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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Packard, Silas Sadler Title: The new Bryant & Stratton high-school Place: New York Date: [1881] MASTER NEGATIVE « COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD lik(^#> ONTGQMEIty Packard, Silas Sadler, 1826-1898. The new Bryant & Stratton high-school book-keeping : adapted to use in business colleges, and higher grades of public and private schools. By S. S. Packard ... and H. B. Bryant ... New York and Chicago, Ivison, Blake- man, Taylor & co.,fl881.3 166 p. incl. forms. 26 cm L 1. Bookkeeping. i. Bryant,, Henry B.^joint author, j i?"^ 7-4637 Library of Congress HF5635.P167 RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE: .^f- l/^n^ REDUCTION RATIO: . a ^ IMAGE PLACEMENT: lA (MA/ IB IIB C\\f w o o m -n O O O X -< rsi Ol > 0,0 o m (D O OQ tn < N O o C/) M .'V^' .-v^ ** ^is- m O O 05: > C CO I TJ ^ 0(/) ; m 3D o m A "5.0 Is Si rvsP OiX ■vJ-< OOM IX> O ip fp H- » N> hJ Ol Ol 3 3 3 3 3 I? o 5^ »< ^ M (fi rvoc cn< cnx oorsi o O- Aa ■^^ %^, n Q.I CD — 1< OQ »-*zr| r-t- c < X N *"? A ■ ,! * -^M ^A r*ti w % i 'M *M i V •« J," 1^ rq r**.-* ■ ^> ii%- Y' tl -l^*!- fci. v;^> IP> ■ r#' ■J i# Wr m W- s^ ."^ '-. ,1 !^s > nv J ^i; •r I Mr,3- f-h-^ J ■ w *s«iT ■& j' ^ V \W: :<> «i i <6 ID^^O Columbia ?Htnt)etfiittj> pTa LIBRARY W^t inontgpmetp %ihxwcp 9camtitancp THE NEW BRYANT & STRATTON High-School BOOK-KEEPING : ADAPTED TO USE IN BUSINESS COLLEGES, AND THE HIGHER GRADES OF PUBLIC AND PRIVATE SCHOOLS. By S. S. 'PA.CKA.Rn, J^eTV TorJc, ^rop'rietor of 'Paohard'a ^Susiness Qollege ; AND JET. (S- ^Ity^A.JSrT, CKtcago, Founder of the Bryant db Stratton Qhain of ^ueineea Cottages. NEW YORK .;• CINCINNATI :• CHICAGO AMERICAN BOOK CONIPANY PROM THE FRESS OF IvisoN, Blakeman & Company. ^ ^ c- ^ M ^->^... ■>,■>. jf" Q Ul-^^' Copyright, i88i, by rVISOX, BLAKEMAN, TAYLOR, AND COMPANY. i ( CONTENTS. PAGS 5, 6 7-13 Prepacb Introduction ^^ ^g Instructions SET I. BUSINESS OF A SINGLE PROPRIETOR (Prosperous). Pay Book. 16 17,18 19,20 21 22-24 25 26 Journal Ledger (Open) Statement of Results General Statement Fmal Results Closing the Ledger 27 28 Ledger (Oosed) ' Practical Exercises (First Series) ^ ^. Questions for Review Form of Index SET II. CONTINUATION OF SET I (Prosperous). 31 33 Day-Book. Journal . . Ledger General Statement Practical Exercises (Second Series). Auxiliary Books Questions for Review 34, 35 36,37 38,39 40,41 42,43 44,45 46 SET II I. CONTINUATION OF SET II (Adverse). 48-5 Day-Book and Journal ^^ Trial Balance Business Continued (Memoranda) 59 Auxiliaries ^' ?1 Accounts Sales Practical Exercises (Third Series). Questions for Review 68 64 3 CONTENTS. I ii SET IV. PABTNERSHIP BUSINESS (Prosperous). Remarks. PAGX 66.67 Journal Daj-Book 6^79 Ledger Explanation of Balance Sheets Balance Sheets Explanation of AuxUiaries Auxiliaries Check-Book. 80-89 90 91,92 93 94-99 100,101 Notes, Drafts, and Letters 103-105 Practical Exercises (Fourth Series) ....*..'..*!.... 106-108 SET V. JOBBING AND IMPORTING-FOUR PARTNERS (Prosperous). Remarks. 110. Ill ^"*i°« 112,113 Domestic Invoice-Book 114-116 Foreign Invoice-Book j jiy j ^g Sales-Book 119-123 cash-Book ;; ; 124,125 Bill-Book Inventory-Book Journal Balance Sheet Questions for Review. SINGLE ENTRY CHANGED TO DOUBLE ENTRY (Two Sets). Explanation. Cash Book.. Day-Book... 126 127 128.129 130 131 134.136 136, 137 138,139 ^^S^^' 140,141 Process of Changing j42 143 Day-Book, Double Entry j44 j^g Statements -tAQ Memoranda for Continuation 147 j4g Dissolution •••• j^g P>«ctical Exercises j^gQ FARM ACCOUNTS. Remarks 153 Cash Memorandum jgg History of Transactions 154-157 Journal. Trial Balance, etc.. . . Statement Practical Hints Questions for Review. 158-162 163 164 165 166 ( PREFACE. THIS book is a revision of Bryant & Stratton's High-School Book-keeping as first published in 1860, and is, in some sense, an improvement. Care has been had, how- ever, to preserve the essential work of the old edition^specially of the " sets " in their order, so that the two editions may be used in the same classes. The transa^^tions of these sets have been so thoroughly tried and approved that it seemed unnecessary to change them. Essential improvements have been made, however, in the presentment of the subject, in the typographical arrangement, and in some matters of detail. It is claimed for this book that it covers fairly the subject of Book-keeping, and has in it, of instruction and material, sufficient to make a good, clear-headed book-keeper. The first part is devoted to the gradual unfolding of the science of Double Entry, wherein not only are the principles clearly stated, but enforced by ample illustrations and praxitical work. The plan is here first used of following each fully written set by a set of transactions to be written up by the student, embodying all the principles of the written set. The special departments of business represented are made to cover a sufficient area to unfold and apply the principles of book-keeping ; and no pretense is made to do more than this. The author does not claim that anybody does or should necessarily follow the exact forms here given ; but he knows well that they can be followed with pro- priety and satisfaction ; and he also knows that whoever learns well all that the book contains will be able to understand and keep a set of books of whatever form. A slight change has been made in the arrangement of the entries in the Day-Book-Joumal of Set IV., the object being to preserve the characteristics of the two books and to make the two parts of the entry distinct. The work of Set V. conveys an adequate idea of the PREFACE. use of principal books for the original entry, or rather of classifying the record before it reaches the Ledger. The Journal is introduced in this set, but merely as foreshadowing the Ledger. Single Entry Book-keeping is sufficiently presented, and in the order best calculated to teach its characteristics. The changing from Single to Double Entry enables the student to draw the lines of distinction with certainty and understanding. The use of a Columnar Journal in the Farm Set is with a view to enforce its advan- tages, and the subdivision of the principal account, as suggested at the close of the Journal, exhibits a feature which can be used with much force in various kinds of business. It is hoped that the few changes which have been made will be recognized as in the line of improvement, and that the clean type of the revised book will commend it to its old and new friends. INTRODUCTION Book-keeping is the systematic record of business transactions. Business transactions consist in the exchange of valuable things or considerations; hence, Book-keeping is the art through which such ' exchanges are recorded, and the science which secures a knowledge of their results. The term Double Entry has been applied to scientific Book-keeping, as no full record of a transaction can be made which does not involve at least two entries upon the Ledger. These entries are made in the form of Accounts, which is a grouping of opposing items under distinct titles or heads. The items are arrayed on opposite sides of the account, and the difference between the footings of the two sides is a resultant fact relating to the progress or the condition of the business. The left side of an account is called debit or debtor (Dr,), and the right side, credit, or creditor (Cr.). Every complete record employs at least two accounts, and requires the sum of the debit and the sum of the credit entries to be equal. The Ledger, or book of accounts, is the main book of a set, inasmuch as in it are presented all the facts or results of the business, in such a way as to plainly denote its progress and standing. The books which precede the Ledger in the order of entry, and from which its materials are gathered, are known by different names, a<;cording to the character of the business recorded ; such as Invoice, or Purchase-Book, containing the record of goods bought; Sales-Book, containing the account of goods sold ; Cash-Book, embracing items of money received and paid, etc. When, however, but one book is used for the original record it is generally called the Day-Book, and in it are written all the transactions of each day, as they occur. In transferring the Day-Book entries to the Ledger it is often convenient to use an intermediate book for the purpose of separating the debit from the credit items, and indicating the Ledger accounts to which each is to be carried, or "posted." This book is called a Journal, and may be used separately or combined with the Day-Book. TRANSACTIONS AND FORMS OF RECORD. TRANSACTIONS. 1. Doing business in New York, on the first day of July, 1880, we buy of James Monroe, 500 barrels of flour, for which we engage to pay him at some future time, ten dollars a barrel 7 INTRODUCTION. INTRODUCTION. II 2. July 2, we sell to Andrew Jackson, 100 barrels of flour, for which he pays us in cash ten and a half dollars a barrel RECORD. 1.— In the Day-Book. JV^IF YORK, July 1, 1880, Bought of James Monroe, on %, 500 bris. Flour @ |10 8 I M % 2 Sold AiTOREw Jackson, for cash, 100 brls. Flour - . '- - @ $10.50 2. — ^In the Journal. :N'Eyr YORK, July i, 1880. Dr. Merchandise 3 1 IS. James Monroe 5000 2 Cash Merchandise a 1050 £ o Q a 6 Day-Book and Journal combined. JVFW YORK, July 1, 1880. Dr. Merchandise James Monroe - - - Bought 500 brls. Flour ... - @ $10 ^ Cash 5000 Merchandise Sold 100 brls. Flour @ $10.50 1050 5000 1050 £ O o a u O Or. 5000 1050 £ I 3 a V €fr. 5000 1060 8 h ,/ Date. Dr. Side. 3. —In the Ledger. Merchandise. Cr. Side. 1 1880 July 1 (ExplancUion.) James Monroe - - - 1 5000 # 1880 July 2 {Explanation.) Cash 1 1050 James Monroe. 2 1880 July 2 Mdse. . . - - 1 5000 • Cash. 3 1880 July 2 Mdse. ----- 1 1050 ACCOUNTS. An Account is a collection of items under an appropriate head, so arranged as, by comparison, to exhibit some specific result of business transactions. Accounts are kept not only with persons but with property and causes, and may be so classified as to show at any time the condition of the business, and the channels through which changes have been wrought. Each account has two sides, the items on one side being exactly opposite in meaning to those on the other, and the difference between the two sides being the real fact or purport of the account. The terms Dr. and Cr., uniformly used to designate these two sides, are significant only as applied to personal accounts. \ NAMES OF ACCOUNTS. The names given to accounts should be, as a rule, significant of their purpose and sphere. This is the practice, except in a few instances, where usage sanctions arbitrary titles. The accounts defined below are those in most common use, and are classified with reference to a complete showing of results. 1.— ACCOUNTS OF FINANCE. Accounts of Finance are those which relate to money or its univalent, either owned or oived by the business. The most direct and important of these is 9 If INTRODUCTION. Cash, the mission of which is to contain the orderly record of all moneys received and paid out, and to constantly exhibit by the difference, the amount on hand. The theory of the Cash account is simple, merely requiring the money received to be entered on one side (the debit), and the money paid out to be entered on the other side (the credit). Inasmuch as more cannot be paid out than has been received, it follows that if the sides do not equal, the excess must be of the debit side, and must represent the amount of cash on hand. Bills Receivable. This is the name giverf to negotiable paper which has come mto the possession of the business. It is in the form of promissory notes, or of drafts, wherem the maker (of the note) or the drawee (of the draft) promises to pay to any authonzed holder a certain amount of money (mentioned therein) at a certain time and place.* This species of property is of the same nature as cash. It is, in fact, cash deferred, its value resting wholly in the fact that, at the time specified, the amount called for will be paid. The theory of this account is precisely similar to that of Cash account; the "bills'' as they come into our possession are recorded at the value written upon them, on the debit side of the account, and as they are redeemed, or pass out of our possession, are entered upon the credit side of the account Hence, when they are all redeemed or disposed of, the account will balance or cancel, and until that ev^t, the excess of the debit side will represent the face value of what remain. Bills Payable. This is the name given to negotiable paper issued and payable by ns. The difference between Bills Payable and Bills Receivable is a difference of attitude ; that which is Bills Payable to us being Bills Receivable to those who hold our obligations, and vice versa; Bills Payable account is credited for the face of our ♦ The two forms of negotiable paper owe their distinctive characteristics to the diffemet circumstances of their origin A noteongm&te» with the payer or maker and is a voluntary promise ; a drqft originates with the payee, and is first a request, and next, an affirmative response, which is in effect a promise. A note has necessarily two parties, the maker and the payee: a draft has three parUes, the drawer, the payee and the drawee. The maker of a note corresponds with the drawee of a draft, and the payee of a note with the payee of a draft ; while the drawer of a draft has no equivalent in an unendorsed note ; he being in &ct and in law an endorser or guarantor. The two forma here given wiU sufflcienUy explain the charactensticfi of each : *^f'»"» $1000 New York, July 1, I88O. Sixty days after date I promise to pay to the order of ' Peter Cooper, at the East River National Bank, On& Thousand Dollars, value received. S. S. PACKARD. ^^^^^ Chicago, July 1, 1880. Sixty days after date, pay to the order of Peter Cooper, at the East River National Bank, One Thousand Dollars, value received. To S. S. PACKARD, "* ^- B^^^NT. New York. Of the note, S. 8. Packard is the maker, and Peter Cooper the payee ; of the draft, H B. Bryant Is the drawer, Peter Cooper the payee, and 8. 8. Packard the drawee. The undertaking in each case is that S. 8. Packard shall pay to Peter Cooper, or to My one whom he may authorize to receive it, one thousand dollars in sixty days, at the East River National fh 7 « .n°v. '^L T^'^ recognized this obligation in the case of the draft by writing his acceptance across its face, the draft wiD have this advantage over the note that two persons instead of one will be held to the paymenl>-for the law constitutes the drawera guarantor. Hence, to make the note an exact legal equivalent of the accepted draft, it is only necessary that H. B. Bryant should endorse it, or write his name across the back. The three parties will then hold exactly ♦he same relations to ^h other in the one document as In the other, and the two "bills " will be in aU respects excci.t mere form, identicaL f^v™, v^^^yt 10 INTRODUCTION. obligations when they are issued, and debited when they are redeemed. The excess, if any, will be of the credit side, and will represent our outstanding paper. 4 « r.^^ !-.« of miP time and we may owe him at another, and me ouiigatiuu isL J t^ J nnnfimiallv shown in a single account inis is because account witu * r^rsonal account is an account with a person, firm, '''''''''T::T^''it:trsotr^t^^eZ U is Mite^ when the party gets or corporation, kept to ^^ow pem,nal .^^ ^^.^ ^^^^ ^^ ^^ ^^^^ :"LbL:r;.otra preponderance of the credit side represents au amount owmg *, us, and exhibits a liability. hnsinP^s . T. • A'^^4-^A will flf flnv time show the condition of the business. The accounts above indicated will at any time miyjn ^ ^^^a TVia un~e^d to^-must be a^ertained by actual enumeration and valuation. 2.-ACCOUNTS OF BUSINESS. A0CO.K.S 0. B™s -J^- tSar^tlt^eTotesTnTSu:.^^ i=s"; EtCTnSellSt cJnJ reffect. The titles of the main accounts under this division depend wholly upon the nature of the business itself and a^ or Zuld be significant of its operations. In a business of buying and seUmg goods, Meecha^'dS account is commonly used to indicate the order, nature, and extent of ?lrr,nnch,al tran^tions. In a professional business the main business account would lp;rp3ybrcSdSBKVX0Ko'rL.BOB; in a Commission or selling agency business, Commission, etc. ., i j. a The following detailed explanations wiU sufficiently illustrate the character and nurpose of Accounts of Business. „ , . , Merchandise. The term « Merchandise " covers, in ordinary use, neariy all kinds of movSJ^, bought and sold. The Merchandise account measures the gain or losffrom deaUng il merchandise ; one side-the rfeJi^-showing the cost, and the other Sdeire Stt^howing the returns. When the goods are all sod, the difference S^^the sMl indicate the gain or loss. If the result is desired while unsoW J^o^rr^y^ns on hand, the account should first be credited with the value of the unsold, and then the difference taken. Hoal Estate This account is of the same nature as Merchandise, and governed by th^sTme pSdples. It covers transactions in real estate, as the Merchandise account does in merchandise. . ShlDment or Adventure. Goods are sometimes sent away to be sold m anoth™k?at the risk of the merchant -ding tw I- -^^^^^^J^^^S »ocount is kept under the title of Shipment, or "Adventure. The nature ot this Zun is p3sely that of Merchandise, and the same theory pertems as to .ts recoi^J^ Should the'g'nerafresults of the business be desired before receiving advice from the iuing agent, it is proper to reckon the property as a resource at its cost. Service or Commission. This title is applicable to the main account of a ' 11 INTEODUCTION. professional or agency business. It is credited with retun^s for service, and deUted, If at all, with such items of outlay as are incurred in the prosecution thereof The difference will show the net returns.* Expense. This is an account of convenience, and may be made to cover a greater or less variety of items, according to the purpose or wish of those interested. In reality aU Items of expense are logically chargeable to one or more of the main a<3counts of the business, and the only proper reason for using a separate Expense account is that it may serve a convenience in classifying the sources of gain or loss. The account is debited mih such Items of expense as it is designed to cover, and is never credited except aa an offset to an excessive debit. It properly shows a loss. The foregoing enumeration will sufficiently indicate the purpose of Accounts of Business, though it covers, necessarily, but a small part of the titles in use. It is sufficient to say that whatever statistics of progress or classification of movements or results may be desired can be secured by a proper subdivision of the activities into Bignificant Business Accounts. 3.— PROPRIETORSHIP. The proprietor of a business stands in a distinct personal relation to it, and should be credited under some title for all sums invested, and debited for all sums withdrawn. The same is true whether there be one proprietor or more. Proprietors' accounts are treated, in all respects, as personal. GENERAL PRINCIPLES. 1.— PROPRIETORS. The person or persons owning the business should be credited under some title for m vestments when made, and for his or their share of the gain when the same is asceri;ained. He or they should also be debited individually for amounts drawn from the business, and for his or their share of the net loss. 2.— CASH. Cash account should be debited for all money received, and credited for all money paid out "^ a— OTHER PEOPLE'S "WRITTEN PROMISES. Bills Receivable account should be debited for all nof^s, drafts, or other written obhgations for which we are to receive payment, when they become ours, and credited when they are paid or otherwise disposed of. 4.— OUR WRITTEN PROMISES. Bills Payable Account should be credited with our written obligations when they are issued, and debited when they are redeemed. ■rn..^Tr::Z^^^:i^Zt^''''^^'^'^^ "' """ "^ ''"^^^ ^ expense, as when one pa,s for such service. 12 INTRODUCTION. 6.— PERSONS. • Personal accounts, or accounts with individuals, firms, banks, or other corporations competent to sue or be sued, should be debited under their proper titles when they become indebted to us, or we get out of their debt, and credited when we become mdebted io them or they get out of our debt. 6.— LOSSES AND GAINS. Causes producing losses or gains in business should be designated in accounts bearing slcrnificant titles. Such accounts should be debited for all outlays or losses, and credited for all returns or gains. QUESTIONS. 1 What is Book-keeping ?—i?. Of what do business transactions consist?— 5. In what sense is Book- keeping an art, and in what, a scieruie f-4- Why is the term Double Entry applied to scientific Book- keeping 1—5 In what form are final entries in Book-keeping made?— ^. Define an account?— 7. How is the resultant fact of an account obtained?-^. To what do the resultant facts of accounts relate ?- 9 What is the left side of an account called ?-iO. What, the right side?-iL What is the smallest number of accounts requisite to contain the full records of a transaction?-!^. What else is requisite m a complete record of a transaction ?—iJ. What is the main book of accounts ?—i^. Why?— i5. Name some of the books which precede the Ledger 1-16. What does an Invoice or Purchase-Book contain ?- 17 What, a Sales-Book ?—i5. What, a Cash-Book ?— i5. When one book contains the onginal record, what is it called ?-^. How may this account be utilized in a general statement of the business, in case no account of sales has been received from the agent?— 57. Explain Service or Commission account.— 55. In what other sense is this title used 1—59. Explain Expense account.— 6^. To what other account or accounts are the items in the Expense account properly chargeable 1—61. Why, then, should there be an Expense account?— 6^. What does the Expense account always show?— 65. What relation does the proprietor of a business sustain to the business ?— 64. What items appear in a proprietor'a account 1—65 How many general principles are here used to explain Ledger entries 1—66. Give the purport of Principle 1.-67. Of Principle 2.-68. Of Principle 3.-69. Of Principle L-70. Of Prin- dple 5.— 71. Of Prindple C. 13 INSTRUCTIONS FOR SET I. The stndent will bear in mind that the exceUence of his work will depend, in a great TnT^Vr" f ''"*^"^' ""'^ '^P^'^^y "P"" ^nitormitj in style and a^mge^ent. rn foot, those who are competent to judge of excellence in Book-keeping will attach greater importance to neatness, uniformity and perspicuity of style and arrangement than to a mere display of pen art There is, in truth, little occasion for showing off fine penmanship m a set of books. What is demanded is absolute plainness and legibility wi h such an arrangement of items and figures as will bring the prominent facts into relief, so that even those who are not skilled in the intricacies of the science will yet be a tracted by the apparent perspicuity of the entry. The Day-Book of Set I is presented as a model, and the student is required to copy it with as much exactness as possible. The single money cohimn is ruled in his blank-book, and he is required to place the figures therein in their proper position, so that in adding up the entire columns on each page there will be no excuse for adding units to tens, or tens to hundreds. Care should be taken also, to so arrange the descriptive matter as that the introductory part of the entry-- beginning usually with the words, « Bought," "Sold," "Received," "Paid"— should appear distinct from the particular statement or enumeration of items. This maybe done by a "hanging indenture," as in the book-the primary announcement beginning against the vertical ruled line, and the enumeration of items beginning half an inch to the nght-or by indenting the first line, and following with the items against the vertical ruled line. For ordinary work the form laid down in the book is the letter- but the student is to understand that it is not given as an arbitrary arrangement, not to be deviated from The object of form in Book-keeping is to present the facts of the transactions in the clearest and most satisfactory way, and whatever form is adopted, should be earned out with the utmost particularity. If necessary to that end, the stndent inay rule vertical pencil hues to mark the margin of indentation on the left, as also for the money columns containing the short extensions on the right. The date figures in the center of the page, should be in exact line, «d the ruling between the entries should be clear and uniform. ■ The Dat-Book completed forms the basis of the entire work, and is in all respects an important book It ,s the book nearest the transaction, and containing the first record thereof. If any essential fact be omitted from the original entry it will be difficult to supply It thereafter, and any such irregular practice would be considered unbusmess-hke, and in case of dispute, would appear at a disadvantage. It is hence of the first importance that the Day-Book record be full and clear, and that there be in it as few erasures and corrections as possible. The JoTTENAL is used to transfer the Day-Book- entries to the Ledger. In the example here given, care has been taken to explain, in each case, the reasons for 14 INSTRUCTIONS FOR SET L deciding upon the debits and credits. This is to aid the student on his mental processes, and to show him the importance of referring constantly to the principles as laid down. He will not, of course, copy these explanations, but accept them as the order of reasoning to be adopted in the journal entries hereafter. As he ioumalizes the entries, he will check them off in the Day-Book, placmg the check-maik (V) opposite each entry directly after, and never before the joumahzing. Transferring to the Ledger is called "posting," and when an intermediate Journal is used, the work of posting is almost mechanical. The student should remember^ however, that no part of his work should be done mechanically-that is, without thought Of course, in the Journal entry the position of the record in the Ledger is decided,' and the actual transfer is a mere ratification of this decision; but unless the student keeps his mind fully upon his work, there is as great liabibty to err m posting as in any other part of the record. The first accounts in the Ledger should be those that represent the investment-in the case of a single owner, « Stock," and in case of more than one owner, the names ol the separate partners. This is, however, a matter of convenience, and not of necessity. The use of the word "Stock" in lieu of the proprietor's name is arbitrary, and is done in deference to custom. The following directions may be followed in writing np the Ledger : First. Open the accounts, writing the titles in the center of the line, as nearly as may be, in a bold, round, neat hand. Appropriate to each account the spaee necessary for the records which axe to appear therein.* The following division of space will apply to this set: Stock, 9 lines ; Cash, 13 lines ; Peter Cooper, 6 lines; Merchandise, 13 mes; K D. Stratton, 9 lines ; Bilh Payable, 9 lines ; Bills BeceivabU, 1 lines ; Expense, t ines ; E. G. Folsom, 6 lines ; J. D. Comstoek, 6 lines; Loss & Gain, 7 lines; Balance, 10 lines. This appropriation covers not only the necessary lines for the record itself, but also room for ruling up the closed accounts and bringing down the balances. Second. Begin with the first account in the Journal : see if the amount opposite is in the debit or the credit column, and take it to the corresponding side of the Ledger, usmg as an explanation, the opposite Journal entry. This explanation, though not for all purposes the best, is yet a fair indication of the transaction, and is ordinarily sufficient. The use of the prefix " To " on the debit side of the Ledger, and " By " on the credit side is customary, but not necessary. If used at all, however, it should be uuiformly used. Take the journal-entries in their course, carrying the amounts to the proper sides of the proper accounts, as indicated, writing, in every instance, the journal-page in the ledger- column for that purpose, and check-marking the entry by writing the page of the Ledger opposite the journal-entry, immediately after the posting. The check-marks wiU thus serve as a guide in reviewing the work, and will enable the accountant to leave and return to his work at any time without danger of confusion. Of course, when the posting is complete, the sum of the debit and credit entries in the Ledger will equal, just as the same entries equaled in the Journal. The question of the Trial Balance is simply a question of correct posting. • In buBtaesB It is Impowible to know how mnch space each account wffl reqnlre ta the Ledger but "may he aDDroimated n is well to give eufflcient space, thereby avoiding the frequent transfer of the acconot as weU as to „1T not appropriating .00 mnch for any one account Some prefer . synunetrical diysion of Oie Ledger without reference to the actual space required for each acco nt. 15 SET L— DAY BOOK. 2 *q ^lonn @ 1 200 2v)0 yds. Domestic Cassimcres Sold Digby V. Bell, for cash, 200 yds. Broadcloth - @ $4 SoM H. D Stratton. on %, 10 yds. Broadcloth - 6 @ u 9 Bought of Francis & Lontrel, on our note at 90 days 50 reams extra F(X)lscap 20 •* Superfine Letter @ $3.50 @ 3. (175 CO — 10 Accepted Peter Cooper's draft on us at 10 days' sight, favor of \V. H. Beebe - V 12 Sold S. S. Packard, on his note at 60 days, 10 reams Foolscap --....'. 6 " Letter @ $4. $40.00 (^ 3.50 17.50 u Bouglit, on our note at 40 days, 250 yds. Black French Cloths @ |4 // Paid cash for set of books for use of store '■ 16- Sold R. C. Spencer, for cash, 5 r(?ams Foolscap @ $3.75 V V Sold E. G. Folsom, on %, 20 reams Foolscap - 10 " Letter - . — 18 (Ob $4. @ 3.50 180 35 Received cash of H. D. Stratton, on % 2S Paid our acceptance, favor of W. H. Beebe, in cash Sold J. T. Calkins, for cash. 150 yds. Black French Cloths 25 @ $4.50 Bought of J. D. Corastock, on %, 4 dozen Soft Hats - - . 28 @ $24 Paid cash as follows : For clerk hire For rent of store, one month For gas bill 31 \ 60 100 4 OOOO 500 1400 800 40 235 500 57 1000 20 18 50 115 20 500 676 06 75 164 11141 25 16 SET. I.— JOURNAL. NKW YORK, January 1, 1880. Ca^h, Dr. --- To Stock " ;8^/r^ " is the title chosen to represent the proprietor— in this case, H. B. Bryant. The account is credited with the investment according to Principle 1. Cash is received by the concern, and is debited according to Principle 2. ft . — - — ^ — ^ —^- Stock, Dr. --- __.-.--. To Peter Cooper - - - - Stock \i debitel for the liability assumed by the concern {Prill. 1\ Petsr Go>per is credited, because the concern has assumed to pay him a certain amount, and is therefore indebted to him {Prin. 5). s Merchandise, Dr. --- -- To Cash There has been an outlay for merchandise and the account is debired for the amount (Prin. G). Cash was paid out, and is therefore credited {Prin. 2). 5 ■ Cash, Dr. - To Merchandise - - - - Cash is received and therefore debited {Prin. 2). Merchandise causes returns, and is therefore credited {Prin. 6). H H. D. Stratton, Dr. - - To Merchandise - - - - H. D. Stratton, Dr. {Prin. 5). Merchandise, Cr. {Prin. G). g Merchandise, Dr. --- --_ To Bills Payable - - - - Merchandise, Dr. {Prin. 6). Bills Payable, Cr. {Prin. 4)- 10 Peter Cooper, Dr. - ----- To Bills Payable - - - - Peter Cooper is here debited because we have canceled our indebtedness to him by promising to pay the amount to another person whom he has authorized to receive it {Prin. S). Bills Payable is credited for our new liability thus assumed {Prin 4)' The only change wrought in our affairs by this transaction is in the character of the liability. For important reasons, a promis sory note is more desirable to the holder than is a personal account In the former case, the indebtedness is acknowledged ; in the latter it is assumed. 22 Bills Receivable, Dr. To Merchandise - - - - Bills Receivable, Dr. {Prin. 3). Merchandise, Cr. {Prin. G). Dr. Cr. 5000 500 1400 800 40 235 500 5000 500 1400 57 50 8532 50 17 800 40 235 500 57 8532 50 50 4 6 2 4 9 4 4 10 8 2 SET L-JOURNAL. XEjy YORK, Jauiiarij 14, JSSO. I I II II ' "'-' " Amounts brought forward // Merchandise, Dr. --- To Bills Payable - - - Merchandise, Dr. {Prin. G). Bills Payable, Cr. {Prin. 4). lo — Expense, Dr. -- To Cash - - - ^ - Expense, Dr. {Prin. (i). Cash, Cr. {Prin. ;?). JO Cash, Dr. ---- To Merchandise - - - Cash, Dr. {Prin. 2). Merchandise, Cr. {Prin. 0). 2S E. G. Folsoni, Dr. ------- To Merchandise - - - E. G. Folsom, Dr. {Prin. 5). Merchandise, Cr. {Prin. 31 31 31 31 31 To Md«e. Cwh V. r>. Stratroii - - - Bills Receivable - - E. G. Fol«»om - - - jA l2 L5 l7 l9 1333 4429 20 S7 115 50 75 50 1880 Jan. n (i 3i 81 31 By Bills Riyable - - - J. D. Comstock - - Stock LlO Ll 1235 96 4624 75 5955 75 5955 75 I ... ■ 28 JL^J^ PRACTICAL EXERCISES.~FIRST SERIES. PRACTICAL EXERCISES. [To be written up after the manner of Set I.] Transactions.— First Series. lA^w. /.—Commenced business with a cash capital of $6000. Paid for books and stationery for use of ofSce, $25. ^.— Bo't of W. E. Crocker, for cash, 100 brls. Flour, @ |8. Sold Wm. A. Miller, for cash, 60 brls. Flour, @ $8.25 Sold B. Horton, on his note at 30 ds., 10 brls. Flour, @ $8.50. ^.— Bo't of A. S. Gladwin, on %, 1000 bush. Wheat, (fib $1.25. Sold J. L. Hunt, for cash, 125 bush. Wheat, @ $1.30. ^.— Sold E. C. Packard, on %, 200 bush. Wheat, @ $1.50. S. ^Paid cash for 1 month's rent of store. $60. ^.— Sold T. M. Peirce, for cash, 300 bush. Wheat, @ $1.45. Bo't of I.. L. Williams, on our note at 30 ds., 200 brls. Flour. @ $8.20. ,5.-Sold B. Wise, for cash, 100 brls. Flour, @ $8.50. Sold A. C. Randall, for cash, 50 brls. Flour, @ $8.45. /^.— Paid cash for gas and coal, $17.50. • /^,_Sold H. Ranney, on his note at 60 ds., 50 bis. Flour, @ $8.50. /J. -Bo't of M. Halladay & Co., on %, 300 brls. xxx Flour, @ $8.60. Sold H. M Monsanto, for cash, 50 brls. xxx Flour, @ $8.75. ; /^._Sold L. S. Metcalf, on %, 150 brls. xxx Flour, @ $8.80 Rec'd of E. C. Packard, cash in full of ^,$300. ^^.--Sold A. S. Hewitt, for cash, 100 brls. xxx Flour, @ $8.75. ^/.— Bo't of H. W. Bryant, on % , 500 bush. Wheat, @ $1.30. . ^^.— Sold T. S. King, for cash, 300 bush. Wheat, @ $1 50. ^J.— Pai4 A. S. Gladwin, cash on fc, $500. Sold J. E. Morris, for cash, 50 bush. Wheat, ' ' @ $1.50. ^^.— Paid cash for services, $50 Sold E. C. Packard, on %, 50 bush. Wheat, @ $1.50; 30 brls. Flour, @ $8.50. ^^.— Received of B. Horton, cash in full of his note of Jan. 2, $85 Inventory of goods remaining unsold Jan. 31 10 brls. Flour, @ $8.50 85 475 bush. Wheat, @ $1.30 617.50 $702.50 29 f ;•* *>. n PEACTICAL EXERCISES.— FIRST SERIES. Face of Ledger, Jan. 31. Dr. 152 6920 10505 510 500 6:30 1320 20637 50 50 Stock ... - Expense - - - Merchandise Cash - - - . Bills Receivable A. S. Gladwin - E. C. Packard - Bills Payable - M. Halladay & Co. L. S. Metcalf - H. W. Bryant - Or. 6C00 6580 1452 85 1250 300 1640 2580 650 20537 50 50 Resources and Liabilities, Jan 31. Resources, Merchandise - - - Cash Bills Receivable - - E. C. Packard - - - L. S. Metcalf - • - 702 9052 425 330 1320 11830 50 50 Liabilities, A. S. Gladwin Bills Payable M. Halladay & Co. - . . . - H. W. Bryant Stock ; - - *ll% 750 1640 2580 650 6210 11830 QUESTIONS FOR REVIEV/. 1. Upon what does the excellence of a Set of Books depend in great measure t—2. What should be the character of the penmanship?—^. What as to arrangement ? — >i. What is an important consideration in placing figures in the money column ?— J. What may be said as to arrangement of .^descriptive matter in the Day-Book ? — 6'. What is the primary object of form in Book-keeping?— \7. What can be said of the Day-Book in its relatibn to the entirety of business record ?— ^. What is the fourth step ?— 45. Is this necessary ?—J^\ What is accomplished by it?— 52. What is the fifth step?— 52. What is the effect of transferring the results of the Loss & Gain account to Stock account or Partners' accounts ?-5/ Exchanged notes with Digby V. Bell for our mutual accommodation, each drawn at 30 days 8 v Sold J. H. Goldsmith, for cash, 50 sets Spencerian Writing Books - - - - @ 85^ 25 *' Bryant & Stratton's Book-keeping - - @ $1 . 12 - 5 reams Letter Paper @ $3 1 doz. Gold Pens - - - @ $1.50 - 42.50 28.00 15.00 18.00 34 6956 75 72 20 212 62 50 500 103 6926 50 50 26 SET II.— DAY-BOOK. NEW YORK, February 10, 1880. V V V Amount brought forward — i6? Bought of Wm. B. Astor, Stoce and Fixtures, at ' . . . Paid him, Cash IIO^^ Bond and Mortgage for balance 9000 — $10,000 6926 10000 25 -12 Sold J. T. Calkins, on his note @ 20 days, 50 yds. Broadcloth @ $4 200 U v/ V V Bought of S. S. Guthrie, Buffalo, on our acceptance at 60 days, favor of A. M. Clapp, 200 brls. Flour @ $8 1600 15 Sold D. L. Wing, Albany, for cash, 50 brls. Flour @ ^8.25 412 50 16 Paid Drayman's charges in full to date . IS v/ H. B. Bryant has made the following additional investment of Resources be- queathed him by a deceased uncle, 50 shares Union Bank Stock, valued at $105 - $5250.00 Cash deposited in Union Bank 1000.00 20 Sold for cash to B. McGann, 20 shares Union Bank Stock - @ $108 6250 2160 v/ v/ v/ \/ Sold John W. Gantz, 100 yds. Black French aoth Q ^5.75 Received in payment. Cash .--- Balance to his account J?;200 375_$575 575 on Paid for repairing store, per order on E. G. Folsom -i?/ Received cash for 5 per cent, dividend on 30 shares Union Bank Stock . ^8 65 150 Paid clerk's salary to date Paid store rent to date $ 50 100 150 28493 1 75 35 SET II.— JOURNAL. NEW YORK, February 1, 1880. Dr. I 4 2 6 10 4 11 Sundries - - Cash - - - Bills Beceivable Merchandise - E. G. Folsom - H. D. Stratton To Sundries, too ♦ To Bills Payable - " J. D. Gomstock « H. B. Bryant - 4429 57 1333 115 20 /# Sundries - Cash - - S. S. Packard To Merchandise ^ Cash To H. D. Stratton S Merchandise ----- To Sundries - - - To Cash - - - . " E. G. Folsom - - ' ** Ivison & Phinney Merchandise To Dawson, Warren & Hyde, 75 50 50 20 52 20 212 50 62 Bills Receivable, To Bills Payable - 8 Cash To Merchandise - - - - 50 500 103 6926 50 25 Cr. 1235 96 4624 72 75 20 50 50 112 62 50 50 500 103 6926 50 25 ♦ The term " Snndries," as here nsed, is not essential to a complete Jonrnal record ; It is simply a convenient form of expression, rendering the transfer to the Ledger a little more easy to the teginner. When nsed as a debit it implies that sundry accounts— to be enumerated thereafter— are to be debited, and contrariwise when used as a credit. Hence, the term " Snndries to Sundries " is simply an indication of the real entry which Is to follow, and which will be composed of snndry debits and sundry credits. There are, In fact, four kinds of journal entries, each requiring a different expression, viz. : 1. Those having one debit and one credit ; 2. Those having one debit and several cr«dit« } 3. Thosfl having several debita and one credit ; 4. Those having several debita and several credits. 36 I SET II.— JOURNAL. NEW YORK, Febrtmry 10, 1880. 2 Dr. Or. Amount brought forward 10 12 2 13 3 .4 14 2 1 15 16 2 15 4 2 17 14 6 2 15 14 2 Bills Receivable Merchandise Cash Expense Cash Sundries - - Cash - - - John W. Gantz Expense Cash Expense Real Estate To Sundries - - - - To Cash " Mortgage Payable* - U To Merchandise - M- ■ To Bills Payable - - - 6926 10000 25 15 To Merchandise - .16 To Cash ^18 Sundries To H. B. Bryant - - - - Union Bank Stock --- Union Bank .--- W To Union Bank Stock S4 To Merchandise - S6 To E. G. Folsom - - - - 37 To Union Bank Stock - 28 To Cash 200 IGOO 412 5250 1000 2160 50 6926 25 1000 9000 200 1600 200 375 65 150 150 28493 412 6250 2160 575 75 65 150 150 50 28493 75 * Mortgages Payable are the same in effect as Bills Payable : and the question as to keeping separate accounts must be iedded by the persons interested. The distinction is sufficiently marlied to make the separation proper. 37 Br, Dr, 18B0 Feb. 1 1 2 8 15 90 84 To Saudries - - Md9e. - - - H. D. Strattuu Md^e. - - - Uaion Bank Stock - Mdse. Union Bank Stock T495 75 SET II.— LEDGER. H. B. Bryant. 1880 Feb. 1 13 Dr. \m) Feb. 1 44 7 kt IS To Sundries - - Bills Payable Mdse. - - • 157 50 •J Cash. 1880 1 4429 75 Feb. 3 "l SO t. 10 1 20 4i Id 1 103 50 i> 28 2 412 50 2 2160 2 200 2 150 By Sundries - - - - ' 10814.76 By Mdfe. - - Rtal Estate - - - Expense - - - - *• ... 1206 Bills Receivable. 1 57 50 1 500 2 200 1 8 Cr. 4624 0250 75 Cr, 1 50 2 1000 2 5 2 150 Cr. Dr. 1880 Feb. Dr. Dr. To Mdse. SET II.— LEDGER. 9 S. S. Packard. lO Ivison & Phinney. 1880 Feb. By Mdse. 11 Dawson, Warren & Hyde. 1880 Feb. By Mdse. 12 Cr. Cr. 112 50 Cr. 62 50 Dr. Real . Estate. Cr. 1880 Feb. 10 To Sundries 2 10000 I i Dr. 1S80 Feb. 1 ti 3 ii 5 44 14 To Sondries Dawson, W. & Hyde Bills Payable 8308 50 Dr. M erchandise. 1880 Feb. To Sundries Dr. 1880 Feb. To Sundries Dr. Dr. 1880 1 1333 60 Feb. 1 1 212 50 i« 8 1 62 50 ifc 12 2 1600 , 15 2^ H. D. Stratton. 23 188C Feb. 6 E. G. Folsom. 115 1880 Feb. 3 25 Bills Payable. 1880 Feb. 1 7 14 8 J. D. Comstock. 1880 Feb. By Sundries 38 1 1 2 Cr. 1 72 1 103 2 200 2 412 2 575 By Sundries - - - - Cash - - - - . Bills Receivable - Cash Sundries ,^-^3 By Cash By Mdse. Expense - - - -. 116 By Sundries - - - - Bills Receivable - ^^^' • - • "mm 50 50 Cr. 20 Cr. 60 65 Cr. 1235 500 1600 Cr. 96 Dr. Dr. 1880 Feb. 16 it 25 44 28 13 Mortgage Payable. 1880 Feb. 10 By Real Estate 14 Expense. To Cash - - - E. G. Foleom Cash - - - S20 Dr. 2 2 8 5 65 150 15 Union Bank Stock. 39 Cr. Cr. Cr. 18S0 Feb. 18 To H. B. Bryant - - - 2 5253 1880 Feb. 20 27 By Cash - - 4k _ . S310 2 3 2160 150 Dr. 16 Union Bank. Cr. 1880 Feb. 18 To H. B. Bryant - - - 2 1000 Dr. 17 John ^^/'. Gantz- Cr. 1880 Feb. 34 To Mdse. 2 375 I »" it SET 11.— GENERAL STATEMENT. GENERAL STATEMENT. In the foregoing Ledger we have the current condition of H. B. Bryant's bnsiness on the 28th of February, as far as that condition can be shown by the Ledger, without closing the accounts. This part of the labor we leave for the student; but shall give, in this con- nection, a statement which will afford him the required aid. It is essential that the principles of this statement, as also its form and method, be fully mastered. ' Double Trial Balance. Facs o» DfPrBBSMCES. 1 Lesoeb. 0290 75 7405 75 757 50 757 50 1845 50 3208 20 115 50 • 52 52 10000 • • 10000 220 220 2940 5250 1000 1000 875 75 i 375 76 28480 28493 Ledoxb Accounts. H. B. Bryant Cash Bills Receivable. Merchandise H. D. Stratton - - - - E. G. Folsom Bills Payable J. D. Comstock - - - - S. S. Packard. Ivison & Phinney - - - Dawson, Warren & Hyde - Real Estate. Mortgage Payable - - - Expense Union Bank Stock - - - Union Bank. John W. Gantz. - Equilibrium - - - - Fack of Ledger. 10874 1205 1363 20 115 3335 96 112 62 9000 2310 28493 50 50 75 DlFVEBBNOES. 10874 3335 96 112 62 9000 23480 75 50 50 75 Inventory of Unsold Property. Mdse., viz. : 140 yds. English Broadcloth @ | 3.00 200 " Domestic Cassimere @ 1-00 2 dozen Soft Hats @ 24.00 15 reams Foolscap Paper ----- - - @ 8.50 100 sets Spencerian Writing Books - - - @ 75 38 Gold Pens • - -, - - - - - - - - @ ^-^ 150 brls. Flour --..------ @ 8.50 80 shares Union Bank Stock @ l^Sa Store and Rxtures valued at 420 200 48 52 50 75 47 50 1275 2118 3100 12000 17218 SET II.— GENEBAL STATEMENT. Statement of Losses and Gains. -Business Accounts. MeBCHANDISE Seturru from sales 1363.00 Value qf unsold {per Inventory) - 2118.0 Total returns 3481.00 Outlay ^08^ ' CkAn I I Real Estate V Value qf unsold 12000.00 Outlay 10000.00 Gain Expense - - - • ,- - - Outlay Union Bank Stock - - - Returns from salts and dividend - 2310 00 Value of unsold 3100. 00^ Total returns 5410.00 OuOay SggQOO Gain Net Gain Losses. 220 2S12 2432 GAiira. 272 50 50 50 2000 160 2432 50 Statement of Resources and Liabilities. -Financial Accounts and Inventories. i. From Inventories of Umold Property, Merchandise Union Bank Stock Real Estate - - Besoubcks. 2. From Ledger Accounts. Cash AmourU received • Amount paid out Balance on hand ■ 7495.75 1206.00 Bills Recefvablb - - - Bills Payable . - - - J. D. Comstock - - - - S. S. Packard - - - - Ivison & Phinney - - ^- D vwsoN, Warren & Hyde Union Bank - - - John W. Gantz - - Mortgage Payable H. B. Bryant - - Notes received {none disposed of) - JVbfe* ismed {none redeemed) - - We owe him Jleowesus^ We owe them " We owe them Deposits in our faror He otves us - • ' " Mortgage issued and outstanding • Bis net investment ♦♦ " gain - - fli« present interest 10874.75 2212.50 2118 3100 12000 6290 757 52 1000 375 25693 75 50 25 LlABILITOtS. 3335 96 112 62 9G00 13067 25693 50 50 25 25 40 41 PKACTICAL EXERCISES.-SECOND SERIES. PRACTICAL EXERCISES.— SECOND SERIES. Ledger Results. mi ! ! PRACTICAL EXERCISES. [To be y, -itten up after the maimer of Set II.] Transactions.— SECOND Series. This is a continuation of the business represented in First Series, page 29, beginning with the lesources and liabUities as shown in the Statement on page 30. JTed. /.-Bought of G. A. GaskeU, for cash, 200 sacks Java Coffee, 13000 lbs.. @ W. Sold A. B. Smith, on %, 10 sacks Coffee, 643 lbs., @ 18^/. ^.-Accepted H. W. Bryant's draft, favor W. A. Miller, at 10 ds. sight, for amount of his account against us. ^.— Sold A. C. Lobeck, 200 bush. Wheat, @ |1.56 : Received of him cash on %, $100. Sold Benj. Wise, for cash, 10 sacks Coffee, 651 lbs., @ 18^. ^.-Bought of M. Halladay & Co., on %, 200 brls. xxx Flour. @ $8.75. Accepted M Hal- laday & Co.'s draft on us, at 20 days sight, favor C. Claghorn, for $2500. Paid cash for store rent, $60. ^.-Sold M. C. Rhodes, for cash, 20 sacks Coffee, 1300 lbs.. @ 18^ Sold J. C. Bryant, on his note at 10 ds. , 175 bush. Wheat. @ $1.57. 7.— Bought of Z. Richards, on %, 1000 bush. Wheat, @ $1.40. S —Paid cash for our note of Jan. 6., fav. L. L. Williams, due this day, $1640. /^.-Discounted our acceptance, favor M. Halladay & Co., of the 10th inst.. paying net amount in cash. Face of acceptance, $2500 ; discount for 1& days, $7.50. /^ -Sold W. A. Miller, 500 bush. Wheat, @ $1.50 : received cash, $2.")0 ; balance on %, /J -Paid clerk hire, in cash, $50. H. Ranney^s note of Jan. 12 has been discounted, the net amount being paid in cash. Face of note, $425 ; discount, 31 days, $2.20. /J.-Receiv.-^ cash of E. C. Packard, in full of fc. Paid A. S. Gladwin, cash on %. $250. Paid our acceptance, favor W. A. Miller, of $650, in cash. /6 -Bou-ht of M. Halladay & Co. 300 brls. xxx Flour, @ $8.70 ; gave in payment o^'' mg^^* draft on L. S. Metcalf for amount of his indebtedness ; cash for balance. - - - - bold for cash. 100 sacks Coffee, 6500 lbs., @ W. fS. -Sold Chas. aacrhom, for cash, 100 brls. xxx Flour, @ $9. Accepted A. S. Gladwin's draft favor W. G. Drummond, at 10 ds., for balance of his account. ^^.-Drew on A. B. Smith, favor M. Halladay & Co., for amount of Smith's account, the same to be applied by M. H. & Co. on our %. ^/.-Accepted Z. Richards' draft at 30 ds., favor Geo. S. Bigelow, for $1000. ^.5.— Sold for cash. 200 brls xxx Flour, @ $9.12. ^^.__Paid cash for our acceptance, favor W. G. Drummond, $500. Dr. Inventory of goods remaining on hand. Feb. 28. 10 brls Flour. @ $8.50 " ' ^ 600 bush. Wheat, @ $1.45 ?J^ 60 sacks. 3906 lbs.. Coffee, @ 17^ ^64.02 200 brls. XXX Flour, @ $8.75 ^^^" $3469.02 42 8672 14465 699 5290 2618 312 110 1000 2 500 33670 50 48 75 96 20 89 Stock - • - Merchandise - Cash - - - - Bills Receivable Bills Payable - M. Halladay & Co. A. C. Lobeck Expense - - - Z. Richards - Interest - - - W. A. MUler - Or. 6210 5765 89 9142 50 425 6290 4330 100 14C0 7 50 33670 89 Resources and Liabilities, Feb. 28. !2iesou7^ces , Merchandise . - - Cash - . - - - Bills Receivable A. C. Lobeck - W. A. Miller - - - • 8469 02 5322 98 274 75 212 500 9778 75 Ziiabilities. Bills Payable M. Halladay & Co. - . . - Z. Richards Stock •li?.?! AUXILIARY BOOKS. The Auxiliary Books, given on the following pages, should accompany the transac- tions of Set II. They are those in most common use, viz. : Cash-Book and Bill-Book. The forms are simple and suggestive, and the convenience of the books readily apparent. a'he Cash-Book differs from tlie Cash account in the Ledger in its fuller explanations, and in the fact that it is closed more frequently for the purpose of exhibiting the balance. Ordinarily it is closed at the end of each day, in order that the amount shown to be on hand should be compared with the amount really on hand, and the discrepancy, if any, accounted for. The "making up of the Cash account" is one of the important duties of the accountant. The Bill-Book constitutes a useful memorandum of paper maturing, either for or against us, and is carefully kept by concerns where notes and drafts form a part of the business machinery. The forms here given are the ordinary forms. 43 I il HA ill 1 I >!•. ih AUXILIARY BOOKS FOR SET IL fdeceired. C ASH- Feb. 2 8 15 ao 24 27 To Stock - - - Mdse. - - - H. D. Stratton Amount invested - Sold S. 8. Packard Received on % Mdse. Sold J. H. Ooldamith Sold D. L. Wing - - Union Bank Stock - - Sold B. JfcOann - - Mdse. Sold J. W. Oantz - Union Bank Stock - - Jtee'd/or Dividend - To Balance From old % 4429 20 20 103 412 2160 200 150 75 50 50 7405 7485 75 6280 75 75 BILL- BOOK MO. WHEN RECEIVED. DRAWER OR ENDORSER. DRAWEE OR MAKER. IN WHOSE FAVOR. FOR WHAT RECEIVED. WHERE PAYABLE. 1 s 3 Feb. it ti 1 7 13 B. McGann. H. B. Bryant. H. B. Bryant S. 8. Packard. Digby V. Bell. J. T. Calkins. H. B. Bryant, da do. do. do. Investment. Accommodation. Merchandise. Onr Office, do. do. do. do. BILL- BOOK NO. WHEN ISSUED. DRAWER OR ENDORSER. DRAWEE OR MAKER IN WHOSE FAVOR. FOR WHAT GIVEN. WHERE PAYABLE. 1 3 3 4 5 Jan. It tt Feb. »t 9 14 10 7 14 Francis & Loutrel. Smith & Co. Peteir Cooper. Digby V. Bell. S. S. Guthrie. H. B. Bryant, da da da da da do. da do. Francis & Loutrel. Smith & Co. W. H. Beebe. Digby V. Bell. A. M. Clapp. Merchandise. do. To balance %. Accommodation. Merchandise. College Bank, do. do. do. do. do. do. do. do. AUXILIARY BOOKS FOR SET IL BOOK. ^aid out. Feb. (t 3 10 16 28 By Mdse. - - Real Estate Expense - - - - BoH qf Ivison dk Phinney - - - - - - Paid on store and fixtures - - - - - - Pcdd drayman infuU - - - - *' Paid derk's salary and store rent Balance Anunmt on hand 50 1000 5 150 1205 • 6S90 \ 7485 i 1 75 RECEIVABLE. ^ DATE. TIME. WHEN DUE. AMI. WHEN AND HOW Tmt. Month. Y^r. J«n. Feb. Mar. Apr. May JOM July A««. Sep. Oct. Not. Dm. DISPOSED OF. 1880 Jan. 13 eods. 1880 67.50 1880 Feb. 7 30 ds. 1880 w • > BOO 1380 tt 13 sods. 1880 n \ . 300 •■"<, \ PAYABLE, DATE. TIME WHEN DUE. AMI. WHEN AND HOW Yew. Month. Year. IS Feb. Mar. Apr. A May JOM Jnly Aug. Sep. Oct. KoT. Dm. REDEEMED. 1880 1880 1880 1880 1880 Jan. It It Feb. u 9 14 10 7 14 90 ds, 40 ds 10 ds aOda 60 ds 1880 1880 1880 1880 1880 1000 600 600 1600 Jan. 38 Paid. 45 II* QUESTIONS FOR REVIE^V. 1. Where are Ihe Resources and Liabilities shown at the commencement of Set II obtained ?— 2. Can Gains and Losses be shown at the commencement of business?—^. Why not?— 4. What has become of the gain shown to have been realised in the month of January ?— 5. How does the interest of the proprietor at the commencemeni; of Set II vary from his interest at the commencement of Set U—C. What has effected this difference?— 7. When is it proper to increase the credit side of Stock account ?~5. When the debit side ?— 9. Is the term " Sundries " used as a Ledger account t—10. For what purpose is it used?— ii. How will its convenience be most apparent ?— if . How many kinds of Journal entries are there, and what are they?-i.?. What is meant by the term -Mortgage Payable"?— I4. What is the difference in effect between Mortgages Payable and Bills Payable 1—15. Is there any real difference ?—i(). How many Ledger accounts are used in Set II?— i;. How many of them are can- celed ?—i.b*. WTiich of these Ledger accounts exhibit Resources ?—i5. Which Liabilities ?—^0. Which gains?— ;?i. Which losses?— -e^. What is the distinction between the accounts of "Union Bank" and "Union Bank Stock"? — ^5. What will be the first step in ascertaining the grain or loss in Merehandise account ?-^^. If the net cost of merchandise exceeds the value of merchandise unsold, will the account show a gain or a lossf-'25. Why do you carry the value of merchandise unsold to the credit of the Merchandise account ?—i?6. Why make the entry in red ink?— ^7. Can you ^ve a rule for the use of red ink entries in the Ledger t-2S. In transferring a red ink entry to another account why do you always carry the amount to the opposite side of the new account 1—29. What Ledger account in Set II corresponds with Stock account in Set U-30. What does H. B. Bryant's account represent, as it stands on the Ledger?- 5/. How much docs it fail to show his interest in the business on the 28th February?- 5Z Where will you get the amounts which will make up the difference?— 5^. Is it necessary that a "Loss & Gain" account should be opened?— 54. If not opened, to what account would it be proper to carry the losses and gains at the close of business ?—.?5. What advantages are gained by opening a " Loss & Gain " account t-SG. Is it necessary to open a Balance account?— J7. If a Balance account is not opened, how can the resources and liabilities be represented on the Ledger?— 55. What is the theory ot the "General Statement" as given in Set lU-39, What are the Auxiliary Books given in connection with this Set?-^^. For wliat purpose is the Cash-Book used?— 47. How often is the Cash-Book closed? -4?. With what must the difference in the sides agree?- 4/ Shipped per Peoples' line, and consigned to Sheldon & Co., Albany, to be Bold on our % and risk, 140 yds. EneUsh Broadcloth . . .@«3.50 490.00 200 « Domestic Cassimere . - .® 1-25 250.00^740.00 Paid drayage on same in cash :! 12606 1.00 >/ S Sold James Monroe, for cash, 2 doz. Soft Hats, ® $26 // A Received per N. Y. & E. R. R., from J. R. Wheeler & Co., Buffalo, to be oold on their % and risk, 500 bbls. Flour, invoiced @ $8.00 5000 bu^. Wheat . . ® ^'^^ Paid transportation charges, in cash 48 741 52 100 89192 26 SET HL— JOURNAL. NEW YORK, March 1, 1872. Sundries To H. B. Bryant . . . . Merchandise Union Bank Stock - - -' Real Estate ... - ^. - Cash Bills Receivable S. S. Packard Jno. W. Gantz Union Bank ff -- ~ -- - " — I •■■■■■' II I- ■ I- ■ H B. Bryant To Sundries Bills Payable . . . . J. D. Comstock . . . Ivison & Phinney . . Dawson, Warren & Hyde Mortgage Payable . - i -_ Shipment to Albany* To Sundries Merchandise . . . . Cash ^ Cash To Merchandise . - . - ^ // J. R. Wheeler & Cc's Consignment' To Cash 2118 3100 12000 6290 757 52 375 1000 25693 25 75 50 12606 741 52 100 39192 25 49 3335 96 112 62 9000 50 50 740 1 52 100 39192 25 SET III.— DAY BOOK. r ill s .YETT rOiJliC, March 3, 1872. / Sold S. R Gray, Albany, 50 sets Spencerian Writing Books @ %%f 44 . 00 15 reams Foolscap Paper @ $3 . 70 55 . 50 88 Gold Pens @ 1.50 57.00 156 500 96 4500 175 750/ 11900 1548 Received in Pay't Ivison & Phinney's Draft on us for $112 . 50 Oash for balance 44.00—156.50 50 « / »/ 4 Iteceived Cash for rent of ofl&ces in second story / ft ~ ■-" — Paid J. D. Comstock cash, in full of^ r >/ Sold Wm. H. Crocker, on his note at 60 days, 500 bbls. Flour (J. R W. & Co.'s Consignment) @ $9 Bills Receivable ... To J. R Wheeler & Co.'s Consignment // ^ M. B. Scott's Consignment . To Cash e Cash To J. R. Wheeler & Co.'s Consignment / / J, R Wheeler & Go's Cons't To Sundries* Storage and Advertising Commission . . . . J. R Wheeler & Co. . . r Shipment to New Haven To Sundries Merchandise . . . . M. B. Scott's Cons't . . Cash 112 44 500 96 4500 175 7500 11900 50 1548 26376 70 20 156 500 50 96 4500 175 7500 25 300 11575 900 640 8 26376 70 20 51 SET m.— DAY BOOK. XEfT TOBK, March 8, 1872, sf ^ Sold Charles Claghom, for cash, 2000 bush. Oats (M. B. S/s Consignment) @ 75J^ . 500 ** Wheat « " ^\^m 1500.00 750.00 ft Closed M. B. Scott's Consignment, and rendered him an Account Sales of the same. Our charges for Storage and Adyertismg nim Our Commission on Sales oaL 7)^ M. B. Scotfs net proceeds, remitted in cash JWi,!^ s/ 2250 2715 375 The steamer on which we shipped goods to Sheldon & Co., Albany, was ^ sunk by collision, and our goods, which were rescued m a damaged ^ condition, and upon which there was no insurance, were sold at ^ auction for cash — 12 s/ ' Received from C. S. Dole & Co., Chicago, to be sold on their % and risk, 500 bbls. Extra Superfine Flour, 1000 " Superfine Flour, 3000 bush. Rye. Paid Freight in cash 150 »/ IB Sold E. R Felton, at 30 days, on %, 500 bbls. Superfine Flour (C. S. D. & Co.'s Consignment), @ $8 . . 300 4000 9904 50 52 SET UL— JOURNAL. NEW YORK, March 8, 1872. Dawson, Warren & Hyde - To Cash rt ____^ Cash To S. S. Packard .... • 9 • Cash To M. B. Scotfs Cons't . . // M. B. Scott's Cons't To Sundries Storage and Advertising Commission .... Cash 10 Cash ToJ.W. Gantz . . . . ___ii Cash To Shipment to Albany* . IS * C. S. Dole & Co.'s Consignment To Cash 13 E.R Felton To C. S. Dole & Cc's Cons't 53 62 50 52 2250 2715 375 150 300 4000 9D4 62 52 2250 40 72 2602 50 375 150 25 75 300 50 4000 9904 50 i SET in.— DAY BOOK. JfEW TOBK, March 13, 1872. / / i / ,/ D. V. Bell has returned our note issued Feb. 7, and we have surrendered his of the same date and amount 15 Paid cash for Taxes on Real Estate 150.00 Also for Clerks' Salaries to date 125^00_ /f H. B. Bryant has drawn Cash for private use 500 275 500 f/ Received Cash of S. S. Packard for his note now due / / f7 57 Received Cash of J. T. Calkins in full for his note 18 Received advice from Cobb & Co., New Haven, of the sale of 150 bbls. Flour and 800 bush. Com, shipped them on the 7th inst., Net proceeds remitted in Cash 200 50 20 / Sold John R Penn, for Cash, 500 bbls. Extra Superfine Flour (C. S. D. & Co.'s Consignment) @ S9 1200 22 / Sold for Cash, to E. H. Bender, Albany, 30 shares Union Bank Stock @ $100 4500 3000 / 25 Paid our Note in Cash, favor of Smith & Co., due Feb. 26 . . 1000 . 00 Interest due on same to date — ^??- 1005 11238 83 33 54 SET IIL— JOURNAL. Mi ills ash ash ills ills iiip' ■ o. nio isli' 55 NEW TOBK, March 13, 1872. 4 Bills Payable . To Bills Receivable . . . 500 150 125 50C 57 200 1200 4500 3000 1000 5 50 83 33 i 500 275 1 500 67 200 1200 4500 3000 1005 Sundries Real Estate . To Cash Expense Private Account" // ToCa,sh Cash ..... To Bills Receivable . . . 77 50 Cash .....__..._.___ Cash .... To Bills Receivable . . . 79 Cash To Ship't to New Haven op To C. S. Dole & Co.'s Cons't Cash .... To Union Bank Stock . . on Sundries Bills Payable . , Interest .... To Cash' . 83 11238 11238 33 '■:t ii III / SET IIL—DAY BOOK. XEW TOBK, March 25, 1872, Paid cash for our Note of the 14th ult, at 5 mos., favor of A. M. Clapp, Face of Note iWn ^^'7 -o. 1 -J .... 1565.57 Cash paid Discount off to July 18 • • _^ii^ 1600.00 SET IIL— JOURNAL. NEW TOBK, March 25, 1872. // , Sold J. H. Goldsmith, for cash, / 500 bbls. Superfine Flour (C. S. D. & Co/s Consignment) @ $8 . 50 / // Accepted J. R. Wheeler & Co/s Draft on us at 3 days' sight . . . - 27 — — — Closed C. S. Dole & Co.'s Consignment, and rendered them an Account Sales— 3000 bush. Rye remaining unsold. Our charges for Storage and Advertising 50.00 Our Commission on Sales lonoi'I- C. S. Dole & Co/s net proceeds l^^l.^^ Paid our Note favor of Francis & Loutrel, in cash 1600 4250 11575 // \ / Ptemitted C. S. Dole & Co. cash to balance % 12450 235 Bills Payable To Sundries* Cash . . Interest . /^ Cash To C. S. Dole & Co.'s Cons't tf s/ J. R. Wheeler & Co. 1600 4250 To Bills Payable . .27 C. S. Dole & Co.'s Cons't To Sundries Storage and Advertising Commission . . . . C. S. Dole&Co. . . . ff 12081 31 Paid sundry Expenses this month, in cash 25 75 ' 42266 25 Bills Payable 11575 12450 1565 57 34 43 4250 235 To Cash tf C. S. Dole & Co. To Cash 81 Expense To Cash 12081 11575 50 318 75 12081 25 25 75 42266 235 12081 75 25 25 : 42266 1 25 , ».a>,i«,n*.nt to Albany" Is a name given to this venture to distinguish it from Merchandise NoT« or K"™"*^-' l^^r^^l^i^^^ invested the proceeds in this venture. to Store. It is as though we had sold the ^fwhf^dise »na i^^ f accounl^-although it is usea ' "•^ ^rt:^.rof tSJ^fi^r^^^ mstead, therefore, or denting to represent the property of that firm, ^°^*^"^*'' nronertv we debit it only with what it has cost us. ^'^r^lZ:;:TrlTTr^l'^r^^^ we^we them. H we a«.pt or pay the ^ accounts. The net result, so ftr as we are ^^^^f^^'^J.^Xl^'lTlZn^^^ The Consignment account, for storage, Advertisin,, and Commission we ^-^^ ^^^^^J r. feeler & Co.'s account. "rH:r^rtr^rhipm:n?ro"i^^^^^ ^epre^I^ve account. The diflfereuce will he, in this case, a Iobb. 56 « It is ordinarily best to keep the proprietor's " Stock" or Capital account sacredly to its purpose-that of showing the net investment. If, therefore, he has dealings with the concern as a private individual, such as drawing out money tem- porarily, or negotiating any personal matter, such transactions should be recorded in a special account, which should be treated and considered the same as any personal account. ^ ,., u , ^ ,, ^ v v 7 a:i accounts representing Cash-viz., Personal accounts, Bills Receivable and BUls Payable- should, like Cash, be debited and credited with the expressed value. All accumulations in the way of interest, or depreciations from any source, should be shown in other accounts. In thi. case the face of the note Is $1000, but the worth of the note, with theaccumu- lated Interest, is $1005.83 ; and this is the amount we must pay to cancel it. We therefore debit Bills Payable with the fiice ofthenote, and Interest with the amount we pay for interest. s In this case the note is worth less than its expressed value, as it has yet a certain time to mature, and the use of the money is worth something. This use is estimated at $34.43 ; therefore, in redeeminsr the «ote at this time we are allowed this amount, which being deducted from the face of the note, leaves us to pay in cash $1565.5. We debit Bills Payable with the face of the note, and credit Cash for the amount paid, and Interest for the Uiffereuce-that being the amount pro- duced by Interest, or by paying our note before it is due. 57 i: ■i \K-i SET III.— STATEMENT. STATEMENTS. Trial Balance. H. B. Bryant Merchandise (Unsold, $37.50) Union Bank Stock Real Estate (Unsold, $12000) - - Cash --- Bills Receivable Union Bank .---.----■- Bills Payable Mortgage Payable .--.-- Ship't to Albany Ship't to New Haven E. R. Felton Interest (Accrued on Mortgage Payable, $84) Storage and Advertising Commission Expense Private Account 12600 2118 3100 12150 30421 5257 1000 3335 741 1548 4000 5 200 500 76983 25 50 70 83 28 Statement of Losses and Gains. Losses. Merchandise Union Bank Stock - - Real Estate Shipment to Ai^any - - Interest Stor.\ge and Advertising Commission Expense ------ Shipment to New Haven Net Loss 232 100 591 55 200 348 1527 40 (0 10 25693 1848 3000 500 19083 757 14910 9000 150 1200 34 115 691 76983 25 50 60 60 43 28 Gains. 350 115 691 371 1527 I 10 10 Statement of Resources and Liabilities. Resources. Liabilities. Merchandise . . - Real Estate Cash Bells Receivable - -■ Union Bank Bills Pay.\ble ------- Mortgage Payable Interest Payable E. R. Felton - H. B. Bryant's net investment 58 37 12000 11337 4500 1000 4000 32875 50 65 15 11575 9000 84 12216 32875 15 15 SET III.— CLOSED OUT. THE BUSINESS CLOSED OUT. The foregoing statement is presumed to be in accordance with the results shown in the student^s Ledger, and affords all the necessary material for closing the business in due form. The main facts only are given here, leaving it for the student to follow the analytical method as presented in Set II. An important feature of this set is the mcurrring of a net loss, thus decreasing the investment, instead of increasing it as in the previous sets. Another feature is the recognition of accumulated interest on Mortgage Payable, thus instancing a liability not as yet shown in the Ledger. [The inventories, instead of being presented in detail, are simply noted in the Trial Balance in connection with the proper accounts.] The use of this item in giving the true standing of the Interest account is important in all its applications. The proprietor of the business now proposes to reduce his resources to cash with a view of engaging in a new business with a partner. The transactions which follow are to this end. 'transactions. ^pr, /. — Invested in the concern of Bryant & Stratton, cash, $10,000.* ^.—Received cash of E. R. Felton, in full of %. S. — Sold Bryant and Stratton, store and fixtures for $12500 ; transferred mortgage, $9000 ; interest on same, $84 ; received balance in cash, $3416 Redeemed our acceptance favor of J. R. Wlieeler & Co., $11575 ; gave in payment, W. H. Crocker's note, due May 7, $4500 ; less discount for 34 ds., $29.75 ; cash, $7104. 75.t /O, — Sold James Atwater, Lockport, for cash, 50 sets Spencerian Writing Books, @ 80^. /J.— Deposited cash in Union Bank, $1688.90. SO, — Drew from Union Bank and invested in Bryant & Stratton's concern, $2688.90. FINAL RESULT. Besources. Bryant & Stratton's concern $12688.90 LiabUities. H. B. Bryant $12688.90 * The record of this transaction vdll exhibit in a clear light the relation of the proprietor to his business. This is the business of H. B. Bryant, the results of which are to be transferred to the new concern of Bryant & Stratton. There are two ways of viewing the transaction : J, It may stand as an investment, being debited as such under the name of '• Bryant & Stratton," or "Mercantile Enterprise," or, 2, it maybe considered as capital withdrawn, and be charged to H. B. Bryant's Stock account. The subsequent withdrawals being recorded in the same manner, H. B. Bryant's account will be closed as soon as the resources are all withdrawn. In case the former method is adopted, the business would be kept open merely to record the yearly profits on the new investment. + W. H. Crocker's note, which we hold, is worth its face, less the interest for unexpired time; hence we pay for our acceptance, 111575, and for interest on Crocker's note, $29.75. 59 n li ,;,., i '! I '•1. SET IIL-COMMISSION COMMISSION AUXILIARIES. The books and forms here given will explain themselves in connection with the 1872 J. R. ^Vheele^ & Co.'s Mar. 3 500 5000 " 6 500 5000 Per y. T. and E. B. R. To Cash Paid Trangptn Ckarges - Storage & Advkbtising Commission 2'^foan$moo - • - - J. R Wheeler & Co. - - Net Proceeds Jhie by Equation Mar. 30. 100 25 300 425 11575 12000 187^ / / ^ /J M. B. Scott's Mar. 5 9 800 800 2000 2000 500 P«r Steamer New World. To Cash Paid Frdght and Iru. Storage & Advertising Commission - - - 2%% on $2890 - - Cash NH Proceeds remitted 500 175 40 72 25 287 2602 2890 25 75 C. S. Dole & Co.'s Mar. 12 500 1000 3000 ** 27 500 1000 3000 Per People*8 Line. To Cash Paid Freight - - Storage & Advertising Commission - - - On tm50@ 2)4% C. S. Dole & Co. Net Proceeds Jhte lyy Equation Mar. 29. 300 50 318 75 668 12081 75 25 -mw ~&r SALES - BOOK. SALES -BOOK. AUXILIARIES. transactions which they record. This feature will be more fully illustrated in future sets. 1872 Consignment. Mar. 5 500 * 6 500 5000 5000 fc ■ By Bills Receivable Cash Sold W. H. Crocker on his « Note @ 60 days, @ 19.00 - - - - Sold J. C. Bryant, ® 11.50 . • . - 4500 7500 1872 Consignment. Mar. 7 800 « 9 2000 800 500 2000 500 By Ship'T to N. H., Asmmed and Ship'd Cobb A Co. @80^ Cash Soid C. ClagJvom, © TB^ ^ $1 50 > - • • 1500 750 1872 / // / / // Consignment. Mar. 18 " 20 " 25 500 GOO 500 500 1000 8000 8000 By E. R. Felton Cash - - - Cash Vntcid. Sold him ^ SO days, @ $8.00 - - • Sold Jno. H. Penn^ @ $9.00 - • - Sold J. H. Goldsmith, ^$8.50 • • • 4000 4500 4250 61 120OO 12000 640 2250 2890 12750 12750 r.\[,:i .'I !'■■ • if ! 11;. I >:;i SET IIL— FORMS. FORMS OF ACCOUNTS OF SALES. Account Sales of U^ 'bLl'JvZ..,} on % and risk of J. R. Wheeler & Co. 1880 Mar. Mmr. Mar. 6 2 6 Sold Wm. H. Crocker, on his Note @ sixty days, 500 brls. Flour, @ $9 Sold J. C. Bryant, for Cash, 6000 bush. Wheat, @ $1.50 4500.00 7500.00 Charges. Paid Freight, in Cash - - ■ Storage and Advertising - • Commission, 2}^^ on $12000 100.00 25.00 300.00 J. R. W. & Co.'s net proceeds Due by Equation, Marcli 30. E. E. New York, March C, 1S80, H. B. BRYANT, per Packard. 12000 425 11575 M B. Scott— In Account Sales with H. B. Bryant 5 9 To Cash paid Freight and Ins. - Storage and Advertising Commission 254 % on $2890 M. B. Scott's net proceeds - Remitted herewith - - E. E. N«w York, March 9, 1880. i75 40 72 2602 2890 25 iO 1880 Mar. By 800 bu^h. Com, @ 80^ - - Taken to our account. By Cash, Sold C. Claghom, 2000 bnPh. Oats @ 75^ $1500 eOO bush. Wheat @ $1.50 750 H. B. BRYANT, per Packard. 64C 22b0 2890 <^alpq nf J 500 brls. Extra Superfine Flour, ) ^ ^^ ofC S. Dols & Co. Ocllt;a Ul i looo do Superfine oo., i '^' ' By H. B. BRYANT. 13 SO 35 12 27 E. R. Felton, @ thirty days Cash Cash Barrels Ex. Sup Flour. 500 60a Charges: Barrels Super. Flour. 509 600 1000 Paid Freight in Cash • Storage and Advertising ■ Commission on Sales, 2H % on $12750 - ■ Net proceeds to Cr. as cash, March 29 E. & O. E. ^$8.00 © 9.00 ® 8.50 H. B. BRYANT, per Packard. 800 50 318 75 4000 4500 4250 12750 668 12081 75 25 62 PRACTICAL EXERCISES.— THIRD SERIES. PRACTICAL EXERCISES. [To be written up after the manner of Set III.] Transactions.— Third Series. This business is a continuation of that rej resented in Second Series, page 43, and starts with the resources and liabilities as indicated in the Statement on page 43. It is located in New York. Jfa?\ /. — J. C. Bryant has paid his note of Feb. 6, due Feb. 19, in cash. Face of note, 5j;2T4.75 ; interest for 10 days, at 6^ per annum, $0.40 Received from J. C. Bryant, Buffalo, to be sold on his account and risk, 200 brls. Flour, invoiced at $8 ; 10,000 lbs. Canvassed Hams, invoiced at 11,'^; paid freight on same in cash, $100. J.— Sold A. J. Couch, for cash, 60 sacks Coffee, 3900 lbs., @ 20(^ Bought of L. Siegel, on our note at 3 months, 6 pipes Wine, 720 gals., @ $3.50, and consigned the same to Rogers & Co , Cleveland, to be sold on our % and risk ; paid cash for insurance on same, $50. 6, — Sold J. T. Young, on his note @ 3 months, COO brls. Flour (Bryant's Consignment), @ ^"9 Paid Z. Richards, cash in full of % Bo't of F. B. Thurber, on %, 100 boxes Sugar, each 500 lbs., @ 5,<^ Shipped George Brown, Albany, for our % and risk, the above Sugar, estimated at cost ; paid cash for drayage and insurance, $25. 6, — Paid cash for stationery and incidentals, $25.92 Sold J. Meyer for cash, 5009 lbs. Canvassed Hams (Bryant's Consignment), @ 11/- Sold Amos Cummings, 10 brls. Flour, @ $9 ; received in part payment, cash $50. 8. — Sold for cash, 5000 lbs. Canvassed Hams (Bryant's Consignment), Q IVJ- Closed Bryant's Consignment, and rendered him account of the same ; our charge for storage and advertising, $25 ; our commission, ^1% on $2925, :^73.12 ; Bryant's net proceeds, $- 9, due by equation. -Received of Clarence King, Chicago, for his % and risk, 2000 bush. Corn, invoiced at 80^ ; 1000 bush. Wheat, at $1.50 ; paid freight, in cash, $150 Sold A. B. Smith, for cash, from King's Consignment, 1000 bush. Corn, (h 85/- ; 1000 buph. Wheat, @ $1.70. /O, — Received advice from Rogers & Co., Cleveland, of the closing out of our consignment of Mar. 3 ; our net proceeds, $3250 Received from W. A. Miller his sight draft for $500 on M. Halladay & Co., which we have remitted the ai on our rrL 12. — Discounted our note of $2520, favor of L. Siegel, due JuneG; discount, 86 days, $36.12 paid net amount in cash Compromised with A. C. Lobeck, at 75%, for his indebted- ness of $212, receiving in full thereof his note at 3 months with interest, for $159. 76* — Received cas'i of Amos Cummings, in full gI "/c Received advise from George Brown, Albany, of the destruction by fire of the Sugar consigned him on the 5th; the net returns from insurance are $1950, v/liich our agent has remitted in cash. 20. — Paid store expenses in cash, $138.20 J. T. Young has discounted his note of $1800, due June 8. paying the net amount m cash ; discount for 80 days, $24. 25. — Sold C. Claghorn, 400 bush. Wheat at $1.55, receiving therefor his sight draft on M. Halladay & Co., which we have remitted them on % . Inventoky.— 200 bush. Wheat, @ $1.50 200 brls. XXX Flour, @ $9 300 1800 $2100 63 H I Ii . 14; I . » ■ , 1 l\ i 1 Ml STATEMENT.— THIKD SERIES. LEDGER RESULTS. Dr. 5969 18870 2238 2520 1120 24 2570 2525 164 150 8250 63 02 39 75 12 34449 Cr. Stock . . . - Merchandise - Cash . - . - Bills Receivable Bills Payable M. Halladay & Co. Interest * - - - Ship't to Cleveland F. B. Thurber' Ship't to Albany 28 Expense - - - J. C. Bryant - - Commission - - Charges - - - King's Consignment Rogers & Co. - - Loss & Gain - - 6667 1991 8373 2074 8520 1711 36 3250 2500 1950 2726 78 25 2550 71 20 75 01 58 88 12 84449 28 Net Gain $120.76 QUESTIONS FOR REVIEW. 1. In what respect does a "Shipment** account differ from Merchandise ?— 5. What is the distinc- tion beween a Shipment account and a Consignment account as treated in this Set?— 5. In what sense is a Consignment account personal ?— 4. I>o jou debit a Consignment account with the value or cost of the goods it represents ?— 5. How would such an entry affect the business ?—<>. When the property represented in the account is disposed of, why do you cancel the account ?— 7. How are the net proceeds of a consignment determined?—.?. What is represented by "Storage and Advertising" account? — 9. What by Commission?— 70. What is a draft?— ii. Why do you debit Ivison & Phinney with the face of their draft?— i^. How does H. B. Bryant's private account differ from his Stock account?— 15. How may a private account be closed ?— i^- With what amounts ought notes and cash to be debited and credited ?— i5. If they are worth more or less than their face, how may the difference be shown ?— 16. What is a correct definition of Interest from the accountant's view?— 77. How will a loss in business affect the proprietor's account ?—i.S. How many methods, and what are they, of showing the gain or loos in business ? 64 SET IV. -c46K»>- Journal Day -Book, Commission Sales -Book, Invoice -Book, Forms of Notes, Drafts, Letters, Etc. LEDGER CLOSED WITHOUT BALANCE ACCOUNT) ALSO, BY JOURNAL ENTRIES. PARTNERSHIP BUSINESS; PROSPEROUS. 65 REMAKES ON SET IV. I! :"l ■1 I \ REMARKS ON SET IV. This set covers a number of new features to which attention is here directed. First. — The form of first entry— cmnUning Day-Book and Journal. — This is, in fact, the most common form where all the transactions are recorded in one book. The only purpose in keeping the Day-Book and Journal separate up to this point has been to enforce the characteristics of each. The combination is not only well as a matter of economy, but proper in all respects. The only difficulty which the student will encounter will be in making the entry plain and symmetrical, and this will prove to him a most excellent practice. Second. — The introduction of temporary copartnerships. — This species of copart- nership often exists between the consignor and consignee in reference to particular ventures. It may be as to a single consignment or as to a series of consignments of a particular kind of goods. It is customary, however, to treat each consignment sepa- rately, and to divide the profits or losses as soon as the sales are completed and the results known. The only difference between a "merchandise company" adventure and a simple consignment is that, while in the latter there exists between the consignor and consignee the simple relations of principal and agent, in the former there is a mutual interest in the venture, in short, a copartnership. Thus, while in the simple consignment, the consignee is an employee on commission, or an agent looking solely to the percentage on sales for his compensation, in the merchandise company he is not only an agent, and paid as such, but a part-principal, and entitled to his share of the profits. This fact presents the only difficulty in keeping the accounts; and in order to meet this difficulty, as also to make it the means of general instruction, two distinct methods of treatment are here given. It will be borne in mind that the records of these mixed consignments are to be kept in the books of the general business ; or rather that a_separate set of books cannot be opened with each as a business of itself. Could this be done, there would be no necessity for any temporary expedients. As it is, however, the books of a consignor or a consignee are made to cover all varieties of ventures, from a simple consignment to a complicated copartnership ; and hence, the theories under which the records are made are, in a degree, arbitrary and special — the main point being to make the record complete so far as the partnership relations are concerned, and to so keep the special accounts as not to confuse the general record of the business. Thus, in every instance, so soon as the consignments are closed out, and the partnership interests adjusted, the consignment accounts cease to exist. In the concurrent records of the merchandise company transactions, two slightly varying theories are illustrated or enforced, and the separate methods are distinguished as "First" and "Second." The theory involving the First Method is that the person having possession of the joint property should be held responsible for it, as well as for its avails when sold ; and hence, when the consignor sends to the consignee the joint consignment, he charges him with the e7itire cost, the same as m case of iictual sale. Recognizing this fiction, the consignee correspondingly credits the consignor, and debits 66 the representative account, precisely the same as he would in case of actual purchase.* By this record he has anticipated so much of the sale as would be necessary to reimburse the consignor, leaving the final adjustment until tlie consignment is closed out. Should the result be a gai7i, the consignor is then credited with his share, and his account will show — in the two credits— his "net proceeds." Should the result be a loss, the consignor is debited with his share, and the balance of his account will show his net proceeds. The theory which underlies the Second Method attempts to recognize the legal responsibilities of the case ; thus, when the joint merchandise is sent by the consignor' he considers his 02vn share as a personal venture and charges the consignor with his (the consignor's) share, the same as he would if sold independently. Adopting this method, the consignee, when he receives the joint goods, considers himself responsible for his own share only, and credits the consignor accordingly. When the goods are sold, and the consignee has the avails thereof, he credits the consignor with the entire net proceeds of his share — be it more or less than the cost of the same ; and correspond- ingly the consignor upon receiving an account of sales, debits the consignee. These different "methods" are sufficiently elaborated in the transactions which follow — the First Method being recognized in. the business of April, and the Second Method in that of May. The student may be troubled to dispose of Merchandise Company accounts while in a current condition, as they do not clearly belong to either class, but have the elements of both classes. This is one of the reasons for getting them out of the way as soon as the work for which they are opened is accomplished. If a statement of the business is required when there are pending Merchandise Company accounts, a little practical sense will serve to make the proper estimates and discriminations. Third. — The different methods of closing the Ledger. — In the month of April, the Ledger is closed without the use of a Balance account, by bringing down the resources and liabilities under their proper accounts. This is the business method; and if each month is supposed to represent a year, this would be a fair example of the manner of closing business books at the end of each year, forming a basis of resources and liabilities for the next year's accounts. The method of closing the Ledger by Journal entries, as exemplified in the month of May, is usual in some houses, though requiring more labor, and possessing no advantage over the method heretofore explained. The usual entry in bringing down resources and liabilities is: "Old account. Dr. To Xew account," and the reverse. The "Balance" account is precisely the same as "New account." Fourth. — A larger variety of auxiliary forms. — We have introduced a great variety of auxiliaries that the student may become familiar with forms. We shall hereafter use these books in connection with the Journal to contain original entries. This practice is well nigh universal in the larger business houses, for the purpose of dividing labor and avoiding unnecessary writing. Thus one clerk keeps the Invoice-Book, {mother the Sales-Book, another the Cash-Book, etc., and each of these are so kept as to post directly from them to the Ledger, instead cf passing the transactions through the Journal. * The presamptiou in all these cases is Uiat the consignor fonuBhes froiK his own resources the property shipped. 67 il 114 I 3 4 5 3 2 4 SET IV.— JOUENAL DAY BOOK. NEW YORK, AprU 1, 1872. Cash To H. B. Bryant .... Investment. East River Bank To R D. Stratton . . . Investment. tf Store and Fixtures To Sunds : Mortgage Payable . . . Interest Cash Bo't of H. B. Bryant his store and fixtures, assuming mort- gage and interest to date, and paying balance in cash. s Merchandise To Hope & Co 5 casks Brandy, 300 gals., @ |2, 600 200 bbls. Mess Pork, - @ 9, 1800 30,000 lbs. Bacon Sides, ^^^, 1500 Bo't at 30 d's. ff Expense To Cash Set of Books for Store. Mdse. Co. A. To Sunds : Logan, Wilson & Co, . . . Cash 800 kegs Nails, @ $3, 2400 20,000 lbs. Lead, ® ^f, 1400 Freight on same, 100 Rec'd from L, W. & Co., Pittsburgh, to be sold on our joint % and risk, each i^. ^ Mdse. Co. B To Niles & Kinne . . . 600 bbls. Flour, @, |8, received from N. & K., Buffalo, to be sold on our joint % and risk, each %. 6 Cash . . . ToMdse. Co. A . . . . 400 kegs Nails, @ $3.50, sold Wm. H. Woodbury. 10000 10000 12500 3900 75 3900 4000 1400 45775 68 10000 10000 9000 84 3416 3900 75 3800 100 4000 1400 45775 5 4 4 5 5 4 4 SET IV.— JOURNAL DAY BOOK. NEW TOJRK, AprU 6, 1872. Bills Receivable ToMdse. Co. A 20,000 lbs. Lead, @ 9f, 1800 400 kegs Nails, @ $3.75, 1500 Sold Robt. Hayward on note at 30 ds. Mdse. Co. A. To Sunds : Storage and Advertising . Commission Logan, Wilson & Co. . . Loss and Gain Closed Sales in company with Logan, Wilson & Co., and ren- dered them an % of the same. Conmiission, 23^% on sales. (See C. S. B.) Niles & Kinne To Sunds : Bills Payable Cash Shipped N. & K., Buffalo, to be sold on our joint %, each 3^. 20 hhds. Sugar, 24000 lbs., @ 6f , 1200 100 bags Coffee, 14,000 lbs., m W, 1400 100 boxes Raisins, @ $3, 300 Bo't of Acker, Merrall & Co., on our note, at 90 d's. Paid in- surance, }4% on $3000. 8 Charles Stetson ToMdse. Co. B 500 bbls. Flour, @, $9, sold at 30 d's. ff ■ _____ Mdse. Co. B. To Sunds: Storage and Advertising . Conmiission Niles & Kinne Loss and Gain Closed Sales in company with Niles & Kinne, and rendered them an % of the same. Commission, 2%%. (See C. S. B.) g Sunds : To Merchandise .... Cash Bills Receivable 30,000 lbs. Bacon, @, 6f, sold Austin Packard, receiving his note at 30 d's for $1000, and cash for Imlance. // — Logan, Wilson & Co To Bills Payable Accepted their draft at 30 d's sight, favor G. K. Chase & Co., in full of %. 3300 800 2915 4500 500 800 1000 4136 25 3300 10 117 336 336 50 25 25 2900 15 4500 20 112 183 183 50 75 75 1800 4136 25 69 I«i i h" i. I"* ■ J , k ^ 6 6 6 2 2 3 SET IV.— JOURNAL DAY BOOK. NEW YOBK, April 9, 1872. Mdse. Co. C. ToSunds: Pliny Moore S.G. Payn Cash 1000 bbls. Flour, @ |8.50, received per Merchants' Line from Pliny Moore, Troy, to be sold on joint % of himself, S. G. Payn, Albany, and ourselves, each %y as per contract. Paid freight in cash. (See C. S. B.) 12 Steamer Empire Stock To Sunds : Cash Bills Payable Bo't of Daniel Drew % steamer Empire, for half cash and half note at 90 ds. 13 . Sunds: To Mdse. Co. C Bills Receivable ..- Cash 1000 bbls. Flour, @ $10, sold W. P. Spencer, Buffalo, on his note at 40 ds. and cash. ' \ ff . . Mdse. Co. C. ToSunds: Storage and Advertising . Commission Pliny Moore S. G. Payn Loss and Gain . . . . Closed sales in company with Moore and Payn, and rendered each an % of the same, charging 2% % com. on sales. 15 Cash To Mdse 6 casks Brandy, 300 gals., @ |3, sold J. W. Lusk, Cleveland. 16\ " Mdse. ToSunds: Cash Acker, Merrall & Co. . . 30 hhds. Sugar, 30,000 lbs.,<^ 6<^, bo't of A., M. & Co., as above. 18 Sunds: To Cash Expense . . . H. D. Stratton, private Paid derk hire to 15th ; and H. D. S. on %. 70 8700 10000 7000 3000 1300 900 1800 50 150 32900 5666 2833 200 5000 5000 67 33 10000 30 250 340 340 340 900 00 800 1000 200 32900 00 SET IV.— JOURNAL DAY BOOK. NE W YORK, AprU 20, 1872. 5 2 Sunds: To Bills Receivable . . . Cash Interest Austin Packard has discounted his note in our favor, due May 12tih. // Niles & Kinne * To Loss and Gain .... Received of N. & K, an account sales of the Mdse. sent them to be sold on joint % on the 7th inst. Our % net gain. as above. 22- Sunds: S. G. Payn . Pliny Moore To Sunds : Mdse. Cash 30 hhds. Sugar, 30,000 lbs., @ ^%<^, shipped S. G. Payn, Albany, to be sold on jomt % of S. G. Payn, Pliny Moore of Troy, and ourselves, each 3^. Paid freight in cash. 25- H. B. Bryant, private To East River Bank Check No. 1. (See Ck. B.) N Niles & Kinne To East River Bank . . . Paid their draft on us favor of R. Courter, per check No. 2. (See Ck. B.) 28 Cash To Store and Fixtures Received rent for lofts to date. — ^^ .__ Steamer Empire To Steamer Empire Stock . For our share of earnings of last trip, as per statement received this day. ^g Expense To Cash . . Sundry expenses to date, as per Expense Book. n J 1000 995 4 73 27 300 300 1333 34 1950 50 200 200 968 75 968 75 1500 1500 250 250 159 6377 75 159 6377 75 SET IV.— JOURNAL DAY BOOK. SET rV.— JOURNAL DAY BOOK. I ■t \ i.>»' ^ W IT: 'I XEW TOBK, AprU 28, 1872, Loss and Gain To S. G. Payn For ^;^ net loss on shipment of Sugar for joint % of Payn, Moore, and ourselves, of the 22d inst., as per account sales this day received. 5^___ Cash 115 To H. B. Bryant . Additional investment made this day. May 1 2688 90 115 Mdse. Co. D. ToSunds: Wm.K. Sadler . . . . East River Bank .... 100 bbls. ader Vmegar, @ $7 ; 50 bbls. Linseed Oil, @ $40 ; 40 h'f kegs White Lead, @ $3 ; received from Wm. K. Sadler, Philadelphia, to be sold on our joint %, each %, Paid freight per check No. 3. (See C. S. B.) 1460 2688 90 tp East River Bank . . - Deposited. (See Ck. B.) To Cash 2 Sunds: R. W. Hoadley Ship't in Co. 1 To Sunds : Mdse. Cash 200 bbls. Mess Pork, @ $9, shipped R. W. Hoadley, Philadel- phia, to be sold on joint % , each 13. Paid drayage in cash. 3 Cash 8500 1410 50 909 909 To Mdse. Co. D. . 100 bbls. ader Vinegar, @ $7.50, sold J. R. Bigelow. 8500 750 // .1 Insurance To Cash Effected insurance for $5000 on any property that may be in our warehouse. 37 1800 18 15369 50 40 750 37 15369 50 40 72 8 8 2 NEW TOMK, May 3, 1872, Hanna, Beaser & Co ToMdse. Co. D 50 bbls. Linseed Oil, @ $45, |2250 40 h'f kegs White Lead, - @ 3, 120 Sold at 60 ds., and shipped to them at Detroit, per order '/ — - Mdse. Co. D. To Sunds : Charges Commission Wm.K. Sadler . . . . Loss and Gain .... Closed sales in company with Wm. K. Sadler, and rendered him an account sales, entering as charges storage, advertising, and insurance. Commission, 23^% on sales. (See C. S. B.) 5 Expense . . . To East River Bank, . . Paid adv. bills of N. Y. Herald, per check No. 4, G Mdse. Co. E. ToSunds: F. A. Boyle & Co East River Bank .... 100 hhds. Sugar, @ $60, received of F. A. Boyle & Co., New Orleans, to be sold on joint % of themselves, Campbell & Strong, and ourselves, each }{. Paid freight per check No. 5. (See C. S. B.) ff Mdse. Co. F. ToSunds: ...... H. D. Van Syckel . . . . East River Bank .... 500 bbls. Pork, @ $9 ; 250 bbls., 50,000 lbs.. Lard, @ 5<^ ; re- ceived of H. D. Van Syckel, St. Louis, to be sold on our joint %, each 1^. Paid freight per check No. 6. (See C. S. B.) 8 L Sunds: To Mdse. Co. E Bills Receivable Interest Cash 100 hnds. Sugar, @ $75, sold Wm. A. HoUey, Fort Edward, re- ceiving Erastus Coming's note of Jan. 1, 1872, at one day, with accumulated interest, and balance as above. . 2370 1660 150 2500 4000 5000 123 2376 2370 60 78 1471 61 y 150 2000 500 3500 500 7500 47 53 18180 18180 73 A \ SET IV.— JOUKJ^AL DAY BOOK. NEW YORK, May 8, 1872, 8 8 5 8 8 Mdse. Co. E. ToSunds: Charges Commission F. A. Boyle Campbell & Strong . . . Loss and Gain Closed '* Mdse. Co. E," and rendered account sales of the same to F. A. Boyle and Campbell & Strong, New Orleans. Charges include storage, advertising, etc. Commission, 2\% on sales. (See C. S. B.) ff 2 5 Cask To Bills Receivable Received of R. Haywood for his note due this day. 10. East River Bank Deposited. To Cash 12. Snnds : To East River Bank . . . Mortgage Payable Interest Paid, per check, on mortgage favor Wm. B. Astor, including interest on same to date. 13. Bills Payable To East River Bank . . . Paid our acceptance, favor Logan, Wilson & Co., due this day. ff Hope & Co. To BiUs Payable Accepted their draft at ten days' sight. u Cash To Mdse. Co. F. 500 bbls. Pork, @ $9.50, sold E. A. Charlton. n 5000 3300 4000 4500 1571 50 4136 3900 25 50 187 2254 2254 254 50 IG 17 17 3300 4000 4657 50 4750 29743 4136 25 3900 75 4750 29743 75 8 4 SET IV.— JOURNAL DAY BOOK. NEW YORK, May 15, 1872. Hanna, Beaser & Co To Loss and Gain . . . Received advice from them of an error in an account sales of last year's business, in which we were credited too little by the above amount. . — -^ 15. Sunds : To Hanna, Beaser & Co. . Casb Interest Sold our draft on them at 30 days' sight, receiving proceeds less discount and exchange. — 17 Cash ToMdse. Co. F 250 bbls. Lard, 50,000 lbs., @ 4<, sold T. W. Woolson. // Sunds : To Sunds : Mdse. Co. F Loss and Gain Charges Commission H. D. Van Syckel . . . . aosed " Mdse. Co. F," and rendered H. D. Van Syckel, Ct. Louis, an account sales of the same. (See C. S. B.) ff . H. D. Van Syckel To Cash Remitted in full of ^t. ^f ___ Cash To Bills Receivable . . . Received payment in full for W. P. Spencer's note of the 13th April. 23 : East River Bank To Cash Deposited. 8 275 275 2645 2600 44 05 95 2000 2000 2750 484 37 50 168 3015 75 62 6515 62 6515 62 7000 7000 10000 31669 99 10000 31669 99 75 .\ SET IV.— JOURNAL DAY BOOK. XEW TOBK, May 25, 1872. RW. Hoadley To Shipment in Co. 1 Amount of our net proceeds from shipment to him of the 2d inst.j as per account sales just received. 26 Wm.K. Sadler To Bills Payable . . . . Accepted draft at 30 days' sight, favor B. McGann, for amount due him. 27 Bills Payable To Cash Paid our acceptance, favor of Hope & Co., due this day. 28 Cash To Charles Stetson . . . To balance ^. 30 Acker, Meirall & Co "... To Cash To balance %. __31 H.B. Bryant - To H. B. Bryant, private . For amount charged to H. B. B.'s private %, now carried to his capital 'Jc. ___^_ " — H. D. Stratton To H. D. Stratton, private . For amount charged to private %, now carried to capital %. /f Interest . . . To H. B. Bryant . . . . Allowed 7% on his additional investment of April 30. -— - ^ 800 2881 3900 4500 1000 200 150 15 13446 800 2881 3900 4500 1000 200 150 68 68 15 13446 68 68 SET IV.—JOXJRNAL DAY BOOK NEW YORK, May 31, 1872. 10 CLOSING ENTRIES.- Balance Valuation of property. To Store and Fixtures . // Store and Fixtures To Loss and Gain For increase in value of property. ff Mortgage Payable To Balance Amount due on mortgage. rp Balance To Cash Amount on hand. ^r Balance ■ i Balance on deposit. To East River Bank // Interest To Balance Amount due from us to date on mortgage. ^/ Balance To Interest . Amount due us to date on E. Coming's note. // 15000 15000 Loss and Gain To Interest Cost over proceeds of interest. .. ff Loss and Gain Balance of expense account. To Expense 2500 2500 4500 4500 4575 09 4575 09 21337 50 21337 60 18 37 18 37 146 82 146 82 213 15 213 15 150 48440 93 150 48440 93 77 i « ) I II I" I a s SET IV.— JOURNAL DAY BOOK. KEW YORK, May 31, 1872. Balance To Bills Receivable . . . Note on hand (E. Coming's). /f . Commission To Loss and Gain . . . Gain on commission. - — ■ — — — // —- _ — _ — . Bills Payable To Balance Our outstanding notes. ~rr Pliny Moore To Balance Amount due him. -// aO. Payn To Balance Amount due him, // Balance To Steamer Empire Stock . Valuation of our interest in Steamer Empire. __ — ff _ Balance To Steamer Empire . . . Amount due ua. fp Balance To R. W. Hoadley . . . Balance due us. Loss and Gain To Shipment in Co. 1 . Our loss on shipment. 5000 10781 434 25 5340 31 1954 99 10000 250 1709 1X)9 10781 35578 35 35578 5000 434 25 5340 1954 )1 39 10000 250 1709 109 25 SET IV.— JOURNAL DAY BOOK. J^Ef^^ YORK, May 31, 1872. 18 4 7 Loss and Gain To Insurance Cost of insurance. rp 8 Charges To Loss and Gain Gain on storage, advertising, etc. ft F. A. Boyle & Co. Amount due them. To Balance r r Campbell & Strong . Amount due them. To Balance // Loss and Gain I. ToSunds: . . . H. B. Bryant . H. D. Stratton For net gain due each partner. ff H. B. Bryant To Balance For amount of hia net capital. ft H. D. Stratton To Balance For amount of his net capital. 79 37 50 150 37 50 4254 16 2254 150 4254 1 6 17 2680 to 2254 17 L5785 U L3130 )7 1340 20 1340 \tO 15785 14 13130 )7 18291 )4 ;J8291 !)4 SET IV.— LEDGEE. SET IV.— LEDGER 'I i*k % ^r. H. B. Bryant. Cr. 1873 April 31 31 « To Balance, down - - To H. B. B., private - Balance - - - - 9 12 11,629 S6 26 14 14 1873 April <« 1 30 « 1 31 « By Cash " . . - - - Loss and Qaiu - - By Balance, bro't down Interest - - - - Loss and Gain - - 1 5 l4 9 12 10000 •2688 1940 14629 90 36 14629 26 May M 200 15785 May « « 14629 15 1340 26 68 20 15985 15985 14 Dr. H. D. Stratton. 1872 April May 30 31 To Balance, down To H. D. S., private Balance - - - llDJiO 11940 9 12 37 37 150 18130 13280 57 1872 April 57 May 1 30 1 31 [. Cr. By East River Bank - Loss and Gain - - 1 l4 12 10000 1940 37 11940 87 By Balance, bro't down Loss and Gain - - 11940 1340 j i 37 30 13280 57 l>r. Store and Fixtures. Cr. 1872 April M May 1 « 31 3 30 To Sundries - - ZiOita and Gain To Balance, bro't down Loss and G^n - • S>r. By Cash - - - Balance, (fmrn 6 By Balance 11 1500 12500 14000 15000 150QQ Mortgage Payable. Cr. 1872 May M 12 81 To East River Bank Balance . • « 7 10 4500 4500 9000 1872 April 3 By Store Fixtures - 9000 9000 80 !Z>r. Cash Cr. 1872 April May n « €( (( To H. B. Bryant - - Mdse. Co. A. - - Mdse. - - . . Mdse. Co. C. - - Mdse. - - - - Bills Receivable Store and Fixtures H. B. Bryant - - To Balance, bro't down Mdse. Co. D. - - - Mdse. Co. E. - - - Bills Receivable Mdse. Co. F. - - - Hanna, Beaser & Co. Mdse. Co. F. - - - Bills Receivable Chas. Stetson - - By Store and Fixtures Expense - . . . Mdse. Co. A. - Niles & Kinne - - Mdse. Co. C. - - - Stmr. Empire Stock Mdse. Sundries - - - - Expense - - - Balance, doitn • • By East River Bank ■ Sundries - - - . Insurance - . . . East River Bank - H.D.VanSyckel - East River Bank - Bills Payable - - Acker, MerraU & Co. Balance ■ . . . 5 5 5 7 8 8 9 9 10 341( 75 10( 15 20( 500( 80( 20( 5( 15J 11269 21284 6S^ 63 850( U 3 400( 6515 1000( 390( 100( 457i 3854C 50 62 09 21 !^r. East River Bank. Cr. 1872 April i May To H. D. Stratton iJ To Balance, bro't down Cash « lOOOC lOOOC 8831 850( 400( lOOOC 31331 25 1872 Apri 25 May u u <( 25 By H. B. Bryant - 25 Niles & Kinne 30 Balance, down 1^ 1 8j By Mdse. Co. D. Expense - - Mdse. Co. E. ■ Mdse. Co. F. - Sundries - - Bills Payabh; Balance - - 5 6 6 7 7 7 10 joq 2( 968 75 8SS1 ts lOOOO 00 5C 150 50( 50( 4651 50 413G 2133'Jt ^ 25 81331 25 81 H \i 't [1 > ■L I L ^r. SET IV.— LEDGER Interest Cr. 1872 April 8 12 5 31 May M • M ** To Bills Receivable Loss and Oatn - :\A u To Mdse. Co. E. - - East River Bank Hanna, B. & Co. - H B.Bryant- - Balance - - - !Dr. 1872 April May 3 18 29 To East River Bank Dr. 1872 April 6 (( 20 M 25 To Sundries - - - ] OSS and Gain - Last River Bank Dr. 1872 April M m 3 1 May To Sundries - - « _ _ Loss and Gain 7 7 8 9 10 4 79 84 27 123 157 44 15 18 359 47 50 95 68 37 97 1872 April May 31 By Store and Fixtures By Balance - - Loss and Gain 10 10 84 84 146 213 350 82 15 M Expense. Cr. To Cash « « 1 3 4 9 75 50 159 284 150 1872 April 30 By Lo»8 and Gain May 31 By Loss and Gain 14 10 284 284 150 Niles & Kinne. Cr. 2 4 4 2915 300 968 4183 75 75 1872 April 4 8 By Mdse. Co. B. - 1 3 4000 183 75 4188 75 Merchandise. Cr. To Balance, bro't down 1 3900 1800 750 6450 1800 1872 April tt u tt May 9 15 By Sundries Cash - - Sundries -- JBaTance, down - By Sundries 2 3 4 1800 900 1950 1800 6450 1800 82 Dr. SET IV.— LEDGER Loss and Gain. Cr. 1872 1872 April 30 To S. G. Payn - - - 5 115 April 6 By Mdse. Co. A. - - - 2 336 25 (( tt Expense - - . . l8 284 tt 8 Mdse. Co. B. - . - 2 183 75 tt ft ff.B Bryant- - - Ll 1940 S6 *t 13 Mdse. Co. C. - - . 3 840 m tt H. D. Stratton - - l2 1940 37 tt tt 20 30 Niles & Kinne - - Store and Fixtures A 300 1500 tt ft Interest - . . . T.S 79 73 tt tt Mdse. T.S 750 tt tt Storage and Adver. l5 60 tt tt Commission - - - l5 480 173 tt ft Stmr. Empire Stock l6 250 4279 4279 73 May 17 To Mdse. Co. P. - - - 8 484 37 May 3 By Mdse. Co. D. - - - 6 61 « 31 Interest - . - . 10 213 15 tt 8 Mdse. Co. E. - - - 7; ! 254 17 tt t* Expense - - - - 10 150 u 15 Hanna, Beaser & Co. 8 275 tt tt Shipment in Co. 1 - 11 109 tt 31 Store and Fixtures 10 2500 tt ft Insurance - - - - 12 37 50 tt (( Commission - - - 11 434 25 tt tt Sundries .... 12 2680 40 42 tt tt Charges - - - . 12 150 3674 3674 42 Dr. Hope & Co. Cr. 1872 May 13 To Billfi Payable 3900 1872 April By Mdse. 3900 Dr. Mdse. Co. A. Cr. 1872 April 4 tt 6 To Sundries 2 2 3900 800 1872 April tt 5 6 4700 By Cash - . - - Bills Receivable 1 2 1400 3300 4700 Dr. Logan, \Vilson & Co. Cr. 1872 April 9 To Bills Payable • . 2 4136 25 1859 April tt 4 6 By Mdse. Co. A. - - tt ««*___ 1 2 3800 336 25 J- 4136 25 4136 25 83 P'r iC I ^r. SET IV.— LEDGER. Mdse. Co. B. 18721 April 4 8 To Niles & Kinne Sundries - - 400( __5Qf _J5Q( 72J )ril 1872 April 8 By Chas. Stetson Dr. Bills Receivable. 1872] Ap M May 6 To Mdse. Co. A. - Mdse. - - 13 Mdse. Co. C 1872] To Balance, bro't down Mdse. Co. E. - - ^'^I'Atdohn By Cash - Balance Dr. Storage and^Advertising. Apn? 30 To Loss and Gain j 1872 April l4 60 i M t t* u 60 By Mdse. Co. A. - Mdse. Co. B. - Mdse. Co. C. - Dr, Commission. Apn? 30 To Loss and Gain By Mdse. Co. A, Mdse. Co. B. Mdee, Co. C. g By Mdse. Co. D. Mdse. Co. E. Mdse. Co. F. Dr. Bills Payable. a1?i?? 30 May It 81 To Balance, doicn To East River Bank Cash - - - - Balance - - - 12036 11 14 11 25 :l2D3fl_2S 4136 251 39O0 ■10781 1872 Apr i Cr. 450( J£[QC Cr. 101 _ 1130C 33( 7( « t€ 18817-^ May It u IS By Niles & Kinne - Logan, Wilson & Co Stmr. Empire Stock 1 By Balance, bro't down 1^ Hope & Co - - - 26 Wm. K. Sadler - - 84 Dr. SET IV.— LEDGER. Charles Stetson. 6 Cr. April 8 To Mdse. Co. B. - 4500 187^ May fi8 py Cash 9 4500 Dr. Mdse. Co. C. Cr. vm April tt to 13 To Sundries - - - - t( 3 8 8700 1300 1872 April 13 By Sundries - - - - i 3 lOOOO — ~K lOOOO lOOOO Dr. Pliny Moore. Cr. 1872 April u 22 30 31 To Sundries - - - - Balance, down - - To Balance - - - - 4 11 666 5340 "6006 B6l 01 01 1872^ April tt 10 14 1 By Mdse. Co. C. - - - (t "*♦.._ By Balance, bro't down 3 3 5666 340 6006 8?- May 5340 May 5340 )1 Dr. S. G. Payn. Cr. 1872" April p2 30 May 31 To Sundries - - Balance, daicn To Balance 11 i ~i ;il872 1333 I34 AprU 1954 \ 99 I « 3288 oo 1954 m l_Ji II 10 14 30 May By Mdse. Co. C. - « « tt Loss and Gain By Balance, bro't down 2833 340 115 53 3288 oS^ 1954 99 Dr. Steamer Empire Stock. Cr. 1872 April M 12 30 31 To Sundries - - - - Losa and Gain - - To Balance, bro't down 3 4 10000 250 10250^ "1872 April tt 28 30 31 By Steamer Empire - Balance, down - - By Balance - - - - 5 11 1 250 10000 1US50U May 10000 ;May 10000 Dr. Acker, Merrall & Co. Cr. 1872^ May 30 To Cash 9 1000 April 16 By Mdse. 1000 Dr. FI. D. Stratton— Private. Cr. 1872^ — April 18 To Cash 8 150 1872- May 31 ^S^ By H. D. S., Stock 9 150 I I 4 I !Dr. SET IV.— LEDGER. H. B. Bryant— Private. Cr. 1872 April 25 i To East River Bank 200 1872 May 31 By H. B. B., Capital %. 9 200 l>r. Steamer Empire 1872 April 28 ! To Stmr. Empire Stock _4^ !Z>r. Mdse. Co. D. Cr. 1872 May 1 M 4 To Sundries 5 6 1460 .ifisa _3i2a 1872 May M 3 4 By Cash- - - - Hanna, B. & Co. Dr. ^/Vm. K. Sadler. Cr. 1872 May 1 26 To Bills Payable 9 2881 2881 1872 May 1 4 By Mdse. Co. D. - « « ft 5 6 1410 1421 .^81 Dr. R. W. Hoadley. 1872 May 2 ! To Sundries - - - 25 Shipment in Co. 1 5 9 909 800 1709 1872 May 31 By Balance Dr. Shipment in Co. 1. Cr. 1872 May 2 To Sundries 909 _909 1872 May €* 25 31 By R. W. Hoadley - Loss and Gain - Dr. Insurance. Cr. 1872 May » To Cash 5 By Loss and Gain - 12 37 50 Dr. Hanna, Beaser & Co. 1872 May 4 « 15 To Mdse. Co. D. - Loss and Gain 6 8 2370 1 275 ^2645- 1872 ! May 15 1 By Sundries 86 Dr. SET IV.— LEDGER. Charges. 8 Cr. 1872 May 31 To Loss and Gain Dr. 1872 May 6 8 To Sundries tt Dr. 1872 31 To Balance Dr. 1872 May *t 7 To Sundries 18 12 150 1872 May ft ft 4 8 18 By Mdse. Co. D. - - - Mdse. Co. E. - - - Mdse. Co. F. - - - 6 7 8 50 50 50 150 15U Mdse. Co. E. 6 7 2500 5000 ~?600 1872 May 8 By Sundries F. A. Boyle & Co. 12 4254 16 1872 May ft 6 8 4254 By Mdse. Co. E. M ft ft Mdse. Co. F. 7 8 4000 2750 6750 __^^ 1872 May If 14 18 By Cash Cr. 7 7500 7500 i Cr. 6 7 2000 2264 16 Cr. 7 8 4750 2000 ~m&y D/ ■ • H. D. Van Syekel. Cr. 1872 May 17 To Cash - - - - - 8 6515 62 62 1872 May tf 7 18 By Mdse. Co. F. - - - ft *'".__ 7 8 1 3500 3015 62 6515 j 6515 62 1 — 1 Dr • Campbell & Strong. Cr. 1872 May 31 1 To Balance - - - _ 12 1 2254 17 1872 May 8 By Mdse. Co. E. - - - 7 2254 1 17 Dr. Balance. Cr. 1872 11873 May 31 To Store and Fixtures - 10 15000 1 May 31 By Mortgage Payable - 10 4500 « 11 Cash 10 ! I 4575 09 1 (( It Interest Payable - 10 18 37 If II East River Bank - 10 1 121337 50 « It Bills Payable - - 111 10781 It II Interest Receivable 10 j 146 82 It tt Pliny Moore - - - 111 5340 01 II u Bills Receivable - - 11 5000 It It S. G. Payn - - - 11 1 1954 99 It tt Stmr. Empire Stock 11 10000 II II F. A. Boyle & Co. - 12 1 4254 IG It tt Stmr. Empire - - 11 250 It ft Campbell & Strong 12 2254 17 tt tt R.W. Hoadley - - 11 1709 It ft H. B. Bryant - - - 12 1 15785 14 • 41 II II H. D. Stratton - - 121 13130 57 58018 58018 41 ■ 87 ^r. Balances. 11000 11269 63 8831 25 284 1050 10300 4500 9750 150 200 250 57584 88 Footings. 12500 21284 10000 4 284 5700 115 11300 63 27 4500 666 1333 10000 150 200 250 78287 66 34 90 SET IV.— TEIAL BALANCE. Trial Balance— April. . - - H. B. Bryant (Capital) - - - - H. D. Stratton (Capital) - - - - Store and Fixtures - - - - - - Mortgage Payable - - - - - - Cash - - - East River Bank - - - - - - Interest - - - Expense - - - Merchandise - - - Loss and Gain - - - - - - - Hope & Co. . - - Bills Receivable - - - - - - - Stoiage and Advertising - - - - Commission - - - Bills Payable - - - Charles Stetson - - - - - - - Pliny Moore - . - S. G. Payn - - - Steamer Empire Stock - - - - Acker, Merrall & Co. - - - - - H. D. Stratton (private) - - - - H. B. Bryant (private) - - . - - Steamer Empire - - - - Cr. Footings. 12688 10000 1500 0000 10015 1168 84 4650 1160 8900 1000 60 480 12036 6006 3288 250 1000 90 75 25 67 33 78287 90 Balances. 12688 |90 10000 9000 79 1045 3900 60 480 12086 5340 1954 1000 73 25 01 99 57584 88 ^r. Balances. 12500 4575 21337 341 150 5000 250 1709 109 37 10000 09 50 60 50 56009 69 Footings. 200 150 12500 4500 88546 31331 341 150 484 15300 8036 250 1709 909 87 10000 124445 21 25 60 37 25 60 18 SET IV.— TEIAL BALANCE. Trial Balance — May. - - H. B.Bryant - - - - - - H. D. Stratton - - - - - Store and Fixtures - - - - Mortgage Payable - - - - Cash - - East River Bank - - ■ - - Interest - - Expense - - Loss and Gain - - - - - Bills Receivable - - - - - Commission -. - - - - - BUls Payable - - - - - - Pliny Moore - . - - - - Steamer Empire - - - - - R. W. Hoadley - - - - - Shipment in Co. 1 - - - - Insurance - - Charges ------ • - F. A. Boyle & Co. - - - - Campbell & Strong - - - - S. G. Payn - - Steamer Empire Stock Cr. Footings. 14644 11940 9000 33971 9993 590 10800 434 18817 5340 800 150 4254 2254 1954 124445 18 Balances. 94 14444 87 11790 4500 12 75 17 105 25 434 25 i 10781 01 5340 150 16 4254 17 2254 99 1954 i 94 37 80 25 01 16 17 99 56009 169 INVENTORY. Property Unsold April 30. Store and Fixtures, valued at cost Mdse. on hand Steamer Empire Stock, at cost - k 88 INVENTORY. Resources and Liabilities not sho\vn in Ledger Accounts. Store and Fixtures, valued at Steamer Empire Stock Interest due us on Notes $146.82 Less, interest due from us 18.37 89 45 SEl' IV.— BALANCE SHEETS. BALANCE SHEETS. The purpose of a Balance Sheet is to present in a tabulated and convenient fonn the condition of the business. The main facts for such a statement are gathered from the Ledger accounts, which, in fact, form its basis. There are various forms of Balance Sheets, or statements, used in business, the arrangement and extent of detail being dependent upon the kind of information desired to be conveyed. The form exhibited on the two pages which follow has the merit of condensation, while, at the same time, the main facts of the progress and condition of the business are distinctly presented. The only objection to this form as a complete exhibit is that where there are many personal accounts it is not feasible to present tbem individually. This objection may be met by condensing the debtor accounts into one item under the title of " Accounts Keceivable," and the creditor accounts into anotlier under the title of "Accounts Payable '*; and if a more minute schedule is desired it can be prepared on a separate sheet. The following brief instructions will enable the student to prepare the blank form for this kind of Balance Sheet : Get a sheet of paper of the proper size, and for a border rule double red lines around the margin.* First, rule the parallel head-lines, leaving proper space for the double captions, as in the example. Next, ascertain the number of Ledger accounts to be represented. This will, of course, embrace all the accounts in the Trial Balance that do not cancel. If the business is that of a single proprietor, usually called " Stock business," rule, in pencil, as many lines as will contain all the accounts, and five additional. If it be a partnership business, with two or more partners, rule three additional lines for each partner. Thus : for "Stock" business five lines more than all the accounts; for two partners eight lines more than all the accounts ; for three partners, eleven lines more, and so on. Next, lay off proper spaces for debit and credit money columns ; first, for the footings of Ledger accounts, second, for Gains and Losses, third, for Stock — or if partners, for each partner — and fourth, for Resources and Liabilities; also, for a single money column for Inventories, and for the Ledger titles and their Ledger folios. The position of these columns you will see in the example given. These spaces can best be appropriated by using a pair of dividers, and giving each of the captions its just proportion. After denoting the proper space for each heading — which can best be done with pencil — commence to rule in red ink at the right hand, and bring all the lines of the first two captions — Real Accounts and Stock, or one of the partners — down to the lower pencil line. For the other partner drop two lines. For Losses and Gains drop two lines for Stock business, and an additional line for each partner. Next, rule the foot-lines as shown, and the schedule will be ready to receive the accounts. The process of showing results is precisely similar in its order, and the results the same as in " closing the Ledger," and will need no explanation aside from the example given. * The border may be made either plain or omameDtal, as best suits the taste of the accountant ; but we would recom- mend in this, as well as all business statements, the utmost neatness, and the avoidance of that kind of affectation or display vulgarly known as *^ gingerbread work/' 90 oc I Eh W 02 * S< 31 '.8 fgJ >90 00 00 I r"*' ^ hqsQ i-4»i^»Hi-ic«(Meoeoioot-t-t-t-ooQOooaooo M s o > « K c. P •^"^ S ;: X ^ i I I OQ ^Wx 11^ SET IV.— AUXILIARY BOOKS. AUXILIARY BOOKS, The auxiliary books and forms proper for Set IV are given on the following pages. The necessity of auxiliaries need not be commented upon, but the extent to which they are used depends upon the character of the business, the kind and amount of information required, and, to some extent, upon the taste and ingenuity of the bookkeeper. The principal objection to a multiplicity of auxiliaries is the labor required, but as this is balanced, or should be, by the additional information given, no such objection should prevail. In fact, special books of entry are so utilized in large houses as to stand as principal books, thus condensing and classifying the record from the start. All cash transactions are entered at once in the Cash-Book and posted from thence, and the purchase and sale of goods are so recorded in special books as to render a Day-Book and Journal entry unnecessary. This plan is shown further on. We have given one form of Commission Sales-Book in Set III, and another form here. Both are in use, and both good. The illustration of the method of keeping a bank account in the Check-Book will be readily appreciated. The forms of letters and various kinds of business paper, will serve, as in some sense, models, but are not intended to be followed utterly. It would be well, in fact, for the student to write letters for himself, using his own language, rather than to copy those given. The letters submitted are among the simplest required in business, and do not call for much skill of thought or expression. They are, however, explicit and circum- stantial, and meet the requirements of the occasion. A business letter has a few requisites which, if the student will keep in mind, he will be excused from any mere literary display. 1. It should be correct in form and mechanical structure; that is, the date, the salutation, the body of the letter, the complimentary ending, and the signature, should be each in its proper place, and in proper form ; and the writing itself should, of course, be neat, legible, and business-like. 2. It should be pointed and exact in expression, and as brief as the circumstances will admit ; although brevity should never be secured at the expense of completeness. Every business letter should have a definite purpose, and that purpose should be plainly set forth, at whatever required length. The great majority of business letters, as also of business forms, are so similar in purpose that, to save time and possible errors, blank printed forms are used, requiring only the filling in of dates, amounts, and special conditions. No student should rely upon this, however, but should be required to write out in full all the forms called for in the business. One of the most important auxiliaries given in this connection is the Bank Check- Book with its attendant vouchers, the character and working of which can be understood at a glance. The Check-Booh is a book of blank checks, with a margin for memoranda and appropriate rulings for the entry of amounts deposited and drawn out; the difference, which can at any time be ascertained, being the balance in bank. The Pass-Book is a memorandum of deposits in which the bank-teller enters the dates and amounts deposited, and when required, writes in the checks which have been paid, showing the net amount on deposit. The Deposit-Slips accompany the deposits, and contain a list of the funds which make up the amount. The teller compares these items, and enters the amount, with his signature, in the Pass-Book. 93 4 SET IV.— COMMISSION SALES BOOK. Mdse. Co. A. 14! 1872 April 3 M a « U 6 u « a (( To Logan, Wilson & Co. Received from L. W. & Co., Pittsburgh, to be sold on our joint % and risk, each %, 800 kegs NaUs, @ $3 - - - - $2400 20,000 lbs. Lead, @ 7/, - - - - - 1400 Cash Paid freight Storage and Adver. Our charges Commission 23^% on $4700 Logan, Wilson & Co. Their }4 net gain Loss and Gain Our " " ** "- Account Sales rendered April 6. L. W. & Co.'s net proceeds, $4136.25. Due Apr. 30. Mdse. Co. B. 1872 April a « a 4 1 To Niles & Kinne 8 « storage and Adver. Commission Niles & Kinne Loss and Gain Received from N. & K., Buffalo, to be sold on our joint % and risk, each %, 500 bbls. Flour, @ $8 - - - Our charges 21^% on $4500 Their }^ net gain Our (( (« *< Account Sales rendered April 8. N. & K.'8 net proceeds, $4183.75. Due May 9. Mdse. Co. C. 1872 April 10 To Pliny Moore « U S. G. Payn M 13 Cash U « Storage and Adver. « « Commission « u Pliny Moore « u S. G. Payn Loss ana Gain « u Received per Merchants' Line, from Pliny- Moore, Troy, to be sold on joint % of himself, S. G. Payn, Albany, and our- selves, each }^, 1000 bbls. Flour, @ $8.50 - - $8500 P. Moore and our % invoice furnished by him His % invoice as above Paid Freight . - . • Our charges 23^% on $10000 - - ■ His ^ net gain - - • His *♦ '* Our « " u ({ Account Sales rendered April 13. p. Moore's net proceeds - - - S.G.Payn's« " • • • Due May 15. 94 $6006.67 3173.33 4000 20 112 183 183 4500 50 75 75 67 33 Sales. 2 1872 April (( By Cash Bills Keceivable Sold Wm. H. Woodbury, 400 kegs Nails, @ $3.50 Sold Robert Haywood, on his note (gj 30 days, 20,000 lbs. Lead, @ 9^ - - . . $1800 400 kegs Nails, @ $3.75 - - - 1500 1872 April 8 By Charles Stetson 1872 April it 13 1 By Bills Receivable^ •... 7000 3000 10000 95 SET IV.— COMMISSION ;£ 9 1872 May u t( u u 1872 May u tt « « 3 {( 1872 May 6 IC (t (( 8 it M (( (( <( « it Mdse. Co. D. 1 ; To Wm. K. Sadler East River Bank Charges Commission Wm. K. Sadler Loss and Gain Received from W. K. S., Philadelphia, to bo Bold on our joint %, efich 3^, 100 bbls. Cider Vinegar, @ $7 - -$700 50 " Linseed Oil, @ 40 - - 2000 40 h'f kegs White Lead, @, 3 - - 120 Our ]4 invoice $2820 Paid freight, per check Storage, advertising, and insurance - - - - iU% on $3120 i His }4 iAvoice, $1410, and net gain, $61 Our 3^ net gain - • Account Sales rendered May 3. W. K. S.'s net proceeds, $1471. Due by equation, June 20. 1410 50 50 78 1471 61 3120 Mdse. Co. E. To F. A. Boyle & Co. Received of F. A. B. & Co., New Orleans, to be sold on joint % of themsel^ves, Camp- bell & Strong) and ourselves, each % too hhds. Sugar, (g East Kiver* Bank Charges Commission R A. Boyle , Campbell & Strong Loss and Gain Our ^ij above invoice - - - ^ Paid freight per check Storage, advertising, etc, 2}i% on $7^00 - - - Hiii % invoice $2000, and net gain $254.16 Their ^ invoice $2000, and net gain $254.17 Our % net gain Account Sales rendered May 8. F. A. Boyle & Co.'s net proceeds, $2254.16. Campbell & Strong's " " 2254.17. Due by ec|uation|_May^8. 20oq 187 50 2254 16 2254 17 254 17 7500 Mdse. Co. F. iq To H. D. Van Syckel 141 it East River Bank Charges Commission H. D. Van Syckel Received from H. D. V. S., St. Louis, to be sold on our joint %, each 3^^, 600 bbls. :^ork, @ $9 - - - - $450( 250 " Lard, 50,000 lbs., @ 5j^. - ^2500 Our 3^ invoice $700( Paid freight per check Storage, cooperage, etc. 2%% on $6750 His K invoice .$3500, less his net loss $484.3^ Account Sales rendered M&y 14. H. D. Van Syckel's net proceeds, $3015.62. Due by equ ation^^Ma^Jl5;_^ 96 35001 500 50 168 75 62 1Q15 72341 37 SALES BOOK. 1872 May ' 288i * A correeponding statement 1b sent to S. G. Payn. 08 Sales of 1872 May invest m Flour, and shall be happy to join you in speculation, or to sell for you on commission. We await your further orders. Respectfully, ^ Bryant & Stratton. S. G. Payn, ^^^ ^^^^' ^P^^ ^^^^' ^^^^' Albany : , . ^ i. to- Sir —Enclosed please find Account Sales of Flour, shipped us by Pliny Moore of Troy, as i^er our understanding. Your one-third net gain is $340, which gives YOU a total cr^t on our books of 13173.33. ^ Respectfally yours, Bryant & Stratton. 104 Messrs, Bryant & Stratton, Buffalo, April 18, 1872. New York: Gentlemen, — We enclose you Account Sales of the Sugar, Coffee, and Raisins, shipped us on the 7th inst Your net proceeds from Sales, including Invoice and Gain, is $3215, which we have entered to your credit We shall be happy to hear from you. Respectfully, NiLES & KiNNE. 8. G. Payn, Esq., New York, April 22, 1872. Albany : Sir,— We ship you this day, per Merchants' Lme, 30 hhds. Sugar, ba per enclosed Invoice, to be sold on joint % of yourself, PHny Moore, Troy, and ourselves, each K We have advised Mr. Moore, and he will look to you for an account of the sales. Please write to us. Truly yours, Bryant & Stratton. Pliny Moore, New York, April 22, 1872. Troy : Dear Sir,— We enclose you Invoice of 30 hhds. Sugar, shipped this day to S. G. Payn, Albany, to be sold on joint %, as per arrangement We have charged you with your K Invoice, and advised Mr. Payn to account to you for the sales. Very respectfully, Bryant & Stratton. Messrs, Bryant & Stratton, Albany, April 29, 1872. New York: Gentlemen, — ^I send you enclosed an account of the sales of Sugar shipped by you on the 22d inst Your % loss on sales, as per statement, is $115, which reduces your net proceeds to $1218.34. I regret the result, but have done the best I could, under the circumstances. The rapid decUne in Sugar could not have been foreseen ; and had I delayed the sales another dav, the result would have been far less satisfactory. ^' Respectfally yours, S. G. Payn. Messrs. Bryant S Stratton, Philadelphia, April 30, 1872. New York: Gentlemen, — ^I ship you this day, as per arrangement, iOO Dbls. Cider Vinegar, 50 do. Linseed Oil, and 40 hT kegs White Lead, to be sold on joint %, I have charged you K the enclosed Invoice, according to agreement Please exercise vour own judgment in the matter of sales. •^ Respectfully yours, Wm. K. Sadler. New York, May 2, 1872. R, W, Hoadley, Esq., Philadelphia : Dear Sir,— We enclose you Invoice of 200 bbls. Pork, shipped you this day, to be sold on our joint %. Your M Invoice (charged) is $909. We shaU trust entirely to your judgment in effectmg sales. ^^ Bryant & Stratton. 105 ^"*-r PRACTICAL EXERCISES.— FOURTH SERIES. PRACTICAL EXERCISES.— FOURTH SERIES. PRACTICAL EXERCISES. LTo be written up after the manner of Set m.] Transactions.— Fourth Series. The transactions which follow will enable the student to carry out the instructions of Set IV in practice. The two months represent two years, as in the preceding set ; the balances to be brought down at the end of the first year, and the business of the second year to be continued under the same accounts ; finally closing the accounts through the Journal. The two methods of keeping the accounts of temporary copartnerships are also illustrated. jipr. /. — J. H. Goldsmith and have this day entered into copartnership, each investing $8000 cash. The firm assumes to pay for J. H, Goldsmith a note in favor of H. VV. Ellsworth, dated Jan. 15, with interest at 6% from date ; face of note, $300 ; interest due to date, $3.75. 2. — Paid cash for Store Fixtures, $1500 ; and for rent of store, six months in advance, $750. ,y.— Bought of H. G. Reeve & Co., 8 bags Rio CoflPee, 1280 lbs., @W; 6 chests Young Hyson Tea, 297 lbs., @ GS^'^ ; 10 boxes Virginia Tobacco, 350 lbs., @ ^f ; for which we have accepted their draft at 60 ds., favor of Chas. Strong. Z.. — Received from James At water, Lockport, to be sold on his and our joint %, each \, 500 brls. Flour. @ $8 ; 1000 bush. Wheat, @ $1.50 : paid freight on same, in cash, $400. 6. — Received from D. L. Wing, Albany, to be sold on joint % of himself, J. Walker, Schenectady, and ourselves, each \, 1000 brls. "Julian Mills" Flour, @ $8.50 ; paid freight in cash, $100. tf.— Sold W. H. Beebe, for cash, 1000 bush. Wheat (Mdse. Go. A, Atwater's Consignment), @ $1.83. 7.— Sold J. W. Lusk, on %, at 60 ds., 2 chests Young Hyson Tea, 100 lbs., @ 75.<^ Sold J. C. Beale, on his note at 10 ds., 500 lbs. Flour (Mdse. Co. A.), @ $9 Oosed Mdse. Co. A and rendered James Atwater our account of sales ; our charges for storage, adver- tising and cooperage amount to $75 ; our commission on sales, 2|%, $ ; our ^ net gain, $ ; James Atwater's do., $ S, — Shipped John R. Penn, Green Bay, Wis., to be sold on our joint %, each \, the following invoice bought of H. G. Reeve & Co., on our note at 4 months : 30 hhds. N. O. Sugar, 32000 lbs., @ %\9 ; 40 brls. N. O. Molasses, 1442 gals., @ 40^ ; drayage and insurance, paid in cash, $75. fO, — Deposited with Geo. K. Chase & Co., Bankers, cash, $10000. /^.— Sold for cash to J. & J. Wynkoop, 1000 brls. Julian Mills Flour (Mdse. Co. B.), @ $9.50 Closed Mdse. Co. B. and rendered account of sales to D. L. Wing, Albany, and J. Walker, Schenectady; our charges for storage and cooperage, $75; commission on sales, (S 2|^%, $ ; D. L. Wing's ^ net gain, f ; J. Walker's do., $ ; our do., $ /<5. — Paid cash for James Atwater's draft on us at sight, $1000. /6. — Shipped R. C. Spencer, St. Louis, to be sold on joint account of himself, John Atwater, Chicago, and ourselves, each ^, the following invoice of goods, bought of A. T. Stewart & Co., for cash : 20 pes. Dark Blue Circassian, @ $12 : 50 pes. Green do., @ $10 ; 10 pes. Satinet, 300 yds., @ 90<^ ; 15 pes. Jeans, 450 yds., @ $1.25 Deposited cash, $10000. /7. — Shipped Stephen A. Douglas, Chicago, pursuant to his order, 8 bags Coffee, 1280 lbs., @ 11«^. JSO. — Received cash in full of J. C. Beale's note of the 7th inst. ^/.— Paid J. Walker's sight draft in full of his %, per check on Geo. K. Chase & Co., $ JS6, — Received account of sales from John R. Penn, Green Bay, of goods shipped him on the 8th ; our I net gain, $250. * Let the student use his own name. 106 J^.— Received from R. C. Spencer, St. Louis, account sales of goods shipped him on the 16th ; our ^ net loss, $135 Paid cash in full for J. H. Goldsmith's note and interest ; note, $300 ; interest, $5.25. Inventory of propebty on hand April 30. 4 chests Young Hyson Tea, 200 lbs., @ 63^ ; 10 boxes Virginia Tobacco, 350 lbs., @ 40^ ; Store Fixtures, $1400 ; unexpired rent, $625. May /.—Received from John R. Penn, Green Bay, to be sold on his and our joint %, each \, 3000 bush. Wheat, invoiced at $1 ; paid freight, per check, $350. ^.—Bought on our note, at 60 da, of Claflin, Mellen & Co., 10 pes. Broadcloth, 1000 yds., @ $4.50 ; 20 pes. Cassimere, 1500 yds., @ $2. ,?.— Shipped T. W. Woolson, Mt. Pleasant, Iowa, to be sold on our joint %, each i, 10 pes. Proad- cloth, 1000 yds., @ $4.75 ; 10 pes, Cassimere, 750 yds., @ $2.25 ; paid freight and insurance, per check, $75 Received cash of John Atwater, in full of %, $ ^.— Sold J. C. Bryant, on his note at 10 ds., 3000 bush. Wheat (Mdse. Co. C, Penn's Consignment), % $1.50 - - ,- Closed Mdse. Co. C. and rendered John R. Penn, an account of sales ; our charges for storage, advertising, etc., $150 ; our commission, 2,\fo on sales, $ ; J. R. Penn's net proceeds, $ ; our \ net gain, $ S. — Discounted our acceptance of $461.05, favor of H. G. Reeve & Co., due June 5 ; discount oflT, 31 days, @ 7% ; paid cash for face of acceptance, less interest for above time and rate. 6. -Shipped Chester Packard, Milwaukee, to be sold on joint % of himself, D. V. Bell, Chicago, and ourselves, each |,4 chests Young Hyson Tea, 197 lbs., @ 75^ ; 10 boxes Virginia Tobacco, 350 lbs., @ W ; 100 sacks Rio Coffee, 16000 lbs., @ 10/. The Tea and Tobacco were from our store ; the Coffee was purchased of Acker, Merrall & Co., On our acceptance at 10 ds. ; bur i invoice. ; Chester Packard's do., $. D. V. Bell's do., $. 7.— Received from H. B. Tuttle, Cleveland, to be sold on joint % of himself. N. C. Winslow, and ourselves, each |, 1000 brls. Flour, invoiced at $7 ; paid transportation charges, per check, $450 ; our ^ cost, % /O, — Paid James Atwater, in full of %, per check, $. /^._Sold Chas. K Carryl, 10 pes. Cassimere, 750 yds., @ $2.50 ; received in payment, James HUl's note fgr $1500, dated Jan. 1, 1872, with accumulated interest at 7;^ from date, $38.21 ; cash for balance, $ /<5.— Sold W. H.^ Clark, for cash, 1000 brls. Flour (Mdse. Co. D.), @ $8.50 Closed Mdse. Co. D., and rendered account of same to H. B. Tuttle and N. C. Winslow; our charges for storage, advertising, etc., $150; our commission, 2^% on sales, $ '; H. B. Tuttle's net proceeds, $- ; N. C. Winslow's do., $ ; our \ net gain, $ /^.—Remitted H. B. Tuttle, cash in full of his % , % //.—Deposited in Bank, $9000 Received cash of Stephen A. Douglas, in full of %, $ Received cash of J. C. Bryant, for his note of May 4, due this day, $- /^.— Paid our acceptance of 6th inst., favor of Acker, Merrall & Co., due this day, in cash, ^^.— Received from T. W. Woolson, Mt. Pleasant, an account sales of the goods shipped him on the 3d for our oint % ; our net proceeds remitted in cash, $4000. ^<5. —Received frotn Chester Packard, Milwaukee, ftn account sales of the goods shipped him the 6th inst., for % and risk of Packard, Bell, and ourselves ; our net proceeds, $750. >^._Paid for N.;C. Winslow's draft on us, in full of his %, our draft on D. V. Bell, $640.92 ; Imlance in c%sh, f ,y^.— Received cash of R. C. Spencer, in full of %, $ Paid John R. Penn, cash, in full of % , f - ■ • • - Paid D. L. Wing, cash, in full of %, $ Inventory of property on hand May 31. Store Fixtures, $1400 ; unexpired rent, $500 ; interest due on J. ffill's note, $43.75. 107 '^<-.j :.--) iP PRACTICAL EXERCISES— FOURTH SERIES. STATEMENTS. April SO. May SL Gains. Merchandise ... Storage and Adv. C/ommission - - - . Mdse. Co. A. , . - Mdse. Co. B. I . - Ship't in Co. to Careen Bay JjOsses. 20 150 395 98 195 250 1 100 135 125 266 1400 625 6127 75 2981 16970 923 524 140 3117 4598 5862 8075 8379 75 75 37 84 50 25 80 84 33 17 80 85 38 50 86 60 1110 351 71 50 21 19 73 46 46 Gains, Merchandise - Storage and Adv. - Mdse. Co. C. - - - Mdse. Co. D. ^ - - Commission Ship't in Co. to Mt. P. - Ship't in Co. to Milwaukee Interest . . _ . Xosses, Rent !3fdesources. Store and Fixtures Unexpired Rent Interest .... Cash J. W. Tiusk - - - Geo. K. Chase & Co. • T. W. Woolson - - Chester Packard - Bills Receivable - liabilities. Bills Payable - - - Net Resources J. H. GoWsmith - - Student - - . - 869 300 443 229 335 743 109 8 25 75 17 75 09 32 75 21 46 25 92 52 27 8028 125 88 Interest . - - - . Store and Fixtures - Rent 1400 500 43 853 75 20497 3256 1390 1500 Ship't iu Co. to St. Louis 2903 33 759 iV./G'atnCJilS;'^) 29515 10156 Resources, Merchandise . - - Store and Fixtures - J. Unexpired Rent - - Cash - - - - - - J. W. Lusk . : - - J. R. Penn - , . - Geo. K. Chase & Co. R. C. Spencer - - ^ - John Atwater - - - Stephen A. Douglas 30034 13578 59 9527 9831 80 liabilities. 19358 79 Bills Payable - - James Atwater - - - D. L. Wing .... 19358 79 • Net Resources 16455 J. H. Goldsmith Student - - - - - 16455 108 SET V. c ■ ^:;:i 'tH oWC^ Jobbing and Importing Business, EMBRACING A3 PRINCIPAL BOOKS, Cash -Book, Domestic and Foreign Invoice -Books, Sales -Book and Journal; AND AS AUXILIARIES, INVENTORY - BOOK AND BILL - BOOK, WITH A ROUTINE OP TRANSACTIONS TAKEN FROM ONE OF THE MOST EXTENSIVE BUSINESS HOUSES IN NEW YORK. S •i\» ^^ ■5 , »• 109 I ' I lit I SET v.— REMARKS. REMARKS. In the followir> set we have illustrated a practical method of keeping the accounts of an Importing and Jobbing business. The particular feature in this set consists of the manner and form of original entries, which are made in separate books, elsewhere used as auxiliaries — from which they are either journalized, or passed directly to the Ledger at stated periods. This method has many advantages over consecutive entries in the Day- Book, and in one form or other, is adopted generally in all large establishments. The labors of the book-keeper are thus divided up, and the separate departments of the business receive such special record as to present all the facts in their clearest light Thus, if any particular information is desired respecting purchases, all the facts can be shown at once from the Invoice Book; and, in the same manner, the fact and condition of the sales can be shown from the Sales-Book, the receipts and disbursements of cash from the Cash-Book, etc. In the previous sets these books are represented, but they are used only as auxiliaries, the entries of the business being made in the other books without reference to them. This plan, it will be evident, although possessing some merits, involves a large amount of unnecessary labor, which would prove a great objection in extensive business. The special books themselves, however, are so essential to every well-regulated business, that they would receive favor, even at the expense of this additional labor. If, therefore, they can be used without additional labor, and even at a reduction of labor, it would seem that no farther argument would be needed to secure their adoption. The only diflSculty in the way of using special books for original entries lies in the danger of making the entries in the diflferent books conflict with each other upon the Ledger. For example : if a Cash-Book is used, it should be competent to show all receipts and disbursements of cash ; this purpose is easily effected by placing the receipts on one side, and the disbursements on the other — the difference, of course, being, at any time, the amount on hand. But this does not cover the entire utility of the Cash-Book ; at the same time that cash received is entered upon the debit side of the Cash-Book, the object or cause /or which it is received may also be stated; in which case a double entry is effected, although but one amount shown. The same principle will hold in entering the disbursements of cash ; as, when cash is paid, the object or cause for which it is paid is properly expressed. The appropriate caption for the debit side of the Casli-Book, then, would be "Cash Dr. To Sundries ;'' the debit of cash being the total amount received at any specified time, and the credit of sundries being the separate amounts produced by the different causes represented ; and, on the other hand, the caption for the credit side would be "Sundries Dr. to Cash," cash being credited for the total disbursement as shown, and the sundry causes for which cash was paid debited for their sepanite amounts. It will thus be seen that the debit side of the Cash-Book contains the credits of all accounts for which cash is received ; and the credit side, the debits of all accounts for which cash is paid. Upon the same principle the Invoice-Book, which sustains the same relation to mer- chandise that the debit side of the Cash-Book does to cash, while it shows, in total, the entire cost of merchandise, will also exhibit the separate credits opposing merchandise ; and the Sales-Book, which sustains the same relation to merchandise that the credit side of the Cash-Book does to cash, while it shows, in total, the proceeds of merchandise, exhibits also the separate debits produced by the sales. The diflficulty of which we have spoken will now be apparent ; as, in every case involving any two of these books, the tendency will be to debit and credit the same accounts twice — effecting thus a double entry not contemplated by projectors of the science, and of course not warranted by the 110 SET v.— REMARKS. facts in the case. Thus, all cash receipts being entered, at specified periods, in total, from the debit side of the Cash-Book, and all cash disbursements from the credit side, it would be erroneous to enter cash from any other book ; and the same theory will apply with equal force to the Invoice and Sales-Books. If, therefore, the peculiar rights of each of these books be respected, viz. : permitting all cash entries to be taken to the Ledger from the Cash-Book, and all purchases and sales of merchandise from the Invoice and Sales-Book, it would preclude the entering of cash in the Invoice or Sales-Book, and also of merchandise in the Cash-Book. Take a single example : Suppose the entry to be " Cash Dr. To Merchandise." All cash receipts must appear on the debit side of the Cash-Book, and the entry on that book would be " To Merchandise," extending the amount into the debit column. When the Cash-Book is posted, this amount will, of course, be included in the total cash debit, and must comprise one of the opposite, or credit entries. So cash would be debited and merchandise credited both from the Cash-Book. Again, all sales of merchandise must be entered in the Sales- Book, and when entered the corresponding debit — in this case. Cash — must also be expressed. When the Sales-Book is posted, the total for which merchandise is credited will include this amount (already entered and posted from the Cash-Book), to correspond with which, and to secure the necessary condition of equal debits and credits, cash must again be debited. According to this standard, therefore, in every case where merchandise is either bought or sold for cash, and the fact expressed through these special books, this error of duplicating debits and credits would occur. To avoid this difficulty — the only one which stands in the way of classified original entries — two methods have been successfully used ; one of which places the books upon an equality, using " neutralizing" accounts for the conflicting entries, and the other acknowl- edges the supremacy of some one or more books, to which, in all matters of conflict, the others must yield. To be more explicit : In the case before instanced, " Cash Dr. To Merchandise." If the Cash-Book and Sales-Book were upon an equality, the one claiming to furnish all cash entries for the Ledger and the other all merchandise sales, it would be improper to write Cash as a Ledger title in the Sales-Book or Merchandise in the Cash- Book, for the reasons adduced ; but a neutralizing account might be opened, to take the place of cash in the Sales-Book and merchandise in the Cash-Book, thus receiving a debit and credit of the same amount, which would, of course, cancel it. Suppose the mercbandiso to be sold to A, for cash : In the Sales-Book the entry would be " A " Dr., and in the Cash-Book, "A" Cr. The result would be the same as if A had purchased on a<3count, and subsequently paid t'le amount in cash, thus closing his account. But sup- pose we acknowledge the supremacy of the Cash-Book in all cases where the two are concerned. When merchandise is Gold for cash, the entry m the Cash-Book will be " Cash Dr. To Merchandise," both of which — the debit of cash and the credit of merchandise — will go to the Ledger from the Cash-Book. The same entry can be made in the Sales- Book, but not posted. For this purpose a special column may be used — as in the following examples — which, at such times as the general result may need to be shown, can be extended into the other column, which in the total footing will embrace all the sales. Each of the above methods lias its advantages ; the latter, however, is generally pre- ferred as being more brief and direct, and leading to less confusion. The Invoice Books, and the Sales-Book which follow, contain all purchases and sales of merchandise, with the conditions thereof. All sales and purchases not ?nade for cash pass from these books to the Ledger ; all others, from the Cash-Book. The transactions of this set, and most of the forms, are taken from one of the largest Importing and Jobbing Houses in New York, and may be relied upon as eminently practical. Ill '-J. ^<. \ II SET v.— ROUTINE. ROUTINE. That the student may get the full advantage of this Set, it will be necessary that he pay strict atten- tion to the routine of transactions given below. Let him make the entries in the different books pre- cisely in the order given, I^et the invoices be copied with care, and all the calculations and extensions made by himself. Thus alone will the design of the Set be carried out. The exercises connected with the Foreign Invoice Book, involving compound numbers and the reduction of currencies, are important. In reducing sterling to federal currency, we have taken the Custom House standard of $4.8665 to the £ Sterling. We have also added to each foreign invoice, the duties, which being paid in cash, are not extended with the invoice, but posted from the Cash-Book. In most importing houses, the duties are not extended in the Invoice-Book, but only in the Cash-Book. For good reasons, we prefer the method here adopted. ROUTINE FOR JULY. Jitiy /. — The books are opened, as per first Journal entry. (Inventory-Book copied— Cash-Book com- menced with balance on hand — Bill-Book written up to show the notes, receivable and payable, as indicated in Journal entry.) Bought of C. F. Spalding, on note @ 4 months, Invoice of Sheeting, $553.57 (Dom. I. B.— B. B.) Received per steamer Edinburgh, Invoice of Jaconets from S. B. Higgins & Co., $1259.41; Paid duties in cash, $302.26. (For. I. B. — C. B.) Bought of B. S. Olmstead, for cash, Invoice of Prints, etc., $1303.76 (Dom. I. B. — C. B.) Sold Gordon Bailey, Buffalo, on note @ 8 months, Invoice of Jaconets, $891.35 (8. B.— B. B.) Sold Ira Packard, Peru, Ind., on note @ 6 months. Invoice of Hose and Gloves, $273.52 (S. B.— B. B.) Sold Mdse. this day, per Petty Cash- Book, $97.50 (C. B.) Received cash on % of John Lewis, $500 (C. B.). J,— Paid Francis & Loutrel for Stationery, $16.75 (C. B.) - - Lent J. E. Jenkins, for one day, $1000 (C. B.) Sold Mdse. per Petty Cash-Book, $125 (C. B.). S, — Sold Hiram Newell, Tonawanda, on his note @ 6 months, Invoice of Sheetings, $697.54 (S. B.— B. B.) Received of J. E. Jenkins, return loan, $1000 (C. B.) Paid cash for Postage Stamps, etc., $8 (C. B.) Paid S. S. Packard, on private %, $100 (C. B.). tf.— Received cash of J. H. Lewis, in full of %, $1200 (C. B.) 7.— Paid Richard Real cash, in full of %, $185 (C. B.). ,^.— Sold Mdse. per Petty Cash Book, $157 (C. B.). « /^.—Bought of John Walker & Co., on our note @ 8 months, Invoice of Cotton, $1006.64 (Dom. 1. B. — B. B.) Received per steamer Manchester, from Johnson, Quigley & Co., Man- chester, Invoice of Cotton and Silk Goods, $222.34 ; Paid duties in cash, $44.21 (For. I. B.— C. B.) Bought of Claflin, Mellen & Co., for cash, Invoice of Prints, $2312.52 (Dom. L B. — C. B.) Sold W. P. Pratt, Cincinnati, for cash, Invoice of Jaconets, $714.28 (S. B.— C. B.) Sold Baldwin, Laundon & Co., Elyria, O., on their note @ 8 months. Invoice of Shirting, $869.38 (S. B.— B. B.). //.—Received cash of W. Pennel, in full of %, $483.50 (C. B.). /.^.— Sold Charles Claghom, Homer, 111., Invoice of aoths, $433,12 (S. B.— C. B.) Paid cash for Drayage and Porterage, $55 (C. B.). /4.— Received cash in full of John Gundry's note, $1580 (C. B.— B. B.). /J.— Received per steamer ^tna, from A. & J. Bailey, Bradford, Invoice of Goods, $247.68 ; Paid duties in cash. $47.06 (For. I. B.— C. B.) Sold E. Mussey & Co., Amherst, O., on their note @ 6 months, Invoice of Shirting, $923.25 (S. B.— B. B.) Sold Mdse. for cash, as per Petty Cash-Book, $115.75 (C. B.). / ■> 'i*>TS..l Au^. /.— 6.— 6. 7.- 8,- /(?.— /7.- 20. 2S.- 25,- 27^- 28.' 30.- Sf. ROUTINE FOR AUGUST. Sold 0. C. & E. C. Wright, Lockport, N. Y., on their note @ 6 months. Invoice of Goods, $1432.89 (S. B.— B. B.) Paid cash for Drayage and Porterage, $17.50 (C. B.). Lent J. H. Tobitt, $500 (C. B.). ■Sold C. R. Caulkins, Delaware, 0., for cash, Invoice of Prints, $739.63 (S. B.— C. B.) Sold Mdse., as per Petty Cash-Book, $89.27 (C. B.). Discounted our Note, favor of Geo. A. Crocker; face of note, $1426. Discount off, $19.41 (C. B.— B. B.) Sold D. S. Hoadley, Berlin, O., on his note @ 8 mos., Invoice of Goods, $527 (S. B.— B. B.). O. C. & E. C. Wright's note discounted ; face of note, $1432.89. Discount off, $49.60 (C. B.). Sold Mdse., as per Petty Cash-Book, $150 (C.^B ). ■Sold J. D. Hinde & Co., Cincinnati, on their note @ 8 months. Invoice of Mdse , $752.57 (S. B.-B. B.). Received per steamer Australia, from Wm. Thornton & Co., Bradford, Invoice of Goods, $1462 61. Duties paid in cash, $277.89 (For. L B.— C. B.) Sold Geo. A. Crocker. Rochester, for cash. Invoice of Prints, $912.75 (S. B.— C. B.) Bought of Wilson G. Hunt, on our note @ 8 months, Invoice of Cloths, ^708.40 (D. I. B.— B. B.). -Sold Mdse., as per Petty Cash-Book, $218.50 (C. B.) Paid cash for Drayage, $100 (C.B.). -Sold W. H Woodbury, Chicago. 111., on his note @ 8 months, Invoice of Goods, $908.29 (S. B.— B. B.) Paid J. C. Bryant cash on private %, $150. Sold C. C. Jones, Peoria, IH., on his note @ 6 months. Invoice of Goods, $945.94 (S. B.— B. B.) Sold Mdse., as per Petty Cash-Book, $375 (C. B.). -Received, per steamer Lebanon, from J. Muir & Sons, Manchester, Invoice of Goods, $189.65. Paid duties in cash $45.52 (For. I. B.— C. B.) Bought of Arnold & Constable, on our note @ 8 months, Invoice of Cloths, $1926.14 (Dom. I. 3.— B. B.) Bought of Grinnell & Mintum, for cash, Invoice of Goods, $1492 5S (Dom. I. B.-C. B.) Sold Paul Roberts, Buffalo, for cash. Invoice of Goods, $923.40 (S. B.— C. B.). -Sold Mdse , as per Petty Cash-Book, $175 (C. B.). ■Sold M. Tompkins k Co., Lasalle, HI., for cash. Invoice of Gloves. $460.75 (S. B.— C. B.) C. C. Jones' note discounted ; face of note, $945.94. Discount off, $82.19 (C. B.) Paid Postage, Porterage, etc., in cash, $13 (C. B.) - - - - Sold C. J. Dietrich, Bellefontaine, Ind., on his note @ 8 months. Invoice of Goods, $402.50 (S. B.— B. B.) Sold Baldwin & Co., Cleveland, on their note @ 8 months, Invoice of Prints, $717.47 (S. B.— B. B.). Sold Ubsdell Pierson & Co., St. Louis, on their note @ 8 months, Invoice of Mixtures, $3303.71 (S. B.— C. B.). Sold Raymond & Co., Cleveland, on 8 months note. Invoice of Goods, ^641.72 (S. B.— B. B.). •Sold Jonas Stratton, Amherst. O., on note (a) 8 months. Invoice of Goods, $457 (S. B.— B. B.). Sold Mdse.. per Petty Cash-Book, $115 (C. B.) Paid cash in full of Drayage %, $50.75 (C. B.). 113 *•-.. SET v.— DOMESTIC INVOICE - BOOK. DOMESTIC INVOICE - BOOK. \i- This book contains copies of all invoices of merchandise purchased from importers and others in this country, with the conditions of all such purchases. Each lot and package is distinguished by some peculiar mark, which is transferred to the invoice, thus serving an important purpose in checking the articles, adjusting disputes, etc. I^he purchases on time, for which notes are given, are passed to the Ledger from this book ; those for cash, from the Cash-Book. fTuly 1, 1881. A. T. A. 8. X. A. C. M. C. M. M. 13 14 16 18 90 14 16 18 90 16 18 90 93 596 587 861 841 411 1141 1147 481 491 509 97 C. F. Spalding & Co., 9 ps. 1(M Sheeting, 99' @ 55^ - • U months. 61.01 u u u u t« «4 993 91' 991 452 46' 461 441 45> 46 453 453 46 60 65 70 75 65 70 76 80 75 80 90 96 55.65 59.64 64.58 34.19 30.39 89.38 33.19 36.40 34.50 36.60 40 95 44.16 Note ^ 4 month? from Jaly 5. '%- B. S. Olmstead, 6 months. 5 cases Columbian Prints, 9187* 19183 1985 1886' 1742 9615 yds., @ 8^ Jess i^ - - - • 1 bale 9^ lb. Black Wadding, 80 yds., @ 40^ - 2 bales Brown Qlobe Drills, 1039' 1099 9061» @7| 4 cases Harop Prints, 946 1831' 1969 1581> 1106 1999 1S76 17162 5851, @ gi^, legg 9> % Less 5 % U. 97—1276, short 34 yds. Add error in extending Harop Prints C. B. Amonnts forward 791.18 19.00 157.81 482 91 1373.25 68.67 1304.58 989 1301.76 2.00 1808.76 1303 553 57 16 1303 76 553 57 lU SET v.— DOMESTIC INVOICE - BOOK. Juli/ 10, 1881. [£1 794 800 834 704 a355 9500 8615 9494 9737 9024 7906 8158 9699 199 938 493 388 9095 E. A. E. D. A. C. E. N. E. O. 750 751 758 754 3899 5788 6209 4187 5630 5685 Amounts forward John Walker & Co., smmths. 40 p». Duck Drilling, 14112 (^ 17^ 839.96 40 " " 13892 18 250.11 36 Brown " 14152 25 353.88 42 W. B. Diaper, 2169i 7J 162.69 Note (3^ 8 months from July 10. — — // Claflin, Mellen & Co , 8 months. 50 ps. Prints, 1 875 1782 62 " 813 18313 36133 yds. @ 10^ 361.37 65 " 812 18451 52 " 817 18031 54 " 814 18702 5519 " 9|^ 524.30 61 " 816 21121 59 '' 822 20332 67 " 879 19963 61422 " 9^ 658.83 66 " 818 19451 ♦' 9^ 175.07 63 *' 890 32492 60 " 881 2140 48892 " 74^ 329.21 60 '' 824 21641 89 " 828 90691 49232 " 74^ 316.76 53 " 895 19703 «* g^ 177.87 8436.91 Deduct 5% 121.84 att5.07 liess 1 pc. short, 85* @ 7J^, 5 ^ off - - 9.55 C. B. 2818.52 2a~ Edward Lambert & Co., 4 cases 4-4 Bleached Shirting, 40 17822 40 1736 40 1756 40 17312 0955 yds. ® 9kf. Note (§^ 8 months from July 20. 8 months. ^5- A. T. Stewart & Co., 52 Prints, % 978 52 53 61 49 49 965 967 973 968 971 1868 1884 18951 55871 yds. ® 8# 19242 19542 1929 5808 @8J^ 446.96 493.68 Discount off 5 % 940.66 47.08 C. B, 898.63 Purchases on time (taken to Ledger) Cash Purchases (entered from C. B.) Total for the month • 115 1303 76 553 57 1006 64 :\ 2312 52 660 73 883 63 2220 4509 6730 94 91 85 I» :l SET v.— DOMESTIC INVOICE - BOOK. NEW YORK, August 10, 1881. \i- A. H.M.C. A. K7* M.« D. H. M. C. D. i 1877 1881 1896 1915 1903 1737 1775 1823 1834 1815 1906 1913 733 734 735 539 540 169 170 171 172 173 492 500 501 WiLBON G. Hunt, s mmtha. 82 ps. 3-4 Doeskin, $163 728 281 « 163 899J 22| 870 29 748 29 754 885 894 28J 864 28i 835 28} 860 2»| 834 28| 756 2»i 729 28* 759 2^ 861 28 750 271 233 28i 823 29^ 716 274 J162 554 28| 805 29| 163 833 28J 809| 21| = 616 yds., @ f M5 Kote ^ 8 months from August 10. ^0 Abnold & Constable, lomontfu. 80 Belgian Cass., 1091 80 " 1178» 80 " 1187 88 ** 1094' HO " 1151» 83 World's Fair, 1268 80 " 1168 _ 88 '• 1279» 83 " 1261» 80 *• 1147 80 Sebastopol Checks, 1168' 87 " " 12452 = 14191 yds., @ lS\ <« 68t. 8 doz. Ladies' Lisle Gauntlets, 11«. 6rf. 5 (I »' " " 12». 6d. 5 a tt «« w 22«. Inland Carriage Cases, Oil Cloth, etc. Commission, li% ------- Duties, 24 r^ on Cotton and 15% on Silk— C jl. Paid in Cash. Amounts forward 50 1 SO 1 60 1 16 15 20 20 1 23 «. 18 11 5 11 Is 10 4 14 6 6 8 T2 8 3 3 3 4 1 1 3 5 2 2 8 4 3 5 2 5 14 4S 16 6 19 10 15 2 12 2 10 2 18 18 d. 11 2 6 9 2 6 10 6 6 51 S2 17 16 21 21 94 256 8 954 4 258 9 16 4 17 9 9 15 IT 17 13 2 16 10 4 4 6 "4 7 1 Ml 45 13 9 • Copies of Foreign Invoices, with Import Duties added. 117 ^ 909 44 846 96 12S9 21 47 41 222 1481 34 75 r!t] i ill SET v.— FOREIGN INVOICE - BOOK. NEW YOBK, July 15, 1881. Sterling Current^. Federal Current^. SET v.— SALES - BOOK. SALES-BOOK. p. B. JkCo. P. B. A Co. 5J0 P. B. ikCk*. 54 TO P. B. JkCa ao St as 83 34 ss 674 Amounts forward ....... A. & J. Bailey, Bradford, per Steamer ** Mrm," June 15, 1881. 60J Lavellas assorted, 8028^ (^ 8|% discount -------- Carriage to Liverpool C, B. Duties, 19%— Paid in Cash - - . 20 Jambs Muir & Sons, Manchester, per Str. '' Ldmnoriy" July 10, 1881. 25 ps. White Pioues, 324 yds. - - - . @ 2*. 4tf. Discount off Charges, Commission, etc. .... C. B. Duties, 24%— Paid in Cash - - - Total imports for the month ... Duties on same -• Total costs of imports - . - • 118 48 2 51 50 90 1 88 2 89 1 87 1 87 1 87 1 87 1 87 1 66 87 87 1 17 6 4 12 11 6 16 4 18 13 2 11 8 11 1 11 1 11 1 11 18 5 16 9 6 12 11 10 10 11 _0 8 6. 8 _6 8 _7 8 A 6 6 4 6 10 5 2 10 60 90 90 17 17 1 18 40 88 88 88 88 88 _^ 802 _8 896 _2^ 800 88 13 13 14 12 18 12 5 9 A 10 19 d. 11 _9_ 9 8 9 10 9 10 8 1 X 6 5 11 $ 846 47 47 0(S 106 499 21 74 $ 1481 247 75 68 This book contains all the regular sales, either for cash or on time ; the cash sales being extended in the inner column, are, of course, not included in the amount for which merchandise is credited from the Sales- Book. These sales, together with the petty sales not entered on the Sales-Book, are posted from the Caeh-Book. The total credit of the Merchandise account for the month will agree, in amount, with the monthly recapitulation in the Sales-Book. NEW YORK, July 1, 1881. 442 277 46 888 89 58 41 2171 499 8671 a 55 96 78 I. P. 1462 189 1663 888 1975 B 61 65 26 41 67 306 306 309 310 71 46 46 1 6 100 101 15 13 14 16 18 30 14 16 18 30 16 18 30 33 806 807 Gordon Bailey, Buffalo, N. T. 60 ps. 9-8 Printed Jaconets, 2572 yds., @ 15^ 60 ps. 9-8 10 B. & W. " 15C92 " 10^ 58 ps. " " 1455 " 10^ 66 ps. " " 1394 " 13^ Note @ 8 months from July 1. $385.80 150.95 145.50 209.10 // Ira Packard, 25 doz. Ladies' White Cotton Hose, @^ $1 20 " " 29 " " 1 doz. Pearl Spun Silk Hose, 8} 1 " " 9 4 doz. Black " 9 2 doz. Pearl " 8 doz. Ladies* Lisle Gauntlets, 5 " " 6 " " Note @ 6 months from July 1. Peru, Lid. ' - $25.00 1.25 - - 85.00 1.13 - - 88.77 800 8.00 - 80 00 - 40.00 - 86.00 - 23.75 - 45.00 @$ 7.50 20.00 4.50 4.75 9.00 /} Hiram Newell, Tonawanda, N. T. 2 ps. 10-4 Sheeting, 92J yds. @ 70^ 2 " " 92| 2 '• •' 91| 2 " •* 92J 45i 50i 46i 44^ 45^ 46 45| 45^ 45| Note (§^ 6 months from July 5. 11-4 i4 l( Ik 12-4 (( (I it 75^ - 80^ - m - 90^ - S4«i - 900 - 95<^ - $1 - 950 - 51 - $1.15 $1.25 $64.93 69.56 78.40 78.41 40.95 42.17 41.62 43.04 45.50 43.70 45.75 68.83 67.19 10 W. P. Pratt & Co., Cincinnati, 0. 50 ps. Printed Jaconets, 2540| yds., @ 140 50 " " 2561J " 140 Received Cash. Amoimts forward $355.67 358.61 119 714 714 28 28 891 273 697 1862 35 52 54 41 T*..,.; li if SET v.— SALES - BOOK. yEW YORK, Jul!/ 10, 1881. SET v.— SALES - BOOK. NEW YORK, July 25, 1881. B.L.AO0. Amounts forward Baldwin, Laundon & Co., 4 cai>es Bleached Shirting, Jf 730 40 17321 751 40 1736 798 1745^ 754 40 17412 Kote ® 8 months from July 10. Myria, 0. 6955 yds. J 41 38 674 H. M. & X. 1147 40 928 25 1425 1460 6540 48 14 66 14 16 17 62 231 9356 9500 9096 231 19 B. 1066 Amounts forward BiDWELL & Co., Adrian, Mich. 200 9-8 1400 Robes a Les (10 yds.), ® $2.00 Received Cash. 2S Edwin C. Packard, Crystal Lake, Wis. 6 White Piques, 119^ @ 75^ $89.44 2 " 37-*, @80^ 30.20 4 " 641, ©80^ 61.40 Note @, 8 months from date. Sales on time Sales for cash, entered herein but posted from C. B. - - Petty sales, entered alone on C. B. - Total sales for the month ---.-.- -August 1 O. C. & E. C. Wright, Lockport, N. T. 1 bale Brown Sheeting, 5632 yds., @ 14^ 50 doz. Gents' Linen Hdkff>., 1 case Cotton Damask, 540 yds., 16 pes. Blk. Bombazine, 568 yds.. 1 case Silesia, 2200 yds. Note @ 6 months. 3 @$5 - @20^ - @$1.25 @13^ - $ 78.89 2."30.00 108.00 710.00 286.00 C. R. Caulkins, Delaware, 0. $542.06 236.49 50 ps. Prints, 875 1782 SO " 813 18313 36133 yds., @ 15^ 68 •' 825 19703 " 12^ 778.55 5 ;^ off 38.92 Received Cash. 5 David S. Hoadley, 10 pes. Black Bombazine, 350 yds., (^ $1.10 20 pes. Duck, 710 " 20^ Note ® 8 months. 8 Berlin, 0. - - SS35.C0 - 142.00 J. D. HiNDE & Co., Cincinnati, 0. 1 bale Stark Brown Sheetings, 829 yds., @ 10^ - $ 82.90 1 bale 4-4 Shaker Flannel, 8372 " 50^ - 168.75 12 pes. Green Veil Barege, 200 " 85^ - 70.00 1 case Solid Check Ginghams, 2394 " 180 - 430.92 Note ® 8 months. 120 Amounts forward 121 ii 1147 400 40 6540 66 1547 980 40 75 171 6711 2528 9239 04 70 15 85 1432 89 739 63 527 739 63 752 2712 57 46 h' A. T. A. S. X. A. C. ' lBp. A. B. SET V.-SALES - BOOK. NEW YORK^ August 10, 1881, M. 481 C. 491 M. 509 M. 97 596 587 351 341 411 8 197 19 Geo. a. Crocker, Amotmts forward - Rochester, N. T. 5 ca^es Colambian Priote, 968 21302 959 19133 1935 18863 1742 9608 yds., @ 10^ - - - $960.80 5 % off _48J)6. Bcceived Cash. 15 Wm. H. Woodbury, Chicago, III. 4 cases Harop Prints, 246 13313 1262 15813 1108 1222 1276 17152 6851 yds., @ 12^ 2 bales Brown Globe Drills, 1141 10323 1147 1009 20613 yds., (^ lOf Note ® 8 months. $702.12 206. 11. 17 C. C. Jones, 1 case Paper Cambrics, 2000 yds., (^ 10^ 21 pairs White Blankets, @ $3.63 17 pes. Black Satinet, 409 yds., @ 75^ 17 pes. Dnck, 662 @ 20,@ 16^ - $75.25 18.75 63.20 484.52 Note @ 8 months. -so- JONAS STRATTON, Amherst, 0. I doz. Men's Nov! Silk Shirts, @ $20 1 1 1 66 M Printed Jaconets U M 25 - - - 80 • • ■ 85 - • • 8 - . . 8 50 - - - $10 25 30 35 168 189 Note @ 8 months. Sales on time Sales for cash, entered here and posted from C. B. Petty sales, entered alone on C. B. Total sales for the month 123 3036 53 3036 1132 53 77 4969 717 19 47 8303 I 71 641 4:7 10089 4159 14248 09 30 39 >:)^ m ^ (w^ •III SET V. This is the most convenient form for a Cash-Book to be kept in connection with a general merchandise business ; the feature of special columns may be extended, if desirable. It will be seen that all cash entries, debit and credit, are taken to the Ledger, either through the Journal or directly, from this book, together with all accounts producing or costing cash. The amounts distinguished as "per petty Cash-Book," are entered here from a book Dr, Cash. Mdse. Sundries. Balances. 1881 July 1 Amonnt on hand - - - - 6725 20 1 Mdse. - - - Sales, per petty Cash-Book - - 97 50 1 V J. H. Lewis - Received on % 500 3 Mdsc. - - - Sales, per petty Cash-Book - - 135 5 f' Loan - - - Return from J. E. Jenkins - -< 1000 6 V J. H. Lewis - Received in ftill of % .... 1200 • 8 Mdse. - - - Sales, per petty Cash-Book - . 157 10 Mdse. - - - Sold W. P. Pratt, Cin'ti (S. B.) - 714 28 11 V W. Pennel - In ftill of % 483 50 - 12 Mdse. - - - Sold C. Claghom, Illinois (S. B.) 433 12 14 V Bills Rec'ble - John Gundry's note duo - • - « 1580 15 Mdse. - • - Sales, per petty Cash-Book - - 115 75 18 - ^/ Bills Rec'ble - S. S. Pomeroy's note discounted 1000 21 Mdse. - - - Sales, per petty Cash-Book - - 127 50 25 , \^ Bills Rec'ble - Starr & Co 's note discounted 1425 48 25 Mdse. - - - Sold BidweU & Co., Adrian (S. B) 400 27 Mdse. - - - Sales, per petty Cash-Book . . 275 30 Mdse. - - - Sales, per petty Cash-Book - - 83 81 ^ Y R. Barker - - Rec'd in full of % 15 1000 98 2528 8188 1 Kdse. Sales for cash .... Total cash rec'd during month Balance on hand - - - . 2528 15 13 10717 10717 13 17442 33 Lug. 6610 57 3 Mdse. - - - Sold C. R. Caulkins, Del. (S. B.) - 729 63 3 Mdse. - - - Sales, per petty Cash-Book - . 89 27 6 i f Interest - - Discount on note favor G. A. C. • 19 41 6 t f Bills Rec'ble - Disc. 0. C. & E. C. Wright's note 1432 89 7 Mdse. - - - Sales, per petty Cash-Book - . 150 10 Mdse. - - - Sold Geo. A. Crocker, per S. B. . 912 75 12 Mdse. - - - Sales, per petty Cash-Book . - 218 50 17 Mdse. - - - Sales, per petty Cash-Book - - 375 20 Mdse. - - - Sold Paul Roherts, per S. B. - - 923 40 23 Mdse. - - - Sales, per petty Cash-Book . - 175 25 y Bills Rec'ble - Discounted C. C. Jones' note 945 94 25 Mdse. • . . Sold M. Tompkins, per S. B. - - 460 75 81 Mdse. - - . Sales, per petty Cash-Book - - ills 80 24 4159 2398 • Hdse. Sales for cash .... Total cash rec'd during month - 4159 30 54 6557 54 6557 13168 11 lU CASH-BOOK. containing sales too insignificant to be entered on the regular Sales-BooK. The column headed "Balances," will be found very convenient for the purposes for which it is used. The check-marks, in the column following dates, are made to indicate that the amounts opposite in the "Sundries " column have been journalized. Were these amounts posted directly to the Ledger, the Ledger-page would be written instead of the check-marks. .* 1881 July Aug. Cash. 1 1 3 3 5 5 7 10 10 12 15 18 20 23 25 25 25 25 29 : V V V V V V V 1 2 5 6 10 12 V 15| V 2 2< 25j V 25 V 31 V Mdse. - - - Mdse. . - . Expense - . Loan - - . Expense - - S. S. Packard Richard Beale Mdse. . . - Mdse. - - w Expense - - Mdse. - - - Interest - - J. T. Calkins Bills Payable Mdse. . . . Mdse. . - .' Expense - - Interest - - D. V. Bell . Expense - - Loan - - - Bills Payable Interest - - Mdse. - • - Expense - - J. C. Bryant - Mdse. . - - Mdse. . - - Expense - - Interest - - Expense - - Paid duties, per Foreign I. B. • Olmstead's Invoice, per Dom. I. B. - - - Francis & Loutrels's stationery bill . - - . Lent J. E. Jenkins for one day Postage stamps, $3 ; Drayage, $5 . - . . Paid him on private % - - PaM him in fliU oJT % Duties, as per Foreign I. B. Claflin, Mellen & Co.'s Inv. per Dom. I. B. • Drayage and porterage Dirties, as per Foreign I. B. Diacount dn Pomeroy's note Onprivat#% Note favor H. G. Smith due Duties, pef Foreign I. B. A. T. Stewart & Cd.'s Invoice, per Dom. I. B. Clerk hire, $40 ; $C5 Discount on Starr & Co.'s note On private % Mdse. purchased for cash ...--_- Total cash paid out during the month - - Balance on hand - Mdsb. Paid Drayagp, |10 ; porterage, $7.50 - - Lent J. H. Tobitt Discounted note favor Geo. A. Crocker - Discount on O. C. & E. C. W.'s note - . Duties, as per Foreign I. B. Paid drayage, on % Paid on private % ... - Duties, as per Foreign I. B. Bo't of Grlnnell, M, & Co., per Dom. I. B. Porterage, $6 ; postage, $3; charity, $5 - Discount on C. C. Jones' note Paid drayage in full Ifdse. purchased for cash - Total cash paid for the month - - . . Balance on hand 802 1303 44 2312 47 106 893 26 76 21 52 06 21 63 5009 65 277 45 1492 1815 89 52 68 99 Or. SUITDBIES 16 1000 8 100 185 55 16 150 4000 65 60 176 5822 10831 6610 17442 17 500 1426 49 100 150 13 32 60 2339 1815 4166 901S 13168 75 92 44 11 5009 66 76 57 33 50 60 19 75 04 99 03 08 11 "*.-.. rmi I >• 125 ...yi^ 9^i w HI If I SET v.— BILL -BOOK. The Bill-book can never, with advantage, be made a principal book, from which to post ; although some authors have attempted so to use it. The form presented below is the best for general purposes, although the arrangement in the former exampk is more comprehensive. ^ *"w*c BILLS RECEIVABLE. No. Whin DRAWEB OS 1 ( 1 Rec'j>. £nIX)R8ER. Drawee or Maker. Date. Tms When AlfOUNT. When and How — Due. Disposed or 1881 1881 1 Joly 1 H. W. EDsworth - - John Gundry . . . . Jan. 11 6 mo. July 14 1580 00 July 14 Paid. S " 1 Daniel Atwood • - S. S. Pomeroy . . . Mar. 12 8 mo. Nov. 15 1000 00 tt 18 Discounted. 8 " 1 P. B. ACo. - - - Gordon Bailey - . - July 1 8 mo 1882 Mar. 4 891 35 4 " 1 H. B. Bryant - - - Ira Packard . . . . " 1 6 mo. Jan. 4 273 62 6 " 5 Paul Roberta - - - Hiram Newell - - . '» 5 6 mo " 8 607 54 6 " 10 H. D. Stratton - - Baldwin, L. «fc Co. - . " 10 8 mo. Mar. 13 809 38 7 *• 15 P. B A Co. ... E. Massey & Co. . - " 15 8 mo. " 18 923 25 8 " 20 J. Q. Reid .... Starr & Co. . . . . " 20 6 ma Jan. 23 1425 48 July 25 Discounted. 9 " 22 Jno. D. Hinde . . Murray, S. & Co. - . " 22 8 mo. " 25 1400 14 10 " 28 Wm. P. Eaton - - E. C. Packard . . . " 28 8 mo. Mar. 31 171 04 11 Aug. 1 James Atwater > . 0. C. l;jlK A.) 127 s • iiti Mb I ' • ' ! Ill SET V.-JOURNAL. NEW TOHK, July 1, 1881. Sandries Cash . - . Merchandise - Bills Receivable Store Rent John Lewis Robert Barker William Pennel To Bills Payable R. P. Beale S. S. Packard D. V. Bell J. C. Bryant J. T. Calkins • To Sandries, Besonrces and Liabilities of S. S. Packard, D. V. BeU, J. C. Bryant, and J. T. Cal- kin?, partners in the firm of " Packard, Bell & Co.," doing a general Jobbing and Importing business in the City of New York ; as taken ft-om the Balance Sheet of their last Ledger: Amonnt on hand, per Cash-Book - - " ' ", Inventory-Book - - Notes on ha^d, per Bill-Book Advance payment for rent Balance of /c - - - Notes ontstanding, per Bill-Book Balance of%-- Net Investment 31 Merchandise To Sundries To Bills Payable - - For the following Invoices per Dom. L B. : From C. F. Spanlding, July 5, $ 558.67 " J. Walker & Co., " 10, 1006.64 " E. Lambert «fe Co., " 20, flfiQja To S. B. Higgins - - Invoice of July 1, per For. I. B. - . - - Johnson, Quigley & Co. " lo, •• - . . . A. & J. Bailey - - •• 15, »» .... S. T. Horton - - - •• 23, *' .... // Bills Receivable To Merchandise Sales for the mouth, per Sales-Book: Gordon Bailey, J Ira Packard, Biram Newell, Baldwin, L. & Co., E. Mnssey & Co., Starr & Co., M. Shipley & Co., ' Edwin C. Packard, ' 1, 1 891.35 1, 273.52 5, 697.54 10, 869.38 15, 923 25 £0, 1425.48 22, 1460.14 28, -3171.04 ff Cash ToMdse. - - - John H. Lewis Loan - - - Wm. Pennel - Bills Rec'ble - Robert Barker To Sandries Eecclpts per Cash-Book: Total Sales for cash - • Rec'don %,$500: $1200 lietnm from J. E. Jenkins ... - In fall of "'^ Rec'd on notes, $1580; $1000; $1425.48 Inftillof% 6725 11432 2580 20"0 roo 1000 483 20 84 4392 50 92 6711 70 8926 185 4202 63 4202 63 4202 64 4203 64 10717 2220 1259 222 247 442 13 94 41 34 68 56 6711 47743 29 2528 1700 1000 483 4005 1000 ro 47743 15 50 48 29 128 SET v.— JOUKlSrAL. NEW rOMK, July 31, 1881. Sundries To Cash Disbursements, per Cash-Book: Purchases, etc., for cash - - - . As per items, $16.75 ; $8 ; $55 ; $C5 Lent J. E. Jenkins Paid on private % In full of % Mdse. - - . Expense - - Loan - - _ . S. S. Packard - Richard Beale Interest pg,. J. T. Calkins - . . Bills Payable - - . items, $16.92 ; $50.44 D. V. Bell Paid on private % Paid on private "c Redeemed note favor of J. H. Smith —Aug. 31 ■ Merchandise ..... To Sandries . To Bills Payable . . Invoices per Dom. L B. To Wm. Thornton & Co. J. Mair & Sons - - From Wilson G. Hunt, Aug. 10, $708.40 " Arnold & Constable, " 20,1926.14 Invoice of Aug. 10, per F. I. B. «« it an ti «u, .... ft Bills Receivable To Merchandise Sales for the mouth, as per Sales-Book: O. C. & E. C. Wright, Aug. 1, $1432 David S. Hoadley, " 5, 527 J. D. Hinde & Co., « 8, 752 Wm. H. Woodbury, '' 15, 908 C.C.Jones, » 17, 945 C. J. Dietrich, »' go, 402 Baldwin & Co., «' 25, 717, Ubsdell, Pierson & Co., " 27, 3303 Raymond & Co., " 28, 641 Jonas Stratton, ♦' go 457 .89 .00 .57 .29 94 .50 .47 .71 72 ,00 n Cash • - To Sandries - Receipts per Cash-Book ■^o^^se. Total sales for cash - Interest .... Bills Rec'ble - - - Discount on note favor G. A. C. ... Received on notes, $1432.89 ; $945.94 - - 5009 144 1000 100 185 67 150 4000 175 4286 65 75 10831 36 80 10089 09 76 2634 1462 189 // Sandries Mdse. - - Expense Loan - - Bills Payable - To Cash Disbursements, per Cash-Book : Purchases, etc., for cash Per items, 117.50 ; $100; $13; $50.75 - Lent J. n. Tobitt Discounted note favor G. A. C. - - . 6557 54 61 65 10089 54 Interest Per items, $49.60; $32.19 . . J. C. Bryant .... paj^ on private % - . . . 1815 99 181 25 500 1426 81 79 150 4159 19 2378 09 ao 41 83 35920 4155 03 22 35920 22 129 ■I" I I It- J w.. 'v 14.J -^-# i^ >. li' if 55rSSS SS et • I t I ' '^ipi?? ss et e* Q o a* m u 03 §S3S?SS •^JSSSS 5- 'SS- ^ TT 'T Tl» •^ 2 ,S CV I £3t-i 11 ) I . . Tl , »^ Ox ^H 5; ■ I • I ssss ^ !a§8S ■ • CO COCSO"^ iQ 00 ^^ 1^ T— ( »-< «^ « s «0 ee," •/o/ 7 o 00 ^ 00 5< ''''•••'■lltlllltl»tll ''''•'•■> ••■Ill o • • • ' O 6^ • ' ........ .««^^. O) ft) ■ 5 ,-3 ':S=2'«'* 130 •-iv.-.' 1 QUESTIONS FOR REVIEW.— SETS IV AND V. Remarks.— Page 66. 7. Wliat are the characteristics of Set IV ?-?. What advantage does the Day-Book in Journal form have over the Historical Day Book ?-J. What is meant by " Merchandise (\)mpanie8"'-^ In what particulars does this kind of copartnership differ from general copartnerships 1-5. Wherein do the two methods of keeping Mdse. Co. accounts, as shown in this set, differ ?-5. What is the principle recog- nized m the/r.< method?-?. What in tha second method ?-6'. Give an illustration of each.-9 By the first method, when more than two parties are interested, what entrv should the eomfgnee make on receipt of the property to be sold on joint % 1-10. What, the consfgnor upon shipping the property ?- JL What, the other parties?-/.'. By the second method, when three or more parties are interested, what entry will the consignee make on receiving property to be sold on joint % t—l3. What, the coii- signorf—14. What, the other parties ?-/5. Is there any difference in the final result by these separate methods?— /g. When is the condgn-e considered responsible by the first method?—/- When, by the second t—18. Are Mdse. Co. accounts to be classified «s Fin-u,c,al, or B. Is there any necessity for a BoUince account?— .-.j-. How mav its place be filled?— ^4- What is the usual entry in bringing down balances of resources and liabilities 'f—?\'i What is the advantage of auxiliary books t-26. Can special Books of entry be so used as to dispense with the JournaJ ? Balance Sheets and Auxiliaries.— Pages 90 and 93. er. Explain the method of ruling the Balance Sheet.— ^<9. VHiat advantages has this form over most others in use 1-20. What objection is there to a multiplicity of auxiliarjr books t-,W. How is this objection removed in large establish .nents t-SL What are the essential points in a business letter ? St! Remarks on Set V.— Page 110. 32. What business is represented by this set?— J^. What are its features?— 7.^. Has this method any advantages over that of consecutive entries, hitherto shown?— >?5. Wliat are they?-.?6. What difficulty lies in the way of using the various books of original entries as principal books?—.??. What e'lould the Cash Book show ?-,^,?. How is it made to show all receipts and disbursements ?-,?.9. What will the difference between the two sides of the Cash-Book represent ?—.^^. When Cash is debited on the Cash-Book, what is credited ?-4/. Is every entry made on either side of the Cash Book really a dovble entry ?—4^. What would be a proper caption fjr the debit side of the Cash-Book ?-4;?. What, for the credit side?— 44. What credits are shown on the debit side of the Cash-Book t-45. What debits on the credit side?— 46\ Does the same principle hold with reference to the Sales Book and Invoice Books?— 47. State the difficulty liksly to occur in transactions required to be entered in two of these books — 48. If the peculiar rights .)f each b')ok are respected, will it be proper to post Cash from the Sales or Invoice-Book, or Merc-ianJise from the Cash-Book I—49. What wouU be the effect of such [.osting?- 50. How many raetliods are there of avoiding this difficulty ?-5A What are they?— 5^. Which of these' methods is preferable 1-53. Which is used in this set?-^^. What d:)es the Inventory-Book in this set contain, and how is it used 1—55. What does the Domestic Invoice-Book contain 1-56. What entries are passed to the Ledger from this hook 1-57, What does the Foreign Invoice Book contain 1—58. The Sales-Book ?— 55. With what will the total credit of Merchandise account for the month agree?— 6^. Explain the characteristics and us 3 of the Cash-Book.—^/. Are aH tin debits and credits appearing on the Cash Book posted ?— (5 ?. What amounts are entered in the " Sundries " colunm ?—6V?. How are these amounts posted?— (74. What does the check mark opposite these amounts denote?— C5. What would be written instead of the check marks were the amounts posted dlrecUy from the Cash-Book 1-GG. Can the Bill-Book be used to advantage as a principal book ? 131 ^f!^' t-. ,.■ r>» r > SINGLE ENTRY CHANGED TO DOUBLE ENTRY, WITH AMPLE ILLUSTRATIONS AND EXPLANATIONS, EMBRACING TWO DISTINCT SETS OF BOOKS BY SINGLE ENTRY, k!i I ivx *\{ ■y ^ ONE REPRESENTING THE BUSINESS OF A RETAIL MERCHANT AND THE OTHER THAT OF A BUILDER, BOTH OF WHICH ARE CHANGED TO DOUBLE ENTRY, AND TIJE BUSINESS CONTINUED. 'lit" /AT THE LATTER SETA DISSOLUTIOyf OF COPARTNERSHIP TAKES PLACE, AND THE STUDENT IS REQUIRED TO WRITE UP ORIGINAL TRANSACTIONS TO COMPLETE THE SET. V ir I' (i 133 *' ! \^ m SDsGLE ENTRY. CHANGING SINGLE TO DOUBLE ENTRY. It is unfortunate that the terms " Single Entry " and " Double Entry " should have come to mark, in popular thought, the distinction between two " systems " of Book- keeping ; as because of this it is made the duty of teachers and authors to draw certain positive lines of demarcation, and treat an imperfect method with considerations to which it is not entitled. It is true that what is termed Single Entry Book-keeping is practiced to a greater or less extent in reputable business, and it is also true that it is never prac- ticed where Double Entry would not serve the purpose better. To say that Single Entry causes less writing — if it ever does — is to say that it thus conveys disproportion- ately less information ; and to assume — as is sometimes done— that Double Entry, as compared with Single Entry, is intricate and mysterious, and that it serves as a conven- ient cover for fraud, is to evince great ignorance of the whole subject. The real differ- ence between the two " systems " lies in the quality of information secured and the form of the original entry. The Double Entry form is altogether more economical — causing less writing for the same amount of information ; and the facts of the business which Double Entry gives and Single Entry does not, are just the facts which every intelligent and enterprising man wants to know. As has been shown in the foregoing lessons. Double Entry comprises a system of equations by which effects are exactly measured by causes, and causes by effects, while Single Entry presents but one side of the equation, and that imperfectly. The Double Entry Ledger is always in equipoise, and always affords a perfect survey of the business, both in its active processes and in its results ; while the Single Entry Ledger contains merely the evidences of personal indebtedness for and against the business — in other words, personal accounts. There must, of course, be a way of getting at the property and debts, and this is done, except as to personal accounts, outside the Ledger. The cash on hand is usually shown in the Cash-Book, and the notes, receivable and payable, in the Bill-Book ; while the value of unsold prop- erty is ascertained as in Double Entry. The Single Entry Ledger, so far as it goes, does not differ, in effect, from the Double Entry Ledger. It simply falls short of the true idea of a Ledger, which is to present the progress and condition of the business. The object of the exercises which follow is twofold — first, to show the characteristic points of Single Entry, with its possibilities as a system of record, and next, to mark the distinction between Single Entry and Double Entry. The latter purpose is served by converting a set of Single Entry Books into Double Entry, and continuing the business under that form. It will require but little perspicacity to follow the transactions of the Single Entry set to the books of final record. The form of expression in the Day- Book is to be noticed, as it is this form which has given to the system its designation. For every entry in the Day-Book, a single entry is made in the Ledger; and as no entry is made in the Day-Book except to debit or credit a personal account, so there are no other than personal accounts in the Ledger. The facts about cash and bills are recorded in separate books ; while the progress of the business can be shown only in a general way, by know- ing the increase or diminution in wealth. Of course, no system of book-keeping would at all answer the requirements of business which did not afford the means of getting at the resources and liabilities ; and knowing them, the changing of Single to Double Entry is scarcely more than a mechanical process. 134 SINGLE ENTRY. The student who has gone through the analyses of the previous sets will have no diffi- culty in understanding how the net gain or net loss can be ascertained, even without the business accounts, and hence will readily follow the process shown in the Preparatory Statement, by which the equilibrium of resources and liabilities is made to appear as the foundation of Double Entry. In writing up the transactions in the two forms, while the superiority of Double Entry will be plainly recognized, the points of distinction will be apparent, and the pos- sibilities of Single Entry brought to view. ■J 'l'iiU2 1 . ;t( ' 135 ri 1880 Jan. SINGLE ENTRY. deceived. 1 1 3 3 3 5 5 7 9 9 10 12 13 15 15 16 16 17 20 22 23 23 25 25 27 27 80 31 James Mason's Investment - Robert Walker's Investment John Simmons,— Coat, $20 ; Pants, $9.50 ; Vest, $7 - - - Joseph Kinsey, on% ._. Miscellaneous Sales, per tickets -- W. H. Beebe,— Overcoat, $35 ; Vest, $7.50 ; Cravat, $1.50 - Miscellaneous Sales, per tickets John Mason, Invoice Ready-made Clothing -....-. Balance on hand ••-. Robert Hall,— 6 yards blue Broadcloth, @ $5 - . . - Wm. H. Joeckel, — Business Suit Bill of Goods ordered by P. T. Barnum -.-.." 1 doz. Hdkfs. $3; 3 doz. Cravats, $30; 2 doz. Collars, A. B. Butts,— Dress Suit Miscellaneous Sales, this week, per tickets .... Balance on hand .--.... Bill of Goods to P. Evans, Cincinnati ---.:. 3 doz. Cravats, $40 ; 5 doz. standing Collars, $13.50 Assortment Ready-made Clothing,— J. Allen, Pittsburg Miscellaneous Sales for the week, per tickets - '- - Balance on hand -- 2 doz. Cravats, %Z^ ; 6 Vest patterns, $35 ^ .-.'..• . 1 pair Pants, $9 ; 1 Dress Coat, $25 ; 1 Cravat, $1.50 • - - Bill of Ready-made Clothing,— C. S. SiU, Troy 6 doz. Hdkfs., $20 ; 8 doz. French Yoke Shirts, $170 - - - Ira Packard, — Dress Suit .>. Miscellaneous Sales, this week, per tickets •. Balance on hand 136 CASH- 50 3000 1000 36 15 58 I 25 44| 39 175 4368 63 88 4156 30 23 350 38 40 450 5087 5003 375 63 500 378 38 38 6311 6175 65 35 175 190 36 822 6999 63 50 95 08 6834 58 50 50 15 73 73 BOOK. SINGLE ENTRY. Taid, 1880 Jan. 3 7 7 7 Stationery, $10 ; Painting and Cleaning, $15 Seamstress's wages, $27 ; Qerk hire, John Jones, on % Balance on hand 13 14 11 19 20 21 2\ 25 80 80 30 ^ I Sundry expenses, per Expense-Book . - . Seamstress's wages, $50 ; Clerk's hire, $18 Balance on fiaiid 25 37 150 4150 4368 15 68 5008 SS 38 Sundry expenses, per Expense-Book - - Seamstress's wages, $75 ; Clerk hire, $18 Office Desk and Chair Balance on hand Sundry expenses, per Expense-Book - Seamstress's wages and Clerk hire - Cutter's wages for the month - . - Balance on hand 75 63 5087 38 12 93 30 C175 6311 15 75 75 GS34 50 53 08 6999 7.t 73 "-^ 'm )> •> 137 m /^^> SINGLE ENTRY.— DAY - BOOK. PHILADELPHIA, January i, 1880. James Mason and Robert Walker unite in copartnership in a Gentlemen's Furnishing establishment. They invest equally, and share equally in gains and losses. James Mason, By Cash invested - - - - . Merchandise, per Inventory Sundry Notes, per B. B. Cr. 13000 4500 750 James Mason, To balance due John Jones Robert Walker, By Cash invested - - - Store and Fixtures - Dr. ft Or. 11000 6750 ft John Jones, By amount owing him by J. Mason Cr. William Patterson, To 1 pair Doeskin Pants - - - 1 Blue Broadcloth Coat - - • 1 Figured Satin Vest . . - . 12 Pocket Handkerchiefs, @ 50'^ 3 Dr. % 9 22 7 50 6 Joseph Kinsey, Dr. To 1 doz. Fancy Neckties $12 11 doz. Byron Collars, @ $3 4 50 6 Vest Patterns, assorted - 35 8 yds. Farmer's Satin ..-.-. 6 3 doz. pairs Gents' Hose 9 Contra, By Cash on % Cr. James M. Doolev, To 1 doz. Fine Shirts 3 " Lamb's Wool Undershirts, @ $15 3 " pairs Flannel Drawers, @ $15 - Dr. $24 45 45 6 Sumner Packard, Dr. To 3 yds. Fine French Broadcloth, @ $5 $15 12 yds. English Cassimere, @ f 2 - 24 John Jones, To Cash paid on % Dr. 138 8250 500 7750 500 44 50 66 15 114 50 39 150 <^ SINGLE ENTRY.— BAY - BOOK. PHILADELPHIA, January 0, IS SO. Jabez Dunham, To Wedding Suit, per contract 10 James M. Dooley, By 10 tons Coal, for use of the store, @ $5 12 Robert S. Hay ward, To 1 Frock Overcoat . - - . 1 Dress Coat --_... 1 pair French Cassimere Pants Erastus Young, To Making Dress Coat - Vest - - - Repairing Coat - - u 16 Robert S. Hay ward, By his note @ 30 days to balance % 17 — David T. Fuller, To 1 Frock Coat IVest .-..---. 1 Overcoat for Master Frank IS Charles Claghorn, To 6 Shirts (French Yoke), @ $2.50 - - 10 pairs Socks. @ 25^ Drawers and Undershirts, 2 each, $1.25 'JO Henry D wight. To Frock and Pants for Master Silas ■ 21 Schuyler Cor bit, To 1 Dress Coat .... 2 Neck Ties - - - 6 Pocket Handkerchiefs 25 Wilson G. Hunt & Co., By Bill of Cloths, per Invoice 30 Henry Shaft, To 1 pair Pants 1 Dress Coat 139 Dr. Cr. Dr. $30 25 10 Dr. $9 3 2 Cr. Dr. $30 5 50 12 Dr. $15 2 50 5 Dr. Dr. $23 3 1 50 Cr. Dr. $ 9 25 59 60 65 14 65 47 50 22 10 27 575 34 50 50 i ■^»«,. •tr" |!- I SINGLE ENTRY.— LEDGER. Dr, James Mason. Cr. 1 1 1880 Jan. 1 To Balance dne J. J. . ■ 1 500 1880 Jan. 1 By Investment - - - . 81 } net gain . . . . 1 9sm 681 61 Dr. 2 Robert ^Valker. Cr. * 1880 Jan. (I 1 By Investment - - - - 31 \ net gain - - . . 1 7750 681 63 Dr. 3 John Jones. Cr. 1880 Jan. 7 To Cash 1 100 1880 Jan. 1 By Balance due him - - 500 Dr. 4 Win. Patterspn. Cr. 1880 Jan. 1 i To Sundries 1 44 60 1 1 ^ Dr. 5 Joseph Kinsey. Cr. 1880 Jan. a 1 ToSnndiiea 1 66 50 1880 Jan. a By Cash 1 15 Dr. 6 James M. Dooley, Cr. 1830 . Jan. 4 To Sandries - - - . - 1 114 1880 Jan. 1( ) By 10 tons Coal - - . . 1 50 Or. 7 Sumner Packard. Cr. 1880 Jan. 5 To Sundries - - - - . 1 39 Dr. 8 Jabez Dunham. Cr. 1880 Jan. 9 To Wedding Suit - - • 1 59 1 i ■ 140 SINGLE ENTRY.— LEDGER. Dr. 9 Robert S. Hayward. Cr. 1880 Jan. 12 To Sundries 2 « 1880 Jan. 16 By Note @ .30 days - . 9 65 Dr. ■= — ^ — . lO Erastus Young. Cr. I860 Jan. 14 To Making and Repairing 2 14 Dr. 11 David T. Fuller. Cr. 1880 Jan. ] 17 To Sundries 47 60 1 Dr. 12 Charles Claghorn. Cr. 1880 Jan. 18 To Sundries 3 33 50 1 Dr. 13 Henry Dwight. Cr. I860 Jan. ao To Frock and Pants - - i 10 - » Dr. 14 Schuyler Corbit. Cr. WdO /an. 81 To Sundries 3 37 60 J 1 I ' Dr. 15 ^Vilson G. Hunt. Cr. 1 1880 Jan. 85 By Mdse. i 575 Dr. 10 Henry Shaft. Cr. 1880 Jan. 80 To Sandries s 84 "^M % K 141 PROCESS OF CHANGING. ^'1 1^ PROCESS OF CHANG-ING-. The student need not here be told that the first requisite in opening a set of Double Entry books is a statement of resources and liabilities. This statement is also necessary in Single Entry as often as it is required to know the progress or condition of the busi- ness for any purpose. In the preceding Ledger we have a record of such of the resources and liabilities as consist of personal accounts, — the rest must be gathered from other sources. Inasmuch as the partners v/ere credited, each for his net investment, we can tell from their accounts what was the original capital. If now there be either more or less net resources than this investment, the result will shojv a gain or loss, as the case may be. If a gain, the partners should, of course, be credited in their proportionate shares ; or if a loss, be debited. This will, again, equalize the resources and liabilities, and give the data for a Double Entry Ledger. To this end we present the following Preparatory Statement. Statement of the Resources and Liabilities of James Mason and Robert Walker, who have this day changed their books from Single to Double Entry. Resources. Personal Accounts Receivable (already posted) - - - Notes Receivable on hand, per Bill- Book - - - - Cash, per Cash-Book ----------- Merchandise, per Inventory - Store and Fixtures, per cost rL labilities. Personal Accounts Payable (already posted) - - - James Mason, Net Investment -------- Robert Walker, " Total net gain in business James Mason's i.------- $681.01 Robert Walkers i 681.G2 413 815 6834 2975 6750 925 7750 7750 »0 73 17788 1C425 iMa. 23 2iL From this schedule it will be seen that when the above resources and liabilities are duly entered upon the Ledger — the resources to the debit, and the liabilities to the credit of the accounts representing them — they will lack just the amount of net gain ($1363.23) of balancing. If this amount, then, be entered to the credit of the partners, where it properly belongs, and the additional accounts opened, we shall have the commencement of a Double Entry Ledger. We now complete this process, crsditing the partners each for his J gain, and open- ing accounts in the supplementary or completed Ledger with the additional resources : Bills Receivable, Cash, Merchandise, and Store and Fixtures. These four new accounts constitute the " change," and will serve very clearly to show the exact difference in the two systems, so far as the Ledger is concerned. 142 DOUBLE ENTRY— LEDGER. Bt, Bills Receivable. O. 1881 Jan. 31 Notes on hand. 815 Dr, Cash. (7r. 1881 Jan. 21 On band. 6834 73 ^ 1 J^^' Merchandise. €i\ 1881 Jan. 31 On hand. 2975 V X Dr. Store and Fixtures. Cr. 1881 Jan. 81 Valuation. 6750 It is important before commencing the current record of business in Double Entry books, to ascertain if the Ledger balances. AVith this view we submit the following Balancbs. Trial Balance. Face of Ledgbb. Dr. 44 51 64 39 59 14 47 22 10 27 84 815 6834 2975 6750 17788 60 50 50 50 50 73 23 Cr. 8431 8431 350 575 .7788 ii 61 62 23 James Mason - - Robert Walker - John Jones - - Wm. Patterson • Joseph Kinsey - James M. Doolcy Sumner Packard Jal>ez Dunham - Ei-astus Young - David T. Fuller - Charles Claghorn Henry Dwight - Schuyler Corbit - Wilson G. Hunt Henry Shaft - - Bills Receivable - Cash ... - Merchandise - - Store and Fixtures Dr. 500 150 44 66 114 39 59 14 47 22 10 27 34 815 6834 2975 6750 lia'JOS 50 50 50 50 50 r8 23 Cr. 8931 1 61 8431 02 500 15 50 575 8503 23 /^ The books are now to be continued in Double Entry, from the following transactions. 143 ^4\ 4^ rtt<'. DOUBLE ENTRY— DAY-BOOK. DOUBLE ENTRY.— DAY BOOK. !; JPHILADELPHIA, Fehruarij 1, 1881. » ■-- Sold Robert Milbum for Cash, 1 doz. Suspenders 4 " Cravats % $15 3J '' French Yoke Shirts (fine) . @ 30 10 " Standing Collars . . . ^ % 1 80 $ 4 50 60 105 18 2 Reieeived Cash for rent of upper story, one month // Paid Robert Walker Cash on private % ■ S _ Accepted John Jones's draft on us @ 30 days, favor A. B. Butts 5 Bought of Dunham & Brokaw, on our note @ 60 days, Mdse., per Invoice /v Sold Wm. Patterson * on %, 3 doz. Vest Patterns @ $50 10 yds. Blue Broadcloth, . . . . @ 6 20 yds. French Cassimere . . . . ® 4 : 8 1150 60 80 Received of James M. Dooley, Cash in full of % ft Paid the following expenses in Cash : Clerk hire $ 25 Seamstress's wages 115 10 Sold R. C. Davis & Co., Albany, on their note @ 4 months, Mdse., per Livoice - . . . . ^ 12 . Bought of James Dunham, for the private use of Robert Walker, 1 Firkin Butter, 100 lbs. ... @ 25 cts $25 ] Bbl. *' Seek no Further" Apples 6 1 do Cider Vinegar 8 Paid him per order on Sumner Packard. IS ^ Received Cash of Joseph Kinsey, in full of % 15 Sold Edwin Forrest, on %, 1 Suit Fine Broadcloth 17 Paid Advertising Bill in Cash * Be caref al not to open the same account twice, 144 187 50 100 350 50 700 290 64 140 500 39 51 50 75 50 :PniLADELPHIA, February 20, 1880. Paid Cash for insurance on store and contents, M on $4000.* (M hattan Insurance Co.) . . ... 25 Received Cash of Jabez Dunham, in full of % ff Paid Expenses of store to date, per Expense Book _____ 26 Our store and contents were this day consumed by fire : Value of Store and Fixtures $5000+ Mdse on hand ' " " ' 2800 Manhattan Insurance Co. owes us per policy ]"."". 28 Received Cash in full for R. S. Hayward's Note, due the 18th inst f/ Received Cash of the following persons : Erastus Young in full of % . *ii. David T. FuUer ^* . ." ^4^ -^ Charles Claghorn '' 22 50 Henry Dwight '^ - - - " ^ ".'."*" 10 Schuyler Corbit " " 97 ;^n Henry Shait " ". ". '. ". *. ". "_ ; '_ " 34 ^^ 30 59 150 4000 65 ft Paid Cash to Wilson G. Hunt, in full of % r/ Received Cash of Manhattan Insurance Co. 155 575 4000 50 *^;J^}'J'^^'!J^J'%''^''^^^PP^^^^ the store and the merchandise it may contain, It will be more simple to charge it to Expense account, or to open a separate account with " Insurance " It is^hVs'tifZt'rhn'^ '""'f ' '"" ?^' l"'"'*"'" ^"*^ ^''''' ^""^ ^^^^^--^^ «°d Merchandise at their proportionate value. It is the student's business to ascertam how much of the $4000 should be credited to Store and Fixtures account and how much to Merchandise. TMb cannot be difficult, as the basU of valuation is given. fixtures account, and how 145 tr^ -. 438.50. 6. — Completed job for S. Q. Haven, as per bill of items, for which he owes .*f 430. 7.— Paid cash for ton of hay, $20 ; and for 50 bushels oats, @ 75^, $37.50. .9.— Bo't of Jacob Van Brunt, on %, 10000 feet pine lumber, @ 15'', $1500. /O, — Rec'd cash for job of maaon-work, done for Peter Greiner, $125. /2. — Paid workmen to date, per check, $1475. /•5. — Finished job of mason- work for Urial Driggs, Tonawanda, for which he owes $275. >^^.— Completed contract with Millard Fillmore, and rendered him bill for the same, $9000. ^^. — Paid laborers' wages, per check, to date, $1450. ^^.— Passed our note, @ 60 d's. to Merritt Crandell, for bill of lumber to date, $3000. 4?J.— Received cash of Urial Driggs, in full of %, $275. -^^.— Received cash of J. C. Gansevoort, in full of %, $240.64. 27" — Paid workmen in full to date, per check, $563. SO, — ^Paid sundry expenses in cash, as per Expense-Book, $175. Changing to Double Entry. Mr. Felton now proposes to change his books to Double Entry, preparatory to which he makes the following statement of the condition of his business : * Resources. Ziabilities. Caah on hand, per C. B. . , Balance in Bank . . ' . . . Tools and Implements . . . Notes on hand Due on personal accounts . . Horse and Dray Value of unfinished contracts . 724 1032 1000 7250 8755 250 4000 55 68 23 Due on personal accounts . ** notes E. R. Felton, net investment . *' net gain . . . • 6355 7329 7785 1542 32 74 17 • 23012 23012 23 FARM ACCOUNTS: INCLUDING PRACTICAL FORM OF JOURNAL AND OTHE'R J^EW FEATUfRES. MfU Mil ..If 'iii; ■:) The student is requested to enter up these accounts in the Ledger, according to the examples given in the previous Set, and to continue the business in Double Entry form, for one month, originating his own transactions, and closing his Ledger at the end of the month, according to the principles of Double Entry. • It will be evident, from these frequent statements, that jnst as often as it is necessary, for any purpose, to know the exact condition of the business, the account or accounts representing the capital — usually called Stock Account, or Partners' Accounts — must be made to agjree with the difference between the resources and liabilities. In Double Entry books this is done by carrying to these accounts the result of the Business accounts, which is the net gain or loss. As there are no Fuch accounts in Single Entry, the same object is attained by taking the difference between the capital at commencing and at ciosing. which must, of course, be the net gain or loss. Any statement showing resources and liabilities will afford all the necessary material for Double Entry books, or for any purposes of negotiation where partners' interests are concerned. 150 151 ¥•■ »1 FARM ACCOUNTS. It is not presumed that many farmers will adopt the forms of this set in keeping a record of their business ; in fact, it is not presumed that many farmers will keep much of a record of any sort. We have selected the transactions of farming to illustrate a few new features, both from the variety afforded in the transactions, and to enforce the importance of financial record even in business least requiring it. The new features in this set are the Columnar Journal, which contains all the transactions and affords a pre- liminary classification, which will be found very convenient in many kinds of business, and the subdivision of the earning force represented by " Farm " account. The latter feature is a very suggestive one, and will be found applicable to many kinds of business— particularly to Manufacturing, where it is, to some extent, adopted. The use of the Columnar or " Six Column " Journal enables the accountant to do away with auxiliary books, especially the Cash-Book, as all the cash items are classified in the first record. The idea of separate columns in the Journal may be extended to suit the exigencies of the business. Oftentimes as many as ten or twelve columns are used. The main advantages are that it saves posting, and affords a better view of the business at a glance. < 15J8 FARM SET.— CASH-BOOK. MEMORANDUM CASH BOOK. The form of Cash Book here given is convenient, and on that account commended to those who are not in the habit of handling much cash. It is always well to keep track of cash receipts and disbursements in some way, however unimportant the items may be, and this form is suggested as one adapted to general use. A small pocket memorandum book, such as all stationers keep, is sufficient for this purpose, and the writing may be done either with pencil or ink. It should be carried constantly, that no excuse may exist for omitting the entry of receipts and disbursements of cash, which should always be entered at the time. The balancing may be done daily or weekly, as most convenient. Riverdale Farm, March 1, 1880. Mar. 1 1 5 6 6 7 10 10 12 13 15 16 17 19 19 20 23 24 26 27 29 31 Amount on band -.-.. Received for 10 lbs. Butter, $2 ; 10 doz. Eggs, $2 Paid for Johnny's Boots, |3 ; Cap for Harry, 75/' Sold 10 bushels Wheat, @ $1.50 Paid for set of Harrow Teeth, |3; Shoeing Horse, $1 50 - - - Paid G. F. Wright & Co.'s Grocery Bill Paid hired man for services to date, as per receipt - - 154 no Received for 15 bushels Potatoes at $1 as 7k Balance on hand -------- lis gs Sold 2 year old Colt to L. S. Bliss, for Paid premium for Insurance on Farm Buildings ------ Paid Mrs. M. for household expenses ----..--._ Sold C. S. Clark & Co. 20 bushels Oats, @ 75/ - - - - ^^^ ^ Shoes for Netty, $1.25 ; Toys for Harry, 50/ . - - - iq a>^ Balance on hand -------- 9?t9 q q Paid for one year's subscription to Hampshire Gazette - . . - " yearly contribution to Poor Fund, f25; Pew Rent, 1 quar- ter, $5 - - - - - - - . " Dr. Jones for filling Teeth, $5; Bridgman & Childs, for Books, $1 --.. Sold Hillman & Graves 10 Sheep, for .----. 2SI 00 Received for Poultry sent to market - - xi an Balance on hand --- aaa n\ Deposited in Holyoke Bank ----.-.---... Received for Butter, $4; Cheese, $2.50; Apples, $3.75 Paid for repairing Implements -- 233 75 ' ' Charles Jones for painting House --.,-- i7«.2.'> Balance on hand -------- Ki ."W) Rec'd. 120 4 15 15 125 15 20 2 .^L 10 25 J& Paid. 4 17 10 13 5 150 3 25 Wi 75 50 50 50 1 1 50 80 6 25 50 m. '-tn t; *i': 153 FARMING SET.—TRANSACTIONS. TRANSACTIONS. Miverdale Farm, Northani2>ton, March 1, 1880. The following list embraces the real and personal property and debts of William Mitchell, farmer, sole proprietor of "Riverdale Farm," in the town of Northampton, Mass. , RESOURCES . 75 acres cultivated land, @ S300 ; 10 do. woods pasture, @ $^150 ; dwelling-house, out-buDdings, •nd improvements, $2500 ; 2 carriage horses, $400 ; 2 work horses, $275 ; 1 colt, $100 ; 3 milch cows, $100; 1 yoke oxen, $125; 10 hogs, $75 ; SO sheep, $50; 2 calves, $5; 50 chickens. $10; 6 turkeys, ^5; 10 geese, #6; farming utensils, ^^56> ; 1 family carriage, $200; household furniture, $600; 200 bushels wheat, $350; 500 do. com, $375 ; 125 do. oats, $110; 10 tons hay, $120; 50 bushels potatoes, $37.50; feed, $25 ; 50 shares Connecticut River R. R. Stock, $5000 ; cash in hand, $120; do. deposited in Holyoke Bank, $1200. .LIABILITIES.. Mortgage on farm, due in five years, from January 1, 1879, with annual interest @ 6%, $4000 ; interest unpaid to date, on same, $M)j I>ue Samuel Hill on %, $75. tf Bought of Lewis H. Bartlett, on %, 1 two-horse wagon, for $75 ; Sold for cash, 10 lbs. butter, $2', 10 doz. eggs, $2. Bought of Jonathan Dawes, 10 head of stock cattle for feeding and grazmg, iar $650 ; Paid him check on Holyoke Bank, $300 ; note @ 30 ds. for balance. Paid cash for the following articles : boots for Johnny, $3 ; cap for Harry, 75f. . 6 Sold James Banks fur cash, 10 bushels wheat, @ $1.50, $15; Paid cash for set of harrow teeth, $3 ; shoeing horse, $1.50, — 7 Paid cash for G. F. Wright's grocery bill, $17.50, .10- Paid hired man cash for services to date, as per receipt, $10 , Sold for cash, 15 bushels potatoes, @ $1, $15. 12 Sold L S. Bliss, Hatfield, 2 year old colt, for $125 cash. . 13 Paid cash for premium, insurance on farm buildings, $12.50. — 15 Paid Mrs. Mitchell cash for household expenses, $5. — — - 16 Sold C. S. Clark & Co., for cash, 20 bushels oats, @ 75,<^, $15. 17 Paid cash for shoes and toys for children, $1,75 ; Bought of S. C. Parsons, on %, J ton Peruvian guano, for $30. 154 FARMING SET.— TRANSACTIONS. Uiverdale Farm, Xortlmmpfou, March 19, 1880, Paid one year's subscription to Hampshire Gazette, in cash, $1.50; yeariy contribution to poor fund, $25 : pew rent. 1 quarter, $5. — 20 Paid Dr. Jones cash for filling teeth, $5; also to Bridgman & Childs, for books, $1. '■ 23 Sold Hillman & Graves, for cash, 10 sheep, @ |2, $30. — 24 Received cash for poultry sent to market, $2. 26 Deposited in Holyoke Bank, cash, $150. 27 Received cash for butter, cheese, and eggs, $10.25. 29 Paid E. L. Kingsley cash for repairing farm implements, $3.25. 31 Paid Charles Jones cash for painting house, $25. - April 1 = Received cash for marketing, as follows : 25 lbs. butter, @ 25«^, $6.25; 10 bush, potatoes. @ $1 V — 13 Paid Theo. Rust cash for 1 ton plaster, $8. 25 Paid cash for winter's school bill, books, &c., $17.50. 26 ■ Bought of James Hubbard, on %, 32 bushels of oats for seed, @ 60^^, $10.20. 30 Paid hired hands in full to date, $J!fi. May 1 Received cash for dividend on Ct. Riv. R. R. Stock, 5% on $5000, $250. ^ 15—— Paid cash for 1 new plow, $10; For repairing old plow, $3. ■ 25 Exchanged horses with E. T. Wood ; Paid difference in cash, $25. - June 1 Paid hired hands to date, cash, $55. ■^15 Bought for our own use, 1 rosewood piano, for $275; paid for the same, check on Holyoke Bank, $75 ; note @ 6 mos. for balance. Paid hired hands to date, $60. = July 1 Sold, for cash, 3 bushels cherries, @ $4, $12; 6 do. currants. @ $1, $6. 155 "il :!i w \ ■\\ 111 A 4 I" i v • i FARMING SET.— TRANSACTIONS. Hiverdale Farm, Northampton, July 10, 1880, Paid cash for groceries. $4.75 ; dress pattern, $S ; Stoddard & Lincoln's bill for dry goods, $17.50. Finished cutting and harvesting hay, which has been estimated at 57^ tons, worth, on an average, $10 per ton, $575.* ^ Bought of Henry Claghom, for cash, 2 Berkshire pigs, $15. . ^^ Sold for cash, 3 hogs, $25 ; 4 lambs, $10 ; 2 calves, $4. ^^ _ Paid cash to hired hands, $37.50. Received cash of Benjamin Claghorn, in full of the rental of lO-acre lot, as per contract, $200. ' s Received cash for pastui-age, to date, $175. i^ Sold Graves Bros., Florence, 10 tons hay, @ $11, $110 ; received cash. $50 ; balance on %. . ^Q Finished threshing grain, and have put in bins, as the result, 250 bushels wheat, worth $1.50 per bushel, $375 ; 300 do. oats, @ 75/, $225 ; 50 do. rye, @ 60(?, $30. , ^^ Paid hired hands cash, to date, $50, Sept. 5 Sold for cash, 30 bushels wheat, @ $1.63, $4S.90. i^ Finished harvesting potatoes, the result of which is, that we have in cellar 75 bushels, worth 75^^ per bushel, $56.25. : — i^ Sold for cash, 20 bushels potatoes, @ 87^f , $17.50. ^^ Gathered from orchard, 100 bushels apples, worth 60/ per bushel, $50. ^ == Oct. 5 =" Sold for cash, the following produce : 200 bushels wheat, @ $1.50, $300; 300 do. com, @ 75/, $225. 40 do. potatoes, @ $1, $40 ; 35 do. apples, @ 50/, $17.50. Paid hired hands to date, cash, $75. 10 15 Received cash for pasturing 15 head of cattle, $75 ; 10 horses, $60. * Should we keep but one general producing account for the farm, this entry could not properly be made in the Journal, as it would necessitate both a debit and a credit to that one account, inasmuch as there has been nothing disposed of, and, consequently, nothing actually produced. If, however, we desire to keep up the distinctions between the different .subdivisions of the general account, as in the Ledger form given, the entry in this case will be : " Produce " Dr. to " Real Estate," as each of the Bubdivisions should show its cost and proceeds, the same as a general accouLt. 156 FARMING SET.— SIX-COLUMN JOURNAL. River dale Farm, KortJiatnpfnn^ Oct. IS, 18 SO. Paid Samuel Hill, Jr., cash, in full of %, $75. 21 Paid cash in full for note, favor Jonathan Dawes, due April 6. Face of note, $350, Interest to date, $11.37. -- _^ 25 ^ Sola Thayer & Sergeant, 4 fat cattle, for $350, cash. L__ 28 Sold Alvan N. Claghorn^ on ^, 5 tons hay, @ $10 per ton. SO From inventory taken, we are prepared to estimate the amount consumed by family and live stock since March 1, which is as follows: Family Expenses— Mutton, $15; pork, $17; poultry, $18; eggs and milk, $10 ; flour, $40; potatoes, $10. Live Stock— Com, $75; hay, $75; feed[ $50; oats, $37. 31 Upon careful estimation, the apportionment of expense, as charged in the "Expense" account {$329*), should be as follows: To real estate, $164.50; live stock, $82,25; produce, $82.25. SIX-COLUMN JOURNAL. The characteristics of the practical Journal here introduced will be apparent. Its advantages may be briefly stated, as follows : First — A vast saving of time and space in posting. /Secowe/— Embracing the principles oifour books in one, \\z. : Cash-Book, Invoice-Book, Sales-Book and Journal, f 2%i>^— Showing monthly totals of the principal accounts in the Ledger that the same may be compared year after year. i^(9?^r^^— Affording an opportunity to post personal accounts immediately, the corres- l^onding debits and credits appearing separately in the " Sundries " column. Fiflh—Qvfmg additional security of the correctness of the Ledger, there existing no probability of omitting debits and credits of the same amount. Want of space will prevent the giving of more than one month's transactions through this form. The student is requested to write up the remainder as given in the memoranda, putting the months of April, May, June and July together as one month, and August, September and October as one. The method of posting from this Journal is extremely simple. The separate items in the "Sundries "column are posted the same as from the common Journal, while the amounts of the " Cash " and ^Tarm" columns are posted at the close of each month. This idea of special columns is not original with any modern author, but has been in use, to a greater or less extent, for the past fifty years. The principle can be carried to any desirable extent; and in some jobbing-houses as many as eight special debit and credit columns are used. The form given in this connection is sufficient to indicate the principle. * Paid for eer\'lce8 and horse-shoeing. + This Is the case when the form is used in a general merchandise business : in which case the sjyedal columns, debit and credit, would be ** Cash ** and " Mdse." 157 H^ I :3 !li •i i M us lO CO CO A 1 i § s a: o < b u ^ «» to 5 £ •? ®. S . I « O) V •o «r = ts « g 5: fl 5 I ^ 5 W . - g^ o r^ ^ « a m a> s * _ 0) a w t^ ^ V « o « ^ eg es to o a o o O o § a> OS ja t) O 2 60 S*. O i^ is;;^:^ |co|s 5 = 1 m «» ♦; P JO 8 ■4-> 5 S q S o I a g I S 2 a " ^ 3 U. rH (4 O «: «» ^ §^- S @ :!^ CD V a S S S - 158 mt i — 0"» PC O -! a? W o 2 i PC tl. Pi 9 oo 00 UZ o « lO o 22 CO •J 1 1 1 3 4 CO p d p Si/ «» M O O ^ 2 a> OQ O M H 3 s 9 i hi 5 @ (^ 5 GO SO 1 ^:) 2 ^ & at CO CO « § OQ Ed o sa »^^ CO i ^ to s 3 H '3 OQ » O s OQ Ji 00 09 w 4 dl O w n CO s o ^ O) i S fid 160 04 09 CO oo lO s s (M 00 s ^ o €4 i.-? JO e« I'" 1< H CO oa s o OQ OQ OQ O Eh S Q> OQ OQ s 3 a> OS a » O 5 Q on s a 5 o fl ,Q O a •'- » OS ■»-> 2 >. o o< T-l Q rs CC e» O «* i? ^ ^) Q QQ S o H OQ s B a I OQ a> to a I I o »o s s o O) c« ^ a 09 s 1^ es o i o ©I 161 < z D O •-9 I h en fa ^ ^ o f ^ i § o 09 OD H i O lO «? »o i> c» 3 05 « e» 1^ s ^ a a *^ *«« • ^ jk > ^ ^ ^ O OD ■♦a ft I i a ^ § rt J H I o •a CD S ;::; < w fe 5 w I. w I ^ •1 ^ -i H o OQ CL, s Q -«5 «5 rj, B ^ H^ b PU A 1. a K D OQ »0 Ui C4 C4 o to o ^ »o C4 I « » t- lO lO CO lO i 00 O C!» . ^ 1-t CO I «* t- ^ ^ t- , t- : CO O 00 ■^ I i~* i lO GO TH O ; JC 00 T-< T-l T-t , « C« 00 I H m M O B '§ CO CO OQ 163 o o u a. a: u. o ilJ »- CO UJ o o CO I o 5| is M 5 •i m 4 6 H § - g ■ « S i ■4 aa^^^is «o OS s «s ^ ^ $$ s Si? s* ^ ^ s t- s ^ op a •s ■ o o § I K3 1 00 eo eo i^6 SS»^ ! ^ H^ IQ rH 1-H rJ «< 8 S8 SSS«» \ H t' I" FARM SET.— STATEMENT. STATEMENT. The following form of Statement has the quality of brevity and plainness; and though less satisfactory in detail than previous forms, it will sufficiently indicate the condition of the business on the date of rendering the Trial Balance and Inventory. Ct. River R. R. Stock HoLYOKE Bank - - Bills Receivable - Mortgage Payable Interest Payable - L. H. Bartlett - - Bills Payable - - Fai^y Expense - - S. C. Parsons - - - Cash A. if. Claghorn - - Farm -' J. A. Hubbard - - Graves Brothers - Interest - - - - Ufa Oain Losses. 160 228 11 1872 2267 25 37 58 20 Gains. 250 2017 20 2267 20 Stock Investment - - - - Net Gain - . - - Present Interest $33923 50 1872 58 Resoubces. 5000 975 350 1075 50 33160 60 40670 03 25 28 LlABIUTICS. 4000 200 75 550 30 19 20 08 28 -«<«)•■ c^ PRACTICAL HINTS FOR FARMERS. 1. — ^Measuring Grain. By the United States standard, 2150 cubic inches make a bushel. Now, as a cubic foot contains 1728 cubic inches, a bushel is to a cubic foot as 2150 to 1728 : or, for practical purposes, as 5 to 4. Therefore, to convert cubic feet to bushels, it is necessary only to multiply by f Example.— How much grain will a bin hold which is 10 feet long, 4 feet wide, and 4 feet deep t 8ol/ution.'-\^ X 4 X 4 = 160 cubic feet. 160 x f = 128, the number of bushels. 164 PRACTICAL HINTS FOR FARMERS. To measure grain an the floor. Biake the pile in form of a pyramid or cone, and multiply the area of the base by one-third the height. To find the area of the base, multiply the square of its diameter by the decimal .7854. Example.—^ conical pUe of grain is 8 feet in diameter, and 4 feet high ; how many bushels does it contain ? Solution,— ThQ square of 8 is 64 ; and 64 x .7854 x | = 83.776, the number of cubic feet Therefore, 83.776 X I = 67.02 bushels. Armoer. 2. — To Ascertain the Quantity of Lumber in a Loo. Multiply the diameter in inches at the small end by one-half the number of inches, and this product by the length of the log in feet, which last product divide by 12. Example. — How many feet of lumber can be made from a log which is 36 inches in diameter and 10 feet long ? Solution.— 3Q X 18 = 648 ; 648 x 10 = 6480 ; 6480 -*- 12 = 540. Aninjoer, 8- — To Ascertain the Capacitt op a Cistern or Well. Multiply the square of the diameter in inches by the decimal .7854, and this product by the depth in inches ; divide this product by 231, and the quotient will be the contents in gallons. Example.— What is the capacity of a cistern which is 12 feet deep and 6 feet in diameter t Solution.— The square of 72, the diameter m inches, is 5184 ; 5184 x .7854 = 4071.51 ; 4071.51 x 144 = 586297.44, the number of cubic inches in the cistern. There are 231 cubic inches in a gallon ; therefore, 586297.44-5-231 = 2538 +, gallons. To reduce the number of gallons to barrels, divide by 3H. 4. — To Ascertain the Weight of Cattle by Measurement. Multiply the girth in feet by the distance from the bone of the tail immediately over the hinder part of the buttock to the fore part of the shoulder-blade, and this product by 31, when the animal measures more than 7 and less than 9 feet in girth ; by 23, when less than 7 and more than 5 ; by 16, when less than 5 and more than 3 ; and by 11, when less tMn 3. Example.— What is the weight of an ox whose measurements are as follows; girth, 7 feet 5 inches ; length, 5 feet 6 inches ? Solution.— 5^ X 7/y = 40ft J 40f| x 31 = 1264 +. Amwer. A deduction of one pound in 20 must be made for half-fatted ccrtle, and also for cows that have had calves. It is understood, of course, that such standard will, at best, give only the approximate weight. 5. — Measurino Land. To find the number of acres of land in a rectangular field, multiply the length by the breadth, and divide the product by 160, if the measurement is made in rods, or by 43560 if made in feet. Example. — How many acres in a field which is 100 rods in length, by 75 rods in width t Solution.— too X 75 = 7500 ; 7500 -5- 160 = 46|. Answer. To find the contents of a triangular piece of land, having a rectangular comer, multiply the two shorter sides together, and take one-half the product. 165 QUESTIONS FOR REVIE^V. Changing Single to Double Entry. — Page 134. 1. Are the tenns " Single Entry " and " Double Entry " fortunately chosen 1—2. Why not ?— -?. Is Single Entry in use to any considerable extent ? — 4.. Can it be used to advantage as compared with Double Entry*? — J. Does Single Entry cause less writing? — 6. Is Double Entry more intricate than Single Entry ? — 7. In what does the difference really consist ?— . Give the rule for ascertaining the number of cubic feet In a log. — 31. 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J ( I 33 ^^o F^\^ Packard The new Bryant & Stratton high- school book-keeping. •• ^T-r—^ ^^ COLUMBIA UNIVERSITY UBRARIES 0041405307 J NEH MAR 2 4094 AI5// 00%l END OF TITLE