGAR 
 
 RECEIPT (In Full of Account). 
 $200. CoBURG, 0., Mar. 16, 188-. 
 
 Received of Walter Williams, Two Hundred 
 Dollars, in full of account to date. 
 
 SMITH & WEIGIITMAN. 
 
 RECEIPT (Payment on Note). 
 $150. Richfield, Pa., Sept. 27, 188-. 
 
 Received of Elihu Biddleconi, One Hundred 
 and Fifty Dollars, to apply on his note, in our 
 favor, dated Mar. 27, 188- 
 
 GEO. T. CREED & CO. 
 
 DUE BILL (Payable in Goods). 
 125. Sardinia, N. Y., Aug. 1, 188-. 
 
 Due R. F. Bain})ridge, Twenty-five Dollars, i)ay- 
 able in goods from our store. 
 
 EATON. CROSS & CO. 
 
 FORMS. 
 
 DUE BILL (Payable in Money). 
 $47.04. Smith's Hollow, Dec. 1), 188-. 
 
 Due Cha's Parker, or order, on demand. Forty- 
 seven and yt^V I^ollfirs. W. H. GORDON. 
 
 ORDER (To Apply on Account). 
 $50. Chelsea, Mich, Apr. 10, 188-. 
 
 French & Hagerman, 149 Lagrange Street, will 
 })lease pay tlie bearer Fifty Dollars, and charge 
 the same to my account. D. W. EVEREST. 
 
 ORDER (Payable in Goods). 
 
 Burlington, Kas., Dec. 6, 188-. 
 
 E. & S. Cam}>bell will j)lease deliver to bearer 
 groceries, not exceeding in amount Twenty-five 
 Dollars, and charge the same to me. 
 
 RALPH BARTON. 
 
 INDIVIDUAL NOTE. 
 
 (See enerravod form, on pa^re 21.) 
 
 $350. Rochester, N. Y., Feb. 2, 188-. 
 
 Six days after date I ])romi8e to pay W. C. 
 Cooper, or order. Three Hundred and Fifty Dol- 
 lars, value received. 
 
 Due Feb. 11. 18S-. STUDENT 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 79 
 
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 BUSINESS FORMS. 
 
 JOINT NOTE. 
 
 $275. Cedar Falls, Iowa, Oct. 1, 188-. 
 
 Sixty days after date, we promise to pay Orlando 
 Stevens, or order. Two Hundred and Seventy-five 
 Dollars, for value received, at Farmers' Bank. 
 
 E. F. HAYDEN. 
 GEO. N. BROWN. 
 
 JOINT AND SEVERAL NOTE. 
 
 $1500. Brighton, III., June 4, 188-. 
 
 One year from date, for value received, we, or 
 either of us, ])romise to pay to the order of Henry 
 H. Moffatt, Fifteen Hundred Dollars. 
 
 FRANK S. HORTON. 
 M. BORTELLE. 
 
 NON-NEGOTIABLE NOTE. 
 $100. Trenton, N. J., May 15, 188-. 
 
 On demand, 1 j)romise to pay Lyman S. Barber, 
 One Hundred Dollars, for value received, with 
 interest. 
 
 C. C. BARNARD. 
 
 DRAFT (Time from Sight). 
 
 (See engraved form on page 41.) 
 
 $2000. Baltimore, Oct. 28, 188-. 
 
 At ten days' sight, pay to Eric Hunter, or order. 
 Two Thousand Dollars, value received, and charge 
 the same to my account. 
 
 To J. Y. Wentworth, SIMON DUNCAN. 
 
 Albany, N. Y. 
 
 DRAFT (Time from Date). 
 $300. Hamilton, Sept. 5, 188-. 
 
 Thirty days after date, pay to J. C. Goodrich, 
 or order. Three Hundred Dollars, value received, 
 and charge the same to my account. 
 
 To Crowley & Leavitt, ALFRED W. HOLLEY. 
 Evansville, Pa. 
 
 DRAFT (At Sight). 
 $100. Olean, Feb. IT, 188-. 
 
 At sight, pay to the order of Orrin Greenleaf, 
 One Hundred Dollars, value received, and charge 
 the same to our account. 
 
 To Park Bank, WELLSLEY. HOYT & CO. 
 
 New York. 
 
wm&sr^n 
 
 \. .^sibw nam-»'^-<**''^<'imsxi'f'Si»i:'^i^i!^^iveiat^iieSvi&!-'.'^ ■■' ■ -idmttmf-A' 
 
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 80 
 
 TllJ::oKEilCAL AND J'UACTUAL JJOOK-lsLEEl'lJNG. 
 
 BUSINESS FORMS. 
 
 BILL 
 
 
 
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 J^ /^ 
 
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 ^^i>^>^0? 
 
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 z7 
 
 ACCOUNT SALES 
 
 €U^^.r l^.^_^ ^^y^^~ 
 
 SINGLE ENTRY. 
 
 ' The distinguishing feature of Single Entry book-keeping is, that Personal accounts onl^- are 
 
 kept in tlie Ledger. 
 
 * This system of book-keeping contemplates such a record, or the filing of such documents for 
 reference only, as will enable the proprietor to determine at any time the Resources and Liabilities of 
 his business, which cannot be found by taking an inventory. 
 
 ' For this purpose the practice is to journalize and post ])ersonal accounts only. Cash receipts and 
 payments are entered in the Cash Book, and Bills Receivable and Bills Payal>le in the Bill Book. 
 
 * It is sometimes found necessary to employ additional books of record, the number and character 
 depending upon the nature and extent of the information which it is desired to preserve: as. Order 
 Book, Invoice Book, Sales Book, etc. 
 
 * Since no accounts showing gains and losses are kept in Single Entry, it follows that an itemized 
 statement of the gains and losses of the business cannot be obtained. 
 
 "The Net Gain or Net Loss of the business can be determined, however, in the following 
 manner: First ascertain the Present Worth, by finding the difference between the Resources and 
 Liabilities, and then compare it with the Investment. 
 
 ' If the present worth is greater than the investment, the difference shows a net gain; if less, a 
 net loss. 
 
 The following sets are designed to illustrate book-keeping by Single Entry, also changing Single 
 Entry books to Double Entry. The books to be used are Journal, Ledger, Cash Book and Bill Book. 
 The form of Journal is illustrated on page 82. Cash Book and Bill Book are to be kept in the form 
 
 used heretofore. 
 
 81 
 

 
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 THKOKKTICAL AND PRACTICAL BOOK-KEEPING. 
 
 83 
 
 JANUARY 1, 188-. 
 
 Commence Inisiness with tlie following resources: Store and Lot valued at 2500.00; Horse and 
 Wagon valued at 225.00; Cash, 500.00. {Enter in Journal and Cash Book; see form of Journal on 
 page 82. ) 
 
 n 
 
 Buy of Smith, Perkins & Co., City, on <^, at 15 days, 10 bbls. A Sugar, 1250 lbs., @ 10c. ; 10 eh. 
 Japan Tea, 350 lbs., @ GOc; 10 cli. Black Tea, 350 "lbs., @ 45c.; 5 half bbls. Mackerel, @ 4.00; 10 
 mats Java Coffee, 1250 lbs., @ 22c. {Enter in J.; seepage 82.) 
 
 Note. — It is unnecessary to enter the items in the Journal, the Invoice itself l)eing placed on file for reference. 
 
 Sell A. Thompson, Aurora, on % 2 ch. J. Tea, 70 lbs., @ 70c.; 2 ch. B. Tea, 70 lbs., @ 50c. 
 (J.; see form on page 82.) 
 
 Cash sales, per Cash Drawer, 175.38. {C. B.; see 3, page 81.) 
 
 2. 
 Sell Mrs. Eliza Smith, 27 Main St., on <f, 10 lbs. A Sugar, @ lie; 1 lb. J. Tea, Cd, 85c.; 2 lbs. 
 J. Coffee, @ 28c. U.) 
 
 n » 
 
 Buy of Smith, Perkins & Co., on ^, 10 bbls. Brown Sugar, 1250 lbs., (^ 9c.; 10 sacks Rio Coffee, 
 800 lbs., @ 18c. 
 
 Sell Wm. Johnson, 144 Lyell Ave., on ^, 4^ lbs. Mackerel, @ 12c.; 1 lb. B. Tea, 55c.; 2 lbs. Rio 
 
 Coffee, @ 24c. 
 
 3. 
 
 Give Smith, Perkins & Co., your note at 10 days, payable at College Bank, to apply on <^, 300.00. 
 {J. and B. B.; see 3, page 81.) 
 
 Note.— Before entering this note, draw a red line across both pages in the Bill Book, Ix'low the last entry, to separate 
 this from the i)revious sets. 
 
 Receive cash of A. Thompson, on <^, 15.00. (,/. and C. B.) 
 
 it 
 Buy of Smith, Perkins »& Co., on <^, 12 doz. Brooms, @ 2.25; 4 doz. Wood Pails, (9i 2.00. 
 
 » 
 
 Sell James Jamieson, 27 Broadway, on <^, 25 lbs. A Sugar, @ 10c. ; 4 lbs. J. Tea, @ 80c.; 2 lbs. 
 
 Rio Coffee, (a) 24c. 
 
 5. 
 
 Pay Clerk cash, to apjdy on Salary, 5.00. {C. B.) 
 
 Cash sales, per Cash Drawer, 246.75. (C. B.) 
 
 6. 
 
 Sell Mrs. Eliza Smith, on <^, 10 lbs. B. Sugar, @ 10c. ; 4^ lbs. MiR^keicl, (a^ 12c.; 2 Wood Pails, 
 
 @ 25c. 
 
 »> 
 
 Receive cash of Wm. Johnson, 3.00, and of James Jamieson, 5.00, on ^jc. {J. -and C. B.) 
 
 7. 
 
 Buy of H. Gordon & Co., City, on your note at 20 days, payable at College Bank, 2 bbls. A Sugar. 
 250 lbs., @ 10c. ; 2 bbls. Brown Sugar, 250 lbs., @ 8^c. ; 1 ch. Japan Tea, 35 lbs., @ 55c. {B. B.; 
 see 3, page 81; also see note below. ) 
 
 Note. — No entry is to be made in the Journal, because your indebtedness is not to Gordon & Co. personally, but ir 
 the form of Bills Payable, and is shown by the Bill Book. 
 
 » 
 Sell Mrs. Eliza Smith, on <^, 2 Wood Pails, @ 22c.; 1 Broom, 25c.; 1 lb. Rio Coffee, 24c. 
 
V 
 
 » 
 
 I- 
 
 i ' 
 
 84 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 Cash sales for the day, per Cash Drawer, 1:;J7.G4. 
 
 8. 
 Receive of Alex. Thonii)son, his note at 3 days, payable at Traders' Bank, to apply on <f, 25.00. 
 (/. and B. B.) 
 
 Note.— A gcKMl rule for the student, who is familiar with <loul)Ie entry, to use in journalizing by single entry, is, first 
 to decide what journal entry would 1k" made for the transjiclic.n hy the ilmihU' entry metlKMl; tiun if he lind in such entry 
 that a jjerson is to be eillier debited or credited, the same i)erson must be debited or credited in the single entry Journal, 
 otherwise no journal entry is to be made. 
 
 9. 
 
 Sell Wm. Johnson, on ^, 50 lbs. B. Sugar, @ O^e.; 1 Broom, 25c.; 5 lbs. l{io Coffee, @ 24c.; 2 
 Wood Pails, @ 22c. 
 
 Pay cash for ton of Coal for oflBce use, 6.50. 
 
 99 
 
 10. 
 
 Pay Smith, I'erkiiis & Co., cash to apply on <^, 100.00. (,/. and C. B.) 
 Buy of Geo. F. Doyle, Salina, on «t, at 10 days, 25 bbls. Salt, @ 1.25. 
 
 n 
 
 Wm. Johnson returns for credit, 4 lbs. of the Kio Coffee bought Uth inst., the quality not being 
 satisfactory. 
 
 n. 
 
 Sell A. Thompson, 10 bbls. Salt, @ 1.40; 2 ch. J. Tea, 70 lbs., (cb, TOc.; 3 bbls. B. Sugar, 375 lbs., 
 @ 10c. Keceive in ijayment, cash, 25.00. Balance on % {J, and C. B.) 
 
 NoTK.— In transactions like the above in single entry, it is customary to make an entry in the .Journal debiting the 
 person with the whoUj bill purchased, and then make a second entry giviug Lim credit for lUe amount paid. 
 
 1? 
 
 Pay Clerk cash to apply on Salary, 10.00. 
 
 ii 
 
 Receive cash of Mrs. Eliza Smith, to apply on ^, 1.50. 
 
 13. 
 Pjiv Smith, Perkins k Co., to apply on <f, cash, 50.00, and your note at ten days, payable at 
 College Bank, 100.00. (/., C. B. and B. B.) 
 
 » 
 
 Sell Wm. Johnson, on «/-, 10 lbs. A Sugar, @ 10c. ; 2 lbs. J. Tea, @ 85c. ; 5 lbs. Rio Coffee, @ 22c. 
 
 14. 
 Buy of Geo. F. Doyle, on (^, at 10 days, 25 bbls; Salt, @ 1.25. 
 
 » 
 
 i> 
 
 15. 
 
 Receive cash of A. Thompson, for his note of 8th lust, due to-day, 25.00. {C. B. and B. B.) 
 
 Cash sales, as ])er Cash Drawer, 358.40. 
 
 Pay Geo. F. Doyle's sight draft on you to apply on ^, in cash, 25.00. {J. and C. B.) 
 
 I*ay Book-keeper cash, to apply on Salary, 25.00. 
 
 »> 
 
 Receive of A. Thompson, his note at ten days, payable at Traders' Bank, to balance ^, 119.50. 
 
 » 
 
 Sell James Jamicson, on '^c, 10 lbs. B. Sugar, @ O^c. ; 2 lbs. J. Tea, @ 80c. ; 5 lbs. Rio Coffee, @ 24c. 
 
 16. 
 Pay your note of 3d inst., favor of Smith, Perkins & Co., in cash, 300.00. 
 
 NoTF. — You may now balance the Cjish Book and post the foregoing transactions. Give each account one-fourlh of 
 a page sptwe. Omit " To" and " By " hereafter in iM)sting. The lM>oks are to l)e changed to doiible entry after you have 
 completed the posting, full instructions for which are given below. You should study those instructions very carefully, 
 and perform the work precisely as they direct. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 INSTRUCTIONS FOR CHANGING THE BOOKS TO DOUBLE ENTRY. 
 
 85 
 
 1st. ^An inventory is to be taken of the Mdse. and other property on hand, its value being 
 estimated at what the property could be purchased for at the present time. The result of such 
 inventory is as follows: 
 
 INVENTORY, JANUARY 16, 188-. 
 
 Mdse. on hand, ])er Inventory Book, 2T0 72 
 
 Horse and Wagon, valued at 2'25 00 
 
 StoreandLot, *' ". 2500 00 
 
 Note. — You may copy the al)ove Inventory in your .lournal, immediately following tlie last entrj'. 
 
 2d. *The resources and liabilities exhibited by the various books, viz: Ledger, Cash Book and 
 Bill Book, are next to be obtained, and, with the Inventories, arranged in a convenient form, as shown 
 below, for determining the condition of the business. 
 
 STATEMENT, JANUARY 16, 188-. 
 
 RESOURCES. 
 
 Mdse. , per Inventory, 270 72 
 
 Store and Lot, i)er Inventory, 2500 00 
 
 Horse and Wag(m, per Inventor}', 225 00 
 
 Cash, i)er Cash Book ^ 9G1 17 
 
 Bills Receivable, i)er Bill Book, 119 50 
 
 Personal Accounts, per Ledger, 16 93 
 
 4093 32 
 
 LIABILITIES. 
 
 Bills Payal)le, per Bill Book, 
 
 Personal Accounts, per Ledger, 
 
 165 50 
 500 50 
 
 732 00 
 
 SUMMARY. 
 
 Total Resources, 4093 32 
 
 " Liabilities,-. 732 00 
 
 Present Worth, 3301 32 
 
 Present Worth, 3301 32 
 
 Investment, 3225 00 
 
 Net Gain, -.. 130 32 
 
 Note.— Make a Statement like the above in your Trial Balance or Statement lx)ok. Do not copy the abt)ve form 
 merely, but verify all of the results by your own books. 
 
 3d. "The Present W^orth is found, as shown above, by taking the difference between the Resources 
 and Liabilities; and " the Net Gain is then found by taking the difference between the Present Worth 
 and the Investment. 
 
 4tli. " Since in Single Entry the Ledger contains only a portion of the Resources and Liabilities, 
 viz: Personal accounts, it is api)arcnt that, to change it to Double Entry, such additional accounts 
 must be opened as will cause the Ledger to exhibit all of the Resources and Liabilities of the business, 
 as shown by the foregoing Statement; and "the Net Gain must be credited to the Proprietor's account. 
 
 Note. — You may now proceed, in accordance with the above instructions, to open the additional accounts required 
 to place your Ledger in the Double Entry form. After you have completed this work, jour accoimts should correspond 
 with those given on pages 86-87. Mdse. will require one-half of a page space; all other accounts one-fourth of a page 
 each. 
 
 5th. "After the change to Double Entry has been made in accordance with the foregoing direc- 
 tions, your Ledger must ]>e in balance, because all of the Resources appear ui)on the Dr. side, and all 
 of the Liabilities and tlie Present Worth, which is the difference between the Resources and Liabilities, 
 appear upon the Cr. side. 
 
: i 
 
 SBSSPWrtSWStBtKeMM* 
 
 i 
 
 se 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 STUDENT. 
 
 188- 
 Juu. 
 
 i«; 
 
 Present Worth, 
 
 188- 
 Jun. 
 
 3 
 10 
 13 
 
 Bills Pav., 
 
 Cash, 
 
 Sundries, 
 
 188- 
 Jan. 
 
 1 
 11 
 
 Mdse. 
 
 188- 
 
 
 
 Jan. 
 
 
 Mdse. 
 
 
 
 
 a 
 
 
 7 
 
 K 
 
 188- 
 
 i 
 
 Jan. 
 
 2 
 
 Mdse. 
 
 
 9 
 
 << 
 
 
 13 
 
 i( 
 
 188- 
 Jan. 
 
 3 \rd8e. 
 15 
 
 188- 
 Jan. 
 
 15 
 
 Paid Draft, 
 
 188- 
 Jan. 
 
 V> 
 
 (fOods, jier Inv. 
 
 
 3301 
 
 32 
 32 
 
 188- 
 Jan. 
 
 1 
 
 i«; 
 
 If) 
 
 33«;i 
 
 
 Jan. 
 
 Invostinent, 
 JSiet (jain, 
 
 82 
 
 3225 
 13G 
 
 32 
 
 
 33(11 
 
 32 
 
 Present Worth, 
 
 33G1 
 
 32 
 
 SMITH, PERKINS & CO.. City. 
 
 . 
 
 
 
 188- 
 
 
 82 1 
 
 300 
 100 
 150 
 
 5 50 
 
 
 Jan. 
 
 1 
 «> 
 
 3 
 
 Mds(;. 
 
 A. THOMPSON. Aurora. 
 
 
 , 1 
 
 188- 
 
 
 82 
 
 84 
 
 1 
 
 Jan. 
 
 3 
 
 
 100 
 
 50 
 
 
 8 
 11 
 
 
 
 50 
 
 
 15 
 
 184 
 
 
 
 Cash, 
 
 Mills Uec'v, 
 Casli, 
 liills Uee'v, 
 
 MRS. ELIZA SMITH, 27 Main Street. 
 
 i 
 
 
 
 1 188- 
 
 
 82: 
 
 1 
 
 2 
 
 51 
 
 01 1 
 
 (1*1 i 
 
 Jan. 
 
 12 
 
 1 
 
 5 
 
 
 
 
 Cash, 
 
 WM. JOHNSON, 144 Lyell Ave. 
 
 
 
 
 1 188- 
 
 
 82 
 
 1 
 
 57 
 
 Jan. 
 
 
 
 
 G 
 
 04 i 
 
 
 9 
 
 
 3 
 
 80 i 
 
 
 
 
 1 a 
 
 01 J 
 
 
 
 Cash, 
 Mdse. ret'd, 
 
 JAMES JAMIESON. 27 Broadway. 
 
 
 
 ! 
 
 188- 
 
 
 82 
 
 
 3 
 
 B 
 
 18 
 75 
 
 B3 
 
 Jan. 
 
 
 
 ('ash, 
 
 GEO. F. DOYLE, Sallna. 
 
 
 
 
 ; 188- 
 
 
 
 25 
 
 
 Jan. 
 
 10 
 14 
 
 Md 
 
 se. 
 
 MERCHANDISE. 
 
 270 
 
 
 
 82 
 
 tot 
 
 50 
 
 
 82 
 
 250 
 
 50 
 
 
 82 
 
 35 
 
 1 07B 
 
 
 82 
 
 15 
 
 
 25 
 
 
 25 
 
 
 119 
 
 184 
 
 
 
 50 
 
 50 
 
 50 
 
 3 
 
 9G 
 
 B« 
 
 31 
 
 25 
 
 31 
 
 25 
 
 e 2 
 
 50 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 REAL ESTATE. 
 
 87 
 
 188- 
 Jan. 
 
 10 
 
 Store and Lot, 
 
 2500 
 
 EXPENSE. 
 
 188- 
 Jan. 
 
 10 Horse and Wagon, 
 
 
 225 
 
 
 
 
 CASH. 
 
 188- 
 Jan. 
 
 10 
 
 Ril. per C. K 
 
 
 961 
 
 17 
 
 
 
 BILLS RECEIVABLE. 
 
 188- 
 Jan. 
 
 10 
 
 On hand, i)er B. 15. 
 
 
 119 
 
 50 
 
 
 1 
 1 
 
 BILLS PAYABLE. 
 
 
 
 
 188- 
 Jan. 
 
 10 
 
 Outstanding, \>vr li. B. 
 
 1C5 
 
 50 
 
 Note. — You maj' now continup the Inisinoss, the l>ooks to l)e kept bj' Double Entrj'. Tlu' ronibincd D.iy B«M»k :»inl 
 Journal form, as illustrated on paj^e 04, is to bo used. Continue the use of the C'tish Book and Bill BtK)k. 
 
 JANUARY 17, 188-. 
 Uuy of IT. Gordon & Co., on «>, 10 bhls. B. Sugar, 1250 ll)s., @ 8c. (J.) 
 
 Cash sales, }>er Cash Drawer, 75.25. {J. and C. B.) 
 
 18. 
 Sell Wm. Johnson, on <f, 2 lbs. J. Tea, @ 80c.; 5 lbs. Rio Coffee, @ 25c.; 30 lbs. A Sugar, (^ lie. 
 
 » 
 
 Sell E. T. Miller, on his note at 15 days, ]iayable at City Bank, 5 bbls. A Sugar, 025 lbs., @. lO^e.; 
 10 bbls. B. Sugar, 1250 lbs., @ 9c.; 3 ch. J. Tea, 105 lbs., @ 05c. (/. and B. B.) 
 
 19. 
 Receive cash of Mrs. Eliza Smith, to balance "jc. 
 
 Buy of II. Cordon & Co., on % 15 bbls. A Sugar, 1875 lbs., @ OJc. 
 
 20. 
 Sell James Jamieson, (ui «(•, 20 lbs. A Sugar, @ lie.; 5 lbs. Rio Coffee, Ut 24c.; 2 l»bls. Sail, (Tr 1..50. 
 
 Ciish sales, i)er Cash Drawer, 115.05. 
 
 (Jive Geo. l'\ Dovle yotir note at 30 days, ])ayable at College Bank, to balance <^. 
 
 Buy of H. (Jordon & Co., on «/f, 5 ch. J. Tea, 175 lbs., @ GOc. 
 
 21. 
 
 22. 
 
 Sell A. Thom])son. 10 bbls. Salt, (ob, 1.40; 2 ch. J. Tea, 70 lbs., @ 70c.; 2 ch. B. Tea, 70 lbs., @ 
 55c. Receive cash, 50.00. Balance on '«(•. 
 
IM 
 
 88 
 
 THEORE17CAL AND PRACTICAL BOOK KEEPING. 
 
 22. 
 
 Pay Smitli, Perkins & Co., cash on ajc, 100.00. 
 Cash sales, per Cash Drawer, 98.34. 
 
 » 
 
 23. 
 Sell Frank C. Iledstrom, Sardinia, 5 ch. B. Tea, 175 lbs., (ft 55e • a doz W I'.il. (A 9 rn , , 
 Brooms, @ 2.f;o; 2 l.ulf bl,l«. Mackerel. @ 4.75; 5 ,bls A K ,^,r c«5 lb, ;^ ,ol «^ ' 
 
 at 10 da,., pavable at First National Bal.k^ .0.,.00. Baiate ^^r^. ' ® '"*" ^'"^''^ "" """-' 
 
 Eeceive casli of AVni. Johnson on o(r, 5.00. 
 
 » 
 
 24. 
 
 »» 
 
 25. 
 
 M 
 
 f» 
 
 Buy of Geo. F. Doyle, on your note at ^0 days, 50 bbls. Salt, @ 1.25. 
 
 Cash sales, per Cash Drawer, 138.40. 
 
 Pay cash for jn'mninent improvements ou store, 200.00. 
 
 Pay Gas Bill in cash, 11.75. 
 
 Sell Wm. Johnson, on a,, 5 Ihs. J. Tea, @ 80c.; 50 lbs. B. Sugar, @ O^c; 10 lbs. Kio Coifee, @ 25c. 
 
 26. 
 Receive cash of James Jamieson, to balance «;/r, 11.33. 
 
 >» 
 Pay your note of 13tli inst., due to-day, in easli. 
 
 27. 
 
 28 
 Pay 11. Gordon & Co. cash on <^, 178.44. 
 
 Receive cash of A. Thompson, for his note of 15th inst.. due to-day. 
 
 29. 
 
 Cash sales, per Cash Drawer, 21fi.40. 
 
 Sell the Horse and Wagon for cash, 235.00. 
 
 » 
 
 30. 
 
 Pay your note of 7th inst., due to-day, in caslj. 
 
 31. 
 Pay Book-keeper 25.00, and Clerk 15.00, cash in full of services to date. 
 
 INVENTORIES, JANUARY 31, 188-. 
 
 MDSE., as per Inventory Book, 
 
 REAL ESTATE.— Store and Lot, valued at 
 
 - 42G 48 
 
 2700 00 
 
 You may now post and make a Balance Sheet. Post to the Cash account the total receipts and 
 
 separately. After you have completed the Balance Sheet, close the Ledger and brin<. down the 
 resources ,nd habdit.es and pr<.ve them upon a separate sheet of paper, as illustrated on pagelo a^d 
 ,)resent the proo , together with your Ledger, to the teacher for inspection and approval. 
 
 i346ifNe:i::i!:2^.;r"'^'^ '"'• ^" '-"'''^ ''''-''^ '''''' ^^^^""--' ^^^^-^^^ ^'^^^^^^^ 
 
 188- 
 Feb. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 FEBRUARY 1, 188-. (See Note No. 1.) 
 
 89 
 
 (Student's name). 
 
 Commenced business this day with the following resources and 
 liabilities: 
 
 Cash on hand, per Cash Book, 
 On deposit in College Bank, 
 100 bbls. Flour, 
 
 C. D. French's note, per Bill Book, 
 Jas. Harris, on ^, 
 
 » 
 
 (Student's name), 
 
 Note favor Geo. Wells, i)er Bill Book, 
 Interest accrued, 80 davs {see iV'o/e Xo. 2), 
 Due Hill & Co., on<^,' 
 
 College Bank, 
 
 Amount on deposit, as above, 
 
 Jas. Harris, 
 
 On account, as above. 
 
 Hill & Co., 
 
 On account, as alxjve. 
 
 White Bro's, 
 
 Bo't Mdse. on <^, per Invoice No. 1, 
 
 3. 
 Hill & Co., 
 
 Paid them, on <^, by check on College Bank, 
 
 College Bank, 
 
 Check favor of Hill & Co., 
 
 Cr. 
 rces and 
 
 
 
 8500 
 
 
 @ 8.00, 
 
 3000 
 
 4000 
 
 800 
 
 200 
 
 500 
 
 
 
 
 Dr. 
 
 500 
 
 6 
 
 375 
 
 67 
 
 881 
 
 67 
 
 Dr. 
 
 
 
 4000 
 
 
 Dr. 
 
 
 
 500 
 
 
 Cr. 
 
 
 
 375 
 
 
 Cr. 
 
 
 
 1181 
 
 
 Dr. 
 
 
 
 100 
 
 
 Cr. 
 
 
 
 100 
 
 
 SINGLE ENTRY CASH BOOK. 
 
 
 Invested by Student, 
 
 BECEIPTS. 
 
 PAYMENTS. 
 
 1 
 
 3000 
 
 
 
 
 4 
 
 Deposited in College Bank, 
 
 
 
 500 
 
 
 4 
 
 15 bbls. Beef, @ 18.75, 
 
 281 
 
 25 
 
 
 
 6 
 
 C. D. French's note, 
 
 200 
 
 
 
 
 »' 
 
 White Bro's, on ^c, 
 
 
 
 500 
 
 
 7 
 
 R. J. Barton, to applv on Mdse. 
 
 300 
 
 
 
 
 8 
 
 Office Books and Stationerv, 
 
 
 
 25 
 
 
 9 
 
 0. W. J(mes, on "/c. 
 
 250 
 
 
 
 
 10 
 
 Deposited in (-ollege Bank, 
 
 
 
 1000 
 
 
 12 
 
 Jas. Harris, on <^', 
 
 200 
 
 
 
 
 Note No. 1. — The month of February is to be worked by Single Entry, as explained in the previous set. A few of 
 the first entries, as they should be made in your Journal, are given above. In addition to the Personal accounts, however, 
 a Bank account is to be kept in the Ledger. A different form for keeping a Single Entry Cash Book is also intn^iucetl 
 (see farm above). On March 1 the Ixjoks are to l)e changed to Double Entry, and the business continued through March 
 by that method. 
 
 Note No. 2. — For the purpose of illustrating both methods of computing interest and discount, the one in general 
 use in business will hereafter Ih; usetl, viz: 360 days, or 12 months of 30 days each, will be considered a year, and taken 
 as a basis of computation. The Student is recommended to use the 6 per cent, or short method of working interest and 
 discount 
 
90 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 !d 
 
 f 
 
 ! 
 I 
 
 [ 
 
 1. 
 
 FEBRUARY. 188-. 
 Commence business tljis day with the following resources and liabilities: 
 
 Resoih<'Es: Cash on hand, :}0()0.()(); on deposit in College Bank, 4000.00; 100 bbls. Hour @ 
 8.00; C. D. French's note, dated Jan. 4th last, at 30 days, :^00.00; Jas. Harris owes on V 
 500.00. ^' 
 
 Liabilities: Your note favor of Geo. Wells, dated Nov. 13 last, at 90 davs, ])avable at Colle-e 
 Bank, with interest, 500.00; Interest accrued 80 days on above note; due Hill & Co on 4 
 375.00. •* 7Cy 
 
 Buy of White Bro's, on % 50 bbls. Pork, @ 15.00; 25 bbls. Beef, @ 17.25. 
 Give Hill & Co. your check on College Bank, to apply on % 100.00. (J.) 
 Sell O. W. Jones, on % 25 l)bl8. Flour, @ 9.00; 15 bbls. Pork, @ 10.50. 
 Deposit cash in College liank, 500.00. 
 Sell for cash, 15 bbls. Beef, @ 18.75. 
 
 Buy of Geo. J. Marsh, on your note at 15 days, 50 bbls. Beef, @ 17.25. 
 Receive cash for a note due to-day. 
 Pay White Bro's cash on «(?, 500.00. 
 
 Sell R. J. Barton, 20 bbls. Beef, @ 18.50; 25 bbls. Flour, @ 9.00. Receive cash, 300.00. Balance 
 on «/c. 
 
 Pay casli for set of Oftice Books and Stationery, 25.00. 
 
 Receive cash of 0. W. Jones, on <^, 250.00. 
 
 Deposit cash in College Bank, 1000.00. 
 
 Sell H. A. Strong, on his note at 00 days, 25 bbls. Pork, @ 10.25. 
 
 Buy a Safe for office use, and i)ay for same by check on College Bank, 225.00. 
 
 Receive cash of Jas. Harris, on <^, 200.00. 
 
 Buy for cash, 25 bbls. Pork, @ 15.00. 
 
 Sell O. W. Jones, 25 bbls. Beef, @ 18.50; 25 bbls. Flour, @ 9.25. Receive his note at 10 days, 
 
 with interest, jiayable at City Bank, 500.00. Balance on «(r. 
 Your note and the interest upon it, 7.75, due to-day, has been charged to your '^ at College Bank. 
 Sell for cash, 10 bbls. Pork, @ 10.50. 
 Draw cash from the business for your private use, 50.00. 
 Sell Benj. C. Green, 15 bbls. Beef, @ 18.50; 10 bbls. Pork, (^ 10.25. Receive cash, 150.00, and 
 
 his note at GO days, payable at Traders' Bank, for balance. 
 Give White Bro's your check on College Bank, to apply on % 300.00. 
 Sell for cash, 10 bbls. Flour, @ 9.25; 5 bbls. Pork, @ 10.25. 
 Buy of White Bro's, on % 25 bbls. Beef, @ 17.25. 
 Receive cash of Jas. Harris, to balance ^, 300.00. 
 
 Buy of Geo. J. Marsh, on your note at 25 days, ])ayable at College Bank, 50 bbls. Pork, @ 15.00. 
 R. J. Barton has compromised with his creditors at 25 ^. Settle his «(? on that basis, receiving cash. 
 Pay your note due to-day in cash. 
 Receive cash of O. W. Jones, on «^, 222.50. 
 Get H. A. Strong's note, received lltli inst., discounted at College Bank, and receive cash for the 
 
 proceeds. (See Note 2, paije 89. ) 
 Sell D. B. Oliver, on % 20 bbls. Pork, @ 10.25; 10 bbls. Beef, @ 18.50. 
 Receive cash for a note, with interest, due to-day. 
 Pay Salaries, 50.00, and Rent of Store, 50.00, in cash. 
 
 INVENTORIES, FEBRUARY 28. 188-. 
 
 15 bbls. Flour, @ 8.00; 40 bbls. Pork, @ 15.00; 15 bbls. Beef, @ 17.25. 
 Office Safe, valued at cost. 
 
 Balance the Cash Book. The cash on hand shouhl be 2807.09. In posting, give Bank account 
 one-half of a i)age space; other accounts one-fourth of a i)age. After posting, i)roceed to change the 
 books to Double Entry, according to the instructions given in the i)revious set on ])age So. The State- 
 ment should show a Present Worth of 7534.94. 
 
 After the necessary steps have been taken to change the Ledger to Double Entry, take a Trial 
 Balance, to be sure that your Ledger is in balance before proceeding witii Maicn Conlinm- tiie use 
 of the Bill Book and Cash Book in March, using the Double Entrv form of Casli Book. 
 
 2. 
 
 3. 
 
 4. 
 
 5. 
 
 0. 
 
 7. 
 
 8. 
 
 9. 
 10. 
 11. 
 12. 
 
 13. 
 14. 
 
 15. 
 
 10. 
 17. 
 
 18. 
 20. 
 21. 
 22. 
 23. 
 
 24. 
 
 26. 
 27. 
 
 28. 
 
 1. 
 
 3. 
 
 0. 
 
 8. 
 
 10. 
 
 11. 
 
 1 f^» 
 
 13. 
 
 15. 
 
 10. 
 
 18. 
 
 21. 
 
 23. 
 
 24. 
 20. 
 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 MARCH. 188-. 
 
 91 
 
 Admit Geo. H. Whitney and W. D. Welch as equal partners in the business. 
 
 Geo. H. Whitney invests: Cash, 0324.34; A. C. Holden's note, dated Jan. 7th last, at CO days, 
 
 with interest, 1200.00; Interest accrued to date. 
 W. D. Welch invests: Cash, 0054.94; a note made bv Bentlv & Gardner, dated Feb. 10th last, at 
 
 7 7 %, »t 
 
 90 days, 1500.00; Discount to maturity. 
 Sell for cash, 15 bbls. Flour, @ 9.25. 
 Deposit in College Bank, cash, 12000.00. 
 
 Buy of Clark & Co., 300 bbls. Beef, @ 17.25; 50 bbls. Pork, @ 15.00. Give in payment, your 
 ' note at 10 days, 5175.00; your note at 30 days, 750.00; both notes payable at College Bank, 
 
 with interest. 
 Take out judicy of insurance for one year on ]m)])erty in store, 10,000.00. Pay premium at U '^ 
 
 in cash. 
 Receive cash of 0. W. Jones, on ^c, 100.00. 
 Sell Redmond Bro's, Vienna, 25 bl)ls. Pork, @ 10.25; 25 bbls. Beef. @ 18.50. Receive in jiayment, 
 
 cash, 108.75; their note at 20 days, with interest, payable at First Nati«mal Bank, Vienna, 
 
 400.00. Balance on "/c. 
 Deposit cash in College Bank, 500,00. 
 Buy of H. A. TrafTord, House and Lot, 344 Plymouth Ave., for 0000.00. Assume a mortgage on 
 
 same of 2000.00, with interest accrued from Jan. 2 last, 03 days, and pay him the balance by 
 
 check on College Bank. 
 Buy 500 bbls. Flour, @ 8.00, and pay for same by check on College Bank. 
 Pay White Bro's, to ap])ly on <^, B. C. Green's note rec'd 17th ult., less discount to maturity. 
 Accept a draft at 10 days' sight, drawn on W. D. AVelch by W. T. Owens, for his jji-ivate account, 
 
 600.00. 
 Pav cash for Coal for office use, 12.80. 
 
 Receive of D. B. Oliver, to apply on "/c, his check on Merchants' National Bank, 310.00. 
 Sell 0. W. Jones, on % 200 bbls. Flour, @ 9.25; 100 bbls. Beef, @ 18.50. 
 A. C. Holden, whose note Whitney invested and guaranteed its payment, has compromised with 
 
 his creditors at 50 io. Receive cash and charge the deficiency to Whitney's account. 
 Deposit in College Bank, Oliver's check, rec'd 10th inst. 
 Pay Hill & Co. cash to balance ^c. 
 Receive cash of 0. W. Jones, on ^, 3543.75. 
 Buy of Scott, Seymour k Scott, on «(•, 250 bbls. Pork, @ 15.00. 
 
 Exchange checks with Wm. E. Scott for his accommodation. 500.00. His check is dated 10th inst. 
 Your note due to-day, with interest, has been charged to your ^ at College Bank. 
 Sell for cash, 100 bbls. Beef, @ 18.50. 
 Wm. E. Scott being unable to provide for the check rec'd of him 13th inst., gives you his note at 
 
 10 days, with interest, endorsed by Morgan & Howe. 
 Draw a draft on Redmond Bro's at 00 days, for 200.00, and get it discounted at College Bank. 
 
 receiving credit for the proceeds. 
 Sell D. B. Oliver, on % 150 bbls. Pork, @ 10.25; 100 bbls. Flour, @ ^^.25. 
 Insure the House Xo. 344 Plymouth Ave. for 4000.00, at \\i>, for one year. Pay i»remium in 
 
 cash. 
 Receive of 0. W. Jones, to balance <^, his note at GO days for 250.00. 
 Accept Scott, Seymour & Scott's draft on you at 5 days' sight, i)ayable at College Bank, to apply 
 
 on % 2000.00. 
 Pay an accei)tance due to-day in cash. 
 
 Your note due to-day has been charged to your ^c at College Bank. 
 Student and Geo. H. Whitney doubting the responsibility of 0. W. Jcmes, Avhose note the firm 
 
 holds, W. D. Welch offers to buy the note at 75 ^ of its face, which otter is accepted. Make 
 
 an entry to adjust the transaction. 
 Pay White Bro's cash on % 100.00. 
 Buy of Geo. J. Marsh, 150 bbls. Flour, @ 8.00; 50 bbls. Beef, @ 17.25. Give him your note at 00 
 
 davs, ])ayable at College Bank, for 500.00, and check on College Bank for balance. 
 Pay cash for i)ermanent rei)airs and im])rovenients on House No. 344 Plymouth Ave., 575.00 
 Receive cash for a note due to-day. 
 
IH 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 Deposit cash in College Bank, 5000.00. 
 - Clark & Co ^v-ho hold your note for 750.00, given them 2d inst, offer to discount 25 00 and the 
 
 c^^ '"" '''' ^"" '' '''-'''• ^^^^^'^ ''''' ^•'•'••-^•^^-^ -^ ^'^ ^J>-» ^ ^^-^ - 
 
 29. Your acceptance due to-day has heen charged to your ^ at College Bank 
 
 Sell the House and Lot No. 344 Plymoutli Ave. to Jas. W. Fonda for G500.00. In addition to this 
 pncc^ he allows you for the permanent repairs and improvements paid for the 2( t inst and 
 also f 7.O0 on the insurance paid 18th inst. He assumes in pavuK nt the nu.rt<;. o 2 (^nroo 
 and accrued interest; gives you his check on Mechanics' Savings Bank fo^^lO^ 83 I d a 
 mortgage upon the property for the halance. ^i^^-^i, ami a 
 
 Receive cash for a note due to-day. 
 31. Keceive cash of 1). B. Oliver, to halance % 3562.50. 
 
 Pay Salaries and Kent of Store in cash, loo.oo. 
 
 Deposit cash in College Bank, 7000.00. 
 
 INVENTORIES, MARCH 31, 188-. 
 
 MDSE — 150 hhls. Flour, @ 8.00; 140 l)hLs. Beef, @ 17.25. 
 
 EXPENSE— Insurance unearned. 137.50; Office Safe, valued at 5 ^, l)elow cost. 
 
 for tltt^ti? n-f .V^^^^^^^^^^ Cash on hand, 1790.00. Post and make out a Balance Sheet. Net Gain 
 for the im.nth l(.,4.9o Close the Ledger and prove the halances as heretofore instructed. I'resent 
 your books and proof of the balances to the teacher before i)n»ceeding with the next set. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 81.-' What is the distingnisliing feature of Single Entrv hook-keeping? 'To what extent 
 
 .8 It necessary to record business transactions in Single Entry? "MVhat ho<.ks are generallv used? 
 
 V\ hat additiona hooks are sometimes employed? Mn Single Entrv, why can vou not show in detail 
 
 your gains and losses.'' • How do you determine your Net (Jain or Net Loss? '^ When will the results 
 
 exnibit a Net Loss? • 
 
 Page85.-«What is the first step preparatory to changing books from Single to Double Entry? 
 The second step? --u ^ ,,y ^^^^^ ^j,^ p^.^^^^,^^^ ^^.^^^.^^^ ,^^ ^^^^^^^^^ ^^^^^^^^.^^ ^^^^ ^^^^ ^^^.^^ ^^^ ^^^^ ^^^^^^ ^^^^^ .^^ 
 
 determined ? \\ hat add.tmnal accounts is it necessary to open to change the Ledger to Double 
 Entry? AVhat is the final step to place the Ledger in halance? " Wiiy is the Ledger then in balance' 
 Miscellaneous—From what sources do you get the information necessary to make out a statement 
 of the Resources and Liabilities? Could you find your Net Gain or Net Loss if you did not know what 
 you were worth at commencing? Could you find your present worth? If in making out the statement 
 preparatory to changing to Double Entry, a resource should be omitted, how would it affect the Net 
 bum. VV hat entry would be nuide in the Double Entry books to correct such an omission •■' 
 
 SPECIAL COLUMN JOURNAL. 
 
 ' The Special Column Journal is a Journal provided with special or separate columns for those 
 items which occur most frequently in the business. 
 
 ■'' The advantage of using this form of Journal is in the saving of time and labor by not ]>osting to 
 the accounts the separate items which are carried to the special columns, 'the footings only of these 
 columns being posted daily, weekly or monthly, as desired. 
 
 * All items for which no special columns are provided are placed in the General or Sundries 
 column, and each item posted sej)arately, as in the ordinary Journal form. 
 
 In the form illustrated on page 94 two special columns, Cash and Mdse., are used on each side of 
 the Journal. * The number of special columns is not limited, however. * Any item which occurs 
 with sufficient frequency, either upon the debit or credit side, to make it desirable, may have a special 
 column })rovided for it. In many kinds of business it is desirable to i)rovide a special column for 
 Expense ui)on the debit side of the Journal. 
 
 ^ The columns are to be footed at the bottom of each page, and proved before being carried forward 
 to the next page. ® The sum of the three columns upon the debit side of the Journal must equal the 
 sum of the three upon the credit side. 
 
 • In extending the amounts, particular care must be exercised, or error? will be made by extending 
 amounts to the wrong columns. "*"" The Ledger would not balance if a special column item were by 
 mistake placed in the Sundries column, or a Sundries column item in a special column, because in the 
 first case the amount would be omitted, and in the second case it would be posted twice. 
 
 The memoranda of the preceding three months are used in illustrating this method. 
 
 The books to be used are the Special Column Journal, Bill Book and Ledger. The form of the 
 Journal is illustrated on pages 94-98. 
 
 Perform the work from the memoranda, however, consulting the illustrations only when necessarv. 
 
 The letters J., C. B. and B. B., together with the notes given in the memoranda, apply to the 
 Single Entry work, and are not to be observed in working this set. 
 
 9? 
 
Tr 
 
 ' . 
 
 f •♦ 
 
 I 
 
 94 
 
 
 TUEUKETICAL AND PRACTICAL BOOK-KEEPING. 
 
 ^ 
 
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 TIIEOREl'ICAL AND PRACTICAL BOOK KEEPING. 
 
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 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 97 
 
 , I 
 
 JANUARY 3. 188- 
 
 MD8E. 
 
 1071) 
 
 CASH. 
 
 690 
 
 38 
 
 246 
 
 SUNOKIES 
 
 to 
 
 65 
 
 50 
 
 1144 
 
 50 
 
 u: 
 
 64 
 
 1072 
 
 77 
 
 3113 
 6 
 
 08 
 18 
 
 L.r, 
 
 12 
 
 15 
 
 01 
 
 11 
 
 Jas. Jamiivson, To Mdsc. 
 
 27 IJroadway. 
 
 25 11)8. A Su^ar, 10c. , 
 4 ** J. Toa, 80c., 
 2 ** R. Coffee, 24c., 
 
 5. 
 
 Expense, To Cash, 
 
 Clerk's Salary. 
 
 Cash, ' To Mdse. 
 
 Sales per cash drawer. 
 
 Mrs. E. Smith, To Mdse. 
 10 lbs. B. Sugar, lOc, 
 4i " Mackerel, 12c., 
 2 Wood l*ails, 25c., 
 
 2.50 
 
 3.20 
 
 .48 
 
 L.r 
 
 BUNDRIBB. 
 
 1 
 
 .51 
 .50 
 
 25 
 
 93 
 
 6 
 
 100 
 
 3265 
 
 11 
 
 64 
 
 » 
 
 Cash, 
 
 Mdse. 
 
 To Wm. Johnson, 
 Jas. Janiieson, 
 Rec'd on account. 
 
 To Bills Payable, 
 Bo't of 11. Gordon &"Co., on 
 note as per B. B., Invoice 
 No. 4. 
 
 18 
 
 14 
 
 Mrs. E. Smith, To Mdse. 
 2 Wood Pails, 22c., 
 1 Bnxmi, 
 1 lb. R. Coffee, 
 
 .44 
 .25 
 .24 
 
 f. 
 
 50 
 
 34 
 
 1." 
 
 1(1 
 
 Cash, To Mdse. 
 
 Sales per cash drawer. 
 
 8. 
 
 Bills Receivable, To A. Thompson, 
 Rec'd note on f^, per B. B. 
 
 Wm. Johnson, To Mdse. 
 
 50 lbs. B. Sugar, 9^c., 4.75 
 
 1 Broom, ,25 
 5 lbs. R. Coffee, 24c., 1.20 
 
 2 Wood Pails, 22c., .44 
 
 Expense, To Cash, 
 
 Coal for office. 
 
 10. 
 
 Smith, P. & Co., To Cash, 
 Paid on <^. 
 
 14 
 12 
 
 16 
 
 14 
 
 4619 
 
 CASH. 
 
 3 
 
 65 
 
 50 
 
 2." 
 
 4717150 
 
 5 
 
 6 
 
 100 
 
 111 
 
 50 
 
 50 
 
 MDSE. 
 
 263 
 
 6 
 
 46 
 
 18 
 
 24<; 
 
 75 
 
 01 
 
 127 
 
 93 
 
 64 
 
 6 
 
 64 
 
 653 
 
 61 
 
 JANUARY 10. 1 se- 
 
 ll DSE. 
 
 1144 
 31 
 
 50 
 25 
 
 96 
 
 31 
 
 1207 
 
 25 
 
 96 
 
 CASH. 
 
 1072 
 
 77 
 
 25 
 
 SUNDRIES 
 
 50 
 
 25 
 
 358 
 
 1482 
 
 40 
 
 67| 
 
 3265 
 
 34 
 
 75 
 
 K 
 
 50 
 
 ur. 
 
 150 
 
 3 80 
 
 25 
 
 25 
 
 3554 
 
 64 
 
 Mdse. To Geo. F. Doyle, 
 
 Bo't on «/c, i)er Inv. Hso. 5. 
 
 Mdse. To Wm. Johnson, 
 
 4 lbs. R. Coffee returned, 24c. 
 
 11. 
 
 A. Thompson, To Mdse. 
 
 Cash, 
 
 10 bbls. Salt, 1.40, 14. 
 
 2 ch. J. Tea, 70 lbs., 70c., 49. 
 
 3 bbls. B. Sugar, 375 lbs., 
 
 lOc, 37.50 
 
 R'H-*d casli. 
 i>ulance on ^c, 
 
 25. 
 75.50 
 
 L.F. 
 
 SUNDRIES, 
 
 1 i 
 
 Expense, 
 Cash, 
 
 12. 
 To Cash, 
 
 » 
 
 To Mrs. E. Smith, 
 
 Rec'd on «6. 
 
 13 
 
 Smith, P. & Co., To Cash, 
 
 Bills Payable, 
 Paid on "/?, cash, 50. 
 
 Note per B. B., 100. 
 
 Wm. Joiinson, To Mdse. 
 
 10 lbs. A Sugar, lOc, 1. 
 
 2 '' J. Tea, 85c., 1.70 
 
 5 '* R. Coffee, 22c., 1.10 
 
 14. 
 
 Mdse. To Geo. F. Doyle, 
 
 Bo't on '^c, per Inv. No. 6. 
 
 Cash, To Bills Receivable, 
 
 Rec'd of A. Thoni})son, for liis 
 note due to-day per B. B. 
 
 Casli, To Mdse. 
 
 Sales per cash drawer. 
 
 15. 
 
 Geo. F. Doyle, To Cash, 
 
 Paid his sight draft. 
 
 Exi)ense, To Cash, 
 
 Paid Book-keeper's salary. 
 
 4717 
 31 
 
 50 
 25 
 
 9(: 
 
 100 
 
 31 
 
 25 
 
 4907 
 
 50 
 
 25 
 
 46 
 
 CASH. 
 
 Ill 
 
 50 
 
 MDSE. 
 
 653 61 
 
 10 
 
 50 
 
 25 
 
 25 
 
 100 
 
 50 
 
 80 
 
 358 
 
 40 
 
 221 
 
 50 
 
 111631 
 
' 
 
 98 
 
 ' 
 
 i 
 
 ' 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 JANUARY 15. 188-. 
 
 MDSE. 
 
 CASH. 
 
 SUNOKIBS. 
 
 UF. 
 
 
 L.V.i 
 
 i 
 
 ! 
 
 1 
 8UNDRIR8. 
 
 CASH. 
 
 MD8E. 
 
 1207 
 
 90' 
 
 1482 
 
 07 
 
 3554 
 119 
 
 04 
 50 
 
 Bills Receivable, To A. Thompson, 
 Rec'd his note i>er B. B. to bal- 
 ance ('/c. 
 
 4907 
 119 
 
 40! 
 50 
 
 221 
 
 50 
 
 1110 
 
 31 
 
 
 
 
 
 3 
 
 75 
 
 
 n 
 
 Jas. Jamieson, To Mdse. 
 
 10 lbs. B. Sugar, 9^c., .95 
 2 *' J. Tea, 80c., 1.00 
 5 " R. Coffe, 24c., 1.20 
 
 16. 
 
 
 
 
 
 
 3 
 
 75 
 
 
 
 
 <;: 
 
 300 
 
 
 15 
 10 
 
 Bills rayable, To Cash, 
 
 *Paid note favor Smith, P. & 
 Co. 
 
 Cash, 
 Mdse. 
 
 15 
 
 10 
 
 
 90 
 50 
 00 
 
 52 
 
 300 
 
 50 
 
 
 
 1207 
 
 90 
 
 1482 
 
 3977 
 1482 
 1207 
 
 89 
 67 
 90 
 
 52 
 
 5020 
 
 521 
 
 1120 
 
 521 
 
 1120 
 
 00 
 
 
 0008 
 
 0068 
 
 
 " You may now balance the Journal as illustrated above, and post the foregoing transactions. 
 "Post the totals only of Cash and Mdse., as shown by the footings of those columns, the footings on 
 the left side to the debit and the footings on the right side to the credit of those accounts. {See Cash 
 account below.) All items in the Sundries columns are to be posted separately, as in the ordinary 
 Journal form. You may use the Ledger Folio (Ledger i)agc) instead of \/ to check the posting in this 
 set. See L. F. column, page 96. The items in the Sundries columns only, require checking. 
 
 CASH. 
 
 188- 
 Jan. 
 
 16 
 
 Sundries, 
 
 1482 I 07 
 
 188- 
 Jan. 
 
 10 
 
 Sundries, 
 
 521 
 
 50 
 
 After you have finished posting, take a Trial Balance, and then continue the same form of Journal 
 through Jannarv. At the end of January balance your Journal, as illustrated above, post, make out a 
 Balance Sheet and close the Ledger. Your results should agree with those given at the bottom of 
 page 88, except the Net Gain, which should be 394.08. 
 
 February and March are also to be worked by this method. Balance the Journal at the end of 
 February, post, make out a Balance Sheet, and close the accounts showing losses and gains. Your 
 results should agree with those given at the bottom of page 90. At the end of March make Balance 
 Sheet and close the Ledger, and present your books, with a proof of the balances, to the teacher for 
 inspection. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 93.— » Describe the Special Column Journal. ' What is the advantage of its use? ' How is 
 this advantage secured? * What disposition is made of items for which no special columns are provided.-* 
 ' Is the number of special columns limited? • Upon what does the opening of a specuil column for any 
 particular item depend? ' How freciuently are the items to be footed and proved? « H.)W are they to 
 be proved? • What error is to be particularly guarded against? '» What would be the effect upon the 
 Ledger if a special column item were extended to the Sundries column? Why? " If a Sundries column 
 item were extended to a special column? Why? 
 
 Page 98.—" How is the Journal balanced? " How is the jmsting done? 
 
 METHOD OF BOOK-KEEPING 
 
 ADAPTED TO THE REQUIREMENTS OF THE 
 
 EXECUTOR OF A WILL. 
 
 The following set is designed to illustrate the closing up of the estate of a person deceased by the 
 Executor of the Will. The Student is supposed to be the Executor, and will act as the personal 
 representative of the deceased. He will take possession of all property of whatever character, and, 
 after discharging all liabilities, will divide the remainder of the estate among the legal representatives 
 of the deceased, in accordance with the the terms of the Will. 
 
 The books to be used are the Journal and Ledger. 
 
 99 
 
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 100 
 
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 THEOUETICAL AND PRACTICAL BOOK-KEEPING. 
 
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 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 101 
 
 APRIL. 188-. 
 
 1. You (Student) have been appointed Executor of the Will of the late John H. Warner. The Will 
 
 provides that the widow of deceased, Eliza St. Clair Warner, shall have one-third of all 
 property belonging to the estate, and that the children, viz: John W., Mrs. Mary Warner 
 Roberts, William H., Jennie E. and George S., shall each receive one-fifth of the remainder 
 of such property. 
 
 A schedule of the real and personal estate of the deceased, made by yourself, assisted by Cornelius 
 Crittenden and Byron Rogers, as ai)praisers, exhil)its as follows (.sw entry on page 100): 
 
 125 acres of land, including buildings, constituting the Homestead, @ 90.00 per acre; 80 acres of 
 land in Michigan, @ 15.00; 100 Sheep, @ 2.50; 4 Work Horses, 100.00 each; 2 Yearling Colts, 
 40.00 each; 6 Cows, 30.00 each; 5 Hogs, 6.00 each; Poultry, estimated at 25.00; Harness, 
 estimated at 100.00; Machinery and Utensils, estimated at 450.00; Carriage, estimated at 
 100.00; Household Furniture, estimated at 600.00; Judgment against D. Gray, dated Jan. 
 IGth last, 74.89; Interest accrued 75 days on above; 12 Water Works G ^ Bonds, 500.00 each 
 at par; Interest accrued on same from Jan. 1 last, 3 months; Note of W. S. Dunn, at 90 days 
 from March 1 last, with interest, 1500.00; Interest accrued 31 days on above note; Note of 
 A. B. Enoch, at 90 days from Feb. 20 last, with interest, 225.00; Interest accrued 40 days on 
 above note; John Lynch owes on «(;, 40.00; William Burke owes on «^, 23.50; Cash on hand, 
 125.00; On deposit in Citizens' Savings Bank, 980.00; Interest accrued on above deposit from 
 Jan. 1 last, 3 months, at 5 ^ per annum. 
 
 2. You have ascertained that deceased was i idebted to the following persons in the sums named: 
 
 James Bryant, on account of Blacksmithing, 43.50; A. B. Enoch, Store account, 79.80; 
 Patrick Maloy, on account of Ditching, 16.25. 
 
 3. Deposit in Germania Bank, cash, 125.00. 
 
 4. Sell this day, at auction, the following personal property: 100 Sheep, @ 2.85 per head, to John 
 
 Martin, on his note at 3 mos. Avith interest, endorsed by Byron Devins, payable at Germania 
 Bank; 2 Work Horses, 94.00 and 140.00, to Wm. Gray, on his note at 3 mos. with interest, 
 endorsed by John H. Bly, payable at Germania Bank; 2 Work Horses, 102.50 and 110.00, to 
 Jerome B. Stevenson for cash; 2 Yearling Colts, 34.00 and 48.00, to William Fenner, on his 
 note at 3 mos. with interest, endorsed by Calvin Davis, payable at Germania Bank; 2 Cows, 
 28.50 and 31.00, to Ira McCall for cash'; 4 Cows, 34.00, 33.00, 29.75 and 41.00, to William 
 Chappoll, on his note at 3 mos. with interest, endorsed by Thos. Eddy, payable at Germania 
 Bank; 5 Hogs, @ 4.50 each, to Samuel N. Messncr for cash; Poultry, to Anson H. Wells for 
 cash, 24.00. 
 Harness, to Patrick Murphy, on his note at 3 mos. with interest, endorsed l)y M. B. Flynn, payable 
 at Germania Bank, for 88.00; Carriage, to Owen Storrs for cash, 98.00; Farming Utensils, 
 bought by John AV. Warner and charged to his account, 415.00; Household Furniture, bought 
 by the widow of deceased and charged to her account, 588.50. 
 
 5. Deposit in Germania Bank, cash, 416.50. 
 
 6. Pay Jas. Bryant and P. Maloy in full of account, by check on Germania Bank. ^ 
 
 9. A. B. Enoch pays his note and interest to date in cash, after deducting the amount due him on <^. 
 10. Pay Probate Judge's fee, 50.00, and Auctioneer's bill, 15.00, by check on Germania Bank. 
 Patrick Murphy offers to pay his note at its face, which offer you accept. 
 
 16. Sell the AVater AVorks Bonds to D. \\. Powers for cash at par, with accrued interest added. 
 Dei)osit in Germania Bank, cash, 6340.00. 
 
 17. Collect amounts due from John Lynch and Wm. Burke, in cash. 
 
 18. Wm. H. Warner desiring to purchase the 80 acres of Michigan land at the ai)i)raised valuation, it 
 
 has been deeded to him and charged to his account. 
 
 19. Have the following interest bearing notes discounted at Germania Bank, at 8 i discount, and have 
 
 the proceeds credited: John Martin's note, 285.00; Wm. Gray's note, 234.00; Wm. Fenuer's 
 note, 82.00; Wm. Chappell's note, 137.75. 
 
 Note— Get tlie interest on the face of the notes from their date to maturity at 6 per cent., and then discount the 
 amount at 8 per cent, for the time the notes have yet to run, 2 mo. 18 days. 
 
 20. Mrs. Mary AVarner Roberts takes the note of AVm. S. Dunn at its face, with accrued interest, to 
 
 apply upon her share in the estate. 
 Draw amount on dejwsit in Citizens' Savings Bank, and deposit it, together with the accrued 
 interest, in Germania Bank. 
 
102 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 > • 
 
 I ; 
 
 I 
 
 21. Pay Jennie E. Warner cash, 50.00. 
 
 23. John W. Warner lias determined to purchase tlie liomestead farm at the appraised valuation. You 
 Avill charge it to his account. Papers are to be executed on the 20th inst. 
 
 26. Messrs. Rowley & Johnston, attorneys, have returned the amount collected on the judgment 
 
 against D. Gray, 74.89, and interest to date, less their charge for collection, 10.00, and 
 Sheriff's fees, 5. 75. Receive balance in cash. ' 
 
 27. Deposit in Germania Bank, cash, 73.89. 
 
 Note. — You may now post and take a Trial Balance (not Balance Sheet), after which close the accounts showing 
 losses and gains directly into the Warner Estate account. 
 
 28. Appropriate, by check on Germania Bank, your fee as Executor of the Will, as provided by law, 
 
 viz: 5 ^ on the first 1000.00, 2^ ^ on the next 9000.00, and 1 ^ on the balance of the net credit 
 to the estate, 23,798.98, not counting the liabilities or expenses. {Debit Warner Estate for 
 the fees. ) 
 Note. — Post the above entry and each entry hereafter as soon as it is journalized. 
 
 Having ascertained the present worth of the estate, as shown by the difference in the Warner 
 Estate account, debit the Estate and credit Mrs. Eliza S. Warner her one-third, 7721.89, 
 and the children, John W. Warner, Mrs. Mary Warner Roberts, Wm. II. Warner, Jennie E. 
 Warner and Geo. S. Warner, each one-fifth of the remainder, as provided by the Will. 
 
 29. John W. Warner has this day executed a mortgage on the homestead farm for the balance due 
 
 Mrs. Eliza S. Warner from the estate. 
 John W. Warner has executed a second mortgage on the homestead to Jennie E. Warner, for the 
 balance due from him to the estate. 
 
 30. Give Mrs. Roberts, Wm. II. Warner, Jennie E. Warner and George S. Warner checks on Germania 
 
 Bank, for amounts due them. 
 
 Note. — All of the accounts in your Ledger should now balance. 
 
 QUESTIONS FOR REVIEW. 
 
 What does the foregoing set illustrate? IIow is an Executor appointed? What are his duties? 
 How are his fees computed? How is the amount found upon which they are computed? Why will 
 every account balance at the close? 
 
 PETTY LEDGER. 
 
 ' The following set is designed to illustrate a method of book-keeping by which all transient 
 accounts may be kept without opening them in the principal Ledger. 
 
 » An auxiliary Ledger, called the Petty Ledger, is employed, in which all accounts are opened that 
 are not likely to be permanent, active accounts; and in the principal or main Ledger an account called 
 Petty Accounts is opened, to represent these transient accounts and to keep the main Ledger in 
 
 balance. 
 
 ' This method saves space in, and facilitates taking a trial balance of, the main Ledger. 
 
 The books to be used are the Journal, Cash Book, Bill Book, Petty Ledger and Main ledger. 
 
 108 
 
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 104 
 
 THEOKETICAL AND PRACTICAL BOOK-KEEPING. 
 
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 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 105 
 
 MAY, 188-. 
 
 Note. — * The form of Journal illustrated on page 104. you will observe, is provided with an additional column, in 
 which the sales of Mdse. only are to be entered, the object being to facilitate posting. The footings of this 
 column are to be carried forward from page to page until the end of the month, and the total then posted to the 
 credit of Mdse. account. Rule the additional column in your Journal, if it is lacking. 
 
 1. Commence the Book and Stationery business with tlie following Resources : Cash on hand. 
 
 1000.00; Furniture and Fixtures, valued at 200.00; E. W. Hoag, City (J/. Z.), owes on <^, 
 350.00. (/. and C. B.) 
 
 Note. — Accoiints which are to be opened in the Petty Ledger will be indicated in the memoranda by the letters 
 P. L., and those to be opened in the Main Ledger by the letters M. L. 
 
 2. Receive from Fletcher & Co., New York (J/. Z.), a bill of Mdse. bought on <^, as per Invoice No. 
 
 1, 648.80. (/.) 
 Sell R. C. Sidway, Lakeville {M. L.), 2 doz. Robinson Arithmetic, @ 10.00 doz. ; U doz. Kerl's 
 Grammar, @ 9.00. (J.) 
 
 3. Sell G. W. Getman, City (P. Z.), G R. Arithmetic, @ 90c.; 3 Civil Government, @ 1.00. (/. and 
 
 P. L.) 
 
 Note. — Open an account with Getman in the Petty Ledger before making the journal entry. See form on page 106. 
 As a matter of convenience the items are entered in the Petty Ledger and omitted from the Journal. 
 
 4. Receive cash of E. W. Hoag on <^c, 100.00. (/. and C. B.) 
 
 5. Sell R. D. Brown, on his note at 10 days, 20 High School Dictionary, @ 2.25. {J. and B. B.) 
 Receive cash of G. AV. Getman, to a})ply on <^c, 5.00. (/., C. B. and P. Z. ) 
 
 6. Cash sales, as per Cash Drawer, 28.12. (/. and C. B.) 
 
 7. Give Fletcher & Co. your note at 15 days, to apply on "/c, 175.00. (J. and B. B.) 
 
 Sell Marsh & Grant, Fairport {P. Z.), 10 R. Arithmetic, @ 90c.; 10 K. Grammar, @ 75e.; 3 
 Knight's Commercial Law, @ 2.75. 
 
 Note. — Make the entry first in the P. L. Give each account in the Petty Ledger one-fourth of a page space. 
 
 9. Receive of Barnes & Co., Boston (JZ Z.), a bill of Mdse. bought on ^, as i)er Invoice No. 2, 
 520.25. 
 
 10. Sell Atkinson & Boyd, Eastport (M. Z.), 10 reams Foolscap, @ 2.25; 25 M. Buff Envelopes, (a>, l.GO. 
 Receive cash of R. C. Sidway on ^c, 15.00. 
 
 11. Open an account at City Bank and deposit cash, 500.00. 
 
 12. Give Fletcher & Co. your check on City Bank, to apply on ^c, 350.00. 
 
 13. Cash sales of Mdse., as per Cash Drawer, 36.04. 
 
 15. Give Barnes & Co. your check on City Bank, to apply on ^, 100.00. 
 
 17. Receive cash of Marsh & Grant, to apply on «(■, 10.00. (/., C. B. and P. Z.) 
 
 Sell R. C. Sidway, 15 Civ. Gov., @ 1.00; 10 H. S. Dictionary, (^ 2.25; 25 gro. D. Pencils, @ 1.75. 
 
 18. Receive cash for a note due to-day. 
 
 20. Accept Fletcher & Co.'s draft on you at 10 days, to apply on <^c, 50.00. 
 
 21. Sell L. Ayrault, Nunda (P. Z.), 20 reams Foolscap, ^ 2.25; 25 M. White Envelopes, @ 1.75. 
 
 22. Buy for cash a draft of 200.00 on Ninth National Bank, Boston, at:J^ exchange. Remit the 
 
 draft to Barnes & Co., to apply on «(;. 
 
 23. Receive of Atkinson & Boyd, to apply on ^c, their draft at 1 day's sight on Marcus Greenfield. 
 
 which Greenfield has accepted, 35. 00. 
 
 24. Sell L. & G. Freeman, City (P. Z.), 25 M. B. Envelopes, @ 1.60; 10 reams Foolscap, @ 2.25. 
 
 25. Pay your note due to-day in cash. 
 
 26. Draw a draft at sight on L. Ayrault, Nunda, to apply on ^c, 50.00, and deposit tlie draft in City 
 
 Bank to your credit, less cost of collectiou, 25c. (/. and P. Z. ) 
 Buy of AValker, Clinch & Co., City {M. Z.), Mdse. as per Invoice No. 3, 462.38. Give them your 
 check on City Bank, 62.38. Balance on ^c. 
 
 27. Receive cash for an acceptance due to-day. 
 
 28. Sell Atkinson & Boyd, 10 K. Commercial Law, @ 2.75; 20 R. Arithmetic, @ 90c.; 15 H. S. 
 
 Dictionary, @ 2.25. Receive in payment, their note at 15 days, 50.00. Balance on ^. 
 
 29. Receive cash of Marsh & Grant, to balance ^c. 
 
 30. Deposit in City Bank, cash, 300.00. 
 
 Sell J. J. Sidway, Canton {P. Z.), 40 gro. Steel Pens, @ 1.45; 25 gro. 1). Pencils, @ 1.75. 
 
 31. Credit D. W. Clark, Book-keeper (/*. L.), lii.s salary for the iiKmth, 50.00. 
 
•^mimmmmmSMSiltliSl^ 
 
 IM 
 
 1 
 
 106 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 FORM OF PETTY LEDGER ACCOUNTS. 
 
 G. W. GETMAN, City. 
 
 188- 
 May 
 
 G Rob. Aritli., 90c. 
 
 3 Civ. Cov't, 1.00 
 
 
 
 
 188- 
 
 j 
 
 
 5 
 
 40 
 
 May 
 
 5 
 
 
 3 
 
 
 
 
 
 ■ 
 
 4 
 
 
 
 Cash, 
 
 MARSH &. GRANT. Fairport. 
 
 188- 
 May 
 
 10 Rob. Arith., 90c. 
 
 10 K. (irammar, 75c. 
 
 3 K. Com'l Law, 2.75 
 
 
 
 
 188- 
 
 
 
 9 
 
 
 May 
 
 17 
 
 
 7 
 
 50 
 
 
 29 
 
 
 
 8 
 
 25 
 
 75 
 
 
 • 
 
 24 
 
 
 
 L. AYRAULT. Nunda. 
 
 188- 
 May 
 
 21 20 rms. Foolscap, 2.25 
 25 M. W. En v., 1.75 
 
 i 
 
 
 II 
 
 188- 
 
 
 
 45 
 
 
 May 
 
 27 
 
 
 43 
 
 75 
 
 
 
 
 • s 
 
 7» 
 
 
 
 Draft, 
 
 50 
 
 L & G. FREEMAN. City. 
 
 188- 
 Mav 
 
 24 
 
 20 M. B. Env., l.GO 
 
 10 rms. Foolscap, 2.25 
 
 
 40 
 
 
 
 
 
 22 
 
 50 
 
 
 
 
 a 
 
 so 
 
 
 
 INVENTORIES, MAY 31, 188-. 
 
 MERCHANDISE. — Per Inventory Book, 1203 88 
 
 EXPENSE. — Furniture and Fixtures, 200 00 
 
 You may now balance the Cash Book and post the montli's business, giving each account one-fourth 
 
 of a page space, except Petty Accounts, wliich will re(juire one-half of a i)age. Post the footing only 
 
 of the Mdse. Sales column to the credit of Merchandise account, an.l the footings of the Cash Book to 
 
 the Cash account, as heretofore instructed, omitting to post the c^-edit items of Mdse. and the Cash 
 
 items in posting from the Journal. 
 
 After you have completed the posting, prove first the Petty Ledger, as explained and illustrated 
 below. 
 
 The Petty Ledger does not balance, but may be proved as follows: * Find the difference between 
 the sides of the Petty Ledger, and compare it with the difference between the sides of the account 
 with Petty Accounts, in the Main Ledger; the two differences should agree. 
 
 • The reason of this is obvious, since for every entry made in the Petty Ledger a corresponding 
 amount was entered to the same side of the account with Petty Accounts in the Main Ledger. 
 
 PETTY LEDGER, MAY 31, 188-. 
 
 1 
 1 
 1 
 1 
 
 o 
 
 G. W. Getman, 
 L. Ayrault, 
 L. & G. Freeman, 
 J. J. Sidvvav, 
 D. W. Clark, 
 
 PROOF. 
 
 8 
 
 88 
 
 62 
 
 101 
 
 J61 
 
 40 
 75 
 50 
 
 75 
 
 40 
 
 5 
 50 
 
 50 
 
 105 
 
 Petty Accounts, Dr 286 15 
 
 Cr 129 75 
 
 it 
 
 a 
 
 Balance, 156 40 
 
 Petty Ledger, Dr. 
 Cr. 
 
 (< 
 
 (i 
 
 261 40 
 105 00 
 
 Balance, 156 40 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 107 
 
 After proving the Petty Ledger, make out a Balance Sheet from the Main Ledger, and close the 
 accounts showing losses and gains, preparatory to taking a partner June 1st. The results shown by 
 your Balance Sheet should be as follows: 
 
 SUMMARY, MAY 31, 188-. 
 
 Total Resources, 2467 56 
 
 ** Liabilities, 750 05 
 
 Present Worth, 1717 51 
 
 Total Gains, 218 26 
 
 " Losses, 50 75 
 
 Net Gain, 167 51 
 
 75c. : 5 reams 
 
 JUNE. 188-. 
 
 1. Admit F. E. Craigie as a partner, with a cash investment equal to your present worth. 
 
 2. Sell Baker Bro's, Ridgeway {P. L.) 5 Rob. Arithmetic, @ 90c.; 10 K. Grammar, 
 
 Foolscap, @ 2.25. 
 Deposit in City Bank, cash, 1500.00. 
 Pay your acceptance due to-day in cash. 
 
 3. Receive R. C. Sidway's check on Farmers' Bank, Lakeville, to balance his ^. 
 
 4. Sell W. & E. Palmer, Havana {P. L.), 25 M. White Envelopes, @ 1.75; 25 Civ. Government, @ 
 
 1.00; 20 gro. D. Pencils, @ 1.75. 
 Deposit Sidway's check rec'd 3d inst. in City Bank, less collection, 25c. 
 
 5. Receive cash of L. & G. Freeman in full of <^. 
 
 6. Pay D. W. Clark, Book-keeper, cash to apply on last month's salary, 25.00. 
 
 Note. — Debit Petty Accounts instead of Expense. See entr}' May 31. 
 
 7. Sell G. W. Getman, 20 M. Buff Envelopes, @ 1.60; 15 H. S. Dictionary, @ 2.25; 10 Com. Law, 
 
 @ 2. 75. 
 
 8. Receive from Fletcher & Co., New York, a bill of Mdse. bought on ^ per Inv. No. 4, 268.60. 
 
 9. Cash sales, i)cr Cash Drawer, 52.94. 
 
 10. The draft drawn on L. Ayrault, May 26, has been returned unpaid. Protest fees, 1.25. Give 
 
 City Bank your check to take up the draft, 51.25. 
 
 Note. — Charge the fees to Ayrault, it having been agreed that you should draw upon him at that time. 
 
 11. Receive cash of E. W. Hoag on <^c, 150.00. 
 
 Give Walker, Clinch & Co., your note at 10 days, payable at City Bank, to apply on ^, 200.00. 
 
 13. Sell R. C. Sidway, 500 gro. Crayon, @ lie; 50 reams Letter Paper, @ 2.10. 
 Deposit cash in City Bank, 250.00. 
 
 14. Receive cash of G. W. Getman on ^c, 25.00. 
 
 Sell R. W. Howard, Bluff Point {P. L.), 10 Com. Law, @ 2.75; 15 M. Buff Envelopes, @ 1.60; 
 12 K. Grammar, @ 75c. 
 
 15. Receive cash for a note due to-day. 
 Cash sales, per Cash Drawer, 21.50. 
 
 16. Sell G. W. Getman, 10 reams Letter Paper, @ 2.10; 200 gro. Crayon, @ lie. 
 
 Buy of Walker, Clinch & Co., Mdse. per Invoice No. 5, 689.32. Give them in payment, check on 
 City Bank, 289.32: your note at 60 days for balance, payable at City Bank. 
 
 17. Receive from Baker Bro's, a Postal Money Order, to apply on «/c, 10.00. 
 
 18. Buy at City Bank, by check, a draft on the Ninth National Bank of Boston, 226.25, at ^ ^ 
 
 exchange, and remit the draft to Barnes & Co., to balance ^. 
 
 19. Transfer G. W. Getman's account to the Main Ledger, it having proved to be a ]H'nnanent and 
 
 active account. 
 
 Note — 'Close the account in the P. L. Say, on the credit side. Bal. to M. L. Then make an entry in the Journal: 
 G. W. Getman, To Petty Accounts. 
 
 20. Receive of Atkinson & Boyd, their note at 45 days, to balance <^, 56.75. 
 Buy of Stein & Co., City {P. L.), one Show Case for Store, 35.00. 
 
 21. Receive from W. & E. Palmer, to ai)ply on ^jc, their sight draft for 50.00 on Farley & Ferguson. 
 
 which F. & F. pay by their check on Commercial Bank. 
 Sell Findley & Morris, Groveland {P. L.), 5 gro. Steel Pens, @ 1.45; 10 R. Arithmetic, (4 iH>c. 
 
 22. Student draws cash for private use, 50.00. 
 
 y 
 
T 
 
 ■mil 
 
 JE^ISifi 
 
 li*5yj5rt^ 
 
 !»i 
 
 I 
 
 ! 
 
 P 
 ^ 
 
 108 
 
 THEOKETIOAL AND PRACTICAL BOOK-KEEPING. 
 
 22. 
 23. 
 24. 
 
 25. 
 
 26. 
 27. 
 
 28. 
 29. 
 30. 
 
 Sell Atkinson & Boyd, 25 K. Com. Law, @ 2.75. 
 
 Receive cash of L. Ayrault to balance <^, 90.00. 
 
 Your note due to-day at City Bank has been charged to your account. 
 
 D. W. Clark draws balance of last mouth's salary in cash, 25.00. 
 
 Receive from Barnes & Co., a bill of Mdse bought on <^, per Invoice No. 6, 822.48. 
 
 Sell Alfred Carter, Newport {P. L.), 20 reams Letter Paper, @ 2.10; 25 M. White Envelopes, @ 
 
 1.75. Receive in })ayment, cash, 45.00. Balance on <^. 
 Receive cash of J. J. Sid way on «/c, 58.00. 
 
 Sell Frank Siddons, City {P. L.), 1 Com. Law, 3.00; 1 R. Arithmetic, 1.00. 
 Pay Fletcher & Co.'s sight draft on you by check on City Bank, 73.80. 
 Sell G. W. Getmau (J/. L.), 25 Civ. Government, @ 1.00; 10 Com. I^w, (^ P,.75. 
 F. E. Craigie draws for }>rivate use, by check on City Bank, 50.00. 
 Give D. W. Clark creilit for his mouth's salary, 50.00. 
 
 INVENTORIES, JUNE 30, 188-. 
 
 MERCH AN Dl SE — Per Inventory Book, 2452 38 
 
 EXPENSE— Furniture and Fixtures, 235 00 
 
 Close your Cash Book and ])()st the month's business. Remember that the footings only of the 
 Cash Book and of the Mdse. Sales column need be })osted. After you have comj)leted the })()sting, 
 prove the Petty Ledger, as instructed for last month. The accounts in the Petty Ledger need not be 
 closed. Make out a Balance Sheet and close the accounts in the Main I^Mlger. 
 
 Net (Jain for the month, 202 72 
 
 Balance of Petty Accounts 147 25 
 
 "Another method of kee})ing transient accounts is to open in the Main Ledger an account called 
 ''Miscellaneous Accounts," or some other appropriate title, under which all accounts not likely to be 
 permanent, active accounts may be placed, instead of keeping them in a Petty I^'dger, as illustrated 
 below. 
 
 MISCELLANEOUS ACCOUNTS. 
 
 188- 
 
 
 Mav 
 
 3 
 
 * 
 
 r- 
 
 
 < 
 
 
 21 
 
 
 24 
 
 
 27 
 
 
 30 
 
 G. W. Getman, 
 Marsh & Grant, 
 h. Avrault, 
 L. & G. Freeman, 
 L. Ayrault, Bal. 
 J. J. Sidway, 
 
 
 
 
 188- 
 
 
 
 8 
 
 40 
 
 May 
 
 5 
 
 
 24 
 
 75 
 
 it 
 
 17 
 
 
 88 
 
 75 
 
 (( 
 
 27 
 
 
 62 
 
 50 
 
 
 
 
 38 
 
 75 
 
 
 
 
 101 
 
 75 
 
 June 
 
 26 
 
 Cash, 5. 
 
 (^ash, 10; Mav 29, 14.75 
 
 Draft, 50; Bal 38.75 
 
 Cash, 
 
 24 
 
 88 
 
 58 
 
 75 
 
 75 
 
 ' You will observe by the above form that the s})ace occupied by each account is one line only. 
 '"When an account is settled, the credit is entered on the line directly opposite the debit, thus showing 
 the account balanced. " When an account is not ])aid in full at one j)ayment, the account mav be 
 closed and the balance unpaid transferred to a new line, or the })ayments may be short extended, as 
 shown above. It is sometimes desirable to keep "Misc. Accounts Receivable" and '* Misc. Accounts 
 Pavable." 
 
 Hand to the teacher, on a slij) of ])a])er, a i)roof of the balances brought down in closing the 
 Ledger; also present your books for inspection. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 103. — 'What does the Petty Ledger set illustrate? * Describe the method. ' What are the 
 advantages to be derived from its use? 
 
 Page 105. — * What advantage is derived in this set from using an additional column for Mdse. sales? 
 
 Page 106. — * ILnv is the Petty Ledger proved? • Explain the reason for it. 
 
 Page 107. — ^ What entry is made to transfer an account from the Petty [jcdger to the Main Ledger? 
 
 Page 108. — *What other form may bo used for keei)ing transient accounts to save s])ace in the 
 Main Ledger? ' By this form, how much 8})ace does each transient account octai|)y? '" Wiien an account 
 IS settled, where is the credit entry made? " If au account is not paid in full at one payment, how is 
 the entry made? 
 
 CASH METHOD. 
 
 ' The methof" illustrated in the following set combines the Day Book, Journal and Cash Book in 
 one book, called the Cash Journal, or simply Journal, in which book all entries are to be made, whether 
 cash forms any part of the transaction or not. 
 
 ' This form of book-keeping is best adapted to a business in which the transactions are mainly for 
 cash. 
 
 •The principal advantages of the method are, that it employs a less number of books, and saves 
 
 time and labor in posting cash. 
 
 RULES FOR CASH METHOD. 
 
 Decide Avhat the journal entry would be for the transaction in the ordinary form, then: 
 
 First.—* If Cash be the only debit, enter all of the credit items on the left side, which debits 
 Cash. 
 
 Second.—'' If Cash be the only credit, enter all of the debit items on the right side, which credits 
 Cash. 
 
 Third. — ^ If the entry consists of several debits and credits, one of which is Cash, leaving out the 
 Cash, enter all the debits on the right side, which credits Cash, and enter all the credits on the left 
 side, which debits Cash. The difference will show the cash received or paid out. 
 
 Fourth. — ' If no Cash is involved in the transaction, enter the credits on the left side and the 
 debits on the right side. The footings of the two sides will thus be increased ecpially, and the balance 
 of cash will remain unchanged. 
 
 The books to be used in this set are the Cash Journal and Ledger. 
 
 109 
 
ti\w1iTfiii 
 
 lihMiiii 
 
 • 6. 
 
 11 
 
 I 
 
 ' J 
 
 ! ' f 
 
 I ^ I 
 
 Hi' 
 
 1 i 
 
 I 1 
 
 • : « 
 
 110 
 
 THEORETICAL AND PKACTICAL BOOKKEEPIJSO. 
 
 'it/^ 
 
 'tr?7iri^a^ 
 
 7 
 
 \^iZ.jJl^^ 
 
 O 
 
 
 
 
 Jo 00 
 ^0 00 
 J 000 
 
 — ^ 
 
 ^± 
 
 -fd'OOf 
 
 .rrfoo^Xi 
 
 y.U<c^J^^a^^ 
 
 
 -^^trt^^-t:^-e^y^ . 
 
 /J 
 
 '{^2^(^'U^l^^L\ 
 
 Ol.Ck'e- 
 
 Cv/ /A^ycytryi/ (Z^cnrc/ct^iZf^ 
 
 "MiJJr..&^y?J-(BiU-A(^Qj^^ 
 
 
 y^fr?^' 
 
 
 
 (o 
 
 cTb o 
 
 cf 
 
 < 
 
 jlC/0/ 
 
 /ff 
 
 
 LO. 
 
 7^^r^/< 
 
 <Z/^ 
 
 ^a^^t>ciy^'Z^^i^ 
 
 JoJ-J-J 
 
 ^^cT 
 
 THEORETICAL AND PRACTICAL BOOK- KEEPING. 
 
 Ill 
 
 
 
 -^L-d^ 
 
 *yy<rz.eAy^€J:i^ 
 
 
 /Sooo 
 
 / & O Ot? 
 
 ^.jTO O 
 
 jirjojL\j'o 
 
 ^67^7 
 
 / o 
 
 {fJoo^\A /y 
 
 c^^ 
 
 ^/^y 
 
 y J^tr/ cfo ^yJi^zJ-^Jyay^ 
 
 C. ^^^r^tr^^^ 
 
 /^ 
 
 -zr^ 
 
 ' ya^e^^-eyt^-^^y^-, 
 
 /iryi'.^t^<^- 
 
 
 J^tyy/^ .^^y^^Cy^a^^^ 
 
 ^^^.^d-gz^^-^.d' /7.^c<yy7y^^ 
 
 Z^^.^€~^^ 
 
 cyc< 
 
 cyj-^ 
 
 ySf^^^Jxyg 
 
 /ff 
 

 I 
 
 ; 
 
 
 ! > 
 
 Mi 
 
 N 
 
 112 
 
 TUEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 MONDAY, JULY 5, 188-. 
 
 Student and E. A. Wooden form a copartnerslii]) to en<?aj]fe in business as private Bankers and 
 Brokers, in accordance with coi)artnershi}) articles executed this day. The gains and losses are to bo 
 shared in ])ro{)ortion to tlie investment. 
 
 Student invests cash, 20,000. 
 
 Make the entrj' on the Uft side of the Journal, which credits Student and debits Cash. See fomi on page 110. 
 
 E. A. Wooden invests cash, 30,000. (Same as prcrious entry.) 
 
 Remit by express, to Bank of Commerce, New York, for your credit, cash, 15,000. 
 
 Make the entry on the right side of the Journal, which debits Bank of Commerce and credits Cash. 
 
 Receive cash of H. E. Sankey on deposit, 2000. 
 
 Make tlie entry on the left side, which credits Sankey and <lebits Cash. 
 
 Remit by express, iv) Merchants' Bank, Boston, for your credit, cash, 10,000. 
 
 Entry on right side of Journal. 
 
 Pay H. E. Sankey's check on you in cash, 500. 
 Entry on right side, which debits Sankc^y and Credits Cash. 
 
 Receive cash of J. W. Gardner on deposit, 3000.00. 
 
 Discount for C. G. Teall a note nuide by R. N. Smith, 2500.00. Discount, O.HO. Pay him the 
 proceeds in cash, 2400.40. 
 
 Enter Bills Receivid)le. 25(K), on the right side of the Journal, which debits Bills Receival)le and credits Cash 2500. 
 Then enter Discount. J).HO. on the Uft side, which credits Discount and debits ("jish U.GO. Cash haviti«f t)ccn thus credited 
 2500 antl debited 9.60, the lut credit to Cash is 2490.40, as shown by the dillerence, the actual amount of cash paid out. 
 
 Pay J. AV\ Gardner's check on you in cash, ;500.00. 
 
 Pay express charges on remittances to New York ami Boston in cash, 2.50. 
 
 The Journal is now to be balanced for the day, as shown on pages 110-111. * It will be apparent 
 that the footings of the Jouriuil cannot exhibit the actiuil amount of cash received and disbursed, since 
 in many of the entries a part only is cash, and in others no cash whatever is involved. 
 
 » The footing of the left side of the Journal represents the total credits of the business, except the 
 credit of cash; '"the footing of the right side the total debits of the business, except the debit of cash; 
 "the difference between these footings must therefore exhibit the excess of cash received or paid out 
 during the dav. " The balance for the i>revious dav being added to the footing of the left side of the 
 Journal, the difference between the sides will then show the cash on hand. 
 
 After balancing the Journal, post the day's business. Give each account one-fourth of a page 
 space. " In i)osting, credit all of the items upcm the left side, and debit cash with the total of these 
 items. The debit and credit sides of the Ledger are thus kept equal. Debit all of the items ujjon 
 the right side, and credit Cash with the total of these items. Here again equal debits and credits are 
 
 })Osted to the Ledger. 
 
 You may omit the ex])lanations from the Ledger in posting this set. The work of Monday and 
 
 Tuesday is posted in full below. 
 
 STUDENT. 
 
 188- 
 July 5 
 
 E. A. WOODEN. 
 
 110 
 
 20000 
 
 188- 
 Julv 
 
 111 
 
 500 
 
 188- 
 Julv 
 
 no 
 
 30000 
 
 H. E. SANKEY. 
 
 188- 
 July 
 
 111 
 111 
 
 500 
 350 
 
 45 
 
 188- 
 Julv 
 
 110 
 
 no 
 
 2000 
 994 
 
 25 
 
 188- 
 July 
 
 188- 
 July 
 
 188- 
 July 
 
 188- 
 July 
 
 188- 
 July 
 
 THEOKETICAL AND PRACTICAL BOOK-KEEPING. 
 
 J. W. GARDNER. 
 
 113 
 
 HI 
 
 300 
 
 
 188- 
 July 
 
 5 
 6 
 
 DISCOUNT. 
 
 CASH. 
 
 BANK OF COMMERCE. 
 
 Ill 
 
 15000 
 
 188- 
 July 
 
 MERCHANTS' BANK. 
 
 I 
 
 mil 10000 
 
 188- 
 July 
 
 6 
 
 BILLS RECEIVABLE. 
 
 EXPENSE. 
 
 Ill 
 
 2 
 
 50 
 
 
 
 EXCHANGE. 
 
 
 
 
 188- 
 July 
 
 (J 
 
 BILLS PAYABLE. 
 
 
 
 
 188- 
 July 
 
 G 
 
 110 
 
 no 
 
 i 
 
 I 
 
 30(K) 
 000 
 
 
 
 
 
 
 188- 
 
 
 
 
 j 
 
 
 
 
 
 
 
 Julv 
 
 5 
 
 
 110 
 
 60 
 
 
 
 
 
 
 
 
 G 
 
 
 no 
 
 5 75 
 
 188- 
 
 
 
 
 1 
 
 
 188- 
 
 
 
 1 
 
 1 
 
 July 
 
 5 
 
 
 no 
 
 55000 
 
 GO 
 
 July 
 
 5 
 
 
 111 
 
 28302 
 
 50 
 
 
 6 
 
 
 no 
 
 12955 
 
 
 
 6 
 
 
 111 
 
 910G 
 
 45 
 
 no 
 
 2000 
 
 no 
 
 6250 
 
 188- 
 
 
 
 
 
 
 
 
 
 
 
 July 
 
 5 
 6 
 
 
 111 
 111 
 
 2500 
 2000 
 
 
 1 
 
 
 
 
 i 
 
 
 no 
 
 no 
 
 500 
 
 N. Y. C. & H. R. R. R. STOCK. 
 
 Ill 
 
 G250 
 
 188- 
 July 
 
 6 
 
 no 
 
 2600 
 
! ■ 
 
 \ \ 
 
 Iff 
 
 i 
 
 « ~ 
 
 ^^^ 
 
 m 
 
 i ! 
 
 n 
 
 ! ■ •: 
 
 114 
 
 THKOIiEriCAL AND PIlAtmCAL BOOK KKEPlNGk 
 
 TUESDAY. JULY 6. 188-. 
 
 Pay II. K. Saiikoy's clu'ck in c'ii«l\, IJr)().4r). 
 
 Soil M. F. Ki'ViioKls vour si-dit draft on Uank of Ooiiiinoree, 2000, at i j^ exchange, 5.00. Receive 
 
 cash, 2005.00. 
 
 Cifdit Bank of C'onuiurrc uiul Exthunjri' on the left side of \\\v Journal, \vhi<li debits Ciinh. 
 
 liny of Cook & Co., 50 shares N. Y. C. & II. 11. K. 11. Stock, (<l. 125.00 jicr share. Pay for same 
 by check on Alerchants' Bank. 
 
 Dt'bit N. Y. C. & II. R. R. R. Stork on the rijzlit side of the .Tonrnal, which credits Casli. Credit Merehunts' Bank 
 oa the left 8i«h'. which debits Cash. The uinount of ({250 having thus been entered on each side of the Journal, the 
 balance of Cash nnuiins unehjuiged by this entry. 
 
 Kccoive cash of J. W. (Jardncr on deposit, 000.00. 
 
 Discount, for II. K. Sankey, Bcnj. W. Craig's acce})tanco, 2000.00. Discount off, 5.75. Pay liiin 
 cash, 1000.00, and i)hico the bahmce to his credit. {See Rule Third, on paije 109.) 
 
 Accept II. Sibley's draft on E. A. Wooden, for ])rivatc «/f, 500.00. {Sec liule Fourth, page 109.) 
 Sell 20 shares N. Y. C. cS: II. R. R. R. Stock, @ 130.00 per share, and receive cash. 
 
 Y\ni may now balance tlie Journal and i)ost the day's work, as instructed for yesterday. "You 
 will observe that the cash on hand for Monday is carried to the second column of the Joiirnal in 
 bringing the balance down on Tuesday, "so as to avoid including it in the footing of the items of 
 Tuesday's business; otherwise Cash account would be again debited for the net receipts of the previous 
 day. 
 
 WEDNESDAY. JULY 7. 188-. 
 
 Remit cash to Bank of Commerce, New York, by express, 10,000. {lUde Second, page 109.) 
 
 Receive ctish of II. E. Sankey, on dei)osit, 3T5.00. {Rule First, page 109.) 
 
 Pav J. W. Gardner's check in cash, :(;.25. {Rule Second, page 109.) 
 
 Sell 10 shares N. Y. C. & II. R. R. R. Stock for cash, (a) i:5<>.00. {Rule Fir.xf, page 109.) 
 
 Discount, for Rob't C. Foy, Wells Bro's note, 800.00. Discount off, 3.27. Pay proceeds in cash, 
 790.73. {Rule Third, page 109.) 
 
 Buy for cash, 25 shares Park Bank Stock, @ 145.00. {Rule Second, page 109.) 
 
 Receive cash of II. C. Gritliths, on deposit, 1500.00. 
 
 Sell Geo. Archer your sight draft on Bank of Commerce, 1000.00. Exchange i i, 2.50. Receive 
 c*«h, 1002.50. {Rule First, page 109.) 
 
 Discount, for J. W. Gardner, Caring & Reed's note, 000.00. Discount off, 1.51. Proceeds placed 
 
 to his credit, 598.49. (Rule Fourth, page 109.) 
 
 Pay Express charges on remittance to Bank of Commerce in cash, 1.75. 
 
 You may now balance your Journal. There should be eight entries on the left side and six on the 
 right side. The balance of cash on hand should l)e 20,293.42. Post the day's business, and then take 
 a Trial Balance. If correct, it should corresi)ond with the following: 
 
 TRIAL BALANCE, JULY 7, 188-. 
 
 Student, . - - - 
 E. A. Wooden, . - - 
 
 H. E. Sankey, - 
 J. W. Gardiu'r, - - - 
 Discount, - - - - 
 
 Cash, 
 
 Bank of Commerce, - 
 .Merchants' Bank, . - - 
 Bills Receivable, - - - 
 Expense, . - - - - 
 Exchange, - - - - 
 Bills Pavable, - - - - 
 N. Y. C^ & H. R. R. R. Stock, 
 H. C. Grithths, 
 Park Bank Stock, 
 
 500 
 
 
 850 
 
 45 
 
 376 
 
 25 
 
 72805 
 
 37 
 
 25000 
 
 
 10000 
 
 
 5900 
 
 
 4 
 
 25 
 
 6250 
 
 
 3625 
 
 32 
 
 125317 
 
 20000 
 
 30000 
 
 3369 
 
 4198 
 
 20 
 
 52511 
 
 3000 
 
 6250 
 
 7 
 
 500 
 
 3960 
 
 1500 
 
 125317 32 
 
 25 
 49 
 13 
 95 
 
 50 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 115 
 
 THURSDAY, JULY 8. 188-. 
 
 Sell 10 shares Park Bank Stock for cash, (?^ 150.00. 
 
 Pay II. C. (JrilTlths' draft on you, 500.00, less discount, 2.25, l»y check on Merchants' Bank, 4M7.75. 
 {Rule Fourth, page 109.) 
 
 Receive casji on deposit of E. J. Howard & Co., 1275.00. 
 
 Buy of Reed k Hill, 00 shares X. Y'. C. & II. R. R. \l. Stock, (tt) 124^. Pay f ; r same by check on 
 Merchants' Bank, 3000.00. Balance in cash. {Rule Third, jiage 109.) 
 
 Student appropriates cash for jtrivate use, 500.00. 
 
 Sell J. W. Gardner your sight draft on Bank of Commerce, New Y'ork, 3500.00, at ^'jl, exchange. 
 Receive his check on you in })ayment. {Rule Fourth, page 109.) 
 
 Pay sundry items of Telegraphing in cash, 1.45. 
 
 Receive cash on deposit of H. E. Sankey, 2350.00. 
 
 Pay your acceptance of 6th inst. in cash, 500.00. 
 
 Draw a sight draft on Bank of Commerce, 7500.00, and remit it to Merchants' Bank for your 
 cred i t . {Ru le Fo u rth , page 109. ) 
 
 Pay Howard & Co.'s check in cash, 100.00. 
 
 Discount for J. AV. CJardner his accommodation note, endorsed by Tx'C & Parker, payable at Bank 
 of Commerce, New York, 1500.00. Discount off, 15.75. Proceeds to his credit. 
 
 Sell 20 shares N. Y"". C. & H. R. R. R. Stock to Morgan & Reeves, @ 120|^. Receive in payment, 
 their check on Eourth National Bank, New Y'ork, and remit same to Bank of Commerce, f; r your 
 credit. 
 
 Balance your Journal, and post the day's business. There should be twelve entries on the left 
 side, and ten on the right side. The cash on hand should be 19801.97. 
 
 FRIDAY, JULY 9, 188-. 
 
 Receive cash of R. N. Smith, for his note, 2500.00. 
 
 Accei)t E. J. Howard & Co.'s draft, in favor of II. C. Grifftths, to apply on «(•, 850.00. 
 
 Sell II. C. Griffiths, your siglit draft on Bank of Commerce, 1500.00, at i ^ exchange. Receive in 
 j>ayment, cash, 800.00; his check on you for the balance. 
 
 Receive cash of J. AV. Gardner, on dejjosit, 205.50. 
 
 Sell AVm. Smith, 15 shares Park Bank Stock, @ 150.00. Receive cash, 550.00, and his note f«»r 
 the balance. 
 
 Pay II. E. Sankey's check in cash, 870.44. 
 
 Receive on deposit, of 0. B. AA\'lch, cash, 500.00, and issue him a Certificate of Deposit. {Credit 
 Certificate of Dejmsit instead of 0. B. Welch.) 
 
 Have J. AY. Gardner's note for 1500.00, rec'd yesterday, re-discounted at Bank of Commerce. 
 Discount off, 10.25. Proceeds to your credit. 
 
 Receive cash of H. C. Griffiths, on deposit, 200.00. 
 
 Protest Caring & Reed's note, 000.00, rec'd 7th inst., for non-payment. Pay the Notary Public's 
 fees in cash, 1.35. {Debit Protested Paper, 601.35. and credit Bills Receivable, 600.00.) 
 
 Sell H. E. Sankey 40 shares N. Y. C. & II. R. R. R. Stock, @ 128. Receive his check on you, 
 3120.00, and his check on Chemical National Bank, New Y'ork, for the balance. 
 
 Receive cash of E. J. Howard «& Co., on deposit, 2500.00. 
 
 Receive cash of AVells Bro's, for their note, 800.00, and interest on same, 4.25. 
 
 Balance your Journal and post the day's business. Cash on hand, 29103.93. 
 
 SATURDAY, JULY 10, 188-. 
 
 Receive cash on deposit of E. J. Howard & Co., 275.00. 
 
 Discount, for L. D. Briggs, Alonzo Stebbins' note, 890.00. Discount off, 17.80. Give him draft 
 on Bank of Commerce for 500.00, at \'^ exchange, and pay him the balance of the proceeds in cash. 
 
 Pay II. E. Sankey's check in cash, 317.28. 
 
 Buy 100 shares AVestern Union Telegraph Stock, @ 98f. Give in payment, Wm. Smith's note, 
 rec'd yesterday, 1700.00, less discount, 12.75; your check on Merchants' Bank, 0000.00, and ca^h for 
 the balance. 
 
 J. W. Gardner, for whom you discounted Caring & Reed's note, protested yesterday, takes up the 
 
 note by his check on you, 001.35. 
 
■W- . "^iimSViM: 
 
 I f 
 
 i ' i 
 
 III ) 
 
 
 
 116 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 Receive cash of II. E. Saiikey, on deposit, 3000.00. Issue liim a Certificute of Dcjxtsit for 1000.00, 
 and i)hiee the balance to liis credit. 
 
 Sell II. C (Jriitiths, 50 sliarcs W. U. Telegraph Stock, @ 101;^. Receive i>i j»ayment, youi 
 acceptance of yesterday in his favor, 850.00, less discount, 11.83; a sight draft on Inii)orters and 
 Traders' Bank, New York, 1(548.84; his check on you, 400.25; and currency for the balance. 
 
 Receive cash of J. W. (Jardner, on deposit, 1750.00. 
 
 Remit to Bank of Commerce, for yt)ur credit, the check on Chemical National Bank rec'd yester- 
 day, 2000.00, and the draft on Importers and Traders' Bank rec'd to-day, 1048.84. 
 
 Sell for cash, 25 shares W. U. Telegraph Stock, @ 100^. 
 
 Benj. W. Craig ])ays liis acceptance rec'd 0th inst., 2(H)0.00, and interest on same, COO, as follows: 
 His check on Monroe Savings Bank, 1000.00; your Certificate of Deposit issued yesterday to O. B. 
 Welch, 500.00; and currency for the balance. 
 
 Balance your Jouriud. Cash on hand, 34350.09. After i)osting the day's business, make a lialance 
 Sheet and close the Ledger. 
 
 INVENTORIES, JULY 10, 188-. 
 
 20 shares N. Y. C. & II. R. R. R. Stock, @ 124^ 
 
 25 '* W. U. Telegraph *' @ 08| 
 
 Net Gain of Firm, 754.31. Present Worth of Firm, 49,754.31. 
 
 Note. — Rememl)er, in making!; the Sumimuy and in closinjj^ tlio Loss and Gain account, that tlie Net Gain is to Ik? 
 shared by tlic proprietors in proportion to their investments. Hand to the t«':icher u jiroof of tlie baluuceb brouglit down 
 in closing the Ledger. Also present your books for inspection, and be prepared uj)on the following: 
 
 QUESTIONS FOR REVIEW. 
 
 Page 109. — * Define the Cash Method. ' To what kind of business is it best adapted? ' What are 
 its principal advantages? * For transactions in which Cash is the only debit, how is the entry to be 
 made in the Cash Journal? * How if Cash is the only credit? * How if there are several debits and 
 credits, one of which is Cash? ' How if no Cash enters into the transaction? 
 
 Page 112. — * Why do not the footings of the Journal show the cash received and disbursed? 'What 
 does the fooling of the left side represent? '"The right side? "What will the ditference between 
 these footings represent? " How is the balance of cash on hand found? "Exidain the manner of 
 posting and how the Ledger is kept in balance. 
 
 Page 114. — 'Mil bringing down the balance of the previous day, to which column is it carried? 
 "Why? 
 
 The month of A])ril, commencing on page 45, is now to be worked by the Cash Method. 
 
 An entry for Student's resources and liabilities, as shown by Balance Sheet, page 34, is here 
 necessary. A few entries are given below, and you are to continue the work as there illustrated, using 
 o^pjxhsife pages in your Journal, and entering the items in the first column, as in the previous set. 
 
 Balance the Journal twice only during the month, viz: on the 13th and 24th. 
 
 At the end of the month post, make a Balance Sheet and close the Ledger. Your results should 
 agree with those given on pages 48 and 49. After completing this work, present your books, with a 
 proof of the balances, to the teacher. 
 
 APRIL, 188-. 
 
 APRIL. 188-. 
 
 
 
 CASH. TO 81INDH1E8. 
 
 
 
 April 
 
 1 
 
 H. W. Stevens, On account. 
 
 435 
 
 
 
 
 Wells, J. & Co. '' 
 
 708 
 
 75 
 
 
 
 Bills Pavable, Outstanding, 
 
 300 
 
 
 
 
 I). Bailev, On account. 
 
 100 
 
 
 
 
 W. A. Bancroft, " 
 
 38 
 
 
 
 
 Student, Net Investment, 
 
 5170 
 
 34 
 
 
 
 D.W.Leonard, " 
 
 5170 
 
 34 
 
 
 
 1 ). Bailey, Mdse. on acc't. 
 
 1112 
 
 50 
 
 
 2 
 
 Ford & Co. Rec'd note on <^, 
 
 100 
 
 
 A])ril 
 
 SUNDRIES. TO CASH. 
 
 Mdse. Inventory, 
 
 Ford & Co. On account. 
 Expense, Inventory, 
 
 Jas. T. Iloag, On a(;count, 
 Bills Rec'v, On hand, 
 Sickles, S. & J. On account, 
 Clark, Sons &B. " " 
 College Bank, On de])osit, 
 
 Mdse. 
 Bills Rec'v, 
 
 10000 lbs. Sugar, 
 
 llic. 
 Ford & Co. 's note 
 
 on account 
 
 1420 
 200 
 300 
 98 
 130 
 17(» 
 192 
 
 3958 
 
 1112 
 10(1 
 
 50 
 
 75 
 30 
 
 19 
 
 93 
 
 50 
 
 ^ 
 
 SHIPPING AND COMMISSION. 
 
 ' This set is designed to illustrate a general business in shipping property to and receiving jtroixTtv 
 from other parties, to be sold on commission. The same principles are involved as explained and illus- 
 trated on pages 55-57. 
 
 ' In addition to the Journal, a Commission Sales Book and Cash Book are to be kept as ' jtrinciiml 
 books. * Those entries only which pertain to consignments are to be made in the Sales Book. * Entries 
 involving cash are to be made in the Cash Book. « All other entries are to be made in the Journal. 
 
 The simpler forms only of Commission Sales Book and Cash Book are illustrated in this set. 
 
 Special columns may sometimes be i)rofitably introduced in these books, and when found advan- 
 tageous, they can easily be added to meet the requirements of any particular branch of the Commission 
 business. 
 
 117 
 
1 
 
 V 
 
 Is ■ i 
 
 If ', f 
 
 I : ♦: 
 
 ♦i 
 
 Mi' ■■' 
 
 118 
 
 THKOKiCnCAL AiND PUACTIUAL UOOK-KEEPING. 
 
 e^:^;^ 
 
 Jy ym<^:^ 1^1^91^/ ^^/t^^//. 
 
 /^f 
 
 
 
 J'^^fL 
 
 J. 
 
 
 
 -2 
 
 / 
 
 »' 
 
 
 ^ 
 
 L^t^ 
 
 
 ^ 
 
 ^^ 
 
 
 n 
 
 -2^ 
 
 
 
 
 
 iyl^t^^^^-C^U 
 
 6A 
 / 
 
 r^ tJ^/y 
 
 17;l 
 
 -7^ 
 
 
 //O 
 
 j!^/?^d<u^P J JJ^^d/'.^^ (^r^i/d^. 
 
 / ' 
 
 ^ 
 
 /■2 
 
 // 
 
 ^c/ 
 
 ^ 
 
 v^ 
 
 /) 
 
 l: 
 
 
 J~0'0 
 
 / J2- 
 
 /C 7 
 
 
 /6 
 
 AjtA.^^ 
 
 J.J 
 
 (L2^ 
 
 U^'y 
 
 ^<?-r^^y?^ 
 
 v^ 
 
 // 
 
 
 U06 
 
 ^ 
 
 
 J 
 
 6 J 
 
 / 
 
 7c/ 
 
 =^ 
 
 ci'ff 
 
 j-r 
 
 J2 / yoyj^ 
 
 fr//rr 
 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPINO. 
 
 <^ 
 
 ^/^ 
 
 
 ^cT/ 
 
 /// 
 
 ^^7^../^^^^^^^^^ 
 
 -^^ 
 
 f 
 
 /-f 
 
 ^ 
 
 /^ 
 
 
 ?./- 
 
 ^0£> 
 
 
 /J- 7 A 
 
 /^ 
 
 /cT 
 
 ^^ 
 
 -^^ 
 
 ^^^^^^^^^^^..^^yiyr 
 
 
 Q-, 
 
 / 
 
 yyi:n.t^ 7 y-y^ 
 
 ^ JJn^^- 
 
 J^/^n^tyiy 
 
 T^i-f'^zy 
 
 j.r 
 
 LZ^ 
 
 ji^^ 
 
 
 
 
 'irv 
 
 Jo 
 
 no 
 
 / ^c 
 
 c>.i- 
 
 ^ r^ 
 
 ^.^^ 
 
 -2/ 
 
 ^ 
 
 ^// 
 
 ^/^ 
 
 ^T'5' 
 
 /^ 
 
 ^X 
 
 /7J' 
 
 roo 
 
 6 {? o 
 
 \ 
 
 
■IMIWWM 
 
 
 120 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING. 
 
 CASH BOOK. 
 
 SEPTEMBER, 188-. 
 
 Sept. 
 
 Sept. 
 
 1 
 
 ! 23 
 
 8 
 
 3 
 
 !> 
 
 24 
 
 "»% 
 
 ] 
 i 
 
 11 
 
 
 CASH TO SVNnRIES. 
 
 Student, Investment, 
 
 M<lse. 50 bbls. Ai)j>le8, 
 
 M. B. Steele, On account, 
 
 Foster Bro's C.Vnisignment, 200 hu. \l. Wheat. 
 
 2.25 
 
 lialjince. 
 
 3500 
 
 
 
 
 112 
 
 50 
 
 
 
 80 
 
 
 
 
 274 
 
 50 
 
 3007 
 
 
 
 
 39(>7 
 
 
 
 3G28 
 
 25 
 
 JOURNAL 
 
 SEPTEMBER 3, 188- 
 
 23 
 
 24 
 23 
 
 24 
 
 23 
 
 Mdse. 
 
 To Bills Payable, 
 Welch Bro's, 
 
 Sbip't to L. Coleman, 
 
 Bav View. 
 To Mdse. 
 Cash, 
 
 Bo't of Welch Bro's, 
 
 500 bbls. A])ples, 2. 
 
 (Jave them note at 10 days, 
 Balance on account, 
 
 5. 
 
 Ship])ed him, to be sohl on my 
 
 account, 
 •^50 bbls. A|)])le8, 2. 
 
 Cartage on same. 
 
 1000 
 
 505 
 
 LEDGER. 
 
 STUDENT. 
 
 188- 
 Se})t. 
 
 Casli, 
 
 GOO 
 400 
 
 500 
 5 
 
 3500 
 
 THEOKETICAL AND PRACTICAL BOOK-KEEPING. 
 
 CASH BOOK. 
 
 SEPTEMBER. 188- 
 
 188- 
 Sei)t. 
 
 2 
 
 v/ 
 
 3 
 
 23 
 
 5 
 
 v/ 
 
 G 
 
 V 
 
 10 
 
 29 
 
 SUNDRIKS TO CASH. 
 
 Hamlin's Consignment, Freiglit. 
 
 Expense, Office Books, 
 
 Slii])'t to L. Coleman, Cartage, 
 
 Foster Bro's Consignment, Freight, 
 
 Welcli Bro's, On account. 
 
 Balance, 
 
 188- 
 Sept. 
 
 10 
 
 Cash, 
 
 On hand. 
 
 Go 
 
 18 
 
 5 
 
 50 
 
 2(m 
 
 75 
 
 LEDGER. 
 
 WELCH BROS. 
 
 200 
 
 188- 
 ; Sept. 
 
 3 Mdse. 
 
 STORAGE. 
 
 
 
 
 188- 
 Sept. 
 
 G 
 
 Hamlin's Con. 
 
 COMMISSION. 
 
 188- 
 Sept. G 
 
 WM. D. HAMLIN. 
 
 llumlin's Con. 
 
 
 
 188- 
 Sept. 
 
 G 
 
 Hamlin's Con. 
 
 121 
 
 338 
 3G28 
 
 39C7 
 
 75 
 25 
 
 40<J 
 
 10 
 
 9 
 
 24 
 
 4 < «(> 
 
 MERCHANDISE. 
 
 188- 
 
 
 
 
 
 
 188- 
 
 
 
 
 
 Sei)t. 
 
 3 
 
 Sundries, 
 
 
 1000 
 
 
 Sei)t. 
 
 8 Cash, 
 
 
 112 
 
 50 
 
 
 
 * 
 
 
 
 
 
 5 
 
 Ship't to L. C. 
 
 
 500 
 
 CIS 
 
 so 
 
 188- 
 Sei>t. 
 
 G 
 
 Hamlin's Con. 
 
 HOYT & EATON. 
 
 282 
 
 188- 
 Sept. 
 
 3 
 10 
 
 Hamlin's Con. 
 
 188- 
 Sept. 
 
 Cash, 
 
 M. B. STEELE. 
 
 
 180 
 
 775 
 
 
 188- 
 Sept. 
 
 y 
 
 Cash, 
 
 EXPENSE. 
 
 18 
 
 75 
 
 80 
 
 BILLS PAYABLE. 
 
 188- 
 Sept. 
 
 3 
 
 Mdse. 
 
 SHIPMENT TO L. COLEMAN, Bay View. 
 
 188- 
 Sept. 
 
 o 
 
 Sundries, 
 
 505 
 
 iUH) 
 
il ! 
 
 122 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 Y\ 
 
 Mr':' 
 
 li i 
 
 m 
 
 SEPTEMBER. 188-. 
 
 1. Commence a general Shi])])in«i^ and Commission Business, investing cash, 3500.00. (^. B.) 
 
 2. Receive from Wm. I). Hamlin, Laporte, to sell on his account, 1000 bu. White Uats. Pay Freight 
 
 on same in cash, (55.00. 
 
 Note. — Enter in Sales Book and Casli Book, and check the entries. See form of Sales Book on paj3:es 118-119, form 
 of Cash BfKjk on pages 12l)-131. Give each Consijinment one-third of a paj^e sjMice in the Sahs Book. Cash is 
 checked in the Sales Book and omitted in posting;. iM'cause the entry in the Cash B<M)k credits Cjish; and 
 Hamlin's Consi<;nment is checked in the (^ish Book and oniitted in posting, lurause the entry in the Sales Book 
 debits Hamlin's C'onsignment ; otherwise these amounts would be posted twice, 
 
 3. Sell M. B. Steele, on "/c, from Hamlin's Consignment, 400 bu. W. Oats, @ 45c. {S. B.) 
 
 Note. — Makini; this entry on the riirht hand side of the Sales Book credits Ilamlin*s Consignment and debits M. B. 
 Steele, same as in the Cash Method. 
 
 Buy of Welch Bro's, 500 bbls. Aj)ples, @ 2.00. Give them in payment, your note at 10 days, 
 
 000.00. Balance on <yc. {J.) 
 Pay cash tor set of Office Books, 18.75. {C. B.) 
 
 5. Sliip Ij. C'olenum, Bay View, to be sold on your account, 250 bbls. Aj)ples, @ 2.00. Pay Cartage 
 
 on same in cash, 5.00. {J. and C. B.) 
 
 Note. — Check Cash in the Journal and Ship't tt) L. Coleman Ir. the Ca.sh Book. For explanation see note uader 
 Sept. 2d, above. 
 
 6. Receive from Foster Bro's, Carthage, to sell on their account, 500 bu. Red Wheat. Pay Freight 
 
 on same in cash, 50.00. {S. Ji. and C. B., and check the entries.) 
 Sell Hoyt cSl Eatcm, on ojc, from Hamlin's Consignmetit, 000 bu. W. Oats, % 47c. {S. B.) 
 Close Wm. T). Hamlin's Consignment, and render an account of same. Storage, Ic. jkt bu., 10.00; 
 
 Commissi(m, 2% on sales, 9.24. Wm. I). Handin's net uroceeds to his credit. 377.7^ ('?. B. 
 
 See form of Acconnt Sales, page 80.) 
 
 ^ote. — Rule a sheet of foolscap paper, and write up the form of tins Account of Sales. See illustration on page 
 80. liule up the Consignments in the Sales Book as soon Jis they are closed. 
 
 8. Sell for cash, 50 bbls. Apples, @ 2.25. {C. B.) 
 
 Receive from Harding & Lee, Salem, to sell on their account, 400 bbls. Flour. {S. B.) 
 
 9. Receive casii of M. B. Steele, on «f, 80.00. {C. B.) 
 
 Sell Geo. Gould, for cash, from Foster Bro's Consignment, 200 bu. H. Wheat, @ 1.37^. {S. li. 
 and C B.) 
 10. Pay Welch Bro's, cash on % 200.00. {C. B.) 
 
 Sell M. B. Steele, on "fc, at 10 days, from Harding & Lee's Consignment, 100 bbls. Flour, @ 7.75. 
 {S. B.) 
 
 You may now balance your Cash Book, after which post the foregoing entries. Post from the 
 Journal as heretofore. "Post fnmi the Cash B(K)k ami Sales Book as instructed for the Cash Method; 
 that is, all items on the left side are to be credited, and all on the right side debited. \'ou need not in 
 this set, however, open in the Ijcdger a Cash account nor accounts with Consignments. " When 
 taking a Trial Balance, carry to it the balance of cash on hand, as shown by the Cash Book, aiui the 
 balances of all unclosed Ccmsignments, as shown by the Sales Book. All items that are checked are 
 not to be posted. In posting the items not checked, use the Ledger folio as a check mark. G:ve each 
 account one-fourth of a page s})ace. 
 
 Commeiu^e with the Cash Book, and complete the ])osting from that book; then follow with the 
 Sales Book in same manner, and then with the Journal. The datc^s will not come in regular order in 
 the Ledger by this method of posting, but this is not material. After you have finished posting from 
 all of the books, your Ledger accounts should agree with those given on i)ages 120-121. 
 
 Take a Trial Balance, and it should agree with the one given (m next page. The debits and 
 credits in Foster Jiro's C(msignment and Harding & Lee's C(msignment being une(|ual, as shown by 
 your Sales Book, it becomes necessary to enter them in the Trial Balance; also enter in the Trial 
 Balance the balance of cash on hand, as shown bv the Caxh Book. 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 TRIAL BALANCE, SEPTEMBER 10, 188-. 
 
 ■ — 
 
 Student, . - - - 
 
 Mdse. . - - 
 
 M. B. Steele, - 
 
 Expense, _ - - 
 
 Welch Bro's, 
 
 Storage, . - - 
 
 Commission, - - 
 
 W^m. D. Hamlin, - 
 
 Hoyt «& Eaton, - - - 
 
 Bills Payable, 
 
 Shi})'t to L. Coleman, Bay View, 
 
 Foster Bro's Con. - 
 
 Harding & Lee's Con. 
 
 Cash, _ - - - 
 
 123 
 
 1 
 
 
 
 3500 
 
 
 
 1000 
 
 
 612 
 
 50 
 
 
 955 
 
 
 80 
 
 
 
 18 
 
 75 
 
 
 . 
 
 
 200 
 
 
 400 
 
 10 
 
 9 
 
 24 
 
 
 282 
 
 
 Of**** 
 
 76 
 
 
 
 
 600 
 
 
 7 _ • — ^ — — 
 
 i 505 
 
 
 
 
 
 
 
 224 
 
 50 
 
 
 3028 
 
 25 
 
 00 
 
 775 
 
 
 
 ' 6589 
 
 6589 
 
 ()0 
 
 After completing the Trial Balance, continue the business, making the entries for the following 
 transactions in the various books as heretofore instructed. 
 
 SEPTEMBER. 188-. 
 
 11. Receive cash of Hoyt & Eaton, on % 182.00. 
 
 Buy of Jas. P. King, on "jc, 300 bu. Potatoes, @ 65c. {J.) 
 
 Pay cash for Cooperage on Flour belonging to Harding & Lee's Consignment, 3.75. (*S'. B. and 
 C. B., and check the entries.) 
 
 12. Sell P. J. Gibson, for cash, from Foster Bro's Consignment, 300 bu. R. Wheat, @ 1.37^. {S. B. 
 
 and C. B., and check.) 
 Close Foster Bro's Consignment, and render an account of same. Storage, 2^c. per bu., 12.50: 
 Commission, 2^ on sales, 13.73. >iet proceeds lemitted in cash, 610.02. (6". B. and 0. B.; 
 check 610.02.) 
 
 13. Receive from L. Coleman an account of the shipment made him 5th inst., with cash for your net 
 
 proceeds, 634.50. (C. B.) 
 Student draws cash for private use, 50.00. 
 Sell J no. Howe, from Harding & Lee's Consignment, 100 bbls. Flour, @ 8.00. Receive cash, 
 
 300.00. Balance on «(; at 15 days. (/?. B. and V. B.; check 300.00.) 
 
 15. Ship A. G. Niles, Evansville, to be sold on your account, 200 bu. Potatoes, @ 65e. Pay Cartage 
 
 m cash, 3.25. (J. and C. B.j check S. 2 5.) 
 Note.— Write up on foolscap paper the form for this Invoice of Shipment. See Business Forms, on last pages of 
 the text book, for illustiation. 
 
 Pay Book-keeper cash, to apply on Salary, 25.00. 
 
 Remit Harding & Lee, for cash sale made from their Con. 13 inst., 300.00. {S. B., C. B. and check.) 
 
 16. Pay your note due to-day in cash, 600.00. 
 
 18. Receive from Henry Benson, Seneca, to sell on his account, 500 doz. Eggs. Pay Express charges 
 
 in cash, 0.25. 
 Note.— The letters indicating the books will hereafter be omitted. Rememl)er to check Cash whenever it is debued 
 or credited elsewhere than in the Cash Book, and to check Consigunuaits if debited or credited elsewhere than 
 in the Sales Book. 
 
 19. Remit W^m. D. Hamlin cash in full for his net proceeds, as per Account Sales 6th inst., 377.76. 
 Sell for cash, 50 bu. Potatoes, @ 75c. 
 
 Pay J. P. King cash on % 50.00. 
 
 Sell to Geo. Lacy, tor cash, from Benson's Consignment, 200 doz. Eggs, @ 18c. 
 
 20. Sell W^ D. Vance, on his note at 30 days, from Harding & Lee's Consignment, 200 bbls. Flour, 
 
 @ 8.00. 
 Close Harding & Lee's Consignment, and render an account of same. Storage, 8c. i>er bbl. ; 
 
 Commission, 2 ^ of sales. Balance to Harding & Lee's credit due by ecpiation Oct. loth. 
 Note— You are recniired to work this equation to verify the result as given above. See your Arithmetic for 
 
 instruction in Equation of Accounts. 
 
 Receive cash of M. B. Steele, in full of % 875.00. 
 

 fh'"' * 
 
 il I 
 
 ^ 
 
 J t 
 
 124 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 You may now balance yonr Cash Book. Cash on hand, 4078.07. Next post the foregoing entries 
 from the various books, as instructed on i)age U2, after which take a Trial Balance. Keniember that 
 Cash and all unclosed CU)nsignments must be entered in the Trial Balance before it will i)rove. 
 
 Ill the Trial Balance given below, a portion only of the amounts are extended, the student being 
 required to complete the extensions, as well as to verify those which are given, from his own books. 
 After completing the Trial Balance, continue the business to the cud of September, when you will 
 make out a Balance Sheet and close the Ledger. 
 
 TRIAL BALANCE, SEPTEMBER 20. 188-. 
 
 Student, . - - - 
 
 Mdse. 
 
 Expense, - - - - 
 Welch Bro's, . . - - 
 Storage, - - - - - 
 Commission, - - - - 
 Iloyt & Eaton, . - - 
 Shfp't to L. Colemaii, Bay View, 
 J. P. King, . - - - 
 Harding & Lee, - - - - 
 J. Howe, . . - - 
 Bills Receivable, - - - 
 
 Ship't to A. (}. Niles, Evansville, 
 Henry Benson's Con. - - - 
 Cash, . - - - - 
 
 50 
 1195 
 
 505 
 
 183 25 
 
 4078 
 
 8<;:n 
 
 07 
 
 07 
 
 3500 
 780 
 
 54 
 
 80 
 
 C34 
 
 8037 
 
 50 
 47 
 
 50 
 
 0'; 
 
 SEPTEMBER. 188-. 
 
 21. Ship Wells & Co., Argyle, to be sold on y<nir account, 100 bbls. Ap])les, @ 2.00. 
 
 22. Receive from Lester, Hall & Co., Brantford, to sell on their account, 200 bu. Clover Seed. Pay 
 
 Freight in cash, 15.00. 
 
 23. Receive from A. G. Niles an ac^-ount of the shipment made liim 15th inst. Net j>roceed8 placed 
 
 to your credit, 121.75. 
 Receive cash of Jno. Howe, on ^c, 300.00. 
 
 24. Remit Harding & Lee cash, for balance due them on their Consignment, 2775.75, less discount to 
 
 equated time of i)ayment, Oct. 10. 
 Receive from Wm. D. Hamlin, to sell on his account (2d Consignment), 3000 bu. White Wheat. 
 Pay Freight in cash, 330.00. 
 
 25. Buy of Thos. C. Jennings, on your note at GO days, 800 bu. Corn, @ 70c. 
 Pav Welch Bro's cash, in full of «/c, 200.00 
 
 Sell French & Sweet, for cash, from U'ster, Hall & Co.'s Consignment, 100 bu. Clover Seed, 
 
 @ 5.00. 
 Close Lester, Hall & Co.'s Consignment (100 bu. Clover Seed renuiining unsold), and render an 
 account of same. Storage, 2ic. per bu., 5.00; CU)mmission, 2 ^ of sales. Net proceeds 
 remitted in cash, 470.00. 
 Note.— Make a memorandum simply, on the credit side of the Ccmsiiinment. of the 100 bu. unsold. Next close 
 and rule up the Cousigmuent, and tl^en enter, below the ruling on the debit side, the memorandum of the lUO 
 bu. unsold. 
 
 2C. Sell for cash, 50 bu. Potatoes, @ 78c. 
 
 Ship O. W. Sears, Branchport, to be sold on your account, 800 bu. Corn, @ 70c. Pay Insurance 
 5.00, and Labor on same, 3.10 in cash. 
 
 27. A. Cr. Niles remits you cash, to bala]u;e his ^, 121.75. 
 
 Pay cash for re-packing 300 doz. Eggs belonging to Benson's Consignment, 1.25. 
 Pay J. P. King cash on «(•, 45.00. 
 
 28. Sell Jas. Barger, for cash, 285 doz. Eggs, from Benson's Consignment, @ 17c. 
 15 doz. Eggs belonging to Benson's Ccmsignment were broken. 
 
 Close Benson's Consignment, aiul reiuler an account of same. Commission, 2^ of sales. Net 
 proceeds remitted in cash. 
 
 TlIEOREllCAL AND PRACTICAL BUOK-KEEPING. 
 
 125 
 
 28. Sell M. 15. Steele, on f/c, 100 bbls. Apples, (^ 2.40. 
 
 Prepay your note of 25th inst., favor of Thos. C. Jennings, in cash, less discount. 
 20. Sell Scott & Trevor, on their note at 15 days, from Hamlin's Con. No. 2, 250 bu. W. Wheat, 
 
 @ 1.25. 
 30. Receive from Wells & Co. an account of the shipment made them 21st inst. Net proceeds 
 remitted in cash, 224.50. 
 W. J). Vance i)rei)ays his note of 20th inst. in cash, less discount. 
 Sell Chas. 0. Nixon, from Lester, Hall & Co.'s C(msignment, 100 bu. Clover Seed, @ 5.00. Receive 
 
 his check on Bank of Republic, 200.00. Balance on «/<?. 
 Close Lester, Hall & Co.'s Consignment, and render an account of same. Storage, 2U'. jht bu., 
 2.50; Commission, 2j^ of sales. Remit cash to Lester, Hall & Co. 200.00, and jilace the 
 balance of the net proceeds to their credit. 
 Pay Book-keeper balance due on month's salary, 25.00, and Warehouse Rent, 50.00, in cash. 
 Receive cash of Iloyt & Eaton, to balance ^, 100.00. 
 
 INVENTORY, SEPTEMBER 30, 188-. 
 
 Shipment to O. W. S., Branchport, 
 
 5f>8 10 
 
 You may now balance your Cash Book. Cash on hand, 2464.18. Post and make out a Balance 
 Sheet and close the Ledger. Your Summary should exhibit as follows: 
 
 SUMMARY, SEPTEMBER 30, 188-. 
 
 Total Resources, 4102 28 
 
 ** Liabilities, 387 50 
 
 Present Worth, 3714 78 
 
 Total Gains, 395 03 
 
 *' Losses, 130 25 
 
 Net Gain, 2(;4 78 
 
 After closing the Ledger and proving your balances, proceed to work the months of July and 
 August, on pages 58 to G3, in the same manner as the preceding set, using the Cash Book, Sales Book 
 and Journal as i)rincipal books. At the end of July post, make out a Balance Sheet and close the 
 accounts showing losses and gains. Your results should agree with those given on page GO. At the 
 end of August make out a Balance Sheet aiul close the Ledger. Your results should agree with those 
 given on page 63. Present youi books, with a proof of the Ledger balances, to the teacher for 
 inspection. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 117. — 'What docs this set illustrate? MVhat books are emjdoyed ? 'Are they used as 
 princii)al or auxiliary books? MVhat entries are made in the Sales Book? ' In the Cash Book? •In 
 the Journal? 
 
 Page 122. — ^ Why are Cash and Consignments checked and omitted in posting when they aj)j>ear 
 in any other books than the Cash Book and Sales Book? * In posting from the Cash Book and Sales 
 liook, how is the work to be performed? ® Why must unclosed Consignments and the balance of cash 
 on hand be entered in the Trial Balance? 
 
 Note. — Review also the questions given on iwgc 63. 
 
V 
 
 WHOLESALE. 
 
 > This set is designed to illustrate, in a general way, a method for keeping the books of a Wholesjde 
 or Jobbing Business, Mjy combining and extending the short methods of book-keeping explained and 
 illustrated'' in previous sets, so that much time and hibor nuiy l)e saved in performing the work. 
 
 Since in ahnost every business of any magnitude there will be features peculiar to that particular 
 business, there must of necessity be required other forms and books than those here given, and which 
 it would be quite impossible to illustrate within the scope of an ordinary text book. 
 
 »The princii)al books and forms, however, together with their uses and advantages, are so fully 
 illustrated and explained, that any moditications of or additions to them, necessary to meet the reciuire- 
 ments of any particular business, may readily be devised and emjdoyed. 
 
 The books to be used are the Journal, Sales Book, Check Book, Cash Book, Bill Book and Ledger. 
 
 198 
 
 
 
 : I 
 
 THEOKETICAL AND PRACTICAL BOOK-KEEPING. 
 
 12: 
 
 EXPLANATIONS OF BOOKS USED. 
 
 JOURNAL 
 * The Journal, as used in this set (see form on page 128), combines with it the Invoice Book, 
 Bometinios kept as a sei)arate book, *by the addition of an extra column (headed " Mdse. Dr." in the 
 form), in which the purchases of Mdse. only are to be entered. * This c<dumn is to be added and the 
 footing carried forward from page to page until the end of the day or week or month, as desired, ^ at which 
 time the total footing is to be posted to the debit of Mdse. account. ^ The items in the columns 
 headed ''Sunds. Dr." and " Sunds. Cr." are to be posted separatelj% as in the ordinary Journal. 
 These columns may be footed, so as to prove with the Check Sheets exi)lained on jiage 134. 
 •The Livoices themselves may either be filed away in i)ackages, or pasted in a large book made 
 especially for that purjMjse. '"This may be used as a princii)al book if desired, by "posting from it 
 directly to the Ledger, without nuiking the entries in the Journal. 
 
 SALES BOOK. 
 " The Sales Book (see form on i)age 129) is designed to contain sales of Mdse. only. " The net 
 amount of each bill is to be extended to the last column, and debited to the i)erson who purchased it. 
 " The last column is to be added and the footing carried forward from page to i)age until the end of the 
 day, week or montli, as desired, '*the total being then posted to the credit of Mdse. account. "An 
 additional advantage may be secured by using for a Sales Book a large Copying Book, in which 
 im})ressions of all of the bills may be made and posted directly to the Ledger. 
 
 CHECK BOOK. 
 " In the Check Book (the form given on page 130 shows the stub only) is to be kept a record of all 
 transactions with the bank, '^md a Bank account is not to be opened in the Ledger. '» When a deposit 
 is made, the Bank is debited for the amount of the dei)osit by entering it in the Check Book, with the 
 })roper explanation, and *" adding the amount to the previous balance. " When a check is drawn, the 
 bank is credited, by " deducting the amount of the check from the previous balance. " No entry is to 
 be made in the Cash Book when cash is deposited, '*the balance in bank being treated as cash on 
 hand. ** When a payment is made by check, therefore, the amount must be entered to the credit of 
 cash in the Cash Book, in addition to crediting the bank in the Check Book, because reducing the 
 bank balaucn reduces the cash balance at the same time. 
 
 CASH BOOK. 
 
 ^ The Cash Book (see form on pages 130-131) is designed to contain cash entries only. " It is 
 arranged with special columns, ^ in order to classify to some extent the receipts and ])ayments of cash, 
 and to facilitate the work of posting. ^ The footings only of the special columns are to be posted 
 daily, weekly or monthly, as desired, those on the left side being credited, and those on the 
 right debited. ""The items in the Sundries columns are to be posted separately, those on the 
 left side credited, and those on the right debited. " In posting to the Cash account in the 
 Ledger, the difference in the cash balances only is to be posted. " If the balance of cash on hand 
 is less than at the last posting. Cash account is to be credited with the difference; " if more, 
 IS to be debited. To prove the cash, "add together the footings of all of the columns on the left side 
 of the Cash Book, and the amount will be the total debit of Cash; "^then add together the footings of 
 all of the columns on the right side, and and the amount will be the total credit of Cash. *• The 
 difference between these two amounts will l)e the balance of cash on hand, " which is found by adding 
 the cash in safe and the balance in bank together. 
 
 BILL BOOK. 
 
 ''The Bill Book is to be kept as an auxiliary book, the same as heretofore. *• It may be kej>t as a 
 principal book; but as a rule the entries in it are so few, comparatively, that most book-keepers 
 prefer to journalize such entries. 
 
 TRIAL BALANCE. 
 
 *"The form of Trial Balance shown on })age 134 is called a Continued Trial Balance, and *Ms 
 
 designed to save the time and labor consumed in re-copying the titles of the various accounts whenever 
 
 a Trial Balance is to be taken. 
 
 LEDGER INDEX. 
 
 A common form of Ledger Index is illustrated on page 131. "A convenient jdan for such an 
 
 Index, if the number of accounts is not too great, is to arrange the names alphabetically, as shown in 
 
 the form on page 131, written upon a stiff card of suitable size, which can stand in fnmt of the j>erson 
 
 who is posting, making it much easier to be referred to than the ordinary form of Index. ** When the 
 
 number of accounts is very large, a Vowel Index is generally employed. 
 
12S 
 
 THEORETICAL AND PKACTICAL BOOKKEEPING. 
 
 JOURNAL 
 
 OCTOBER. 188-. 
 
 DATE. 
 
 Oct. 
 
 » 
 
 » 
 
 10 
 
 5> 
 
 Folio. 
 
 61 
 
 61 
 61 
 61 
 62 
 
 61 
 61 
 62 
 62 
 
 61 
 62 
 63 
 
 63 
 
 61 
 
 63 
 
 61 
 62 
 
 63 
 
 63 
 62 
 
 64 
 
 61 
 65 
 
 64 
 
 63 
 
 62 
 
 64 
 
 63 
 
 62 
 
 63 
 
 61 
 62 
 
 64 
 
 II. 0. Fullor and Stiidciit form a ('()-|)artiu'i'shij) 
 this day, uiuUt the linii name of FuHer iS^ Stu- 
 dent, to en^'ago in the AVholesale Business of 
 Wooden Ware and (Irocers' Sundries. 
 
 The partners are to invest eiiually, and share 
 equally in gains and losses. An' interest ac- 
 count is to be kept between the i)artuers. 
 
 Sundries, 
 
 Bills Receivable, 
 
 To H. 0. Fuller, 
 
 Invested as follows: 
 Carter's note, })er B. B. 
 Ilawley &( 'o. 's note, per B. B. 
 Interest, On above to date, 
 
 Cowles & Ilutchings, On account, 
 Olean. 
 
 Sundries, To Sundries, 
 
 Student invested as follows: 
 Bills Receivable, Leighton's note, i)er B. B. 
 
 Interest, On above to date, 
 
 W.& E.Morgan, City, On account, 
 To Bills Payable, Note to Fulton, i>er B. B., 
 
 assumed by tlie tirni. 
 Interest, On above to date, 
 
 S. W.Si(ldons,City, On account, 
 Lorrain Mfg. Co., '* '* 
 
 New York, 
 Brown Bro's & Sea- 
 
 ver, Eastport, " ** 
 
 Student, Net Investment, 
 
 To Byron Yailc, Inv. Oct. 1, 60 days, 
 
 Toronto, 
 
 liills Receivable, Rec'd note to a])i)ly on (^/c. 
 
 To W. & E. Morgan, per B. B. 
 
 To Scovell, Hodges & 
 
 Co., New York, Inv. Oct. 2, 15 days. 
 
 Brown Bro's & Seaver, Gave them note })er B. Ji. on 
 To Bills Payable, account. 
 
 ToF.M.Reed,Bo8ton, Inv. Oct. 3, 90 days. 
 
 Bills Receivable, Ree'd note i)er B. B., for 
 
 To B. N. Achard, Mdse. as i)er S. B. 
 
 To Hopkins «& Weeks, Inv. Oct. 4, 60 days, 
 
 Baltimore. 
 Scovell,IIodge8& Co. Gave them note in full for 
 To Bills Payable, Inv. Oct. 2, 
 
 To Geo. P. Osgood, Inv. Oct. 7, 30 days, 
 
 Chicago. 
 Brown Bro's dfcSeaver, Remitted them, on "/r, draft 
 To Cowles & Hutch- at 30 davs on V. & H. 
 
 ings, 
 To Byron Vaile, 
 
 Inv. Oct 7, 60 davs. 
 
 Bills Receivable, RecM )u)te to ajjply oji ^j^, 
 
 To W. & E. xMorgan, per B. B. 
 
 MDSB. Dli. 
 
 612 
 
 25 
 
 812 
 
 1540 
 
 1316 
 
 216 
 
 376 
 
 4875 
 
 34 
 
 70 
 
 50 
 
 88 
 
 38 
 
 8UND8. DR. 
 
 30(> 
 
 500 
 
 7 
 
 2556 
 
 30f»0 
 
 30 
 
 2014 
 
 33 
 
 14 
 
 500 
 
 100 
 
 81 
 
 66 
 
 812 34 
 
 100 
 
 300 
 
 10302 
 
 22 
 
 8UNDS. CR. 
 
 3363 
 
 47 
 
 600 
 
 8 
 307 
 490 
 
 275 
 3363 
 
 612 
 
 500 
 812 
 
 100 
 1540 
 
 81 
 1316 
 
 812 
 216 
 
 100 
 376 
 
 300 
 
 50 
 44 
 25 
 
 47 
 25 
 
 34 
 
 15177 
 
 71 
 
 75 
 
 70 
 
 34 
 
 50 
 
 88 
 
 60 
 
 THEORETICAL AND PKACTICAL BOOKKEEPING. 
 
 SALES BOOK. 
 
 OCTOBER, 188-. 
 
 129 
 
 Oct. 
 
 3 
 3 
 
 65 
 65 
 
 Frank Goodsi)eed, Waverly. 
 
 1 doz. No. 1 0. Choj:*. Trays, 
 
 2 Glass Cheese Safes, 
 10 Nests F. Pails, 
 
 F. E. AVarren, New Rochelle. 
 
 3 doz. N. D. Z, Wash Boards, 
 5 " E. S. Z. 
 
 5 M No. 4 Paper Bags, 
 
 3 doz. 12-in. B. Bowls, 
 
 4 " Cov. W. D. Baskets, 
 2 " 0. C. Travs, No. 2, 
 
 n " No. 10 Feather Dusters, 
 1 '' No. 12 
 
 5. 
 
 4.50 
 1.25 
 
 2.50 
 1.75 
 1.75 
 10;^ 
 
 1.75 
 2.50 
 5. 
 
 20. 
 
 26.50 
 
 8 
 
 30 
 
 26 
 
 75 
 
 88 
 
 50 
 50 
 
 5 
 
 9 
 
 12 
 
 7 
 8 
 
 7 
 
 5 
 
 10 
 
 10 
 
 50 
 
 50 
 75 
 
 87 
 25 
 
 26 
 
 5C 
 
 
 56 
 
 
 
 
 
 25 and 10 ^ 
 
 18 
 
 36 
 
 
 
 
 
 
 
 
 
 
 
 
 38 
 27 
 
 14 
 
 
 
 
 
 
 10 gro. Gates' Matches, 
 
 2.70 
 
 
 
 
 
 
 
 
 
 6 Broom Racks, 
 
 2.50 
 
 
 
 15 
 
 
 129 
 
 5) 
 
 
 3 
 
 65 
 
 Larkin & Sprong, Groveland. 
 2 doz. Wood Shovels, 
 25 lbs. Cotton Twine, 
 2 doz. No. 3 Wood Scoops, 
 
 30 davs. 
 
 7.50 
 
 .24 
 
 4.50 
 
 
 
 15 
 6 
 9 
 
 
 3i» 
 
 
 
 5 
 
 65 
 
 B.^N. Achard, Scipio. Note 
 10 doz. 2-hoop Pails, 
 3 - II. II. Tubs, 
 
 2 *' Com. H. Tubs, 
 
 3 *' Clothes Pounders, 
 
 per B. B. 
 2. 
 
 8.75 
 8.50 
 2. 
 
 
 
 20 
 
 26 
 
 17 
 
 6 
 
 25 
 
 
 
 
 
 
 10 " Rolling Pins, 
 
 1.25 
 
 
 
 12 
 
 50 
 
 81 
 
 75 
 
 
 » 
 
 65 
 
 Larkin & Sprong, 
 
 12 doz. lioyal S. Dressing, 
 4 gro. Dixon S. Polish, 
 3 doz. qts. University Ink, 
 
 30 davs. 
 1." 
 
 6.00 
 6.00 
 
 18 
 
 
 12 
 24 
 
 
 
 
 
 
 
 % 
 
 10,'^ 
 
 1 
 
 80 
 
 16 
 
 20 
 
 52 
 
 20 
 
 
 >> 
 
 6G 
 
 AVelch & Dow, Fairport. 
 6 gro. W. Crystal, 
 50 boxes Cravon, 
 25 gro. K. Wicks, 
 
 Cash. 
 
 2.75 
 
 .07 
 
 .40 
 
 
 
 16 
 3 
 
 10 
 
 50 
 50 
 
 30 
 
 
 
 8 
 
 65 
 
 Frank Goodspeed. 
 
 2 doz. N. C. Wringers, 
 
 3 " W. Shovels, 
 5 '' H. H. Tubs, 
 
 2 Oil Tanks, 
 
 4 doz. B. Baskets, 
 
 3 " H. Brushes, 
 
 5 gro. Kinning's Bluing, 
 
 45 days. 
 45. 
 
 7.50 
 8.75 
 16. 
 25 ^ 
 
 7.50 
 
 6. 
 
 8. 
 
 32 
 
 8 
 
 
 90 
 22 
 43 
 
 24 
 SO 
 18 
 40 
 
 50 
 75 
 
 268 
 
 25 
 
 
 9 
 
 06 
 
 Welch & Dow. 
 
 4 doz. U. Ink, 
 
 4 '* H. H. Tubs, 
 
 6. 
 10^ 
 
 8.75 
 
 24 
 2 
 
 40 
 
 21 
 35 
 
 60 
 
 1 
 
 
 i 
 i 
 
 
 5 '' W. Shovels, 
 
 7.50 
 
 1 
 
 1 
 
 
 37 
 
 50 
 
 94 
 
 IC 
 
 1 
 
 64 
 
 
 
 
 
 
 
 712 
 
 31 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
130 
 
 THEOKPn^ICAL AND PRAtmOAL BOOKKEEPING. 
 
 CASH BOOK. 
 OCTOBER. 188-. 
 
 BATK. 
 
 F<ilio. 
 61 
 
 CASH 
 
 TO 81INDRIK8. 
 
 SUNDRIES. 
 
 MD8K. 
 
 BIL.L8 RBC. 
 
 1H8COUNT. 
 
 Oct. 
 
 1 
 
 H. v.. Fuller, 
 
 Cash paid in, 
 
 2636 
 
 53 
 
 
 
 
 
 
 
 
 yy 
 
 61 
 
 Student, 
 
 On deposit in C. Bank, 
 
 2636 
 
 53 
 
 
 
 
 
 
 
 
 2 
 
 
 Mdse. 
 
 Drawer sales. 
 
 
 
 95 
 
 48 
 
 
 
 
 
 
 3 
 
 
 Discount, 
 
 B. Vaile, 
 
 
 
 
 
 
 
 30 
 
 61 
 
 
 4 
 
 
 Bills Receivable, 
 
 Leigh ton's note paid. 
 
 
 
 
 
 3000 
 
 
 
 
 
 » 
 
 61 
 
 Interest, 
 
 On above note, 
 
 31 
 
 50 
 
 
 
 
 
 
 
 
 » 
 
 
 Mdse. 
 
 Drawer sales, 
 
 
 
 21 
 
 19 
 
 
 
 
 
 
 5 
 
 
 * k 
 
 i , a 
 
 
 
 62 
 
 10 
 
 
 
 
 
 
 >• 
 
 66 
 
 Welch & Dow, 
 
 Cash sale per S. B. 
 
 30 
 
 
 
 
 
 
 
 
 
 6 
 
 
 Bills Heceiviible, 
 
 Hawlev & Co.'s note paid, 
 
 
 
 
 
 500 
 
 
 
 
 
 yy 
 
 61 
 
 Interest, 
 
 On above note. 
 
 ^ 
 
 75 
 
 
 
 
 
 
 
 
 8 
 
 65 
 
 Frank Goodspeed, 
 
 Inv. 3d inst. 
 
 ^ZiS 
 
 50 
 
 
 
 
 
 
 
 
 j> 
 
 
 Mdse. 
 
 Drawer sales. 
 
 
 
 52 
 
 12 
 
 
 
 
 
 
 »> 
 
 1 
 
 Bills Receivable, 
 
 Carter's note paid, 
 
 
 
 
 1 
 j 
 
 300 
 
 
 
 
 
 10 
 
 65 
 
 Larkin & Sprong, 
 
 Inv. Oct. 3, 
 
 30 
 
 
 
 
 
 
 1 
 
 
 
 yy 
 
 
 Discount, 
 
 F. M. Reed, 
 
 
 
 
 
 
 
 1 38 
 
 52 
 
 
 
 
 
 
 »3gs 
 
 8 1 
 
 330 
 
 • a 
 
 3t00 
 
 
 a» 
 
 1 3 
 
 
 
 64 
 
 
 Mdse. 
 
 230 
 
 89 
 
 
 
 
 
 1 
 
 
 
 
 61 
 
 
 Bills Receivable, 
 
 3800 
 
 
 
 
 
 
 j 
 
 
 
 11 
 
 66 
 
 Balance, 
 
 Discount, 
 
 69 
 
 13 
 
 83 
 05 
 
 
 
 
 
 1 
 
 
 
 9498 
 
 
 Oct. 
 
 
 6149 
 
 
 
 1 
 
 
 FIRST PAGE. 
 
 Oct. 1. Balance, 
 •' 2. Deposited, 
 
 No....l:_ 
 
 Date pet. 3' jiS^- ... ._. 
 
 2^0 Wm. Strong. _ 
 
 Pq^ Rent for October. 
 Amouftt 
 
 CHECK BOOK STUB. 
 
 No. ?,._ 
 
 Date ^^"^'1' 
 
 y^ College Bank. 
 
 Ppy Draft remitted t o Vaile. 
 Amount — 
 
 2636 
 2000 
 
 4 30 
 
 125 
 
 4S1 1 
 
 583 
 
 30 3 8 
 
 53 
 
 93 
 
 t3 
 
 Oil 
 
 4 4 
 
 SECOND PAGE. 
 
 Oct. 4. Deposited, 
 ** 9. Note favor of Fulton paid, 
 '' 10. Deposited, 
 
 No. ?: 
 
 Date ?^Li?^ 
 
 7'^_F. M. Reed. 
 
 Por ^^ account. 
 
 Amount 
 
 39S8 
 
 2500 
 
 • 438 
 
 609 
 
 S8 1 9 
 
 500 
 
 6319 
 
 1502 
 
 4 S 1 
 
 44 
 4 4 
 
 30 
 
 1 4 
 1 4 
 
 19 
 5 
 
 THEOKETICAL AND PRACTICAL BOOKKEEPING. 
 
 131 
 
 CASH BOOK. 
 
 OCTOBER, 188-. 
 
 1»ATK. 
 
 Folio. 
 
 SUNDRIES 
 
 TO CASH. 
 
 SUNDRIES. 
 
 EXPEKSK. 
 
 DI&COCKT. 
 
 Oct. 
 
 2 
 
 Expense, 
 
 Office Safe, 200; Books, 37.50 
 
 
 i 
 
 237 
 
 50 
 
 i 
 
 
 
 3 
 
 63 
 
 Lorrain Mfg. Co. 
 
 On account. 
 
 100 
 
 
 
 
 1 
 
 
 
 y 
 
 
 E.xpense, 
 
 Rent for October, 
 
 
 
 125 
 
 
 
 
 
 ,. 
 
 63 
 
 Byron Vaile, 
 
 Inv. Oct. 1, 
 
 612 
 
 25 
 
 
 
 
 
 
 yy 
 
 
 Expense, 
 
 Exch. on draft. 
 
 
 
 1 
 
 45 
 
 
 
 
 4 
 
 62 
 
 S. W. Siddons, 
 
 On account. 
 
 lo: 
 
 44 
 
 
 
 
 
 
 8 
 
 
 Discount, 
 
 F. Goodspeed, 
 
 
 
 
 
 
 53 
 
 
 9 
 
 62 
 
 Bills Payable, 
 
 Note favor Fulton, 
 
 GOO 
 
 
 
 
 
 
 
 j> 
 
 61 
 
 1 Interest, 
 
 On above note, 
 
 9 
 
 30 
 
 
 
 t 
 
 
 10 
 
 
 Discount, 
 
 Larkin & Si)rong, 
 
 
 
 
 
 
 30 
 
 
 » 
 
 64 
 
 F. M. Reed, 
 
 Inv. Oct. 3, 
 
 1540 
 
 71 
 
 
 
 
 
 
 
 
 Expense, 
 
 Coal for office. 
 
 
 
 15 
 
 30 
 
 
 
 
 
 
 
 2969 
 
 70 
 
 3 7 9 25 j 
 
 %* 
 
 
 
 66 
 
 
 Expense, 
 
 379 
 
 25 
 
 
 
 i 
 
 
 
 
 
 Discount, 
 
 
 83 
 
 78 
 
 
 
 
 
 
 3349 
 
 
 
 
 66 ! 
 
 Balance, 
 
 In Bank, 4.«^in.95 
 
 
 
 
 
 
 
 
 : 
 
 - — - 
 
 
 •• Safe, 1^32.10 
 
 « 
 
 6149 
 
 05 
 
 83 
 
 
 
 
 
 
 949S 
 
 
 
 
 
 
 
 LEDGER INDEX. 
 
 Achard, B. N., 65. 
 
 B 
 
 Bills Receivable. 61. 
 Bills Payable, 62. 
 Brown Bro's & S., 63. 
 
 Cowles & HutchingvS, 62 
 Cash, 66. 
 
 Discount, 66. 
 
 Expense, ^^S. 
 Eaton, M. M., 67. 
 
 Fuller, II. G., 61. 
 
 (io(«lspeed. Frank, 65. 
 (Jardner, \Vm., 67. 
 
 H 
 
 Hopkins & Weeks, 64. 
 Hackett & Brisbain, 6(J. 
 
 I, J 
 Interest, 61. 
 
 Lorrain Mfg. Co., 63. 
 Larkin & Sprong, 65. 
 
 LEDGER INDEX. 
 
 M 
 
 ^lorgan, W. & E., 62. 
 Merchandise, 04. 
 
 N 
 
 Osgood, Geo. P., 64. 
 
 Reed, F. M., 64. 
 Richardson, R., 67. 
 
 Student, 61. 
 Siddons, S. W., 62. 
 Scovell, H. & Co., 63. 
 
 Tilden & Breme, 67, 
 
 u 
 
 Vaile, Byron, ••.'J. 
 
 w 
 
 Warren. F. E., 65. 
 Welch & Dow, 66. 
 
 X. Y. Z 
 
.• 
 
 132 
 
 188- 
 Oct. 
 
 1 
 
 3 
 
 5 
 
 10 
 
 188- 
 Oct. 
 
 188- 
 Oct. 
 
 1 
 9 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 LEDGER. 
 
 H. G. FULLER. 
 
 
 
 188- 
 
 
 
 
 
 
 
 
 Oct. 
 
 1 
 
 J. 
 
 50 
 
 3363 
 
 47 
 
 
 
 
 >' 
 
 C. B. 
 
 30 
 
 2636 
 
 
 
 53 
 
 
 
 STUDENT. 
 
 
 
 188- 
 Oct. 
 
 1 
 
 BILLS RECEIVABLE. 
 
 
 
 
 
 188- 
 
 
 J. 
 
 50 
 
 300 
 
 
 Oct. 
 
 10 
 
 * > 
 
 t < 
 
 500 
 
 
 
 
 « 
 
 < ( 
 
 3000 
 
 
 
 
 (( 
 
 51 
 
 500 
 
 
 
 
 t t 
 
 (( 
 
 81 
 
 75 
 
 
 
 t • 
 
 i( 
 
 300 
 
 488 1 
 
 7 9 
 
 
 
 INTEREST. 
 
 
 
 
 
 188- 
 
 
 J. 
 
 50 
 
 (V 
 
 33 
 
 Oct. 
 
 1 
 
 i< 
 
 « i 
 
 30 
 
 
 
 4 
 
 C. B. 
 
 30 
 
 48 
 
 30 
 as 
 
 
 6 
 
 COWLES & HUTCHINGS. Glean. 
 
 J. 
 
 50 
 
 2556 
 
 188- 
 14 Oct. 
 
 9 
 
 J. 
 C. B. 
 
 50 
 30 
 
 3363 
 2<»36 
 
 8 
 
 47 
 53 
 
 
 
 C. B. 
 
 30 
 
 J. 
 C. B. 
 
 a 
 
 J. 51 
 
 3800 
 
 50 
 
 8 
 
 30 
 
 31 
 
 t < 
 
 
 
 47 
 
 50 
 50 
 75 
 
 75 
 
 100 
 
 188- 
 Oct. 
 
 188- 
 Oct. 
 
 8 
 
 188- 
 Oct. 
 
 10 
 
 188- 
 Oct. 
 
 THEOREllCAL AND PRACTICAL BOOK-KEEPING. 
 
 BROWN BRO'S &. SEAVER, Eastport. 
 
 
 
 
 
 188- 
 
 
 J. 
 
 51 
 
 100 
 
 
 Oct. 
 
 1 
 
 {( 
 
 it 
 
 100 
 
 30 
 
 
 
 
 50 
 
 BYRON VAILE. Toronio. 
 
 SCOVELL. HODGES & CO.. New York. 
 
 51 
 
 812 
 
 34 
 
 188- 
 Oct. 
 
 4 Inv. Oct. 2, 15 ds. J. 
 
 51 
 
 F. M. REED, Boston. 
 
 C. B. 
 
 30 
 
 1540 
 
 71 
 
 188- 
 Oct. 
 
 5 111 v. Oct. 3, 90 ds. J. 
 
 51 
 
 B. N. ACHARD, Scipio. 
 
 S. B. 
 
 21 
 
 81 
 
 75 
 
 188- 
 Oct. 
 
 5 
 
 J. 
 
 51 
 
 HOPKINS & WEEKS, Baltimore. 
 
 188- 
 Oct. 
 
 Inv. Oct. 4, 60 ds. J. 
 
 51 
 
 GEO. P. OSGOOD, Chicago. 
 
 188- 
 Oct. 
 
 9 
 
 Inv. Oct. 7, 30 ds. J. 
 
 133 
 
 
 188- 
 
 
 
 
 
 
 188- 
 
 
 
 
 
 
 
 Oct. 
 
 3 
 
 C. B. 
 
 30 
 
 612 
 
 25 
 
 1 Oct. 
 
 2 
 10 
 
 Inv. Oct. 1, 60 ds. 
 
 J. 
 
 51 
 
 612 
 376 
 
 • •0 
 
 25 
 
 88 
 
 13 
 
 812 
 
 34 
 
 1540 
 
 71 
 
 81 
 
 75 
 
 1316 
 
 70 
 
 51 I 216 
 
 50 
 
 ^ 
 
 188- 
 Oct. 
 
 188- 
 Oct. 
 
 188- 
 Oct. 
 
 W. &. E, MORGAN, City. 
 
 
 
 
 188- 
 
 
 50 
 
 2014 
 
 ()G 
 
 Oct. 
 
 3 
 10 
 
 BILLS PAYABLE. 
 
 188- 
 
 
 
 
 
 
 188- 
 
 
 
 Oct. 
 
 9 
 
 C. B. 
 
 30 
 
 600 
 
 
 i Oct. 
 
 1 
 4 
 
 8 
 
 
 S. W. SIDDONS, City. 
 
 C. B. 
 
 30 
 
 107 
 
 44 
 
 188- 
 Oct. 
 
 LORRAIN MFG. CO.. NewYoik. 
 
 C. B. 
 
 30 
 
 100 
 
 188- 
 Oct. 
 
 J. 
 
 51 
 
 if 
 
 50 
 
 J. 
 
 50 
 
 500 
 300 
 
 8 
 
 J. 
 
 50 
 
 600 
 
 
 ii 
 
 51 
 
 100 
 
 
 • *• 
 
 k< 
 
 812 
 
 34 
 
 
 
 1513 
 
 34 
 
 307 
 
 44 
 
 490 
 
 25 
 
 188- 
 Oct. 
 
 10 
 
 188- 
 Oct. 
 
 188 
 Oct. 
 
 45 ds 
 
 5 
 
 30 ds. 
 
 MERCHANDISE. 
 
 J. 
 
 51 
 
 4875 
 
 38 
 
 188- 
 Oct. 
 
 10 
 
 S. B. 
 
 22 
 
 712 
 
 31 
 
 C. B. 
 
 30 
 
 230 
 
 89 
 
 
 
 • 4 3 
 
 >• 
 
 FRANK GOODSPEED, Waverly. 
 
 
 
 
 
 188- 
 
 
 S. B. 
 
 20 
 
 26 
 
 50 
 
 Oct. 
 
 8 
 
 (( 
 
 21 
 
 268 
 
 304 
 
 25 
 
 7 5 
 
 
 
 F. E. WARREN, New Rochelle. 
 
 
 
 
 
 188- 
 
 
 S. B. 
 
 20 
 
 30 
 
 
 Oct. 
 
 10 
 
 i( 
 
 21 
 
 52 
 
 82 
 
 20 
 a • 
 
 
 
 C. B. 
 
 30 
 
 C. B. 
 
 30 
 
 26 
 
 50 
 
 30 
 
* 
 
 134 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 WELCH & DOW, Fairport. 
 
 188- 
 Oct. 
 
 
 
 
 
 ISS- 
 
 
 S. B. 
 
 22 
 
 30 
 
 
 Oet. 
 
 5 
 
 (( 
 
 (( 
 
 94 
 
 ] 34 
 
 10 
 1 
 
 
 
 C. B. 
 
 30 
 
 30 
 
 DISCOUNT. 
 
 188- 
 Oct. 
 
 10 
 
 C. B. 
 
 30 
 
 83 
 
 188-1 
 Oct. 10 
 
 C. B. 
 
 30 
 
 01 > 
 
 13 
 
 EXPENSE. 
 
 188- 
 Oet. 
 
 10 
 
 C. B. 
 
 30 
 
 379 
 
 I 
 
 25 
 CASH. 
 
 188- 
 Oct. 
 
 10 
 
 C. B. 
 
 30 
 
 0149 05 
 
 
 
 It is customary in business to post the items from tlie various books every day, and after posting 
 to review the work, re-examining and re-ehecking every entry, to detect any error which may have 
 been made in the work, and to avoid if possible a *• refractory" trial bahmce at the end of tlie month. 
 
 The foHowing phm is sometimes substituted for tlu^ re-checking process, and proves very effective, 
 especially where the book-keeper is provided with an assistant: 
 
 A sheet of paper or card, called a *' Check Slieet," or " Check Card," of about foolscap size, ruled 
 in narrow columns, is provided for each book from which posting is to be done. Before tlie work of 
 posting begins, the assistant enters from the Index the Ledger folio against each amount which is to 
 be posted. He then finds the account in the Ledger, and the book-keeper, after observing that he has 
 turned to the right account, posts the entry, checking it thus \/ in the book from which it was posted. 
 After checking the entry, he takes a second look at the amount ii>< it standx in the Ledger, and, while 
 the assistant is finding the next account, he enters it upon the Check Siu^et corresjwnding with the 
 book from which it was ])osted. At the end of the day the footings of the several sheets and the 
 footings of the corresponding books must of course agree. 
 
 The above plan is almost an absolute check upon omissicms, upon a transimsition of figures and 
 upon posting to the Avrong account. 
 
 The illustrations given below represent the Check Sheets of the Journal, Sales Book and Cash 
 Book for the previous ten days' posting. 
 
 JOURNAL DEBIT 
 CHECK SHEET. 
 
 300 
 
 500 
 
 7 
 
 2550 
 
 3000 
 
 30 
 
 2014 
 
 500 
 
 100 
 
 81 
 
 812 
 
 100 
 
 300 
 
 10303 
 
 33 
 14 
 
 00 
 
 34 
 
 33 
 
 JOURNAL 
 
 . CREDIT 1 
 
 CHECK SHEET. 
 
 3363 
 
 47 
 
 1 
 
 15177 
 
 60 
 
 600 
 
 
 
 
 8 
 
 50 
 
 
 
 307 
 
 44 
 
 
 
 490 
 
 25 
 
 
 
 275 
 
 
 
 
 3363 
 
 47 
 
 
 
 612 
 
 25 
 
 
 
 500 
 
 
 
 
 812 
 
 34 
 
 
 
 100 
 
 
 
 
 1540 
 
 ;i 
 
 
 
 81 
 
 
 
 
 1310 
 
 70 
 
 
 
 812 
 
 34 
 
 
 
 210 
 
 50 
 
 
 
 100 
 
 
 
 
 370 
 
 88 
 
 
 
 300 
 
 
 
 
 1 »1 77 
 
 a 
 
 
 
 SALES BOOK DEBIT 
 CHECK SHEET. 
 
 26 
 129 
 30 
 81 
 52 
 30 
 268 
 94 
 
 7 1 3 
 
 50 
 51 
 
 75 
 20 
 
 25 
 10 
 
 31 
 
 CASH DEBIT 
 CHECK SHEET. 
 
 2636 
 
 2636 
 
 31 
 
 30 
 
 7 
 26 
 30 
 
 >3»S 
 
 53 
 53 
 50 
 
 75 
 50 
 
 81 
 
 CASH CREDIT 
 CHECK SHEET. 
 
 100 
 612 
 107 
 (500 
 9 
 1540 
 
 3 8 9 
 
 25 
 44 
 
 30 
 71 
 
 7 
 
 Folio 
 
 01 
 61 
 
 01 
 61 
 62 
 62 
 62 
 02 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 CONTINUED TRIAL BALANCE. 
 
 135 
 
 H. G. Fuller, 
 
 Student, 
 
 Bills Receivable, 
 
 Interest, 
 
 Cowles & Ilutchings, 
 
 W. «& E. Morgan, 
 
 Bills Payable, 
 
 S. W. Sfddons, 
 
 Lor rain Mfg. Co. 
 
 Brown Bro's & Seaver, 
 
 Byron Vaile, 
 
 Scovell, lIo(lges «& Co. 
 
 F. M. Reed, 
 
 Hopkins & Weeks, 
 
 Geo. P. Osgood, 
 
 Merchandise, 
 
 Frank Good speed, 
 
 F. E. Warren, 
 
 Lark in & Sj)r<mg, 
 
 B. N. Achard, 
 
 Welch & Dow, 
 
 Discount, 
 
 Ex])eiise, 
 
 Cash, 
 
 Hood & Mevers, 
 S. M. Smith, 
 Hackett & Brisbain, 
 R. Richardson, 
 Tilden & Breme, 
 M. M. Eaton, 
 Wm. Gardner, 
 
 October 10. 
 
 4681 
 
 40 
 
 2550 
 
 2014 
 
 600 
 
 107 
 
 100 
 
 200 
 
 012 
 
 4875 
 
 294 
 
 129 
 
 82 
 
 124 
 
 379 
 0149 
 
 75 
 03 
 14 
 06 
 
 44 
 
 25 
 
 38 
 75 
 51 
 20 
 
 10 
 83 
 25 
 05 
 
 6000 
 6000 1 
 
 3800; 
 
 47 75 
 100 1 
 800 I 
 1512 I 34 
 307 44 
 490 1 25 
 275 
 
 October 20. 
 
 989 
 
 1310 
 
 210 
 
 943 
 
 26 
 
 30 
 
 30 
 
 69 
 
 13 
 
 70 
 50 
 20 
 50 
 
 13 
 
 300 
 
 500 
 
 5417 
 
 40 
 
 2550 
 
 2014 
 
 700 
 
 107 
 
 290 
 
 200 
 
 812 
 1540 
 
 210 
 7390 
 380 
 217 
 197 
 
 8 
 
 479 
 
 6149 
 
 82 
 218 
 121 
 
 25 
 
 03 
 14 
 00 
 
 44 
 25 
 
 34 
 71 
 
 50 
 39 
 
 01 
 95 
 
 90 
 
 05 
 
 75 
 
 7000 
 
 6000 
 
 4381 
 
 47 
 
 700 
 
 800 
 
 1612 
 
 307 
 
 490 
 
 275 
 
 948 
 
 2781 
 
 677 
 
 2475 
 
 294 
 
 129 
 
 82 
 
 136 
 
 202 
 
 50 
 498 
 
 75 
 
 34 
 44 
 25 
 
 61 
 65 
 
 25 
 89 
 75 
 51 
 20 
 
 32 
 
 80 
 
 40 
 
 October 31. 
 
 6917 
 53 
 
 25 
 63 
 
 1 1503 
 
 28 
 
 577 
 
 6001 
 
 22 
 
 78 
 96 
 32 
 
 5607 
 50 
 
 25 
 
 08 
 
 4490 
 
 231 
 262 
 
 04 
 
 88 
 86 
 
 STATEMENT OCTOBER 31. 188-. 
 
 RESOURCES. 
 
 Bills Receivable, 1250 00 
 
 Mdse. Inventory, 7908 33 
 
 Expense. " 200 00 
 
 Cash, 0398 40 
 
 Personal Accounts, 640 80 
 
 10457 59 
 
 LIABILITIES. 
 
 Personal Accounts, 3474 41 
 
 Fuller s Net Investment, 6701 42 
 
 h Net Gain, 391 67 
 
 a 
 
 " Present Worth, 7093 09 
 
 Student's Net Investment, 5498 42 
 
 ^ Xet Gain,-. 391 67 
 
 tt 
 
 ct 
 
 Present Wortli, 5890 09 
 
 16457 59 
 
 I \ 
 
136 
 
 THEOBETICAL AND PRACTICAL BOOKKEEPING. 
 
 OCTOBER. 188-. 
 
 1. H. G. Fuller and Student form a co-partnership this day, under the firm name of Fuller & Student, 
 to engage in the wholesale business of Wooden Ware and (Jrocers' Sundries. 
 Tlie Co-})artnership articles this day executed, provide that each j)artner shall devote his entire 
 time to the business; that the gains and losses shall be divided equally, and that an Interest 
 account shall be kei)t between the partners. 
 
 Note. — Make the above as a memorandum iu your Journal. 
 
 H. G. Fuller's investment: Cash paid in, 2';3G.53 {C. B.); T). G. Carter's note, dated September 
 5 last, at 30 days, jjayable at City Bank, 3(K).0() (,/. and H. B.)\ Hawk-y & Co.'s note dated July 
 5 last, at 90 days, payable at First National Hank, with interest, 500.00 {J. and B. B.); Interest 
 accrued to date on H. & Co.'s note (/.); Cowh's & Hutchings, Ok'an, owe on account, 
 2556.14 (J.). 
 
 Note. — Wliile it is expected that you will Im obliged to refer ocejisionally to the forms as indicated in the transac- 
 tions by the initial letters: J. Journal, S. B. Sales Book, Ck. 11 Check Book. C. B. Cash Book, and B. B. Bill 
 Book, it is desirable that you do so oidy when necessjiry. performing the work as nmch as possible from the 
 memoranda, aided by the explanations for the various books given on page 127. In every case decide how you 
 think the entry shoidd be made before consulting the forms. 
 
 Student's investment: On deposit in College Bank, to the credit of the firm, 2036.53 {0. B. and 
 Ck. B. See note h('low)\ E. B. r^eigh ton's note dated August 2iul last, at 60 days, indorsed 
 by W. D. Soules, i)ayable at Traders' Bank, with interest, 3000.00 (,/. and B. B.); Interest 
 accrued to date on above note (J.); W. & E. Morgan, city, owe on account, 2014.66 [J.). 
 
 Note.— In the absence of a Check Book, a form for the Check Book Stub may l)e ruled on a sheet of foolscap paper. 
 
 Student's liabilities: Note favor Giles P. Fulton, dated July 8 last, at 90 days, i)ayable at College 
 Bank, with interest, 600.00 (J. and B. B.); Interest accrued to date (./.); due the following 
 firms on account: S. W. Siddons, city, 307.44; Lorrain Manufacturing Co., New York, 
 490.25; Brown Bros. & Seaver, Eastport, 275.00 (J.). 
 
 2. Buy for cash, Office Safe, 200.00; Office Books, 37.50. {C. B.) 
 Deposit in College Bank, cash, 2000.00. {Ck. B.) 
 
 Note. — No entry is made in the Cash Book for the reason explained 28-29 page 127. 
 
 Receive Mdse. from Byron Vaile, Toronto, as ]K'r Invoice October 1, on 60 days, 5^ oflF in 10 days, 
 612.25. (/.) 
 
 Note. — See Business Forms on last pages of text book, for illustration of letter ordering the above invoice, also see 
 explanations 4-13 page 127. 
 
 Sales for cash, per drawer, 95.48. {C. B.) 
 
 3. Pay Lorrain Mfg. Co. cash on «^, 100.00. (C. B.) 
 
 Pay Wm. Strong rent of store one month in advance, by your check on College Bank, 125.00. {C. 
 B. and Ck. B.) 
 Note. — See expiations 26-80 page 127. 
 
 Sell Frank Goodspeed, Waverly, 1 doz. No. 1 Oval C'hopi)ing Trays, @ 5.00; 2 Glass Cheese Safes, 
 (a) 4.50; 10 nests F. Pails, @ 1.25. {S. B.) 
 
 Note. — All sales on 60 days time unless otherwise noted. • 
 
 Sell F. E. Warren, New Kochelle, 3 doz. Novelty T). Z. Washboards, @ 2.50; 5 doz. Eagle S. Z. 
 Washboards, @ 1.75; 5 M No. 4 Pa])er Bags, @ 1.75, less 10;^; 3 doz. 1 i incli Butter Bowls, 
 @ 1.75; 4 doz. Cov. W. 1). Baskets, @ 2.50; 2 doz. O. C. Trays No. 2, @ 5.00; li doz. No. 
 10 Feather Dusters, @ 20.00 and 1 doz. No. 12, @ 26.50, less 25 and 10^; 10 gro. (Jates' 
 Matches, @ 2.70; 6 Brocmi Racks, @ 2.50. {S. B.) 
 
 Note. — See Business Forms on last pages of the text IwK^k for illustration of above invoice. 
 
 Receive of W. & E. Morgan tlieir note at 10 days, i)ayable at Traders' Bank, on ^fc, 50t).0O. {J. and 
 B. B.) 
 
 Note. — Care must be exercised in making the entries in the .Tournal and Cash Book, or errors will be made by 
 placing amounts iu the wrong columns. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 137 
 
 3. Buy a New York draft at i^ exchange, and remit to Byron Vaile for Invoice September 30, 612.25, 
 
 less 5^. Give your check on College Bank to cover the draft and exchange. ( C. B. and 
 
 Ch. B.) 
 NOTE.-See Business Forms on last pages of the text book for illustration of letter accompanying the above remit- 
 
 tance. 
 Sell Larkin & Sprong, Groveland, 30 days, 2 doz. Wood Shovels, @ 7.50; 25 lbs. Cotton Twine, 
 
 @ 24c.; 2 doz. No. 3 Wood Scoops, @ 4.50. {S. B.) 
 
 4. Pav S. W\ Siddons, cash on % 107.44. (6^ B.) 
 
 Receive Mdse. from Scovell, Hodges & Co., New York, i)er Invoice, October 2. on 15 days. 
 
 812.34. (/.) 
 Receive cash for a note due to-day. {C. B. and B. B.) 
 Deposit cash in College Bank, 2500.00. {Ck. B.) 
 Salesfor cash, per drawer, 21.19. {G. B.) 
 Give Brown Bros, k Seaver your note at 10 days, payable at College Bank, on ^jc, 100.00. {J. and 
 
 B.B.) 
 
 5. Receive Mdse. from F. M. Reed, Boston, per Invoice October 3, on 90 days, 1540.71. (/.) 
 
 Sales for cash, per drawer, 62.10. {C. B.) 
 
 Sell B. N. Achard, Scii>io, on his note at 10 days, payable at College Bank, 10 doz. 2-IIoop Pails, 
 @ 2.00; 3 doz. Heavy Hoop Tul)s, @ 8.75; 2 doz. Com. Hoop Tubs, @ 8.50; 3 doz. Clothes 
 Pounders, @ 2.00; 10 doz. Rolling Pins, @ 1.25. {S. B., J. and B. B.) 
 
 Note.— Bills Receivable instead of Achard might have been debited in the Sales Book, and then no Journal entry 
 would have been required. As now made the entries could be checked in both Sales Book and J(.urnal 
 to obviate the necessity of opening an account with Achard in the Ledger. If. as in this case, however, 
 it is desired to know at the end of the year the amount of goods sold to a customer, it is better to open an 
 account with him and post all bills, even though paid for at the time of purchase. 
 
 Sell Larkin & Sprong, 30 days, 12 doz. Royal Shoe Dressing, @ 1.00; 4 gro. Dixon's Stove Polish, 
 
 @ 6.00; 3 doz. qts. University Ink. @ 6.00, 10^ off. {S. B.) 
 Sell Welch & Dow, Fairport, for cash, 6 gro. Wasliing Crystal, @ 2.75; 50 boxes Crayon, @ 7c.; 
 
 25 gro. No. 2 Kerosene Wick, @ 40c. {S. B. and C. B. ) 
 
 Note. —See note under sale to B. N. Achard, above. 
 
 6. Receive cash for a note due to-day. ( C. B. and B. B. ) 
 
 7. Receive Mdse. from Hopkms & Weeks, Baltimore, per Invoice October 4, on 60 days, 1316.70. (J.) 
 
 8. Receive from Frank Goodspeed, a draft on New York for Invoice 3d inst., 26.50, less 2^. {C. B.) 
 Sales for cash, per drawer, 52.12. {C. B.) 
 
 Receive cash for a note due to-day. {C. B. and B. B.) 
 
 Sell Frank Goodspeed, on 45 days, 2 doz. N. C. Wringers, @ 45.00; 3 doz. Wood Shovels, @ 7.50; 
 5 doz. II. H. Tubs, @ 8.75; 2 Oil Tanks, @ 16.00, less 25^; 4 doz. Bushel Baskets, Oak, (a^ 
 7.50; 3 doz. Horse Brushes, @ 6.00; 5 gro. Kinning's Bluing, @ 8.00. 
 
 Note.— Write up this invoice on foolscap paper. See Business Forms on la.st pages of text book for illustration. 
 
 Give Scovell, Hodges & Co. your note at 10 days, payable at College Bank, for Invoice October 2, 
 
 812.34. 
 
 9. Receive Mdse. from Geo. P. Osgood, Chicago, per Invoice October 7, 30 days, 216.50. 
 
 Your note due at College Bank, has been charged to your account. {C. B., B. B and Ck. B.) 
 Sell Welch & Dow, 4 doz. qts. University Ink, @ 6.00, less 10 j^; 4 doz. H. H. Tubs, @ 8.75; 5 
 
 doz. W. Shovels, @ 7.50. 
 Draw a draft on Cowles & Hutchings, Eastport, at 30 days sight, and remit it to Brown Bros. & 
 
 Seaver, on % 100.00. (/.) 
 10. Receive from Larkin & Sprong, cash for Invoice October 3d, 30.00, less 1^. {C. B.) 
 Deposit cash in College Bank, 500.00. {Ck. B.) 
 
 Receive Mdse. from Byron Vaile, per Invoice October 7, on 60 days, 376.88. 
 Give F. M. Reed your check on College Bank for Invoice October 3, 1540.71, less 2^4. {C. B. 
 
 and Ck. B.) 
 Pay cash for Coal, for Office use, 15.30. 
 Receive of W. & E. Morgan, their note at 10 days, payable at Traders' Bank, to apply ou ^, 
 
 300.00. {J. and B. B.) 
 

 if li 
 
 Hi 
 
 >1' 
 -J 
 
 ! 
 
 !"fli 
 
 ^•11 
 
 
 
 m 
 
 138 
 
 THEOREIICAL AND PRACTICAL BOOK- KEEPING. 
 
 You may now post the entries for the foregoing ten days' business. See explanations and illustra- 
 tions on page 134 for using check sheets. Give each account one-fourth of a page space. First post 
 from the Jouriuil. See 4 to 8, jjage 127, for instructions. See also the Journal form on page 128, 
 showing the columns footed and ruled. Use the Ledger folio to check the jwsting. Tlie pages of 
 your books will not, of course, correspoiul with those given in the forms. After opening an account in 
 the Ledger, jdace the title in the index, together with the number of the page u})on which it is oi)ened. 
 See illu8tratit)n on })age 131, also see ex])lunations on i)age 127. Next ])ost from the Sales Book; see 
 18-15, page 127. See also form of Sales Book on })age 129, showing the Mdse. column footed and ruled. 
 
 Balance and prove the cash before commencing to })ost from the Cash Book. For instructions, see 
 34-37 i)age 127. See form of Cash Book on i)age8 130 and 131, showing the manner of footing 
 and ruling the columns, and bringing down the balance of cash on hand. Cash in Safe, 1332.10; 
 Balance in Bank, shown by Check Book Stub, page 130, 4810.95. 
 
 After you have completed the posting, your Ledger should correspond with the one given on pages 
 132-3-4. Next take a trial balance, using the Continued Trial Balance form as illustrated on i)age 
 135. See 40-41 j)age 127. If no such form is provided in your Trial Balance book, you may rule 
 one. The Ledger titles are all to be entered in the trial balance; but those which balance need not be 
 extended. The footings of the columns are not given in the form; you are to foot aiul i)rove 
 them, however, as heretofore. You need not rule up any of the personal accounts, even when 
 settled in full, but continue the pencil footings until the end of the month, in order that the footing 
 of each person's account in the Ledger nuiy show the entire amount of goods bought of or sold to him 
 during that period. Business men frequently carry out this plan through an entire year's business. 
 
 After completing the trial balance, continue the work in the same manner as in the preceding ten 
 days' business. 
 
 Write up the business forms wherever called for by the Memoranda, and take particular i)ains with 
 the penmanshii), spelling and general appearance of these documents. 
 
 OCTOBER 188-. 
 
 11. Sales for cash per drawer, 65.30. 
 
 Deposit cash in College Bank, 400.00. 
 
 12. Sell M. M. Eaton, Seneca, on his note at 15 days, payahlc at Farmers' Bank, 6 doz. C. Brooms, @ 
 
 3.00; 2 doz. C. Trays, @ 5.00; 2 doz. N. D. Z. Washboards, (^ 2.50; 10 doz. U. Ink, (u) 0.00 
 less 12i'^. {S. B., J. and B. B.) 
 
 13. Student draws for private use by check on College Bank, 500.00. {(!. B. and CTc. B.) 
 
 14. Received from Frank Goodspeed casli for Invoice Oct. 8, 268.25, less 1^^. 
 Leave M. M. Eaton's note at College Bank for collection. {B. B.) 
 
 Note.— In the column in the Bill Book headed "When and How Di.sposed of," say "Oct. 14, left at College Bank 
 for collection." 
 
 Receive from Scovell, Hodges & Co. Mdse. per Invoice Oct. 9, at 15 days, 136.27. 
 
 Sell F. E. Warren 3 doz. Willow Clothes Baskets, @ 9.00; 4 doz. Willow Market Baskets, @ 3.50: 
 
 5 doz. Cherry Knife Trays, @ 4.50; 3 M Crown Butter Dishes, (7b, 10.00, less 20 ^. 
 Sell Frank Goodspeed 5 doz. H. H. Tubs, @ 8.75; 3 doz. Busli. Baskets, Oak, @ 7.50; 20 Nests 
 
 F. Pails, @ 1.25. 
 
 15. Give Lorrain Mfg. Co. your check on College Bank, on «f, 90.25. 
 
 Accept Lorrain Mfg. Co.'s draft on you at 10 days sigiit, i)ayable at College Bank, favor of D. 
 
 Leary, to apply on ^, 100. (,/. and B. B.) 
 Pay cash for Postage, 2. 75. 
 
 Buy of Hood & Meyers, City, on 60 days, Mdse. pi-r Invoice Oct. 15, 178.65. 
 10. Sales for cash per drawer, 136.15. 
 
 Give Hopkins & Weeks your check on College Bank, for Invoice Oct* 7, 1310.70, less 2^1^. 
 Sell S. M. Smith, City, on ten days, 10 gro. Lead Pencils, @ 1.00; 5 doz. Cotton Clothes Lines, 
 @ 2.00; 10 doz. P. B. Dishes, @ 5.50, less 20,'^; 1^ doz. Feather Dusters, @ 20.00, less 40^. 
 Receive from Geo. P. Osgood, Mdse. i)er Invoice Oct. 12, 30 days, 400.75. 
 Receive of Lark in & Sprong, cash for Invoice Oct. 5, 52.20, less 1^. 
 Receive cash for a note due to-dav. 
 Deposit cash in College Bank, 1500.00. 
 H. G. Fuller draws for private use by check on College Bank, 300.00. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 139 
 
 17. Remit Geo. P. Osgood your certified check on College Bank, for Invoice Oct. 7, 210.50, less 3 ^. 
 Note.— Write up this cheek on foolscap paper. See Business Forms, on last pages of text book, for certified check. 
 
 Sell Larkin & Sprong 2 doz. No. 10 F. Dusters, @ 20.00, less 25 and 10^; 5 doz. H. 11. Tubs, @ 
 
 8.75; 6 doz. W Baskets, @ 7.50. 
 Sales per cash drawer, 1G2.50. 
 Receive from Cowles & Ilutchings their note at 5 days, payalde at Exchange Bank, to apply on «t, 
 
 GOO. 00. 
 Sell Ilackett & Brisbain, Clinton, 3 doz. N. D. Z. Washboards, @ 2.50; 5 doz. V. K. Trays, @ 
 
 4.50; 10 doz. B. Brooms, @ 2.00; 5 doz. H. H. Tubs, @ 8.75; 10 gro. U. Ink. (^ 6.00, less 
 
 10^; (i doz. B. Baskets, @ 7.50; 2 doz. No. 10 F. Dusters, @ 20.00, less 35^. 
 Receive from F. E. Warren a draft on New York for Invoice Oct. 3, 129.51, less 2^. 
 Your note due to-day at College Bank, charged to your «/c. 
 
 18. Pay Clerks' salaries in full to date, in cash, 87.75. 
 Deposit in College Bank, cash, 400.00. 
 
 Give Hood & Mevers vour check on College Bank for Invoice Oct. 15, 178. C5, less 5^. 
 
 H. G. Fuller makes an additiomd cash investment of 1000.00. 
 
 Receive Mdse. from F. M. Reed per Invoice Oct. 14, on 90 days, 1240.94. 
 
 Sell Ralph Richardson, Oneida, 20 gro. G. Matches, @ 2.70; 4 doz. 12 inch B. Bowls, @ 1.75; 6 
 doz. N. D. Z. Washboards, @ 2.50; 2 doz. No. 1 0. C. Trays, @ 5.00; 4 doz. H. H. Tubs, @ 
 8.75. Receive his note at 10 days, payable at College Bank, 50.00; balance on «f, 00 days. 
 {S. B., J. and B. B.) 
 
 Note.— Richardson beinj? debited in the Sales Book 121.00, and credited in the Journal 50.00, when these entries shall 
 have been posted, the difference in his account will show the balance still due. 
 
 Receive cash for a note due to-day. 
 Sales per cash drawer, 228.79. 
 
 19. Receive cash from Welch & Dow for Invoice Oct. 9, 94.10, less 1^. 
 
 Sell Wm. Gardner, for cash, 3^ doz. Maud S. Halters, @ 7.50; 4 doz. Curry Combs, @ 1.50; 2 
 doz. Curry Cards, @ 1.25; 2^ doz. Horse Brushes, @ 6.00. 
 
 20. Receive Mdse. from Tilden & Breme, Oswego, per Invoice Oct. 17, on 60 days, 498.40. 
 Deposit Cash in College Bank, 1000.00. 
 
 Sales per cash drawer, 88.45. 
 
 Buy for cash, a New York draft at ^ ,^ exchange, and remit to Byron Vaile for Invoice Oct. 7, 
 
 376.88, less5,C 
 Pay cash for cartage, 8.35. 
 
 You may now balance the Cash Book. The footings of the columns on the debit side of the Cash 
 Book should be as follows: Sundries, 7742.86; Mdse., 681.19; Bills Receivable, 581.15; Discount, 
 67.19. On the credit side Sundries, 3078.98; Expense, 99.75; Discount, 8.07. Prove the cash; see 
 34-37, page 127. In Safe, 422.99; m Bank, as shown by Check Book, 5463.20. 
 
 Next i)ost and take a trial balance, in accordance with the directions given at the end of the first 
 ten days' business on pages 134 and 138. In posting to Cash account, enter on the credit side 262.86, the 
 ]iayments of cash having exceeded the receipts by that amount since the last posting. See 31-33, 
 
 page 127. 
 
 Remember to place all new accounts in the Index as soon as opened in the Ledger. Add new 
 accounts to the trial balance, as show n on page 135. 
 
 After completing the trial balance, continue the work as before. 
 
 OCTOBER, 188-. 
 
 21. Accept Lorrain Manufacturing Co.'s draft on you in favor of themselves, at 1 «lay sight, payable 
 
 at College Bank, 100.00. 
 Deposit cash in College Bank, 200.00. 
 Sell Frank Goodspeed, 1 gro. Tytler's Axle Grease, @ 9.00; 2 gro. K. Bluing, (^i 8.00; 100 Grain 
 
 Bags, @ 22c. ea. ; 2 M No. 4 Paper B. Dishes, @ 5.50, less 20^. 
 Your note due to-day charged in at College Bank. 
 
*■-•-■ — 
 
 140 
 
 THEORETICAL AWD PRACTICAL BOOK-KEEPING. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 141 
 
 ) U 
 
 22. Receive Mdse from Byron Vailo i)er Invoice Oct. 10th, on 00 days, 075.00. 
 
 Receive of W. & E. Morgan their note at «0 days, endorsed hy Thos Field, pavahle at Traders' 
 Bank, on <^, 500.00. 
 
 Note.— Draw up this note on foolscap paixT. St'c Business Fonns on lust pages, for illustration of note with 
 Endorser. 
 
 Receive of S. M. Smith, his clieck on Flower City Bank, in payment of Invoice Oct. 10, 82.00. 
 Sales for cash, i)er drawer, 209.14. 
 
 23. Sell S. M. Smith, 4 doz. Mouse Trai)8, @ 50c.; 6 doz. Taylor Mops, @ 1.50; | doz. Novelty C. 
 
 Wringers, @ 45.00; ^ doz. No. 14 F. Dusters, @ 30.00, less 25 and 10;^. 
 Receive cash for a note due to-day. 
 Receive F. E. Warren's check on Farmers' Bank, New Rochelle, for Invoice Oct. 14, 87.50, less 
 
 2^. 
 Ilackett & Brisbain return for credit 2 doz. F. Dusters from Invoice 17th inst. 
 
 24. Remit Scovell, Hodges & Co. a New York draft, which you will purchase by check on College 
 
 Bank, at ^^ exchange, in payment of Invoice Oct. 9, 130.27, less 2^^. 
 
 Note.— Write the above draft on foolscap paper, and procure from the teacher blank letter sheet and envelope, and 
 write to Sc-ovell, Ibxl^^es & Co., enclosing the above remittance. See page 77, also Bu.siness Forms on last pages 
 of text book for illustrations. In folding the letter, fold it first from the bottom to one-half its length, or as 
 far as is necessary to tit the lingth of the envelope, and then fold from the side to one-third its width, or as far as 
 is necessary to fit the width of the envelope. 
 
 Sales for cash, j)er drawer, 115.00. 
 
 Deposit in College Bank Currency, 500.00 and Warren's check, 85.75. The bank deducts 25c. 
 for collection of check. 
 
 25. Sell F. E. Warren 10 doz. C. Brooms, @ 3.50; 5 doz. IT. II. Tubs, @ 8.75; 8 doz. C. K. Trays, 
 
 @ 4.50; 10 doz. (jts. University Ink, @ 6.00, less 12^ f^'; 5 doz. C. C. Lines, @ 2.00; 10 doz. 
 
 B. Baskets, @ 7.50; 200 Grain Bags, @ 20 c. ea. ; 1^ doz. No. 14 F. Dusters, @ 30.00. less 
 
 25 and 10 j^; 25 Nests F. Pails, @ 1.25; 5 doz. W. V. Baskets, @ 9.00. 
 Your acceptance due to-day, charged in at College Bank. 
 
 Receive Mdse. from Hopkins & Weeks }>er Invoice Oct. 20th, on 60 days, 1863.66. 
 Receive of Cowles & llutchings their check on Exchange liank, 200.00, for ])ayment on their note 
 
 of 600.00, due to-day. They renew the balance by giving a note at 30 days, with interest. 
 
 Note.— Credit Bills Receivable in Cash Book. 200. J:nter the new note of 400.00 in Bill Book, and opposite old 
 note in Bill Book state how it was disposed of. 
 
 Memorandum: Procure from the teacher letter sheet and envelope, and write to Tilden & Breme, 
 Oswego, ordering the following Mdse.: 25 doz. No. 1 O. C. Trays, 25 doz. li. Baskets, 15 
 doz. Barrel Covers, 20 doz. H. H. Tubs, 20 doz. Com. II. Tubs, 5 doz. Novelty C. Wringers, 
 50 doz. "Gem" Pai)er Pails, 30 doz. *' Queen" Paper Pails. {See Business Forms on last 
 pages for illustrations.) 
 
 27. Receive from F. Goodspeed cash for Invoice Oct. 14, 91.25, less 2 j^. 
 
 W. & E. Morgan present Lorrain Mfg. Co.'s sight draft on you for 100.00, which you pass to the 
 
 credit of their account. 
 Sales for cash, per drawer, 227.09. 
 Sell Ralph Richardson 5 doz. N. I). Z. Wasliboards, @ 2.50; 10 doz. B. Brooms, ((^ 2.00; 5 doz. 
 
 C. H. Tubs, @ 7.42; 1^ doz. No. 12 F. Dusters, (^ 2f;.50, less 30 aiul 5r^; 1 doz. Novelty C. 
 
 Wringers, @ 45.00; 50 Grain Bags, @ 22c. 
 Give S. W. Siddons your check on College liank, to a})ply on °lc, 100.00. 
 Get W. & E. Morgan's note of 500.00, received 22d inst., discounted at College Bank; proceeds 
 
 placed to your credit. {C. B., Ck. B. and B. B.) 
 
 Note.— Debit Interest Account for the discount on Ihealmve note to avoid entering it in the discount column, which 
 is intended for the discount oji prepayment of Invoices of Mdse, only. 
 
 Pay Gas Bill to date in cash, 5.40. 
 
 Receive Mdse. from Tilden & Breme })er Invoice Oct. 20, on 60 days, 1248.17. 
 
 28. Receive from F. E. Warren a draft on New York for Invoice Oct. 25, 398.87, less i^. 
 Sales for cash, per drawer, 74.25. 
 
 28. Deposit cash in College Bank, 1000.00. 
 
 Remit F. M. Reed a draft on Boston, which you will purchase at College Bank by check, at \% 
 
 exchange, in payment of Invoice Oct. 14, 1240.94, less 2^ fc. 
 Receive of Cowles & llutchings to apply on their note of Oct. 25, cash, 200.00. 
 
 29. 
 
 30. 
 
 31. 
 
 Note.— Draw up this note on foolscap paper, and make the proper indorsement, 
 for illustration of note with indorsement. 
 
 See Business Forms on last pages 
 
 Your acceptancte due to-dav, charged in at College Bank. 
 
 Sell Ilackett & Brisbain, 4 gro. D. S. Polish, @ 6.00; 3 doz. U. Ink, @ 6.00, less 10^; 12 doz. 
 
 R. S. Dressing, (Jt, 1.00. 
 Receive of Ralph Richardson cash for balance due on Invoices of Oct. 18 and Oct. 27, 223.03, 
 
 less 2 i. 
 Sales for cash, per drawer, 319.32. 
 Deposit cash in College Bank, 450.00. 
 Sell Larkin «& Sprong 10 doz. Paper Pails, @ 5.50; 360 lbs. |-inch Manilla Rope, @ 16c.; 10 
 
 doz. Potato Mashers, @ 75c.; 5 Oil Tanks, @ 16.00, less 25^; 10 doz. Barrel Covers,® 
 
 5.00; 5 doz. Bush. Baskets, (§ 7.50; 3 M Crown Butter Dishes, @ 6.00, less 20^; 4 doz. No. 
 
 10 F. Dusters, @ 20.00, less 25 and 10 and 5 i. 
 Remit Tilden & Breme a draft on New York, which you will purchase at College Bank by check, 
 
 at i^ exchange, in payment of Invoices Oct. 17 and Oct. 26, 1746.57, less3|^. 
 College Bank has collected Eaton's note due yesterday, and placed same to your credit less cost of 
 
 collection, 25c. 
 Receive of Cowles & Hutchings, to balance <^c, cash 856.14 and their note endorsed by D. W. 
 
 Powers, at 4 months, paya])le at Exchange Bank, with interest, 1000.00. 
 Receive cash of Ilackett & Brisbain for Invoice Oct. 17, 218.75, less Mdse. returned for credit 
 
 Oct. 23, 26.00, and 2 ^ of balance. 
 Receive cash of W. k E. Morgan, to balance «(■, 614.66. 
 Sell Wm. Gardner, 30 days, 3 doz. Curry Combs, @ 1.50; 4 doz. H. Brushes, @ 6.00; 2 doz. 
 
 MaudS. Halters, @ 7.50. 
 Pay clerks' salaries in full to date, 85.50. 
 Deposit cash in College Bank, 2000.00. 
 Make an entry for the interest ui)on the following transactions as provided for in the copartnership 
 
 agreement: H. G. Fuller drew for private use, Oct. 16, 300.00. Student drew for private 
 
 use, Oct. 12, 500.00. II. G. Fuller made an additional investment, Oct. 18, 1000.00. (/.) 
 
 Note — *« Debit each partner interest upon amounts drawn out by him from the time of such withdrawal to the time 
 of settlement, and credit him interest upon amounts invested by him from the time of such investment to the 
 time of settlement. « It is unnecessary to compute interest upon the original investments when they are equal, 
 as in this case, because the interest balance to each partner's account would not be affected thereby. 
 
 INVENTORIES, OCTOBER 31, 188- 
 
 MERCHANDISE— per Inventory Book, 
 EXPENSE— Office Safe, 
 
 7968 33 
 200 00 
 
 You may now prove the cash and balance the Cash Book. In Safe, 267.46; In Bank, 6131.00. 
 The footings of the columns on the debit side of the Cash Book should be as follows: Sundries, 
 8432.39; Mdse, 944.80; Bills Receivable, 1285.50; Discount, 95.56. On the credit side. Sundries, 
 4240.95; Expense, 98.96; Discount, 19.8S. 
 
 "It is customary, in business, to prove the cash every day, ^'^not necessarily closing the Cash Book, 
 as the columns may be footed in pencil, and the proof taken upon a separate sheet. 
 
 After posting take a trial balance and make a statement giving the results of tlie business, as 
 shown in the form on page 135, after which close and rule up all the Ledger accounts. Before closing 
 the Mdse. account close Discount account into it. Discount is only kept here as a separate account to 
 enable us to determine the amount of allowances upon invoices prepaid. If this information were not 
 desired, Mdse. might be debited and credited for the allowances at the time of making them. 
 

 I- 
 
 i I 
 
 i 
 
 142 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 QUESTIONS FOR REVIEW. 
 
 Page 126. — 'What is this set desigiu'd to ilhistratc? MVhat advantages are derived from the 
 methods ilhistrated, and how obtained? 'For wiiat i)uri)ose might it be necessary to change the forms 
 of books as liere used, and liow could the change be made? 
 
 Page 127. — *\Vliat is the peculiar feature of the Journal as used in this set? * In what way is 
 the combination of the two books effected? "Explain the use of the extra column. MIow is 
 it posted? MIow are the items in the Sundries column posted? MVhat disposition is made of the 
 Invoices? "^" If ])asted in an Invoice Book, how may this book be used? "Explain the use of the 
 Sales book. " What disi>osit ion is made of the net amount of each sale? "What course is pursued 
 with the last column? 'MIow i)osted? 'MIow may an additional advantage be secured from the 
 Sales Book? '''Explain the use of the Check Book. 'Ms it necessary to open a bank account in the 
 Ledger? "What entry is made for a deposit? ^Ilow does this debit the bank? "What entry is 
 made when a check is drawn? " How does this credit tlie bank? " Is an entry to be made in the Cash 
 Book when cash is deposited? ^* Why not? " W'hvn checks are drawn upon the bank, in what other 
 book beside the Check Book is the entry made? Why? "Explain the use of the Cash Book. " How 
 arranged? "'For what purpose? "How are the special columns posted? * How are the items in the 
 Sundries columns }K)sted? " How is the cash jjosted? " How posted if the balance of cash is less than 
 at the last posting? ** How if more? "How is the total debit of cash found? '^The total credit? 
 *• What will the difference show? " How is the cash on hand found? =» How is the Bill Book to be 
 kept in this set? »»Can it be kept as a principal book? Why is it not usually so kept? ♦" What name is 
 given to the trial balance used in this set? *' What advantage is derived from its use? "Describe a 
 convenient form for a Ledger Index. *^ Wlien the number of accounts is large, what form of Index U 
 generally used? 
 
 Page 1-41. — "How frequently is the cash i)roved in business? ♦* How may it be ])roved without 
 closing the Cash Book? *MIow is the interest account between the partners ailjusted? *'When the 
 original investments are e(pial wiiy is it unnecessary to compute interest ujwn them? 
 
 Note. — Should the Uwher consider it desirable the stJident may hi; reciuired to draw up all of the papers and forms 
 in the foregoing memoranda. In the absence of an actual business department especially, it would be Ik'sI to make such 
 a requirement. 
 
 Excellent drill for the student could also t>e secured by requiring him to continue the foregoing business for ten or 
 twenty days longer, originating fiisojrn tramaHioiiH. if this plan were pursued, an amount would have to be assumed for a 
 Mdse. inventory at the time of closing the books. 
 
 RETAILER'S BOOKS, 
 
 (DOUBLE ENTRY,) 
 
 DESIGNED FOR RETAIL GROCERIES, MARKETS, SHOPS, ETC. 
 
 ' The following arrangement of books and records is designed to illustrate a popular system of 
 book-keeping for a retail business. While it does not strictly conform to the principles of Doable 
 Entry book-keeping, inasmuch as the Merchandise account is not made to show all of the purchases 
 and sales, yet the final results are just as accurate, and are obtained at a great saving of time and labor. 
 
 ' The books required are an Order Book, Cash Book, Journal, Personal Ledger and Ledger. The 
 Order Book and Personal Ledger are used as auxiliary books; the others as principal. 
 
 The ' Order Book is a cheap, coarse book, made usually with a page about twelve inches long and 
 five inches wide, and lies upon the counter. In it are entered the orders as they are received during 
 the day. * Goods to be delivered, that are paid for when ordered, are entered regularly in the Order 
 Book, and the word *' Paid " written across the order. * If not paid, the items are entered in the 
 purchaser's account in the Personal Ledger at the close of the day's business. 
 
 ^ The Cash Book does not differ from the form already illustrated, and is used as a principal hook. 
 It need not be closed oftener than once a week, or once a month The first column on the debit sid*} 
 is devoted to cash sales of Mdse. 
 
 ^ The Journal contains all entries excepting those made in the Cash Book. * The Journal may be 
 dispensed with by using the C^sh Book as illustrated in the Cash Method, on pages 110-llL 
 
 * The Personal Ledger contains accounts with customers only, and is entirely an auxiliary book. 
 '" Sales on account are regarded as merchandise on hand until the accounts are paid, at which time 
 Merchandise is credited with such payments. " The ordinary Journal ruling is considered i)referablc 
 for a Personal Ledger of this character, as it affords more room for items. " All statements may be 
 made out from the Personal Ledger without referring to any other book. 
 
 '■'' The Ledger is used as in any other business. 
 
 The student will be expected to post and take a Trial Balance at the end of the first week, and 
 close the Ledger at the end of the second week. "The accounts in the Personal Ledger will have to be 
 included in the inventory in closing the Merchandise account. " Xo Bank account will be kept in 
 the Ledger. "The Cash Book will exhibit all cash in bank and on hand, as illustrated ir the 
 Wholesale Business on page 13L " You will credit Cash when a check is given, and make no entry 
 for deposits, except in the Check Book. 
 
 148 
 
i 
 
 
 M 
 
 ■Hi 
 
 144 
 
 TilEOIiETlCAL AND PRACTICAL H()()KKP:EPING. 
 
 .^^S'U^r 
 
 -c^y 
 
 /rr- 
 
 0^ 
 
 188 
 Kov. 
 
 188- 
 
 Nov. 
 
 / 
 
 -2- 
 
 J' 
 
 /.^'tif^ 
 
 
 r^-/-^/ 
 
 
 /» 
 
 
 
 ^^'^'^z^e'^ty 
 
 js. a 
 
 'z^i^ •'■^ J!. 
 
 
 r 
 
 
 7 
 
 / / 
 
 /Jt 
 
 /a 
 
 
 &^^ 
 
 
 JOHN WILSON, 119 Fourth Street. 
 
 '} ' ^ 
 
 4 
 
 6 
 
 8 
 12 
 
 10 ll>s. A. C. Siiirar. '«; 4.} C*. Fish, 36 
 2 J. Coffee, 'O; 5 gul. K. Oil, ts 
 
 Cash, 
 
 4 lbs. Crackers, ^\ 4 lui. Potutoes, 2<o 
 
 1 bag Salt, 20; 3 Kaisiiis, y« 
 
 1 box Starch, ^\ 2 cans Oysters, «o 
 
 1 bbl. Apples, 200; 1 cake Chocolate, :« 
 
 Cash, 
 
 2 bas. Peaches, 2<0; 10 B. Sugar, »f->; 1 j.k. S. Potatoes, ♦» 
 
 W. L. WOOD, 26 State Street. 
 
 2 
 4 
 
 5 
 
 S 
 11 
 
 13 
 
 3 doz. Eggs, «0; 10 lbs. B. Sugar, ^ 
 
 5 bu. E. \\. Potatoes, 30"; 2 W. l»ails ^o 
 
 10 lbs. Butter, 2^0; 5 Chi.k,.i,, «0; lOA. C. Sugar, 95 
 
 10 G. Sugar, 105; 5 K. Oil, T5; 5 C. Fish, 40; 3 Ti,,; Crackers, 
 
 30 
 
 Cash. 
 
 4/ 
 
 / 
 
 / 
 
 7/ 
 
 f6 
 
 If *> 
 
 f 
 
 /J 
 
 1 box Soap, 415; j p],, S. Potatoes, 50. 3 ^oz. Eggs, 
 
 2 J. Coffee, 70j 1 ih. j. Tea, so; 1 x. P. Flour, 8 7^ 
 
 Cash, 
 
 60 
 
 cT 
 
 
 V 
 
 / <? 
 
 
 oTi/ 
 
 I 
 
 31 
 
 
 1 
 
 45 
 
 
 2 
 
 76 
 
 80 
 
 2 
 
 
 
 
 56 
 
 
 1 
 
 
 
 
 35 
 
 
 e 
 
 71 
 
 5 
 
 3 
 
 95 
 
 ( 
 1 
 
 
 70 
 
 1 
 
 50 
 
 
 3 
 
 40 
 
 
 4 
 
 05 
 
 
 •> 
 
 ■V 
 
 50 
 
 
 1 1 
 
 45 
 
 10 
 
 5 
 
 25 
 
 
 9 
 
 95 
 
 
 aa 
 
 61 
 
 10 
 
 »0 
 
 rilEOKETlCAL AND PRACTICAL BOOK-KEEPING. 
 
 ORDER BOOK. 
 
 NOVEMBER 1. 188-. 
 
 ^rrs. J. 11. Smith, 18 Brown St. 
 1 lb. Jap. Tea, -50 
 
 10 " Gran. Sugar, 10^, 1.05 
 
 1 gal. N. 0. Molasses, .45 
 
 W. L. AVood, 26 State St. 
 
 3 doz. Eggs, 20, .60 
 
 10 lbs. B. Sugar, 9, .90 
 
 5 bu. E. R. Potatoes, 60, 3.00 
 
 2 AV. Pails, 20, .40 
 
 John Wilson, 119 Fourth St. 
 
 10 lbs. A. V. Sugar, 9^, .95 
 
 4^ '* C. Fish, 8, .36 
 
 2 '* J. Coffee, 35, .70 
 
 5 gal. K. Oil, 15, .75 
 
 A. C. Davis, 126 Tremont St. 
 15 lbs. G. Sugar, lOi, 1.58 
 
 10 " B. '' 9, -'^0 
 
 5 bu. Potatoes, 60, 3. 
 
 5 lbs. L. liaisius, 13, .65 
 
 B. J. Brown, 38 St. Paul St. 
 
 1 lb. Y. H. Tea, .48 
 
 15 lbs. A. C. Sugar, 9^, 1.43 
 
 5 ** C. Fish, 8, .40 
 
 1 gal. S. II. Syrup, .68 
 
 F. G. Ransom, 98 Spring St. 
 10 lbs. A. C. Sugar, 9^, .95 
 5 bu. Potatoes, 60, 3. 
 
 1 lb. Jap. Tea, .50 
 
 2 lbs. J. Coffee, 35, . 70 
 
 NOVEMBER 2, 188-. 
 
 W. L. Wood, 26 State St. 
 10 lbs. Butter, 25, 
 
 5 •* Chicken, 12, 
 
 10 *' A. C. Sugar, 
 
 9i. 
 
 2.50 
 .60 
 .95 
 
 ^[rs. J. II. Smith, 18 Brown St. 
 5 bu. Potatoes, 60, 3. 
 
 3 doz. Eggs, 18, .54 
 
 5 lbs. Butter, 25, 1.25 
 
 D. Lucas, 10 Jones St. 
 10 lbs. B. Sugar, 9, 
 
 5 bu. Potatoes, 60, 
 
 10 lbs. Butter, 25, 
 
 .90 
 3. 
 2.50 
 
 A. C. Davis, 126 Tremont St. 
 10 ll)s. Butter, 25, 2.50 
 
 10 '^ A. C. Sugar, 9|^, .95 
 1 '' Jap. Tea, .50 
 
 
 NOVEMBER 
 
 3, 188-. 
 
 
 F. 
 
 G. Ransom, 1 
 
 >8 Spring 
 
 St. 
 
 10 11)S. 
 
 Butter, 
 
 25, 
 
 2.50 
 
 5 '' 
 
 Chicken, 
 
 12, 
 
 .60 
 
 Igal 
 
 . K. Oil, 
 
 
 .15 
 
 6 
 
 IH) 
 
 76 
 
 13 
 
 99 
 
 15 
 
 05 
 
 6 
 
 r9 
 
 40 
 
 95 
 
 25 
 
 ORDER BOOK. 
 
 NOVEMBER 3, 188- 
 
 Mrs. J. H. Smith, 18 Brown St. 
 5i lbs. Chicken, 12, .66 
 
 10 " B. Sugar, 9, .90 
 
 5 " Mackerel, 8, .40 
 
 D. Lucas, 10 Jones St. 
 6 lbs. Chicken, 12, 
 
 5 doz. Eggs, 18, 
 
 2 Brooms, 26, 
 
 2 W. Pails, «5, 
 
 .72 
 .90 
 .50 
 .50 
 
 B. J. Brown, 38 St. Paul St. 
 1 Broom, '^^ 
 
 6 lbs. Chicken, 12, .72 
 
 10 '' Gran. Sugar, 10^, 1.05 
 
 NOVEMBER 4, 188-. 
 
 W. L. Wood, 26 State St. 
 
 10 lbs. Gran. Sugar, 10^, 
 
 5 gals. K. Oil, 15, 
 
 5 lbs. C. Fish, 8, 
 
 3 " Crackers, 10, 
 
 1.05 
 .75 
 .40 
 .30 
 
 John Wilson, 119 Fourth St. 
 
 4 lbs. Crackers, 10, 
 
 4 bu. Potatoes, 60, 
 1 bag Salt, 10 lbs., 
 
 3 lbs. Raisins, 12, 
 
 .40 
 2.40 
 
 .36 
 
 A. C. Davis, 126 Tremont St. 
 1 box Pei)per, .25 
 
 1 Ex. Lemon, -20 
 
 5K. Oil, 15, .75 
 
 3 J lbs. Chicken, 12, .42 
 
 D. Lucas, 10 Jones St. 
 3 lbs. Crackers, 10, 
 
 2 " J. Coffee, 35, 
 
 2 gals. K. Oil, 15. 
 
 10 lbs. G. Sugar, 
 
 lOi, 
 
 .30 
 
 .70 
 
 .30 
 
 1.05 
 
 NOVEMBER 5. 188-. 
 Mrs. J. IT. Smith, 18 Brown St 
 
 3 lbs. Crackers, 
 1 Lem. Extract, 
 
 1 box Pei)per, 
 
 2 gals. K. Oil, 
 
 3 lbs. C. Fish, 
 
 10 " A. C. Sugar, 
 
 10, 
 
 15, 
 
 8, 
 10, 
 
 30 
 .20 
 .25 
 ..30 
 .24 
 
 B. J. Brown, 38 St. Paul St. 
 5 bu. Potatoes, 60, 3. 
 
 3 lbs. J. C(»ffee, 35, 1.05 
 
 5 " Butter, 25, 1.25 
 
 F. 
 
 G. Ransom, 
 
 98 
 
 Spring 
 
 St. 
 
 1 box Pepi)er, 
 
 
 
 .25 
 
 10 lbs. 
 
 G. Sugar, 
 
 
 lOi, 
 
 1.05 
 
 2 Brooms, 
 
 
 25, 
 
 .50 
 
 2 W. 
 
 Pails, 
 
 
 20, 
 
 .40 
 
 145 
 
 96 
 
 62 
 
 2 02 
 
 50 
 
 3 
 
 36 
 
 62 
 
 2 35 
 
 29 
 
 30 
 
 i 2 20 
 
 -tjjp'i'^i'' ""**'*"''**' 
 
 mmmmmSm 
 
146 
 
 Nov, 
 
 . m\ 
 
 ^ 
 
 ! 
 
 Hi 
 
 THEORETICAL AND PRACTICAL BOOK KEEPING 
 
 CASH BOOK. 
 
 NOVEMBER. 188-. 
 
 1 
 
 S( iident. 
 
 •? 
 
 Mdst'. 
 
 2 
 
 a 
 
 3 
 
 i( 
 
 4 
 
 a 
 
 5 
 
 n 
 
 6 
 
 it 
 
 Nov. I 7 Balance, 
 
 Mdse. 
 
 IVIdse. 
 
 Student, 
 
 Mdse. 
 
 Mdse. 
 
 } 
 
 Student, 
 
 Investment, 
 Cash sales, 
 
 « 
 
 ft 
 *t 
 
 « 
 
 JOURNAL 
 
 NOVEMBER 1, 188- 
 
 To n. A. lirt'wster, 
 Invoice due in 10 davs. 
 
 To Geo. 0. Buell & Co. 
 Invoice due in 30 days. 
 
 To Afdse. 
 Trivate use. 
 
 5. 
 
 To Geo. C. Bu(>ll & Co. 
 Invoice due in 30 davs. 
 
 To ir. A. Brewster* Co. 
 Invoice due in 10 days. 
 
 6. 
 
 To Mdse. 
 Private use. 
 
 28 
 27 
 48 
 J>2 
 
 o: 
 
 105 
 
 4.5 
 00 
 110 
 32 
 25 
 05 
 
 2500 
 
 395 
 
 77 
 
 2805 
 
 1623 
 
 77 
 
 75 
 
 1087 
 
 327 
 
 50 
 
 50 
 
 117 
 
 1087 
 
 50 
 
 
 50 
 
 50 
 
 50 
 
 G3 
 
 9 
 
 18 
 
 80 
 
 117 
 
 50 
 
 50 
 
 63 
 
 9 
 
 18 
 
 80 
 
 Nov. 
 
 1 
 
 3 
 4 
 
 5 
 
 >? 
 
 G 
 
 Expense, 
 
 It 
 
 Mdse. 
 
 C( 
 
 Student, 
 Mdise. 
 
 Expense, 
 %i 
 
 ti 
 
 Student, 
 Expense, 
 
 Balance, 
 
 TlLEOliJJrilCAL. AND PRACTICAL BOOK-KEEPING. 
 
 CASH BOOK. 
 
 NOVEMBER. 188-. 
 
 Iron Safe, 
 
 Horse, 125; Harness, 12, 
 
 Wagon, 
 
 P. Scales, 35; C. Scales, 26, 
 
 Oflice Books, 
 
 Invoice of S. P. & Co. 
 
 Vegetables, Poultry, etc. 
 
 Private use. 
 
 Vegetables, Poultry, etc. 
 
 Crackers, etc., J. Howe & Son. 
 
 Hay, Oats, etc. 
 
 Insurance, 
 
 Horseshoeing, 
 
 Stuart & Co., Carpenter AN ork, 
 
 Private use, 
 
 J. Dunn, 10; R. H. King, 12, 
 
 147 
 
 KM) 
 
 137 
 
 (U> 
 
 61 
 
 7 
 
 672 
 
 39 
 
 10 
 
 36 
 
 38 
 
 US 
 
 15 
 
 2 
 
 15 
 22 
 
 27 
 
 84 
 
 24 
 02 
 75 
 
 50 
 50 
 
 12 72 j 02 
 1623 75 
 
 2S05 
 
 < 4 
 
 MEMORANDA OF TRANSACTIONS. 
 
 [not to bb copied.] 
 
 NOVEMBER 1, 188-. 
 I have commcncod a Retail Grocery and Provision Business tl.is day, in the store ^o. =i'.>4 Ma.n 
 o^ X 1 1 .^^ T A T^mmI for five vears, at $600.00 per year. 
 '^'^^:lJi^^^^^^ - sho.„ by a' ,ass book contunung a credit to n,y account at 
 
 '"\t t::;r 5- thf «r!t a^Xef I'^nd upon the desk .e.oranda o, husiness transact.^ 
 
 " 't:;^i.tcd hi,,s for an Iron Safe, lOn.OO; Horse, 125.00. Harness, 12.00; ^Vagon «0.00; Flatfo. 
 Scale! sl'oo; Counter Scales, 20.00: and Office Books 7.00; J'-f-f'^.^'^^jtlcJ Cit^'. unountin, 
 
 Au invoice of Groceries, Wooden Ware, etc., purchased of Smith, 1 "'^'n^'^ , ', V \r R \ 
 » ,9^*0 The terms of purchase are 6 montlis, or 5 and ^ ofE f.,r cash. Paul hy check. (C. h) 
 '" ^.vo^rofcrrrJriir^rovisions, Canned Goods, etc., purOased of H. A. Brewster .t Co.. C „, 
 amountmg to 1087.50. Terms, 10 days. (J., page H6.) ..... 
 
 ■■' "r f:i;::::r;e; :rLnd on the order Book. >.. . «. Smi., is Brown St. in., .apan 
 Eggs, @ 20c., 10 II s. i^- ^"^'^T' ^ ' . , ,, n Fisi, (7h 8c.; 2 ll)s. Java Coffee, @ 3.>c.; o gals. 
 
 5 bu. Potatoes, (§ 60e.; 5 lbs. L. Raisins @ 13c. B. J. «^«^^' ^« ^ '(. ^^ cj^ ^ 
 
 ^i:';.L^%'.^r9 »"-"«« s;;,Mi:.vt~.-. • - -» -«• » 
 
 35c. (0. B. and P. L.,pf^es lU ("id ^■^■) 
 
 NoTE.-Give each account in the Personal Ledger a whole page. 
 Cash sales, shown by cash in drawer, 28.45. {C. B.) 
 
14b 
 
 THEOKFriCAL AND PKAOTICAL BOOKKEEPING. 
 
 NOVEMBER 2. 188-. 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 149 
 
 1 ! 
 
 At the close of tl.is (lav's })nsiness 1 find tl.e f(»llo^^•in,^r memoranda upon (he desk- 
 
 , ^/^"r"'^**^;f/'»'«^i^^i^'"^S Wooden Ware, etc., bought of Geo. C. Biiell & Co., at 30 davs, amountino 
 to 327. .)0. (./.) " *" 
 
 ^ 1 also find uixm the Order H<»ok the following: W. I. Wood, 2i\ State St., 10 lbs. Hutter, (^ 25c • 
 o 11,8. Chickens, (a) 12c.; 10 lbs. A. C. Sngar, ot Uh: Mrs. .1. H. Smith, IS Brown St., 5 l.u. Potatoes' 
 (a) GOc; 3 doz. Eggs, @ ISc; 5 lbs. Butter, @ 25c. 1). Lucas, 10 Jones St., 10 lbs. B. Sugar, @ Oc • 
 o bu l>(,tatoes, (a) 60c.; 10 lbs. Butter, @ 25e. A. C. Davis, 120 Tremont St., 10 lbs. Butter, @ 25c.; 
 10 lbs. A. C. Sugar, @ D^c; 1 11,. Jap. Tea, 50c. {O. B. and F. L.) 
 Cash sales for the day, 27. IM). [C. B.) 
 
 NOVEMBER 3, 188-. 
 At the close of business this day I find the following memoranda upon the desk: 
 Slip on a spindle showing that 1 have i)urchased Vegetables, Poultrv, Butter, etc., of a farmer by 
 check, to the amount of 39.84. {C. B.) 
 
 NoTK.— An entry should be made of this (runsuetion, as omitting it would cause a deficiency in cash Only such 
 mercliandise as is paitl for out of the drawer with the proceeds of current sales should be onutted. 
 
 The following orders are found upon the Order Book: F. G. Ransom, 98 Si)ring St., 10 lbs But- 
 ter, @ 25c.; 5 lbs. Chickens, @ 12c.; 1 gal. K. Oil, 15c. Mrs. J. H. Smith, 18 Brown St., 5^ lbs 
 Chickens, @ 12c.; 10 lbs. B. Sugar, @ 9e.; 5 lbs. Mackerel, @ 8c. I). Lucas, 10 Jones St., 6 lbs. 
 Chickens, @ 12c.; 5 doz. Eggs, @ 18c.; 2 Brooms, @ 25c.; 2 W. Pails, @ 25c. B. J. Brown, 38 
 St. Paul St., 1 Broom, 25c.; G lbs. Chickens, @ 12c.; 10 lbs. G. Sugar, @ lO^c. {0. B. and P. L.) 
 
 The cash sales for the day have been 48.90, which includes amounts paid in on account by Mrs. 
 J. II. Smith, 5.00; John Wilson, to balance % 2.76; and A. C. Davis, 5.00. (C. B. and P. L.) 
 
 Note.— Foot Wilson's account and rule it up. See Mrs. J. H. Smith's account, pas,'e 144. 
 
 I have approi)riated 10.00 cash, and goods from the store amounting to 6.50, to my private use. 
 (C. B. and J.) 
 
 NOVEMBER 4, 188-. 
 
 The following memoranda was found ui)()n the desk at the close of this dav: A slip showing that 
 I have bought Vegetables, Poultry, liutter, etc., of farmers, bv checks, amountiilg to 30.24. An invoice 
 of Crackers from J. Howe & Son, 38.92; paid by check. A bill of 28.75 for ilav, Oats and Straw, 
 for horse; i)aid by check. {C. B.) 
 
 I find the following upon the^Order Book: W. L. Wood, 26 State St., 10 lbs. G. Sugar, @ lO^c; 
 
 5 gals. K. Oil, @ 15c.; 5 lbs. C. Fish, @ 8c.; 3 lbs. Crackers, @ lOc. John Wilson, 119 Fourth St., 
 4 ll)s. Crackers, @ lOc; 4 bu. Potatoes, @ 60c.; 1 bag Salt, 10 lbs., 20c.; 3 lbs. Kaisins, @ 12c. 
 A. 0. Davis, 126 Tremont St., 1 box Pepper, 25c.; 1 Lemon Ext., 20c.; 5 gals. K. Oil, @ 15c.; 3^ 
 lbs. Chicken, @ 12c. D. Lucas, 10 Jones St., 3 lbs. Crackers, @ 10c. ; 2 lbs. J. Coffee, @ 35c.; 2 gals. 
 K. Oil, @ 15c.; 10 lbs. G. Sugar, @ lO^c. (O. B. and P. L.) 
 
 Received i)ayments from the following customers on «/f, shown by slips on a spindle: D. Lucas, 
 10.00; F. G. Ransom, in full, 8.40 (rule up his account); A. C. Davis, 6. 00. 
 
 Cash sales for the day, 07.92, which, added to payments on % make the entire credit to Mdse. 
 for the day, 92.32. (C. B. and P. L.) 
 
 NOVEMBER 5, 188- 
 
 At the close of this day I find the following memoranda on the desk: Invoice of Groceries, from 
 Geo. C. Biiell & Co., 117.50; terms, 30 days. J.) Invoice of (iroceries, from II. A. Brewster & (^o., 
 63.18; terms, 10 days. {J.) A Policy of Insurance on stock and fixtures of 1500.00; Premium, 1^, 
 l)aid by check. [C. B.) Receipted bill for Shoeing Horse, 2.50. {(\ B.) 
 
 The following is found on the Order Book: Mrs. J. II. Smith, 18 Brown St., 3 lbs. Crackers, 
 @ 10c. ; 1 Lem. Ext., 20c.; 1 pkg. Pei)i)er, 25c.; 2 gals. K. Oil, (a^ 15c.; 3 lbs. C. Fish, @ 8c.; 10 lbs. 
 A. C. Sugar, @ 10c. B. J. Br<.wn, 38 St. Paul St., 5 bu. Potatoes, @ COe. ; 3 lbs. J. Coffee, m 35c.; 
 5 lbs. Butter, @ 25c. F. G. Ransom, 98 Spring St., 1 pkg. Pepper, 25c.; 10 lbs. Grau. Sugar, @ 
 
 lOic; 2 Brooms, @ 25c.; 2 W. Pails, @ 20c. P. J. Warner, 19 Wood St 1 lb ^ip. Tea fk-.; 10 
 lbs G. Sugar, @ lO^c; 1 gal. K. Oil, 15c.; 5 lbs. Crackers, @ 10c. ; 5 bu. Potatoes, @ 'c. {O. 
 
 '^' The^'f<ilowing customers paid on «(.: Mrs. J. XL Smith, 5.00, and W. L. Wood, U'.OO Cash 
 sales, per drawer, 77.25, with payments on «fc added make entire credit to Mdse. 92.2o. {( . B. and 
 P. L.) 
 
 NOVEMBER 6, 188-. 
 
 The following memoranda is found upon the desk at the close of this day's business: Receipted 
 bill .)f Stuart & Co., for carpenter work on counters and bins, of 20.50; paid by cheek. {( B) 
 
 Slips in the cash drawer showing that I have appropriated 15.00 cash and 9.80 in goods from the 
 store, and that I have paid J. Dunn and R. H. King, clerks, 10.00 and 12.00 respectively, for s^daries 
 
 for week. {C. B. and J.) 
 
 Cash sales, shown by cash and slips in drawer, 105.95. ..-l o . i o^ i 
 
 I find the following unpaid orders upon the Order Book : John Wilson, 119 4th St. , 1 box Starch, 
 6 lbs., 40c.; 2 cans Ovsters, @ 30c.; 1 bbl. Apples, 2.00; 1 cake Chocolate, 35c. D I^^^^^s 10 Jones 
 St., i lb. Pepper, @ 30c., 15c.; 1 pk. Sweet Potatoes, 50c.; 5^ lbs. C. Fish, («^ 8c. 1 Lem. ^;^t 2(»c.: 
 1 10:ib. bag Salt, 20c. L. J. Sevmour, 19 Beach St., 3 doz. Eggs, @ 18c.; 2 cans Oysters, @ SCk-.; 4 
 lbs. Crackers, @ 10c. ; 2 bu. Potatoes, @ 60c. F. Woodbury, 10 Locust St 2 Brooms (??^ 2oc.; 3 
 bu. Potatoes, @ 60c.; 5i lbs. Chicken, @ 12c.; 4 lbs. Crackers, @ 10c. ; 1 bbl. Apples, 2.00. {(K />. 
 
 and P. L. ) 
 
 NOTE.-YOU will now close the Cash Book, post andtake a Trial Balance. Give ea<h account oncfourth of a ^y^ 
 space. Balance of cash, as shown by ('jush Book, 1623.75. 
 
 NOVEMBER 8, 188-. 
 The following memoranda appear upon the desk at the close of this day: Receipted bill f<.r a ton 
 of Coal for use of store, 5.75; paid by cheek. Bill of W. Moran for Stove, Coal Hod, ^^-}^-^2 
 % 41.50. Invoice of goods bought of II. A. Brewster & C.,., at 10 days, amounting to 21 ..oO. llor^ 
 
 bought for use of store, by check, 85.00. . , c iw . . 
 
 The folh.wing appear upon the Order Book: Mrs. J. II. Smith, 18 Brown St., 1 pk. N. 1 otatoe^. 
 50c.; 1 10-lb. bag Salt, 20c.; 1 W. Tub, 80c.; 1 bbl. Apples, 2.00. W. L. Wo<m1, 26 State St. 1 box 
 Soap, 4.15; 1 pk. S. Potatoes, 50c.; 3 d<.z. Eggs, @ 20e. B. J. Brown 38 St. P.u. St., o Ibs^L. 
 Raisins, @ 13c. ; 1 bbl. Apples, 2.00; 1 lb. Jap. Tea, 50c. ; 1 Umi. Ext, 20c. A. C . Davis, 12., Tre- 
 mont St., 1 W. Tub, 80e.; 10 lbs. A. C. Sugar, @ 10c. , „ . ., t i wi . r ,„,. 
 
 The following amounts were paid on o/c. Mrs. J. II. Smith, m full, 4...4; J.»hn A\ ilson. .».0o. 
 B. J. Brown, 10.00. Cash sales, including payments on % 93.82. 
 
 NOVEMBER 9. 188- 
 Paid for new Harness by check, 24.00. Paid cash for building Coal Bin, 2.00, and f<.r Luml>er for 
 
 same, 1.75. ,, t^ n ^ n i i o . 
 
 Order Book: D. Lucas, 10 Jones St., 3 doz. Eggs, @ 20c.; 10 lbs. B Sugar, @ 9c. ; 1 b<,x Soap. 
 4.15; 2 lbs. L. Raisins, @ 12c. P. J. Warner, 19 Wood St., 1 pk. S. Potatoes 50c.; 1 ^^ . Tub 8o<.. ; 
 10 lbs. B Sugar. @ 9e. ; 6 lbs. Chickens, @ 12c.; 1 bbl. Apples, 2.00. L. J. ^^ey.nour 19 ^^^^f^^^- 
 1 bbl X C Flour, 8.75; 1 pk. S. Potatoes, 50c.; 1 box Soap, 4.15. F. A\ oodbury, 10 Lm-ust St.. 3 
 lbs L Raisins, @ 13c.; 1 W. Tub., 80e.; 1 gal. N. O. Molasses, 45c.; 10 lbs. (Jran. Sugar, @ loU-. 
 Mrs. J. H. Smith, IS Brown St., 10 lbs. G. Sugar, @ 10k'.; 4 lbs. Chicken, @ 12c.; 2 cans Oysters, 
 
 @ 30e. 
 
 Cash Sales, 93.18. 
 
 NOVEMBER, 10, 188-. 
 
 Drew 15.00 cash, for private use, and api)ropriated 14.60 in goods, 
 
 Order Book: F. G. Ransom, 98 Spring St., 1 box Soap, 4.15; 2 lbs. Coffee. @ 32c.; 1 \\ . lub, 
 80c • P J Warner, 19 Wood St., 1 Lem. Ext., 20c.; 10 lbs. A. C. Sugar. @ lOc; 1 gal. N. O. Molasses. 
 4oc'- 1 bbl. N. P. Flour, 8.75. B. J. Brown, 28 St. Paul St., 1 bbl. N. P. Flour, 8.75; 2 ^^ . Pails. 
 @ 20; 1 Basket, 18c. L. J. Seymour, 19 Beach St., 2 cans Oysters, @ 30c.; 1 Lem. Ext., 20c.; 4^ 
 :os. Chickens, @ 12e.; 10 lbs. G. Sugar, @ lO^c. ^ 
 
 Payments on account, L. J. Seymour. 15.00; F. Woodbury, m full, 8.0o; D.Lucas, ..00; 1. J. 
 Warner, 20.00. Cash sales, including ])ayments on account, 136.27. 
 
\l 
 
 150 
 
 THEORETICAL AND PRACTICAL BOOK KEEPtNO. 
 
 
 1 il 
 
 i : 
 
 II a 
 
 t 
 
 
 ? 
 
 
 !: 
 
 1 i k\ 
 
 II 
 
 |. 
 
 i 
 
 i II 
 
 V' \ 
 
 NOVEMBER 11. 188-. 
 I find upon the desk the following: A receipted .tutenient from II. A. Brewster & Co., of Invoice 
 ot 1st iiist., paid by clit'ck, 1087.50. 
 
 W V^r(^"lt r )^''""""">' ^« Locust St.. 1 1,1,1. N. p. Fl„„r, 8.7,5; 1 ,,k. S. Potatoea, 50c., 2 
 
 Tul,; 1 «f '•> , '■ : P'"'"""' '° """'' *"*•• '" ""• "• ""»"■• @ -'i^- 3 do.. Eggs. @ 2(lc.; 2 V. 
 lute, @ «Uc.; 1 I'bL A,,,,!.s. 2.00. Mrs. J. II. Su.ith, 18 Broun Sr.. 1 bbl. N. P. pLur 8.75; 2 Ihs. 
 
 P pf r's® - ■ ^- *""'' '' ^'""'■' •''•• ' "'"• •'■ «""'^^«' ® ''"■■' 1 "'■ •'"!'• Tea, 50;.; 1 ibl. N. 
 
 -I « JTiour, o. I o, 
 
 on ac!r.'t™ ur23."'""""' "' "'' "'"*"' '"'""'^ ''' ^''^ '^'"'"'"- '•*'°- ^"''^'' ^'^^- '"^"'"''"S I'"™'-"'' 
 
 NOVEMBER, 12, 188- 
 Pa>d easl, for graining counters and bins, 11.75. Bougbt Fruit. Poultry, &e., by check, 32.15. 
 
 rone , • r : n""' '" ^^"'"' ^*- 1 ''•''• ''''l"'^-'' ^•''"= 1 •'"^ket Peaches, 1.50; 1„ lbs. 
 
 Conconl Crapes, @ 4c.; 10 lbs. (h-an. Sugar, @ lOjc. D. Lucus, 10 Jones St.. 10 bn. Potatoes. @ 
 
 n9'4th sl' i I : T\ T' * '■""' ^•'''''■'' ® ^"•'•' ** ""• C''"«keens, @ 12c. John Wilson, 
 t! .o^t;: ^ '"'f '" ^""'"''' ® ^•^"' '" "* ^- ^^''g'"-' @ 9^- 1 I'"'- S- Potatoes, 00c. A. C 
 Days 126 'l>em.,„t St., 5 lbs. Chickens, @ 12c.; 2 cans Oysters, @ 30e.; 2 lbs. Crackers, @ l-.-c; 2 
 baskets Peaches, @ 1.20; 2 bu. Potatoes, @ COc. ,-j. i.,« 
 
 Payment on account, Mrs. J. H. Smith. lO.Oo. Cash Sales, including i,ayment, 1G8.83 
 
 NOVEMBER 13, 188- 
 Paid cash for Horseshoeing, 3.50; clerks' sahiries fc.r week, 10.00 and 12.00; Letter Heads and 
 ilinvelopcs, 2.00; and Postage, ;30c. 
 
 111 ; ' f ' ^" ^'"''''"' '^^ •'''"•'"" ^^-' ^ ^^''- ^^^^^^r<A. @ Ck.. ; 2 cans Oysters, @ 30c • 
 
 1 bhl. Apples, 2.00; , lbs. L. Kaisins, @ Kic. John Mead, 103 Smith St., 1 bbl. N. P. Fhmr 8 75.' 
 4 bu. lotHtoes @ 00c. ; 1 can Oysters, 30c.; 2 lbs. Java Coffee, @ 30c.; 1 lb. Japan Tea, GOc: 1 box- 
 Soap, 4. lo; 1 bbl. Ajiples, 2.00. * ' » ^"-^ 
 
 ^;'^,";;';;*'^ ;;" ;^^'^'7'"^! a- t^- I^^^^is, lO.OO; W. L. wood, lO.OO; John Mead, 15.00; K J. Brown, 
 in lull, 4.j,K Lash sales, including ])ayments, l(;3.11l. 
 
 Having now conducted tiie busine.is two weeks, 1 have detern.i.u.l to close the accounts showin- 
 gams and losses, and ascertain tlie result of the venture. * 
 
 RESOURCE INVENTORIES. 
 
 NoTK -Since the ^ale.s of mm],a„,li.<o on arc-ount are not cmlitcd to Mdscv aorount when n.a.l... il i.s a.mureut 
 that tl,(. balance ot all the accounts in the Pers(,nal Ledger should ho inciudc.l in the Inventory 
 
 MERCHANDISE-in Store,. j^^^, y. 
 
 Personal Ledger:— F. Woodbury, 9.05; L. J. Seymour, 8.G8; 
 Mrs. J. H. Smith, 1.52; W. L. Wood, 6.G5; John Wilson, 5.r.0;'A. ('. Davis, 
 7.25; F. G. Ransom, G.17; D. Lucas, 10.09; P. J. Warner, 5.57; Joiiii Mead, 
 3.92, 
 
 C5 IG 
 
 170G 01 
 
 25 00 
 
 EXPENSE-2 Horses, 310.00; 1 AYag(m, 6G.00; P. Scales, 35.00; C. Scales, 20.00; 2 Har- 
 nesses, 30.00; Hay, Oats, &c., 20. 00,.... ,... 4^. ^^^ 
 
 LIABILITY INVENTORY. 
 
 EXPENSE— One-lialf Month's Rent unpaid, to be debited to Kxpense, 
 
 Net Gain, 100.30; Balance of Cash, 11-^8.57. 
 
 QUESTIONS FOR REVIEW. 
 
 •^'''f^ ^f.\~^^l' ''Y ''■"'^ "^* ''"''"'''' •' ^'^'^ •"•••»'>^'^^"»t"»t of ],ooks adai)ted? 'What books are 
 .In purchased MV len are the entries in the Order Bo<,k posted? 'Describe the Cash Book. 
 
 T ' i!^'' "\ '""^^""' ' ""^^' "^^^•>' ^^'' '^'""'"^^^ '*^' dispense.1 with? » Describe the Personal 
 
 Ledger. How are sales on account regarded? " Why is the ordinary Journal ruling p.vferable for 
 a 1 ersonal Ledger.^ -From what b<»ok will statemc-nts of customers' accounts be made? " How is the 
 Le<lger used? » How are the accounts in tlie Personal L 'dger treated in closing the Ledaer*'' » Why 
 .8 no Bank account in the Ledger necessary? ■« What will the Cash Book exhibit if no Bank account 
 IS kept.-- How are deposits and checks entered? 
 
 1 
 
 MANUFACTURING. 
 
 The following arrangement of books is similar in all essential particulars to that of one of the 
 most extensive furniture manufacturing tirms in America, and was selected on account of its exceeding 
 
 simplicity and completeness. • • 1 1 1 1 „ 
 
 ^The books required are a Sales Book, Cash Book, Journal and Ledger as principal books, and a 
 
 Hands Register.and Bill Book as auxiliaries. 
 
 In an extensive business a book called a Tickler is sometimes kept to record the maturity of bi Is 
 inirchased on time on acccmnt. This book, as ordinarily used, contains columns for the date of the 
 invoice the t)urchaser's name, his address, the terms, the day of maturity, the amount and remarks. 
 A numi)er of pages are set aside for each month of the year, and all bills falling due in any month are 
 entered in the space provided for that particular month. , , , , 
 
 ^ The Sales Book contains all sales on account, giving the articles, terms of sale and amounts. 
 » The purchasers are debited direct from the Sales Book with the amount of each sale, and Mdse. 
 account is credited with the daily, weekly or monthly footing. ,1 w, 
 
 * The Cash Book does not vary from the ordinary form, excepting that the debit column on the left 
 hand page is devoted to the cash sales of merchandise. « All - Regular " bills described m the Mem- 
 omnda, liave four months to run; but if the purchaser chooses to settle within thirty days he is 
 allowed a discount. ^Instead of crediting the purchaser's account in the Cash Book with the net 
 amount of cash received, and in the Journal with the discount, the purchaser is credited in the Cash 
 Book for the entire amount of the settlement and Discount account is debited for the discount, on the 
 <,ther side of the Cash Book. See Cash Book, pages 152-3. « Mdse. account is credited with the 
 footin- of the Mdse. column in the Cash Book, whenever the Cash Book is balanced. The cash 
 slH.ild be proved every day in pencil, but the Cash Book need not be balanced oftener than once each 
 
 week 
 
 >'« The Journal contains only entries that cinnot jiroperly be made in the other books. 
 
 " The Hands Register contains the weekly earnings ot, and payments to, all employees. A column 
 ,s ruled at the extreme left of the left hand page for the names of the hands, and the remamder of the 
 page is divided into as n.auy double money eolnmns. Dr. and Cr.. as the s /.e of the book wiU ,K.rm.t, 
 similar to the Continued Trial Balance. The employees' time is " made up' from the l-oremans 
 time-book, and the amount due eacli is entered in the first vacant Cr. Column opposite his name. 
 When thev have been paid, the amount each has received is placed in the first Dr. column opposite his 
 name, thus balancing the column. The footing of the H. R. is entered to Labor account on the right 
 
 hand side of the Cash Book. , . n • ., . u i *f .». -t 
 
 In this set the entire investment is credited to Stock, as explained in the note at .he bottom .1 
 
 page 44. 
 
 x51 
 
1*» 
 
 ill 
 
 r 1 
 
 4 
 
 t 
 
 152 
 
 THEORE-riOAL AND PRACTICAL BOOK KEEPING. 
 
 CASH BOOK. 
 
 DECEMBER. 188-. 
 
 DATE. 
 
 Dec. 
 
 Folio. 
 
 2 
 
 50 
 
 51 
 
 Stock, 
 
 ('. A. (Jmves, 
 
 Cash ill Safe, 
 liill to J. Smith, 01iani])or Suit, 
 " Mi-.s. Wood, Pat. Kocker, 
 " W. Hrowii, Parlor Suit, 
 
 liill to J3. Jones, Pat. Kocker, 
 
 Wal't H. Hack, 
 Bunch of Cane, 
 
 JiD8B. 
 
 3(i 
 
 144 
 
 20 a 
 
 22 
 
 28 
 
 80 
 tsa 8 
 
 BUNDKIE8. 
 
 211 14 
 
 143fi 
 
 85 
 
 JOURNAL. 
 
 DECEMBER 1, 188-. 
 
 Polio 
 
 Kesources of C. J. Huntington & Co. 
 
 To Stock, 
 Manufactory, 18000; Warehouse, 24000. 
 
 Sundries, 
 Real Estate, 
 
 Merchandise, 
 
 \it 
 
 Machinery and Tools, 
 Ottice Fixtures, 
 First National Hank, 
 iiills Receivable, 
 
 Manufactured, 47,500; Lumber, 28,000- 
 Hardware, 1400; Fabrics, etc., 1700: 
 Vaniishes, Oils, etc., .350. 
 
 Safe, Desks, etc. 
 On deposit, 
 
 Interest, 
 C. A. (i raves, 
 E. S. Smith, 
 E. S. Smith, 
 
 (t 
 
 J. L. Brown's note,with int. per B. B , 8(;5. 
 S. 11. Parker's " "■ '< j^^q 
 
 Vu'^'l'^^'^V " " 1744:50 
 
 J. ii. Andrews ** " « 428.15 
 
 On almve notes to date, 
 Bill of Nov. 3, R 
 
 " 5, 
 " 5, Net. 
 
 NOTK.-YOU will complete thi.s entry and continue the Jounml ..ntries as illnstruted alwle 
 
 42000 
 78950 
 
 0000 
 
 850 
 
 448(1 
 
 3«J87 
 
 148137 12 
 
 84 
 C5 
 
 30 
 
 1430 
 
 1153 
 
 217 
 
 70 
 85 
 K5 
 43 
 
 
 HANDS REGISTER. 
 
 Neir, 
 
 Brown, 
 
 Wilson, J. 
 
 Wilson, I). 
 
 Mever, 
 Johnson, 
 
 Lyn^Mii, 
 
 Mosier, 
 
 'I'hayer, 
 
 Pease, 
 
 Bartlett, Foreman, 
 
 Hyatt, Book-keeper, 
 
 Morey, Ass't Hook-keej>er, 
 
 Hackett, Salesman, 
 
 Pomeroy, 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. 
 
 CASH BOOK. 
 
 DECEMBER, 188-. 
 
 DATE. 
 
 Dec. 
 
 2 
 
 Folio. 
 
 53 
 54 
 
 Discount, 
 Mdse. 
 
 C. A. Graves, 5^ on 1436.85, 
 3500 ft. Wal't, (a) 70, 
 
 Note.— Continue the entries in the Cash Book as here illustrated. 
 
 SALES BOOK. 
 
 DECEMBER 1, 188- 
 
 Folio. 
 
 Holdridge & Gray, Medina. 
 1 No. 33 Wal't Bed, 
 
 1 No. 33 " Wood Top Dresser, 
 
 2 " Towel Backs, 
 
 2 No. 80 Chairs, 
 12 No. 40^ '' 
 12 No. 57 " 
 
 John IT. King, City. 
 
 G No. 3G Chairs, Maple, 
 
 Geo. C. Lyon, Fair Haven. 
 
 3 Best S. B. Beds, 
 3 High H. D. Cott, 
 
 3 Low do. 
 
 1 Imp. Congress Chair, 
 24 No. 72 Light Chair, 
 12 No. 72 Dark 
 
 4 No. 01 
 
 R. 
 
 << 
 
 i( 
 Net. 
 
 a 
 
 Net. 
 
 Net. 
 
 a 
 tt 
 
 it 
 (( 
 a 
 
 LEDGER. 
 
 C. A. GRAVES, Brockport. 
 
 188- 
 
 
 
 Nov. 
 
 3 
 
 J. 
 
 Dec. 
 
 3 
 
 S. B. 
 
 
 5? 
 
 k k 
 
 
 5 
 
 << 
 
 R. 
 
 Net. 
 
 
 
 
 188- 
 
 
 
 143G 
 
 85 
 
 Dec. 
 
 2 
 
 
 54 
 
 50 
 
 
 
 
 3 
 
 08 
 
 
 
 
 19 
 
 35 
 
 
 
 C. B., 5:^ otf, 
 
 E. S. SMITH, North Wilson. 
 
 188- 
 Nov. 
 
 5 
 
 5 
 
 
 
 
 
 188- 
 
 
 B. 
 
 
 1153 
 
 85 
 
 Dec. 
 
 4 
 
 Net. 
 
 
 217 
 
 43 
 
 
 
 C. B., 5^olT, 
 
 WARREN &. FRANCIS, Jamestown 
 
 SUNDRIES. 
 
 71 
 245 
 
 84 
 
 10 
 
 17 
 
 1 
 
 15 
 9 
 
 50 
 
 Gs! 
 92 1 
 
 6 
 
 30 
 
 
 05 
 
 1^ 
 
 20 
 
 2 
 
 85 
 
 11 
 
 
 5 
 
 50 
 
 1 
 
 92 
 
 188- 
 Nov. 
 Dec. 
 
 7 I J. 
 
 3 
 
 5 
 
 S. B. 
 
 
 Net. 
 R. 
 
 Net. 
 
 R. 
 
 Net, 
 
 
 
 
 188- 
 
 
 
 210 
 
 40 
 
 Dec. 
 
 « 
 
 
 12 
 
 50 
 
 
 
 
 13 
 
 50 
 
 
 
 
 48 
 
 
 
 
 
 34 
 
 
 
 
 C. B. 
 
 153 
 
 TOTAlu 
 
 29 
 24 
 
 15 
 92 
 
 10 80 
 
 42 42 
 
 1436 
 
 85 
 
 1371 
 
 28 
 
 210 
 
 40 
 
 tmmmm 
 
154 
 
 THEORETICAL AXD PRACTICAL HooK-KEEFINO. 
 
 THEORETICAL AND PRACTICAL BOOK-KEKPINO 
 
 155 
 
 hi 
 
 DECEMBER 1. 188-. 
 Resources of 0. J. Iluntington & Co., Furniture Manufacturers: 
 
 Real Estate: Manufactory, 18000.00; Warehouse, 24000.00. Total, 42000.00. (J.) 
 Merchandise: Manufactured, 47500.00; Lumber, 28000.00; Hardware, 1400 00- Fabrics &c 
 
 1700, Of); Varnishes, Oil &c., 850.00. Total, 78950.00. (J.) 
 
 Machinery an.l Tools, 0000.00. (/.) Office Fixtures, Safe, Desks, &c., 850.00. (,/.) First National 
 
 Bank, on deposit, 448f5.84. (/. T/h' Batik account is here kepi in the Ledger, but may be kept in the 
 
 Chirk Book if preferred.) Cjj^^Ii iu «afe, 211.14. {(\ B.) 
 
 Bills Receivable: Note of J. L. Brown, Tonawanda, at 3 mos. from Sept. 1st., with interest, 
 865.00. Note of S. H. Parker, (Jreat liend, at 3 mos. from Sept. 6th, with interest, 950.00. Note 
 of D. M. Willard, Grand Haven, at 2 mos. from Oct. 19th, with interest, 1744.50. Ni»te of J. 
 B. Andrews, Salem, at 3 mos. from Nov. 15th, with interest, 428.15. Total, 3987.65. (J. and B, B ') 
 Interest accrued on above notes, 39.79. (J.) 
 
 Personal Accounts {See Note below.): C. A. Graves, Brockport, Mdse. bou-ht on Re-ular 
 terms, Nov. 3, 1436.85. E. S. Smith, North Wilson, Mdse. bought Nov. 5; Regular, 1153.85; 
 Net, 217.43. W^arren & Francis, Jamestown, Mdse. bought Nov. 7; Net, 216.40. John If King' 
 City, Mdse. bought Nov. 10; R., 184.30; Net, 195.10. Covert Bros., Oxford, Mdse. bought Nov. l\ 
 R., 1423.00. Geo. C. Lyon, Fair Haven, Mdse. Ix.uglit Nov. 16; R., 83.18; Net, 41.12. Holdrid«re & 
 Gray, Medina, Mdse. bought Nov. 19; R., 234.50; Net, 1117.95. W. J. Thompson, Rarclav M^llse 
 bought Nov. 21; R., 1143.25; Net 73.11. Daniel Paine. Bridgeport, Mdse. bought Nov. 23; R.', 118.45, 
 Net, 61.17. J. H. Arnold, Geneva, Mdse. bought Nov. 25; Net, 1123.18. (,/.) 
 
 NOTE.-A11 goods are sold for Cash, Net Cash, or on " Regular" Terms. When sold for casli no entry is made 
 excepting in the Cash Book, and that at the close of the day. If thought best, such sales mav Ih' described See C 
 B., page 152. Such cash receipts should agree with the Salesman's memoranda. When sold for Net Cash the tckxIs 
 are entered in the Sales Book with the word "Net" after each item, and the aggregate is posted to the debit of the' pur- 
 chaser's account in the Ledger. >[dse. account should be credited with the daily, weekly or monthly footin- of 
 the bales Book. When sold for " Net Cash " it is understoo.l the bill is to be paid within :^0 davs The frins^re 
 indicated by 'Net " in the Sales B(X)k. At the expiration of the time the bill has to run it will 1k' subiect to drift at 
 sight. When gocxls are sold on •' Regular terms." they are entered in the Sales Book and post.-d precisely as when sold 
 for "Net Cash," excepting that the initial letter "R" is written after c-ach item. Bills sold on " Regular " terms have 
 four months to run. and if paid within 30 days are subject to a <lise<,unt of 5 per c.-nt. If allowe,! to run l)eyond the four 
 months they are subject to draft at sight. The terms on whi.h bills are .sold should be indicated in the Led-er as well 
 as in the Sales Book. See accounts given on page 153, for illustration. " 
 
 Sold Holdridge & Gray, Medina, 1 No. 33 Wal't Bed, 10.50; 1 No. 33 Wal't Wood Top Dresser, 
 17.00; 1 No. 2 Wal't Towel Rack, 1.65, Regiihir. 2 No. 80 Chairs, 92c.; 12 No. 49i Chairs, 15. 00- 
 12 No. 57 Ch., 9.00, Net. {See Sales Book, paije 153.) ' 
 
 John H. King, City, 6 No. 36 Maple Chairs, 10.80, Net. {S. B.) 
 
 Geo. C. Lyon, Fair Haven, 3 Best Side-board Beds, 6.30; 3 High H. D. Cots, 7.65; 3 Low 
 do., 7.20; 1 Imp. Cong. Ch., 2.85; 24 No. 72 Light Ch., 11.00; 12 No. 72 Dark Cli., 5.50; 4 No 61 
 Ch., 1.92, Net. {S. B.) 
 
 Cash sales, J. Smith, C. Suit, 36.00. Mrs. Wood, Pat. Rocker, 22.00. W. Brown, Parlor Suit. 
 144. {C, B., see page 152.) 
 
 DECEMBER 2, 188-. 
 
 Sold Daniel Paine, Bridgeport, 6 No. 25 Ch., 7.20; 12 No. 72 Ch. Sing. Round Light, 5.25- 
 6 No. 57 Ch., 4.50, Net. {S B.) 
 
 Covert Bros., Oxford, 1 No. 33 Wal't Wood Top Suit, 34.75; 1 Tete in Jute, 22.00; 1 Ford 
 Rocker, 11.00, Regular. 1 Arm Chair, 5.00, Net. {S. B.) 
 
 J. H. Arnold, Geneva, 2 No. 4 Soft Wood Beds, 6.50; 2 No. 25^ Ch., 8.00; 2 No. 24 Ash and 
 Wal't Beds, 9.00; 18 No. 57 Chairs in White (nntinished), 27.00; 3 No. 33 Ash and Wal't Beds, 18.00; 
 4 No. 309 Ch., 4.00, Net. {S. B.) 
 
 Received check from C. A. Graves for the amount of his bill of Nov. 3, 1436.85, less the regular 
 discount, 5 ^, (C. B.) 
 
 Bought, for cash, 3500 ft. Wal't Lumber, @ 70.00 per M. {C B.) 
 
 Cash Sales: B. Jones, 1 Pat. Rocker, 22.00. 1 W-il't Hat Rack, 28.00; B.incli of Cane, 80e. {C. B.) 
 
 DECEMBER 3, 188-. 
 
 Sold C. A. Graves, Brockport, 2 No. 42 Asli Beds, 18.00; 2 No. 42 Ash Dressers, 31.00; 1 No. 42 
 Ash W. Stand, 5.50, Regular; aiul 2 No. 83 Ch., 3.08, Net. {S. B.) 
 
 Sold W. J. Thompson, Barclay, 6 No. 6 Maple Cli. iu the White, 10.80; 4 No. 38 do.. 1.80, Net. 
 
 {S. B.) 
 
 Sold Warren & Francis, Jamestown, 6 Lounges, White, 7.50; 4 14 X 24 Glasses, 5.00, Regular. 
 
 24 No. 57 Ch., 13.50, Net. (,S'. B.) 
 
 Holdridge & Gray. Medina, Repairing Bed and Bureau, 8.00; 1 Hair Soft Mattress, 4.50, Regular. 
 
 [S. B.) 
 
 Cash sales: Mrs. W. Price, Ash Dining Table and 6 No. 33 Ch., 26.00; 1 Wal't Washstand, 4.00. 
 
 [C. B.) 
 
 DECEMBER 4. 188-. 
 
 Sold John H. King, City, 24 No. 87 Ch., 13.00; 36 No. 89 Ch. Dark, 19.50; 12 No. 89 Light, 
 18.00, Net. {S. B.) 
 
 Sold Geo. V. Lyon, Fairhaven, 4 Lounges, White, 5.00; 1 Nc. 42 Ash and Wal't Suit, 21.25, 
 Regular. 2 No. 42 Ch., Light, 4.(8, Net. {S. B.) 
 
 J. L. Brown i)aid his note of 865.00, and interest, due to-day. 
 
 E. S. Smith i)avs his bill of Nov. 5th, 1371.28, less discount, 5^' on the Regular iM>rtion of it. 
 
 [C. B.) 
 
 Cash sales: 1 Cong. Office Chair, 18.00; 1 Office Desk, 45.00. (T. B.) 
 
 DECEMBER 5, 188-. 
 
 Sold C. A. Graves, Bridgeport, 2 No. 48 Oak Ch., 2.60; 24 No. 89 Cli., 13.00; 1 Wal't Cor. Stand, 
 
 3.75, Net. {S. B.) 
 
 Sold Warren & Francis, Jaiuestown, 1 No. 33 Wal't Wood Toj) Suit, 36.00; 6 Com. S. B. Beds, 
 12.00, Regukr. 2 No. 33 Wal't W. T. Dressers, 34.00, Net. {S. B.) 
 
 Sold W. J. Th.mipson, Barclay, 1 No. 33 Wal't W. T. Suit, 36.00; 1 No. 33 Wal't W. T. Wash- 
 stand, 7.50, Regular. 24 No. 87 Ch., 13.00, Net. (*S'. B.) 
 
 Cash Sales: John Wagner, 1 W. T. Suit, 36.00; 1 Ash Din. Table, 18.00. {C. B.) 
 
 Bought Damask, Jute, &c. of A. S. Mann & Co., by check, 118.44; Invoice tiled. (J.) 
 
 Deposited 25(K ).()(>. {C. B.) 
 
 DECEMBER 6, 188-. 
 
 Sold Covert Bros., Oxford, 2 No. 33 Wal't W. T. Suits, 69.50, Regular. 6 No. 59 Ch., 12.00, 
 
 N\>t. {S B.) ' 
 
 J. H. Arnold, Geneva, 1 No. 2 Couch iu Carpet, 9.00; 6 Lounges, White, 12.90, Reg. 12 No. 
 
 D. R. Ch., White, 4.35, Net. (,S'. 7^.) 
 
 Daniel Paine, Bridgeport, 2 No. 42 Ash Beds, 18.00; 2 No. 42 Ash Dressers, 31.00; 1 No. 42 W. 
 
 Stand, 5.50, Reg. 6 No. 83 Ch., 9.00, Net. {S. B.) 
 
 Cash Sales: Parlor Suit, Wal't, 72.00; Cliaml)er Suit, Wal't, 55.00. {C B.) 
 
 Warren & Francis i)ay their net bill of Nov. 7, by check, 216.40. {C. B.) 
 
 The Foreiuan in the Cal)inet Shop has handed in the time of, and amount due to the following 
 
 hands: Nier, 10.50; Brown, 11.75; J. Wilson, 12.80; D. Wilscui, 6.50; Meyer, 16.90; Johnson, 5.(Ml; 
 
 Lyman, 8.30; Mosier. 14.50. Thayer, 14.50; Pease 12.25; Bartlett, forenuin, 25.00. From the Ware- 
 
 iiouse are added Hyatt, Book-keeper, 30.00; Mory, Ass't Book-keei)er, 8.O0; Hacket, Salesman, 18.00; 
 
 Pomeroy, Salesnuin, 20.00. ((7m/// Col. H. 11. See form, page 152.) 
 
 NoTK.— The pupil will rule a sheet for a Hands liegister similar to the form given on page 152. 
 Paid iu full all whose names appear on the Hands Register, in cash. {Debit Col. //. B. and C. B.) 
 
 Balance Cash Book and l)ring down ])alance. Cash on lumd, 1552.35. Post Journal, Sales Book 
 and Cash Book, and take a Trial Balance. Give each account one-fourth of a page space. In posting 
 the Personal Accounts, enter the terms given in the Memoratidu. Sm^ Ledger form on ])age 153. 
 
** 
 
 I 
 
 156 
 
 TIlKniiKTICAL AND PliACTICAL BOOK-KEEPINu. 
 
 DECEMBER 8. 188- 
 
 Sold Geo. C. Lyon, Fair Huveii, 2 No. ;J3 VVal't VV. T. Dressers, 34.00; 2 No. 33 Wul't W T W 
 Ntaiuis, 15.00, Roff. ' ' 
 
 Iloldricl.ire .S: (iruy, Medina, 1 No. 35^ Asli Suit, 24.55; 1 No. 50 Sl.elf Side Stand, 3.75, Reff. 4 
 N,.. -t4 Ch., 3.07; 2 No. 27 ('!»., 1.70; 12 No. 87 Ch., fJ.SO, Net. 
 
 o. J't!\^^' ^'"^'' ^^'^''^' ^ ^^"- ^'^ ^^'^''' ^^'- ^^- '"^"'^^^ ^^^-^^^ ^H'- 1<^ Spindle IIM and Ft Beds, 
 24.00, Net. * 
 
 Sent check on First National Bank to Bancroft & Co.. Pittsbur- for bill of Hanhvare, 318 45 
 Cash sales: I Wal't M. T. (M.an.ber Suit. llS.oo; l \\ al't J»arlor Suit in Ken, 85.00. 
 Bought new Planer, by check, 875.00. 
 
 Net. 
 
 Net 
 
 DECEMBER 9. 188-. 
 Sold E. S. S.nitii, North Wilson, 1 Book Casi', in Wliite, 18.00, Reg. 30 No. 48 Oak Ch., 54.00, 
 
 Warren cSl Francis, Janiest«»\vn. 24 No. 87 Ch., 13.00; 24 No. 89 Ch., 14.00; 12 No. 80 Ch., G.75, 
 
 , . x.^* ^ 7''''"'*''''"' Barclay, 1 No. 42 Ash an.l WaPt Suit, White, 21.25, Reg. 2 No. 80 Ch., 1 08- 
 12 No. 98 Ch., 32.00, Net. > • . 
 
 Cash sales: (I Dining (Mi., 9.00; 1 Book Case. Wal't, 45.00. 
 Gave check for (>850 ft. Cherry Lumber, d^ 48.00 ]»er M. 
 Deposited 1500.00. 
 
 S. 11. Parker pays his note of 950.00, with interest, in cash. 
 
 DECEMBER 10, 188- 
 
 No. ^^ch'T:;;;^2^i;:^^^ '''-^^- ^-^^^ ^ ^^- ^ ^-^- - ^-.^t, 1.50, Re^ . 
 
 309 Ch.^.Oo' Net.^''''^^"''' ^ ^'' '^ '^'^' ^^''^'' ''•'"' ^ ^"^ '^ '^'^ ^''"^''^ ^^'^^^ ^'^S- 4 No. 
 
 Cane^sdc'^ r""'' !!['^'^'^r''n, '' "" ^' ^'^'"'^''^ ''^'^ ' ^''' ^'' ^^'^^'^ W. T. Suits, 75.0.; 1 Jiunch 
 Cane, 80c., Reg. 10 No. 309 Ch., 10.00, Net. 
 
 Cash Sales: 1 Tete in Jute, 10.00; 1 Ford Rocker, 8.00; 1 Arm Ch G 00 
 5J^ jJ^tltlf bm.^"'"' ''' *^' ''''' '"'•''' '"^ ''*' ^"' ^''^ ^^ 11)^.10,* of* Km. loth, less discount. 
 
 DECEMBER 11, 188-. 
 
 Sold Iloldridge & Cray, Medina, 6 Ash and Wal't Beds. 30.00, mnv. 18 No. 57. C, in White 
 15.50; 24 No. 25^ Ch., 30.00, Net. 
 
 Geo. C. Lyon, Fair Haven, 12 No. 4 W. T. Cent. Tables, 42.00, Keg. 24 No. 69 Ch., 14.60, Net. 
 John H. King, City, 2 No. 1 Book Cases, in White, 37.00; 2 No. 33 Ash and Wal't Suite, 08.50- 
 2 No. 98 Ch,, 5.50, Net. 
 
 Casii Sales: 1 W. T. Wash Stand, 4.50; 1 M. T. Suit, 50.00; 1 omce Desk, 34.00; 1 Office Chair 
 16.00. * 
 
 Deposited, 1000.00. 
 
 DECEMBER 12, 188-. 
 
 Sold E. S. Smith, North Wilson, 3 No. 42 Asii and Wal't Suits, 03.00; 8 S. W. Beds, 24 00 Re^ 
 4 No. 43 light Ch., 4.50; 4 No. 25 dark Ch., 4.80, Net. ' " 
 
 W. J. Thomps(»n, Barclay, 2 No. 33 Wal't Beds, 21.00; 2 No. 33 W. T. Dressers, 34.00 Re<r 24 
 No. 72. Ch., light, 11.00; 12 No. 72 Ch., dark, 5.50, Net. 
 
 Cash sales: 1 M. T. Wal't Side Board, 48.00; 1 Wal't 1). Table, 24.00; 9 D. Ch., 13.50. 
 
 DECEMBER 13. 188-. 
 
 Sold J. II. King, City, 2 M. T. Wal't Side Bords, 58.00; 2 Wal't D. Tables, 38.00, Reg. 18 No 
 36 Ch., 24.00, Net. ^ 
 
 J. H. Arnold Geneva, 2 No. 33 Ash and Wal't Suits, 04.00; 2 No. 4 S. W. Beds, 8.00; 8 Com 
 Wash Stands, 12.00, Reg. 12 No. 80 Ch., 12.00, Net. 
 
 Daniel Paiiu, Bidgeport, 2 No. 35 Ash Suits, 51.00; 2 Wal't D. Tables, 28.00, Reg. 24 No. 44 
 Ch., 28.00, Net. 
 
 Sales for cash: 1 Couch in Car]>et, 18.00; 1 Pai. Kw-Kcr, z^.vif; 6 Office Stools, 3.00. 
 
 . 
 
 - 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING. lo7 
 
 Covert Bros. ])ay their R. bill of Nov. 3, less discount, in cash. 
 
 Deposit in First National Bank, 1500.00. 
 
 Bartlett, foreman, has left his Time Book in the office, from which the Pay Roll will be made up. 
 The hands have earned during the week, as follows: Neir, 11.75; Brown, 11.50; J. Wilson, 14.20; D. 
 Wilson, 8.75; Meyer, 15.50; Johnson, 0.75; Lyman, 9.80; Mosier, 13.20; Thayer, 10.25; Pease, 12.50; 
 Bartlett, Foreman, 25.00. Added from the Office and Warehouse: Hyatt, Book-keeper, 30.00; Morey, 
 Ass't Book-keeper, 8.00; llackett, Salesman, 18.00; Pomeroy, Salesman, 20.00. Entered on Hands 
 Register and paid in full, in cash. 
 
 INVENTORIES. DECEMBER 13, 188-. 
 
 REAL ESTATE— Manufjictory, 18000.00; Warehouse, 24000.00, 42000 00 
 
 MERCH AN DISE— Manufactured Stock and Raw Material, T8104 90 
 
 MACHINERY AND TOOLS— At Cost, ---- 9875 00 
 
 OFFICE FIXTURES— At Cost, 850 00 
 
 I NTE RES r— Accumulated on D. M. W.'s Note, 
 
 " " ** J. B. A.'s Note, 
 
 Balance the Casii Book. Cash on hand, 543.51. Post, make a Balance Sheet, and ch».<e the 
 Ledger. Net gain, 000.50. 
 
 QUESTIONS FOR REVIEW. 
 
 • What books are required? Which are used as principal books, and which as auxiliaries? 'Describe 
 tnc Sales Book. 'From which book are customers debited for i»urchases on account? *To what 
 account is the footing of the Sales Book posted? ^In what respect does the Cash Book used in this 
 business differ from the ordinary Cash Book? « What do you understand by " Regular" bills? ' How 
 are purchasers' discounted bills entered in the Cash Book? ^ How are the entries of merchandise in 
 the Cash Book posted? MIow often should the cash be proved? '"What does the Journal contain? 
 Describe the Hands Register. 
 
 After you have completed the work upon your books, present them to the teacher for insi>ection, 
 a.id prepare for a written examination in book-keeping, questions for which will be furnished by the 
 teacber — selected from the questions for review given throughout the book. You will also be re<pjired 
 to make the Jo-irnd entries for a variety of transactions, and to draw forms of business i)aper, as 
 Tetter, Bill, iuvoico of Shipment, Account of Sales, Note, Draft, Oneck, Certificate of Deposit, etc. 
 
158 
 
 THEORETICAL AND PRACTICAL BOOKKEEPING 
 
 BUSINESS FORMS. 
 
 LETTER INCLOSING REMITTANCE 
 
 FULLER & HENDERSON, 
 
 AND 
 
 GROCERS SUNDRIES, 
 
 165 UAIH STRBST. 
 
 SOCHXSTB, C^j/r^ 
 
 7a 
 
 2 
 
 ^^^^^/ 
 
 J^€r^^^lt;; Cl^^-iy^ 
 
 
 ..^^^^ 
 
 LETTER OF RECOMMENDATION 
 Tu whom it mail Concern: Carbondale, Au^^ 31, 188-. 
 
 us Z^nflf^r" '" ^^"^'"^/'^^^^ ^'- ^— • ''- I^^'l'i' ^'- Ho^-s, wlio has heon emploved bv 
 
 f Tw \ 1^"'V;'"' I' ,"* '"^ '"'^^'"'^^ ^ competent and fuitJiful hook-keeper, and a v.un. man 
 of the higluvst qualities of lu-ad and heart. ' " 
 
 Mr. Rogers severs his eonneetion with onr liouse to seek a more congenial climate, and leaves 
 hearing with h.m the highest regard of all with whom he has been associated. 
 
 Itespectfully, 
 
 BEDELL & LUSK. 
 
 LETTER ORDERING GOODS 
 Mr. Geo. I». Osgood, Kochesteh, Oct. 4. 188-. 
 
 Chicago. 
 
 -v. V. c. & ,r. R. R. n.. Ihr'f,!;;:;ivi,""" ^''''' " " "™ ^ '"'""*' •■" ^ •'• * *'• '^- '"■ ^'- ■""' 
 
 •toz. U-,„. B. Bowk; ., d,«. N„. 3 Wo.hI Se«„,«; 25 N...ts F. I'aiU; 5 Aoz. W. Shovels. 
 
 Kespectfullj, 
 
 FULLER «fe STUDENT 
 
 THEORETICAL AND PRACTICAL BOOK-KEEPING. 
 
 169 
 
 BUSINESS FORMS. 
 
 INVOICE OF SHIPMENT. 
 Invoice of Merchandise shipped to A. O. Niles, Evansville, to be sold on onr account and risk. 
 
 200 bu. Potatoes, 
 Paiil Cartage, 
 
 Galesburg, Sept. 15, 188-. 
 
 charges: 
 
 (B 
 
 65c. 
 
 130 
 
 
 
 
 3 
 
 25 
 
 - 
 
 133 
 
 25 
 
 188- 
 ISept. 
 
 
 12 
 
 6 
 12 
 
 ACCOUNT OF SALES. 
 Sales of 500 bu. Ked Wheat, on "{• of Foster Bros. 
 
 Sold for cash. 
 
 200 bu. Red Wheat, 
 Sold for cash, 
 
 300 bu. Red Wheat, 
 
 Paid Freight, 
 Storage, 2^c. per bu., 
 Commission, 2 % of Sales, 
 
 Foster Bro's Net Proceeds, 
 
 E. E. 
 
 Galesburg, Sept. 12, 188-. 
 
 
 
 @ 
 
 1.37i 
 
 274 
 
 50 
 
 
 T (J. 
 
 WILLI A.\ 
 
 1.3Ti 
 
 50. 
 
 12.50 
 
 13.73 
 
 411 
 
 75 
 
 charges: 
 
 686 
 76 
 
 25 
 23 
 
 
 LS. 
 
 HERBEH 
 
 610 
 
 02 
 
 
 
 
 
 
 
 i-.l? s ^"- ^^67. 
 
 = 2-59 K £ 
 
 >. C O 08 n •TZ 
 
 BANK DRAFT. 
 MANUFACTURERS AND TRADERS BANK, 
 
 of MINNEAPOLIS. 
 
 196.38. Minneapolis, April 12, 188-. 
 
 Pav to the order of Erastus W. Cleveland, Ninety-six and yVo l>>^dlars. 
 
 To BiiOAinvAY Bank, ) 
 New York, f 
 
 J. K. COMPTON, 
 
 Cashier. 
 
 c 
 
 i| 
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 11 
 
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 FORMS OF 
 
 INDORSEMENT. 
 
 
 
 
 
 
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 ^ 
 
 TIIEOUKTICAI. AND PR\(riICAL K<K)K KKKPING. 
 
 BUSINESS FORMS. 
 BILL. 
 
 rULLER & HENDERSON, 
 
 
 RQCHESTES, Gc/rcf./rr- 
 
 GROCERS' SUNDRIES. 
 
 1S5 HAIH STRSST. 
 
 FOLIO 
 
 SALESMA 
 
 FULLER 8e HENDERSON. 
 
 N f^-T^^.'^U^'Jy TERMS (// ^Z 6 ^^ ^/j, / i^ dJ^ -^ /" <^-i<-d^ 
 
 ^ A.. Olr^^ Q. Oh'Si^^ii 
 
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 CERTIFIED CHECK. 
 I14T5 54 Syracuse, July K), 188-. 
 
 CENTRAL CITY RANK, 
 Pay to Bliss, Croodricli & Co., or order, Fourteen Hundred Seventy-five and ,Vt, 
 
 Dollars. 
 No. 602. 
 
 EVANS & KINGSBURY 
 
 CERTIFICATE OF DEPOSIT. 
 
 1500.00. 
 
 Detuo'T, May '.», 188-. 
 
 SECOND NATIONAL BANK. 
 
 Samuel Ro})erts, Jr., has dejjosited in this Bank Five Ilundre.I Dollars, payable 
 to himself, or order, on return of this Certilicute. ^^^ hINMAN 
 
 I 
 
 INDEX. 
 
 Account Sales, explanation of 55, 56, 57 
 
 forms of - 80, 159 
 
 Bank, rule for journalizing. 27 
 
 examples in 28 
 
 checks, form of 28,77,160 
 
 draft, form of - 159 
 
 Balance Sheet, guide for - 32 
 
 form of - - - - - - ^^ 
 
 Bill Book, explanation of 05 
 
 form of - ^1 
 
 Bill, formsof ..-.-• ---- 80, 160 
 
 Commission, explanations and examples - - - 55-57 
 
 Sales Book, Cash Book and Journal as principal 
 
 books 117-125 
 
 Consignments, rules for journalizing. - 55 
 
 examples in journalizing — - - - 56-57 
 
 Cash Sales, Note 4.. 65 
 
 Cash Book, explanation of ~2 
 
 form of 78-79 
 
 items not posted . - 74 
 
 Cash Method, explanation of 109-1 12 
 
 form of Cash Book 110-111 
 
 Check Sheets, explanation of and form for 134 
 
 Certificate of Deposit, form of - 160 
 
 Draft, explanation of - - 41 
 
 formsof.. - 41, 79 
 
 rules for journalizing 41-42 
 
 examples in journalizing 42-44 
 
 Due Bill, payable in goods * 78 
 
 payable in money - 78 
 
 Errors in Trial Balance, how found 21 
 
 Envelope, form of 77 
 
 Executor of a Will, books of. 99 
 
 Inventory, explanation of 31 
 
 liability --- 67 
 
 Interest, how computed. 365 days basis . 25 
 
 how computed, 360 days basis 89 
 
 time for, how found - - 51 
 
 accrued, how treated 65 
 
 on partners' accounts 
 
 Indorsement, forms of 159 
 
 Journalizing, general rules for. 6 
 
 special rules for 6 
 
 examples in 7-12 
 
 directions for 16 
 
 Journal, combined with Day Book, form of 64 
 
 explanation of Note 1 65 
 
 Ledger, rules for closing 35 
 
 guide for closing 36 
 
 closed form of --- 38 
 
 partially closed ^^ 
 
 closed directly to proprietor's account 70 
 
 Letters, forms of 77, 158 
 
 Miscellaneous Accounts, form of - 108 
 
 Manufacturing, explanation of books u-^t'd - 151 
 
 forms of books used l."32— 1.53 
 
 Note, ordinary promissory, form of. 21 
 
 joint 78 
 
 joint and several --- 78 
 
 n on -negotiable '^ 
 
 Order, payable in money -- 78 
 
 payable in goods 78 
 
 Posting, explanation of - 1* 
 
 guide for 17-18 
 
 with Ledger explanations .- - 67-68 
 
 Partnership, explanation of - 44 
 
 profits, division of - 48 
 
 interest on partners' accounts - 141 
 
 Protest Fees, how charged - 52, 74 
 
 Petty Ledger, explanation of - - - 103 
 
 form of - 1^ 
 
 Receipt for payment on account .- 78 
 
 for paj'ment on note - 78 
 
 Retail Business, explanation of books used . - 143 
 
 forms of books used 144-147 
 
 inventories, how treated 150 
 
 Shipments, rules for journalizing 55 
 
 examples in journalizing - 5.>-56 
 
 inventory of . ^ 
 
 invoice of — 159 
 
 Single entry, explanation of 81 
 
 changing to Double Entry 85 
 
 Cash Book ^ 
 
 Special Column Journal, explanation of 93 
 
 form of 94-98 
 
 Trial Balance, explanation of 20 
 
 errors in j..,.j.i.., — j.,. .,i,'«.,.., j«i , 
 
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