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Author: 
 
 Becker, George J. 
 
 Title: 
 
 A treatise on the theory 
 and practice of... 
 
 Place: 
 
 Philadelphia 
 
 Date: 
 
 1864 
 
9^-S'Po6,'Sl. -? 
 
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 Becker, George J 
 
 A treatise on the theory and practice of book- 
 keeping by double entry, designed to elucidate 
 the principles of the science, and to impart a 
 knowledge of the forms observed by practical 
 accountants in the various departments of busi- 
 ness, by George J. Becker ... Philadelphia, But- 
 ler, 1864. 
 
 184 p, forms. 23^ cm. 
 
 
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 A treatise on the theory and practice of. 
 
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 TREATISE 
 
 ON THE 
 
 THEORY AND PRACTICE 
 
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 BOOK-KEEPING 
 
 BY DOUBLE ENTEY. 
 
 DESIGNED TO * 
 
 ^'^'^LKmEOFTHFZl^^^^^ ''''^ SCIENCE, AND TO IMPART A KNOW- 
 
 LEDGE OF THE FORMS OBSERVED BY PRACTICAL ACCOUNTANTS 
 
 IN THE VARIOUS DEPARTMENTS OF BUSINESS. 
 
 BY GEORGE J. BECKER, 
 
 PROTESSOB OF DEAWIHO, WWTWO, AND BOOK-KEBPING, IK OIBA»D OOLUOT. 
 
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 be rich, and all who desire to tewS J 7t^nll J^^°l^ l^^''" Posseasions-of all who desire U 
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 :-PfiILA-Dfi'LPHIA: 
 
 PUBLISHED BY E. H. BUTLER & Co. 
 
 1868. 
 
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 Entered, according to Act of Congreas. in the vo«ir K51j hj 
 
 GEORGE J. BECKER, 
 
 *he CIerk*s Office ot the JDuthct Court of the United States, in and for the Cutera 
 
 District of Pennsylvania. 
 
 en 
 
 CD 
 
 CONTENTS. 
 
 '■«*>• > 
 
 Preface, - - ... . . 
 
 Plan ol the Work, -....«. 
 
 Introduction, ---...•. 
 
 Names of Books, ....... 
 
 The Day Bi>ok, remarks on, ---••• 
 
 The Cash Book, remarks on, •-•••. 
 The Sales Book, remarks on, -••..» 
 
 The Journal, remarks on, ...»». 
 
 The Ledger, remarks on, •-..... 
 
 Classes, character, and titles of accounts, - - . • 
 
 Accounts, -•--•••« 
 
 ExPLAVATTOir OF AcCOtTlfTS IN THK LeSGKR, WITH THK RULES FOR 
 
 OPENING AND CLOSING thbm, .... 
 
 Stock, ....... 
 
 vasn, ""•..••» 
 
 Merchandise, - - . . . - 
 
 Bills Receivable, . * 
 
 Bills Payable, - . - 
 
 Personal Accounts, - •---.. 
 
 Real Estate, Ship, Railroad Stock, Bank Stock, or anv other Specu- 
 lation account, - - . . . 
 Profit & Loss, --..-.. 
 Discount, Interest, Exchange, Brokerage, Premium, &c. 
 Expense, ---... 
 Commission, - > . . . 
 Guarantee, -----.* 
 Loan or Borrowed and Lent, .... 
 Suspense, - _ - , . 
 Debts Payable or Sundry Creditors, - - . .. 
 Debts Receivable or Sundry Debtors, .... 
 Sales No. 1, or A. B.'s Consignment, .... 
 Adventure No, 1, (London,) ... 
 Adventure in Co. with A. B. or Shipment in Co. with A B., 
 Insurance, --...., 
 Merchandise in Co. and other Speculation accounts in Co., 
 Intrusted Real Estate, Stocks, Bonds, &c., 
 * Exchange account in Co. with A. B. - 
 
 Balance, hemarks on, •-.... 
 
 Balance Sheet or Transfer Balance Sheet, ... 
 
 Transferring accounts from the old to the new Ledger, 
 
 RcLEs FOR Journalizing, with exemplifications of Jovrhal and 
 Ledger entries, . - - . . 
 
 Debtor and Creditor, remarks on, - 
 
 The Index to the Ledger, directions for, - 
 
 The Bill Book, remarks on, - 
 
 The Commission Sales Book, remarks on, - . - 
 
 The Invoice Outward Book, remarks on, 
 
 (3) 
 
 f 
 T 
 11 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 23 
 
 23 
 
 23 
 24 
 
 24 
 25 
 25 
 26 
 
 3(. 
 
 27 
 27 
 28 
 28 
 29 
 29 
 30 
 30 
 31 
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 33 
 33 
 33 
 34 
 35 
 
 35 
 
 36 
 36 
 
 38 
 
 48 
 5i 
 58 
 53 
 53 
 
BECKER'S BOOK-KEEPING. 
 
 ft 
 
 The Check Book, remarks on, - 
 
 Books of Original Entry, remarks on, - 
 
 Opening a Set of Books, directions for, 
 
 Periodical closing of accounts, . . - 
 
 IjrrBcoucTORT Examples — Fibst Sehiks, • • 
 
 Transactions and Journal Entries, - . - 
 
 Directions for the Introductory Series, 
 Posting, directions for, . - . - 
 
 Examination of the Ledger, directions for, 
 Correction of Errors, directions for, - - - 
 
 Proof of the Ledger, remarks on, - . - 
 
 Trial Balance, - - - - - 
 
 Inventory, directions for, - - - - 
 
 Balancing and closing the Ledger, directions for. 
 Form of the " Grand Balance Sheet " 
 Statement and Closing Entries of Introductory Series, 
 * Ledger to the Introductory Series, 
 
 Sbcokb Sebiss, . . - - • 
 
 Remarks on the Transactions, - - - • 
 
 Stock and Proof Book, . - - - 
 
 Transactions of Second Series — First Part, 
 Journalizing Second Series — First Part, - 
 Posting and closing Second Series — First Pait, 
 Second Part of the Second Series, 
 Transactions of this Part, - - - • 
 
 Closing of Second Part, ... 
 
 Tbibb Sebiss, .«-••- 
 
 Stock and i*roof Book, . - . - 
 
 Transactions of Third Series— First Part, 
 Posting and Proof of the Ledger, - - - 
 
 Transactions of Third Series— Second Part, • 
 Closing the Books of Third Sciies, 
 
 FOUBTH SeBIES, ..•••• 
 
 Stock & Proof Sheet, . - - - 
 
 Transactions, .... - 
 
 DlSCBIPTIOir AND ExBMPtlTICATlOjr OF CoMMEBCIAL FuBKS : 
 
 Drafts and Bills of Exchange, - - - 
 
 Promissory Notes, . • . - - 
 
 Due Bills, - - . - « 
 
 Orders, .-.--• 
 
 Receipts, ------ 
 
 Bills, -.•--- 
 
 Bottomry Bonds, - • • - - 
 
 Mbbcaittilx Abithmbtic : • - • • • 
 
 Interest, - • • • . 
 Discount, -.•--- 
 
 Insurance, . - - • - 
 
 Equation of Payments, . . - 
 
 Domestic Exchange, . • - • 
 
 Foreign Exchange. . • - - 
 
 Measurement of Wheat, - - • • 
 
 Measurement of Whisky, . • . - 
 
 Bloom and Bar Iron, . - • • 
 
 64 
 
 66 
 56 
 67 
 
 61 
 
 62-63 
 66 
 67 
 67 
 68 
 69 
 70 
 71 
 72 
 74 
 
 76-77 
 
 - 79 
 
 81 
 
 83 
 
 84 
 
 85-89 
 
 90 
 
 92 
 
 93 
 
 95-99 
 
 . 100 
 
 101 
 
 - 1^3 
 104-110 
 . Ill 
 112-116 
 
 - 117 
 
 120 
 
 124-125 
 125-141 
 
 146 
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 1^5 
 56 
 
 158 
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 177 
 17H 
 179 
 IPl 
 182 
 
 PREFACE. 
 
 The grand object which should be kept in view, by an 
 author, who puts forth a work upon any subject connected 
 with school education, should be the attainment of such a 
 system of principles and details, as will facilitate the practical 
 application of the information which he may impart. To no 
 branch of study does this remark apply with more force than 
 to Book-keeping. The great defect in the various school sys- 
 tems of Book-keeping which have been given to the public, lies 
 in the fact that theory^ to a great extent, usurps the place of 
 practice. The extensive experience of the author of this trea- 
 tise, as a practical Book-keeper, enables him to testify to the 
 deficiency in practical forms and arrangements which is more 
 or less characteristic of all the works on this subject that have 
 been brought to his notice. His experience as a teacher of this 
 science has led him to regret the want of some work, which 
 would give to his pupils a correct view of the manner in which 
 books are kept in the counting-house. Hence, he has ventured 
 to prepare a new treatise on Book-keeping, believing that the 
 one which he offers to the public will, in some measure, supply 
 the deficiencies and remedy the imperfections in those already 
 in use. 
 
 The object, then, of the present work is to render those who 
 study it capable of performing the duties of a practical Book 
 A 2 (5) 
 
yREFACK. 
 
 i 
 
 Keeper. The means which i% presents for attaining tnat object 
 are found in the two following circumstances: First, the 
 arrangement and forms of the several books are those which 
 obtain in actual business; Secondly, the student is required to 
 exercise his judgment £^nd reasoning powers ip applying the 
 rules that are laid down to the examples befoJiC him. This 
 will appear more fully, when the plan of the work shall have 
 been examined. 
 
 This work is not designed to be used exclusively in academies 
 for young gentlemen. A knowledge of the science of Book- 
 keeping is very often as useful, and even as necessary, to females 
 as to the opposite sex. A knowledge of the fact that females 
 are frequently intrusted with the care of large estates, or are 
 obliged to conduct business of various kinds on their owu 
 account, is, considered a sufficient objection to the prevalent 
 custom of excluding this science from the list of studies pursued 
 by them. No female, whatever be her condition in life, can 
 safely presume that a knowledge of Book-keeping will be of 
 no advantage to her. 
 
 In preparing this work, a selection has been made of sucl. 
 definitions and other matters as have been deemed useful 
 Most of the explanatory or theoretical portions of the work, 
 however, are original: resort having been made to other authors 
 only when such a course w-xs advantageous. 
 
 In the hope that the work wul eflfect the object for which it 
 was designed, it is submitted to the public. 
 
 THE AUTHOR. 
 
 PLAN OF THE WORK. 
 
 1^ •• » 
 
 One characteristic of the present work is, that no means is 
 offered to the student for copying those entries which he should 
 make himself. With the exception of those belonging to the 
 Introductory Series all entries are contained in a separate book, 
 which serves the purpose of a key for the use of the teacher. 
 The student, having been made familiar with the principles of 
 Journalizing, Posting, &c., together with their application, is 
 thus compelled to advance in his work by the aid of his judg- 
 ment and reasoning powers. 
 
 Another peculiarity is that the student is required to make 
 his own calculations. All the amounts belonging to, and calcu^ 
 lations arising from, the transactions are omitted in the examples 
 of the several series. By this means, it is believed that accuracy 
 and readiness in calculation will be secured and the habit of 
 fixing the attention acquired. 
 
 Connected with the work are various sets of blank books for 
 making the entries. In some of these books, printed instructions 
 are given relative to their use, and forms are given for exempli- 
 fication. It is deemed best to place these in the blank books, 
 because they are thus brought directly to the notice of the 
 student when he is about to make the entries; whereas, if they 
 were placed in the work itself, they might be forgotten, or per- 
 haps overlooked by the student. 
 
 (7J 
 
8 
 
 FLAN OF THE WORK. 
 
 li 
 
 ' 
 
 III 
 
 li 
 m 
 
 K 
 
 The examples in this work are arranged under four series 
 The first series contains transactions . for one month. These, 
 together with the Journal entries for the same, are intended to 
 be copied, in order to make the student acquainted with the 
 forms of Journal entries. All the work to be done by the stu- 
 dent in this series, such as Journalizing, Posting, making an 
 Inventory, Balancing, making a Balance Sheet, &c., is done in 
 the book. The directions for the various parts of the work 
 accompany the series. 
 
 When the student has gone over the examples a sufficient 
 number of times to enable him to acquire the requisite informa- 
 tion, he may proceed to the second series. 
 
 This consists of two parts, each of which contains a month's 
 transactions. It represents the student as engaged in the Gro- 
 cery business. The Blotter, Cash Book, and Bill Book are the 
 books of original entry in this series; the last of these being used 
 as an auxiliary book. They are also continued from the first 
 to the second part. The only new book required in the second 
 part of the series is the Ledger. One object of the series is to 
 show how accounts can be continued from one Ledger to another. 
 In this, and some of the following series, explanations are 
 appended to some of the transactions, to assist the learner in 
 Journalizing the same. 
 
 The third series is also divided into two parts; and it repre- 
 •«ents partnership accounts in the wholesale Jobbing and the 
 Hardware business. The former is represented in the first part 
 und the latter in the second. In this series, the student is taught 
 to dispense with a Journal, the Posting being made directly from 
 the books of original entry to the Ledger. The Bill Book is here 
 •one of the principal books. The Sales Book and Invoice Book 
 are also introduced. Directions are given for making a " Grand 
 Balance Sheet" for a partnership concern. 
 
 The fourth sieries treats exclusively of the Shipping and Com- 
 joaission business It is intended to make the student familiar 
 
 PLAN OF THE WORK. ^ 
 
 with every kind of transactions in this branch of business. ITie 
 use and form of the Account-Current-Book, the Commission 
 Sales Book, the Check Book, and the Bank Book are explained 
 and illustrated. 
 
 There is appended to the work a short article on drafts, bills 
 of exchange, promisory notes, receipts, &c., together with 
 examples of the various forms of each. A few pages on mer- 
 cantile arithmetic, containing the explanations of those arith- 
 metical operations involved in the transactions, especially in 
 those of the fourth series, concludes the work. 
 
 The questions at the bottom of the page will, it is thought, 
 be of use to teachers in examining their students; they refer 
 to all the important parts of the work, and thus they will enable 
 the teacher to examine his class in a much shorter time than he 
 could do in their absence. 
 
II 
 
 •I 
 
 TREATISE 
 
 ON THE 
 
 THEORY AND PRACTICE 
 
 OF 
 
 BOOK-KEEPING 
 
 BY DOUBLE ENTRY. 
 
 > • • » » 
 
 INTRODUCTION. 
 
 Book-keeping is the art of making such a record of a per- 
 Bon's effects and business relations with others, as will enable 
 him, at any time, to ascertain the aggregate amount of his 
 property, and the nature and value of its component parts. 
 
 There are two systems of B'>ok-keeping in use, viz.: that of 
 Single Entry and that of Double Entry. The former exhibits 
 merely the relation of the merchant to his debtors or creditors. 
 Its results are so unsatisfactory, and it is so little adapted to the 
 calls of business, that its consideration is excluded from this 
 work. To these reasons for exclusion we may add another, 
 viz.: that a knowledge of the Double Entry system will enable 
 the student to keep books by Single Entry. 
 
 Double Entry Book-keeping shows not only the relations 
 existing between the merchant and those with whom he has 
 business transactions, but also those existing between him and 
 the various kinds of property that he possesses, or in which he 
 deals. It is the only mode of keeping accounts that is worthy 
 of being systematized upon scientific principles. It is the 
 only mode worthy the name of Book-keeping, 
 
 (11) 
 
1 
 
 12 
 
 INTRODUCTION. 
 
 In the foregoing remarks, we have used the word " mer 
 chant," as the representative of a class, and not with a view 
 of conveying the idea that the science of Book-keeping is 
 adapted merely to mercantile affairs. Merchants, mechanics, 
 professional men, and persons in every occupation of life will 
 find in the system of accounts of which we propose to treat, a 
 convenient mode of preserving a record of their pecuniary 
 condition. 
 
 The science of Book-keeping is based upon certain princi- 
 ples which are universal in their application to commercial and 
 other accounts. Hence, if the arrangement of the books differs 
 in different houses, the difference should be accounted for by 
 the circumstance that certain forms are better adapted to the 
 nature and demands of one kind of business than others. But 
 the Book-keeper who understands his business will never meet 
 with any great difficulties in the performance of his duties; 
 because he is acquainted with the fundamental principles of 
 the science, and knows that these are adapted to every set of 
 books. 
 
 What is Book-keeping ? Describe Singrle Entry Book-keeping, Why is it 
 not treated of in this worki Describe Double Entry Book-keeping. Is it 
 adapted to the affairs of the merchant only 1 Why can a good Book-keeper 
 keep any set of books 9 
 
 NAMES OF BOOKS. 
 
 No precise rule can be given for limiting the number of books 
 ased in a system of Book-keeping; many books which may be 
 of essential importance in one system may be unnecessary if 
 not useless in another. One book, in one system, may be made 
 to serve the purpose of two in another, by combining the prin- 
 ciples and forms contained in the two separate books. We can 
 only say that the number of books is dependent upon the 
 necessities of the business, or the pleasure of the book-keeper. 
 There are two classes of books, viz. : Principal and Auxiliary, 
 or Subsidiary. 
 
 The Principal Books required by the retail dealer, mechanic, 
 or professional man, are the 
 
 Day Book, or 
 Blotter, 
 Cash Book, 
 
 Bill Book,* 
 Journal, and 
 Ledger. 
 
 Those required by the jobbing or wholesale merchant, trading 
 on his own account, are the 
 
 Sales Book, 
 Invoice BooK,t or 
 Goods Bought Book, 
 Cash Book, 
 
 Bill Book, 
 Day Book, 
 Journal, and 
 Ledger. 
 
 Those required by the importer, the shipping and commission 
 merchant, are the 
 
 Blotter, 
 Cash Book, 
 Bill Book, 
 
 Journal, and 
 Ledger. 
 
 • In a small business in which few or no notes are received or issued, the Bill 
 Book may be dispensed with, or when used, it may be classed among the Auxiliary, 
 Frequently, some books which are classed as «» Principal Books" in one set or system, 
 become by the necessities of the business « Auxiliaries'* in another. 
 
 t For explanation of the uses of this book, and exemplification of the forms ob 
 served in it, the student is referred to the blank book accompanying this work. 
 
 B (13) 
 
14 
 
 BECKER'S BOOK-KEEPING. 
 
 THE CASH BOOK. 
 
 15 
 
 The Auxiliary Books are of importance in proportion to the 
 extent of the business in which they are used. They are the 
 following: ^ 
 
 Petty Cash or Expense Boi'k, 
 
 Check Book, 
 
 Bank Book, 
 
 Receipt Book, 
 
 Letter Book, 
 
 r^ostage Book, 
 
 Commission Sales Book, 
 
 Invoice Outward Book, 
 
 Accounts Current Book, 
 
 Stock Book, 
 
 Order Book, 
 
 Sundry Memorandum Books. 
 
 How many classes of Books are there 1 What are they called 1 What are 
 the Principal Books required by the retail dealer, mechanic, &c.? Name those 
 required by the jobbing or wholesale merchant, trading on his own account; 
 those required by the importer or the shipping and commission merchant. 
 What are the Auxiliary Books ? 
 
 < ♦ »» > 
 
 THE DAY BOOK. 
 
 The Day Book or Blotter, as it is commonly called, is kept 
 in various ways. The wholesale dealer and jobbing merchant 
 makes such occasional entries in this book as do not properly 
 belong to any one of the Subsidiary Books. Houses engaged 
 in diversified trading operations, enter in this book all purchases, 
 sales, shipments, and statements of all other contracts apper 
 taining to the concern. 
 
 In professional or mechanical business, this book receives the 
 entries of all purchases, sales, property exchanged, work done, 
 or services rendered. These entries should be made at the time 
 of, or soon after, the transactions, from which they are derived. 
 
 In the early stages of commerce it was customary to record 
 m the Day Book every transaction in the order of its date, and 
 m common language. To this plan, most authors on book- 
 keeping still adhere. At present, the general practice of account- 
 ants is to express the transaction in Journal form, pointing out, 
 first, the Dr. and Cr. accounts, then the explanation or the 
 reason why such account is Dr. or Cr., with the amount 
 expressed in figures. 
 
 The book, as generally used, has four columns; in the first, 
 or marginal column, on the left hand, is entered the Journal page, 
 
 *'S> 
 
 to which the entry is transferred, preparatory to its being carried 
 to the Ledger. Occasionally there are, also, entered in this 
 column any remarks which the case may require, such as " re- 
 ceived," " delivered," &c. When payment is received or made 
 before the entry is copied into the Journal, it may be marked, 
 in this column, " Paid," with the date of payment ;* the amount 
 may ther be entered in the Cash Book to the credit or debit of 
 the account representing the thing given or received. 
 
 In the second column the transaction is entered ; the third 
 and fourth are money columns. The inner, or left-hand money 
 column, contains the extension of the several items of each 
 transaction, and the outer, or right-hand money column, is re- 
 served for the footing of the same. This is the case where there 
 is but one Dr. and Cr. ; but when there are several Drs. and one 
 Cr., or one Dr. and several Crs., or when there are several ac- 
 counts on both sides, the inner column is used for the insertion 
 of the Dr. amounts, and the outer column for the Cr. amounts. 
 The object of this arrangement is to facilitate the operation of 
 Journalizing and Posting, as well as to enable the Book-keeper 
 to prove the correctness of the books, by obtaining an equality 
 in the monthly footings of the Dr. and Cr. sides. 
 
 Describe the use of the Day Book, or Blotter, in the various kinds of busi- 
 ness. How was this book formerly used ? What is the general practice at 
 present ? Describe the arrangement of the book. 
 
 < < • • > 
 
 THE CASH BOOK. 
 
 This book contains the original entries of Cash transactions 
 only. On the left hand, or Dr. side of the account, are entered 
 all sums received ; and on. the right hand, or Cr. side, all sums 
 paid out. These entries are accompanied with the dates and 
 necessary explanations. 
 
 More care is necessary to keep the Cash account correctly, 
 than is bestowed on any other account in the Ledger. This 
 arises from the fact, that the amount in the hands of the Cashier 
 is fluctuating, money being constantly received for sales, debts, 
 &c., and paid out for purchases, expenses, &c. Hence arises 
 the importance of the Cash Book. Hence, also, this book, in 
 
16 
 
 BECKER'S BOOK-KEEPING. 
 
 THE JOURNAL. 
 
 17 
 
 } I 
 
 actual business, ought to be balanced daily. The excess of the 
 Dr. side over the Cr. side, must agree with the sum produced 
 by adding the amount of cash on hand to the balance from the 
 Check Book 
 
 What is the use of the Cash Book 1 What are entered on the Dr. and 
 what on the Cr. side 1 Why does it require more care to keep this book than 
 any other ? How often should this book be balanced 1 and how may the cor- 
 x«ctaess of the balance be proved ? 
 
 -* m»» » 
 
 THE SALES BOOK. 
 
 This book is one of original entry, and in it are entered all 
 sales effected. It is appropriated exclusively for this purpose. 
 It has, generally, four columns; in the margin, or first column, 
 beginning at the left, is placed the folio of the Journal to whicn 
 the entry is carried, if a Journal be used. In our system, how- 
 ever, the Journal is dispensed with, and the entry transferred 
 directly to the Ledger; hence, we place the Ledger folio in this 
 column. In the second column are recorded the fiame and 
 residence of the purchaser, and the several items of the purchase 
 in their order, with their respective prices. The third and 
 fourth are double money columns; the left hand or inner column 
 contains the amount of each item of the entry, and the sum of 
 these amounts, or the total amount of the sales is carried to the 
 right hand, or outer column, and placed in such a position as to 
 show that it is obtained by footing the several items in the 
 inner column. These sums should be footed at the end of each 
 page, and the amount carried -to the next page, so that, at the 
 close of the month's entries, the grand total will exhibit the 
 amount of sales during the month. 
 
 It frequently happens that the purchaser makes payment 
 after the sales have been entered in the Sales Book, but before 
 the amount has been carried to the account in the Ledger. In 
 such cases, the entry in the Sales Book may be marked " Paid," 
 and the date of payment written in the margin, and the amount 
 entered in the Cash Book, to the credit of Merchandise account. 
 It is necessary, in order to prevent this amount being carried to 
 the Ledger from the Sales Book, that the pen (with red ink) 
 should be struck through it. By following this plan, the foot- 
 
 ing, at the close of the month's entries, will be composed only 
 of those amounts which are to be posted to the Ledger. It is 
 evident that this method is advantageous, inasmuch as it en- 
 ables us to dispense with one posting in each case of the kind, 
 and where such cases are frequent, it undoubtedly saves much 
 labour. 
 
 What is the use ef the Sales Book 1 Describe its arrangements and th* 
 mode of using it. If payment be received for goods, after their sales have been 
 entered in this book, what is to be done 1 
 
 < *• » » 
 
 THE JOURNAL. 
 
 The Journal is that book which prepares the original entries 
 for the Ledger. It is derived from the word jour, a day, and is 
 so called because it exhibits a concise statement of the several 
 transactions recorded daily in the Day Book, or Blotter, Cash 
 Book, Sales Book, Invoice Book, Bill Book, and other subordi- 
 nate books. 
 
 To prepare correctly the original entries for the Ledger, is 
 manifestly of the utmost importance. Upon the care given ta 
 this part of the work depends the correctness of the accounts, 
 because wrong Journal entries not only vitiate the Ledger, but, 
 if they be numerous, they will render it useless, and even inju- 
 rious. In such a case, the double task of detecting and correctmg 
 errors, of making accurate statements, and removing the *n- 
 accurate ones will devolve upon the Book-keeper. 
 
 In consequence of the accuracy necessary to be attained in 
 Journalizing, rules have been laid down to guide the siudent in 
 this operation. But, before proceeding to these rules, the stu- 
 dent should know that, in every Journal entry, the amount on 
 the debit side must be exactly equal to that on the credit side. 
 As the process of transcribing, or rather of transmuting an 
 original entry into a Journal entry is called Journalizing, so tho 
 rules for the same are called Fules for Journalizing. We 
 shall treat of these in another place. 
 
 What is the use of the Journal 1 Why is it necessary to prepare correctly 
 the original entries for the Ledger ? 
 
 b2 3 
 
18 
 
 \ II 
 
 BECKER'S BOOK-KEEPINO. 
 
 THE LEDGER. 
 
 CLASSES, CHARACTER, AND TITLES. 
 
 19 
 
 The particular use of this book renders it "the principal book 
 of reference in the counting-house, to which all others are sub- 
 servient." This use is aptly expressed by a certain author, 
 when he calls the Ledger "the business man's reservoir of ac- 
 counts," for in it the several transactions are classified and ar- 
 ranged under distinct heads or accounts, in order that the state 
 of any particular department, as well as the general result may 
 be readily ascertained. By this arrangement, all sums belonging 
 to the same account are collected under one head. 
 
 From these remarks, it will be perceived that, in the Ledger, 
 a separate account is kept, not only with persons who have 
 business transactions with the merchant, but with goods, cash, 
 bills, and all other species of property that may be the subject 
 of those transactions. This is characteristic of the double entry 
 Ledger; and the advantages of the latter over the single entry 
 Ledger are well embodied in the following remarks which we 
 extract from a work upon Book-keeping by Mr. Foster : 
 
 "One object of book-keeping is to show how the merchant's 
 funds have been successively employed; and, as property is in 
 a state of continual change, it becomes necessary to have an 
 exact register of these variations.— Another object is to show 
 the state of the concern commencing, the increase or decrease of 
 the capital from time to time, and the sources from which the 
 gains and losses proceed. These objects are accomplished, first, 
 by recording the whole capital collectively, and also the gains 
 and losses; and, secondly, by keeping a register of each invest- 
 ment or speculation, so as to exhibit the outlay and returns. 
 Hence, an account must be opened, not only for every indivi- 
 dual with whom the merchant has dealings on credit, but for 
 every species of property which forms a constituent part of his 
 capital, or which, by purchase or otherwise, comes into his 
 possession." 
 
 What is the use of the Ledger? What accounts besides individual zccomiU 
 ' Are kept in this book t 
 
 CLASSES, CHARACTER, AND TITLES OF ACCOUNTS. 
 
 Accountants are accustomed to classify the various accounts 
 mat occur in book-keeping. A knowledge of this classification 
 is, undoubtedly, useful, but it is not indispensable to the stu- 
 dent. The names of the various accounts, however, which are 
 the subjects of the classification must be known by him before 
 he jcan acquire an accurate and practical knowledge of Journal- 
 izing, because the latter process presupposes a knowledge of 
 the various titles under which transactions are arranged or an 
 acquaintance with what may be styled the nomenclature of 
 book-keeping. These titles are not always the same; they 
 vary with the nature of the business. 
 
 In the science of book-keeping accounts are divided into two 
 classes, viz.: Personal and Representative accounts. 
 
 FIRST CLASS. 
 
 Personal Accounts are those kept with the individual with 
 whom the merchant has business transactions, and, with the ex- 
 ception of cash accounts, they are the only accounts kept in a 
 system of book-keeping by single entry. The following are the 
 titles and character of the principal accounts of this kind: 
 
 I i 
 
 Character. 
 
 The sales or purchase of pro- 
 perty on a credit usually termed 
 on trust or on open account. 
 
 Accounts current of another 
 person's affairs transacted by 
 me as his agent. 
 
 Accounts current of my af- 
 fairs transacted by another as 
 my agent or factor. 
 
 Accounts with a*factor for a 
 company under my direction. 
 
 Titles. 
 
 These accounts are numer- 
 ous, but should always be re- 
 presented by the name of the 
 individual or firm, or the legal 
 name of the company ; as, James 
 Milnor, Wood & Jones, United 
 States, Atlantic Insurance Co. 
 
 * I 
 
20 
 
 r I 
 
 BECKER'S BOOH-KEBFlNa 
 
 SECOND CLASS. 
 
 Representative accounts constitute the basis of the science, 
 and they may be subdivided into two classes, viz.: 
 
 1. Those which arise from effects or property. 
 
 2. Those which are constituted by gains or losses. 
 
 The character and titles of these accounts are given in thu 
 following catalogues: 
 
 « 
 
 FIRST SUBDIVISION. 
 
 Character. Titles. 
 
 1. Specie and Bank Notes. Cash. 
 
 2. Wares in my own hands and > 
 
 on my own account. 3 Merchandise. 
 
 3. Wares on Commission in my ] Sales No. 1, 2, &c., or, such a 
 
 hands for another person's )■ man's (naming him) con- 
 account. J signment. 
 
 4. Wares under my direction > Merchandise in Co. with A B 
 
 for myself and others. 5 or Sales No. 3, 4, &c. 
 
 'Adventure No. 1, 2, &c., 
 
 5. Wares consigned to an agent 
 on my account. ^ 
 
 (Boston.) 
 Shipment No. 1, 2, &c., (Liver- 
 pool.) 
 
 6. Stock or share in corporate f ^^^^ ^ company's (naming the 
 companies. '\ C^- ) Stock ; as, Reading Rail- 
 
 (^ road Stock, 
 
 {Ship Providence, Brig Ocean, 
 Schooner Helen, Steamboat 
 York, or whatever may be 
 the name of the vessel. 
 
 a Houses and Lands. 5 ^^^^ Estate or House and Lot 
 
 i in such a place. 
 9. House-furniture and mov- 
 
 able property of every de- 
 scription. 
 
 10. All obligations, such as 
 Bills of Exchange, Drafts, 
 Bonds, Bottomry Con- 
 tracts, Promissory Notes, 
 &c., which are payable to 
 me or to my order. 
 
 Movables. 
 
 Bills Receivable. 
 
 CLASSES, CHARACTER, AND TITLES. 
 
 21 
 
 11. All obligations of the same 
 
 description, Acceptances, ^ Bills Payable. 
 &c., payable by me. 
 
 'I 
 
 SECOND SUBDIVISION. 
 
 Character. 
 
 1. The name of the merchant. Stock. 
 
 2. The general account 
 
 Titles. 
 
 or. 
 
 Profit and Loss. 
 
 gains and losses. 
 
 S. The expense of his house? „ „ 
 
 or pocket. 5 House Expense. 
 
 4. The particular expense of 
 
 store. 
 
 5. The compensation or gain 
 
 which a person has as fac- 
 tor or agent for another. 
 
 S. The gain or loss of an iridi-^ 
 vidual or a corporate com- 
 pany by insuring for 
 others. 
 
 7. The gain or loss by Interest > Interest, or Discount and Ift- 
 
 or Discount. 3 terest. 
 
 8. The gain or loss by exchange. Exchange. 
 
 9. An account of Drafts and1 
 
 remittances between a 
 
 '7 
 
 f Expense. 
 
 Commission. 
 
 > Insurance. 
 
 merchant and a corres- 
 pondent with whom he 
 divides the gains and losses 
 by exchange. 
 
 John Durand's Exchange ac- 
 count in Co., or Exchange 
 account with John Durand. 
 
 How are accounts divided? What are personal accounts? Describe the 
 various kinds of personal accounts, and give the title of each one.* How are 
 representative accounts divided ? Describe those under the first subdivision, and 
 pre the title of each.* Do the same with those under the second subdivision.* 
 
 The teacher should describe the character of each of these accounts, and requiw 
 the pupils to give the name by which it is known, or he may adopt the opposite 
 method. 
 
> 
 
 > 
 
 22 BECKER'S BOOK-KEEPING. 
 
 ACCOUNTS. 
 
 The phrase **to open an account" is of such frequent use m 
 the science of book-keeping, that an acquaintance with ita 
 meaning, as well as that of the term account is necessary. 
 
 An account is a record of the business relations existing be- 
 tween a concern and the persons with whom it has dealings, or 
 of the connexion or relation which may be said to exist among 
 the various kinds of property and that existing between them 
 and the capital of a concern. The student will be better enabled 
 to understand this definition when he shall have become familiar 
 with the names and uses of the various accounts. A more com 
 pact definition than that which we have given may be found in 
 the following extract from Foster's work on Book-keeping: 
 
 "A statement of all the facts relative to any person or thing, 
 by which the capital of a concern has been effected, is techni 
 cally called an account.^' 
 
 Each account consists of two distinct parts, the page or folio 
 containing the account being divided vertically; the left-hand 
 column is denominated the debtor, and the right hand column 
 the creditor side. 
 
 " To open an account^' signifies to enter its title for tne first 
 time in the Ledger. When the accounts are opened, the 
 Ledger is ready for receiving the various entries which are to be 
 transferred from the Journal or other books to their respective 
 accounts. This transfer is caWed posting. 
 
 Items may be posted from the books of original entry, with 
 as much facility, and as little liability to error, as when the 
 Journal operates as a conveyance to the Ledger, of the trans- 
 actions recorded in the Day Books appropriated for each branch 
 of a business. The third series of books which we give is con- 
 ducted upon a plan derived from this suggestion. 
 
 What is an account! Of what two part* Joes each account consist! What 
 !■ meant by the phrase " to open an account !" 
 
 EXPLANATION OF ACCOUNTS. 
 
 EXPLANATION OF ACCOUNTS IN THE LEDGER, WITH THE 
 RULES FOR OPENING AND CLOSING THEM. 
 
 Dr. 
 
 Slock. 
 
 Cr. 
 
 Stock represents the trading capital of the merchant or person 
 in whose name, or for whose particular benefit the books are 
 conducted. 
 
 The object of this account is to exhibit the assets and liabili 
 ties in one mass. 
 
 The amount of the person's 
 liabilities or debts, if there be 
 any, in starting business, and 
 the amount drawn out since, 
 are entered in the left hand 
 money column, or Dr. side. 
 
 The amount of his resources y 
 or the effects which he puts 
 into trade in starting, and the 
 amount brought into business 
 since, if there be any, are en- 
 tered in the right hand money 
 column, or Cr. side. 
 
 This account is closed "To" or "By Balance." If, after re 
 ceiving the balance of Profit and Loss account, the Cr. side^ b€ 
 the greater, it is closed "To Balance" for the excess of the Cr. 
 side over the Dr., which is the net capital of the concern. If, 
 however, the Dr. side exceed the Cr., the account is closed " By 
 Balance" for the excess, in which case the concern is evidently 
 insolvent ; the difference between the two sides representing the 
 amount of deficiency. 
 
 NoTK. — ^In Copartnership budness the individual accounts of those forming the 
 concern are substituted for Stock account, each partner being credited for the amount 
 of his investment. 
 
 What is the object of Stock Account ! What are placed on the Dr.. and 
 what on the Cr. side ! How is this account closed ? 
 
 [The teacher should proceed to ask the same questions on each of the ■»» 
 ooonts described in this article.] 
 
 » 
 
il 
 
 it 
 
 I 
 
 i 
 
 24 
 
 BECKER'S BOOK-KEEPING. 
 
 Br. 
 
 Cash, 
 
 Cr. 
 
 The object of this account is to show the amount of Cash 
 taken in, the amount paid out, and the balance on hand. 
 
 The Cash in hand, when the 
 books are opened, and all sums 
 received are entered on the Dr. 
 side, and 
 
 The disbursements, or sums 
 of money paid out, are entered 
 on the Cr. side. 
 
 This account is closed with "Balance" for the difference be- 
 tween the two sides, and, as Cash must be received before it 
 can be paid out, the Dr. side will be the larger, while any cash 
 remains on hand; hence, it must always be closed "By Balance. 
 
 » 
 
 JDr. 
 
 Merchandise. 
 
 Cr. 
 
 The object of this account is to show the cost of the merchant's 
 stock of goods, the amount of the sales, and the gain or loss on 
 the same. 
 
 The amount of the sales of 
 goods are entered on the Cr, 
 side. 
 
 The value of goods on hand 
 on commencing business, and 
 the cost of those purchased 
 afterwards, including charges 
 attending the receipt of the 
 same, are entered on the Dr. 
 side; and 
 
 This account is closed "By Balance" for the value of the 
 goods unsold. When this balance has been added to the Cr. 
 side, if the Dr. side be the larger, the account is closed "By 
 Profit and Loss" for the difference which is the amount of loss 
 on the account; but, if the Cr. side be the larger, it is closed "To 
 Profit and Loss" for the difference, which is the amount oigain. 
 
 EXPLANATION OP ACCOUNTS. 
 
 25 
 
 Dr. 
 
 Bills Receivable. 
 
 Cr. 
 
 The object of this account is to show the amount of Notes, 
 Bills, and Bonds received, the amount of those that have been 
 paid or passed away, and the balance yet unpaid. 
 
 The amount of Notes, &c., on 
 hand at the commencement, 
 and all Notes, Bonds and ac- 
 ceptances that have been re- 
 leived, are entered on the Dr. 
 sideybr the amount on the face 
 of them; and 
 
 The amount on the face of 
 every bill disposed of, or for 
 which payment has been re- 
 ceived, is entered on the Cr. 
 side. 
 
 This account naturally closes of itself ; but, if the bills be not 
 all paid, it is closed " By Balance," for the amount of those re- 
 maining on hand unpaid. 
 
 Note. — Should a note not be exonerated at maturity, if it is not believed to be a 
 total loss, it should be charged in account to the drawer or maker of the note, with all 
 the expenses for protest, &c : but, if it be a total loss, Profit and Loss must be debited. 
 (n both cases, Bills Receivable must be credited for the face of the note. 
 
 Dr. 
 
 Bills Payable. 
 
 Cr. 
 
 The object of this account is to show, first, the amount of the 
 merchant's notes passed to others, and the drafts of other per- 
 sons which he has accepted; secondly, the amount of the notes 
 taken up or paid; and, thirdly, the amount remaining out 
 unpaid. 
 
 The amount of all bills or ac- 
 ceptances which are paid or 
 withdrawn from circulation, 
 are entered on the Dr. side. 
 
 The amount of Nctes, Bonds, 
 and acceptances issued, and of 
 those unredeemed at the com- 
 mencement, are entered on the 
 Cr. side; and 
 
 This account, like Bills Receivable, naturally closes of itself. 
 If there be any difference between the sides, it indicates the 
 amount owed by the merchant in notes or acceptances. It is, 
 therefore, always closed " To Balance." 
 C 4 
 
Vl 
 
 * 
 
 BECKER'S BOOK-KEEPING. 
 
 Dr. 
 
 Personal Accounts. 
 
 Cr. 
 
 These accounts are numerous, and are known by the namei 
 of the respective individuals, firms, or companies. 
 
 The object of such accounts is to show the amount owed iy 
 the merchant to the individual, firm, or company whose name 
 heads the account, or the amount due him by the same party. 
 
 The amounts in which the 
 party heading the account is 
 indebted to the merchant,* 
 whether it be for goods sold 
 him or them on trust, for pay- 
 ment or allowance made, for 
 the merchant's notes and bills 
 drawn upon others, are entered 
 on the Dr. side. In the books 
 of mechanics and professional 
 men, the amount due by the 
 party for work done or services 
 rendered, is also entered upon 
 the Dr. side. 
 
 The amounts in which the 
 merchant is indebted to the 
 party, whether it be for cash 
 received, for value of the goods 
 received on account, for com- 
 pensation, or otherwise, are 
 entered on the Cr. side. 
 
 
 These accounts are closed into " Balance" for the difference 
 between both sides, and the balance indicates the debts of the 
 individual, &c., to the concern or the debts of the concern to 
 him. 
 
 Beal Estate^ Ship^ Railroad Stocky Bank Stock, or 
 Dr. any other Speculation Account. Cr. 
 
 The object of these accounts is to show, first, the value or 
 cost of the Real Estate, Ship, &c. ; secondly, the returns that 
 may be received from them; and thirdly, the gain or loss that 
 may arise from their sale. 
 
 • The word merekemt is in this article used as a representative of the differvul 
 dasBes of persons who are accustomed to keep accounts. By using it, it is not ii»> 
 tended to conrey the idea that the mechanic or professional man may not keep the#^ 
 ■ecoiinUk 
 
 EXPLANATION OF ACCOUNTS. 
 
 27 
 
 The amount which it has 
 brought (if sold) and the amount 
 of rent, freight, dividend, &c., 
 are entered on the Cr. side. 
 
 The estimated value of the 
 property, when the books are 
 opened and the cost or value 
 of any that may be afterwards 
 acquired, either by purchase 
 or bequest, together with the 
 charges on the same, are entered 
 on the Dr. side ; and 
 
 These accounts are closed in the same manner as Merchan- 
 dise, which see. 
 
 Dr. 
 
 Profit and Loss. 
 
 Cr. 
 
 The object of this account is to show the gains or losses in 
 business. 
 
 The several items of gain that 
 may arise from time to time, on 
 different accounts, such as Ex- 
 change, Discount and Interest, 
 Commission, Merchandise, or 
 any speculation account, are 
 entered on the Cr. side. 
 
 The several items of loss 
 that may arise from time to 
 time, on different accounts, 
 such as Expense, Discount and 
 Interest, Merchandise, or any 
 other speculation account, are 
 entered on the Dr. side; and 
 
 This account, at the general balance, is closed into " Stock" for 
 the difference between the two sides, which is the net gain or 
 loss as the case may be. 
 
 In Copartnership this account is closed " To" or " By" each 
 partner's individual accoimt for his respective share of the gain 
 or loss in the business. 
 
 Discount, Interest, Exchange, Brokerage, 
 Br. Premium, S^c. Cr. 
 
 These accounts are branches or subdivisions of "Profit and 
 Loss," and they may be kept under one head, as Interest, or 
 Discount and Interest, &c. 
 
 Their object is to show the amounts received and those paid 
 under these several heads, and the gains or losses under th# 
 same. 
 
88 
 
 BECKER'S BOOK-KEEPING. 
 
 All sums for the like allowed 
 him by others, are entered on 
 the Cr. side. 
 
 The discount on all notes, 
 bonds, and acceptances of other 
 persons which the merchant 
 has had discounted, the inte- 
 rest which he pays upon his 
 own notes and for the use of 
 money and goods of any kind, 
 sums which he allows on Book 
 accounts, or on accounts-cur- 
 rent, and losses on bills of ex- 
 change, are entered on the Dr. 
 side; and 
 
 The accounts are closed into " Profit and Loss" for the diflfet- 
 ence between the sides, which represents the gain or loss. 
 
 I>r. 
 
 Expense. 
 
 Cr. 
 
 The object of this account is to show the aggregate amount 
 of expense incidentally incurred in carrying on a business. 
 
 All sums paid for carrying 
 on a business, whether they be 
 for clerk hire, store rent, cart- 
 age, labour of any kind, postage, 
 stationery, or advertising, are 
 entered on the Dr. side ; and 
 
 All sums allowed the mer- 
 chant by others, and which 
 have been previously disposed 
 of as an expense to him, ar« 
 entered on the Cr. side. 
 
 This account is a branch of Profit and Loss, and is closed " By 
 Profit and Loss." 
 
 NoTB. When it is desirable to keep the Store Expenses distinct from the general 
 Expense account, an account called « Store Expenses" or « Charges — MerchandiM** 
 may be opened. 
 
 Dr, 
 
 Commission. 
 
 Cr. 
 
 The object of this account is to collect under one head all 
 bums received for transacting business for others as their agent 
 or factor. 
 
 EXPLANATION OP ACCOUNTS. 
 
 29 
 
 On the Dr. side no entries l The amount or per centage 
 are made except for the purpose I allowed the merchant on the 
 
 of closing the account. 
 
 sales of intrusted goods or other 
 property, and on purchases for 
 another person's account, are 
 entered on the Cr. side. 
 
 The account is closed "To Profit and Loss" for the amount 
 of the Cr. side, the same being gain. 
 
 Dr. 
 
 Chiarantee. 
 
 Cr. 
 
 The object of this account is to show the gain or loss in 
 guarantying conmiission sales, or the performance of stipula* 
 tions of another. 
 
 All sums in which he is 
 pledged for the performance of 
 stipulations made by another 
 and not redeemed at maturity 
 are entered on the Dr. side. 
 
 All sums allowed the mer- 
 chant by others for guaranty- 
 ing commission sales, for the 
 payment of another indivi- 
 dual's notes, &c., are entered on 
 the Cr. side. 
 
 This account is closed into "Profit and Loss." 
 
 Dr. 
 
 Loan or Borrowed and Lent. 
 
 Cr. 
 
 The object of this account is to show the amount of money 
 borrowed or lent for a few days. 
 
 All sums loaned to others to 
 be refunded in a short time, and 
 all sums refunded by the mer- 
 chant, the same having been 
 borrowed, and placed to the 
 credit of this account, when ob- 
 tained, are entered on the Dr. 
 tide; and 
 
 All sums refunded to tha 
 merchant, being for loan made 
 to others and charged to this 
 account as such, and all sums 
 borrowed by him, are entered 
 on the Cr. side. 
 
 This account naturally closes of itself; but, if the Dr. exceed 
 Uie Or. side, it is closed "By Balance" for^he difference, which 
 
f 
 
 I 
 
 BECKER'S BOOK-KEEPING. 
 
 is the amount ot money loaned to others and not refunded; and 
 if the Cr. exceed the Dr. side, it is closed "To Balance'' for the 
 difference, which denotes the amount borrowed and still due. 
 
 When both sides of this account are open, it is closed with 9 
 a double Balance for money borrowed and lent. 
 
 Dr. 
 
 Suspense. 
 
 Cr. 
 
 The object of this account is to show, first, the amounts which 
 for an uncertain and undefined purpose have been withdrawn 
 from business; secondly, all sums received by a commission 
 merchant for goods sold, to which, from accident or carlessness, 
 he is unable to assign an owner. 
 
 The amount of cash or value 
 of other property withdrawn 
 for an uncertain and undefined 
 purpose, are entered on the Dr. 
 side; and 
 
 When the owner of the goods 
 appears, the amount is entered 
 on the Dr. side. 
 
 When the object is defined, 
 for which cash or other pro- 
 perty is withdrawn, the amount 
 as per Dr. side is entered on the 
 Cr. side. 
 
 The net proceeds or value 
 of goods sold, to which, from 
 accident or carelessness, the 
 merchant is unable to assign 
 an owner, are entered on the 
 Cr. side ; and 
 
 The account is closed into "Balance." 
 
 The object of this account is to prevent the necessity of open- 
 ing many small accounts with individuals with whom it is not 
 expected to have a running account. 
 
 When payment is made by 
 him, the amount of the same is 
 entered on the Dr. side, without 
 regard to priority of date, and 
 on the line opposite to which 
 the credit was first entered. 
 
 The sums in which the mer- 
 chant is indebted to an indivi- 
 dual with whom he keeps no 
 running account, are entered 
 on the Cr. side ; and 
 
 EXPLANATION OF ACCOUNTS. gi 
 
 Each name on the Cr. side represents a distinct account, and 
 if the latter be not found closed at the general Balance, it is 
 closed " To Balance" for the amount still due. 
 
 Dr. Debts Receivable, or Sundry Debtors. Cr. 
 
 The object of this account is the same as that of the preceding 
 
 .'Jh '""!k '" which an indi- , When he receives payment, 
 vidua, with whom the mer- the amount of the same is 
 chantkeeps no running account, entered on the Cr. side, and on 
 IS indebted to him, are entered {the same line as that on which 
 on the Dr. side ; and I the corresponding debit is en 
 
 I tered. 
 
 The account is closed "By Balance'' for the respective 
 amount of each individual's account. 
 
 Dr. Sales No. \, or A. B's. Consignment. Cr. 
 
 The object of this account is to show the net proceeds of A. 
 B's. consignment. 
 
 AH charges incurred on re- 
 ceiving the goods, such as 
 freight, duty, cartage, &c., and 
 ^ all abatements made for de- 
 fects in wares are entered on 
 the Dr. side; and 
 
 The amounts of all sales of 
 consignments are entered on 
 the Cr. side. 
 
 If the goods be all disposed of, this account is closed " To 
 Expense" for the after charges, if there be any, such as labour, 
 storage, postage, advertising, &c. 
 
 " To Commission,"* for the merchant's commission on the 
 total sales; 
 
 « To Guarantee,"t (if any be allowed) for the risk on tl e 
 amount of goods sold on time ; and 
 *^To A. B," the con signer, for the net proceeds due him. 
 
 ^^On domestic sales, the commission is 2^ per cent, and on foreign sales, 6 p. 
 tThe guaianti^e is 2| per cent 
 
I 
 
 ♦ 
 
 lui,, 
 W 
 
 ^^, 
 
 h 
 
 32 
 
 BECKER'S BOOK-KEEPING. 
 
 If payment be made to A. B., when the account sales is ren« 
 dcred, instead of the latter entry, we say, 
 
 "To Cash," or the account which pays him. 
 
 If at the general balancing of accounts the goods be not all 
 sold, and no account sales be required, the account is closed 
 '' To'.' or ** By Balance. 
 
 Br. 
 
 Mventure No. 1. {London.) 
 
 Cr. 
 
 The object of this account is to show, first, the cost of, and 
 charges on, goods intrusted to a commission house at home, to 
 sell for the consignor's account and risk, or shipped abroad on 
 consignment; secondly, the net proceeds of the sales, or the 
 amount due the consignor by the commission merchant, after de- 
 ducting his charges; thirdly, the gain or loss arising from the 
 adventure. 
 
 The cost of the goods and 
 all charges on the same are 
 entered on the Dr. side ; and 
 
 The returns or net proceeds 
 are entered on the Cr. side. 
 
 If the owner of the goods has received an account sales of the 
 whole adventure, the account is closed'^ To" or "By Profit 
 and Loss," according as the Cr. or Dr. side is the larger. 
 
 If he has received an account sales of part only, the account 
 is closed " By Balance" for the value of the goods remaining t 
 unsold in the factor's hand ; and " To" or " By Profit and Loss," 
 for the diflference between the two sides, which denotes the gain 
 or loss on the goods, for which an accoimt sales has been 
 received. 
 
 If no account sales has been received at the time of closing, 
 
 the account must be credited " By Balance" for the amount of 
 
 (tie Dr. side, which is the value of the goods in the factor's 
 hand. 
 
 EXPLANATION OF ACCOUNTS. 
 
 33 
 
 Mventure in Co. with A. B., or Shipment in Co. 
 ^r. with A. B. Cr. 
 
 The object of this account is to show, first, the adventurer's 
 share of the cost and charges of the shipment; secondly, his 
 share of the net proceeds; thirdly, the proportion of the gain 
 to be received, or of the loss to be borne by him. 
 
 .mmimnfrr''^ ^^^- '°'* ^'1 ^'^ ^^^^^ «f ^he net pro- 
 
 rZ Dr c^' ''^!?''' "^'^'"^ """^^ ^^ '^^ «^1^« i« entered on 
 on the Dr side; and | the Cr. side. 
 
 This account is closed "To" or "By Profit and Loss" if an 
 account sales be received; but if none be received, at the gene- 
 ral closing of the books, " By Balance" for the amount of the 
 Dr. side. 
 
 Dr. 
 
 Insurance. 
 
 Cr. 
 
 The object of this account is to show the gains or losses by 
 insuring for others. ^ 
 
 All sums insured which the 
 insurer is obliged to pay are 
 entered on the Dr. side; and 
 
 The premiums which he has 
 charged for insuring houses, 
 ships, merchandise, &c., are 
 entered on the Cr. side. 
 
 This account is closed into Profit and Loss. 
 
 Merchandise in Co. and other Speculation 
 ^^' Accounts in Co. r, 
 
 irahls'jT" °^ '^''^^^<^onms is to show what the merchant 
 gams or loses m each Co. speculation of which he has the 
 
1 
 
 l'{ 
 
 34 
 
 BECKER'S BOOK-KEEPING. 
 
 The amjiint of the mer- 
 chant's share of the cost or in- 
 vestment, and the charges and 
 expenses paid by him, are en- 
 tered on the Dr. side ; and 
 
 The amount of the com 
 pany's goods sold are entered 
 on the Cr. side. 
 
 On making up this account it is debited 
 « To Expense" for the after charges, if there be any ; 
 " To Commission" for the manager's commission {2\ per cent 
 
 or as per agreement) on the total proceeds, for selling; and 
 << To A. B. and C. D.," the other individuals of the Co., each 
 for their share of the net proceeds. 
 
 After the above entries have been made, the difference be- 
 tween the two sides will be the gain or loss in the Co., accruing 
 to the partner who manages the business, and the account will 
 be closed '* To" or « By Profit and Loss." 
 
 Dr. Intrusted Real Estate^ Stocks^ Bonds^S^'C. Cr, 
 
 The individual for whom one holds intrusted real estate, 
 Btocks, bonds, or property of any description, must generally be 
 tredifed for its value, when it comes into his possession, and 
 debited when it passes from his control. 
 
 The object of these accounts is to show the value of such 
 property as is held in trust for others, and the amount which it 
 produces whilst under one's control. 
 
 All returns or net proceeds 
 are entered on the Cr. side. 
 
 The value of intrusted real 
 estate, stocks, bonds, &c. at the 
 time they come into one's pos- 
 session, and all charges and ex- 
 penses, attending the same, are 
 entered on the Dr. side. 
 
 Accounts of this kind, if not found closed on settling the books, 
 are closed "By Balance" for the value of the property still held 
 in trust. The difference between the sides will denote the gain 
 or loss on the account, and the account will be closed "To" or 
 «B/" the individual or individuals for whom the trustee holds 
 said real estate, &c., in trust. 
 
 EXPLANATION OF ACCOUNTS. 
 
 35 
 
 Dr. Exchange account in Co. with Jl. B. Cr, 
 
 On receiving Drafts or Bills of Exchange as a remittance on 
 joint interest and account with a correspondent, "Bills Re- 
 ceivable" is debited for the face of the Bill, and "Exchange 
 Account in Co." for the premium, and A. B. (the correspondent) 
 is credited for the same. 
 
 If the merchant be the remitter, A. B. is debited for the Bill 
 and premium, and the account or accounts from which they 
 emanated are credited. 
 
 The object of this account is to ascertain the gains or losses 
 Dy exchange on mutual Drafts and remittances between two 
 persons. • 
 
 All premiums paid by the 
 correspondent on Bills remitted 
 to be sold for mutual benefit, 
 and all discount allowed on the 
 same to others, are entered on 
 the Dr. sidej and 
 
 All premiums received on 
 Bills when disposed of, and all 
 discounts allowed on Bills to 
 the correspondent on purchas- 
 ing the same, are entered on 
 I the Cr. side. 
 
 The difference between the sides is the net gain or loss, as the 
 case may be. On rendering an account-current to the corres- 
 pondent, this account is closed "To" or "By A. B." for his 
 share of the net gain or loss, and "To" or "By Profit and 
 Loss" for the share of the net gain or loss by exchange, accru- 
 ing to the other party. 
 
 BALANCE. 
 
 " This account is usually opened when the Book-keeper is 
 prepared to close the books, and intends transferring the ac- 
 counts to a new Ledger, and to it all accounts not otherwise 
 disposed of are closed." The process is as follows : " The ba- 
 lances are copied from the 'Balance Sheet' into the Day Book; 
 thence they are conducted to the Journal, and condensed in the 
 Ledger under the caption of Balance Account. There they are 
 not permitted to remain, but are reconducted by the same route 
 to the same places whence they proceeded, where, after a long 
 and tedious pilgrimage, they may rest till another periodical 
 
% 
 
 BECKER'S BOOK-KEEPING. 
 
 EXPLANATION OF ACCOUNTS. 
 
 37 
 
 I 
 
 journey is contemplated." We would propose a plan wliich we 
 believe to be better than the above — one which can be more 
 readily understood, and which is more generally adopted by ac- 
 countants, than the one already described. 
 
 When the Ledger is filled, the accounts which exhibit ba- 
 lances may be transferred before the close of the year or the 
 regular period of balancing the accounts; that is, they may be 
 transferred without previously closing accounts for the gains or 
 losses in the business. Having ascertained, by means of the 
 " Trial Balance," that the Ledger has been correctly posted, or 
 at least that the amounts of both sides agree, a "Balance Sheet" 
 must be drawn, and for this purpose the Book-keeper should 
 rule a sheet of paper in the form of Dr. and Cr. with money and 
 folio columns, and head it as in the following sample: 
 
 Bt, Balance Sheets or Transfer Balance Sheet. Cr. 
 
 1 T^ger Folio. 1 
 
 On the left hand side are 
 placed all the Dr. balances, 
 or the amounts necessary 
 to balance the Cr. side of 
 the various accounts. 
 
 1 
 
 
 
 1 
 
 1 
 
 On the right hand side 
 are placed all the Cr. bal- 
 ances, or the amounts ne- 
 cessary to balance the Dr. 
 side of the various accounts. 
 
 
 
 T 
 
 The difference is equal to the balance of "Stock Account," 
 with which the Balance Sheet is closed. 
 
 Having done this the next step is to commence the process of 
 
 Tram/erring Accounts from the Old to the New Ledger, 
 
 The new Ledger should be arranged in the following order. 
 One third or one fourth of it shou.d be appropriated for those 
 accounts which are of a primary nature, and which ought to oc- 
 cupy the first part of the Ledger. These accounts are Stock, or 
 the names of the persons who compose the partnership, Cash, 
 Bills Receivable, Bills Payable, Profit and Loss, and its branches, 
 Merchandise and its branches, and speculations and consign- 
 ments, if there be any. After these should follow the personal 
 accounts. Of these there should be placed, first, the city custom- 
 ers of the merchant, next, those who reside in the state in which* 
 he lives, and after these, those of other states and countries, 
 allowing for each division sufficient room for new accounts or 
 
 transfers. The number of pages required for each of these 
 divisions may be ascertained from the old Ledger; or if it be the 
 first Ledger opened in a concern, the nature of the business will, 
 to some extent, assist in making these arrangements. 
 
 Havmg made these divisions, and numbered the pages in the 
 Ledger, the transferring of the accounts into the new Ledger, 
 should be commenced, the accountant placing the old Ledger on 
 his left hand side, and the new Ledger on his right hand side, 
 and the Balance Sheet in front of him on the desk or table. 
 
 It is unimportant whether he begin with the titles ot the Dr. 
 3r those of the Cr. balances first. If the work be commenced 
 with the account which heads the Dr. balances, these should be 
 continued in regular order till they are all transferred; after- 
 wards the Cr. balances should be taken in their order. 
 
 For the sake of illustration, suppose the first Debtor title of 
 the accounts, per Balance Sheet, to be Cash. The transfer will, 
 in that case, be made according to the following directions: 
 Write the title of this account in large round, or text hand, at 
 the top of the page appropriated for it, in the new Ledger. On 
 the Dr. side, write, in the first column, the date of the transfer; 
 in the second, the words, " To Balance from Ledger A. ;" in the 
 third, the folio of the account in the old Ledger ; and, in the 
 money columns, the amount. Having thus opened the account 
 in the new Ledger, turn to the same account in the old Ledger; 
 and, on the Cr. side of " Cash," enter the date " By Balance to 
 Ledger B," the folio of the account in the new Ledger; and, in 
 the money columns, place the amount as carried forward. The 
 two sides on addition must agree. 
 
 This manner of closing the old Ledger, and opening the new 
 one, affords a ready reference from one book to another, as 
 may be seen by the following example : . 
 
 OLD LEDGER, DESIGNATED AS LEDGER A. 
 
 Dr, 
 
 Cash. 
 
 8. 
 
 Cr. 
 
 Jany. 31. iTo Sundries. 
 
 12,000 00 
 
 Jany. 3 1 . 
 Feb. 1 
 
 By Sundries. 
 '< Balance to 
 Ledger B. 
 
 5 000 
 7,000 
 
 00 
 00 
 
 D 
 
 it^ 
 
gg BECKER'S BOOK-KEEPING. 
 
 NEW LEDGER, DESIGNATED AS LEDGER B. 
 
 5. 
 
 Dr. Cash, Cr. 
 
 Feb. l. 
 
 To Bal. from 
 Ledger A. 
 
 8 
 
 7,000 
 
 00 
 
 
 
 
 
 
 In the manner which we have described, the accounts should 
 be opened in the new Ledger, and the same closed in the old 
 Ledger. The accounts which have Cr. balances are closed in 
 the old Ledger, " To Balance to Ledger B." on the Dr. side of the 
 account, and are opened in the new Ledger, " By Balance from 
 Ledger A." on the Cr. side. 
 
 Having completed the transfer of the accounts, they should 
 be compared with the Balance Sheet, and every account, after 
 bein? examined and found to be correct, should be checked off 
 thus ( i/ ) both in the Ledger and Balance Sheet. 
 
 When is Balance acrount usually opened 1 Describe the process gone 
 throuffh before opening it. Is this an approved plan 1 What is proposed in ila 
 place ? After the Trial Balance has been made and proved, what should be 
 ione 1 Describe the Transfer Balance Sheet. How is it closed 1 When it is 
 closed, what is the next stepi Describe the division and internal arrangement 
 ot the new Ledger. How should the accountant arrange his books, &c., when 
 transferrino- the accounts to the new Ledger ? Take any account you please, and 
 show how it will be transferred if it has a Dii balance ; if it has a Cr. balance. 
 Show how the old Ledger is to be closed in both these cases. What method 
 should the accountant take to assure himself that all the accounts have been 
 transferred 1 
 
 III «> 
 
 RULES FOR JOURNALIZING, WITH EXEMPLIFICATIONS 
 OF JOURNAL AND LEDGER ENTRIES. 
 
 Rule L When one thing is given for another, the thing re- 
 ceived is Dr. to the thing given for it. 
 
 Rule IL When a thing is received, and nothing given for 
 it at the time, the thing received is Dr. to the party from whom 
 it was obtained. 
 
 Rule IIL When a thing is given and nothing received for 
 it at the time, the party to whom it is given is Dr. to the thinif 
 given 
 
 EXPLANATION OF ACCOUNTS. 39 
 
 A few examples will show the application of these rules. 
 
 EXAMPLES. 
 
 Transaction. — January 3d, 1847. 
 Sold to Samuel Moss a quantity of goods for Cash, 
 
 amounting per Sales Book to ^800,00 
 
 In this transaction "Merchandise^^ is given for "Cash.'' 
 According to Rule I. the Cash received is Dr. to the Merchan- 
 dise given for itj therefore, in Journalizing this entry we say 
 
 January Sd, 1847. !• 
 
 U Cash 
 
 Dr. To Merchandise 
 
 for sales to Samuel Moss, per. S. B 
 
 $800,00 
 
 The meaning of this entry is, that in the Ledger " Cash" is 
 to be debited "To Merchandise |>800,00," and " Merchandise" 
 is to be credited " By Cash ^800,00." The following are the 
 Ledger entries : 
 
 Dr. 
 
 I. 
 
 Cash, Cr. 
 
 1847. 
 Jany. 3. 
 
 To Merchandise. 
 
 • 
 1 
 
 800 
 
 00 
 
 
 
 
 I 
 
 
 
 
 Dr. 
 
 2. 
 Merchandise. Cr. 
 
 
 
 
 
 
 1847. 
 Jany. 3. 
 
 By Cash. 
 
 « 
 1 
 
 800 00 
 
 1 
 
 Transaction. — January 9th, 1847. 
 Bought of Wm. Brown, (on credit.) 
 
 200 Bbls. Superfine Flour, a $5, {?> 1,000,00 
 
 In this transaction, " Merchandise'' is received and nothing 
 
 I 
 
 * The figures m these columns refer to the page of the Ledger, and those in th^ 
 Ledger refer to the Journal. 
 
i. HI 
 
 40 
 
 BECKER'S BOOK-KEEPING. 
 
 EXPLANATION OF ACCOUNTS. 
 
 41 
 
 given for it; (at the time of receiving it;) therefore, Rule II. ap 
 plies. The *^ Merchandise^^ received is Dr. to the party from 
 whom it was obtained, * The Journal entry will be, 
 
 ft 
 
 January 9 th, 1847. 
 
 •f. Merchandise 
 
 14 
 
 Dr. To 
 
 Wm. Brown. 
 
 for 200 Bbls. Superfine Flour at $5 $1000,00 
 
 The meaning of this entry is, that in the Ledger " Merchan- 
 dise" is to be debited "To Wm. Brown |5 1,000," and that « Wm. 
 Brown" is to be credited "By Merchandise ^1,000." The fol- 
 lowing are the Ledger entries. 
 
 2. 
 
 Br. 
 
 Merchandise. ^r. 
 
 1847. 
 Jany. 9. 
 
 To Wm. Brown. 
 
 2 
 
 1 
 
 1000 
 
 00 
 
 
 
 
 ( 
 
 
 14. 
 
 Br. 
 
 ^m. Brown. 
 
 Cr. 
 
 
 
 
 
 
 1847. 
 Jany. 9. 
 
 By Merchandise. 
 
 2 
 
 1000 
 
 00 
 
 Transaction. — January I5ih, 1847. 
 Delivered to Wm. Brown my note at 3 months from 
 9th inst., for 4*1,000,00 
 
 In this transaction a promissory note is given and nothing 
 received for it (at the time of giving it;) therefore, ac- 
 cording to Rule III., the party receiving this note is Dr. to 
 the note given. All notes, drafts or acceptances which the mer- 
 chant issues are entered under the head of Bills Payable. 
 Hence the Journal entry is 
 
 3 January I5th, 1847. 
 
 \1 Wm. Brown Dr. To 
 
 8 
 
 Bills Payable. 
 
 for my note at 3 months from 9th inst $1000,00 
 
 The meaning of this entry is that " Wm. Brown" is to be 
 debited "To Bills Payable 151,000," and that "Bills Payable'* 
 
 is to be credited "By Wm. Brown ^1,000." The following are 
 the Ledger entries: 
 
 14. 
 
 Dr. Wm. Brown. Cr. 
 
 1847. 
 Jany. 15. 
 
 To Bills Payable. 
 
 3 
 
 1,000 
 
 00 
 
 
 
 
 
 
 8. 
 
 Dr- Bills Payable. Cr, 
 
 
 
 
 
 
 1847. 
 Jany. 15. 
 
 By Wm. Brown. 
 
 3 
 
 1,000 
 
 00 
 
 The preceding examples are simple Journal entries, having 
 but one debtor and but one creditor. The application of the 
 rules to them is therefore very easy. But there are other and 
 more complicated cases, in which the process is more difficult. 
 A complex entry is one in which there are two or more debtors 
 to one creditor, or two or more creditors to one debtor. When 
 there are several debtors and several creditors, the entry is said 
 to be complex in both its terms. The following is an example 
 of a complex entry in one term. 
 
 iS3,000,00 
 
 Transaction. — January 18M, 1847. 
 Bought of James Steel & Co., 
 
 10,000 bushels Turks Island Salt, at 30 cts. 
 
 Delivered in payment 
 My Draft on Joel King, New York, 
 
 at 30 days date, for |> 1,200,00 
 
 My Note at 30 days, 1,000,00 
 
 Cash for balance, less 1 per cent. ^800,00 
 
 Discount off, 8,00 792,00 
 
 Discount allowed me for 30 days, 8,00 
 
 f3,000,00 
 
 In this transaction Salt is received; my note, cash, and dis 
 count (i. e.,time) are given. For my Draft on Joel King, nothing 
 was civen him. Hence, Rules I. and II. apply. Rule I. ap- 
 plies, because to the amount of !?► 1,800 something was given 
 Ii2 6 
 
tBri'WP' 
 
 BECKER'S BOOK-KEEPING. 
 
 EXPLANATION OF ACCOUNTS. 
 
 43 
 
 r 
 
 h 
 
 hi 
 
 1 
 
 and something received. Rule II. applies, because, for value ro 
 ceived to the amount of g 1,200 nothing was given. Therefore 
 the Journal entry will be the following: 
 
 4 . January I8th, 1847. 
 
 Uo 
 
 Dr. To Sundries. 
 
 for purchase of James Steel & Co. 
 
 10,000 Bus. Turks Island Salt, at 30 cts. . 
 
 32 To Joel King, 
 
 for my Draft, James Steel &, Co's. &vour, at 
 30 days date 
 
 To Bills Payable, 
 
 for my note at 30 dajn, ••••.•. 
 To Cash, 
 
 for balance, less discount. 
 
 To Discount and Interest, 
 
 for 1 per cent allowed me on $800. . , . 
 
 8 
 
 * « Salt" is a branch of Merchandise account. When it is de- 
 sirable to ascertain the gain or loss on any particular article, 
 Merchandise account may be divided into branches, and kept 
 under specific titles, such as Cotton, Flour, Wheat, Brandy, To- 
 bacco, &c. 
 
 The term "Sundries," when used in the Journal caption, as 
 above, means two or more accounts. It is used for the sake of 
 brevity, since by its use we are enabled, in the general or head- 
 ing entry to omit the names of the several accounts which it re- 
 presents. Thus, in the preceding entry, instead of saying "Salt 
 Dr. To Joel King," "Salt Dr. To Bills Payable," "Sail Dr. To 
 Cash," and "Salt Dr. To Discount and Interest," we say "Salt 
 Dr. To Sundries." the latter term being the abbreviated title for 
 " Sundry Accounts." Of course, no such account as " Sundries" 
 is opened in the Ledger. "Salt" must be debited "To Sundries 
 «I3,000," and "Joel King," "Bills Payable," "Cash," and 
 "Discount and Interest" credited "By Salt," each for its re- 
 spective amount, the aggregate of the credit items being equal 
 to the whole debit amount. The following are the Ledgei 
 oQtries : 
 
 10. 
 
 Br, Salt. Cr, 
 
 1847. 
 Jany. 18. 
 
 To Sundries. 
 
 4 
 
 3,000 
 
 00 
 
 
 
 1 
 
 
 
 
 - 32. 
 
 Br. Joel King. Cr, 
 
 
 
 
 
 
 1847. 
 Jany. 18. 
 
 By Salt 
 
 4 
 
 1 
 1,200 
 
 00 
 
 
 8. 
 
 Br. Bills Payable. Cr, 
 
 
 
 
 
 
 1847. 
 Jany. 18. 
 
 By Salt 
 
 4 
 
 1,000 
 
 00 
 
 ■ 
 
 1. 
 
 Br, Cash. Cr. 
 
 
 
 
 
 
 1847. 
 Jany. 18. 
 
 By Salt 
 
 4 
 
 792 
 
 00 
 
 
 6. 
 
 Br. Discount and Interest. Cr, 
 
 
 ■«^ 
 
 
 
 
 1847. 
 Jany. 18. 
 
 By Salt 
 
 4 
 
 8 
 
 00 
 
 The following examples will show the method of treating 
 complex entries in both terms: 
 
 Transaction. — January 25thf 1847. 
 Sold to Robert Brandon, 
 
 100 Bales Cotton, (belonging to J. Knox's 
 consignment,) 36,250 lbs. a 7cts. 
 1000 Bus. Wheat, (my own,) weight 975 
 Bus a l»l,00 
 
 $2,537,50 
 
 975,00 
 ,512,50 
 
 f ■l< 
 
 « 
 
\i 
 
 
 BECKER^S BOOKKEEPING. 
 
 EXPLANATION OF ACCOUNTS. 
 
 45 
 
 Received in Payment 
 My Note, Wm. Brown's favour^ due 9th — 
 
 12th April. 
 His Draft on Reynolds & Co., Baltimore^ 
 
 my favour, at 60 days' date. 
 Wm. Johnson's Draft on me, at sight, his 
 
 favour, being in full for balance due him 
 
 on account. 
 Cash, 
 The Balance sold him on credit, 
 
 $1,000,00 
 950,00 
 
 345,37 
 
 500,00 
 
 739,93 
 
 $3,535,30 
 
 Discount off on my note, 77 days, $12,83 
 do on Draft on 
 Reynolds & Co., 63 " 9,97 
 
 22,80 
 
 $3,535,30 
 
 In the above transaction several things are received and 
 several given. Bills Payable, Bills Receivable, and Cash are 
 received, Cotton, (belonging to sales No. 1.) Merchandise (my 
 own) and Discount (i. c, time) were given. For Johnson's 
 Draft, and the Balance sold on credit, nothing is received. 
 Therefore Rules I. and III. apply. Rule I. applies, because to 
 he amount of $2,450, something was given and something 
 received. Rule III. applies, because to the amount of $1,085,30, 
 something was given for which nothing was received. 
 
 The Journal entry, therefore, is the following: 
 5 January 25th, 1847. 
 
 8 
 
 36 
 
 1 
 
 40 
 
 Sundries Dr. To Sundries 
 
 for sales of sundries to Robert Brandon. 
 Bills Payable. 
 
 for my note, Wm. Brown's favour, due 9th 
 —12th April 
 
 Bills Receivable, 
 
 for his Draft on Reynolds & Co., Baltimore, 
 my &vour, at 60 days' date. ..... 
 
 William Johnson, 
 
 for his draft on me, favour of Robert Brandon, 
 at sight ••. 
 
 Cash 
 
 for amount received. ••••••• 
 
 Robert Brandon, 
 
 for balance due me. • 
 
 1,000 
 
 950 
 
 345 
 
 500 
 739 
 
 $3,535 
 
 00 
 
 00 
 
 37 
 
 00 
 
 93 
 
 30 
 
 15 
 
 To Sales No. 1, 
 
 
 
 
 
 
 for 100 Bales Cotton, 36,250 lbs. at 7 c 
 
 
 
 2,537 
 
 60 
 
 2 
 
 To Merchandise, 
 
 
 
 
 
 
 for 1000 Bus. Wheat, weight 976 Bus. at $1, 
 
 
 
 975 
 
 00 
 
 6 
 
 To Discount and Interest, 
 
 
 
 
 
 
 for disct off on my note, 77 days, 12,83 
 u « on Dft. on Reynolds & Co., 
 63 days, 9,97 
 
 
 
 22 
 
 30 
 
 1 -■ __. _ . _ ; 
 
 $3,536 30 
 
 The term " Sundries" is here used to represent both titles 
 and items. In the Caption of the Journal entry, we have seen 
 that it represents titles, as when we say " Sundries Dr. to Sun- 
 dries." When used in the explanation of the Journal entry, it 
 represents items. Thus, in the preceding example, we have 
 said, " for sales of sundries to Robert Brandon," meaning, evi- 
 dently " for sales of sundry articles, &c." Entries in which 
 this word is used in these two different acceptations, are of fre- 
 quent occurrence. Hence it is well to remember, that for pur- 
 poses of illustration, the same word is frequently used to denote 
 titles and items; that the term sundries is applied both to 
 titles and items; and that its application to these is neither in- 
 discriminate nor arbitrary, but is governed by the object that is 
 to be attained by the employment of the term. 
 
 We have already said that there is no such account as " Sun- 
 dries" opened in the Ledger. Hence the Caption or Preface of 
 the Journal entries in a transaction like the preceding, though 
 it refers to the Ledger entries, does not point out what the latter 
 is to be. Thus in posting the last example, the entry, " Sundries 
 Dr. to Sundries" does not indicate the Ledger entry. In 
 Ledgerizing we proceed to take up singly the titles included under 
 Dr. " Sundries" and debit each one under its proper account, 
 "To Sundries." In this case the first Ledger entry will be 
 " Bills Payable" Dr. « To Sundries ^1000." The meaning of 
 this entiy is, that in the Journal, where Bills Payable is a debtor, 
 more than one account is creditor. We next turn to the accounts 
 included under the Cr. " Sundries," and credit each one " By 
 Sundries" under its proper account. The meaning of these 
 entries is, that in the Journal, where one account is creditor 
 more than one is debtor. The following is the form of the 
 Ledger entries in the last example. 
 
46 
 
 BECKER'S BOOK-KEEPma. 
 
 EXPLANATION OF ACCOUNTS. 
 
 47 
 
 I 
 
 Br. 
 
 Bills Payable. 
 
 Cr. 
 
 1847. 
 Jany. 25 
 
 To Sundries 
 
 1000 
 
 00 
 
 7. 
 
 Br. 
 
 Bills Receivable. Cr. 
 
 1847. 
 Jany. 25. 
 
 To Sundries 
 
 m 
 
 5 
 
 950 
 
 00 
 
 
 
 
 
 
 36. 
 
 Br, 
 
 Wm, Johnson. 
 
 Cr. 
 
 1847. 
 Jany. 25. 
 
 To Sundries 
 
 345 
 
 37 
 
 1. 
 Br. 
 
 
 Cash. Cr. 
 
 1847. 
 Jany. 25. 
 
 To Sundries 
 
 6 
 
 500 
 
 00 
 
 
 I 
 
 
 
 40. 
 
 Br. 
 
 Robert Brandon. 
 
 Cr. 
 
 1847. 
 Jany. 25. 
 
 To Sundries 
 
 739 
 
 93 
 
 15. 
 
 Br. Sales No. \^ {or J. Knox^s Consignment.) Cr. 
 
 1847. 
 Jany. 25. 
 
 By Sundries 
 
 2537 
 
 50 
 
 Dr. 
 
 Merchandise. 
 
 Cr. 
 
 1847. 
 Jany, 25. 
 
 By Sundries 
 
 975 
 
 00 
 
 6. 
 
 Br. 
 
 Discount and Interest. 
 
 Cr. 
 
 1847. 
 Jany. 25. 
 
 By Sundries 
 
 22 
 
 80 
 
 The three rules for Journalizing which we have given, and 
 which we have appUed in the foregoing examples, will enable 
 those who fally understand them, to dispose of any transaction, 
 however ccmrlicated it may be. But there is one rule which 
 includes these three, and which, consequently, applies to all 
 transaction?. It is this: the account that receives 2^ debtor 
 to the account that gives. All practical entries are based upon 
 this rule. 
 
 From these rules and examples it will be perceived that 
 book-lceeping by Double Entry is based upon a principle of 
 mathematical equilibrium, which equilibrium is attained by en- 
 tering each amount both on the Dr. and Cr. side. Hence this 
 principle reqdres that every debit must have a corresponding 
 credit and vice versa. 
 
 What i8 the first rule for Journalizing 1 The second 1 The third 1 Journalize 
 the transaction of January 3d.* Give the Ledger entries for the same. Apply 
 the proper rule to the transaction of January 9th. Ledgerize the Journal entry. 
 Take the transaction of January 15th, and go through the same process. What 
 are simple Journal entries 1 What is a complex entry? When is an entry com" 
 flex in both terms ? Analyze the transaction of January 18th, and apply the 
 rules. How is it Journalized 1 How are the Journal entries posted ? When is 
 merchandise account divided into branches % What does Sundries mean in this 
 case t Show its use in this transaction. Analyze the transaction of January 
 25th, and apply the rules. Give the Journal entries and Ledgerize them. 
 Give the two meanings of the term Sundries. Show how it is used in this 
 example. Is there not one grand rule for Journalizing which includes the 
 three that have been given 1 Show that a principle of mathematical equilibrium 
 lies at the foundation of Double Entry book-keeping. 
 
 * The teacher should in all cases of this kind read the transaction lo the student. 
 
4i 
 
 BECKER'S BOOK-KEEPIJNG. 
 
 DEBTOR AND CREDITOR. 
 
 49 
 
 ffl 
 
 DEBTOR AND CREDITOR. 
 
 A KNOWLEDGE of the technical meaning of the terms debtor 
 and creditor is indispensable to the acquisition of a correct 
 knowledge of the principles of book-keeping. Rules for the 
 dispositions of debits and credits in the operation of Journaliz- 
 ing, have already been given, and, in some form, are contained 
 in every work upon this subject. Yet, with these aids the stu- 
 dent is sometimes at a loss to comprehend the principles involved 
 in the explanation and directions given him. He can readily 
 understand that the person who owes is debtor and the one to 
 whom money is due, creditor; but, beyond this he cannot see 
 any reason for the application of those terms, though he may 
 know and be able to apply the rules for Journalizing. 
 
 This difficulty is not common to all who give their attention 
 to this subject. Some can readily understand why " the account 
 that receives is debtor to the account that gives." But, for the 
 benefit of those who can see no adequate reason for this rule, 
 we think it advisable to give the views and illustrations con- 
 tained in an article upon Book-keeping, in the Dublin Review. 
 
 The author of that article, after noticing the imperfect manner 
 in which this subject has been illustrated, proceeds to give his 
 own exposition. He commences by supposing that the merchant 
 commits his affairs to a number of clerks, assigning to each clerk 
 the care of one particular branch of the business, instead ot 
 opening an account to represent it. Thus he supposes the busi- 
 ness of attending to the receipt, expenditure, and safe-keeping 
 of the merchant's cash be confided to one clerk, whom we shall 
 call Cash ; that of superintending the merchandise transactioBS 
 to another clerk, named Merchandise, &c. These clerks, of 
 course, are representatives of the merchant or other person who 
 employs them. They are, therefore, accountable to him for 
 every item of his property which they receive, and are relieved 
 of this accountability when they part with the property intrusted 
 
 them. 
 
 Bearing this in mind, let us suppose that goods to the amount 
 of 15300 are purchased, one half of which is paid in cash and 
 for the remaining half the merchant gives his note. The goods 
 when received are of course delivered to " Merchandise." He 
 
 is accountable for them. He therefore becomes a debtor. But, 
 to whom is he debtor? Undoubtedly to "Cash" and "Bills 
 Payable," because both of these clerks have made payments on 
 his account, and for making these payments they have received 
 no consideration. There can be no difficulty in comprehending 
 this, for the student knows that if he pays money for a friend 
 from his own funds, his friend becomes a debtor to him for the 
 amount paid, and he of course is his friend's creditor. Let us 
 look at the other side of the transaction. "' Cash" is called upon 
 to pay on behalf of " Merchandise" |>150. He owes "Merchan- 
 dise" nothing, neither has the latter furnished him with funds 
 with which to make the payment. "Cash," who is accountable 
 for all the money he has on hand, is relieved of this account- 
 ability to the amount of $\S0. He is a creditor, and a creditor 
 of " Merchandise." The same reasoning holds good with re- 
 gard to *' Bills Payable." He is a creditor of "Merchandise." 
 Hence, the Journal entry of this transaction will be 
 
 Merchandise Dr. To Sundries J>300,00 
 
 To Cash 150,00 
 
 To Bills Payable 1 50,00 
 
 Let us take another transaction. Suppose the merchant sells 
 goods to the amount of ^497, and receives in payment, cash 
 $200 and a note for ^300 drawn by A. in favour of B., due in 
 60 days after its receipt. It will be observed, here, that this note 
 is not worth $300 till it becomes due. To obtain its present 
 value we must subtract the discount for 60 days, which is $^, 
 The note is therefore worth only $291, But the buyer allows 
 the merchant the discount, or, in other words, pays him |>3 over 
 and above what is due him. This should be borne in mind. 
 
 "Merchandise" delivers up goods to the amount of $497. 
 He is no longer responsible to his employer for that amount of 
 goods. How is he to show that he^ has rid himself of this re- 
 sponsibility? By crediting himself for that amount. Who are 
 his debtors? " Cash" certainly is a debtor, because he is re- 
 sponsible for the amount ($200) which he has received. He has 
 increased his indebtedness to his employer $200. With equai 
 certainty " Cash" is debtor to " Merchandise," because he re- 
 ceived the $200 from or for "Merchandise," and gave the latter 
 nothing for that amount. He owes " Merchandise" $200. " Bills 
 £ 7 
 
50 
 
 BECKER'S BOOK-KEEPING. 
 
 INDEX TO THE LEDGER. 
 
 51 
 
 Receivable" also owes the latter $300 for the same reason. But 
 it is not to ** Merchandise" alone that these gentlemen are in- 
 debted. Here is a fourth clerk who is to share in the transac 
 tion. This clerk is called " Profit and Loss." His duty is to bear 
 the blame whenever any loss is sustained, and to receive credit 
 for all sums that are gained in any department of the establish- 
 ment. Or, in other words, he is debited for all losses, and 
 credited for all gains. If his employer's pocket be picked, he is 
 accountable for it ; if a purse be found, he receives the credit for 
 it. But when it is desired to ascertain the gains or losses in 
 their various forms, this clerk finds it necessary to perform some 
 of his duties by deputies. The deputy who will take charge ^f 
 his duties in this transaction is "Discount and Interest." Of 
 course, his duties are the same as those of his principal. Hence 
 he is entitled to the credit for the $3 that have been gained in 
 this transaction. "Cash" and "Bills Receivable are the debtors, 
 because they receive the amount which is to be placed to the 
 credit of " Discount and Interest." Hence the Journal entry of 
 this transaction will be the following : 
 
 Sundries Dr. To Sundries. 
 
 Cash 200,00 
 
 Bills Receivable, 300,0 
 
 «500,00 
 
 To Merchandise, 497,00 
 
 To Discount and Interest, 3,00 
 
 Thus it will be perceived that when the various accounts are 
 « considered as different departments in charge of clerks, repre- 
 senting the merchant, the propriety of the rules for Journalizing 
 can readily be perceived. The case is not different when we 
 consider them as they really exist. The account of Merchandise, 
 for example, is responsible for all it receives; hence, it should 
 be debited for what it receives. It is relieved of its responsibility 
 •to the amount that it gives; hence, it should be credited for 
 
 *irhat it gives. 
 
 We shall recur to the principles contained in the article which 
 we have made use of, when we treat of the theory of Balance; 
 and, though they will be used for a purpose different from that 
 to which we have applied them, they will afford additional but 
 incidental illustrations of the terms debtor and creditor. 
 
 What is the difficulty usually encountered by students in re^id to the use 
 ^f the terms Dr. and Cr.1 For the sake of illustration, how may we suppose a 
 business to be conducted without opening the various accounts'? Illustrate 
 tills method. In what capacity do these imaginary clerks act 1 What follows 
 from thisi Take the first example given and show how the Dr. and Or. re- 
 lations of Cash, Bills Receivable, and Mdse. arise. Derive from the explanatien 
 the real entries for this transaction. Take the next example and explain its de- 
 tails. Show how the relations of the various clerks arise in this case. De- 
 rive from these the real Journal entry. What are the duties of the " Profit 
 and Loss*' clerk. When then is he debited, and when credited ? Is the pro- 
 priety of the rules for Journalizing as evident when we consider the accounts 
 as they really exist as when we represent them by clerks ? Illustrate this by 
 the Mdse. acc't. 
 
 4 ♦ • * »■ 
 
 INDEX TO THE LEDGER. 
 
 The Index is a list of the names of the accounts in the 
 Ledger, alphabetically arranged. It is sometimes bound with the 
 Ledger, occupying the fore part of the volume, but it is as often 
 bound in a book by itself The latter plan is more convenient, 
 and perhaps better in all respects than the former, since by its 
 adoption, the Ledger will be subject to less handling on referring 
 to accounts or opening new ones; and the Book-keeper will be 
 enabled to keep it cleaner than if the Index were bound with it. 
 
 The following are the directions for forming the Index: — 
 Having written the title of an account for the first time in the 
 Ledger, which is technically called "opening an account," turn 
 immediately to the proper page of the Index, and there record 
 the title with the folio or page on which the account is opened. 
 All representative accounts, and in general the names of firms 
 or companies are to be written in the Index in the same manner 
 as at the head of the accounts. The names of individual ac- 
 counts, however, should bo inserted differently. For instance, the 
 account of John Hamilton should be placed on the page ap- 
 propriated for the letter H, and written, ^Hamilton, John. The 
 account of Jas. L. Roberts & Co. should be placed under the head 
 of R, and written, Roberts, Jas. L., & Co. This arrangement, it 
 will be perceived, facilitates reference to accounts of this nature. 
 
 What is the Index to the Ledger! When are the names of the accounts to 
 be entered in the Index? How are reprssentaiive accounts entered? Individual 
 accoants 1 Give illustrations. 
 
llSi 
 
 BECKER'S BOOK-KEEPING. 
 
 s 
 
 f] 
 
 THE BILL BOOK. 
 
 This is a book of original entry. It is divided into two parts, 
 oae of which is appropriated for Bills Receivable, and the other 
 for Bills Payable. The arrangement of the various items ci 
 entry in this book is very simple ; all explanations being re- 
 corded briefly, and in columns with appropriate headings. 
 
 All Notes, Drafts, Bills of Exchange, and other written obli- 
 gations payable to the merchant, are entered as soon as received 
 in that portion of the book appropriated to Bills Receivable. 
 
 The merchant's Notes passed to others, and Drafts on him, 
 not drawn at sight and accepted by him, are, when passed or 
 accepted, immediately entered under the head of Bills Payable. 
 
 The total amount on the Dr. side of Bills Receivable account 
 in the Ledger must always agree with the total amount of 
 Bills Receivable entered in the Bill Book. All Bills Receivable, 
 when passed away or paid, are entered in the column headed 
 ** Remarks," with the date, as paid June 7th, " Passed to H. 
 Neff," " Discounted at Philadelphia Bank," &c. The object of 
 these entries is twofold. First, it is to show at a glance the total 
 amount of Notes, &c., paid or transferred, which amount must be 
 equal to the total of the sums on the Cr. side of Bills Receivable 
 account in the Ledger. Secondly, it shows the amount of Bills 
 Receivable remaining on hand and unpaid; which amount must 
 agree with the Balance of Bills Receivable account in the Ledger. 
 
 Similar principles apply to the case of Bills Payable; but 
 their application is not exactly the same as is that of Bills Re- 
 ceivable. In the former case the amount of Notes, &c., in the 
 Bill Book must correspond with the total on the Cr. side of Bills 
 Payable account in the Ledger; the total of the payments must 
 agree with the total of the Dr. side of the Ledger account; and 
 the difference between the two sides of the latter must be the 
 amount of notes, &c., unpaid, as indicated by the Bill Book. 
 
 How is the Bill Book divided 1 What are entered under Bills Receivable? 
 Under Bills Payable 1 How does the Book for Bills Receivable enable us to 
 test the correctness of the same in the Ledger! When a Bills Receivable has 
 been passed away or paid, what entry must be made in the Bill Bookl What 
 is the first object of these entries, and how do they afford a test of the correct- 
 ness of the Ledger account What is the second object, and what further test 
 do the entries afford 1 Show how similar principles apply to Bills Payable. 
 
 INVOICE OUTWARD BOOK. 
 
 53 
 
 THE COMMISSIOxV SALES BOOK. 
 
 This book is ruled with columns for the different details of 
 each distinct consignment. These details are recorded upon 
 opposite pages, with a preamble over both, setting forth the de- 
 scription of the goods, the name of the party from whom re- 
 ceived, &c. The left hand page contains a copy of the invoice 
 received. On the right hand page are inserted the particulars 
 of sales, viz.: When sold, the purchasers, the gross quantity, 
 (as hhds., bbls., bales, &c.,) the net quantity, yds., weight, &c., 
 when due, price, and amount. The difference between the total 
 amounts of the sales, and the charges on the consignment is the 
 net proceeds due the consignor, which, on making the closing 
 entries, is placed to the credit of his account. 
 
 How is the Commission Sales Book ruled ! Describe the internal arrange- 
 ments of the book. What is entered on the left hand page ? What are entered 
 on the right hand page ? How is the amount of the net proceeds due the cott- 
 •ignor ascertained I 
 
 « 
 
 ( .. 
 
 ^ * »* »■ 
 
 THE INVOICE OUTWARD BOOK. 
 
 In this book are copied all invoices of goods shipped abroad 
 on consignment, or delivered into the hands of an agent bv the 
 merchant or by others, according to his instructions on his own 
 or on joint interest and account with others; also, all invoices 
 of goods shipped by the merchant on account of others. All of 
 these invoices are copied on the left hand page, or Dr. side of 
 the book. On the right hand page, or Cr. side of the account, are 
 to be copied the sales of the goods when the account sales is 
 received. If the shipment, &c., be on account of others, a memo- 
 randum is made, showing the person who was charged for the 
 amount of the Invoice. 
 
 What is the use of the Invoice Outward Book 1 What is the use of the left 
 hand page of this book I What that of the right hand ? What memorandum 
 must be made when the shipment is on account of others ? 
 
 E 2 
 
54 
 
 BECKER'S BOOK-KEEPIIVG. 
 
 BOOKS OF ORIGINAL ENTRf. 
 
 55 
 
 THE CHECK BOOK. 
 
 This is a printed book of blank forms, with a broad margin to 
 each page. In this margin, in column No. 1, are noted all 
 moneys deposited in bank. When payment is to be made by 
 check upon a bank, or when it is desired that funds should be 
 drawn from the bank, one of these blank checks is filled and 
 torn off, and a memorandum of the payment is made in the 
 margin, in column No. 2. This memorandum must be con- 
 sidered as the original entry. Hence it is necessary that entries 
 in this book should be made with system and in business order. 
 There should be inserted the number of the check, date, account 
 for which payment was made, or money drawn, the amount, 
 and such other information as may assist the cashier in trans- 
 posing the payment in the Cash Book. 
 
 This book should be balanced daily. If it be not, the cashier 
 cannot prove the correctness of his balance in the Cash Book. 
 By subtracting from the sum of deposits the total amount with- 
 drawn or checked out, we shall have the amount remaining in 
 bank. This amount must agree with the balance in the Cash 
 Book. If the cashier have any money out of bank, which has 
 been entered in the Cash Book, he should add the amount of 
 the same to the balance in bank, and the sum will equal the 
 difference between the two sides of Cash account, if the latter 
 has been correctly kept. 
 
 Notes and drafts deposited for collection are entered in this 
 book, in column No. 1, when they have been collected. The 
 proceeds of notes and drafts discounted are also added to the 
 amount in bank. When the Bank Book has been written up 
 and balanced, (and, in most banks it is settled as often as once 
 a month,) the balance indicated by it must be the same as that 
 in the Check Book. 
 
 Where are moneys deposited in bank to be entered 1 When money is to be 
 drawn from bank or payment to be made by check, describe the process gone 
 throuffh. What particulars should compose the memorandum made in column 
 Nfo.21 Why should this book be balanced daily ? How is it balanced ? How 
 does the balance from the Check Book aid in balancing the Cash Bookl How 
 are Notes and Drafts deposited for collection to be entered in this book 1 How 
 are discounted notes to be entered 1 Show how the Bank Book and Check 
 Book prove each other. 
 
 BOOKS OF ORIGINAL ENTRY. 
 
 As these books are often the only means of proving indebt- 
 edness to their owners, and, consequently, of recovering nic ney 
 due them, it is important that some directions should be given 
 in regard to the manner of keeping them. Books of original 
 entry are admitted in courts of justice, as evidence of the sale 
 and delivery of goods, and of work done. But the Book-keeper 
 may be governed by certain practices which will render such 
 books inadmissible as evidence, because the nature of the books 
 may thereby become changed; they may no longer be books 
 of original entry. It is therefore necessary that certain rules be 
 observed in making original entries of sales and delivery or of 
 work done. The rules given by Dando upon this subject are, 
 first, the book in which sales, 8fc., are entered must be strictly a 
 book of original entry ; secondly, the entries must be m,ade at 
 the time they bear date; thirdly, they m,ust be inade at or near 
 the time of the delivery of the goods, or the doing of the work. 
 
 First, the books must be " books of original entry." It will 
 not do to enter sales, &c., on a slate, a piece of paper, &c., and 
 copy them into the Day Book at convenience, because there 
 would be abundant room for fraud, in the copying of such 
 entries. Hence, in wholesale or jobbing houses, it is not allow- 
 able for the Book-keeper to make out a bill for goods sold, and 
 copy the same into the Sales Book. The bill rendered, and not 
 the Sales Book, contains the original entry in that case. This 
 method is objectionable, not only on the ground that the value 
 of goods entered in this manner cannot be recovered; but be- 
 cause it may occasion disputes between the merchant and his 
 customers. Errors may be made in copying the bill into the 
 Sales Book, and as the bill has gone out of the hands of the 
 seller, the errors cannot be corrected, or the purchaser may 
 object to any alteration in what should have been the ** book 
 of original entry." If, on the contrary, the entry had been 
 made in the Sales Book, and the bill copied from it, no dispute 
 could arise in case of error in the bill, because the Sales Book, and 
 not the bill, would then be the test and standard of correctness. 
 
 Secondly, the entries must be made at the time of their date. 
 They must not be ante-dated if the Book-keeper would avoid 
 suspicion. 
 
do 
 
 BECKEKS BOOK-KEEPING. 
 
 Thirdly, the entries must he made at or near the time of the 
 delivery of the goods, or the doing of the work. They must 
 not he made when the goods are ordered, nor long after iheir 
 delivery. They must he made at or before the time of the 
 delivery. The entry for work done, however, may be made 
 after the work has been done, and the goods have been 
 delivered, because the work is entered as a single job, without 
 any such detailed description of quantities, qualities, &.C., as 
 must be made when goods are sold. 
 
 If these rules be observed no difficulty will exist in recovering 
 debts upon book account. The rules have been given, because 
 they are liable to be overlooked in practice, but they are not 
 absolutely necessary to one who is accustomed to use terms in 
 their true acceptation, for they are all contained in, and sug- 
 gested by the phrase "books of original entry.'' 
 
 Why is it important that care should be exercised in keeping books of ori^- 
 nal entry ! In what cases are these books admitted as evidence 1 What are the 
 three rules for making entries for goods sold and delivered, or for work done 1 
 Mention some ways in which entries of this kind cannot be made, and tell 
 why they cannot. Why is it improper to make out a bill for goods, and copy 
 the same into the Sales Book 1 Is it allowable to ante-date entries 1 When is 
 it improper to make entries for goods sold \ When may the entry for work 
 done be made 1 Why ? 
 
 ■4 »» > » 
 
 OPENING A SET OF BOOKS. 
 
 The first step to be taken on opening a set of books, is, to 
 make out on paper an Inventory of the property which the 
 owner of the books possesses, or of such portions of it as he 
 intends putting into trade. In this Inventory, property will be 
 arranged under some, or, perhaps, all of the following heads: 
 
 Cash, Houses and Lands, Bonds and Mortgages from other 
 
 , persons. Notes and Drafts payable to the merchant or his order, 
 
 Merchandise or other goods, Stocks in corporate companies, and 
 
 property of any description that may be in the hands of an agent. 
 
 These constitute the merchant's jSssets, Resources, or Effects. 
 
 The next step is to make a full statement or Inventory of his 
 
 debts, if there be any. In this Inventory are named the persons 
 
 to whom debts are owing, with the amount due each. The 
 
 Book-keeper should then record the amount of the merchant's 
 
 nftes passed to others, and not yet redeemed, the amount of 
 
 PERIODICAL CLOSING OF ACCOUNTS. 
 
 57 
 
 Bonds and Mortgages on his property, and the amount of his 
 acceptances for others. These are termed his Liabilities. 
 
 These two statements should be carefully examined, and, if 
 found to be correct, they should be copied neatly into the " Stock 
 and Proof Book," or on a piece of paper, and filed away. From 
 this book or sheet are made, in Dr. and Cr. form, the first entries 
 in the several Day Books, viz.: in the Cash Book, Bill Book, 
 Invoice Book, and Blotter; from these books the amounts may 
 be posted directly to the proper accounts, which are by this plan 
 introduced lor the first time in the Ledger. For examples under 
 this method, see Series III. 
 
 But, if the Journal be made the common vehicle for carrying 
 the amounts to the proper accounts in the Ledger, the entries 
 in each book are to be Journalized separately, or in connection 
 with transactions recorded in the particular book whose entries 
 are being carried to the Journal. For examples under this 
 method, see Series II. 
 
 What is the first step to be taken on opening a set of books'? Under what 
 heads is property arranged in the Inventory of the same % What does a mer- 
 chant's property constitute % What is the next step % What should be included 
 in the Inventory of debts 1 What do the merchant's debts constitute? In what 
 book should these two Inventories be copied % What is the use of keeping a 
 record of them % When the proper opening entries have been made in the 
 various Day Books, what is to be done % 
 
 |i 
 
 PERIODICAL CLOSING OF ACCOUNTS. 
 
 It is customary among merchants and accountants to set 
 apart periodical times for the closing of accounts, or " closing 
 the books," as it is termed. This process is gone through once 
 a year or oftener, according to the necessities of the case, or 
 the choice of the merchant. Its object is to acquaint the owner 
 of the books with the exact condition of his business affairs, by 
 presenting to him a concise statement of his gains or losses, 
 during the period through which his accounts extend, and ol 
 his resources and liabilities at the time of closing the books. 
 
 If the accounts, after being closed, are to be reopened in the 
 same Ledger, the process to be gone through is similar to that 
 which has been described in treating of the mode of transferring 
 Hccounts to a new Ledger. Having ascertained by the " Trial 
 
 8 
 
58 
 
 BECKER'S BOOK-KEEPING. 
 
 PERIODICAL CLOSING OF ACCOUNTS. 
 
 59 
 
 Balance" that the accounts are correct, the student should proceed 
 to close each account separately. For the sake of illustration 
 we will take those accounts which are closed with balance. If 
 the Dr. side exceed the Cr., the account must be closed " By 
 Balance" for the amount of the excess. The amounts being 
 then added together on both sides, the two sums will be equal. 
 Having thus closed the account, the work is finished by writing 
 on the Dr. side " To Balance," and placing the amount in the 
 money columns. If the Cr. side exceed the Dr., the account 
 must be closed « To Balance," and the amount transferred to 
 the Cr. side, the words « By Balance" being written before it. 
 An example of each case is appended for illustration. 
 
 Dr. 
 
 Robert Morris. Cr, 
 
 1847. 
 Jany. 12. 
 
 Fth. 1. 
 
 To Mdse. { 
 
 S 850 
 850 
 
 00 
 00 
 
 1847. 
 Jany. 19. 
 « 31. 
 
 By Sundries 
 «« Balance 
 
 9 
 
 550 
 300 
 
 850 
 
 00 
 00 
 
 00 
 
 To Balance 
 
 300 1 00 
 
 
 Dr. Samuel Walker. Cr. 
 
 1847- 
 Jany. 4. 
 
 « 18. 
 « 31. 
 
 To Bills Receivable 3 
 " Cash ^ 9 
 " Balance 
 
 800 
 250 
 500 
 
 1550 
 
 00 
 00 
 00 
 
 00 
 
 1847. 
 Jany. 2. 
 '* 16. 
 
 By Mdse. 
 
 2 
 
 8 
 
 800 
 750 
 
 1550 
 500 
 
 00 
 00 
 
 00 
 00 
 
 
 
 1 
 
 Feb. 1. 
 
 By Balance 
 
 Those accounts which have but one entry on either side need 
 not be closed, but should remain as they are. When, however, a 
 transfer of accounts to a new Ledger is to be made, they should be 
 treated like all other cases in which there is an excess on one side. 
 
 When an account balances of itself, it should be closed with- 
 out waiting for the "periodical closing of accounts." This can 
 be done by drawing red lines beneath the amounts. 
 
 Before leaving this subject, we think it important that the 
 learner should be furnished with some exposition of the princi- 
 ples involved in the directions given him for balancing accounts. 
 We have before intimated that we think it important that in a 
 science like this, the principles upon which rules are founded 
 •hould be known, because such knowledge insures facility and 
 
 promptness in the application of those rules to any case which 
 may he presented. 
 
 In the present case the reasons for the rules of balancing are 
 very simple, though their simplicity has not contributed to make 
 them more generally known either by the students or teachers. 
 We are indebted for our explanation to the article in the Dublin 
 Review, to which we have already referred. 
 
 To express accurately the views of the author of that article, 
 as well as to make the explanation more intelligible to the stu- 
 dent, we will continue his illustration of the clerks. He sup- 
 poses that at the end of the year, or when the books are to be 
 closed, a new clerk called Balance is appointed, whose duty it 
 is to go round among the other clerks for the purpose of settling 
 with them their accounts with the merchant, and of collecting 
 from them the amounts in which they stand indebted to him. A 
 few examples will illustrate these remarks. 
 
 Let us suppose that the clerk who has charge of Cash account 
 has received during the year S2,000, and paid out during the 
 same time v^l,700. When "Balance" comes round and desires 
 him to present his account, it is ascertained that he (Cash) is ac- 
 countable for |>300. In order therefore to close his account, he 
 must deliver to "Balance," who is the agent of his employer, 
 the $300 remaining in his hands. When "Balance" receives the 
 amount, "Cash" debits "Balance," and credits himself for the 
 amount. Hence, the closing entry of " Cash" will be " By 
 Balance |>300." 
 
 Again, suppose the clerk in charge of Merchandise account 
 be required to settle with Balance. He finds upon examination 
 that the amount of the Dr. side of his account or the amount of 
 goods purchased is $1,000, and that the amount of the Cr. side, 
 or of the goods sold is .$400. Upon taking an account of stock, 
 valuing the goods on hand at cost prices, he finds that the value 
 of the goods unsold, for which he is accountable, is $800. He 
 clears himself of this accountability by delivering that amount 
 to " Balance," debiting Balance and crediting himself for the 
 same. Hence, on the Cr. side of the account he writes "By 
 Balance $800." But we are not yet done with this account. 
 It will be observed that the Merchandise clerk received goods 
 to the amount of $1,000, and sold a certain portion of them 
 which cost $200, thus keeping a balance of $800 worth ou 
 hand. But he sold for $400 the goods which cost $200 
 
»a'j-"#":s: 
 
 60 
 
 B£CK£R'S BOOK-KEEPING. 
 
 Therefore he sold them at $200 profit. Hence " Profit and Loss* > 
 
 must get credit for $200, and Merchandise is Dr. for that amount 
 
 We have before explained the office of "Profit and Loss;'' wo 
 
 will merely state, therefore, that in the case before us, the 
 
 closing entry on the Dr side will be "To Profit and Loss $200." 
 
 Balance must be debited for the amount of goods on hand (|>S00,) 
 
 and hence, in no other way can the account be made to exhibit 
 
 a true statement of affairs, than by crediting "Profit and Loss'' 
 
 for the gain. This will be the more evident when we considei 
 
 that the Merchandise clerk receives no Cash for the goods. The 
 
 receiving of money belongs to the Cash clerk's department. 
 
 Merchandise therefore is accountable only for the goods that he 
 
 has sold, or for the amount which they cost. The profit on the 
 
 goods sold is therefore to be considered in the same light as 
 
 money that has been found or received as a gift. 
 
 We will next take for illustration a personal account. We 
 will suppose that the clerk in charge of Smith, Jones & Co's. 
 account be called upon by Balance to settle the same. Upon 
 examining the account, he finds that during the year the amount 
 of S. J. & Go's, debts to him as the agent of his employer, to be 
 $2,500, and the amount of their credits Hi, 500. The amount 
 still due by that firm is therefore gflOOO. The clerk in charge 
 of the account is responsible for this amount. He rids himself 
 of the responsibility by delivering his claim upon said firm to 
 "Balance." He must get credit for this transfer; hence, "Ba- 
 lance" becomes his debtor, and the account is closed by the 
 following entry: "By Balance ig^lOOO." 
 
 Let us suppose, however, that the account of the same firm to 
 stand thus: amount of debits |5l,500; amount of credits $2,500; 
 leaving the clerk indebted to the firm in the sum of .^1000. Thb 
 clerk can settle his account in no other way than by ac* 
 knowledging his indebtedness; hence, he becomes Dr. to Ba- 
 lunce, and the closing entry will be "To Balance ig^lOOO." 
 
 We think that the explanations which we have given, or 
 rather those which we have adopted, render the subject sufiS 
 ciently clear to the student. 
 
 What is the purpose of the periodtcai clostng (f accounts? What method is 
 to be adopted when the accounts are to be reopened in the same Ledger, after 
 being closed 1 How is an account closed into Balance when the Dr.^hide ex- 
 ceeds the Cr.1 When the Cr. side exceeds the Dr.l What is said of those ac- 
 counts that have but one entry on k **»er side 1 
 
 INTRODUCTORY EXAMPLES.— FIRST SERIES. 
 
 61 
 
 INTRODUCTORY EXAMPLES. 
 
 FIRST SERIES. 
 
 The examples under this head are designed to be used pre- 
 paratory to those appropriated for a practical course. They will 
 serve as a mental exercise for the learner, and will initiate him 
 into the technical expressions and forms used in making Day 
 Book entries in Journal form, which are usually denominated 
 Journal entries. They will also illustrate what in mercantile 
 phraseology is termed "opening a set of books,'' 
 
 We commence this set of examples by giving a statement of 
 ^property and debts, which the student is to assume as his own. 
 
 When trading oxs. his individual account, " Stock" stands in 
 place of the merchant's name. It is to be debited for all his 
 liabilities or debts y and credited for all his property or resources. 
 It is therefore his principal account. 
 
 In the Inventory which follows. Cash and Commercial Bank 
 Stock are the debtor titles for the resources, and they are de- 
 rived from the property which they represent. In the article on 
 " Debtor and Creditor," we have said that all accounts repre- 
 sent the owner of the books as principal, and act in the capacity 
 of agents. 
 
 We have seen that "Stock," which represents the merchant 
 as his principal agent, is debtor for the whole amount of our 
 liabilities in commencing trade; hence the creditors must be the 
 individuals or parties to whom we are indebted, or the accounts 
 representing our obligations. Each of these accounts is creditor 
 for its respective share, and the total of these shares must equal 
 the amount of the debit. 
 
 i( 
 
 I 
 
 ; 
 
 What is tlie desi^ of the " Introductory Examples V How is this series of 
 examples commenced ? How is the inventory disposed of? What does '* Stock** 
 represent % What are entered on its Dr. side, and what on its Cr. side % What 
 do all accounts represent? Show then the propriety of the entries which arv 
 made for cuteta and liabilitiea, 
 
 F 
 
' 
 
 62 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, January 2d, 1847. 
 
 Stock and Proof Book. 
 
 Schedule of my Property, including a statement of my Debts, viz.: 
 
 Remurees, 
 
 Cash, as per dep. in Farmers & Mechanics Bank, . . . 2,000,00 
 Commercial Bank Stock, 20 shares, par value $50 per share, 1,000.00 
 
 IdabiUtiat. 
 
 I owe to Joseph Perkins, 125 oo 
 
 do, onmyaotetoWm-Sterling, at3moe.,duell— Uinst, 276'oO 
 
 Transactions. — January 3d, 1847. 
 
 Bought of Samuel Morton, for Cash, 
 
 600 Bus. Wheat, net 487^, . . • • «t . . . . 94 cts. 
 
 -6 
 
 Bought of Robert Clayton, on account, 
 
 200 Bbls. S'fine Flour, it ... . $4,75, 
 
 -8- 
 
 Sold to John Wood, for his note at 30 days, 
 
 300 Bus. Wheat, net 295, . . . . at $1, . . . 295.00 
 100 Bbls. S'fine Flour « 4,87^. . 487,50 
 
 -10- 
 
 Bought of George Rodgers, 
 
 20 Bbls. Mess Beef, at $8 . . . $160,00 
 
 6 Hhds. Hams, net 5462 lbs., . . « 7^ cts, . . 409,65 
 Delivered in Payment, ' " 
 
 My note at 60 days, , 4Q0 qq 
 
 Cash for balance, 169 65 
 
 669,65 
 
 I4u 
 
 Sold to Biddle & Co. 
 
 10 shares Commercial Bank Stock, par value $50 each, 
 
 at . . $53,50 . . . $535,00 
 
 Beeeiped in Payment, 
 
 My note, Wm. Sterling's favour, now due, .... 275,00 
 Cash for balance, , 260 00 
 
 3,000 
 
 400 
 
 OC 
 
 00 
 
 458 
 
 950 
 
 25 
 
 00 
 
 782 
 
 569 
 
 50 
 
 65 
 
 53500 
 
 I 
 
 INTRODUCTORY EXAMPLES.— FIRST SERIES. 
 [journal entries.] 
 
 63 
 
 Philadelphia, January 2d, 1847. 
 
 1. 
 
 1 
 1 
 2 
 
 1 
 
 3 
 1 
 
 Sundries Dr. To 
 
 for amount of my resources, . . • 
 
 Cash, 
 
 for my cash capital, 
 
 Commercial Bank Stock, 
 
 for 20 shares, par value $50 each, . 
 
 Stock, 
 
 2 
 
 T 
 
 2 
 ¥ 
 
 1 
 2 
 
 .// . 
 
 Stock Dr. To Sundries, 
 
 for amount of my Uabilities, ...••... 
 
 To Joseph Perkins, 
 
 for amount due him, 
 
 To Bills Payable, 
 
 for my note, favour of Wm. Sterling, at 3 mos , due 11 
 — 14th inst. , 
 
 3 
 
 Dr. To 
 
 Merchandise 
 
 paid Samuel Morton, 
 
 for 500 Bus. Wheat, net 487^ 
 
 O 
 
 Cash, 
 
 . 94 c 
 
 6 
 
 Merchandise Dr. To Robert Clayton, 
 
 for 200 Bbls. S'fine Flour, . . . . O . . 4,75 
 
 8 
 
 Bills Receivable Dr. To Merchandise, 
 
 for sales to John Wood on his note at 30 days, . 
 300 Bus. Wheat, net 295, ... (2) ... $1 
 100 Bbls. S'fine Flour, .... « . . 4,87^ 
 
 10 
 
 Merchandise Dr. To 
 
 for purchase of Geo. Rodgers, 
 
 20 Bbls. Mess Beef, . . . O $8 , 
 
 5 Hhds. Hams, net 5462 lbs., " 7| e. 
 
 To Bills Payable, 
 
 for my note at 60 days, • • • • • 
 
 To Cash, 
 
 for balance, ... .••••• 
 14 
 
 Sundries, 
 
 . $160,00 
 409,65 
 
 1 
 1 
 
 Sundries Dr. To Com. B'k Stock, 
 
 for sales to Biddle & Co., 10 shares, par value 
 
 $50 each, & . , $63,50 
 
 Bills Payable, 
 
 for my note, Wm. Stirling's fav. due, 
 
 Cash, 
 
 for balance, ••.... 
 
 Carried forward. 
 
 2000 
 1000 
 
 400 
 
 458 
 
 950 
 
 295 
 
 487 
 
 569 
 
 275 
 
 260 
 
 6695 
 
 OC 
 00 
 
 OC 
 
 25 
 
 00 
 
 00 
 51 
 
 65 
 
 00 
 
 00 
 
 3000 
 
 00 
 
 125 
 
 275 
 
 00 
 
 00 
 
 458 
 
 950 
 
 25 
 
 00 
 
 782 
 
 50 
 
 400 
 169 
 
 00 
 65 
 
 535 
 
 00 
 
 40 
 
 6695 
 
 40 
 
I 
 
 i: 
 
 It 
 
 64 
 
 BECKER»S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, January I6th, 1847. 
 
 Sold to Joseph Perkins, 
 
 50 BbU. S'fine Flour, .... at $5, ... . 250,00 
 
 10 " Mess Beef, ..... «• 8,50. . . . 85,00 
 
 3 Hhds. Hams, net 3340 lbs., . . « 10 c . . . 334,00 
 
 Received in Payment, 
 
 His receipt for a balance due him on account, . . . 125,00 
 His Draft on Robt Clayton, at sight, which is accepted 
 
 on accoumt, . 400,00 
 
 C&sh for balance, 144,00 
 
 669,00 
 
 26 
 
 Received Cash, for dividend on 10 shares Commercial Bank 
 
 Stock, 
 
 . -26 
 
 The Farmers and Mechanics* Bank has discounted John 
 Wood's note in my favour, due Feb. 7 — 10, amount 
 $782,50, 
 
 Discount off, on do, 16 days, 2,09 
 
 Cash, passed to my credit, 780,41 
 
 28 
 
 Paid to Robert Clayton, the balance of his account m Cash, . . . 
 
 , —31 
 
 Paid Cash this month as per Expense Book, viz.: 
 
 Store Expenses, 15,00 
 
 Clerk's hire, 30.00 
 
 House expenses, .... • 50,00 
 
 66& 
 
 20 
 
 782 
 
 550 
 
 95 
 
 00 
 
 00 
 
 50 
 
 00 
 
 00 
 
 INTRODUCTORY EXAMPLES.— FIRST SERIES. 
 
 [journal entries.] 
 
 65 
 
 Philadelphia, January I6th, 1847. 
 
 Brought forward. 
 
 Merchandise, 
 
 (9 $5 . . 
 
 «* 8,50 . 
 « 10 c. 
 
 Sundries Dr. To 
 
 for sales to Joseph Perkins, 
 50 Bbls. S'fine Flour, . . , 
 10 " Mess Beef, . . 
 3 Hhds. Hams, net 3340 lbs., 
 
 Foseph Perkins, 
 
 for balance of his account, 
 
 Robert Clayton, 
 
 for his acceptance of Joseph Perkins's Draft 
 at sight, on account, ........ 
 
 Cash, 
 
 for balance, ••.••..... 
 
 250,0( 
 
 85,0( 
 
 334,0( 
 
 . . . 
 
 25 
 
 Cash Dr. To Com. B'k Stock, 
 
 received dividend on 10 shares, 
 
 26 
 
 Sundries Dr. To Bills Receivable, 
 
 for John Wood's note, my fav., due Feb. 7 
 — 10, discounted at the Farmers & Me- 
 chanics' Bank, 
 
 Interest, 
 
 for 16 days discount on do 
 
 Cash, 
 
 for net amount passed to my credit, ..... 
 
 28 
 
 Robert Clayton Dr. To 
 
 paid him Uie balance of his account. 
 
 Cash, 
 
 81 
 
 Expense Dr. To Cash, 
 
 for this month's disbursements as per Ex- 
 pense Book, 
 
 6695 
 
 12; 
 
 400 
 144 
 
 20 
 
 2 
 
 780 
 
 550 
 
 95 
 
 8811 
 
 40 
 
 0(1 
 
 00 
 00 
 
 00 
 
 09 
 
 41 
 
 00 
 
 00 
 
 9P 
 
 6695 
 
 40 
 
 609 
 
 20 
 
 782 
 
 550 
 
 95 
 
 8811 
 
 00 
 
 00 
 
 50 
 
 00 
 
 00 
 
 90 
 
 V2 
 
 9 
 
 .>; 
 
 II 
 

 66 
 
 BECKER'S BOOK-KEEPING. 
 
 DIRECTIONS FOR THE INTRODUCTORY SERIES. 
 
 For the purpose of copying the transactions contained in the 
 Introductory set, let the student prepare a sheet of paper by 
 ruling it with double money columns on the right, and a narrow 
 margin on the left hand side. Having copied the examples, let 
 him rule in the same manner another sheet, on which he should 
 copy from the first sheet the same entries in Journal form. This 
 form is exemplified on the pages opposite to the transactions 
 which belong to this series. In proceeding with this exercise, 
 he must make use of the forms and expressions contained in the 
 Journal page, and he must so apply the rules for Journalizing, 
 that he will be able to see in every case why such an account is 
 made Dr., and such a one Cr. He must also notice that the 
 amount of the creditor or creditors in each instance is equal to 
 that of the debtor or debtors. 
 
 The student should continue this copying exercise till he is 
 able, without assistance from books or from his teacher, to make 
 correctly, in Journal form, all entries arising from the examples 
 constituting his copy of transactions. 
 
 Having completed satisfactorily his work, according to the 
 foregoing directions, he should proceed to prepare his Ledger. 
 Let him rule a sheet of paper in Ledger form, appropriating one 
 third of a page to each account. The number and arrangement 
 of the perpendicular columns may be seen by referring to the 
 Ledger forms in this work. We have elsewhere stated that the 
 purpose of this book is to show, under the several heads termed 
 Ledger captions, or titles of accounts, the cost incurred on each 
 account, or its obligation to the person who keeps it, and the 
 amount each has produced, or his obligation to it. The left 
 hand side of the Ledger page, or Dr. side, shows the former, and 
 the right hand, or Cr. side, the latter. To make the Ledger 
 serve for this purpose, entries must be made in this book, in ac- 
 cordance with those made in the Journal, or in other words, 
 care must be taken to do what is technically termed posting up 
 the accounts. 
 
 EXAMINATION Or THE LEDGER. 67 
 
 POSTING. 
 
 The directions necessary for posting are the following: — In 
 the date column, on the Dr. side of the account, write the date 
 of the transaction. In the second, or title column, write the 
 word " 7b," and add the title of the Cr. caption in the Journal 
 entry. In the narrow column next before the money columns, 
 place the figure denoting the Journal folio from which the item 
 was brought. Place, in the money columns, the sum for which 
 the account is Dr.; and, lastly, place in the first, or margin 
 column of the Journal, the folio of the Ledger account. 
 
 The accounts credited in the Journal have entries made on 
 the Cr. side of the Ledger account in the same manner as those 
 on the Dr. side, with this exception, that instead of writing " Tb," 
 we write ''By," and add the Dr. caption of the Journal entry. 
 By this method no posting will occupy more than one line; all 
 explanations are to be excluded from the Ledger. 
 
 What preparation must be made for copying the transactions ot this senes? 
 What is the purpose of the second sheet which the student is to rule ? What 
 is required of the student in proceeding with this exercise t Hoa<^ long is it 
 necessary for him to continue the copying exercise ? How is the Ledger to be 
 ruled ? What is the purpose of the Ledger 1 What does the Dr. side of each 
 account in the Ledger show I What the Cr. side! Give the directions ne- 
 cessary for posting the items debited in the Journal. Do the same for those 
 credited. 
 
 ,ii 
 
 ;1 
 
 • M 
 
 « m» ^ *- 
 
 EXAMINATION OF THE LEDGER. 
 
 The posting being finished the next duty is to examine the 
 Ledger entries, and carefully compare them with those of the 
 Journal, from which they are derived. In real business, in 
 order that this operation may serve for the purpose of detecting 
 errors that may exist in the postings, it is proper that one per- 
 son should take the Ledger, and another the Journal. Let the 
 latter person read off the folio of the Ledger account, the title 
 of the account to which it is Dr., or by which it is Cr., and the 
 amount; then let the former person examine the Ledger entry, 
 and, if it be correct, let him, with a lead pencil, mark on the 
 
 
63 
 
 BECKER'S BOOK-KEEPING. 
 
 double red line of the money column, this mark ( %/' ) and place 
 a similar mark before the item thus examined in the Journal. 
 
 This operation will bring to light such mistakes as do no^ 
 affect the Trial Balance y a,nd do not disturb the equality which 
 should exist between the monthly aggregate of the Ledger 
 debits and credits, and that of the Journal debits and credits. 
 The following are errors of this nature — 
 
 1. A sum posted to a wrong account, but on the same side 
 of the Ledger as that to which it belongs. 
 
 2. A Journal entry posted twice, and the posting of another 
 Journal entry of the same amount omitted. 
 
 All mistakes should be corrected immediately after theii 
 discovery. 
 
 What is to be done when the posting is finished 1 How is this work per- 
 formed in real business? What is its usel Mention the kinds of error that 
 may be detected by this examination. At what time should errors be cor- 
 rected 1 
 
 ■■ - ♦ # ♦ » 
 
 CORRECTION OF ERRORS. 
 
 1. If a Journal item or whole entry has been omitted, post 
 it on the first vacant line of the Ledger account, with the proper 
 date and folio, and, after the posting, write the word " omittedy^* 
 so that the consequent derangement in the order of the dates 
 may be accounted for. / 
 
 2. If an item has been posted to a wrong account, or to the 
 wrong side of an account, make ciphers of the figures, and 
 let the remainder of the entry stand, so that the Ledger will 
 not be defaced, then post the entry in its proper place. Or, the 
 error may be corrected thus : if the wrong entry be on the Dr 
 
 side, write on the Cr. side, " By error other side, $ ;" or, if it 
 
 be on the Cr. side, write on the opposite side, " To error other 
 side 1$ ;" then post the entry in its proper place. 
 
 3. If a wrong amount has been posted, correct the amount, 
 or resort to the method just explained. 
 
 A, If a duplicate posting has been made, make ciphers of 
 the figures in the erroneous one. 
 
 5. If, in postings a wrong title has been written in the title 
 
 PROOF OF THE LEDGER. 
 
 69 
 
 column^ alter the title, or draw a line under it with red ink, to 
 denote that it is incorrect, and let it stand. ^ 
 
 An error in Journalizing should generally be corrected by an 
 entry in the Journal; sometimes an alteration is allowable. 
 
 An erroneous entry in the books of original entry should be 
 ;orrected by another entry, or, if not Journalized, it may be 
 iirjitten across thus — " Error" or "Void.'* 
 
 How should the error be corrected when a Journal item, or a whole entry 
 nas been omitted ? How when an item has been posted to a wrong account, 
 or to the wrong side of an account? How when a wrong- amount has been 
 posted ? How when a duplicate posting has been made ? How when a wrong 
 title has been written in the title column? How should an error in Journaliz- 
 ing generally be corrected 1 In what ways may an erroneous entry in the book« 
 •f original entry be corrected I 
 
 - ♦ • • » 
 
 PROOF OF THE LEDGER. 
 
 Having compared the Ledger with the Journal, and corrected 
 all errors that have been detected by that examination, the 
 learner will perhaps conclude that the Ledger is perfectly cor- 
 rect, and therefore needs no further proof. But he should not 
 be too confident. It is necessary that the correctness of the 
 Ledger should be still further tested. 
 
 Once a month, therefore, a proof of the Ledger should be 
 taken, to ascertain whether the amount of debits is equal to the 
 amount of credits that have been posted; or, in other words, 
 whether the whole Ledger balances. If the Ledger be correct, 
 the general footing of both sides of it must be equal to that in 
 the Journal. 
 
 For the purpose of taking this proof of the Ledger or Trial 
 Balance, as it is more frequently called, add up the sums on 
 the Dr. side of each account in the Ledger, and place the sum 
 to the left of the money column, with a pencil. Do the same 
 on the Cr. side of each account. Then prepare a sheet of paper 
 in the following form, on which, copy from the Ledger, all the 
 accounts in their regular order, with their Ledger folios preced- 
 ing them, and their respective total debits and credits following 
 them. The following is the form. 
 
 
 Ii 
 
u 
 
 70 
 
 UJ^'UKiiRS UUU&.KJiIEPING. 
 
 TRIAL BALANCE. 
 
 Ledger 
 FoUo. 
 
 Titles of Accounts. 
 
 Monthlv Dr. 
 Totals. 
 
 Monthly Cr. 
 Totals. 
 
 
 
 
 
 
 
 Having completed the transcript from the Ledger, add up the 
 amounts in the money columns; if the Ledger be correct, and 
 no errors have been committed in copying, the total on both sides 
 will be the same. 
 
 As the " Trial Balance" involves the principle of equilibrium 
 between the Drs. and Crs. in every Journal entry, it is evident 
 that if every item be correctly posted, the sum of the debits in 
 the Ledger must be equal to that of the credits. If this equality 
 does not exist, a mistake has been made in the posting. It is 
 then iic^^essary to ascertain on which side lies the mistake, in 
 order that the same may bt; detected. This can be ascertained ; 
 because, if the Journal has been correctly footed in every page, 
 and the footings have been carried forward fron^ page to page, 
 to the end, (which operation is, by some persons, often neglected 
 in actual business,) the total footings of the " Trial Balance," 
 if correct, must agree with those of tiie Journal. That side of 
 the " Trial Balance," therefore, which differs in its aggregate 
 amount from the same- side of the Journal, points out to us the 
 side of the Ledger which contains the error. 
 
 The "Trial Balance" then should prove, not only that the 
 postings of the Drs. and Crs. are equal in amount, but also, that if 
 all the amounts in the Ledger have been included in it, no entry 
 has been overlooked in posting, and none has been twice posted. 
 
 If the Journal be not thus used as a check upon the Ledger, 
 it may be a work of great labour to ascertain where error exists. 
 The apparent amount of error as exhibited by the "Trial 
 Balance" may be but a few cents ; still, this is an error which 
 must be corrected. In re-examining the postings with a view 
 of detecting it, it frequently happens that the apparent diflference 
 is not the real difference, but that the former increases as we 
 proceed, and thus exhibits the necessity of obtaining an equality 
 in the amounts of the two sides. When the difference between 
 tnc two sides of the " Trial Balance" consists in the increase 
 of anv figure on one side by unity, over the corresponding 
 
 INVENTORY. 
 
 71 
 
 figure on the other, it will generally be found that the error is 
 in the addition of the columns; but where the amounts difler in 
 several figures, the error may be referred either to the posting, 
 or to the copying from the Ledger to the « Trial Balance." As 
 all this, however, is mere conjecture, it is necessary that the 
 whole should be re-examined. 
 
 What additional precaution should be taken to insure the correctness of the 
 Ledger 1 What is the special object of a proof of the Ledger? What is the first 
 step in taking a proof of the Ledger, or Trial Balance ? Describe the form of 
 the Trial Balance Sheet. Show how it is used. What is the principle upon 
 which it is based 1 If an error has been made in the posting, what is the first 
 Btep towards correcting it ? How can we ascertain on which side it is 1 What 
 then will a correct Trial Balance prove ? Show the importance of using th« 
 Journal as a check upon the Ledger. Is it advisable to rely upon mere con- 
 jecture in relation to the seat of error ? 
 
 ill 
 
 INVENTORY. 
 
 The validity of the Ledger accounts having been established 
 by the test of the " Trial Balance," the student is prepared to 
 proceed with confidence to ascertain the profits or losses that 
 have accrued from the business. 
 
 For this purpose he must take what, in mercantile phraseology, 
 is called " An Account of Stock," or, in other words, make out 
 an Inventory or Statement of all the property remaining ou 
 hand unsold. In actual business this is usually made in the 
 « Stock Book" by reference to the goods in the store, and in the 
 importing business, the account of stock is afterwards compa^^d 
 with the books. 
 
 In this series we depend upon the books for making the In 
 ventory. To make it correctly, the student should comply with 
 the following direction :— Take a single piece of paper and divide 
 it by a vertical line in the centre ; then turn to the account of 
 Merchandise in the Ledger, and from each debit item refer to 
 the Journal, in order to ascertain the gross and net quantity of the 
 goods purchased, with the cost prices of the same. Place these 
 on the left hand side of the paper. The several amounts of 
 goods sold, with their selling prices, can be ascertained in the 
 same manner; these are to be recorded on the right hand side 
 of the paper. This part of the work being finished, take up the 
 first article mentioned, and deduct the total gross and net quan- 
 
 I 
 
72 
 
 BECKER'S BOOK-KEEPING. 
 
 BALANCING AND CLOSING THE LEDGER. 
 
 73 
 
 tity of the sa es of this article from the gross and net quantity 
 of the purchasers of the same. In this manner proceed with 
 every article of purchases and sales contained in the paper. The 
 excess of the purchases over the sales, in each case, constitutes 
 the balance of the article on hand. These balances should be 
 entered on another piece of paper, in the following manner: 
 
 Philadelphia, Januray 31*/, 1847. 
 
 
 Inventory of property remaining on hand 
 unsold, taken this day, viz: 
 Merchandise, 
 
 200 Bus. Wheat, net 192^ 94c 
 
 50 Bbls. S'fine Flour, $4,75 
 
 10 « Mess Beef, 8,00 
 
 2 Hhds. Hams, 2122 lbs., T^c. 
 
 Commercial Bank Slock, 
 
 10 shares, par value $50 each, ....... 
 
 180 
 
 237 
 
 80 
 
 169 
 
 96 
 60 
 00 
 15 
 
 657 
 
 500 
 
 60 
 
 00 
 
 1157 60 
 
 All representative accounts arising from effects or property, 
 and which are kept for the purpose of showing gains or losses, 
 must be examined in the same manner as merchandise account. 
 The property unsold constitutes the " Balance^^ of such ac- 
 counts, and it must be entered in the Inventory for its cost or 
 present worth. 
 
 When the Ledger has been ascertained to be correct, what is the next work 
 to be done 1 How is it commenced 1 What is meant by an account of stock? 
 Hfw is it taken in actual business ? How in this series ? Give the directions 
 to be observed preparatory to making an Inventory of the property on hand 
 unsold 1 How is the amount of the various kinds of property on hand ascer- 
 tained by this means? Describe the form of the Inventory. How is the 
 property on hand to be valued in the Inventory! 
 
 « • • • > 
 
 BALANCING AND CLOSING THE LEDGER. 
 
 Having finished the Inventory, and proved its correctness, 
 the student is prepared to determine the gains and losses that 
 have accrued in the course of trade. Let him refer, first, to 
 those accounts which have been examined in making the In- 
 ventory, and which show balances or effects; and, then, to thosft 
 ^which are closed into " Profit and Loss" for the difference. 
 
 The first account, then, which we take is Merchandise. In this 
 series, the Dr. side shows, for purchases, Si, 977,90, and the Cr. 
 side,for sales, $1,451.50. Add to the latter amouat, in lead pencil, 
 |i657.60, for value of goods unsold, and deduct from the sum the 
 whole outlay. The difference, {$131.20) is the gain on the goods 
 sold. 
 
 The same result can be obtained in another way. By de- 
 ducting the value of the goods on hand from the amount of 
 purchases, the cost of the goods that have been sold will be ob- 
 tained. The difference between this and the amount for which 
 they were sold will be the gain. Thus, 
 
 1. The purchases are ig>l,977.90 2. Amount of sales $1,451.50 
 Deduct goods on hand 657.60 Deduct cost 1,3^20.30 
 
 Cost of goods sold $1,320.30 Gain, as before $131.20 
 
 The gain on " Commercial Bank Stock" is to be examined 
 in the same way, and all accounts of the same nature, such as 
 Real Estate, Ships, Railroad and Navigation Stock, Shipments 
 or Adventures, and Speculation accounts are adjusted in a like 
 manner. In all these cases the present value of the property 
 unsold is the " Balance" of the account, and must be entered on 
 and added to the Cr. side. The difference between the sides is 
 the gain, when the Cr. side exceeds the Dr., which difference 
 must be added to the Dr. side. If, however, the Dr. side exceed 
 the Cr. th6 difference is the loss, and it must be added to the Cr., 
 side. When no returns have been received from the property, 
 the total of the Dr. side is the Balance. 
 
 At every general Balance the account of Expense, Interest, 
 and all others of a like character, are to be closed into " Profit 
 and Loss," for the difference between the two sides. 
 
 Cash, Bills Receivable, and Bills Payable represent the 
 mediums employed in all trading operations, and the personal 
 accounts represent the business on credit. The difference be 
 tween both sides, in all these accounts, constitutes either effects 
 or debts, and the accounts are therefore closed " To" or ** By 
 Balance," as the case may be. 
 
 Before making the closing entries in the Ledger, a "Balance 
 SheeV^ must be taken. For this purpose rule a sheet of paper, 
 and head it as in the following form. 
 G 10 
 
 I 
 
 1 
 
74 
 
 W 
 
 w 
 
 K 
 
 w 
 
 o 
 
 < 
 
 •\ 
 
 w 
 
 Q 
 D 
 
 O 
 
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 BECKER'S BOOK-KEEPING. 
 
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 ^^ ^« « «• v€ i# '^ ^ v3 3 
 
 DIRECTIONS FOR THE BALANCE SHEET. 75 
 
 The following are the directions for the "Balance Sheet;'* 
 
 Having ruled the "Balance Sheet" according to the above 
 form, copy into it the Trial Balance, placing the amounts of each 
 account in the columns headed "Face of Ledger;'' then, enter 
 the estimated value of the property unsold, as per Inventory 
 Book. These amounts are to be entered with red ink in the 
 column marked "Property unsold," and opposite the title of the 
 account to which they respectively belong. In the " Profit and 
 Loss" columns, place the amounts of the gain or loss on the 
 several accounts. Take from the Ledger the balances of all the 
 accounts that close into Balance. Insert the difference of both 
 sides of Stock in the "Stock" columns as above, and the Ba- 
 lance of all other accounts except Profit and Loss, in the Ba- 
 lance column. The amounts of the Balance of those accounts 
 which are closed "To Balance" in the Ledger, are inserted on 
 the Cr. side of the Balance column, in the Balance Sheet, and in 
 those accounts which are closed "By Balance," it is inserted on 
 the Dr. side of the Balance column^ opposite the title of the ac 
 count. 
 
 Being thus prepared to close the Balance Sheet, add up the 
 Dr. and Cr. side of Profit and Loss column, placing the amounts 
 as above, and close it for the diflference, into Stock. Add up the 
 Dr. and Cr. sides of Balance column, placing the amounts as 
 above, so as to show the total resources and liabilities. Close 
 this column into Stock, for the difierence, which must prove 
 equal to the Balance of Stock. Balance the Stock column in 
 the same way, and, if it prove correct, the Balance Sheet is 
 finished. For all these closing entries, corresponding entries 
 must be made in the Journal, and posted to the proper accounts 
 in the Ledger. 
 
 We give here the closing entries in the Transactions and 
 Journal, as obtained from the preceding Balance Sheet. Our 
 object in separating them from the other entries in these books 
 is that the student may not be induced to copy them before 
 reading the explanations and directions. 
 
76 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, January 31*/, 1847. 
 
 Statement of Closing Entries, 
 
 On examination of the Balance Sheet, I find that the following ac- 
 counts have produced gains, the net amount of which is. $186,li0 
 
 Merchandise, 
 
 Amount of sales being . , $1451,50 
 
 Balance of goods remaining on hand valued 
 
 as per Inventory, 657,60 $2109,10 
 
 Amount of cost being ~~, ^i '. 1977 90 
 
 Commercial Bank Stock, '- 
 
 Amount of Cr. side being $555,00 
 
 Balance of 10 shares remaining on hand as 
 
 per Inventory 500,00 $1056,00 
 
 Amount of Dr. side being . "I I ! 1000,00 
 
 The same Sheet exhibits losses on the following accounts, amounting 
 in all to $97,09 
 
 Interest, 
 
 Expense, 
 
 Profit & Loss prc«iont8 a balance in favour of Stock, for this amount, 
 being the total net gain of my business this month, 
 
 13120 
 
 65 
 
 00 
 
 2 
 95 
 
 89 
 
 09 
 00 
 
 11 
 
 CLOSING ENTRIES— FIRST SERIES. 
 
 [journal entries.] 
 
 Philadelphia, January 31^/, 1847. 
 
 Sundries Dr. To Profit & Loss, 
 
 for gains on the following accounts amounting to . 
 
 Merchandise, 
 
 for gain on this account, 
 
 Commercial Bank Stock, 
 
 for gain on this account, . 
 
 Profit & Loss Dr. To Sundries, 
 
 for losses on the following accounts amounting to . 
 To Interest, for losses on this account, .... 
 
 To Expense, *« « « « .... 
 
 Profit & Loss Dr. To Stock, 
 
 for total net gain of my business this month, . . 
 
 131 '20 
 
 55 
 
 97 
 
 89 
 
 00 
 
 09 
 
 11 
 
 G2 
 
 T7 
 
 186 
 
 2C 
 
 2 
 95 
 
 89 
 
 I 
 
 09 
 00 
 
 11 
 
 L 
 
 1 i 
 
■VQ 
 
 BECKER'S BOOK-KEEPING. 
 
 The learner will now balance all the accounts in the Ledger 
 according to the "periodical form of balancing accounts," and 
 for directions for the same he should consult the article on that 
 subject. 
 
 In proceeding to ascertain tl^e gains or losses en the various accounts, what 
 order should be adopted 1 What account is taken first 1 How is the gain on 
 this account ascertained 1 Name some of the other accounts that are to be ex 
 amined in the same way. In all these accounts on which side must the Ba 
 ianee of property on hand be entered 1 How can we tell whether an account 
 has produced a gain or loss 7 How are these accounts to be balanced when 
 the gain or loss has been ascertained ? What accounts besides those already 
 named are closed into Profit and Loss 1 What accounts are closed into Ba- 
 lance? Whyl Before making the closing entries in the Ledger, what is to 
 be done 1 Describe the form of ruling the Balance Sheet. Describe the use 
 of the first three columns. What is the use of the " Property unsold" column, 
 and how are the amounts to be entered in iti How is the " Profit and Loss" 
 column to be used 1 The " Stock" column 1 The ** Balance" column 1 When 
 the Balance Sheet has been filled up, what column should the student close 
 first? How is it to be closed 1 What column is next to be closed, and how t 
 What is the last column to be closed 1 Into what is it closed 1 How do the 
 closing entries of Stock and Balance check each other? When the Balance 
 Sheet has been closed, what is to be done ? 
 
 How is it proposed to illustrate the principles upon which the directions for 
 haianetng are founded? What duty is assigned to the clerk denominated " Ba- 
 lance ?" Describe the relations that arise between him and ** Cash." De- 
 scribe from this the closing entry of Cash account Show the relations that 
 exist between " Balance" and " Merchandise." Derive from them one of the 
 closing entries of Merchandise account. W^hat is the business of " Profit and 
 Loss" with clerk? What then is the other closing entry of Merchandise ac- 
 count ? Take for illustration d, personal account in which the Dr. side exceeds 
 the Cr. and show the application of the principles that have been laid down 
 Take the same «ccount with the Cr. side exceeding in amount the Dr. 
 
 LEDGEK. 
 
 79 
 
 LEDGER TO THE INTRODUCTORY SERIES. 
 
 1. 
 Dr. Stock. Cr, 
 
 1847. 
 Jany. 2. 
 « 31. 
 
 To Sundries 
 « Balance 
 
 1 
 
 r 
 
 400 00 
 
 2689 11 
 
 1 
 
 1847. 
 
 Jany. 2. By Sundries 
 
 « 31. « Profit 6l Loss 
 
 1 
 
 1 
 
 1 
 
 1 
 3 
 
 3000 
 89 
 
 00 
 11 
 
 3089*11 
 
 Feb. 1. 
 
 
 3089 11 
 
 
 
 
 By Balance 
 
 268911 
 
 Dr. Cash. Cr. 
 
 1847. 
 Jany. 2. 
 
 « 14. 
 
 « 16. 
 
 « 25. 
 
 « 26. 
 
 Feb. 1. 
 
 To Stock 
 « Com. B'k. Stock 
 « Mdse. 
 
 « Cora. B'k. Stock 
 
 « Bills Receivable 
 
 3,204,41 
 
 1 
 « 
 
 2 
 
 (( 
 
 2000 
 
 260 
 
 144 
 
 20 
 
 780 
 
 00 
 00 
 00 
 00 
 41 
 
 1847. 
 Jany. 3. 
 
 « 10. 
 
 « 28. 
 
 «» 31. 
 
 By Mdse. 
 " do. 
 
 «* Robt Clayton 
 « Expense 
 
 1,272,90 
 « Balance 
 
 1 
 (( 
 
 2 
 
 458 
 
 169 
 
 550 
 
 95 
 
 1931 
 
 25 
 65 
 00 
 00 
 
 51 
 
 3204 
 
 41 
 
 3204 
 
 41 
 
 To Balance 
 
 1931 
 
 51 
 
 
 
 
 Dr, • Bills Receivable. Cr. 
 
 1847. 
 Jany. 8. 
 
 To Mdse. 
 
 1 
 
 782 
 
 50 
 
 1847. 
 Jany. 26. 
 
 By Sundries 
 
 2 
 
 782 
 
 50 
 
 
 
 
 
 Dr. Bills Payable. Cr. 
 
 1847. 
 Jany. 14. 
 « 31. 
 
 To Com. B'k. Stock 
 " Balance 
 
 ! 
 
 1 
 
 275 
 400 
 
 675 
 
 00 
 00 
 
 00 
 
 1847. 
 Jany. 2. 
 « 10. 
 
 Feb. 1. 
 
 By Stock 
 « Mdse. 
 
 675,00 
 
 1 
 
 275 
 400 
 
 00 
 00 
 
 676 
 
 00 
 
 
 
 
 Bi/ Balance 
 
 400 
 
 00 
 
 
80 
 
 BECKER'S BOOK-KEEPING. 
 
 Dr, 
 
 Profit ^ Loss. 
 
 Cr, \ 
 
 1847. 
 Jany. 31. 
 
 M U 
 
 To Sundries 
 '« Slock 
 
 97 
 
 09 
 
 89 11 
 
 186i30 
 
 1847. 
 Jany. 31 
 
 By Sundries 
 
 T 
 
 186 
 
 20 
 
 186 
 
 20 
 
 Br, 
 
 Interest. 
 
 Cr. 
 
 1847. 
 Jany. 26. 
 
 To Bills Receivable 
 
 09 
 
 1847. 
 Jany. 31. 
 
 By Profit & Loss 
 
 3 
 
 09 
 
 Br, 
 
 Expense. 
 
 Cr. 
 
 1847. 1 
 
 Jany. 31. To Cash 
 
 95 
 
 00 
 
 1847. 
 Jany. 31. 
 
 By Profit & Loss 
 
 95 
 
 00 
 
 Dr. 
 
 Merchandise. 
 
 Cr. 
 
 1847. 
 Jany. 3. 
 
 " 6. 
 
 " 10. 
 
 « 31. 
 
 Feb. 1. 
 
 To Cash 
 " Robt. Clayton 
 « Sundries 
 
 1,977,90 
 " Profit <Sc Loss 
 
 To Balance 
 
 458 
 950 
 569 
 
 131 
 
 2109 
 
 667 
 
 25 
 
 00 
 65 
 
 20 
 
 10 
 
 60 
 
 1847. 
 Jany. 8. 
 « 16. 
 
 (( 
 
 31. 
 
 By Bills Receivable 
 <* Sundries 
 
 1,451,50 
 " Balance 
 
 782 
 669 
 
 657 
 
 50 
 00 
 
 60 
 
 2109 10 
 
 J. 
 
 Br, 
 
 Commercial Bank Stock. 
 
 Cr. 
 
 1847. 
 Jany. 2. 
 « 3L 
 
 Feb, 1. 
 
 To Stock 
 «< Profits Loss 
 
 To Bakmee 
 
 1000 
 55 
 
 1055 
 
 00 
 00 
 
 00 
 
 500 
 
 00 
 
 1847. 
 
 Jany. 14. 
 
 « 25. 
 
 " 31. 
 
 By Sundries 
 « Cash 
 
 « Balance 
 
 555,00 
 
 535 
 
 20 
 
 500 
 
 00 
 00 
 
 00 
 
 1055 00 
 
 SECOND SERIES. 
 
 SI 
 
 3. 
 
 Br, Josqph Perkins. Cr. 
 
 1847. 
 Jany. 16. 
 
 To Mdse. 
 
 2 
 
 125 00 
 
 1847. 
 Jany. 2, 
 
 By Stork 
 
 1 
 
 125 00 
 
 
 
 
 
 1 
 
 I 
 
 1 
 1 
 
 
 Br. Robert Clayton. Cr. 
 
 1847. 
 Jany. 16. 
 28. 
 
 To Mdse. {Dft.) 
 « Cash 
 
 2 
 
 « 
 
 400 00 
 550 00 
 
 1847. 
 Jany. 6. 
 
 By Mdse. 
 
 I 
 
 950 
 
 00 
 
 
 
 ^^ 
 
 
 
 
 
 SECOND SERIES. 
 
 This series is divided into two parts, and in it the student is 
 
 represented as having engaged in the grocery business on his 
 own account. 
 
 The hooks used are the Blotter, Cash Book, Bill Book, Jour- 
 nal, and Ledger. The first three of these contain the original 
 entries of all the transactions proposed in the " Examples of 
 Transactions." The entries are to he recorded in these several 
 Day Books, according to the following description : 
 
 The Blotter, in this series, contains the record of all purchases, 
 sales, and other transactions. These should he arranged under 
 Dr. and Cr. titles, with the necessary explanations according to 
 the Journal form of the Introductory Examples. 
 
 The Cash Book contains the original entries of moneys re- 
 ceived and paid. The entries in this book are Journalized at 
 the end of the month. In actual business they may be Jour- 
 nalized oftener, according to the nature and demands of the 
 business. 
 
 The Bill Book contains the original entries of all Bills Re- 
 ceivable and Bills Payable, from which entries are made in the 
 Blotter, at the time they are received or passed away. But, 
 when a Bills Receivable is received, and we pay cash for it, 
 
 11 
 
82 
 
 BECKER»S BOOK-KEEPING. 
 
 that is, discount it, or when we redeem our notes or acceptance 
 in cash, an entry of the transaction is made in the Cash Book. 
 In opening this series the student should be guided by the di 
 rections following. 
 
 Copy the Stock and Proof Book on a piece of paper, and from 
 that Journalize and post them, as in the previous series. This 
 being done, enter the balance of cash on hand on the Dr. side 
 of the Cash Book, in this manner: Feb. 1st., To amount on 
 deposite in Philadelphia Bank, igl5,000,00. The notes forming 
 a part of the capital or assets on entering into business, must 
 be recorded in the Bill Book, under the head of Bills Receivable 
 and notes given out and not yet paid, under the head of Bills 
 Payable. When the above entries are completed, the books are 
 said to be opened. 
 
 The Balance of the recapitulation in the Stock and Proof 
 Book shows the student's present worth, or net capital, on com- 
 mencing; the amount of which will agree with the balance of 
 " Stock" in the Ledger, when the inventory of resources and 
 liabilities is Journalized and posted. 
 
 In this series we dispense with the Sales Book. We also 
 make the Bill Book serve as an auxiliary book, and enter all 
 transactions, except those relating to cash, in the Blotter. Our 
 reasons for pursuing this course are, that it exercises the student 
 in Journalizing transactions, and that it is not expedient to 
 render his task too difficult at the outset. In some of the series 
 that will follow, we shall pursue a different course. 
 
 Describe the second series of accounts. What books are used in it % How 
 is the Blotter used 1 How are the entries made in it 1 How is the Cash Book 
 used ? How often are the entries in it Journalized 1 What is the use of the 
 Bill Book 1 Is it a book of original entry? Is it used in this series as ^prinei- 
 pal^ or as an auxiliary book 1 When are entries in relation to Bills Receivable 
 or Bills Payable to be made in the Cash Book ? What is the first direction for 
 opening this series? What book is opened after the Stock and Proof Book has 
 been Journalized and posted ? How is it opened 1 What is the next book 1 
 How is the net capital of the merchant, &c., ascertained 1 What book is dis- 
 .^•ased with in this series 1 
 
 
 REMARKS ON THE TRANSACTIONS. 8 
 
 REMARKS ON THE TRANSACTIONS. 
 
 The printed examples of transactions are marked in the 
 margin of the printed transactions, with the initial letter or 
 letters of the book in which the original entry is made, and from 
 which we collect the items far the Journal. The following are 
 the letters which represent the several Day Books: B stands for 
 the Blotter, C for the Cash Book, B B for the Bill Book. From 
 these books we make the Journal entry of each transaction ac- 
 cording to the rules for JournaUzing. 
 
 There are two objects to be attained in requiring the transac- 
 tions to be recorded in the several Day Books before they are 
 JournaUzed. First, it teaches the student the use of the several 
 books, and the manner of making original entries in them; and 
 secondly, it informs him where, in actual business, he must 
 look for the items that should compose his Journal entries, since 
 there is no one Day Book in which all the transactions are re- 
 corded, and that in common language. 
 
 To some of the following transactions, some remarks are ap- 
 pended for the purpose of assisting the student in Journalizing 
 it. When a transaction is like any that precedes it, no remarks 
 
 are made upon it. 
 
 « 
 
 For what purpose are certain letters inserted in the margin before the several 
 transactions I Give the initials of the several Day Books. What two advan- 
 tages arise from recording the transactions in the several Day Books before 
 Journalizing them 1 
 
Ov 
 
 BECKER'S BOOK-KEEPING. 
 
 STOCK AND PROOF BOOK. 
 
 Philadelphia, February 1st, 1847. 
 
 C. 
 
 B.B. 
 
 Inventory of my Resources and Liabilities, 
 made this day^on which I commence the 
 Grocery Business on my individual ac- 
 count. 
 
 Property, 
 
 Cash, am't. deposited in Philadelphia Bank, 
 House and Lot, my residence, No. S5 Vine 
 
 street, valued at 
 
 Notes drawn in my favour, viz. : 
 By Geo. Mitchell at 6 mos., due 
 
 21—24 March, 750,00 
 
 By James Walker, at 4 mos., due 
 
 20—23 Feb 500,00 
 
 B.B. 
 
 Samuel Thompson owes me, with interest 
 from Nov. 25th, 1846, 
 
 Total Resources, 
 
 Behts. 
 
 John Andrews, balance due him on acc't. 
 Edward Young, " « " « 
 
 Note, drawn and passed by me — favour of 
 Wm. Laws at 3 mos. due 25—28 Feb. 
 
 Total Liabilities, 
 
 Recapitulation, 
 
 Amount of Resources, ^12,529,50 
 " " Liabilities, 529,50 
 
 Net Capital, jgll2,000,00 
 
 5000 
 6000 
 
 1250 
 
 279 
 
 00 
 00 
 
 12529 
 
 120 
 79 
 
 330 
 
 00 
 
 50 
 
 50 
 
 Ottt %7 
 
 00 
 50 
 
 00 
 
 50 
 
 B. 
 
 B. 
 
 and 
 C. 
 
 B. 
 
 SECOND SERIES.— FIRST fART. 
 
 [transactions.] 
 
 Philadelphia, February 3d, 1847. 
 
 Bought of James Winner, on account, 
 200 Bbls. S'fine Flour, <J $5,50 
 
 Inspection, 1 c. 
 
 ^T In this transaction « Mdse." is received, and nothing 
 given for it Therefore Rule 11. applies. 
 
 — 4 
 
 Paid Cash to Andrew Mason for 
 12 Hhds. N. 0. Sugar, 18536—2340=16196 lbs. 
 
 O 6|c. 
 
 When "Mdse." is bought for Cash, the entry is made 
 in the Blotter as if nothing had been given lor it. The word 
 " Paid" is written in the margin, with the date of payment, 
 and lines in red are to be drawn through the amount in the 
 outer column. An entry is then to be made in the Cash Book, 
 according to Rule I, 
 
 — 8 
 
 B. 
 and 
 B.B. 
 
 0. 
 
 B. 
 
 and 
 
 C. 
 
 Sold to John Boyd, (60 days Cr,) 
 
 100 Bbls. S'fine Flour, $5| 
 
 Inspection, 1 c. 
 
 ^F* In this transaction «* Mdse." is given and nothing re- 
 ceived for it. Therefore Rule III. applies. 
 
 Note. The term of credit is to be placed on the same line 
 with the word « Inspection," close to the margin on the left 
 side, thus, (60 days Cr.) 
 
 10 
 
 Bought of Charles Norton & Co., on my note at 3 mos. 
 30 Hhds. S. H. Molasses, 3600 gals. & 37i c. 
 25 " N. 0. " 3135 " O 26 
 
 ^" In this transaction « Mdse." is received, and « Bills 
 Payable" given for it. Therefore Rule I. applies. 
 
 tr 
 
 Paid Cash to Henry Davis in full for Bill of Store 
 Fixtures, 
 
 BF* In this transaction " Store Fixtures" are received, and 
 Cash paid for them. The case therefore is the same as that 
 of 4th inst. 
 
 13 
 
 Sold to Clinton Fisher, for Cash, 
 3 Hhds. N. 0. Sugar, 4634— 585=4049 lbs. ® 7i c. 
 
 BF* When « Mdse." is sold for Cash, the entry is made in 
 the Blotter, as if nothing had been received, in accordance 
 
 
 I. 
 
 85 
 
 2165 
 
 10 
 
 175 
 
 00 
 
86 
 
 
 B. 
 
 B. 
 
 and 
 C. 
 
 B. 
 and 
 B.B. 
 
 B. 
 
 B. 
 
 and 
 C. 
 
 BECKER'S BOOK-KEEPING. 
 [tkansactions.] 
 
 Philadelphia, February 13/A, 1847. 
 
 with Rule III. — To show that Cash has been received for it, 
 the word « Paid" is written in the margin, with the date of 
 payment. Also, an entry is made in the Cash Book accord- 
 ing to Rule L 
 
 rr 
 
 n 
 
 Boujofht of Daniel Walton, on account, 
 75 Bags Lag. Coffee, 8495—210=8285 lbs. O 11 c. 
 
 16 
 
 Bought of Hastings & Co., for Cash, 
 12 Tierces Rice, 10500—1098=9402 lbs. (©3 c. 
 15 M. Havana Cigars, (whole boxes,) 0) $16.00 
 
 8 " do. " rhlf do. ) & 
 
 4 " do. « (qr. do. ) & 
 
 17.00 
 18.00 
 
 SECOND SERIES.— FIRST PART. 
 
 [transactions.] 
 
 S7 
 
 18 
 
 Effected a settlement with John Boyd for bill of Flour 
 sold him on the 8th inst. amounting to $ 
 
 Discount allowed him for time shortened 
 on the same, ^ p'ct. ... $ 
 
 Received of him his Note at 30 days, from 8th inst., 
 for net am't due. 
 
 1^ In this transaction Rule 11. applies. The discount for 
 the time shortened on bill of Flour and the Note received are 
 equal to the amount of the claim agauist John Boyd. 
 
 19 
 
 Sold to Robert Patterson, on account, 
 5 Hhds. S. H. Molasses, 625 gals. 
 3 « N.O. do. 376 
 
 t( 
 
 ® 
 
 41c. 
 30 c. 
 
 730 
 
 06 
 
 20 
 
 369 
 
 Bartered Mdse. with Geo. Fox & Son. 
 
 Received, 
 30 Bbls. No. 1 Mackerel, O $11.00 $ 
 20 " "2 do. & 9.00 _ 
 
 Delivered^ 
 15 Bags Lag. Coffee, 1695—42=1653 lbs. 
 
 O 12i c. $ 
 3 Hhds. S. H. Molasses, a'le gals, (a) 40 r. 
 5 M. Havana Cigars, (whole boxes,) (S/ $20. 
 
 Cash for balance. 
 
 IW The caption of the entry of this transaction will be 
 « Mdse. Dr. to George Fox & Son." On the line following 
 
 Philadelphia, February 201 h, 1847. 
 
 B. 
 
 B. and 
 
 B.B. 
 
 C. 
 
 B. 
 
 05 
 
 510 
 
 449 
 
 00 
 
 03 
 
 this, the explanation « for barter of Mdse. with them," is to 
 follow. Then we place the several items of Mdse. received, 
 and the amount of each, inside the inner column, carrying the 
 total amount to the inner column. The several items of Mdse. 
 delivered in exchange are then entered in the same manner, 
 the difference being carried to the outer column. As the trans- 
 action is considered closed, the balance having been paid in 
 Cash, it is marked " Paid " in the margin, and an entry is made 
 in the Cash Book for the difference on the Cr. side ; thus : 
 Feb. 20, By Mdse.j paid Geo. Fox & Son, for balance in bar- 
 ter, $60.97." 
 
 //• 
 
 Bought of Louis Cannon, (at 30 days Cr.) 
 
 10 Baskets Salad Oil, & $4.00 
 
 25 Boxes Starch, 1556—365=1191 lbs. & 6 J c. 
 15 Chests Y. H. Tea, 1680— 330 =1350 lbs. 82 c. 
 12 Half Chests Gunpowder do., 936—144 
 = 792 lbs. & 85 c. 
 
 Delivered in Payment, 
 My not« at 30 days for . . . • 
 Cash for balance . . . $ 
 Discount allowed me on 
 the same, 1 p'ct. 
 
 $1000.00 
 
 $1894.64 
 
 C. 
 
 B. 
 
 CF" In this transaction « Mdse." is received, and « Bills 
 Payable" given for it. For the balance, although Cash is 
 paid, Louis Cannon is to receive credit for it " Discount & 
 Interest" is to be credited for the 1 p'ct allowed on the 
 amount actually paid. In the Cash Book, Cash is to be 
 credited thus : " Feb. 20. By Louis Cannon, paid him to 
 close his acc't, «J» ." 
 
 In order to find the amount of the discount allowed, find 
 the balance due on this bill which is here to be paid in Cash; 
 then find the present worth of that balance, and you will have 
 the am't which is actually paid. The difference between the 
 balance due and the present worth will be the discount al- 
 lowed. 
 
 21 
 
 Paid Cash to James Winner, in fjill, 
 for bill of Flour, bo't 3d inst. 
 
 // 
 
 1894 
 
 64 
 
 Sold to Wm. Ross, on account, 
 
 2 Tierces Rice, 1738—181 = 1557 lbs. 
 2 M. Hav'a Cigars, (half boxes,) & 
 
 4 c. 
 $22.00 
 
 106 
 
 28 
 
h 
 
 88 
 
 BECKER'S BOOK-KEEPING. 
 [transactions.] 
 
 Philadelphia, February 23d, 1847. 
 
 B. 
 
 Sold to John Andrews, 
 60 Bbl8. S'fine Flour, 
 
 B. 
 and 
 B.B. 
 
 C. 
 
 Trenton, 
 
 & «6.00 
 
 ,^ „ Inspection, 1 c. 
 
 10 Boxes Starch, 61.3—150=463 lbs. 7 c 
 
 3 Cheats Y. H. Tea, 33d-66=270 lbs. O 85 c* 
 
 Received in Payment, 
 
 His receipt fora balance due him on account, 
 M. Carpenter's note, his fav. dated Jan'y 24, 
 
 at 60 days, for $300.00 
 
 Cash for balance, .... 
 
 $562.41 
 
 C. 
 
 B^ In this transaction « Mdse." is given, and after de- 
 ducting the am't due John Andrews on acc't the balance ia 
 received in Bills Receivable and Cash. An entry for the 
 sales of « Mdse." is to be made according to Ruk III., and 
 another for the note received according to Rule II. An en- 
 try is also to be made in the Cash Book according to the 
 same Rule. When the several entries are posted, it will be 
 found that John Andrews' account is balanced, and the 
 other accounts are either charged or discharged for their re- 
 spective shares. 
 
 24 
 
 C. 
 
 Paid Cash to Joseph Stevenson, in full, 
 for bill of Counting-house furniture, 
 
 If 
 
 The Philada. Bank has collected and placed to my credit, 
 the amount of James Walker's note, due 23d inst. 
 
 B. 
 
 25 
 
 Sold to Daniel Walton, on account, 
 4 Hhds. N. O. Su^ar, 6165— 780=^5385 lbs. & 7^ c. 
 2 " N. O. Molasses, 260 gals. (S> 29^ c. 
 
 // 
 
 B. 
 
 and 
 
 B.B. 
 
 Bc't at auction of Freemap & Bro's. on my note at 
 3 mos. 
 5 Pipes Bordeaux Brandy, 620 gals. & $1.75 
 15 Casks Malaga Raisins, & 5.00 
 
 25 Boxe« Muscatel " 2.00 
 
 5 Sacks Soft-shelled Almonds, 20&5— 72= 
 
 2013, & 10 c. 
 
 562 
 
 41 
 
 95 
 
 37 
 
 494 
 
 04 
 
 1411 30 
 
 
 SECOND SERIES.— FIRST PART. 
 
 [transactions.] 
 
 89 
 
 Philadelphia, February 26th, 1847. 
 
 C. 
 
 B. 
 
 Received Cash of Samuel Thompson, in full. 
 
 Amount of his acct, being .... 
 Interest on the same from Nov. 25, 1846, to date = 
 93 days, 
 
 B^ In this transaction Cash is received and Interest, that 
 is, the time is given, but for the am't. of Samuel Thompson's 
 acct nothing is given ; therefore Rules I. and 11. apply. 
 
 // 
 
 Sold to Thomas Morris & Co. 
 30 Bbls. No. 1 Mackerel, & $11.50 
 
 20 " " 2 " & 9.50 
 
 60 Bao-s Lag. Coffee, 6800—168=6632 lbs. (S> 12ic. 
 
 B.and 
 
 B.B. 
 
 B. 
 
 Received in Payment, 
 Their Dft. on Caleb Runnington & Co., 
 
 New York at 3 days' sight, for 
 The balance sold on account. 
 
 $1000.00 
 
 In this transaction « Mdse." is given, and " Bills Re- 
 ceivable" is received in part payment, for the balance nothing 
 is received. Therefore RuUs L and ///. apply. 
 
 27 
 
 B. 
 
 and 
 C. 
 
 Ik 
 
 c. 
 
 c. 
 
 Sold for Cash to John Perrin, 
 5 Boxes Muscatel Raisins, 
 
 2 M. Havana Cigars, (qr. boxes,) 
 
 
 
 $2.25 
 23.00 
 
 1347 
 
 42 
 
 28 
 
 Paid Cash for my Note Wm. Laws' favour, due 
 
 // 
 
 Paid Cash to the Franklin Fire Ins. Co. 
 
 for insuring $6061.62 on my property, No. 85 Vine St. 
 at 1 p'ct. Policy, $1.00. 
 
 tW In this transaction « Cash" is given and nothing re- 
 ceived for it ; therefore the property is chargeable for the 
 amount 
 
 57 
 
 25 
 
 H 2 
 
 12 
 
90 BECKER'S BOOK-KEEPIWO. 
 
 JOURNALIZmo SECOND SERIES. 
 
 FIRST PART. 
 
 As it is desirable thai each part of the work should be well 
 understood before proceeding to another part, the original entries 
 of the transactions in this set should be made before the student 
 begins to Journalize. In proceeding to JournaHze, the entries 
 in the Blotter should first be disposed of, and only those entries 
 not marked « Paid" are to be Journalized. Those in the Cash 
 Book should then be taken up. The entries in the Bill Book 
 in this series are not transferred to the Journal, as this book is 
 auxiliary to the Blotter and the Cash Book. 
 
 In composing the Journal, after the Inventory of Stock ac- 
 count has been disposed of according to directions, all entries 
 are to be made in the same form as in the Blotter, omitting 
 the explanations. Some merchants, however, require the 
 Journal entries to be made with explanations, which method 
 will not be found advantageous, except in the Shipping and 
 Commission business. 
 
 The entries in the Blotter, in actual business, are Journalized 
 daily, weekly, or monthly, according to the necessities of the 
 busmess. When this has been performed, the Cash Book must 
 be balanced previously to its being written up or Journalized. 
 
 The amounts entered on the Dr. side of this book will be em- 
 oraced in one Journal entry, the caption of which will be the 
 following: 
 
 " Cash Br. To Sundries 
 
 for this month's receipts" 
 
 After this follow the several creditors with their respectrve 
 amounts. If one account has received several credits during the 
 month, the amounts of each are added together and Journalized 
 m one amount. Thus "Merchandise" is creditor Feb. 12th for 
 
 ^ and Feb. 27th for $ . Therefore « Mdse., in the 
 
 Journal entry, is creditor in one am't. for $ . 
 
 When an entry has been Journalized, it should immediately, 
 on the double red line of the money columns, be checked in the' 
 Cash Book, thus ( i^ ). When all the Cr. items for money 
 received have been Journalized, the correctness of the work 
 
 JOURNALIZING SECOND SERIES^FIRST PART. 
 
 91 
 
 1 
 
 can be proved by subtracting from the total, the amount alre;idy 
 posted, which is the balance on hand on opening the account 
 for if no error has been committed in Journalizing, the differ 
 ence will be equal to the total footing of the Journal entry. The 
 footing in the Cash Book is to be made first, in pencil, and, 
 when its correctness has been ascertained, it may be inserted in 
 
 ink. 
 
 Having proved that the Journal entry for the amount of money 
 received is correct, the entries on the Cr. side of Cash must be 
 Journalized. The Journal caption of the entry will be — 
 
 « Sundries Dr. To Cash, 
 
 for this month's disbursements." 
 
 Then follow the several debtors with their respective amounts. 
 Those accounts which have more than one charge or debit, are 
 added together and entered in one amount, as has been de- 
 scribed. The total footing of this entry must, of course, equal 
 the total amount paid out as per Cash Book. 
 
 What book in this series should be Journalized firstl What entnes snould 
 be omitted in Journalizing it % What book should next be disposed of 1 Why 
 is the Bill Book not to be Journalized 1 What is the difference between the 
 Blotter and Journal entries 1 In what business is it advantageous to retain 
 the explanation in the Journal 1 Before the Cash Book is Journalized, what 
 must be done % What is the caption of the Journal entry for the amounts re- 
 ceived on the Dr. side of the Cash Book 1 What are the Cr. items in this 
 entry ? If one account has received several credits during the month, how are 
 they Journalized ! How do we indicate in the Cash Book that an entry in the 
 game has been Journalized ? When all the Cr. items for money received have 
 been Journalized, how can the correctness of the work be tested % How are 
 we to guard against the insertion of a wrong footing in the Cash Book 1 What 
 18 the caption of the Journal entry for amounts entered on the Cr. side of the 
 Ca«h Book ? Give the remarks on this subject. 
 
4 
 
 92 
 
 BECKER'S BOOK-KEEPING. 
 
 POSTING AND CLOSING SECOND SERIES. 
 
 FIRST PART. 
 
 Having finished Journalizing, both from the Blotter and Cash 
 Book, the entries are to be posted in regular order, observing 
 that, for every entry made in the Ledger on the Dr. side of one 
 account, there must be a corresponding entry made on the Cr. 
 side of another account. 
 
 When the posting is completed, the student will commence 
 closing the set, the process of which will be the same as in the 
 Introductory Set. Referring to the latter for directions, we will 
 merely mention the order in which this part of the work is to 
 be done. It is the following : 
 
 1. Take off a trial balance from the Ledger, to prove the cor- 
 rectness of the postings. 
 
 2. Take an Inventory of the property on hand, unsold, Feb 
 28th, 1847. 
 
 3. Ascertain the gains and losses in the business during the 
 month and make entries for the same, in the Journal, which 
 entries are to be derived from the following statement : 
 
 On examination, it will appear that the following accounts 
 nave produced gains, viz. : 
 
 SECOND PART Of SECOND SERIEa 
 
 93 
 
 Merchandise. 
 
 Total sales, as per'Cr. side, being 
 Bal. being the estimated value of Mdae. 
 on hand, unsold, as per Inventory, 
 
 Total cost, as per Dr. side, being 
 
 Discount & Interest. 
 
 Amount of Cr. side being 
 Vmount of Dr. « « 
 
 $000.00 
 000.00 
 
 $000.00 
 000.00 
 
 f 00.00 
 0.00 
 
 $000.00 
 
 00.00 
 
 $000.00 
 
 Real Estate shoves a loss, as foUovrs: 
 Amount of Dr. side being 
 
 Estimated value of House and Lot per Inventory, 
 being 
 
 $0000.00 
 0000.00 
 
 $ 00.00 
 
 Having Journalized and posted the entries for the gains and 
 losses on the several accounts, close Profit & Loss account 
 into Stock. 
 
 4. Take off a Balance Sheet, according to the form given in 
 the « Balance Sheet, or Transfer Balance Sheet," which, in many 
 houses, is all that is required to be done. But when a full and 
 complete abstract of all the Ledger accounts is desired, the 
 Balance Sheet is to be made according to the form given in the 
 Introductory Set, which form has been appropriately styled the 
 « Grand Balance Sheet."* 
 
 5. Close the accounts in Ledger A. which have balances, and 
 open the same in Ledger B. according to the directions foi 
 « Transferring Accounts from the old to the new Ledger." 
 
 When all the books have been Journalized, what is the next thing to be done 
 What is to be borne in mind in posting"? In proceeding to close the books, 
 what is the first direction to be observed ? The second 1 The third ? Be* 
 scribe the form of the statement from which the gains or losses on the various 
 accounts are ascertained. When the entries for gains and losses have been 
 Journalized and posted, what account is to be closed 1 What is the fourth 
 direction? When is a "Grand Balance Sheet" to be taken? What is the 
 fifth direction? 
 
 « • • • > 
 
 SECOND PART OF SECOND SERIES. 
 
 It is not necessary that all the books should be renewed when 
 only the Ledger is filled. New books need be procured to sup- 
 ply the place of those only that are filled. The books of the old 
 set that may not have been written through will still be of use 
 to accompany the new books. If a new Cash Book is to be 
 used, the balance in the old one is to be brought forward in the 
 
 new book thus: "To Balance as per Cash Book No. 1, $ ." 
 
 In the old Cash Book the account is closed " By Balance carried 
 
 to Cash Book No. 2, $ ." If a new Bill Book be needed, 
 
 all the Bills Payable and Bills Receivable still open are copied 
 into the new book ; and in the old book, in the column of re- 
 marks, they are marked, "transferred to new book." When, 
 
 • It vnll be profitable to the student to make out a Grand Balance Sheet of this 
 series in addition to the Transfer Balance Sheet, and to close it according to the form 
 of that g^ven in the previous series. 
 
94 
 
 BECKER»S BOOK-KEEPING. 
 
 SECOND SERIES SECOND PART. 
 
 95 
 
 .(: 
 
 however, any of the other books, such as the Day Book, oi 
 Blotter, Journal, Sales Book, or Invoice Book, are filled, the new 
 book is commenced with the first transaction that may occur in 
 the department in which it is to be used. 
 
 The Ledger is the only new book in the second part of this 
 series. All the other books are to be continued in the same 
 blank books, the latter being sufficiently large for that purpose. 
 
 Merchants who do not keep a book into which the Balance 
 Sheets are copied from time to time, have them copied into the 
 Journal, in the following form: 
 
 STATEMENT OP MY EFFECTS AND DEBTS, ACTIVE AND PASSIVE/ 
 
 AS PER BALANCE SHEET, LEDGER A., TAKEN FEB. 28tH, 1847. 
 
 
 •Active. 
 
 
 
 
 
 
 Cash, balance on hand per Cash Book,. . 
 
 Real Estate, house and lot No. 85 Vine St. 
 
 Bills Receivable, notes &c. in my favour 
 per Bill Book, 
 
 1753 
 6000 
 
 2623 
 5942 
 270 
 369 
 106 
 347 
 
 14 
 00 
 
 12 
 75 
 37 
 05 
 28 
 42 
 
 
 « 
 
 Merchandise, on hand per Inventory, • 
 
 Store Fixtures, valued «« do 
 Robert Patterson, owes me, . . . . 
 Wm. Ross, « « . . . , 
 Thomas Morris & Co., owes me,. . 
 
 
 Passive, 
 
 
 
 
 
 
 Bills Payable, notes afloat, per Bffl Book, 
 
 Edward Young, due him, , . . , 
 Daniel Walton, « « .... 
 
 
 
 4576 
 
 79 
 
 417 
 
 40 
 50 
 31 
 
 
 Recapitulation, 
 
 
 
 
 
 
 Amount of my active Stock, $17412.13 
 Amount of my passive <« 5073.21 
 
 
 13 
 
 12338 
 
 92 
 13 
 
 My net Capital, 
 
 $17412 
 
 17412 
 
 The above amounts, on examination of the accounts, will be 
 found to correspond with the balance brought into the new 
 Ledger. 
 
 The transactions following are to be entered as in the first 
 part 
 
 As in the preceding part, we subjoin notes to those transactions 
 needing elucidation. 
 
 Is it necessary that all the hooks should he renewed when all are not filled ? 
 When a new Cash Book is to he used, how is it to be opened % How is the 
 account in the old Cash Book closed 1 If a new Bill Book be used, how is it 
 opened 1 How is the old one closed 1 When a new Day Book, Journal, &c., 
 are used, what will be the first entry in them? What is the only new book 
 in this series? If a copy of the Balance Sheet of the old Ledger be not re- 
 corded, what is the form of the statement to be entered in the Journal ? How 
 must the correctness of the amounts contained therein be proved 1 
 
 [transactions.] 
 
 Philadelphia^ March 2flf, 1847. 
 
 B. 
 
 Sold to Paul Hammond on acc't, 
 5 Baskets Salad Oil, 0> $4.7.5 
 1 Chest Y. H. Tea, 112—22—90 & 95 c. 
 1 Hlf. do. Gunpowder do. 78—12—66 & 90 c. 
 
 168 
 
 65 
 
 ff 
 
 C. 
 
 Received Cash of Wm. Ross, on acc't. 
 
 50 
 
 00 
 
 B. 
 
 B. 
 
 B. and 
 
 B. B. 
 
 B. 
 
 B. 
 
 Sold to James Winner, 
 
 5 Pipes Bordeaux Brandy, 620 ^Is. $2, $ 
 3 Sacks Soft Shelled Almonds, 
 
 1249—43—1206 lbs. 12i c. 
 
 a 
 
 1395 
 
 38 
 
 Received in Payment, 
 
 My note, Louis Cannon's favour, due 22 — ^25 
 Mar. $ 
 
 Hiram Good fellow's note, his favour, at 90 
 
 days, due 15—18 March, 300.00 
 
 The balance sold on acc't. 
 
 $1395.38 
 
 Discount off, on my note, for 23 days, $ 
 do. " H. Goodfellow's note, for 16 days, 
 
 9 
 
 C. 
 
 The Farmers & Mechanics' Bank has discounted Geo. 
 Mitchell's note, due 21—24 March, am't $750.00 
 
 
 
 Discount on the same, for 22 days, is . • 
 Cash passed to my credit, . . • . 
 
96 
 
 BECKER'S BOOK-KEEPINa 
 [tkansactions.] 
 
 Philadelphia, March 3d, 1847. 
 
 ^ « Bills Receivable" and « Bills Payable" must always 
 be debited or credited, as the case may require, for the full 
 amount of the face of the note. Therefore, in this transac- 
 tion, Cash must be debited for the amount of the note, and, 
 on the opposite side, it must be credited for the discount al- 
 lowed on it. The difference is equal to the amount of Cash 
 passed to my credit at the Bank- 
 
 C. 
 
 Lent Cash to Willis & Sanderson, to be refunded the 
 
 15th inst. 
 
 B. 
 
 and 
 
 C. 
 
 c* 
 
 Sold to Peter Hollis, for Cash, 
 
 15 Casks MalagTi Raisins, 
 
 20 Boxes Muscatel do. & 
 
 f5.50 
 2.25 
 
 // 
 
 B. and 
 C. 
 
 The Philadelphia Bank has collected and placed to my 
 credit the am't of Thomas Morris & Co's. Dft. on 
 Caleb Runnington & Co., N. Y. 
 
 8 
 
 Paid Cash to Alexander Leroy, for 
 20 Bags Java Coffee, 3000— 75=-2925 
 
 & 13 c. 
 
 10 
 
 c. 
 
 c. 
 
 Paid Cash to Edward Young, in full for his acc't 
 
 12 — 
 
 Received Cash of Wm. Ross on acc't, and in full for 
 balance of Biil Mdse. 21st ult . 
 
 B. 
 
 n 
 
 Sold to Wm. Ross, on acc't, 
 3 Tierces Rice, 2534—264=2270 lbs. 
 2 Boxes Starch, 138—30=108 lbs. 
 
 1 Chest Y. H. Tea, 11:3—22=91 lbs. 
 
 2 Hlf. do Gunpowder do. 189^24=ia5 
 2 M. Hav'a Cigars (whole boxes) 
 1 " " « (hlf. " ) O 
 
 O 
 
 & 
 & 
 
 
 31 c. 
 7ic. 
 96 c. 
 91 c. 
 
 $23.50 
 24.50 
 
 800 00 
 
 H 
 
 SECOND SERIFS.— SECOND PART. 
 
 [transactions.] 
 
 97 
 
 127 50 
 
 Philadelphia, March 121 h, 1847. 
 
 B. 
 
 402 
 
 24 
 
 B. and 
 
 B.B. 
 
 B. 
 
 C. 
 B 
 
 & 42 c. 
 
 (S> 28 c. 
 
 Sold to Austin Atwood & Co., 
 10 Hhds. S. H. Molasses, 1190 gals. 
 10 »* N. O. " 1256 " 
 4 " N.O. Sugar, 
 
 6204— 790=5414 lbs. & 7i c. 
 10 Bags Java Coffee, 
 
 1500—37=1463 lbs. O 14^ c. 
 
 Received in Payment f 
 Their note at 60 days, $1000.00 
 
 Daniel Walton's Dft on me, their favour, in 
 
 full for balance of his acc't , 
 Cash for balance ...... 
 
 1473 
 
 32 
 
 $148;3.82 
 
 Discount on their note for 63 days. . 
 
 10 
 
 50 
 
 C. 
 
 C. 
 
 t^ In this transaction we will depart from our usual course 
 by dividing it into two parts, and making an entry for the 
 sale, and one for the payment. The entry for the sale will be 
 made according to Rule III., and that for the payment ac- 
 c6rding to Rules /., //., and ///. An entry will be made on 
 the Dr. side of the Cash Book, for the amount of Cash re- 
 ceived. When these entries are posted, Austin Atwood & 
 Co's account will be found closed. 
 
 1483] 82 
 
 14 
 
 Received through the Philadelphia Bank, the am't of 
 John Boyd's note, due 13th inst., 
 
 15 . 
 
 Received Cash of Willis & Sanderson, for loan of 4th 
 inst. 
 
 ff 
 
 B. 
 
 * 5.62i 
 
 5i 
 
 & 41i c. 
 
 Exchanged Mdse. with Zachariah Osbourn. 
 
 Received, 
 50 Bbls. S'fine Flour, 
 
 25 " Scraped Flour, & 
 
 Delivered. 
 1 Hhd. S. H. Molasses, 132 gals. 
 
 1 " N. 0. Sugar, 
 
 1533—185=1348 lbs. 
 
 2 Tierces Rice, 172.^—179=1546 lbs. 
 
 2 Boxes Starch, 137—30=107 lbs. 
 
 3 Baskets Salad Oil, 
 2 M. Hav'a Cigars, (whole boxes) 
 2M. " »» (hlf. do,) 
 
 I owe the balance on account, . , . ~~, \ 
 
 IdP* This transaction is entered in the Blotter in the same 
 manner as the barter with Geo. Fox & Son, of 20th ult 
 
 I 13 
 
 800 
 
 00 
 
 & 
 
 
 
 71 c. 
 3ic. 
 
 7ic. 
 
 $4.87i 
 23.00 
 24.00 
 
 409 
 
 38 
 
 322 68 
 
 86' 70 
 
' ( 
 
 ■ 
 
 
 98 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, March 19 th, 1847. 
 
 C. 
 
 B. and 
 C. 
 
 B. 
 
 and 
 B.B. 
 
 Received through the Farmers & Mechanics' Bank, 
 the am't of Hiram Goodfellow's note, due 18th inst. 
 
 20 
 
 Sold for Cash to Adam Whiteman, 
 10 Bbls. S'fine Flour, 
 5 *' Scrape4 
 
 it 
 
 
 
 4 
 
 23 
 
 Exchanged notes with Frank Stockton, for mutual ac- 
 commodation, each note being drawn at 3 mos. and 
 amounting to .••.., . 
 
 B. 
 
 B. 
 
 B. 
 
 B. and 
 B.B. 
 
 25 
 
 C. 
 
 Sold to John Homer, 
 my house and Jot, No. 85 Vine St., for 
 
 Eeceived in Payment. 
 
 His Bond to me, securing payment on above 
 
 property, and payable in 5 years. Interest 
 
 payable quarterly, at 5 p'ct. per annum $2000.00 
 My note, fa v. Chas. Norton & Co., due 10 — 
 
 13 May, 2165.10 
 
 His three notes, endorsed by Amos Valentine, 
 
 each drawn for $600. Interest added at 6 
 
 p'ct. per annum, viz : 
 One dated 25th Mar. at 6 mos., due 28th 
 
 Sept. 1847, $ 
 
 One dated 2.5th Mar. at 12 mos., due 28th 
 
 Mar. 1848, 
 One dated 2.5th Mar. at 18 mos., due 28th 
 
 Sept. 1848, 1908.90 
 
 Cash for balance, 25.52..58 
 
 {? 8626.58 
 
 Discount oflf on my note for 49 days, 
 Interest added on his three notes for $1800, 
 average time 12 mos. 3 days. 
 
 The sale of the house should be entered according to 
 Rule III. In the entry for the payment, Rults I. and //. 
 apply. John Homer is to receive credit for the net am't of 
 bond and mortgage, and notes received, less the discount and 
 interest, on the latter. In the Cash Book, an entry is to be 
 made for the Cash received. When tiiese entries are all 
 posted, John Homer's acc't will be found to close. In this 
 transaction, Bond & Mortgage acc't is to be opened. 
 
 89 
 
 600 
 
 8500 
 
 38 
 
 00 
 
 00 
 
 8626 58 
 
 C. 
 
 B. 
 
 B. 
 
 B. 
 
 and 
 
 B.B. 
 
 C. 
 
 B. 
 
 C. 
 
 SECOND SERIES.— -SECOND PART 
 
 [transactions.] 
 
 99 
 
 Philadelphia, March 21th, 1847. 
 
 Paid Cash to Zachariah Osbourn, in full for his acc't. 
 
 28 
 
 Sold to Frank Howard, at 5 p'ct. premium on cost, the 
 balance of my Stock of goods remaining on hand, un- 
 sold, amounting as per Inventory to $ 
 Premium at 5 p'ct. on do. 
 
 Store fixtuies and counting-house furniture, at 
 5 p'ct. discount, valued as per H. Davis' bill, 
 do per Jos. Stevenson's " 
 
 Total cost $ 
 
 Disc't off 5 p'ct. on do. 
 
 Received in Payment. 
 
 His note at 30 days, $1000.00 
 
 James Beck & Co's. Dft. at 60 days sight, on 
 Ben Waters, Boston, which is accepted, 
 due 15—18 April, 1000.00 
 
 Julius Wright's note, his favour, at 4 mos., 
 due 21—24 May, 500.00 
 
 Cash for balance. 
 
 $3675.15 
 
 DiBCoant on his note for 33 days $ 
 
 do " Ben Waters' acceptance for 21 days, 
 do Julius Wright's note for 57 days. 
 
 t^ Before entering this transaction, the student should 
 take an inventory of the goods, &c., on hand unsold. The 
 entry for the transaction is the same as that on the 25th inst 
 
 29 
 
 Received through the Farmers & Mechanics' Bank, the 
 am't of M. Carpenter's note, due 28th inst. . 
 
 31 
 
 C. 
 
 Paid Cash this month as per Expense Book, 
 
 for house and pocket expenses, . , 
 
 " rent of store 2 mos. 
 
 ** store expenses, advertising, &c., . 
 
 " Clerk hire, 
 
 3675 
 
 15 
 
 150 
 
 100 
 
 75 
 
 125 
 
 00 
 00 
 00 
 00 
 
 450 00 
 
 
 I 
 
 I 
 
i 
 
 i| 
 
 I 
 
 >. 
 
 100 
 
 BECKER'S BOOK-KEEPING. 
 
 Entries of transactions of this kind form excep-ions to Rule /., 
 according to which they would naturally be Journalized. The 
 equivalent received in such cases for money paid, must be con- 
 sidered, in one sense, a loss, since it is received for the purpose 
 of consumption ; hence it is represented by the title of " Ex- 
 pense," which account is debited for the amount paid out. The 
 student would do well in this connexion to refer to Expense ac- 
 count, under the article entitled "Explanation of Accounts in the 
 Ledger, with the rules for opening and closing them." 
 
 CLOSING OF SECOND PART. 
 
 The Journal entries of the Blotter and Cash Book are to be 
 made in the same manner as in the first part of this series. The 
 Trial Balance being taken off, the student should proceed to 
 ascertain the gains and losses on the various accounts, as follows: 
 
 Having disposed of all my property, 1 find that the following 
 acc'ts have produced gains: 
 
 Real Estate, am*t of Cr. side being, $0000.00 
 
 « «i Dr. « « 0000.00 $0000.00 
 
 Discount & Interest, am't of Cr. side being, 
 
 « Dr. *♦ 
 
 Merchandise, am't of Cr. side being, 
 
 "Dr. « 
 
 000.00 
 0.00 
 
 0000.00 
 0000.00 
 
 000.00 
 
 0000.00 
 $0000.00 
 
 The following acc'ts show balances against them, being losses, 
 and are to be balanced into " Profit & Loss." 
 
 Store Fixtures, am't of Dr. side being. 
 
 u ti Cr. «• « 
 
 $000.00 
 000.00 $ 00.00 
 
 iiXpense, am't of Dr. side being the total of my expenses, 000.00 
 
 $000.00 
 
 When the above has been Journalized and posted, an entry 
 for the following statement should be made : 
 
 "Profit & Loss" presents a balance in favour of Stock, being 
 the total net gain of my business this month, i^OOO.OO 
 
 h 
 
 THIRD SERfES. 
 
 101 
 
 The drawing of the Grand Balance Sheet, and the closing of 
 the Ledger accounts, according to the form of the "periodical 
 closing of accounts," will be the finishing exercises of the series. 
 
 How are the Journal entries for the Blotter and Cash Book to be made? 
 Describe tlie form of the statement of gains and losses. What entry is to be 
 made after the same has been Journalized and posted ? What are the finishing 
 exercises of the series ? . 
 
 < ••• » 
 
 THIRD SERIES. 
 
 This series, like the previous one, is divided into two parts 
 In it the Student is represented as having entered into partner- 
 ship with Clarence Aubrey, for the purpose of conducting the 
 wholesale Jobbing and the Hardware business, the two partners 
 sharing alike in the gains and losses. 
 
 In actual business, the books for both of these branches of 
 business are ruled alike ; hence, the transactions to be recorded 
 in them, cannot differ much in their forms of entry. 
 
 The books used in this series are the Sales Book, Cash Book, 
 Bill Book. Invoice Book, Day Book, and Ledger. 
 
 The forms observed in these several books are exemplified 
 and described in the blank books accompanying this series. 
 
 It will be perceived that the Journal is dispensed with in this 
 series. Transactions are classified, and each one of them is re- 
 corded in the book appropriated for the department to which it 
 belongs. From each Day Book, therefore, entries may be 
 posted daily, and thus the necessity of deferring till the last day 
 of each month the task of "bringing up" the books is avoided, 
 and the Book-keeper is relieved of a vast amount of unneces- 
 sary labour. 
 
 The Invoice Book is the only book which affords an excep- 
 tion to the method of practice set forth in the preceding remark. 
 This book contains merely a copy of the bills received for goods 
 purchased. If any errors be detected in the extension of the 
 items of these bills, or if an abatement for defects in the goods 
 is to be obtained, the former should be rectified, and the latter 
 made on the face of the original bill by the party who sold the 
 goods, and before the bill has been entered in the Invoice Book. 
 I2 
 
Ill 
 
 102 
 
 BECKER'S BOOK-KEEPHNG. 
 
 Hence, it is necessary that the Book-keeper should wait till the 
 last day of the month to "bring up" this book. 
 
 We shall continue to mark before the printed examples com- 
 posing this series, the initial letters of the books in which the 
 transactions are, wholly or in part, to be recorded. The follow- 
 ing is the classification and distribution of the transactions : 
 
 Sales of Mdse. effected by the concern, are entered in the Sales 
 
 Book, [marked] S. B. 
 Purchases of Mdse. made by the concern are entered in the 
 
 Invoice Book, [marked] I. B. 
 Bills Receivable, received ? , ^ 
 Bills Payable, issued 5 ^^ ^^ "^"""'"' "'^ ^"^^^^^ ^" ^^^ 
 
 Bill Book, [marked] B. B. 
 Money, received and paid by the concern, is entered in the Cash 
 
 Book, [marked] C. B. 
 
 ■ All other transactions which cannot be brought under any of 
 the above heads are to be entered in the Day Book, [marked 
 D. B.] which is kept in Journal form with explanations. 
 
 The books of this series are opened by making entries from 
 the " Stock and Proof Book" for each partner's investment. All 
 these entries should be posted and proved correct by taking off a 
 Trial Balance before making entries for the transactions given. 
 
 When the books have been thus opened, the student should 
 not neglect to make the proper entries in his last set for the 
 Cash and Notes invested in this new concern. 
 
 Describe the third series of examples. What books are used in this series 1 
 What book is dispensed with in this series 1 How are the transactions classi- 
 fied \ What advantage arises from posting directly from the books of original 
 entry 1 What book is an exception to these remarks? Why is it necessary 
 to wait till the last of the month to "bring up" this book 1 Give the initial 
 letters for the several Day Books used in this series. How are the books of 
 this series opened 1 What should the student remember to do, when the booki 
 of this series have been opened 1 
 
 1 1 
 
 t 
 
 STOCK AND PKOOF BOOK. 
 
 103 
 
 STOCK AND PROOF BOOK. 
 
 
 Philadelphia, Jipril 1st, 1847. 
 
 • 
 
 
 
 [Student] and Clarence Aubrey, hear- 
 
 
 
 
 ing the title of [Student's Name] & Au- 
 
 
 
 
 brey, have entered into partnership as per 
 
 
 
 
 articles of agreement, this first day of April, 
 
 
 
 
 1847, for the purpose of conducting the 
 
 
 
 
 Wholesale Dry Goods and the Hardware 
 
 
 
 
 business, each to share alike in gains and 
 
 
 
 
 losses. They have made investments to the 
 
 
 
 
 amount following their names respectively. 
 
 
 
 
 • 
 
 [Student.] 
 
 
 
 C.B. 
 
 Cash, deposited in Farmers & Mechanics* Bank, . 
 
 7000 
 
 00 
 
 B.B. 
 
 Acceptance., by Ben. Waters, Boston, drawn by James 
 Beck & Co. in fav. Frank Howard, dated Feb. 14th, 
 
 
 
 
 at 60 days, for 
 
 1000 
 
 00 
 
 M U 
 
 Notes, drawn in his favour, viz. : 
 
 
 
 
 by Frank Howard, at 30 days from Mar. 28th, 
 
 1000 
 
 00 
 
 
 by Austin Atwood & Co. at 60 days from Mar. 12th, 
 
 Total, 
 Clarence Aubrey. 
 
 1000 
 
 00 
 
 10000 
 
 00 
 
 
 
 C.B. 
 
 Cash, dep. in Farmers & Mechanics' Bank, . • 
 
 5000 
 
 00 
 
 D.B. 
 
 Merchandise, as per Inventory Stock Book, . 
 
 4500 
 
 00 
 
 B.B. 
 
 Notes, drawn in his favour, viz. : 
 
 
 
 
 by Wm. Rodgers, at 3 mos. from Jan'y 22d, for 
 
 400 
 
 00 
 
 
 by Thomas Morris & Co.,at90daysfrom Mar. 3d, for 
 
 600 
 
 00 
 
 D.B. 
 
 Store Fixtures, as per Schedule, valued at . 
 
 Total, 
 Debts, 
 
 495 
 
 00 
 
 10995 
 
 00 
 
 
 
 
 Assumed by the concern on account of C. Aubrey, viz. : 
 
 
 
 B.B. 
 
 His note in favour Samuel Williams, dated Jan'y 
 
 
 
 
 16th, at 90 days, for 
 
 350 
 
 00 
 
 (( u 
 
 His acceptance of N. Cunningham's Dft. fav. Robt 
 
 
 
 
 King, at 30 days from March 19th, 
 
 500 
 
 00 
 
 D.B 
 
 James Miller, due him on acc't. 
 
 Total, 
 
 125 
 
 00 
 
 975 
 
 00 
 
 
 
 
 
 
 r,\ 
 
 i\ 
 
ml 
 
 104 
 
 BECKER'S BOOK-KEEPING. 
 
 m 
 
 [transactions.] 
 
 Philadelphia^ Jlpril 4ihy 1847. 
 
 LB. 
 
 LB. 
 
 Bought of Harris and Otterson, (8 mos. Cr.) 
 a quantity of Mdse. as per their bill, amounting to 
 
 tr 
 
 Bought of Julian & Paul, (8 mos. Cr.) 
 a quantity of Mdse. as per their bill, amt'g to 
 
 aB. 
 
 Sold to Abraham Brooks, North Second st. (6 mos.) 
 4^ 1672. 1 Case Fine Check Prints, 36 ps. 
 
 10a5yds. 01 12 c. 
 
 1320. 1 Case 4-4 Rich Flower Pattern, 
 
 356. 1 Case Unbl'd Muslins, 20 ps. 
 
 665 yds. ^ 9 c. 
 
 8.B. 
 
 n 
 
 Sold to Richard Paine & Son, Wilmington, Del. (6 mos.) 
 4^ 1362. 2 Cases Fine Long Cloth Muslins, 
 
 36 ps. 1236 yds. (a) 20 c. 
 
 640. 1 Case Sup. Canton Flannel, 20 ps. 
 
 540i yds. I2i c. 
 
 LB. 
 
 Received per the Merchants' Line, from Deprez, Bruno 
 & Varnum, New York, pursuant to order, and for 
 our acc't, viz. : 
 4^ 1678. 2 Cases Large Plaid French Ging- 
 hams, 20 ps. .520 Metres,* 
 
 y<i8. {a) 28 c. 
 
 1976. 1 Case "Lupin's" Fine French 
 Merino, 30 ps. 840 Aunes,* 
 yds. & $1.50 
 
 The above is a copy of an invoice of goods received 
 from N. Y. for our acc't, and it is to be entered as if the goods 
 had been purchased in this market For directious, see In- 
 voice Book. 
 
 • All sales of dry goods must be calculated in yards ; all 
 other measures given must, therefore, be converted to yards 
 before the calculation can be made. 
 
 A metre ■■ ly^ yards. 
 
 An aune = IJ yards. 
 
 A brace » f yard. 
 
 735 
 
 1200 00 
 
 50 
 
 327 
 
 30 
 
 314 
 
 76 
 
 1732 
 
 73 
 
 S. B. 
 
 B.B. 
 
 LB. 
 
 S. B. 
 
 LB. 
 
 S. B. 
 
 S.B. 
 and 
 C.B. 
 
 THIRD SERIES.— FIRST PART. 
 
 [transactions.] 
 
 Philadelphia, ^pril 9lh, 1847. 
 
 Sold to Stephen Pancoast, Pittsburg, Pa. (6 mos.) 
 it 18647. 1 ps. Matteoni Lustring, 130 Braces, 
 
 yds. ^. & -^1.00 
 
 1363. 2 ps. Bl'k Lustring, SJ } 90 Aunes, 
 
 yds. & 1.50 
 
 184. 2 ps. Extra Chameleon Silks, ^l 
 
 56 Metres, yds. & ^ 2.00 
 
 // 
 
 Accepted Deprez, Bruno & Varnum's D'ft. dated New 
 York, April 8th, at 10 days sight, in favour of Eu- 
 gene Chase, . 
 
 10 
 
 Bo't of Booth & Brown, Auctioneers, (6 mos.) 
 a quantity of Mdse. as per their bill, amt'g to 
 
 12 
 
 Sold to Valentine Ketchum, Market street, (8 mos.) 
 
 4 doz. Ladies BPk ribb'd Silk Hose, (S» $18.00 
 
 5 " " "Dirby" " " & 30.00 
 4 " « White " " & 15.00 
 
 6 " " Dirby, White, " »* (with 
 clocks,) O 28.00 
 
 // 
 
 Bo't of Harris & Otterson, (8 mos.) 
 a quantity of Mdse. as per their bill amt'g to 
 
 // 
 
 Sold to Washington Troubat, Muncy, Lycoming Co., 
 
 Pa. (6 mos.) 
 3 ps. Pompadour Style Mous. de Laines, 
 
 2jj|72Aus. yds. • $1.25 
 
 2 ps. Very costly do. " 
 
 |J}20Mets. yds. O 
 
 1 ps. Polka Style do. ♦* 
 
 38 Aus. yds. 
 
 2 ps. New Style Cashmere, iq} 20 Aus. 
 
 yds. & 
 
 3 ps. Plaid do. 60 Aus. yds. & 
 
 2 ps. Linen Cambric, 20 Aus. yds. (a) 
 
 1.00 
 
 1.00 
 
 87i 
 1.50 
 
 13 
 
 Received Cash of Richard Paine & Son, in full for Bill 
 of Mdse. of 5th inst., amt. $ 
 
 Less Discount 5 p'ct. 
 
 f^T The above shows that Richard Paine & Son have 
 paid us in full for the Mdse. sold to them on the 5th inst., and 
 
 14 
 
 105 
 
 371 
 
 .33 
 
 1732 
 
 895 
 
 73 
 
 37 
 
 450 
 
 00 
 
 350 
 
 00 
 
 303 
 
 86 
 
 
106 
 
 i 
 i 
 
 B.B. 
 
 S-B. 
 
 LB. 
 
 C.B 
 
 BECKER'S BOOK-KEEPING. 
 [transactions.] 
 
 Philadelphia, April \^th, 1847. 
 
 that we have allowed them a discount of 5 p'ct. on the amount 
 of the bill. Therefore, if the am't has not already been ear- 
 ned to their account in the Ledger, the net amount may be 
 entered m the Cash Book to the credit of « Mdse." Before 
 this is done, however, the transaction must be closed in the 
 Sales Book. If there be not sulficient space at the bottom 
 of the entry to deduct the discount after the amount has been 
 footed, the amount must be carried forward to the first page 
 followmg; then will be the entry on that page : 
 
 Richard Paine «& Son, Wilmington, Del., 
 
 Am't bro't forward from page . , $000.00 
 
 Discount ofl^ 6 p'ct. . . . oo!oO 
 
 The net amount should be placed in the outer column, 
 and, m order that it may not be added in at the general foot- 
 ing of the sales on credit, red lines should be drawn through 
 the figures. In the margin, the word « Paid," with the date 
 of payment, should be written in red ink. Red lines must 
 also be drawn through the total amount where the sale was 
 first footed, and in the margin the word " Paid" must be writ- 
 ten, and reference made to the page to which the transfer 
 was made. 
 
 — U 
 
 Passed to Harris & Otterson, our Note at 8 mos. for 
 Bills of Mdse. of 4th & 12 inst.— Average date 
 
 I^ The student should here refer to the rule given in the 
 Mercantile Arithmetic appended to this work for calculating 
 average dates in cases of this kind. 
 
 16 
 
 Sold to Todd & Wainwright, Milton, Union Co., Pa., 
 
 J* irviro « «. _ (^ mos.) 
 
 ff 1878. 2 ps. Fine Drab MillM Cassimere, 
 
 84^ yds. & $3.25 
 
 2346. 2 ps. Fine Black «• «» 
 
 83| yds. (d 3.62^ 
 
 5646. 1 ps. Olive Green Cloth, 24 yds. & 5^00 
 
 17 
 
 Received of Oliver & Yamell, London, per Ship Dela- 
 ware, L. Coffin, master, pursuant to order, and for our 
 account, 10 Cases Mdse. amounting, as per Invoice 
 to £745 11a. 3<f. Stg., at 4a. 6rf. per dollar . * 
 
 Paid Cash for duty at Custom House on the 
 
 same, $994.08 
 
 " •* for Freight and other charges, 35.00 
 
 000 
 
 S.B. 
 
 C.B. 
 
 L B. 
 
 C.B. 
 
 B.B. 
 
 B.B. 
 
 D.B. 
 B.B. 
 
 U.B. 
 
 THIRD SERIES.— FIRST PART. 
 
 [transactions.] 
 
 Philadelphia, April 18M, 1847. 
 
 Sold to Reuben Goodyear, Harrisburg, Pa. (6 mos.) 
 8 ps. Lupin's Fine Fr. Merino, 228 Aus. 
 
 6 
 
 3 
 
 10 
 
 yds. 
 
 " Superfine English do. 
 — — yds. 
 Rodgers' Flannel, 156 yds. 
 Welsh " 67i " 
 
 Domestic " 285 " 
 
 & 
 
 112 Aus. 
 & 
 
 & 
 & 
 
 $1.75 
 
 1.00 
 
 87i 
 
 75 
 
 37i 
 
 19 
 
 Paid Cash for Clarence Aubrey's note, favour Samuel 
 Williams, due this day. 
 
 ff 
 
 Bo't of Booth & Brown, (8 mos.) 
 a quantity of Mdse. as per their bill, amt'g to 
 
 n 
 
 Paid Cash for Oliver & Yamell's Bill of Exchange in 
 favour of James Hamilton, dated London, March 
 15th, 1847, at sight, for je745 11a. 3(f. Stg., exchange 
 4a. %d, per dollar. 
 
 20 
 
 Received of Stephen Pancoast, his note at 6 mos., in full 
 for Bill Mdse. of 9th inst. 
 
 // 
 
 Passed our several notes on acc't as follows : 
 To Julian & Paul, at 8 mos. from 4th inst. being in 
 full for Bill Mdse. of same date. 
 
 To Booth & Brown, at 8 mos. from , being the 
 
 average date of two Bills Mdse. bo't April 10th, 
 at 6 mos. and Apl. 19, at 8 mos., and amounting to 
 
 // 
 
 Received of Reuben Goodyear, in full for Bill Mdse. 
 of 18th inst. amounting to $932.75 
 
 Discount allowed him on the same, 5 p'ct. 
 His draft on Kennedy & Co., our favour, at 3 days sight, 
 
 for 
 
 Cash for balance, . , . . • • 
 
 107 
 
 932 
 
 500 
 
 75 
 
 00 
 
 700 
 
 00 
 
 932 
 
 75 
 
108 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 Philadelphia, Jipril 2lst, 1847. 
 
 s. B. 
 
 Shipped to Henry Bainbridge, Charleston, S. ., ; , 
 fcJchr. Alert, J. Hand, Master, on his aec't a . r s.. 
 as per his letter 14 inst., the following invoice c 
 sundries: 
 
 ff<^B. 3 ps. Fine Drab Mill'd Cassimere, 
 
 94 yds. a $2.37 
 
 " Blk. W. D. Cassimere, 
 
 64iyd8. 2.50 
 
 " Oxford mix'd Cassimere, 
 
 160 yds. (2» 2.25 
 
 ** Assorted Green Cloths, 
 
 154i yds. 5.12^ 
 
 *♦ Brown Cloths, 63 yds. & 4.55 
 « Drab Mix'd Cloths, 
 
 47^ yds. 
 " Blk. Cloths, 115 yds. 
 " Blue " 43^ " 
 " Irish Linen, 395 ♦♦ 
 
 2 « 
 
 4 *« 
 
 5 " 
 
 ^Aj?. 3 " 
 
 5 " 
 
 ir<3>5. 20 " 
 
 25 " 
 
 
 
 
 
 Shirting Muslins, 825 yds. 
 
 3 packing boxes, & porterage, . 
 
 (( 
 
 3.00 
 5.00 
 4.62^ 
 55 
 12i 
 
 C.B. 
 
 // 
 
 C.B. 
 
 C.B. 
 
 Paid in Cash, Clarence Aubrey's acceptance of N. 
 Cunningham's Dft. favour Robt. King, due this day. 
 
 f/ 
 
 Paid Cash to (student's name,) on acc't, 
 
 ff 
 
 S.B. 
 
 Received through the Farmers & Mechanics' Bank, the 
 ani't of James Beck & Co's. Dft. on Ben Waters, 
 Boston, due 18th inst., 
 
 22 
 
 Sold to Samuel Williams, Chestnut St. (6 mos.) 
 6 doz. Ladies " Alexander's" Kid Gloves, & $6.00 
 
 3 " " Col'd " 
 
 4 " Gent's " «« 
 3 " " Buckskin 
 
 5 " " Woojlen 
 
 i« 
 
 « 
 
 5.50 
 
 8.00 
 
 4.0(» 
 
 3.00 
 
 // 
 
 
 C.B. Paid Deprez, Bruno & Varnum's Dft., accepted 9th 
 inst., in Cash, 
 
 3064 
 
 50 
 
 78 
 
 60 
 
 00 
 
 111 
 
 50 
 
 THIRD SERIES.-.FIRST PART. 
 
 [transactions.] 
 
 109 
 
 Philadelphia, jipril 22d, 1847. 
 
 C.B. 
 
 C.B. 
 
 S. B. 
 
 and 
 
 C.B. 
 
 Paid Cash to Clarence Aubrey, on acc't, 
 
 23 
 
 Discounted at 1 p'ct. per mo., our note, favour Julian & 
 Paul, due 4—7 Dec. 1847, am't $1200.00. 
 Discount allowed us on the same for 7 mos. 
 
 & 14 days. 
 Paid them the net am't in Cash, 
 
 u 
 
 S. B. 
 
 Sold to Gunn & Hopkins, South Second St., (Cash.) 
 1 doz. Ladies' Reviere Stitched L. C. Hdkfs., net. 
 1 « Gent's Cord. Bord. " " " & " 
 
 24 
 
 Sold to Thomas Shotwell, North 8th St. (8 mos.) 
 1 Carton 8 Broche Long Shawls, $30.00 
 1 " lOTerkerri " <» 12.00 
 
 1 " 6 Cashmere " ^ 10-00 
 
 1 «» 20 Blanket " <^ 3.00 
 
 S. B. 
 
 and 
 
 C.B. 
 
 25 
 
 Sold to Joseph Tindall, Easton, for Cash. 
 
 1 ps. Linen Cambric, 10 yds, $1.25 
 
 2 ^' " Lawn, 20 " 2.50 
 
 3 " Swiss Muslin, 30 Au's, yds, 50 
 
 5 " F. Balzorines, 100 Met's, yds. 87 i 
 
 2 '* French Lawns, 60 Au's, yds. 75 
 
 1 doz. Ladies' Music Stitch'd L. C. Hdkfs., $25.00 
 
 Disc't allowed him on the same, 5 p'ct. 
 
 C.B. 
 
 C.B. 
 
 — 26 
 
 Paid Cash to James Miller, in full, on account of 
 Clarence Aubrey, . . • • 
 
 ff 
 
 Received Cash per Commercial Bank, for Kennedy & 
 Co's acceptance, due .... 
 
 50 
 
 1200 
 
 36 
 13 
 
 00 
 
 00 
 
 480 
 
 244 
 
 700 
 
 00 
 50 
 
 49 50 
 
 00 
 
 43 
 
 00 
 
110 
 
 BECKER'S BOOK-KEEPING. 
 [transactions.] 
 
 Philadelphia, April 30th, 1847. 
 
 S. B. 
 
 Sold Merchandise to sundry person's this mo., as per 
 Petty Sales Book, viz : 
 
 William Lancaster, 
 John Rennie, 
 Charles Haines, 
 Evan Mitchell, 
 Jackson Goreras, 
 Henry Knox, 
 
 i4 
 
 (t 
 
 April 7, 
 
 9, 
 15, 
 
 18, 
 24, 
 
 
 Fol. 1. 
 1. 
 2. 
 3. 
 4. 
 6. 
 
 Ik 
 
 it 
 It 
 t( 
 
 C.B. 
 
 13^ The above is a list of petty sales made this month, 
 as per «' Petty Sales Book," from which each one is con- 
 densed in the Sales Book, in the following manner : 
 William Lancaster, April 7, per Petty Sales Book, fol. 1, $23.75 
 
 The several accounts are posted to "Sundry Debtors," 
 each mdividual for his respective amount. For directions, see 
 the article on "Explanation of Accounts in the Ledger, &c" 
 
 n 
 
 Paid Cash this mo. as per Expense Book, viz.: 
 April 4th, For porteragre on Mdse. 50 
 
 " 7th, For Fr't & porterage on two cases Mdse. 
 
 per Merchants' Line from N. York, 5.50 
 10th, For porterage, 50 
 
 11th, For advertising, 10.00 
 
 13th, For 1 gro. Steel pens, & 1 bottle red ink, 1.25 
 19th, For porterage, 25 
 
 
 
 The above are the several items of expense which the 
 cashier in actual business must add to the Balance of Cash on 
 hand, in making up his daily Cash account. At the end of 
 each month, the total amount of the Expense Book is credited 
 in the Cash Book, « By Charges Mdse.," without stating the 
 several items that compose it After the above has been 
 entered in the Cash Book, the student should ascertain the 
 difference between the Dr. and Cr. sides of Cash acc't This 
 difference will be the am't of Cash on hand, and the acc't is 
 closed " By Balance." 
 
 Li 
 
 23 
 18 
 35 
 28 
 29 
 15 
 
 149 96 
 
 75 
 20 
 00 
 73 
 15 
 13 
 
 19 
 
 00 
 
 J 
 
 POSTING AND PROOF OF THE LEDGER. 
 
 Ill 
 
 POSTING AND PROOF OF THE LEDGER. 
 
 Having entered all the transactions presented in this part of 
 the series in their respective books, as indicated by the iniiial 
 letters, the student may post the entries, taking up the books in 
 the following order: 
 
 1. The Sales Book, 3. The Cash Book, 
 
 8 « Invoice Book, 4. « Bill Book, 
 
 5. The Day Book. 
 
 The student must not forget to have these books correctly 
 footed. 
 
 When the work already described has been completed, a Trial 
 Balance must be taken off to prove the correctness of the post- 
 ings, and to show that every amount in the original books has 
 been posted to the Ledger. 
 
 The correctness of the Trial Balance may be proved by taking, 
 on another piece of paper, from the five Day Books used in this 
 series, an abstract of their total footings. The sum of these foot- 
 ings, if the books be correct, will be equal to the footings of the 
 Trial Balance. The following is the form of this abstract: 
 
 ABSTRACT FROM THE DAY BOOKS. 
 
 Names of Books. 
 
 Footing Totals 
 for April. 
 
 Footing Totals 
 for May. 
 
 Sales Book, 
 Invoice Book, 
 Cash Book, receipts, 
 
 do. payments. 
 Bill ) Receivable, 
 Book, \ Payable, 
 Day Book, 
 
 0000 
 
 00000 
 
 00000 
 
 0000 
 
 0000 
 
 0000 
 
 000 
 
 00 
 00 
 00 
 00 
 00 
 00 
 00 
 
 
 
 $000,000 
 
 00 
 
 
 
 The student should preserve his abstract made according to 
 the above form, as the blank column will serve for the purpose 
 of entering the Day Book footings for the month of May. 
 
 If the student has performed his work satisfactorily, he may 
 enter upon the second part of this series. This is composed of 
 purchases and sales in the Hardware business. 
 
 In what order should the books be posted ? How may the correctness of 
 the Trial Balance be proved ? Describe the form of the Mstractfrom the hooks. 
 
112 
 
 BECKER'S BOOK-KEEPING. 
 
 THIRD SERIES^-SECOND PART. 
 
 113 
 
 r 
 
 H 
 
 THIRD SERIES. 
 
 SECOND PART. 
 [transactions.] 
 
 Philadelphia, May Isi, 1847. 
 
 C.B. 
 
 The Fanners & Mechanics' Bank has collected and 
 placed to our credit, the am't of Frank Howard's 
 note, due 30th April, 
 
 I. B. 
 
 LB. 
 
 D.B. 
 
 C.B. 
 
 // 
 
 Received, pursuant to order, per the Merchants' Line, 
 from A. Richardson & Nephew, New York, an In- 
 Toice of Hardware, amounting to . , , 
 
 2 
 
 Bought of Childs & Maxwell, (8 mos.) a quantity of 
 Hardware, amounting as per their bill to . 
 
 // 
 
 William Rodgers' note, favour Clarence Aubrey, of 
 Jany. 22, at 3 mos., deposited in the Farmers & 
 Mechanics' Bank for collection, was this day re- 
 turned to us protested for non-payment, am't $400.1)0 
 
 Cash paid protest on the same, 1.50 
 
 BT The amount of the note mentioned above, with the 
 cost of protest, is to be charged to the drawer, Win. Rodgers ; 
 but should he prove insolvent, after waiting a reasonable 
 time, the whole am't of the note and protest, with the interest 
 for the time, would be chargable to C. Aubrey. 
 
 4 
 
 C.B. 
 
 8. B. 
 
 Received Cash of Evan Mitchell, in full for his acc't. 
 
 ff 
 
 Sold to William Rohrman, Wilmington, Del. (6 mos.") 
 
 Cask ' 
 
 I. 150 lbs. Hooks & Hinges, & 10 c. $ 
 
 100 »' Log Chain, 10 c. 
 
 125 " Ox " . I2i c. 
 
 20 pair 6i ft. Traces, 50 c. 
 
 10 " 7 " " & 87ic. 
 
 Cask, 1.00 
 
 Cask fs.oo 
 
 II. 3 doz. Frying Pans, ea. 
 100 lbs. Sadirons, & 
 I doz. Toy *« 
 
 Cask, 
 
 4.50 6.00 
 
 1 2 $ 
 15 c. 
 
 4.50 
 1.50 
 
 Carried forward, 
 
 2500 
 
 950 
 
 00 
 
 00 
 
 401 
 
 50 
 
 60 
 
 38 
 
 61 
 
 121 
 
 50 
 
 88 
 
 
 [transactions.] 
 
 
 
 Philadelphia^ May 4th, 1847. 
 
 
 Brought For w lid. 
 Cask #3.00 6.00 
 
 III. 20 doz. Hoes, ea. 6 7 in. $ 
 10 " " 6iin. Cdi $4 
 
 Cask, 1.50 
 
 121 
 
 221 
 
 344 
 
 b8 
 50 
 
 00 
 
 38 
 
 Cask #10.00 12.00 
 
 IV. 5 doz. Knob Locks, ea. 5 6 in. $ 
 3 " " " 7in (2> $15 
 1 " " " Sin. 18.00 
 
 #4 00 6.00 9.00 
 
 5 " Pad " ea. 1 2 3 
 
 #1.00 1.50 2.00 3.00 
 
 10 " " "ea. 4 5 6 7 
 
 Cask 1.00 
 
 MB^ The manner in which the sales of Casks No, 2, 3, 
 and 4, are inserted, shows how several lots of goods, each 
 containing the same quantity, but the price of each being 
 different, may be expressed in a single line. 'I'hus, the sale 
 of " 3 doz. Frying Pans" in Cask No. 2, would be thus ex- 
 pressed in the ordinary method : 
 
 3 doz. Frying Pans, $3.00 9.00 
 3 « « « \ 4.50 13.50 
 3 « " M % 6.00 18.00 
 
 687 
 
 
 $40.50 
 
 5 
 
 B B. 
 
 Accepted A. Richardson & Nephew's Dft., dated N. Y. 
 3d inst.,at 15 days sight, Wm. Bradford's favour, for 
 
 2500 
 
 00 
 
 8.B. 
 
 Sold to Thomas Cartwright, St. Louis, Mo. (6 mos.) 
 
 Cask 
 
 L 10 doz. Curry Combs, 6 Bar., (S> $1.50 $ 
 
 10 " " « 8 " ® 2.00 
 
 5 " Patent " 8 " 0> 2.50 
 
 Cask, 75 
 
 48 
 223 
 
 25 
 00 
 
 Case #12.00 18.00 
 n. 4 doz. Corn Scythes, ea. 50 54 in. $ 
 6 " Grass " $7.00 
 6 " " »' 10.00 
 
 Case, 1.00 
 
 fi 
 
 271 
 
 1 
 
 25 
 
 C.B. 
 
 Paid Ca^ to James Wilson, clerk, on acc't . 
 
 « 
 
 75 
 
 00 
 
 I 
 
 K% 
 
 15 
 
114 
 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, May eth, 1847. 
 
 
 C.B. 
 
 Bought of David Preston, for Cash, two lots in Monu- 
 
 
 
 
 ment Cemetery, Nos. 21 & 22, Section E, at . 
 
 7 
 
 150 
 
 00 
 
 S. B. 
 
 Sold to Thomas Hart & Co., Reading, Pa., for Cash, 
 
 
 
 and 
 
 1 doz. Plated Stirrups, $10.50 
 
 
 
 C. B. 
 
 1 " Ladies " 6.00 
 
 2 " Bridle Bitts, $4.00 8.00 
 1 Gro. xMartingale Rings, 7.50 
 1 " Buckles, 3 in., 3.00 
 
 
 
 
 
 35 
 
 00 
 
 • 
 
 
 Disc'toflfSp'ct. . 
 
 Q 
 
 
 
 B.B. 
 
 Received from Henry Bainbridge, per mail, on acc% 
 Williams & HaxalPs Dft., his favour, dated Rich- 
 mond, Va., May 3d, at 60 days sight, on Warring- 
 ton & Trump, N. Y., which we have deposited in 
 
 
 
 
 the Farmers & Mechanics' Bank for collection, . 
 
 12 
 
 1800 
 
 00 
 
 S. B. 
 
 Sold to Stephen Pancoast, Pittsburg Pa. (6 mos.) 
 
 4 Gro. Knives & Forks, No. 1. (3 $6.00 $ 
 
 5 " do. " " 2. 9jOO 
 
 I " do. •* " 3. 15.00 
 
 #2.00 2.00 3.00 
 
 1 Doz. do. •« ea. 4 5 6 
 
 #3.00 4.50 6.00 
 
 4 " do. " ea. 7 8 9 
 
 50 c. 1.00 a.oo 
 
 6 pair Carvers, ea. 10 11 12 
 
 
 
 
 1.50 3.00 3.50 
 
 
 
 
 3 «* »' ea. 13 14 15 
 
 
 
 
 Cask, 1.50 
 
 191 
 
 50 
 
 1 
 
 
 
 13 
 
 
 
 
 Valentine Ketchum having failed, compounds with us 
 
 
 
 
 at 50 c. on the dollar, for goods sold him on the r2th 
 
 
 
 
 ult., amounting to $450.00 
 
 
 
 
 Received in Payment, 
 
 
 
 B. B An accepted Dft. by L. Hill & Co., Thomas Scott's 
 
 
 
 favour, on Wm. Rhoads, Trenton, at 10 days from 
 
 
 
 • 10th inst., for 
 
 175 
 
 00 
 
 .C.B. 
 
 Cash, 
 
 50 
 
 00 
 
 D.B. 
 
 Lost the Balance, 
 
 * 
 
 225 
 
 00 
 
 
 450' 00 1 
 
 THIRD SERIES.— SECOND PART 
 
 115 
 
 [transactions.] 
 
 Philadelphia, May I4fh, 1847. 
 
 C.B. 
 
 Received Cash of Caleb Parker, on acc't of Clarence 
 Aubrey, for one quarter's rent of Dwelling-house in 
 Fifth St., due 12th inst., 
 
 // 
 
 150 
 
 00 
 
 8.B. 
 
 Sold to Edmund Winpenny, Cleaveland, Ohio, (6 mos.) 
 
 I. 6 Gro. Barlow Knives, No. 1, (S $ 8.00 $ 
 3 " do. " " 2, (2> 12.00 
 
 #2.00 3.00 
 
 6 doz. 2 Blade " ea. 3 4 
 
 #4.50 6.00 
 
 2 " " " ea. 5 6 
 
 #4.00 6.00 9.00 
 
 1 " 3 " " ea. 7 8 9 
 
 #2.00 3.(K) 4.50 
 
 2 »* 1 " Pen " ea. 10 11 12 
 
 Cask, 1.00 
 
 174 
 
 87 
 
 00 
 75 
 
 Box #1.00 1.50 300 
 
 IL 6 Trays, ea. 20 24 28 $ ' 
 
 #200 6.00 10.00 
 
 1 doz. W^aiters, ea. 10 12 14 in. 
 
 #6.00 12.00 18 00 
 
 1 nest " ea. i 1 2 3 
 
 Box 75 
 
 // 
 
 261 
 
 75 
 
 D.B. 
 
 C.B. 
 B.B. 
 D.B. 
 
 Received of Austin Atwood & Co. for their note No. 3, 
 due this day, am't $1000.00, 
 
 Cash, ■ . 
 
 Extension for balance by new note at 30 days $500.00 
 Interest added on the same for 33 d'ys, 2.75 
 
 500 
 502 
 
 00 
 75 
 
 Ic^ When a note is in part renewed, as in the above case, 
 it is best to charge the old note, with the interest on the trans- 
 action, to the'drawer or maker of the note, and to credit him 
 for the things received in payment, which, in this case, will 
 balance his account. 
 
 Iff 
 
 1002 
 
 75 
 
 D.B. 
 
 B.B. 
 C.B. 
 
 Effected a settlement with Wm. Rodgers for his note, 
 
 Clarence Aubrey's favour, due 25th ult. and protested, 
 
 am't of .note and protest on the same per his account 
 
 being $401.-50 
 
 Interest on the above from 25th Apl. to 
 
 date, is — days. 
 
 200 
 
 00 
 
 Received in Payrnent, 
 
 E. Cole's Dft. fav. John Warr, on Rex & Perry, at 30 
 
 days sight, accepted April 21st, for . 
 Cash for balance, 
 

 116 
 
 riki 
 
 ! 
 
 S. B. 
 
 C.B. 
 
 C.B. 
 
 C.B. 
 
 C.B. 
 
 C. B. 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, May 20th, 1847. 
 
 Sold to Samuel Williams, Chestnut St., (6 mos.) 
 150 lbs. Cast Steel, 
 100 " Blister" 
 100 " American « 
 6 doz. D Handle Shovels, 
 6 " D *» Spades, 
 6 " Long" " 
 
 6 " " " Shovels, 
 6 " Grave " 
 
 50 M. Sparobles, f in. 
 50 M. do. I in. 
 50 M. do. i in. 
 
 05 06 07 
 
 100 M. Tacks, ea. 3 4 6 os. 
 
 Forwarded the above per Boat Echo, to John Patterson, 
 Arch Spring, Huntingdon Co., as per his order of 
 19th inst. 
 
 & 
 
 18 c. 
 
 & 
 
 121 
 
 & 
 
 6 
 
 
 
 $7.50 
 
 m 
 
 7.50 
 
 m 
 
 9.00 
 
 & 
 
 9.00 
 
 m 
 
 12.00 
 
 m 
 
 10 
 
 m 
 
 11 
 
 
 
 12i 
 
 21 
 
 Received Cash of Todd & Wainwright, on acc't, per 
 hands of Mulford & Alter, .... 
 
 23 
 
 C. B. Paid in Cash, A. Richardson & Nephew's Dft. ac- 
 cepted 5th inst. and now due. 
 
 ff 
 
 Rec'd Cash of Wm. Rhoads, for his acceptance of L. 
 HUrs Dft. due this day. 
 
 24 
 
 Rex & Perry paid us in Cash the am't of their accept- 
 ance. 
 
 ff 
 
 D.B. 
 
 Received Cash of Wm. Lancaster, in full, for his acc't. 
 
 31 
 
 Paid Cash this mo. as per Expense Book. 
 May 1, For Frt. & porterage on Invoice of 
 Hardware from N. Y., per Mer- 
 chants' Line, #23.75 
 *» 2, For Porterage, 50 
 20, For Advertising, 10.00 
 
 t( 
 
 // 
 
 Credit James Wilson, clerk, for 2 mos. services ren- 
 dered—Salary $800 per annum. 
 
 350 
 
 25 
 
 300 
 
 34 
 
 133 
 
 00 
 
 25 
 
 33 
 
 CLOSING THE BOOKS OF THE THIRD SERIES. J[17 
 
 CLOSING THE THIRD SERIES. 
 
 Having entered in the several books the transactions pre- 
 sented this month, the stitdent will post up the books, in the 
 order described in the first part of this series. The exami- 
 nation of the footings, the taking of a Trial Balance and of the 
 Cay Book abstracts, are next to be attended to. 
 
 In actual business, it would now be necessary to take an ac- 
 count of " Stock," or to write in a book, called the Inventory 
 Stock Book, the present value of all the goods in the store, 
 unsold. As a general rule, however, merchants rale goods 
 a Uttle below their market value. 
 
 In the absence of goods, we have valued the Balance sup- 
 posed to remain on hand, unsold, at $10959.14. This will 
 enable the student to determine the gain or loss on the goods 
 sold. 
 
 The Store Fixtures, &c., are valued at five p'ct. less than 
 cost, which deduction is allowed for wear and tear. 
 
 The Grand Balance Sheet for the two months, April and May, 
 is now to be made out. For the present series, it should be 
 ruled somewhat differently from that heretofore in use. The 
 form used in the Introductory Set will serve as a guide in ruling 
 this. The first column of this sheet is for the Ledger folio ; the 
 second is for the titles ; the third embraces three subordinate 
 columns, e^ch of which is a double money column. The first 
 of these double columns is appropriated for the Dr. and Cr. 
 footings of the several acc'ts for the month of April ; the 
 second contains the same for the month of Mav; and the third 
 the " Total" Dr. and Cr. accounts for the two months. The 
 heading of the April and May columns is " Postings to the 
 Ledger from April 1st to May 31st, 1847." The fourth column 
 contains the value of the "Property Unsold." The fifth is for 
 " Profit & Loss," Dr. and Cr. The sixth is headed with the 
 student's name. Dr. and Cr. The seventh is for Clarence Au- 
 brey, Dr. and Cr., and the eighth for Balance, Dr. and Cr. 
 
 The sheet being ruled in this manner, the Trial Balance for 
 April is, first, to be copied ; the amount being placed in the 
 column appropriated to that month, the folios of the account? 
 being placed in the first column. Then the Trial Balance for 
 May is to be transcribed in its {)roper column, observing that to 
 
118 
 
 BECKER'S BOOK-KEEPING 
 
 CLOSING THE BOOKS OF THE THIRD SERIES. 
 
 119 
 
 * :4 
 
 all those acconnts whose names are already entered in the Title 
 column, il is only necessary to place the amounts in their re- 
 spective columns, headed May, and opposite the title to which 
 they respectively refer. All new accounts are afterwards to be 
 entered in regular order, with their respective amounts opposite 
 the titles. 
 
 Thirdly, When the folios, titles, and amounts have been en- 
 tered, the total amount of each account is to be placed in the 
 column headed "Total." If this "Total" be correct, it will 
 agree with the total obtained from the Ledger. 
 
 Fourthly, The value of the properly on hand is to be en- 
 tered in the column headed " Property Unsold." 
 
 Fifthly, There should be placed in the " Profit & Loss" 
 columns, the gains or losses on such accounts as cannot be other 
 wise balanced than by closing them into Profit & Loss. 
 
 Sixthly, The balance of the student's account, as it now 
 stands, should be entered in the columns headed with his name. 
 
 Seventhly, The balance of his partner's account is to be 
 placed in the column headed " Clarence Aubrey," taking care 
 to put the amount on the same line with the name in the Title 
 column. 
 
 Eighthly, The balances of the several accounts are to be en- 
 tered in the "Balance" column according to the directions given 
 in the Introductory series. 
 
 The amounts being all properly arranged, the student may 
 proceed to close the Balance Sheet, observing the following 
 order. 
 
 1. Add up the columns headed April. 
 
 2. Add « «* " May. 
 
 3. Add « " " Total. 
 
 4. Add " " " Property Unsold. 
 
 5. Add " « « Profit & Loss. 
 
 1 6. Close Profit & Loss columns for the difference, 
 
 " To (student's name)" for his one half gain, and 
 "To Clarence Aubrey" for his one half gain. 
 
 7. Add up the columns headed Balance and take the differ- 
 ence between the two, observing that this difference must be 
 equal to the sum of the student's and his partner's net capital. 
 
 8. Close (student's acc't) "To Balance, for his net capital." 
 
 9. Close Clarence Aubrey " To Balance, for his net capital." 
 After all these amounts have been entered, it will be found 
 
 that all the columns which have Dr. and Cr. balance of them 
 selves. 
 
 When the student has closed his Balance Sheet, he must 
 make closing entries in the Day Book, corresponding with those 
 made on his Balance Sheet, for the balances of the accounts in 
 the Ledger must agree with those in the Balance column of the 
 Balance Sheet. 
 
 To assist him in classifying these entries, we give the follow- 
 ing statement. The places occupied by O's, are to be filled with 
 the proper amounts. The differences, placed to the right, are 
 the gains or losses on the several accounts. 
 
 According to the Balance Sheet taken this day, the following 
 accounts show gains, which are to be closed into "Profit & 
 Loss," viz.: 
 
 Merchandise, 
 
 Total sales $0000.00 
 
 Goods on hand, valued at 00000.00 
 
 Interest, 
 
 Total cost, 
 
 Am't of Cr. side being 
 Am't ** Dr. « « 
 
 $00000.00 
 00000.00 
 
 $0000.00 
 
 000.00 
 
 
 00.00 
 
 00.00 
 
 
 $0000.00 
 
 The following accounts show losses, and must be balanced 
 "By Profit & Loss." 
 Store Fixtures, 
 
 Value per Dr. side $000.00 
 
 Present worth 000.00 $00.00 
 
 Charges Mdse. 
 
 To balance acc't 
 
 00.00 
 $00.00 
 
 The above should be entered and posted before the follow- 
 ing entry is made. 
 
 On examination of "Profit & Loss," we find that our busi- 
 ness during these two months have produced us a net gain, 
 which is to be divided and entered as follows : 
 
 To (Student's name,) for his one half net gain $0000.00 
 
 To Clarence Aubrey, for his one half net gain 0000.00 
 
 ioooooo 
 
120 
 
 BECKER'S BOOK-KEEPING. 
 
 rOURTH SERIES. 
 
 121 
 
 The Ledger should now be balanced according to the rules 
 for the "periodical closing of accounts," and the amounts 
 brought down, as when the acc'ts are to be left open and con- 
 tinued 
 
 In what order are the books of this part of the series to be posted 1 At what 
 prices do merchants generally Take their stock on hand, unsold 1 How are 
 Store Fixtures valued 1 Why ! Describe the manner of rulingr the " Grand 
 Balance Sheet" in this series. What is first to be inserted in this sheet 1 
 What next? How are these Trial Balances to be entered 1 What is to be 
 entered in the third place 1 What, fourthly 1 Fifthly] Sixthly? Seventhly? 
 Eighthly ? In closing the Balance Sheet, what is the first step ? The second ? 
 The third ? The fourth ? The fifth ? The sixth ? The seventh ? The eighth t 
 The ninth ? What must be done when the Balance Sheet has been closed 1 
 Repeat the form of the statement of gains and losses. What entry is to be 
 made after the statement has been entered and posted ? As the Ledger is to 
 De left open, that it may be continued, how must it be balanced ? 
 
 •* m I 
 
 FOURTH SERIES. 
 
 This series relates principally to the Shipping and Commission 
 business. In it the student is represented as acting in the 
 capacity of Book-keeper and Cashier to the firm of Hastings 
 &Co. 
 
 The Principal Books used in this series are the Cash Book^ 
 Bill Book, Day Book,* and Ledger. 
 
 The Auxiliary Books are the Commission Sales Book, Ac- 
 counts Current Book, Invoice Outward Book, Check Book, 
 Bank Book, and Letter Book. 
 
 The initial letters given in the margin before each transaction 
 refer to the Principal Books only. 
 
 As tlie use of these books have already been fully described 
 in the first and second series, the student is supposed to be now 
 familiar with the forms of entry adopted to them. 
 
 In this series, we have omitted the Blotter, which, in actual 
 business, contains the entries for all transactions, except those 
 relating to Cash. The entries are made in this book in Journal 
 
 * The Day Book, in actual bosinefis, in 8oraetime« known as the Jounitl, the onlj 
 difference between the two being that, in the former, the entries are accompanied with 
 explanations, whilst in the latter the explanations are dispensed with. In this series, 
 the terms are applied indiscriminately. The explanations, however, are given in this 
 series, whatever name may be used to designate the book. 
 
 form, as usual, and from it they are transcribed daily with all 
 the explanations in the Journal, from which they are posted to 
 the Ledger. 
 
 After the books have been opened, that is, after entries of 
 the partner's stock accounts have been made and posted, the 
 student, as a general rule, should post the entries, when he has 
 filled two pages of the Journal. By adopting this method, he 
 can refer to accounts in the Ledger when occasion requires him 
 to do so. 
 
 To assist him in making entries in the Auxiliary Books ac- 
 companying this series, directions for their use are given on the 
 cover of the blank books in which they are to be kept. 
 
 In this series, as in actual business of this kind. Merchandise, 
 in the hands of a concern and on their own account, is kept 
 under specific titles, which are derived from the name of the 
 goods which it represents. 
 
 Goods shipped on consignment, or delivered into the hands of 
 an agent, by the merchant or by others, according to his instruc- 
 tion, on his own or on joint interest and account with others, 
 are represented under the Ledger caption of Adventure. Each 
 Adventure is numbered in the order of its occurrence, and its 
 number must be the same as that which is placed over the in- 
 voice of the shipment or speculation, as copied in the Invoice 
 Outward Book. 
 
 Goods received on consignment, that is, to be sold for account 
 of others, and goods received from abroad, on our own account, 
 or on joint account with others, are represented under the title 
 of Sales. Each Sales is numbered and in the order in which 
 the Invoice for the same is received. The number must, in each 
 case, be the same as that placed over the corresponding Invoice, 
 copied in the Commission Sales Book. 
 
 The name of the party whose property the commission mer- 
 chant sells is never given in the transactions.* The Book- 
 keeper, therefore, makes in a small book, a memorandum of the 
 ^ goods and the number of the Sales to which they belong, as 
 indicated by the Commission Sales^Book. This is made at the 
 time the goods are received and for the purpose of assisting the 
 Book-keeper in making his Journal entries from the Waste 
 
 • In Forwarding houses, the name of the owner of the goods is given in the entry 
 in the Blotter. 
 
 L 16 
 
 ■*'i 
 
I 
 
 122 
 
 BECKER'S BOOK-KEEPING. 
 
 FOURTH SERIES. 
 
 123 
 
 Book, or Memorandum Book. In this book the pjirticulars of 
 the transaction are recorded in the following order : first is given 
 the date ; secondly, the name of the party ; thirdly, the descrip- 
 tion of the goods ; and, fourthly, the price. The margin on the 
 left is for the purpose of noting the quantity delivered, and, 
 when all the goods mentioned in the entry have been delivered, 
 the word " Delivered" is written, in red ink, in front of the entry. 
 When a memorandum of purchases is made in this book, the 
 word "Bo't" is prefixed to the name of the party, to distin- 
 guisli the purchase from a sale. No entries of such memoran- 
 dums are made in the Journal till the bill of the goods has been 
 received. 
 
 We would recommend to the student the adoption of the plan 
 just described. By making, on a piece of paper, a memorandum 
 of the Invoice of goods received, he will be able to tell at once 
 the sales which should be credited when any of the invoiced 
 goods are disposed of and the sales that should be charged for 
 expenses paid on any of the said goods, either on the receipt of 
 them or afterwards. 
 
 Before making the Day Book entries for each partner's in- 
 vestment, entries must be made of those items having this 
 mark {%/') before them in the Stock and Proof Sheet and they 
 should be made in those books, in which the original entry of 
 them should always appear. 
 
 The Day Book entry for each partner's Stock acc't should 
 contain the whole amount of his investment ; therefore, those 
 items which have been entered first in the books, as directed 
 above, must be checked off in them, as the transcript of each 
 item is made. 
 
 After the books have been thus opened, the student will strike 
 the Balance of Cash, which will give the amount on the Dr. 
 side of the new account to be opened in the Cash Book. Then, 
 all sums received or paid away by the concern, whether by 
 check, bank not*, or specie, are to be entered in the Cash Book 
 at the time when received or paid away. As has been stated 
 in the other series of this work, the entries of the Cash Book" 
 may be Journalized in the Day Book, daily, semi-weekly, or 
 weekly. In this series we have deferred the process of Jour- 
 nalizing till the end of each month, in consequence of the limited 
 number of transactions in a work of this kind. 
 
 In the transactions of this series all amounts of Cash received 
 in any one day should be entered in the Bank Book as one de- 
 posit after the same have been entered in the Cash Book. 
 
 The amoinits of Cash represented as having been kept on 
 hand (that is out of bank) to meet the contingent expenses of 
 the establishment, are, in this series, noted in the transactions, 
 and, of course, they are not entered in the Bank Book as deposits. 
 
 When a check has been drawn on the bank for any sum of 
 money to be applied by the Cashier as "change," no entry for 
 the same is to be made in the Cash Book. An entry is to be 
 made merely in the Check Book, to show that a certain sum has 
 been withdrawn from the bank. The amount withdrawn must, 
 in actual business, be accounted for, in balancing the Cash ac- 
 count, as money kept on hand, unless it has been appropriated 
 for small payments. 
 
 In this series, as in business, all large amounts paid in Cash 
 are paid by check on the bank, and are, therefore, entered in 
 the Check Book, before an entry is made in the Cash Book. 
 
 To what business does the fourth series relate? How does it represent the 
 student 1 What are the Principal Books used in it! What are the Auxiliary 
 Books? What books of this series are represented by initials] How is the 
 Journal of this series kept? How often should the entries be posted, as a 
 general rule ? What advantage arises from this method 1 How is the student 
 assisted in making entries in the Auxiliary Books 1 How is Mdse. acc't kept 
 in this series? What does "Adventure" acc't represent? What are repre- 
 sented on the title of " Sales ?" How is each Adventure characterized ? Each 
 Sales ? Is the name of the owner of the goods given in the transactions ? What 
 means, therefore, does the Book-keeper take to assist his memory ? Describe 
 the Memorandum Book. Give the order in which the details of transactions 
 are to be entered ? How is a purchase distinguished from a sale, in this book? 
 When are entries of such memorandum made in the Journal ? What plan is 
 submitted to the student for the accomplishment of the purposes of a memo- 
 randum book? What Day Book entries should be made first? What must 
 the Day Book entry for each partner's stock account contain ? What precau- 
 tion must be taken in consequence ? How is the am't on the Dr. side of 
 Cash at the opening of the new acc't to be ascertained ? At what time are 
 entries to be made in the Cash Book? How often is the Cash Book Journal- 
 ized in this series? Is this the universal practice in business? In what 
 book should Cash received generally be entered after it has been entered ia 
 the ('. B. ? How can the student tell whether he is to enter the Cash recM 
 in the Bank Book or not? In what book is money withdrawn from Bank, to 
 be kept on hand, entered ? Why is it not entered in the Cash Book 1 
 
124 
 
 I 
 I 
 
 D.B. 
 
 ^ 
 
 f \ 
 
 ■ 
 
 I,' 
 
 D.B. 
 
 BECKER'S BOOK-KEEPING. 
 
 STOCK AND PROOF SHEET. 
 
 Philadelphia, June 1st, 1847. 
 
 Inventory of the Joint Effects of Edward 
 Hope, as the Special Partner, and Osgar 
 Hastings and Thomas Merrick as the Act- 
 ing Partners, trading under the title of 
 
 Hastings & Co., 
 
 as per articles of agreement entered into the 
 28th ult., for the purpose of conducting the 
 General Merchandising and Commission 
 Business, Hope is to share |, Hastings and 
 Merrick are to share each | of the gains and 
 losses. Interest accounts are to be kept with 
 the parties. 
 
 Edward Hope's Effects are as follows: 
 
 v^Cash, on Deposit in Philadelphia Bank, . 
 y/J. Clark & Co.'s set of Exchange, dated N. Y., May 
 27th, at 30 days sight, Win. Ward's favour, on Bar- 
 ing & Co., London, for ^6411 18s. Stg., $1830.66 
 Premium 9^ p'ct. allowed him on do., 169.34 
 
 Total, 
 __ The student will remember that in the "Rules for 
 opening and closing accounts," we stated that Bills Receiv- 
 able and Bills Payable must, invariably, be debited or credited 
 for the amount on the face of the Note, Dft., or Bill of Ex- 
 change, at the time of receiving it or passing it away. There- 
 fore the premium allowed E. Hope on the above bill must be 
 charged to « Interest," « Profit & Loss," or " Premium" acct. 
 In this series we have placed it to Interest. When we dis^ 
 pose of the bill, the amount of premium obtained on it must 
 be credited to the account to which we placed the charge 
 when we received the bill. 
 
 Osgar Hastings' Effects are: 
 
 \/Cash on dep. in Phila. Bank, . 
 1500 Bbls. S'fine Flour, valued at 
 Brig Patrick Henry, valued at . 
 
 Total, 
 
 8000 00 
 
 D.B. 
 
 2000 00 
 
 10000 
 
 00 
 
 2500 00 
 6187 ! 50 
 
 8000 
 
 16687 
 
 00 
 
 50 
 
 D.B. 
 
 FOURTH SERIES. 
 
 125 
 
 [stock and proof sheet continued.] 
 
 Philadelphia, June 1st, 1847. 
 
 Thomas Merrick's Effects are: 
 
 \/Ca8h on dep. in Phila. Bank, .... 
 200 Bbls. Rye Whisky, 6240 gals. 20 c. 
 
 v^Morris & Young's Dft. his fav. on Wray & Co., Bal- 
 timore, at 60 days sight, accepted April 13th, 
 
 %/ Henry Bishop's note, Hicks & Co.'s favour, dated 
 March 8th, at 3 mos. ..... 
 
 Total, 
 
 The above two notes we have deposited in Phila. Bank 
 for collection. 
 
 Recapitulation. 
 
 Edward Hope's total investment, 
 Osgar Hastings' total 
 Thomas Merrick's total 
 
 (( 
 
 4( 
 
 $10,000.00 
 16,687.50 
 13,800.00 
 
 Hasting & Co.'s total capital, 
 
 $40,487.50 
 
 10000 
 1248 
 
 2000 
 552 
 
 00 
 00 
 
 00 
 
 00 
 
 13800 
 
 00 
 
 [transactions.] 
 
 Philadelphia, June 2d, 1847. 
 
 Shipped Starch and Flour per Schr. Mary, A. Gihon, 
 master, bound to New York, and consigned to Ser- 
 voss & Cavada there, to be sold for our account and 
 risk, which we bought as follows : 
 
 From Chas. Baeder&Co. 
 
 <h) 100 Bbls. Starch, net 14755 lbs. (S 5 c. $ 
 
 <^ 
 
 100 Boxes " 
 
 3576 " (2)6^ 
 
 Taken from Store, 
 
 W,R. 500 Bbls. S'fine Flour, O 
 
 Charges, for shipping-expenses on do. viz. : 
 
 Inspection and Lining Flour, 3 c. 
 
 Drayage and Labour 
 
 $4^ 
 
 $ 
 
 20.50 
 
 Effected Insurance by the American Insurance 
 Co. on this shipment, valued at $3084,61 at 
 ip'ct. Policy, $1.00, .... 
 
 3084 
 
 61 
 
 L2 
 
126 
 
 BECKER'S BOOK-KEEPING. 
 
 FOURTH SERIES. 
 
 127 
 
 * 
 
 
 ill 
 
 I 
 
 tti 
 
 [transactions.] 
 
 Philadelphia^ June 3d, 1847. 
 
 C.B. 
 
 C.B. 
 
 and 
 
 B.B. 
 
 Sold for Cash to Wm Jones, at 10 p'ct. Premium, 
 J. Clark & Co.'s set of Exchmze, received of Ed- 
 ward Hope, 1st. inst. for j^-lil 18*. Stg., 
 Premium, 10 p'ct. 
 
 We have deposited $1800 of this amount in Phila. 
 Bank : the balance, JJ213.72, being kept on hand for 
 Cash purposes. 
 
 // 
 
 C.B. 
 
 RB. 
 
 Discounted at | p'ct. per mo. Vicar & Rice's note, 
 favour Edward Mason, at 4 mos. from 12th ult. 
 for $1764.50. 
 
 Discount allowed us on do. for — days, 
 Paid the net amount by our check on Phila. Bank. 
 
 Received per Boat General Taylor, from Cresswell & 
 Co., Lewistown, Pa., to be sold for their account and 
 our risk, 
 
 18 Bars Iron, 
 233 Bundles, " 
 165 Flat Blooms. 
 Paid Cash, for Freight on do. 15 Tons, & $5.00 
 Wharfaore, " & 20 c. 
 
 Drayage to Store, " & 37^ 
 
 i( 
 
 ti 
 
 2013 
 
 8 
 
 Sold to Benners, Badger & Co. 
 200 Bbls. Rye Whisky, 6240 gals. 
 
 
 
 25 c. 
 
 
 11 
 
 Wm. Forepaiigh & Co., Boston, John Duplaine, Halifax, 
 N. S., and ourselves, have agreed that each of us 
 may, from time to time, make the others shipments 
 of such goods as shall be deemed best adapted to 
 their respective markets, with instructions for the 
 sale of the same. Each party is to share alike in 
 charges and in gains and losses, and to be allowed 
 2^ p'ct. commission on sales and shipments on Co.'s 
 account. 
 
 An Exchange acc't in Co. for premiums on remittances, 
 is to be kept by us with the other two parties, each 
 party to share alike in the gains or losses on the same. 
 
 In pursuance of said agreement, Wm. Forepaugh & Co. 
 advise us that they shipped on the 8th inst. per Schr. 
 Ellen, M. Parker, master, to Halifax, N. S. and con- 
 
 72 
 
 83 
 
 62 
 
 [transactions.] 
 
 Philadelphia, June llth, 1847. 
 
 D.B. 
 
 signed to John Duplaine there, to be sold on Co.'s 
 acc't, 
 
 1000 Bbls. S'fine F^our, $4A , f 
 200 Bbls. Rye '<• sX, 
 100 Bbls. Corn Meal, 2 i, 
 
 1 
 I 
 
 1 
 
 
 Inspection & Lining, (2) 3 c. $ 
 Drayage, $25, Labour & Cooperage, $18.50, 
 Commission on {t>.5262.50 fa) 2^ p'ct. 
 Insurance on $5518.95 at ^ p'ct. and Policy $1, 
 
 Due June 8th, 1847. 
 Our J am't of the above Invoice is . . • 
 
 5518 
 
 95 
 
 1839 
 
 65 
 
 C.B. 
 
 Paid to Chas. Baeder & Co.i in full for bill of Starch, 
 bought 2d inst., by our check on Phila. B'k. 
 
 1** 
 
 
 
 C.B. 
 
 The Phila. Bank has collected and placed to our credit, 
 the am't of Henry Bishop's note, due llth inst. 
 
 
 
 D.B. 
 
 Sold to Rob't Wayne, (6 mos.) 
 
 165 Flat Blooms, net 10 Tons, & $65, 
 
 Cwt. qr. lb 
 
 10 Bars f inches, net 10 O 85 
 
 692 
 
 50 
 
 I'S 
 
 D.B. 
 C.B. 
 
 Received per Brig Swan, H. Johnson, master, from 
 Boston, and consigned to us by Wm. Forepaugh & 
 Co. there, to be sold on their, John Duplaine, Hali- 
 fax, N. S., and our equal joint acc't, 
 400 Bbls. No. 1 Mackerel. 
 375 " " 2 " 
 50 " "3 " 
 Amounting per Invoice to $4887.33, {due June Gth,) of 
 
 which our J am't is 
 
 Paid Freight on the above 825 Bbls. mackl. O 35 c. by 
 our check on Phila. Bank. 
 
 // 
 
 1629 
 
 11 
 
 B.B. 
 
 and 
 
 D.B. 
 
 Received of Benners, Badger & Co., their note at 60 
 days from 8th inst. in full for am't of their acct. $ 
 Interest added on do. for 63 days. 
 
 
 
1 
 
 I 
 
 t i^\ 
 
 I 
 
 128 
 
 D.B. 
 
 B.B. 
 
 C.B. 
 
 C.B. 
 
 D.B. 
 
 and 
 
 B.B. 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia^ June 16M, 1847. 
 
 Bo't of James Brown & Co., (4 mos.) 
 
 (y 100 Hhds. Kentucky Tobacco, net 99,000 lbs. 
 at 4 c. 
 
 Shipped the same per Ship Herman, P. Schwartz, 
 master, to Amsterdam, and consigned to Boehm & 
 Son there, to be sold for our acc't. 
 
 Charges for shipping expenses on the above, viz. : 
 
 Drayage, Labour, and Cooperage, 
 Effected insurance by the Atlantic Insurance Co. on 
 
 this shipment, valued at $4098.97 at 2i p'ct. Pol. $1. 
 
 and passed our note for the same, at 60 days. 
 
 n- 
 
 // 
 
 Received through the Philada. Bank, the amount of 
 Morris & Young's Dft. on Wray & Co., Baltimore, 
 due 15th inst. 
 
 18 — 
 
 Received per Ship Dolphin, W. Harris, master, from 
 Carson & Trasel, New Orleans, to be sold for their 
 acc't and risk, 
 
 50 Hhds. N. O. Sugar, net 61600 lbs. 
 
 Paid Cash for Freight on do. by our check on Philada. 
 
 Bank, 
 
 " •* for Labour, rolling do. into Store, 
 
 // 
 
 Accepted Wm. Forepaugh & Co.'s Dft., dated Boston, 
 June 15th, at 3 days sight, favour J. R. Lamb, for 
 
 D.B. 
 
 D.B. 
 
 19 
 
 Sold to George Bellis & Co., 
 100 Bbls. No. 1 Mack'l, O $9, 
 50 " " 2 " & 6.50, 
 
 20 Hhds. N. O. Sugar, (6 mos.) 
 net 24860 lbs. 
 
 6 c. 
 
 if 
 
 Sold to Henry Barron, (6 mos.) 
 50 Bundles Iron, y*g rods, 
 
 ^0 " " t " Ton,. Cwt. qrs. lbs. 
 
 30 « « li " 3 4 3 22,0 $90. 
 
 35 
 
 4098 
 
 50 
 
 97 
 
 150 
 3 
 
 153 
 
 00 
 00 
 
 00 
 
 1800 
 
 00 
 
 27161 60 
 
 FOURTH SERIES. 
 
 [transactions.] 
 
 Philadelphia, June 20th, 1847. 
 
 C.B. 
 
 D.B. 
 
 and 
 B.B. 
 
 D.B. 
 
 Received per Boat Echo, from Stewart & Horrel, Alex- 
 andria, Pa., to be sold for their acc't, 
 1800 Bus. Wheat, 
 
 25 " Cloverseed, 
 500 Bbls. Flour. 
 
 Paid for Freight, by our check on Phila. Bank, 
 on Wheat, ® 17 c. -p- Bus., 
 " Cloverseed,® 20 c. ^ " 
 Flour, O 50 c. ^^ Bbl. 
 
 (( 
 
 '/ 
 
 Received of Robt. Wayne, his note at 6 mos. from the 
 11th inst., to balance his acc't. 
 
 // 
 
 D.B. 
 
 Shipped per Brig Patrick Henry, John Wade, master, 
 bound to Boston, and consigned to Wm. Forepaugh 
 & Co. there, to be sold for their, John Duplaine, and 
 our equal joint acc't, 
 
 2000 Bus. Yellow Corn, (Bo't of Wm. Smith,) & 41 c. 
 521 " " " (Bo'tofBoulton&Co.)(2)42c. 
 
 KKK) Bbls. S'fine Flour, (from Store,) (S) $41, 
 
 Charges, Inspection & Lining, 3 c. ^ Bbl., ^ 
 Cooperage $8.50, Labour Il2.00, 
 
 Commission on $5413.82 at 2^ p'ct. 
 Insurance effected by the American Ins. Co. on this 
 shipment, valued at $5642.98, & | p'ct. Policy $1. 
 
 Wm. Forepaugh & Co.'s ^ am't of the above, $1880.99 
 John Duplaine's | " " »* 1880.99 
 
 Our (Hastings & Co.) | ♦* ** «* 1881.00 
 
 129 
 
 561 
 
 00 
 
 5642 
 
 98 
 
 Due June 20/A. 
 
 $5642.98 
 
 S** In this transaction the Adventure is to be debited for 
 the whole amount of cost and charges in one entry ; and, in 
 another, the same account is to be credited for the share ad- 
 vanced on account of Wm. Forepaugh & Co. and of John 
 Duplaine. The difference between the two sides of the Ad- 
 venture, when posted, will be the remaining one third of the 
 whole am't constituting Hastings & Co.'s share of the invest- 
 ment 
 
 // 
 
 D.B. 
 
 Effected insurance, by the American Ins. Co., on the 
 Brig Patrick Henry to Boston and back to Philada., 
 val. at $8081.82, at 1 p'ct. Policy $1. 
 
 17 
 
 !| 
 
 t I 
 
\i * 
 
 
 130 
 
 D. B. 
 C.B. 
 
 D.B. 
 
 .1 
 
 C.B. 
 
 D.B. 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, June 2lst, 1S47. 
 
 Delivered to James Brown & Co. to close their account, 
 
 am't -^i.^lJliO.OO, 
 Our note at 4 mos. from 16th inst. for . . • 
 Paid the balance (less l^ p'ct. disc't) by our 
 
 check on Philada. Bank, # 
 
 Discount allowed us, 
 
 23 
 
 
 Received advice from Bates & Rice, New York, per 
 their letter of 20th inst., that they shipped per Ship 
 Northumberland, D. Evans, mater, pursuant to our 
 order, to the address of Carson & Trasel, New Or- 
 leans, to be sold for our acc't, 
 
 y^\ 178^ 1 Case Indioro Blue Satinet, 
 "^ 28 ps. 840^ yds. 
 
 2 Cases Plaid Cassimeres, 
 
 # 176 456 } 91K) yds. 
 2 Cases Fancy Striped Jeans, 
 
 ^220 53^J } 1057 yds. 
 
 2 Bales 4-4 Scarlet Flannels, 
 
 ^'^ 3?5i } 7a5i yds. 
 
 Drayaae 31 c, Bilfof Lading, &c. 50 c. 
 Commission on 5^2292.16 at 2i p'ct. 
 
 2000 
 
 00 
 
 3960 
 
 00 
 
 62^ c. 
 & $1.12i^ 
 37i 
 
 45 
 
 f 
 
 ^ In making the Day Book entry of this shipment, we 
 exclude tlie items from the explanation, and refer for parti- 
 culars to the Invoice received, a copy of which must he made 
 in the Invoice Outward Book. 
 
 24 
 
 Paid our acceptance of Wm. Forepaugh & Co.*s Dft. 
 due this day, by our check on Philada. Bank. 
 
 ff 
 
 Shipped per Schr. Anna, E. Brown, master, bound to 
 Richmond, Va., and consigned to Williams & Haxall 
 there, for their accH and risk, as per their letter of 
 19th inst. 
 
 100 Bbls. Rye Whisky, (Bo't of Carlisle & Gaskill,) 
 33, 136, 37, 34i,32, 31, 30i,36,K/ 
 ;^i 32 * ) /* 
 
 3.5,^36^,34, 35, 37, 39, 40, 32, ) j, 
 
 31, 31, 34, 36, S 
 37, 38, 40, 37i,a5, 34, 31, 3i3, 
 
 32, 30, 31, 30i, 38, 36, 34, 35, ^ , 
 
 37, 130, 3U,:3;3, 31, 31i,34, 37, 
 
 38, 39^,40, 32, 3:1, 
 
 2350 
 
 27 
 
 D.B. 
 
 C.B. 
 
 D.B. 
 
 FOURTH SERIES. 
 
 [transactions.] 
 
 131 
 
 Philadelphia, June 241 h, 1847. 
 
 36, 38i,35, 38, 31, 30, 30^,32, 
 31, 37, 39, 31, 30, 33i,34, 36, 
 
 37, 34, 33, 32, 30, 33, 31^,29, 
 37, 38, 3.ji,33, :30, 
 
 33, 34, a5i,31, 30, 32, 37, 36, 
 
 37^,38, 32, 31, 30, 32, 29i, 33, 
 
 31, 30, 36, 37, 
 
 Charges — for Drayage, 
 Commission on $ at 2^ p'ct., 
 
 gals. ^ 21 c. 
 $5.00 
 
 IW It is not necessary that the contents of each barrel, 
 and the strength of the whisky be given in the Day Book, 
 since to insert them would merely be giving a copy of the bill 
 of purchase received of Carlisle & Gaskill. The entry should 
 be made in the same manner as that of the sale of the 8th 
 inst. after the student has ascertained the whole contents of 
 the 100 Bbls. — A full copy of the shipment must lie made in 
 the Invoice Outward Book. For explanation of the calcula- 
 tion, see Mercantile Arithmetic in this work. 
 
 745 I 72 
 
 // 
 
 Sold to J. L. Sprague & Co. 
 250 Bbls. No. 1 Mackerel, 
 300 " "2 " 
 40 »• " 3 
 
 i( 
 
 
 $9i, 
 
 4i. 
 
 26 
 
 Received per Brig Sun, Mark Snow, master, from Hali- 
 fax, N. S., and consigned to us by Quick, Baker & 
 Co. there, to be sold for their acc't, 
 
 27 Casks Oil. 
 Paid Cash, for Freight, $ 4.25 
 
 Duty & permit, 35.60 
 
 4433 
 
 75 
 
 a 
 
 C. B. 
 
 C.B. 
 
 28 
 
 Delivered to Carlisle & Gaskill, our Dft. at 3 days sight, 
 on Wm. Forepaugh &Co., Boston, in full for bill of 
 Whisky, bought 24th inst. 
 
 ff 
 
 Paid Bates & Rice's Dft. on us at sight, fav. Ben. Mor- 
 ris, by our check on Phila. Bank. 
 
 // 
 
 Paid the American Ins. Co. by our check on the Phila. 
 Bank, in full for premiums due them for insurances. 
 
 39 
 
 85 
 
 2350 
 
 27 
 

 ' IT ' 
 
 tM' 
 
 fl 
 
 132 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, June 28///, 1847. 
 
 C.13. 
 
 Sold to John Andrews, for Cash, 
 
 1800 Bus. Wheat, 
 
 lb. oz. 
 
 100 Bus. 57.5 100 Bus. 
 
 60. 
 59. 
 
 58.8 
 60.3 
 61. 
 
 100 
 100 
 100 
 100 
 100 
 100 
 100 
 100 
 
 4t 
 it 
 ti 
 
 ii 
 
 i( 
 
 it 
 
 60. 
 
 59.10 
 
 58.6 
 
 100 
 100 
 100 
 100 
 100 
 100 
 1(K) 
 100 
 
 ti 
 t( 
 t( 
 u 
 n 
 n 
 (i 
 ii 
 
 Headraeasurinor on do. 7 c. ^ hundred, 
 
 lb. oz. 
 59. 
 
 58.6 
 57. 
 60.4 
 61.2 
 60. 
 59.10 
 58.3 
 57.6 
 = Bus. (2) $1J. 
 
 ^^ For the manner of calculating the weight of Wheat, 
 see Mercantile Arithmetic 
 
 D.B. 
 
 D.B. 
 
 and 
 
 B.B. 
 
 C.B. 
 
 D.B. 
 
 28 
 
 Received of J. L. Sprajrue & Co., in full to balance 
 their acc't, am't {^44:i3.75, 
 
 An accepted Dft. drawn by Lemuel Willcox, in their 
 favour on WilJcox & Dallett, Boston, at 60 days sight 
 from 20 ult. which we havo remitted to Wm. Fore- 
 paucrh & Co., for 
 
 Their Note at 30 days from 24th inst. (dep. in Philada. 
 Bank,) 
 
 Cash for balance, 
 
 1998 
 
 02 
 
 Disc't off on L. Willcox's Dfu for 28 days, $ 
 their note " 33 days. 
 
 ii 
 
 $ 
 
 B.B. 
 
 29 
 
 Received of Servoss & Cavada, N. Y., an accU Sales 
 of Starch & Flour shipped per Schr. Mary, on the 2d 
 inst., net proceeds beinjr, {Jue Junt '2^lh, 1847,) . 
 
 2000 
 1000 
 
 00 
 00 
 
 J. 
 
 D.B. 
 
 C.B. 
 
 On examination of Adventure No. 1, we find that it 
 
 shows a irain of 
 
 f0 
 
 Paid Bou1ton& Co. in full for bill of Corn of 20lh inst. 
 by our check on Philada. Bank, 
 
 3865 
 
 34 
 
 FOURTH SERIES. 
 
 [transactions.] 
 
 Philadelphia, June 30ih, 1847. 
 
 D.B. 
 and 
 B.B. 
 C.B. 
 
 Received of Geo. Bellis & Co. in full to balance their 
 acc't, their note at 6 mos. for bill of Sugar of 19th 
 
 inst. 
 
 Cash for bill of Mackerel of same date, 
 
 D.B. 
 
 // 
 
 B.B. 
 
 and 
 
 D.B. 
 
 Sold to Alexander Morton & Son, (6 mos.) 
 
 -ion n ^^*- •!"• '*' 
 
 133 Bundles assorted Iron, 18 2 24 
 8 Bars | in. "800 
 
 
 
 $75 
 
 85 
 
 // 
 
 Received of Henry Barron, his note at 6 mos. from 19th 
 inst. in full for bill of Iron of same date. 
 
 D.B. 
 
 // 
 
 Closed Sales No. 1, for Cresswell & Co.'s consign- 
 ment of Iron per Boat General Taylor, all sold, and 
 furnished them an acc't sales — Total sales being 
 
 $1088.93 
 Charges already posted, 83.62 
 
 $1005.31 
 
 JIfter Charges, 
 
 Storage & Labour on Sales '$1088.93 at 1 p'ct. . 
 Commission & Guarantee on Sales $1088.93 at 5 p'ct. 
 Cresswell & Co.'s net proceeds, {due ) 
 
 tW All sales must be closed in the Sales Book before 
 making Day Book closing entries f«r them. 
 
 // 
 
 C. B. Paid Cash this month, as per Petty Cash Book, 
 
 for sundry expenses, .... 
 
 I^" The student should now balance his Cash Book and 
 Journalize it in the Day Book, in the same manner as in the 
 Second Series. The difference between the two sides of 
 Cash acc't in the Ledger must equal the Balance brought 
 down in the Cash Book for the next month ; and in actual 
 business, it must also equal the Balance of Cash in Bank 
 and on hand. 
 
 When the student has drawn off from the Ledger the 
 montnly Trial Balance to prove the correctness of the post- 
 ings, and has ascertained that all his work has been per- 
 formed satisfactorily, he is prepared to enter upon the next 
 month's business. 
 
 M 
 
 133 
 
 104 
 
 18 
 
 10 
 54 
 
 89 
 45 
 
 80 
 
 75 
 
• 
 
 134 
 
 BECKER'S BOOK-KEEPING. 
 
 FOURTH SERIES. 
 
 135 
 
 I 
 
 
 C.B. 
 
 D.B. 
 
 D.B. 
 
 and 
 B.B. 
 
 M 
 
 (( it 
 
 [transactions.] 
 
 Philadelphia, July 1st, 1847. 
 
 Received per Brig- Emma, John King^, master, from 
 Kastport, 193^ Pons Plaster, consigned to us by 
 G. & R. Hobbs there, to be sold for tljeir account. 
 
 Paid Freight on the same by oar check on Phila. B'k. 
 
 - 3 
 
 Received from John Duplaine, Halifax, N. S., an acc't 
 sales of Flour & Corn Meal, shipped per Schr. Ellen, 
 by Wm. Forepaugh & Co., Boston, on their, John 
 Duplaine, and our equal joint acc't, total net proceeds 
 being £r21hl Os 4rf.* {Due July 5/A, 1847.) 
 
 Our 3 net proceeds of the above adventure is . 
 
 Received also from the same, a remittance of H. Mil- 
 ward's set of exchange, dated Halifax, N. S., June 21, 
 at 10 days sight, John Duplaine's favour, on Nairac 
 & Hardwick, London, for j£400 Stg., at 4a. 6rf. per 
 dollar, $ 
 
 Exchange at 7i p'ct premium, 
 
 " Britton, Coopers & Co.'s set of Exchange, 
 
 dated June 23d, at sight, L. Cheatham's favour, on 
 
 Rathbone, Burnside& Co., Liverpool, for ^550 Stg., 
 
 at 4s. <od* per dollar, $ 
 
 Exchange at 8J p'ct. premium. 
 
 Note. The premiums paid on all remittances on company 
 acc't, are to be charged to " Exchange in Co. with, 4-c.," and 
 when the bills are sold, the same acc't must be credited for 
 whatever premiums may be received. 
 
 • Nova Scotia jE = ^4 U. S. currency. 
 
 if 
 
 D. B. On examination of Adventure No. 2, to Halifax in Co., 
 we find that our share of the net gain is 
 
 D.B. Sold to Joseph Bowman, 
 
 50 Bbls. No. 1 Mackerel, ® $9.25, 
 
 25 " " 2 " (S» 7.00, 
 
 10 " " 3 " (2» 500, 
 
 $ 
 
 2 Casks Oil, 2JJ } 49 ^g^ ^^ ^y^ ^^ j^^ ^ 
 I Cask do. 37 ' - ^ 
 
 «'« 
 
 2.30 
 
 95 
 
 4557 
 
 21 
 
 721 82 
 
 [transactions.] 
 
 Philadelphia, July 5lh, 1847 
 
 C.B. 
 
 D.B. 
 
 C.B. 
 
 D.B. 
 
 Paid Cash to Wm. Smith, in fall, by our check on 
 Philada. Bank. 
 
 Sold to Dehart & Spear, 
 189i Tons Plaster, 
 4 " fine do. 
 
 
 
 
 
 $2.70 
 1.35 
 
 // 
 
 D B. 
 
 and 
 L B. 
 
 C 6. 
 
 C.B 
 
 C.B. 
 
 D.B. 
 
 and 
 
 B.B. 
 
 Paid Cash to Capt. Howe, of Steamboat Hudson, for 
 towing Brig Emma up and down the Schuylkill to 
 discharge her cargo of Plaster, • 
 
 8 
 
 Sold to Bishop & Walker, (6 mos.) 
 30 Hhds. N. 0. Sugar, net 36740 lbs. 
 
 5ic. 
 
 10 
 
 Received of Williams &Haxall, their Dft. dat«d Rich- 
 mond, Va., July 7th, at sight, our favour, on Ger- 
 hart, O'Brien & Gray, N. Y., being in full for In- 
 voice of Whisky shipped them oh 24th ult., which 
 we have deposited for collection in the Phila. Bank. 
 
 rr 
 
 Sold for Cash, at 9^ p'ct. premium, to Kane & Collins, 
 H. Milward's set of exchange on Nairac & Hard- 
 wick, London, for £400 Stg. at 4s. Ocf. $ 
 
 Britton, Coopers & Co.'s set of exchange on 
 Rathbone, Burnside & Co. for £550 Stg., 
 at 4s. 6(f., $ 
 
 Exchange at 9i p'ct. premium. 
 
 11 
 
 Received of Joseph Bowman, the amount of bill Mack- 
 erel, &c., sold him 5th inst., in Cash. 
 
 // 
 
 Received Cash of Dehart & Spear, in full for bill of 
 Plaster sold them 6th inst. 
 
 // 
 
 517 05 
 
 15 
 
 00 
 
 4623 
 
 32 
 
 Received Notes from the following persons to balance 
 
 their respective accounts, viz. : 
 From Alexander Morton & Son, at 6 mos. from 30th ult. 
 Bishop & Walker, at 6 mos. from 8th inst. 
 
 i( 
 
r 
 
 136 
 
 I 
 
 U.B. 
 
 D.B. 
 
 D.B. 
 
 I' .'1 
 
 C. B 
 
 1, -^'11 
 1^. ii 
 
 D.B. 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 Philadelphia, July 12 th, 1847. 
 
 The Philada. Bank has collected and placed to our 
 credit, Williams & Haxall's Dft. on Gerhart, O'Brien 
 & Gray, N. Y., received lOth insU 
 
 15 
 
 Closed Sales No. 6, for G. & K. Hobbs' consirrnment 
 of Plaster per Brig Emma, all sold, and transmitted 
 them an acc't sales. 
 
 Total sales being $517.05 
 
 Charges posted, 265.85 
 
 $251.20 
 
 Jfter Charges. 
 
 Advertising, 50 c. Weighing & Scale Hire, $12.09 
 
 Commission on sales $017.05 at 2^ p'ct. 
 
 G. & R. Hobbs' net proceeds, {Due July — ,) 
 
 it 
 
 Sold Walter & Souder, 
 400 Bbls. S'fine Flour, 
 75 " scraped " 
 25 « condM « 
 
 
 
 
 Inspection, 1 c. ^ Bbl* 
 
 $4,V 
 3.94 
 
 31 
 
 18 
 
 Paid Peter Johnson, by our check on Phila. Bank, for 
 1 Keg Specie, containing 5000 Five-franc pieces, at 
 93 c. 
 
 The above we have shipped per Brig Robert Wain, 
 J. Little, master, bound toLaguayra,and consigned 
 to Whitney, Brandon & Co. there, to be exchanged 
 for our acc't, the net proceeds of the same to be in- 
 vested in Coffee, Hides, and Indigo. 
 
 // 
 
 Closed Sales No. 2, for consignment of Mackerel to us 
 per Brig Swan, on equal joint acc't with Wm. Fore- 
 paugh & Co. and John Duplaine, all sold, and trans- 
 mitted to each of the partners an acc't sales. 
 
 Total sales being $61346.25 
 
 Charges posted, 288.75 
 
 $6a57.50 
 
 Jfter Charges, 
 
 Advertising, 50 c. Wharfage, $16.50 
 Storage, $41. Labour & Cooperage, $8.25 
 
 f 
 
 Commission on sales $6346.25 at 2^ p'ct. 
 
 Wm. Forepaugh & Co. for their | net proceeds {Due — ) 
 John Duplaine, for his | " ** {Due — ) 
 
 Our ^ net proceeds, $ ) 
 
 Our i first cost, $ \ "®^ ^*"' 
 
 251 
 
 2169 
 
 20 
 
 25 
 
 D.B. 
 
 1428 
 
 39 
 
 D.B. 
 
 D.B. 
 
 D.B. 
 
 FOURTH SERIES. 
 
 [transactions.] 
 
 137 
 
 Philadelphia, July 20th, 1847. 
 
 Remitted to G. & R. Hobbs, our Dft. at sight, in their 
 favour, on Wm. Forepaugh & Co., Boston, for the 
 net proceeds sales of Plaster, due them. 
 
 21 
 
 Drew on Servoss & Cavada, N. Y., as per their letter, 
 at 10 days date, our favour, for net proceeds of sales, 
 due June 25th, 1847. 
 Interest on do. from June 25th till Aug. 3, is 39 dys. 
 
 24 
 
 Closed Sales No. 3, for Carson & Trasel's consign- 
 ment of 50 Hhds. Sugar per Ship Dolphin, and fur- 
 nished them an acc't sales, all sold. 
 Total sales being $3512.30 
 Charges posted, 153.00 
 
 .Sfter Charges. 
 Advertising, 50 c. Storage, $12.50 
 Cooperage, 
 
 Commission on sales $3512.30 (S 2i p'ct. 
 Carson & Trasel, net proceeds, {Due ) 
 
 $3359.30 
 
 $13.00 
 5.50 
 
 26 
 
 3890 
 
 46 
 
 18 
 
 3359 
 
 50 
 
 30 
 
 Sold to Barton, Rex & Co. (4 mos.) 
 
 24 Casks Oil, 
 J^ 35 31, 4): 8 29i, J^ 6 30^, # 31 37, 
 
 D.B. 
 
 C.B. 
 
 43 4U, 7 29, 
 
 44 m, 39 29, 
 
 37 31, 33 31, 
 
 45 31, 40 25^, 
 
 38 30, 15 30, 
 
 34 28, 
 47 28, 
 30 38, 
 12 30, 
 42 29i, 
 
 24 29, 
 32 30, 
 36 303, 
 41 29, 
 
 25 30i, 
 
 -(- -f- s gals.®35c. 
 
 // 
 
 Sold to Jacob Miller, 
 25 Bus. Cloverseed, 
 
 
 
 $4.25 
 
 // 
 
 Received of Walter & Souder, in full, for their acc't, 
 their check on Pennsylvania Bank, which we have 
 deposited in the Philad. Bank. 
 
 M 2 
 
 18 
 
138 
 
 BECKER'S BOOK-KEEPmG. 
 
 FOURTH SERIES. 
 
 139 
 
 
 ' t 
 
 ;'!r 1.5 
 
 [transactions.] 
 
 Philadelphia, July 21 thy 1847. 
 
 D.B. 
 
 Closed Sales No. .5, for Quick, Baker & Co.'s con- 
 sig-nment of 27 Casks of Oil, per Brig Sun, and ren- 
 dered them an account sales. 
 
 Total sales being f 2)0.12 
 
 Charges posted, 39.65 
 
 ?256.*27 
 
 -^fter Charges, 
 Advertising, .50 c. Gauging, -$2.70, Cooperage, $3.77 
 Storage, ^^1.00. Labour, rolling into store, 31 c. 
 
 C.B. 
 
 Commission on sales $296.12 .7 5 p'ct. 
 Quick, Baker & Co.'s net proceeds, (^Due ) 
 
 // 
 
 The Philada. Bank has discounted Geo. Bellis& Co.'s 
 Note, due 19-22 Dec, am't $1491.60. 
 Discount off on do. for — days. 
 Cash for net am't passed to our credit, 
 
 C. B. 
 
 // 
 
 Loaned Cash to Thomas Cavanaugh, on his Bottomry 
 Bond, lobe repaid with 20 p'ct. premium, to Charles 
 Fenderich, of Amsterdam, for investment on our acc't, 
 ten days after the arrival of his Ship Ann Chase in 
 that port. 
 
 D.B. 
 
 D.B. 
 
 u 
 
 Received from Wm. Forepaugh & Co., Boston, an acc't 
 sales of Corn and Flour, shipped June 20th, per Brig 
 Patrick Henry on their, John Duplaine's, and our 
 equal joint account, net proceeds being — (Due Aug, 
 Ibth, 1847,) $8548.50, of which 
 
 Our i is 
 
 // 
 
 Adventure No. 4, in Co. to Boston, shows a gain which 
 is our share, and is to be closed into Profit & Loss, 
 
 28 
 
 C.B. 
 
 The Philada. Bank has placed to our credit the am't of 
 J. L. Sprague & Co.'s not«, due 27th inst. 
 
 // 
 
 C.B. 
 
 _ 
 
 Received Cash of the Atlantic Ins. Co. for the am't in- 
 sured on Invoice of Tobacco, per Ship Herman, she 
 being lost, with her whole cargo, on her voyage to 
 Amsterdam. 
 
 256 27 
 
 1491 
 
 3000 00 
 
 60 
 
 [transactions.] 
 
 Philadelphia, July 28th, 1847. 
 
 D.B. 
 C.B. 
 
 Closed Sales No. 4, for Stewart & Horrell's consign- 
 ment ot Wheat, Cloverseed, and Flour, per Boat Echo, 
 all sold, and furnished them an account sales. 
 Total sales being $4267.26 
 Charges posted, 561.00 $3706.26 
 
 
 
 Jfter Charges, 
 Measuring 1825 Bus. Grain, Co) ^ c, $9.13 
 Carrying do. into Store, and Storage, (S* li^ c. 
 Storage on Flour, $15. Labour, $5. Adver- 
 tising, 50 c. 
 
 Commission on 1800 Bus. Wheat, ® 1 c. ^ Bus. $ 
 Do. " 500 Bbls. Flour, (2) 12^ 4^ Bbl. 
 Do. " sales Cloverseed $106.25 (2) 2ip'ct. 
 
 Stewart & Horrell's net proceeds, for which we have 
 remitted them our check on the Philada. Bank. 
 
 3706 
 
 26 
 
 D.B. 
 D.B. 
 
 Received of Carson & Trasel, N. 0., an account sales 
 of Mdse. shipped June 20th, per Ship Northumber- 
 land, from N. Y., to be sold for our acc't — ^net pro- 
 ceeds being {Due Oct, 15/A 1847.) 
 
 They also advise us that they shipped, 13th inst., per 
 Ship Iron Queen, James Spencer, master, pursuant 
 to order and for our acc't, to the address of Lloyd & 
 Ritchie, London, 100 Bales Cotton, amounting, per 
 Invoice to — {Due Aug, 18/A, 1847.) 
 
 3240 
 3574 
 
 00 
 63 
 
 D.B. 
 
 Close Adventure No. 5, (to N. 0.) into Profit & Loss. 
 
 on 
 
 
 
 D.B. 
 and 
 B.B. 
 
 Received from Wm. Forepaugh & Co. a remittance of 
 
 Gilbert Buxton's bill of exchange, dated Boston, July 
 
 24th, fav. Broadhead & Co., at sight on Rothschild 
 
 & Co., London, for £500 Stg., at 4s. Oc?. per dollar. 
 
 Exchange at 9i p'ct. premium. 
 
 // 
 
 
 
 2427 
 
 77 
 
 D.B. 
 
 and 
 
 B.B. 
 
 Accepted Carson & Trasel's Dft. James Lawson's 
 favour, at 30 days sight, for ... . 
 
 1500 
 
 1 
 
 00 
 
 D.B. 
 
 Capt. Wade advises us that he paid, July 25, to Wm. 
 Forepaugh & Co. on our account, per our instructions, 
 the balance of Freight and disbursements on Brig 
 Patrick Henry for her last voyage, am't being as per 
 his acc't rendered. 
 
 425 
 
 65 
 
140 
 
 BECKER'S BOOK-KEEPING. 
 
 [transactions.] 
 
 li 
 
 Philadelphia, July 301 h, 1847 
 
 m 
 
 D.B. 
 
 aiid 
 
 B.B. 
 
 C.B. 
 
 Accepted Cresswell & Co.'s Dft, at 10 days sight, 
 Jackson HalPs favour. 
 
 31 
 
 C.B. 
 
 Sold to Price, Scott & Stewart, for Cash, at 11 p'ct. 
 premium, Gilbert Buxton's bill on Rothschild & Co., 
 London, recM 29th inst. for £5L)0 Stg. at 4a. 6rf. per 
 dollar. 
 
 Exchange at 11 p'ct. premium. 
 
 // 
 
 i 
 
 Paid Cash this mo. as per Petty Cash Book, viz. 
 
 For Store Expenses, Advertising, &c. 
 
 " Drayage, 
 
 ** Cooperage, .... 
 
 '* Measuring & Headmeasuring Grain, 
 " Gauging Oil, .... 
 ** Inspection on Flour, . 
 
 // 
 
 D.B. 
 
 till 
 
 \''i 
 
 Exchange acc't in Co. with W. F. & Co. and J. D. ex- 
 hibits a gain as per statement in the Account-Current 
 
 Book of $ which amount is to be divided and 
 
 credited as follows, viz. : 
 To Wm. Forepaugh & Co. for their J gain, 
 " John Duplaine, for his ^ " 
 
 " Profit & Loss, for our ^ " 
 
 t^ The student should make out the account current of 
 Wm. Forepaugh & Co., and John Duplaine, and before 
 Journalizmg the above, he should make, on a half sheet of 
 paper, an abstract of the «« Exchange Acc't in Co." from the 
 Ledger, in form as described in the Account Current 
 (blank) Book, with this exception, that no interest is to be 
 computed on the account When the statement is proved 
 correct, it ought to be copied in the Account-Current Book, 
 after Wm. Forepaugh & Co. and John Duplaine's accounts 
 currents, each of whom would, in actual business, receive a 
 copy of this statement 
 
 f/ 
 
 D.B. 
 
 D.B. 
 
 l! i ' 
 
 Furnished Wm. Forepaugh & Co. an abstract of their 
 Account-current, with an interest accH to Aug. 1st, 
 1847. Balance of interest in their favour, and a mount- 
 insr to — 
 
 ff 
 
 Furnished John Duplaine an abstract of his Acc't-cur- 
 rent, with an interest account to Aug. 1st, 1847. Ba- 
 lance of interest in his favour amounting to 
 
 FOURTH SERIES. 
 
 [transactions.] 
 
 500 
 
 00 
 
 2466 
 
 66 
 
 50 
 30 
 45 
 10 
 2 
 15 
 
 153 
 
 00 
 50 
 00 
 39 
 70 
 00 
 
 59 
 
 Philadelphia, July 3lst, 1847. 
 
 D.B. 
 
 D.B. 
 
 Furnished Carson & Trasel an abstract of their Ac- 
 count-current, with an interest account to Aug. 1st, 
 1847. Balance of interest in our favour, amounting 
 to — 
 
 J^ The student will make out the Acc't-current of Car- 
 son & Trasel before Journalizing the above. 
 
 // 
 
 Credit the Accounts of the following persons for 2 mos. 
 interest for am't of their respective investment, viz. : 
 Edward Hope, 
 Osgar Hastings, 
 Thomas Merrick. 
 
 BP* The Student should here take a « Trial Balance." 
 
 it 
 
 D.B. 
 
 The following is a statement of the accounts which 
 have produced gains these two months, and which 
 are to be closed into Profit & Loss : 
 Brig Patrick Henry, amount of Cr. side, $ 000.00 
 present value of Brig, 8000.00 
 
 $0000.00 
 
 amount of Dr. side, 0000.00 
 
 Flour, all sold, amount of Cr. side, 
 
 «« Dr. « 
 
 « 
 
 0000.00 
 0000.00 
 
 Whisky, all sold, am't of Cr. side, 
 
 « *« Dr. side, 
 
 Commission, per Cr. side, 
 Charges, am't of Cr. side, 
 « Dr. « 
 
 0000.00 
 0000.00 
 
 tl 
 
 000.00 
 000 00 
 
 ff 
 
 D.B. 
 
 D B. 
 
 Close "Interest" into " Profit & Loss" for the differ- 
 ence of both sides, being a loss of 
 
 I^" The above should be Journalized and posted before 
 making an entry of the following statement : 
 
 On examination of " Profit & Loss," we find that it 
 exhibits a net gain of our business these two months 
 of $ which am't is to be divided in the fol- 
 lowing order, as per articles of Agreement, viz. : 
 
 Edward Hope, for his | share net gain, 
 
 Osgar Hastings, " " I 
 
 Thomas Merrick, " " i 
 
 
 (i 
 
 (4 
 
 (i 
 
 141 
 
 404 
 
 88 
 
 000 
 000 
 
 000 
 000 
 
 000 
 
 00 
 00 
 
 00 
 00 
 
 00 
 
 1542 94 
 
142 
 
 BECKER'S BOOK-KEEPING. 
 
 II' I 
 
 
 1 
 
 ' 
 
 ••rfil 
 
 J 
 
 
 Having Journalized and posted the foregoing, the student 
 will take a « Balance Sheet " simply of the Dr. and Cr. balances 
 of the several acconnts in the Ledger, which, if correct, will 
 prove both sides equal on addition. This being performed 
 satisfactorily, the Ledger is ready for balancing all those ac- 
 counts which remain open. The accounts are to be balanced 
 according to the method of the " Periodical Closing of Ac- 
 counts," to which the student is referred for explanation. This 
 method is adopted for the purpose of showing how accounts are 
 balanced, if they are to be continued in the same book. 
 
 DESCRIPTION AND EXEMPLIFICATION 
 
 OF 
 
 COMMERCIAL FORMS 
 
 
*v 
 
 M II 
 
 [ 
 
 l|ill 
 
 % 
 
 DRAFTS AND BILLS OF EXCHANGE. 
 
 Drafts and Bills of Exchange have certain points of agree- 
 ment. They are both written orders signed by one party and 
 directing a person at a distance to pay to I he order of a third 
 person, in whose favour they are drawn, a specified sum of 
 money. They agree also in their object, which is to effect a 
 settlement of debts, at a distance, without the transmission of 
 money. They differ, however, in the fact that a Draft is an 
 Inland Bill, whereas a Bill of Exchange is a bill drawn upon 
 a person residing in a foreign country. 
 
 The parties concerned in a Draft or Bill of Exchange are the 
 drawer, or party who draws the bill ; the drawee, or party on 
 whom it is drawn ; and the remitter or party in whose favour 
 it is drawn. When the drawee has accepted the bill or draft, 
 he is called the acceptor. These are the original parties to the 
 contract. The remitter may assign his right in the bill to 
 another, by writing his name on the back ; he thus becomes 
 an endorser. The person who obtains possession of the bill by 
 endorsement may transfer his right to another, in the same man- 
 ner, and each possessor may do the same, till the bill is filled 
 with endorsers. The possessor of the bill or the person in whose 
 hands it may be, at any time, is called the holder. 
 
 A Set of Exchange is a bill drawn in sets or several bills of 
 exchange. Each of these is payable on condition that the 
 others remain unpaid, so that when one has been presented 
 and paid, the others are void. There are generally three bills 
 to each set. The " first of exchange" is payable, " second and 
 third of the same tenor and date unpaid -," the " second of ex- 
 change," " the first and third of the same tenor and date un- 
 paid," &c. The object of drawing bills in this manner is to 
 guard against loss or inconvenience to the holder. The first bill 
 of the set that is presented to the drawee, is paid. The proviso 
 inserted in each is necessary, in order that the drawee may not 
 ht\ obliged to pay more than one bill of the same set. 
 
 " Bills of Exchange are either made payable at sight, at a 
 N 19 (145) 
 

 II 
 
 146 
 
 BECKER'S BOOK-KEEPING. 
 
 BILL OF EXCHANGE. 
 
 147 
 
 certain time after sight, or after date, or at usance, by which 
 is meant the usual term allowed by the custom or law of the 
 place where the Bill is payable." Usually, days of grace are 
 allowed for payment, that is, a few days beyond the time when 
 the bill becomes due. Jill bills payable at sight, however, 
 must be paid when presented, or during banking hours on that 
 day. In the United States and Great Britain three days of grace 
 are allowed on all bills not payable at sight. On the continent of 
 Europe, the number of days of grace varies from three to thirty. 
 
 An acceptance of a bill, or engagement to pay the same may 
 be absolute, qualified, or partial. It is absolute when the ac- 
 ceptor engages to pay the bill according to its request ; it is 
 qualified, when he agrees to pay it under certain conditions ; 
 and it is partial, when he is to pay a part of the amount, or to 
 pay at a dilFcrent time or place from that mentioned in the bill. 
 When the acceptance is absolute, the drawer writes *' accepted," 
 and signs his name, or writes "accepted" only, or merely signs 
 his name at the bottom of the bill, or across it. When the bill 
 is drawn at so many days after sight, the acceptor should write 
 on it the date of acceptance. When the acceptance is qualified, 
 or partial, the holder should give notice of the fact to the other 
 parties to the bill, if he intend to resort to them in case of non- 
 payment. 
 
 If a Bill be not accepted or not paid when due, and it be pro« 
 tested, the holder can recover the amount of the bill from the 
 drawer, the endorsers, or, if it has been accepted, the acceptor. 
 He can also recover damages, »* consisting, besides interest, of 
 the exchange or re-exchange, commission, postage, expenses of 
 protest, and interest on these expenses." 
 
 We have given but a brief explanation of this species of 
 mercantile paper. For more extended information on the sub- 
 ject, the student must consult works whose object is to treat of 
 
 Ix at large. 
 
 PAR OF EXCHANGE. 
 
 " « The Par of Exchange' of any two countries means, among 
 merchants, the equivalency of a certain amount of the currency 
 of the one in the currency of the other, supposing the curren- 
 ^ies of both to be of the precise weight and purify fixed by 
 their respective mints,^' For example, the exchange between 
 
 le United States and Great Britain is at par when ^1 sterling 
 5. equal to $4.44f or j^I to 4*. 6d. Hence, when this is the 
 -ase, a bill drawn in London for £100 is worth in Philadelphia 
 |>444.44, and vice versa. If a bill on London for more than 
 £100 can be bought in Philadelphia for y^444.44, the exchange 
 is below par and is in favour of Philadelphia and against Lon- 
 don; but, if a bill on London for £100 cannot be bought for 
 {^444.44, the exchange is above par and is against Philadelphia 
 and in favour of London. 
 
 The forms of Bills of Exchange and Drafts are subjoined. 
 
 What is the first point of agreement between Drafts and Bills of Exchange ? 
 The second 1 How do they differ? What are the names of the original par- 
 ties concerned in a Dft., or Bill of Exchange 1 What is meant by the endorser ? 
 The holder? What is a Set of Exchange? What condition is contained in 
 each bill of a set ? Illustrate this in the case of a set containing three bills. 
 What is the design of inserting this condition in each bill ? What is the de- 
 sign of drawing bills in sets ? How are Bills of Exchange payable ? What 
 is meant by usance? What are days of grace? On what bills are days of 
 grace not allowed ? How many days of grace are allowed in U. S. and G. B.? 
 How many on the continent of Europe ? What is meant by an acceptance of a 
 bill ? How many kinds of acceptances are there ? When is an acceptance 
 absolute? When qualtjied? When partial? How is an absolute acceptance 
 Bignified hy the drawee ? How when the bill is drawn at sight ? What mea- 
 sure of precaution should be adopted by the holder when the acceptance is 
 qualified or partial ? What is to be done if a bill be not accepted or not paid 
 when accepted ? If it be protested, from whom can the holder recover ? What 
 can he recover, besides the am't of the bill ? 
 
 What is meant by the par of exchange? Illustrate by an example. When 
 is exchange below par ? When above par ? 
 
 BILL OF EXCHANGE. 
 
 Philada., June Sth, 1847. 
 Exchange^ £500 Sterling. 
 
 At thirty days sight pay to the w^der of 
 Rezin Durham, in Liverpool, Five hundred Pounds sterling, 
 for value received, and place the same to our account, nnth* 
 or rvitlwut further advice. 
 
 To Mr. Theodore Gehhard, ^ Houston Sf Borden. 
 
 Liverpool. 5 
 
I'll' 
 
 •A^ 
 
 148 
 
 BECKER'S BOOK-KEEPING. 
 
 SET OF EXCHANGE. 
 
 Philadelphtft, June I2th, 184"^ 
 
 Exchange £lOOO Sterling. 
 
 Sixty days after sight of this, our first of 
 
 ^ Exchange, {second and third of the same tenor and date 
 
 2 unpaid,) pay to the (yrder of J, Whatman 4* ^o., 0?ie 
 
 ^ Thousand Pounds Sterling, for value received, as per 
 
 advice, f(yr the account of 
 
 To Messrs. Rothschild S^ Co,, 
 
 London, 
 
 Hastings Sf Co. 
 
 Philadelphia, June I2th, 1847. 
 
 Exchange, ^1000 Sterling. 
 
 Sixty days after sight of this, our second 
 
 /O of Exchange, {first and third of the same tenor and date 
 
 ^ unpaid,) pay to the order of J, Whatman Sf Co,, One 
 
 ^ Thousand Pounds Sterling, for value received, as per 
 
 m advice, for the account of 
 
 To Messrs, Rotlischild 4- Co., 
 
 Jjondon, 
 
 Hastings S; Co. 
 
 Philadelphia, June I2th, 1847. 
 Exchange, £1000 Sterling. 
 
 Sixty days after sight of this, our third of 
 
 . Exchange, {first and second of the same tenor and date 
 
 ^unpaid,) pay to the order of J. Whatman J}- Co., One 
 
 ^ Thousand Pounds Sterling, for value received, as per 
 
 ^ advice, for the account of 
 
 To Messrs. Rothschild dj- Co., 
 
 London, 
 
 I 
 
 Hastings fy Co. 
 
 DRArTS. 
 
 149 
 
 DRAFTS. 
 
 Philadelphia, June 2Sth, 1847. 
 
 8722,iVir. 
 
 At three days sight, pay to the 07'der of 
 
 Messrs. Carlisle S^ Gaskill, Seven hundred and twenty-trvo 
 
 ^o*ff Dollars, without defalcation, for value received, and 
 
 charge the same with, or without further advice, to account of 
 
 To Messrs. Wfn. Forepaugh Sf Co,, '> Hastings Sf Co. 
 
 Merchants, Boston, S 
 
 Ne7V Orleans, July 18^A, 1847. 
 81500. 
 
 Tliirty days after sight, pay to the order of 
 
 James Lawson, Esq., Fifteen hundred Dollars, for value 
 received, and place tlie same to account of 
 
 To Messrs. Jlas tings <^ Co., 
 Merchants, Philadelphia, 
 
 Carson 4* Trasel. 
 
 Cincinnati, July 20th, 1847. 
 
 8850. 
 
 At sight, pay Charles Knorr, or order. 
 
 Eight hundred and fifty Dollars, for value received, and 
 charge the same to account of James Nelson, Esq., as per 
 advice. 
 
 To Messrs. Manouvrier 4* Co.,! 
 
 New Orleans. 5 
 
 William Lampas. 
 
 8600. 
 
 Philada. July 29th, 1847. 
 
 Sixty days after date, pay to tJie order of 
 George Bache 4* Co., Six hundred Dollars, without defalr 
 cation, for value 7xceived, and charge the same to account of 
 
 To Dupass <Sf Vallute, 
 Baltimore, 
 
 Frank Butler. 
 
 m2 
 
'K 
 
 I 
 
 ':0 
 I' I 
 
 150 BECKER'S BOOK-KEEPING. 
 
 PROMISSORY NOTES. 
 
 A Promissory Note is a written promise from one party to 
 pay another a specified sum of money. The party promising 
 to pay is called the drawer, or maker; the party to whom the 
 note is payable is called the payee or holder. 
 
 As in the case of Bills of Exchange, it is customary to allow 
 three days of grace on all notes, and interest or discount is 
 charged for these three days whether the note be paid or not 
 before their expiration. 
 
 If the payment of interest be not conditioned in the note, it 
 cannot be enforced. In Pennsylvania, a note must contain 
 the words " without defalcation," to render them negotiable. 
 In New York and some other states, this phrase is not required 
 by law, the words " for value received" being sufficient. In some 
 other states, the words "without defalcation or discount" are used. 
 
 Notes payable to the order of a person can be transferred 
 from one holder to another by endorsement, as in the case of 
 Bills of Exchange. The endorser is liable for the amount, if 
 the drawer refuse to pay it. 
 
 The insertion of the word " severally," in a note drawn by 
 two or more persons, renders each one of them liable for the 
 whole amount in case of their failure to pay it conjointly. 
 
 The various forms of a promissory note are subjoined. 
 
 What is a Promissory Note 1 What names are given to the parties 1 For what 
 time is interest or discount on a note charged % When only can interest be 
 charored on a note? In Pennsylvania what words must be inserted at the end 
 of a notel Is this necessary in all the states % What phrase is used in some 
 states 1 How can notes be transferred 1 When is the endorser liable for the 
 am't of a note ? What effect has the word severally in a note drawn by more 
 than one person 1 
 
 PROMISSORY NOTES. 
 
 Philadelphia, May I2th, 1847. 
 81000. 
 
 Thirty days after date I promise to pay 
 
 Hastings S^ Co., err order, One thousand Dollars, rvithout 
 defalcation, for value received. 
 
 Robert Goodrich. 
 
 PROMISSORY NOTES. 15J 
 
 New York, May Ibth, 1847. 
 81200. 
 
 Six months after date, rve promise to pay 
 James Rondeau, or order, Twelve hundred Dollurs, for value 
 
 received. 
 
 Fuss 8f Bohr. 
 
 4'. 
 
 Philadelphia, June Sd, 1847. 
 
 893 6,1^. 
 
 Eight months after date, we severally and 
 
 jointly promise to pay to the order of Samuel Harper, Nine 
 
 hundred and thirty-six tVj Dollars, withmt defalcation, for 
 
 value received. 
 
 John D. Spicer. 
 
 Henry Fortune, 
 
 Baltimore, June ISth, 1847. 
 
 8200. 
 
 On demand 1 promise to pay John Kuhn 
 
 (yr hearer. Two hundred Dollars,with interest, value received. 
 
 Dominick Hognon. 
 
 m 
 
 JUDGMENT NOTE. 
 I promise to pay Charles Brown, of the 
 city of Philadelphia, merchant, or order, the sum of Eight 
 hundred Dollars, with lawful interest, on the first day 
 of December next ensuing, without defalcation, /o/' value 
 received. And further, I do liereby empower any attorney 
 of any of the courts of the city and county of Philadelphia, 
 (YT of any other court of record of Pennsylvania, to confess 
 judgment for the above sum and costs, with release of erroi's, 
 6^c. Witness my hand and seal this second day of June^ 
 A. D., one thousand eight hundred and forty-seven.^ 
 
 Peter Cheatham. 
 
 Sealed and delivered in the presence of 
 
 John Smith. 
 George Gerry. 
 
m 
 
 i52 
 
 BECKER'S BOOK-KEEPING. 
 
 DUE BILLS. 
 
 Due, Philada., January I6th, 1847, toWm, Strwig^ 
 or order y Fifty-six Dollar Sy in goods from our st07'e, vahe 
 received, 
 
 i56. Doyle Sf May. 
 
 Due, on demand, to Messrs. Harrington <Sf Black, or 
 order, One hundred and trventy Dollars, for Freight, (jj-c, 
 on Nails, from Hollidaysburg, shipped per Barge Texas, 
 to Baltimore, and consigned to Wm. Jones 4* ^o. there. 
 Philada., April 24:th, 1847. 
 
 8120. Wm. Bankson^ 
 
 For MercKts Transportation Company, 
 
 Due Louis Crarvford, or hearer, Trventy-five Doh 
 Jars. Value received. New York, April 27th, 1847. 
 
 825. •Andrew ForstalL 
 
 * lO ♦ ^ » 
 
 ORDERS. 
 
 Mr. Francis Bacon rviU please pay to H. Rivers, of 
 bearer, Sixty Dollars, in mercliandise, on our acc't. 
 
 Turner 8c Locker, 
 Philadelphia, May V^th, 1847. 
 
 Philadelphia, June \^th, 1847. 
 
 Messrs. James Steel Sf Co. 
 
 Gentlemen, 
 
 Please deliver to tlie Bearer, the 
 
 Fifty Barrels Rye Fhur, bought of you on the \2th iiist, 
 
 Mnd oblige^ 
 
 Yours, 6fC., 
 
 L. E. Nordmann. 
 
 RECEIPTS. 
 
 153 
 
 RECEIPTS. 
 
 A RECEIPT is a written acknowledgment of the payment of 
 money. Its form differs according to the circnmstances under 
 which it is given. When the debtor has satisfied entirely the 
 demands of his creditor, the words " in full," or " in full of all 
 demands" should be inserted in the receipt. If, however, he 
 has paid only a portion of his debt, the words " on account," or 
 « in part payment" are used. It is evident that these phrases 
 are necessary for the security of the Dr. or Cr., as the case 
 
 may be. 
 
 It is not necessary that the receipt should be signed by the 
 person to whom the money is owing. Any person authorized 
 by him to receive the money can give a receipt, taking care to 
 sign it merely as an agent and not on his own account. Thus, 
 if A. B. receives money for C. D., he should sign the receipt 
 « For C. D., A. B.," or " C. D. per A. B." If he merely sign 
 it " A. B." the receipt will be no security to the payer, because 
 it represents A. B. as receiving the money on his own account. 
 
 When a receipt is given for a note, some clerks are accus 
 tomed to insert the words « which, when paid, will be in full, 
 &c." These words are useless, since the note, if drawn for the 
 full amount of indebtedness, is in full for the same, when re- 
 ceived. No suit can be brought for the value of the goods or 
 other property for which the note is given ; it can only be 
 brought to recover the amount of the note. 
 
 Examples of the various forms of receipts are subjoined. 
 
 What is a receipt 1 Give the various forms of receipts. What is the use 
 of the various distinctive phrases contained in them % Who can give a receipt 
 in the absence of the person to whom the money is due 1 How must it be 
 signed in that easel Illustrate this 1 When a receipt is given for a note, 
 what words, sometimes used, should be dispensed with 1 Why % 
 
 RECEIPTS. 
 
 Received, Philada., June ^d, 1847, of Mr. John S 
 Varhy, Four hundred Dollars, on account. 
 
 S^^"^' ^^ F. Godley. 
 
i 
 
 
 154 
 
 BECKER'S BOOK-KEEPING. 
 
 BILLS. 
 
 155 
 
 Received, New York, June lOtk, 1847, of Messrs. 
 Wittig Sf Gray, Seventy-Jive Dollars, in fuU of all de- 
 mands, 
 
 875. A. W. Owings ^ Son. 
 
 f L, M. Ste7vart. 
 
 Received, Philada., July 15th, 1847, of Messrs. 
 Rawson 6^ Musgrave, their note at six months from bth inst, 
 for Seven hundred and thirty Dollars, in fuU for UUof 
 Mdse. of same date, 
 
 8730. McReynolds^ Brothers. 
 
 Received, Phikda., Aug. Ath, 1847, of Mr. Samuel 
 Fullborne, One hundred and trventy-five Dollars, in full 
 for one quarter's rent, of the drveUing-house, No. 425 Arch 
 Street, due the 1st inst. 
 
 8125. Jonathan Miesse, 
 
 ^ Isaac Jackson, Agent, 
 
 Received, Philada., Sept. ISth, 1847, of Mr. John 
 Black, by the hands of Messrs. Bryan, Nervhard S^ Zcyin, 
 Three hundred Dollars, in full fm- hiU of Mdse., sold him 
 March I5th, 1847. 
 
 8300. 
 
 Gill Sf Gregg. 
 
 FOR A LEGACY. 
 
 Received, Philada., Oct. ISth, 1847, of James La- 
 vaUette, executor of the last rvill and testament of Edward 
 Whittaker, deceased, the sum of Two thousand dollars, in 
 full for a legacy bequeathed to me m and by the last rviU 
 and testainent of the said Edward Whittaker, deceased, 
 
 82000. Foreman Layset 
 
 ON A MORTGAGE. 
 
 Received, Philada., Nov. 25th, 1847, of JacJcson 
 Rumbach, Four hundred and eighty-fve Dollars, agreed to 
 be m full for principal and interest of the third payment 
 mentioned in a bond and mortgage, I hold against him of 
 lot No. — , situated in Clinton Street. 
 S485. Calvin Chestnut. 
 
 >• » ' 
 
 BILLS 
 
 Bills are of two kinds, viz. : bills of parcels, and bills fol 
 work done, or services rendered. The former are used b^ 
 the merchant, and the latter by the mechanic, or professiona. 
 
 man. 
 
 As bills of parcels are for goods sold, the form is usually ol 
 this kind : " A. B. Bought of C. D." In the bills of mechanics, 
 physicians, &c., this form cannot of course be used. The bill is, 
 therefore, made out thus :— A. B. to C. D., Dr." The insertion 
 of the " Dr." at the end is not necessary, neither is it recom- 
 mended, because it savours too much of the practice of Single 
 Entry Book-keeping. 
 
 There are a few abbreviations used in making out bills, 
 which are as convenient as they are customary. The principal 
 ones are the following : 
 
 Mdse. is used for Merchandise. 
 
 Bo't is used for 
 
 Acc't or>, " 
 
 P'ct. or;J^ " 
 
 Rec'd PayH " 
 
 Co. '* 
 Dr. 
 
 Cr. " 
 
 Ara't " 
 
 Inst. " 
 
 Ult. . " 
 
 What two kinds of bills are there 1 What is the form of bills of parcels I 
 Of bills for work done ? What practice, in this kind of bills, is condemned 1 
 Why 1 Mention some abbreviations used in bills. 
 
 Hhds. 
 Bbls. 
 
 
 hogsheads 
 barrels. 
 
 Doz. 
 
 (« 
 
 dozen. 
 
 Ps. 
 
 Gro. 
 Yds. 
 Ea. 
 
 
 pieces, 
 gross, 
 yards, 
 each. 
 
 (2) 
 
 (t 
 
 at. 
 
 r 
 
 (« 
 
 per. 
 
156 
 
 BECKER'S BOOK-KEEPING. 
 
 The following are exemplifications of the two forms of bills : 
 
 BILL OF PARCELS. 
 
 Philada., July \sty 1847. 
 Messrs, James Wood ^ Co. 
 
 T^ 8 .c-.. B^'t of Barron S^ Aubrey. 
 
 2 ps. BPk Silk Velvet, 38 Junes, 47i yds. & . . $3.12^ $148.44 
 1 »* " Satin Fcsting,2iMttres,2& " ". . 3.00 108.00 
 4 " Ckoppas Hdkfs *• .. • 6.37i 25.50 
 
 3 " 6-4 BUuk Paris Crape, . • . «« . , 7.75 23.25 
 
 $305.19 
 
 BILL OF SERVICE. 
 
 Philada,, Sept. ISth, 1847 
 Mr. James K. Ireland^ 
 
 To P. S. Duval. 
 
 1847. 
 
 dug, 21. To writing etreular on Tramfer Paper, and tran*- 
 
 f erring the same to Stone, . • , $1.00 
 
 " Printing 300 (hpies if the same, . 8.00 
 
 " 300 SheeU of QUo Post, . . . 1.75 
 
 Stpi. 9. To tran^erring labels for Calico Prints^from Copper 
 
 to Stone, and adding the words " Warranted 
 
 Madder Colours" on 5 of the transferred labels, 2.50 
 
 «« 18. To Paper and Printing 10,000 Copies of each of the 
 
 two labels, being delivered as follows, viz.f 
 
 ^f'Uh iUvis ifffu a/ $2.50 /r if. 50.00 
 
 5.75 
 
 52.50 
 
 $58.25 
 
 Received payment in faU, 
 
 P. S. Duval. 
 
 ^ Benjamin Hollis. 
 
 * * •• * 
 
 BOTTOMRY BONDS. 
 
 A Bottomry Bond is a bond for money loaned on the keel 
 or bottom of a ship, to enable the owner to carry on a voyage. 
 It is therefore a sort of mortgage on the ship. If the ship be 
 lost, the lender loses his money; but, if it returns safe, he re- 
 ceives the sum lent and the stipulated premium, which, on 
 account of the risk, is always far above the ordinary legal rate 
 of interest. The ship and tackle when brought home are liable 
 for the money lent, as is also the person of the borrower. 
 
 What is a bottomry bond 1 What are the conditions of the same ? What 
 are liable for the money lent % 
 
 MERCANTILE ARITHMETIC 
 
 ■j..-:,: iiJlii'iii'lSii 
 
'i« 
 
 i 
 
 MERCANTILE ARITHMETIC. 
 
 Under this head it is proposed to give the principal rules for 
 making the calculations which will be necessary in actual busi- 
 ness, as well as in working the preceding transactions. As it 
 is desirable that the student should make his own calculations 
 in the progress of the work, it is thought most advisable to 
 illustrate the rules, where examples are necessary, by exam- 
 ples not contained in the transactions. In the prosecution of 
 this object we will commence with 
 
 INTEREST. 
 
 Under this head, we give the principal rules I'equired for 
 ready calculation of interest. As the student is supposed to 
 be already acquainted with them, they are given merely to 
 refresh his memory. They are not accompanied by explana- 
 tions, since those who need the latter can refer to works iu 
 which the subject is treated of at large. 
 
 Case 1. To find the interest of a given amount for one year. 
 
 Rule. Multiply the principal by the rate per cent, and di- 
 vide the product by 100.. 
 
 Case II. To find the interest of a given amount for any 
 numl^er of years. 
 
 Rule. Find the interest for one year and multiply it by the 
 number of years. 
 
 Case III. To find the interest for a given number of months, 
 at six p'ct. 
 
 Rule. Multiply the principal by half the number of months, 
 and divide the product by 100. 
 
 Though the above rule does not apply when the rate is other 
 than 6 p'ct., it will be found highly useful, since that is the 
 legal rate in this state and in a majority of the stales of the 
 Union, and almost all business transactions are, in consequence, 
 computed in accordance with it. 
 
 Case IV. To find the interest for any number of days at 
 6 p'ct. 
 
 Rule. Multiply the principal by the number of days, and 
 (158) 
 
 PARTIAL PAYMENTS. 
 
 159 
 
 divide by 6000 ; or multiply by one-sixth the number of days 
 and cut off three figures from the right for cents and mills. 
 
 The principle contained in this rule may be applied to cases 
 in which the rate is other than 6 p'ct. Thus, if it be 5 p'ct. the 
 divisor is 7,200; 4 p'ct., 9,000; 8 p'ct., 4,500, &c. 
 
 By combining the three preceding cases we have another, 
 which is of frequent occurrence, and which we will give as 
 
 Case V. To find the interest for any number of years, 
 months, and days, at 6 p'ct. 
 
 Rule. Reduce the year and months to months. Annex to 
 half the number of months, one sixth the number of days. 
 Multiply the principal by the number thus obtained and point 
 off three figures from the right for cents and mills. 
 
 example. 
 
 What is the Interest of $600 for 5 years 4 mo's. 24 days, at 
 
 6 p'ct. per annum? 
 
 • yrs, mos, dys, 
 
 5 ... 4 ... 6)24 
 12 4 
 
 2)64 
 
 324 
 
 600 
 
 $194,40,0 
 
 In computing the interest on a note, three days are to be 
 ftdded to the time for which the note is draw^n, and the interest 
 calculated for the number of days thus obtained. This direc- 
 tion is to be observed, because three days of grace are allowed 
 on every note, and interest is charged for that time, whether the 
 note be paid before their expiration or not. 
 
 PARTIAL PAYMENTS 
 
 When partial payments are made on bills, bonds, accept- 
 ances, &c., the calculations of interest must be made upon the 
 principle laid down by the United States courts, and the courts 
 of most of the states. The following rule, established by Chan- 
 cellor Kent, is given in Johnson's Chancery Reports, voI.l p. 17. 
 
 «• The rule for caslinff interest vhen partial payments have been made, i», to apply the payment 
 in tTehrstvlaee TothUhcharee of the interest then due. If the payment eiceeds the xnterest^ 
 ;L lu&^trtitcLrd, dLA/r..i/t*e principal, and the subsequent interest ts to be computed 
 
160 
 
 BECKER'S BOOK-KEEPING. 
 
 DISCOUNT. 
 
 161 
 
 •« the balane* of principal remaining due. ff the paifment be lets than the interest, the surptuB 
 ef interest must not be taken to augment the principal; but interest continues on the former 
 principal until the period, when the payments, taken togftker, exceed Ike interest due, and then 
 the surplus is to be applied towards discharging the principal ; and interest is to be computed on 
 tk* balance as aforesaid." 
 
 EXAMPLE. 
 
 J^900. Philadelphia, Sept. 13/A, 1846, 
 
 Three months after date /promise to pay John Noble, 
 
 or order, Nine hundred Dollars, without defalcation, for value 
 
 received, James Mitchell. 
 
 The following endorsements were made on this note : — 
 
 Jan. 16th, 1847, received ;^175. Aug. 5th, received ^20. Oct. 9th, 
 received $^0, April 15th, 1848, received ^360. July 3d, re- 
 ceived ;^225. What was the balance due Sept. 5th, 1848 ? 
 Principal 
 Interest from Dec. 16 to Jan. 16, 1 month 
 
 First payment 
 
 Remainder, for new principal 
 
 Interest from Jan. 16 to Aug. 5, 6 mos. 21 days 
 Second Payment 
 
 Balance of interest unpaid 
 
 Interest from Aug. 5 to Oct. 9, 2 mos. 4 days 
 
 Amount 
 Third payment 
 
 Remainder of new principal 
 
 Int. from Oct. 9, 1847, to Ap'l 15, 1848, 6 mos. 6 days 
 
 Amount 
 Fourth payment 
 
 Remainder for new principal 
 
 Interest from Ap'l 15 to July 3, 2 mos. 19 days 
 
 Amount 
 
 Fifth payment 
 
 Remainder for new principal 
 
 Int. from July 3 to Sept. 5, 2 mos 2 days 
 Balance due 
 
 DISCOUNT. 
 
 It is customary with banks to calculate discount as interest. 
 This method does not give the true discount, but a sum greater 
 than it, and, of course, the present worth of the note discounted 
 is less when calculated according to the bank custom than when 
 the true method is adopted. Since it is our object, however, 
 to impart practical knowledge to the student, we shall give the 
 rules for bank discount. 
 
 
 $900,00 
 4,50 
 
 
 904,50 
 175,00 
 
 
 729,50 
 
 24,43 
 20,00 
 
 . 
 
 4,43 
 
 
 7,78 
 
 12,21 
 
 
 741,71 
 30,00 
 
 
 711,71 
 
 ays 
 
 22,06 
 
 
 733,77 
 3(K),00 
 
 
 373,77 
 
 
 4,92 
 
 
 378,69 
 
 
 225.00 
 
 
 153,69 
 
 
 1,59 
 
 m 
 
 $1.55,28 
 
 Case I. To find the discount and present worth of a note. 
 
 Rule. Find the interest on the amount of the note for three 
 days more than the given time. This will be the discount.* 
 Subtract the discount from the amount of the note and the 
 remainder will be the present worth. 
 
 EXAMPLES. 
 
 What is the present worth of a note for j?250 payable in four 
 
 months, at 6 p'ct.? 
 
 $ t ^ 
 
 250 250 250.00 
 
 2 3 5.m 
 
 5:00 6)750 244.87^ = Present worth. 
 
 m .12^ 
 
 5.125 = Discount. 
 What is the present worth of a note drawn for 31945 at 90 days? 
 
 $ 
 945 
 
 93 
 
 2835 
 8505 
 
 6)87885 
 
 14.64.7 = Discount. 
 945.00 
 $930.35.3 = Pres. worth. 
 
 The question may also be solved 
 
 in this way. 
 
 p. c. ^ 
 
 60 days = 1 = 9.45 
 
 30 « = ^ - 4.725 
 
 3 « =,^= 472 
 
 93 days 
 
 $14.64,7 =Disct. 
 
 Case II. To find the amount for which a note must be 
 drawn in order that a particular sum may be obtained. 
 
 Rule. Divide the amount to be obtained by the present 
 worth of ^1, for the given time and rate. 
 
 EXAMPLE. 
 
 For what amount must a note be drawn, so that when dis 
 counted for 60 days, its present worth shall be ^285? 
 
 .9895)285.0000(288,02 Amount of note. 
 197 90 
 
 1. 
 
 63 
 
 6)63 
 
 .0105 
 \^ 
 
 .9895 = Present worth of $1. 
 
 87 100 
 79 160 
 
 79 400 
 79 160 
 
 24000 
 19790 
 
 4210 
 
 • Discount is calculated in this way among merchants. But banks charge discount 
 for four days more than the time of the note, smce in estimating the time, they 
 count the day on which the note was discounted and the day of its maturity. 
 
 / 
 
162 
 
 BECKER'S BOOK-KEEPING. 
 
 To prove the correctness of this result, find the present worth 
 of $288.02 for the given time. 
 
 288.02 
 63 
 
 86406 
 172812 
 
 6)18145 26 
 
 3.024 = 
 288.02 
 
 285.00 
 
 Disct. 
 Pres. worth. 
 
 INSURANCE. 
 
 Insurance is a security against loss. To obtain this security, 
 the owner of the goods or other property insured is required to 
 pay to the insurer a certain percentage on the value of the 
 same. This percentage or premium is sometimes known also 
 by the name of Insurance. The written instrument by which 
 the contract is effected between the two parties is called the 
 volicy. 
 
 Case I. To find the premium to be paid for insuring a given 
 amount. 
 
 Rule. Multiply the amount to be insured by the rate of 
 premium and divide the product by 100. By adding to the 
 premium the cost of the policy y the whole cost of insurance 
 can be ascertained. 
 
 EXAMPLE. 
 
 What will it cost to insure a property valued at $5,640 at 2i 
 p'ct., the cost of the policy being $1.25. 
 
 f 
 
 5640 
 
 2i 
 
 11280 
 
 2820 
 
 141.00 
 1.25 
 
 142.25 = Cost of Insurance. 
 
 If property be insured for the exact amount of its cost, and 
 
 the amount of insurance be recovered in case of its destruction, 
 
 the owner of the property will lose the amount of the premium 
 
 and policy Hence, it is customary among merchants to insure 
 
 EQUATION OF PAYMENTS. 
 
 163 
 
 so as to cover the premium and policy, that is, to insure for 
 such an amount as will not only pay the value of the property 
 destroyed, but also the premium and cost of policy. Hence, we 
 
 subjoin 
 
 Case II. To find the amount that must be named in the 
 
 policy to cover a given amount. 
 
 Rule. Make the following statement: As the difference 
 between 100 and the rate of premium is to 100, so is the sum 
 obtained by adding the given amount to the cost of the policy 
 
 to the required amount. 
 
 » 
 
 EXAMPLE. 
 
 What sum must be named in a policy to cover ^7639, the 
 premium being 3 p'ct. and the policy ^1.25? 
 
 % 
 
 100 
 3 
 
 As »7 : 100 
 
 Proof. 
 
 $ 
 7876.54 
 3 
 
 236.29 
 1.25 
 
 23754 == Cost of Insuring. 
 7876..54 
 
 7639.00 = Value of prop, to be insured. ^^ 
 == 62 
 
 7639.00 
 1.25 
 
 7640.25 
 
 100 
 
 97)764025.00(7876.54 
 679 
 
 850 
 776 
 
 742 
 679 
 
 635 
 
 582 
 
 530 
 
 485 
 
 450 
 
 Required 
 Qamt. 
 
 EQUATION OF PAYMENTS. 
 
 Equation of payments is the finding of the average time at 
 which several amounts, due at different times, may be paid, so 
 that the debtor may not be required to pay before the money is 
 due, nor the creditor to wait for payment till after it is due. 
 
 Case I. To find the equated time of payment, when sevc 
 ral sums are payable at different periods. 
 
164 
 
 BECKER'S BOOK-KEEPING. 
 
 Rule. Multiply each amount by the time in which it wili 
 become due, and divide the sum of the products by the amount 
 of the debt ; the quotient will be the equated or average time. 
 
 EXAMPLE I. 
 
 A. owes B. v^450. Of this amount, ^160 is due in 7 months, 
 #140 in 8 months, $90 in 10 months, and j>60 in 12 months 
 What is the equated time of payment ? 
 
 •160 X 7 = 1120 
 
 8 = 1120 
 
 = 900 
 
 = 720 mo9, d*8. 
 
 140 
 
 X 
 
 8 
 
 90 
 
 X 
 
 10 
 
 60 
 
 X 
 
 12 
 
 45|0 
 
 386|0 (8 17i - Equated Time. 
 360 
 
 26 
 
 30 
 
 780 
 45 
 
 330 
 315 
 
 15 
 
 PROOF. 
 
 Calculate the Interest on $450, for the equated time, and see 
 if it equals the sum of the several amounts of interest for the 
 given times. 
 
 $1 
 
 i 
 
 450 
 
 4 
 
 8.00 
 nt for 7 
 
 t 
 
 450 
 171 
 
 7650 
 150 
 
 6)7800 
 
 1.30 = 
 18.00 = 
 
 19.30 = 
 
 = Int. for 171 days. 
 = »• « 8 mos. 
 
 = Int. of $450 for 8 mos, 171 days. 
 
 $160 
 3^ 
 
 480 
 
 80 
 
 #5.601 
 
 $140 
 4 
 
 mos. $5.60. 8 
 
 $90 $60 
 5 6 
 
 mos. $4.50 10 mos. $3 60. 12 ro 
 
 
 $5.60 
 
 5.60 
 
 4.50 
 
 3.60 
 19.30 Total amt. of InteresU 
 
 EQUATION OF PAYMENTS. 
 
 165 
 
 ANOTHER PROOF. 
 
 Find the interest on each sum payable before the equated 
 time from the time it becomes due till the equated time ; then, 
 find the discount on those sums payable after the equated 
 time, from the time of equation till the time at which they 
 become due. If the interest equals the discount the operation 
 is correct. 
 
 $ 
 
 2)160 
 
 .80 = Int. 
 
 $ 
 160 
 
 for 1 mo. 173 
 
 $ 
 
 2)90 
 
 .45 = 
 .19 = 
 
 .64 = 
 
 9 
 90 
 
 Disc't. for 1 mo. 12| 
 
 46= " 
 
 mday. 2720 
 
 >. 17i dayg. 53 
 
 6)2773 
 
 .46 2 
 
 • 
 
 " 121 days. 1080 
 Dise't. for 1 mo. 12f dys. 60 
 
 6)1140 
 
 Diwt. for 12| days = .19 
 
 $ 
 
 140 
 
 m 
 
 2380 
 46 
 
 6)2426 
 
 .404 - 
 
 Int. for 17i days, 
 talam't of Interest. 
 
 $ 
 60 
 
 u 
 
 60 
 30 
 
 90 = 
 12 = 
 
 $1.02 = 
 
 $ 
 
 60 
 
 12f 
 
 720 
 
 40 
 
 = Di8cH.forSinos. 6)760 
 
 = " « mdays. .12 6- ^'f^'JVL 
 . Di«c't. for 3 mos. ^^ ***^ 
 121 days. 
 
 1.26 
 40 
 
 $1.66 To 
 
 
 1.02 
 64 
 
 $1.66 Total amount of Discount. 
 
 The last mode of proof shows the object of the equation, 
 which is to make the several sums payable at such a time that 
 the interest on those sums payable before the expiration of the 
 equated time will annul the discount on those payable after its 
 expiration. 
 
 EXAMPLE II. 
 
 Boi.ght goods as follows, viz : — $75. on the 4th of Feb. ; i59 
 en the 8th of April; ^84. on the 17th of June; and $2H, on tae 
 
166 
 
 BECKER'S BOOK-KEjBPING. 
 
 EQCATION OF PAYMENTS. 
 
 167 
 
 Ti I 
 
 12 til of August. What is the equated time for paying ine 
 
 wliole amount at once? 
 
 Feb. 4th, $75 — due at this date.* 
 Apl. 8th, 59 X 63 -= 3717 
 June 17th, 84 x 133 = 11172 
 Aug. 12ih, 28 X 190 = 5320 
 
 246 
 
 )20209(82 days. 
 1968 
 
 529 
 492 
 
 37 
 
 The equated time, then, is 82 days from Feb. 4th, which is 
 April 26th. 
 
 Case II. To find the equated time, when goods are pur 
 chased or sold at diflferent times, but on the same length of 
 credit, or when notes having the same length of time to run, but 
 drawn at different periods, are discounted. 
 
 Rule 1. Multiply each sum by the time intervening between 
 the date on which the first sum falls due and that on which 
 each sum respectively falls due; divide the sum of the products 
 by the whole amount of debt and the quotient will be the 
 equated time, to be added to the date at which the first amount 
 becomes due. i 
 
 EXAMPLE. 
 
 Purchased goods as follows, at 8 months credit. What if 
 the average time of payment? 
 
 April 8th, 
 June 9th, 
 July 7th, 
 Sept. 12th, 
 
 $125 
 286 X 62 = 17732 
 359 X 9J = 32310 
 
 J50 X 157= 23550 
 
 92j0 
 
 )7359|2(79 
 644 
 
 919 
 
 828 
 
 912 
 
 80 days from April 8th will bring the equated time to June 
 27th. A note dated on that day at 8 mos. will become due 
 Feb. 27th of the ensuing year. 
 
 • The equated time may be found by reckoning from the present period or fron 
 the time that the first payment becomes due. In the latter case, the multiplier of 
 111* firat payment ia, of cou*8e, nothing. 
 
 Rule 2. Multiply each sum by the time intervening be- 
 tween the date on which the last sum falls due and that on 
 which each sum respectively falls due ; divide as before and the 
 quotient will be the equated time to be carried back from the 
 date at which the last amount falls due. 
 
 In cases like this, the equated time may be found also by the 
 
 following method, which is the reverse of the operation just 
 
 given. 
 
 $125 X 157 = 19625 
 
 286 X 95 = 27170 
 
 359 X 67 = 24053 
 
 150 
 
 9210 
 
 )7084|8(77 
 644 
 
 644 
 644 
 
 8 
 77 days back from Sept. 1 2th, will make the day of equation 
 fall on the 27th June. Thjs result, it will be seen, is the same 
 as that obtained by the other method. 
 
 PROOF. 
 
 Multiply each purchase made before the equated time by the 
 number of days between it and the equated time, and find the sum 
 of the products. Multiply, separately, the purchases made after 
 the equated date, by the time between the equated date and 
 the date of purchase, and find the sum of the products. If this 
 be equal to the first sum, the operation has been correctly p«r- 
 
 formed. 
 
 125 X 80 = 10000 359 x 10 = 3590 
 286 X 18 = 5148 150 x 77 = 11550 
 
 15148 
 
 15140 
 
 The above sums cannot be made exactly equal unless we 
 make use of the fractions. It will be seen, by reference to the 
 example, that the equated time is not 80 days from April 8th, 
 but 79 days and a large fraction of a day. But as it approaches 
 so nearly to 80, we have adopted that number for ease in cal- 
 culation. Hence, the difference between the two results cen- 
 tained in the proof 
 
 EXAMPLE II. 
 
 Discounted on the 8th of January at the Mechanics Bank, 
 
16S 
 
 BECKER'S BOOK-KEEPUNG. 
 
 four notes, as follows, each note being drawn at 3 mos. Wlial 
 is the average time of payment? 
 
 One due Feb. 12, «600 
 " Mar. 8, 200 
 May 6, 350 
 24, 550 
 
 i 
 
 600 
 200 X 
 350 X 
 
 
 it 
 
 24 = 4800 
 86 = 30100 
 
 550 X 104 = 57200 
 
 17,00 
 
 )92l|00(54i* days 
 85 
 
 71 
 68 
 
 3 
 
 54t\ days from Feb. 9th, brings the day of equation on April 4th 
 
 FROpF. 
 
 $600 X 54^ = 32506 $350 X 31|f = 11138 
 200 X 31tV = 6035 550 X 49if « 27403 
 
 38541 
 
 38541 
 
 Case III. To find the equated time when goods are pur- 
 chased or sold at different times, and at different terms of credit, 
 or when notes drawn for different times are issued at different 
 
 periods. 
 
 Rule. Find the time at which each amount becomes due 
 
 and make the equation as in Case XL 
 
 EXAMPLE. 
 
 Sold goods as per statement annexed. What is the equated 
 ime of payment for the whole amount? 
 
 Jan'y. 20, $200 at 3 rao's. 
 Feb. 8, 350 " 4 
 May 5, 250 " 2 
 June 9, 400 " 3 
 
 The sale made 
 
 Jan'y. 20 is due April 20, $200 
 Feb. 8 " " June 8, 350 X 
 May 5 " " July 5, 250 X 
 
 (t 
 
 ii 
 
 (« 
 
 49 - 17150 
 76 — 19000 
 
 June 9 
 
 i( 
 
 Sept. 9, 400 X 142 «^6800 
 
 12(00 
 
 )929i50 
 
 77//.= ii 
 77U days from April 20th, brings the period of equation to 
 
 July 6th. 
 
 This question may be solved also by Rule II. of Case II., and 
 the method of proof is the same as in Case II 
 
 EQUATION OF PAYMENTS. 
 
 169 
 
 EXAMPLE. 
 
 Received in payment for goods drawn as per statement an- 
 nexed. What is the eqated time of payment for the aggregate 
 
 amount of the notes ? 
 
 One dated Jan. 28, at 60 days $600 
 
 i( 
 
 
 
 «( 
 
 Mar. 
 
 April 
 June 
 
 The not! dated 
 
 Jan. 28 is due Mar. 
 
 Mar. 
 
 Apl. 
 June 
 
 7 " 
 
 2 « 
 
 19 " 
 
 (( 
 
 (( 
 
 «( 
 
 Apl. 
 July 
 July 
 
 7, 
 
 2, 
 
 19, 
 
 29, 
 6, 
 1, 
 
 19, 
 
 (( 
 
 i( 
 
 30 
 90 
 30 
 
 AmH. 
 $600 
 
 350 
 
 950 
 
 1200 
 
 31100 
 
 (( 
 
 n 
 
 X 
 X 
 X 
 
 350 
 
 950 
 
 1200 
 
 Day». Produett, 
 
 lU = 67200 
 
 lot = 36400 
 
 18 «= 17100 
 
 )12o7|00(38 
 93 
 
 277 
 248 
 
 29 
 
 31 
 
 39 days back from July 1 9th makes the equated time June 10th. 
 
 Case IV. When goods are bought or sold ^i a given credit, 
 and partial payments are made before the expiration of the 
 stipulated term of credit, to know how long the balance may run 
 to cancel the interest on the payments made before maturity. 
 
 Rule. Multiply each payment by its time after the date of 
 purchase ; subtract the sum of the products thus obtained from 
 the product of the whole debt by the term of credit; divide 
 the remainder by the balance due at the expiration of the term 
 of credit, and the quotient will be the time that the balance may 
 run from the date of the sale. 
 
 example. 
 
 Bought at 8 months' credit, a quantity of Mdse., amounting 
 to |!9640. At the end of two mos. paid ^860. ; at the end of three 
 mos., |>1500; at the end of 5 mos., ^750: at the end of 6 mos., 
 gl2000; and at the end of 7 mos., $500. When will the balance 
 become due? 
 
 5610 
 
 25470 
 
 22 
 
 403 
 
 
 li A 
 
 
 i'^ 
 
 
 $9640 
 
 X 
 
 8 = 
 
 = 77120 
 
 $ 
 
 5610 Deduct. 
 
 25470 
 
 860 X 2 = 1720 
 
 403 
 
 
 
 )5165|0(12f §1 moa. 
 
 1500 X 3 = 4500 
 
 
 
 
 403 
 
 750 X 5 - 3750 
 
 
 
 
 1135 
 
 2000 X 6 = 12000 
 
 
 
 
 806 
 
 500 X 7 — 3500 
 
 • 
 
 
 
 329 
 
170 
 
 BECKER'S BOOK-KEEPING. 
 
 PROOF. 
 
 Find the discount on all these amounts that were paid before 
 maturity, for the time required to make up the given term of 
 credit. If the sum of these discounts equal the interest on the 
 balance due for the time that it runs beyond the given term of 
 credit, the work is correct. 
 
 $860 
 3 
 
 25.80 = Disc't. for 6 mos. 
 
 $1,500 
 
 21 
 
 3.000 
 750 
 
 $25.80 
 
 37.50 
 
 11.25 
 
 20.00 
 
 2.50 
 
 $i»7.05 Total Discount. 
 
 37.50 = Disc't. for 5 mos. 
 
 $750 
 375 
 11.25 = Disc't. for 3 mos. 
 
 $2000 
 1 
 
 4030 
 
 4iif 
 
 20.00 = Disc't for 2 mos. 
 
 16120 
 3290 
 
 2)500 
 2.50 
 
 2)19410 
 
 = Disc't. for 1 mo. 97.05 = Int. for 12iS| — 8 = 4iH 
 
 Case V. To average an account when there is a debit and 
 credit of unequal amounts and the total of each is due at differ- 
 ent periods, so that neither the debtor nor creditor shall be 
 entitled to a balance of interest. 
 
 Rule. Find the average or equated time for the Dr. and 
 the Cr. side of the account, according to the rule already given; 
 then, multiply the smaller sum by the time between the dates 
 thus found, and divide the product by the balance of the 
 account; the quotient is the time to be carried back or forward 
 as the case may require. If the balance be on the side of the 
 EARLIEST date, count back from that date; if it be on the side 
 of the LATEST date, count forward from that date. 
 
 EXAMPLE. 
 
 Bought goods of A. B. at different times to the amount of 
 SlSOOj'which amount is due, by equation, July 8th; and I have 
 sold him at different times, goods to the amount of ^1500, the 
 
 EQUATION OF PAYMENTS. 
 
 171 
 
 same being due, by equation, May 24th. When must I pay 
 the balance, in order that neither of us shall be entitled to 
 interest ? 
 
 $1500 
 45 
 
 7500 
 6000 
 
 Smaller sum. 
 
 No. of days between the dates. 
 
 Balance = 
 
 3|00)675|00 
 225 
 
 The balance is on the side of the latest date ; therefore, the 
 quotient must be added to it, or in other words, we must count 
 forward 225 days from July 8th, which will bring the equated 
 time to Feb. 19th, of the ensuing year. 
 
 PROOF. 
 
 From July 8 to Feb. 19, is 225 days 225 X 1800 
 Mar. 24 to Feb. 19, is 270 " 270 X 1500 
 
 ti 
 
 405000 
 405000 
 
 EXAMPLE II. 
 
 A. B. owes me for goods purchased at different times, |>1500, 
 which is due July 8th. I owe him for several parcels of goods 
 iglSOO, which is due May 24th. When must the balance be 
 paid so that neither party shall be entitled to interest ? 
 
 1500 X 45 = 6700 
 6700 -i- 300 = 225 
 
 The balance is, here, in favour of the earliest date ; therefore 
 we must count back 225 days from May 24th, which will make 
 the period of equation Oct. 11th of the preceding year. 
 
 PROOF. 
 
 Jimount. Days. 
 
 From Oct. 11 to July 8, is 270 days 1500 X 270 
 « Oct. 11 to May 24, is 225 " 1800 X 225 
 
 EXAMPLE III. 
 
 Product*. 
 
 405000 
 405000 
 
 Equate the payment of the account sales annexed — 
 
172 
 
 BECKER'S BOOK-KEEPING. 
 
 Sales of Brandy, received per brig Jamestown, I. Howe, 
 master, from New York, on account of Messrs. J. Morton & Go. 
 there. 
 
 When 
 Sold. 
 
 1847. 
 Jan. 16. 
 Feb. 1. 
 Mar. 20. 
 June 15. 
 
 Ian. 5. 
 
 M M 
 
 Purchasers. 
 
 Geo. Williams. 
 Wm. Morris & Co. 
 Thos. Barton & Son. 
 Abraham Myers. 
 
 Terms. 
 
 2 mos. 
 
 3 •' 
 
 4 * 
 3 « 
 
 Brandy. 
 
 Pipes. 
 
 39 
 
 35 
 
 19 
 
 7 
 
 Gallons. 
 
 3770 
 
 4480 
 
 2369 
 
 911 
 
 90 1 11520 
 
 When Due. 
 
 Mar. 16 
 
 May 1 
 
 July 20 
 
 Sept 15 
 
 Price. 
 
 $1.00 
 1.04 
 99c 
 1.02 
 
 CHARGES. 
 
 To Cash paid Freight on 90 Pipes 
 
 " Cash paid Wharfage and Dray age to Store . . 
 
 «* Advertising 50c, Storage $56, Labour 7.50 . . 
 
 « Commission on Sales $11693j^'jy (S 2^ p'ct . . 
 Net proceeds due ^subject to collection) May 15th, 1847. 
 
 149.60 
 45.62 
 63.00 
 
 292.35 
 
 Amount 
 
 3770 
 4659 
 2335 
 
 00 
 20 
 41 
 
 929 22 
 
 11693 83 
 
 650 
 
 8'5 
 
 $1U42 9C 
 
 E. E. Philadelphia, June 18th, 1847. 
 
 N.N. 
 
 In equating the above account, the first thing to be done is 
 to ascertain the average maturity of the gross sales. This can 
 be done by the rule under Case III. 
 
 When Due. 
 
 Mar. 16, 
 
 May 1, 
 
 July 20, 
 
 Sept. 15, 
 
 JmaunU. 
 
 
 Daft. 
 
 
 Prodvets. 
 
 $3770 
 
 
 
 
 
 
 4659 
 
 X 
 
 46 
 
 BS 
 
 214314 
 
 2336 
 
 X 
 
 126 
 
 1= 
 
 294336 
 
 929 
 
 X 
 
 183 
 
 » 
 
 170007 
 
 11694 
 
 
 
 
 )678657^585VA 
 58470 
 
 93957 
 93552 
 
 405 ^ 
 
 11694 
 
 58 days from Mar. 16 makes the day of the average maturity 
 
 of the gross sales May 13. 
 
 The next thing to be ascertained in a case of this kind is the 
 average date of the cash charges; but, in this example, the 
 date of all the cash charges is the same, (Jan'y. 5th,) and, 
 hence, the operation for that purpose is unnecessary. 
 
 Having thus, in compliance with the first direction of our 
 lule equated the Dr. and Cr. side of the account, we can by 
 
 EQUATIOJN OF PAYMENTS. 
 
 lis 
 
 applying the remaining portion of- the rule, find the average 
 maturity of the net proceeds. 
 
 Date of Cash charges, Jan. 5th, 1847 
 Maturity of Gross sales. May 13th, " 
 Cash Charges = $195 $195 X 128 = 24960 
 
 Net proceeds 
 
 $11143 
 
 )24960(2rVr'4V days. 
 22286 
 
 2674 
 
 11143 
 
 The aTierage maturity of the net proceeds is two days after 
 May 13th, which will make it fall on May 15th. It is easy to 
 see how the last part of the operation is in conformity with the 
 rule. The smaller sum is, in this case, the Cash charges. This 
 is multiplied by " the time between the dates," that is, by the 
 time between the date of the Cash charges and the maturity of 
 the gross sales. The product is then divided "by the balance 
 of the account," that is, by the net proceeds. The quotient is 
 the number of days to be counted forward from the latest date, 
 because the balance is " on the side of the latest date." 
 
 PROOF. 
 
 Average time of the Cash Charges, Jan. 5th, 
 " " " Gross Sales May 13ih. 
 
 The difference is 128 days, and, for that period, the factor is 
 
 entitled to interest for his advance of ^^195, the amount of Cash 
 
 charges. 
 
 $195 
 128 
 
 1560 
 390 
 195 
 
 6)24960 
 4.16|0 = Int. for 128 days. 
 The owner of the Mdse. is entitled to interest on the net 
 proceeds due him, for the time between the maturity of the gross 
 sales and the maturity of the net proceeds, which, in this case, 
 is about 2i days. 
 
 $11143 
 
 2i 
 
 22286 
 
 2786 
 
 6 )25072 
 
 4.17|8 = Interest for 2| days. 
 Making allowance for the slight error in the fraction, this 
 
 ' r 
 
174 
 
 BECKER'S BOOK-KEEPING. 
 
 result corresponds with the other, and the correctness of the 
 work is proved. 
 
 The calculation which we have just gone through is of vast 
 importance in the Commission business, as it is in constant use 
 in making up sales. 
 
 PARTNERSHIP. 
 
 Partnership is the union of two or more persons in trade 
 The individuals associated taken collectively, are called ?i firm. 
 The amount of property of every kind, which each partner in- 
 vests is called his capital, or stock in trade, and the total invest- 
 ments constitute the capital of the firm. The rules lor distri- 
 buting gains or losses among the partners are very simple, and 
 are given here to refresh the memory of the student. 
 
 Case I. To distribute gains or losses when each partner's 
 stock is employed on equal length of time. 
 
 Rule. Make the following statement. 
 
 As the whole capital is to each partner's capital, so is the 
 whole gain or loss to each partner's share of the same. 
 
 N. B. This rule will also apply to the distribution of a bank- 
 rupt's estate among his creditors, and to the adjustment of 
 legacies, when there is a deficiency of assets. 
 
 EXAMPLE. 
 
 A, B, and C entered into partnership for one year. A put 
 in ^960, B, $1500, and C, $650. They gained ^800. What was 
 each partner's share of the gain ? 
 
 • 
 
 $ 
 
 • $ 
 
 960 
 
 15()0 
 
 650 = 31 10 =Whole capital 
 
 • 
 
 • 
 
 f 
 
 Aa 3110 : 
 
 960 
 
 : : 800 : ^^'le.QS = A'a ahare 
 
 3110 : 
 
 15U0 
 
 : : 800 : 385,85 = B's share 
 
 3110 : 
 
 650 
 
 : 800 : 167 20 = C's share 
 
 f 100,00 = Total gaina. 
 
 Case II. To distribute gains or Idsses when the capital of 
 the partners is invested for unequal lengths of time. 
 
 Rule. Multiply each partner's "capital by the time it was em- 
 ployed, and add together the resulting products. Then say, as 
 the sum of the product is to each man's product, so is the 
 whole gain or loss to each man's share of the same. 
 
 example. 
 A, B, and C entered into partnership. A put in g800 for 
 one year, B, ^900 for 8 months^ and C, 151200 for 15 months 
 They gained ^950. What was the gain of each ? 
 
 
 Jimt. 
 
 800 
 
 900 
 
 1200 
 
 : 9600 : : 
 : 7200 : : 
 : 18000 : : 
 
 Jtf0«. 
 13 
 8 
 15 
 
 #950 
 950 
 950 
 
 Produettt 
 = 9600 
 = 7200 
 "— 180«»0 
 
 34b00 
 
 As 34fm 
 34800 
 34800 
 
 : 26i,07 = A'l share 
 : 196,55 = B's share 
 : 491.38 = C's share 
 
 950,00 Whole fain. 
 
 AVERAGE. 
 
 GENERAL AVERAGE. 
 
 175 
 
 This term denotes the contributions made by the owners of 
 a vessel, its cargo, and freight, when any portion of the same 
 has been voluntarily and deliberately sacrificed, to insure the 
 safety of the rest. The property sacrificed is called jettison. 
 When a vessel encounters a violent storm, and it is necessary, 
 in consequence, to cut away masts, rigging, anchors, &c., or to 
 throw a part of the cargo overboard, the owners of the vessel, 
 the cargo, freight, and jettison, must contribute to the general 
 average. When a vessel is obliged to put into port for repairs, 
 &c., the expenses of the same, together with the expenses of 
 detention, including officers' and seamen's wages, provisions, 
 &c., are brought into general average. 
 
 Other cases, which are the subject of general average, might 
 be stated, but it is unnecessary. They will readily be sug- 
 gested, when the object of the average is known. It is to distri- 
 bute the total loss in an equitable manner among those whose pro- 
 perty is saved after a portion has been abandoned for general 
 safety. The jettison must also contribute — otherwise its owner 
 will not share in the general loss. Every thing on board but 
 wearing apparel contributes to the average. Seamen's wages, 
 however, do not contribute, in order that there may be no in- 
 ducement, on their part, to oppose a necessary sacrifice of 
 property. 
 
 In computing the average for masts, rigging, &c., a deduc- 
 tion of one third is made from the cost of replacing them, be- 
 cause the new articles are so much better than the old ones. 
 
 PARTICULAR AVERAGE. 
 
 This refers to a partial loss ; that is, a loss aflfecting only a 
 portion of those who have an interest in the ship and cargo, or 
 in either of them. Thus, if any of the ship furniture be ren- 
 dered useless by ordinary wear and tear, or an anchor, &c., be 
 accidentally lost, or any sacrifice is made for the benefit of the 
 cargo only, or of the ship only, the loss must be apportioned 
 among the parties concerned. In making a general average, 
 the particular average is deducted from the original value of 
 the damaged property, and the remainder contributes to the 
 general average. 
 
 The mode of adjusting a general average will be best ex- 
 plained by the following example. It is, in substance, taken 
 from Dando's work on Book-keeping. We have slightly modi- 
 fied it, to show the mode of working particular average. The 
 mode of adjusting the general average is that given by Chief 
 Justice Tenterden in his work on the Law of Shipping. 
 
176 
 
 BECKER'S BOUK-KBKrma. 
 
 EXAMPLE. 
 
 A ship bound to New York is overtaken by a dense fog; she 
 strikes on a sand bar near Sandy Hook, and it is necessary to 
 cut the cable ; the danger increasing, a part of the cargo is 
 thrown overboard, the masts are cut away, &c. It is required, 
 from the data annexed, to adjust the general average. 
 
 Expenses and Losses. 
 
 Amounts. 
 I 
 
 Contribatary Interests. 
 
 Amounts. 
 
 A's goods cast overboard 
 B's do do do 
 C's do damaged 
 D's do do 
 
 Freight of goods cast overboard 
 
 Cost of new cable, anchor. 
 
 &.C. #1500.00 
 
 Deduct one third 500.00 
 
 2780 
 
 335 
 590 
 460 
 
 \ 
 
 1000 
 343 
 
 500 
 
 36 
 
 5 
 
 100 
 
 00 
 00 
 00 
 00 
 00 
 
 00 
 00 
 
 00 
 00 
 00 
 00 
 
 A's goods cast overboard 
 B's do do do 
 Value of B's goods, deducline 
 freighi and charj:e8 #6800,0U 
 Deduct fur damages* 410,00 
 
 C*8 goods, deducting freight and 
 
 charges 
 D's do do do 
 E's do do do 
 F's do do do 
 Value of the ship #11500,00 
 Deduct for damages 
 
 and premium* 1500.00 
 
 2780 
 1613 
 
 6390 
 
 14225 
 5119 
 2255 
 
 4818 
 
 10000 
 3800 
 
 00 
 00 
 
 00 
 
 00 
 UO 
 00 
 00 
 
 00 
 
 00 
 
 Expenses of bringing the ship 
 
 oiTthe bar 
 Pilotage and port duties going 
 
 into the harbour and out, and 
 
 commission to the disbursing 
 
 azent 
 Adjusting the average 
 I'ostaste 
 Expenses in port 
 
 Value of the freight #7600,00 
 Deduct for seamen's 
 wagesf 3800,00 
 
 7650 
 
 00 
 
 * This eiempTtftn particular avtrare. 
 T This if ih« deduction in rte in New 
 Tork. In other ports one tbiid ii deducl^d. 
 
 51000 
 
 00 
 
 
 
 
 The proportion of the losses and expenses which each party 
 is to bear will be found by the following statement: 
 
 As $51000 : $7650 : : $100 : $15. 
 
 That is, each party must lose 15 p'ct of his interest in the 
 cargo, ship, or freight. Therefore A loses vS417; B, 1200,45; 
 C, 52133,75; D, ^^767,85; E, jS338,25; F, ig722,70 ; the own- 
 ers of the ship |»2070. 
 
 The following tabular statement will show the whole result 
 at a glance. 
 
 Parties. 
 
 Losses. 
 
 Contribu- 
 tions. 
 
 Am'ts to 
 be paid. 
 
 Am'ts to 
 be rec'd. 
 
 Owners of the ship 
 
 B. 
 
 C. 
 D. 
 E. 
 F. 
 
 2332 
 
 8780 
 
 161.1 
 
 335 
 
 590 
 
 ^~7m 
 
 00 
 00 
 00 
 00 
 00 
 
 00 
 
 1 
 
 2070 
 417 
 1200 
 2133 
 767 
 338 
 722 
 
 ?650 
 
 00 
 00 
 45 
 75 
 85 
 35 
 70 
 
 00 
 
 17P8 
 177 
 338 
 722 
 
 75 
 
 85 
 25 
 70 
 
 30.{7 Pss" 
 
 262 
 
 2363 
 
 413 
 
 .3037 
 
 (K) 
 00 
 55 
 
 55 
 
 From the above statement it will be seen that the amount to 
 be 2ontributed by each party is not actually paid into the com- 
 mon treasury, and the total distributed among the losers ; but 
 
 DOMESTIC EXCHANGE. 
 
 177 
 
 that, when any party loses more than he contributes, the over- 
 plus is paid to him, and, on the other hand, when any one is to 
 contribute more than his loss, he pays the overplus. Hence the 
 amount paid must eoual that received. Such is the case in the 
 foregoing example. 
 
 DOMESTIC EXCHANGE. 
 
 What should be paid in New York for a draft on St. Louis 
 
 for $925, premium on the same being 2i p'ct. ? 
 
 $ 
 As 100 : 102.5 : : 925 
 925 
 
 5125 
 2050 
 9225 
 
 100 )94812.5 
 
 $948.1215 = Value of the D*ft. in New Yorlu 
 
 Or the same result may be obtained by following the ordinary 
 
 rule of percentage. 
 
 925 
 
 n • 
 
 1850 
 4621 
 
 23.122 = Premium. 
 925. 
 
 $948.12^ «= Val. of D'ft. in New York. 
 
 A. B. of New York owes C. D. of St. Louis ^925. For what 
 
 sum should the latter draw, adding 2i p'ct., so that if the draft 
 
 be collected at that rate, he will receive ig>925, the full amount 
 
 of his account ? 
 
 $ 
 As 97.5 : 100 :: 925 
 
 100 
 
 97.5)92500.0(948.72 = Am't. of the D'ft. 
 
 8775 
 
 4750 
 3900 
 
 8500 
 
 7800 
 
 7000 
 6825 
 
 2450 
 1950 
 
 500 
 
178 
 
 BECKER'S BOOK-KEEPING. 
 
 PRoor. 
 
 $948.72 
 
 21 
 
 189744 
 47436 
 
 Deduction for collecting. 
 Am't. of D7t. 
 
 $925.00|5 = Proceeds of D'ft. 
 
 2;i.71|80 
 948.72 
 
 FOREIGN EXCHANGE. 
 
 The United States on Great Britain. 
 
 del Sterling 
 $1 = 4s, 6d, 
 Therefore, ^61= W 
 
 240rf. 
 54rf. 
 V of a dollar 
 
 Hence, any given number of pounds sterling will be equal to 
 so many times V of a dollar; or, in other words, to bring 
 pounds sterling to dollars, multiply by 40 and divide the pro- 
 duct by 9. To bring dollars Uo pounds, the operation is, of 
 course, reversed. 
 
 What is the par value in Federal money of jESTO. 5s, 6d,} 
 
 12)6.0 870.275 
 
 20)5.500 
 .275 
 
 40 
 
 9)34811000 
 
 $3867.88|8 
 
 What must be paid for a bill on London for jBISOO, the prt 
 mium being 9\ p'ct. ? 
 
 1500 
 
 9)60000 
 
 6666.66f 
 9i 
 
 6000000 
 1666t)6f 
 
 616.661 
 
 6666.661 
 
 $7283.331 
 
 Premium. 
 Am't. of Bill. 
 
 Cost of Bill. 
 
 $616.66|66f 
 
 A commission merchant desires to remit to his consignor in 
 England, the proceeds of a sale amounting to jl72 83,33 i. For 
 
 MEASUREMENT OF WHEAT. 
 
 179 
 
 what sum must the set of exchange be drawn, the premium 
 Deing 9i p'ct. 
 
 00 
 
 The question can also be solved in the following way : 
 
 £ $ 
 9 « 40 
 
 Adding 9| pc't. for premium, £9 = $43,70 
 
 9 9 dK 
 
 As 437.0 : 7283.33^ : : 9 
 
 ?_ £ 
 
 437|0)655500|0(1500 = Am't. of Bill. 
 
 2185 
 2185 # 
 
 00 
 
 We do not think it advisable to treat of exchange on other 
 countries than Great Britain, because to do so would occupy 
 too much space, and the student can refer for information on 
 that subject to works treating extensively of commercial arith- 
 metic. We have selected exchange with Great Britain, because 
 a knowledge of it is necessary in using this work. 
 
 MEASUREMENT OF WHEAT. 
 
 The legal weight of. a bushel of wheat is 60/5. But, as each 
 bushel does not contain that amount, it becomes necessary, 
 when a large quantity of wheat is sold, to ascertain the number 
 cf bushels actually sold, estimating each bushel at its legal 
 
 
 $ 
 109. 
 
 $7283.331 
 9 
 
 £ 
 : 1638.75 
 
 100 £ 
 
 25)16387500(1500 = 
 10925 
 
 54625 
 54625 
 
 Am't. 
 
 1 
 
 I 
 
 of Bill. i 
 
 
 4 0)655500 
 
 
 ;ei638.75 
 
 As 
 
 $ 
 25 : 100 : : 
 
 109. 
 
I 
 
 180 
 
 BECKERS BOOK KEEPING. 
 
 MEASUREMENT OF WHISKY 
 
 181 
 
 weight. This must be done either by calculation or by weighs 
 ing each bushel as it is measured. As the latter process would 
 be tedious, the former is, in practice, adopted. The materials 
 for making the calculation are obtained in this manner: — Fifty 
 bushels are measured, and half a bushel is put into a bag; fifty 
 more are measured, and another half bushel is thrown into the 
 same bag. The bushel thus collected in the bag is weighed, 
 and its weight is set down as the average weight for each of 
 the hundred bushels. The same process is gone through with 
 th« next hundred bushels, and continued till each hundred is 
 disposed of. A statement is then made out, in which are 
 written, first, 100 Bus.; secondly, the average weight of that 
 hundred; and, thirdly, the actual measurement of the same at 
 60lb. to the bushel. These items are written in one line. 
 Under these are placed the same items relative to the second 
 hundred, &c. From this statement we can calculate the actual 
 legal measurement of the quantity sold, by the following 
 
 RULE. 
 
 1st. Add up the column of bushels, to ascertain th€ number 
 of bushels sold. 
 
 2d. Add up the weight column to ascertain the sum of the 
 average weights of the bushels composing each hundred. 
 
 3d. Make the following statement: 
 
 As the number of hundred bushels is to the number of 
 bushels, so is the sum of the average weights to the weight of 
 the given number of bushels. 
 
 4th. Divide the weight thus obtained by 60 to ascertain the 
 number of bushels by weight. 
 
 To test the correctness of the operation, we offer the follow 
 ing method of 
 
 weight. If tlie sum agrees with the result ascertained ty the 
 preceding rule, the work has been correctly performed. 
 
 
 
 
 EXAMPLE. 
 
 
 
 
 By 7neaiurement, 
 
 By weight. 
 
 By measurement. 
 
 By weight 
 
 But. 
 
 Iht. 
 
 at. 
 
 Bus. lbs. 
 
 Bus. 
 
 lbs. 
 
 CM. 
 
 Bus. lbs. 
 
 100 
 
 56 
 
 6 
 
 93 57d 
 
 100 
 
 57 
 
 9 
 
 95 56i 
 
 100 
 
 59 
 
 2 
 
 98 321 
 
 100 
 
 59 
 
 
 98 20 
 
 100 
 
 60 
 
 
 100 
 
 100 
 
 58 
 
 7 
 
 97 23i 
 
 100 
 
 100 
 
 67 
 
 8 
 
 95 50 
 
 100 
 
 60 
 
 
 100 
 
 58 
 
 
 96 40 
 
 100 
 
 61 
 
 12 
 
 102 55 
 
 100 
 
 61 
 352 
 
 But. 
 
 But. 
 
 101 40 
 
 100 
 600 
 
 58 
 355 
 
 at. 
 
 4 
 
 Sba. 
 
 97 05 
 
 600 
 
 5S6 40 
 
 591 40 
 
 
 But. 
 
 
 Ot. 
 
 
 600 
 
 * 
 
 + 600 
 
 But. 
 
 is 1 
 
 ) =. 1200 
 
 But. lbs. 
 
 : 100 : : 707 
 
 100 
 
 6 0)7070 
 
 Bus. 1178,20 
 
 352 
 
 lbs. 
 
 + 355 
 
 - 707 
 
 
 PROOF. 
 
 
 
 
 »«. 
 
 Vtt. 01. But. 
 
 But. 
 
 at. 
 
 
 
 
 60 : 
 
 56 6 : : 100 : 
 
 93 
 
 57d 
 
 
 
 
 60 : 
 
 59 2 : : 
 
 100 : 
 
 98 
 
 32d 
 
 
 The above will be sufficient to exemplify the manner in which 
 the number of bushels by weight to the hundred by measure- 
 ment is ascertained. 
 
 But. 
 
 586 
 591 
 
 Ot. 
 
 40 
 40 
 
 1178 20 = No. of Bus. by measurement. 
 
 This result, it will be seen, is the same as that previously 
 obtained. 
 
 PROOF. 
 
 Ascertain the number of bushels by weight in each hundred 
 bushels by measurement. This can be done by making the 
 following statement. 
 
 As 60lbs, is to the average weight -of the bushels of the 
 hundred, so is 100 measured bushels to the number of bushels 
 by weight. 
 
 2d. Add up the column containing the number of bushels by 
 
 MEASUREMENT OF WHISKY. 
 
 To find the number of gallons of pure whisky equivalent to 
 a given number of the adulterated article. 
 
 There is a certain standard of strength adopted by which the 
 relative purity of whisky can be ascertained. Whisky of a 
 certain strength is denominated whisky of 100°. If we have 
 given a certain number of gallons of more than 100°, it is 
 
182 
 
 BECKER'S BOOK-KEEPING. 
 
 evident that they will be equivalent to a greater number 100" 
 strong. But, if we have a certain number less than 100° in 
 strength, they will be equivalent to less than that number lOO*' 
 strong. Hence, to ascertain the number of gallons at lOO*', we 
 have the following 
 
 RULE 
 
 Add together the number of gallons of each kind. Then, if 
 the whisky be less than 100° strong, deduct the percentage 
 below par from the whole number of gallons ; but, if it be of 
 greater strength than 100°, add the percentage above par to the 
 whole number of gallons. 
 
 EXAMPLE. 
 
 Find the number of gallons of whisky, 100° strong con 
 tained in 30 bbls., the contents of which are the following: 
 
 36, 34§, 32, 33, 35d, 
 
 32, 36^, 311, 30, 321, 
 
 32, 33, 35, 34^, 32^, 
 
 36, 35^, 32, 30, 31d, 
 
 31, 30, 36, 35, 32, 
 
 36, 34, 32, 30, 33, 
 
 
 323.01 
 
 338.64 
 
 329.00 
 990.65 Gals. 
 
 In the above statement 
 
 *^ means 3 p*ct. below par. 
 % " 2 " above •• 
 • " par. 
 
 BLOOM AND BAR IRON. 
 
 An ordinary ton of iron weighs 2240 lbs. This is called 
 gross weight. By adding 10 p'ct. to this, we obtain the weight 
 of a ton of " Bloom Iron," which is 2464 lbs. This is usually 
 denominated double gross weight, and by this Aveight Bloom 
 Iron is invariably sold. 
 
 This 10 p'ct. is allowed by the manufacturer to the purchaser 
 for waste in working it down to " Bar Iron." It is about equal 
 io the actual waste. 
 
 BLOOM AND BAR IRON. 
 
 183 
 
 Case I. To convert Bar Iron weight to Bloom Iron weight. 
 
 Rule. Deduct from the weight of the former in pounds, one 
 eleventh of itself, and divide the remainder by 2240 ; or divide 
 the number of pounds of Bar Iron by 2464. 
 
 T. 
 
 8 
 
 Cvt. Qr. 
 
 17 1 
 
 Reduce 
 Bloom Iron weight. 
 
 EXAMPLE I. 
 Lbs. 
 
 14 (19866 lbs.) Bar Iron weight to 
 
 Lbs. 
 11)19866 
 1806 
 
 T. 
 
 S34i0 )1806 0( 8 
 1792 
 
 14 
 30 
 
 Cv>t. Qr. 
 
 1 1 Bloopi Iron weight. 
 
 280 
 284 
 
 56 
 
 4_ 
 
 224 
 224 
 
 Applying the other rule, the operation will be the following. 
 
 Qr. 
 1 Bloom Iron weight. 
 
 T. Cvt, 
 2464 )I9866( 8 1 
 19712 
 
 154 
 20 
 
 3080 
 2464 
 
 616 
 4_ 
 
 2464 
 2464 
 
 EXAMPLE II. 
 
 Reduce the following draughts* of Bloom Iron to double 
 gross weight. 
 
 lis. 
 
 2240 
 2160 
 2320 
 2000 
 2480 
 
 11)11200 
 1UI8 
 
 3240 )10182 ( 
 8960 
 
 1222 
 90 
 
 24440 
 2240 
 
 2040 
 4_ 
 
 8160 
 6720 
 
 1440 
 
 28 
 
 40420 
 2240 
 
 lt<020 
 17920 
 
 100 
 
 T. Cvit. Qr. lb. 
 4 10 3 18 
 
 • A draught means as much as can be placed on the scale and weighed at one Urna, 
 
184 
 
 BECKER'S BOOK-KEEPING. 
 
 Case 11. To convert Bloom Iron weight to Bar Iron weight 
 Rule. Add to the weight of the former in pounds 10 p'ct. of 
 itself, and divide the sum by 2240. 
 
 EXAMPLE. 
 
 r. 
 
 8 
 
 Cwt. 
 
 1 
 
 Qr. 
 
 Reduce 8 11 (18060 lbs.) Bloom Iron weight io 
 Bar Iron or gross weight. 
 
 3340 
 
 lU. 
 10)18060 
 
 1806 T 
 
 )1986t)( 8 
 17^-20 
 
 1946 
 20 
 
 CtDt. Qr. Ibt. 
 17 1 14 grou we 
 
 38920 
 8240 
 
 J6520 
 156S0 
 
 840 
 4_ 
 
 3:>60 
 2240 
 
 1120 
 M^ 
 
 31360 
 1240 
 
 RMO 
 
/vt-w 
 
 i 
 
 "K*!^: 
 
 1 
 
 NiU-i 
 
 H 
 
 i*^ 
 
 ^^y^oovf\\ 
 
 AUG 1 8 1347 
 
END OF 
 TITLE