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7. The Blanks designed to accompany this work are prepared with special reference to its Exercises :

No. 1. Books of ORIGINAL ENTRY,
No. 2. THE LEDGER.

8. The Forms and Explanations Articles 58, 115 inclusive, are designed to make the general scholar more familiar with business transactions, and while they afford him some information and assistance, it is not to be supposed that they will obviate every difficulty, for when necessity requires a more minute examination, he will naturally resort to the experience of professional counsel, while these exercises serve to render further explanation more satisfactory and simple. Although they present subjects quite different from book-keeping proper, yet for practical purposes they have the sameclaim upon the Student, and will, we trust, be quite as eagerly pursued.

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My Resources and Liabilities

, this day,
commencing businrfs, follows:
4 Cash hand..

$800.60
7 Bills Receivable

600.00
3 Merchandise..

750.00
9 John L. Jackson owes me, on acı
count.

340.50
Total Resources..
8
Bills Payable

$ 67.40
9 Wm. Page, I owe him

95.75 Total Liabilitus.

2491 10

163 15

7 Our Present Worth at any time is equal to the difference between the Resources and Liabilities, and it is usually called

Stock

21

2397 95

12

3 Bought Merchandise of Richard Bowen
4 and paid in Cash..

350 75

Art. 1. BOOK-KEEPING is a record of business transac. tions. It considers the capital with which business commences, and exhibits the various changes made upon it, by Losses or Gains, from one period to another. The Outlay in every investment is compared with the Returns, by which we discover our Gain or Loss; and the sum of all the Gains in the several investments is then compared with the sum of all the Losses. If the final difference is Gain, it is added to the Stock with which business commenced, but if Loss, it is subtracted. The result is called Present Worth. (For the definition of any word or phrase see Glossary, p. 164).

2. The Day Book, in this chapter for the convenience of the student, is made to supply the office of the “ Books OF ORIGINAL Entry” (Art. 44), and must therefore be re

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garded as the daily register of Original Entries. The Accountant should experience no delay in recording the first history of every transaction; and this is done by stating clearly every particular in regard to it, as persons, articles, prices, dates, etc.

3. MERCHANDISE Account (pp. 30, 31). On the Debit side we enter the value of goods on hand when business commences, and also the cost of every additional purchase ; and on the Credit side we enter all Returns from the sales of Merchandise. The Gain or Loss is found by crediting the account with the value of goods unsold, and then taking the difference between its Debit and Credit sides. If the Credit side is the greater, there is a Gain, but if less, there is a Loss. In either case the dif. ference is added to the less, which makes the two sides

Articles.

Sold Mdse, and received Cash in pay4 & 3

ment amounting to.

370 20

15

235 60

Sold goods to John L. Jackson and re-
3&7
ceived his note duo in four months.

18
Bought goods of Jas. Kelly and gave my
note due in six months

3 & 8

360 40

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Received Cash of Williams g Co. on a 4 & 7 noto which I held against them when my

opened

accounlo wcze

250 75

equal, and is then carried to the opposite side of Profit AND Loss Account (pp. 44, 45). The goods unsold, which have been credited, must be brought down on the Debit side as Merchandise on hand for the continuation of business. The Account is then said to be Balanced. How is Merchandise Account opened, conducted and closed ? 4. Cash Account (pp. 28, 29).

On the Debit side we enter the amount of Cash on hand, commencing, and every additional receipt of Cash; and on the Credit side all payments of Cash. The Balance is placed in the side of the less and then brought down on the Debit side, as Cash on hand for the continuation of business. How is Cash Account opened, conducted and closed ?

5. Cash, Bills Receivable, Bills Payable, and Personal Accounts are denominated ESTATE ACCOUNTS; all

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others show gain and loss, and are called GAN & Loss ACCOUNTS. What is the basis of this division ? Art. 22.

6. The words “By New Account," in Estate Accounts, is placed before the sum which causes the two sides to balance, when the Debit side is the greater ; but in Gain & Loss Accounts it is only placed before goods unsold. The words " To New Account," in Estate Accounts, when the Debit side is less, is placed before the sum which balances the two, but it is not used in Gain & Loss Accounts. The words - To Old Account” and “By Old Account,” have a corresponding application with reference to the same amounts; that is, To Old Account” corresponds with “By New Account," and “By Old Account” corresponds with “To New Account,” (pp. 30, 31) and (pp. 32, 33) (pp. 34, 35.) What

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