Lapas attēli


8 & 4

Took up my note held by Jas. Kelly be=
fore opening accounts, amounting to

Feb. 3

9 & 17 Received John L. Jackson's acceptance of 7 our draft on him for


67 40


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4 & 12

4 & 11


Paid Interest on my note given to Jas.
Kelly, (Art. 27) (p. 22)...


Bought two lots on 10th Avenue and paid
$150 for each.


is said of New and Old Accounts, and how are their uses illustrated?

7. BILLS RECEIVABLE ACCOUNT (pp. 32, 33). On the Debit side of this account, we enter the amount of other men's notes in our possession when business commences, and all subsequently received; and on the Credit side the same notes as they are severally disposed of, or pass out of our possession: it is closed like Cash Account. How is Bills Receivable Account opened, conducted and closed?

8. BILLS PAYABLE ACCOUNT (pp. 40, 41). On the Debit side we enter the amount of our own notes when redeemed; and on the Credit side the amount of all which are in circulation when business commences, and all that we subsequently issue. The balance will be Liabilities in our own notes in circulation, and it is

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brought down on the Credit side for the continuation of business. How is Bills Payable Account opened, conducted and closed?

9. PERSONAL ACCOUNTS. These accounts are opened with the names of persons, banks, corporations, stock commencing &c. On the Debit side we enter their indebtedness to us; and the Credit side our indebtedness to them. If the Debit side is greater than the Credit side, they owe us, but if less, we owe them, and the balance is therefore Resources or Liabilities. (pp. 34, 35.)

10. CHARGES ACCOUNT (pp. 42, 43.) On the Debit side of this Account, we enter such charges as cannot be considered as belonging to any particular investment, or such as arise from several transactions collectively; and on the Credit side returns of a similar kind. We should

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3 Bought of Wm. Mason a quantity of goods
amounting to

7 In Payment I gave John L. Jackson's

12 Fallow discount on the Acceptance.

8 Gave my own Note at 4 months for.

4 Paid the balance in Cash.





1 25


76 25

endeavor to arrange all the expenses of each investment or account under the account itself, and we shall then be better able to determine its net gain or loss. How are Personal Accounts, and how is Charges Account opened, conducted and closed?

11. REAL ESTATE ACCOUNT (pp. 38, 39). This is opened, conducted, and closed the same as Merchandise Account. We can have as many such accounts as the nature of our business demands, and whatever the account may be we continue to Debit the Outlay and Credit the Returns.

12. INTEREST ACCOUNT (pp. 42, 43). On the Debit side we enter the amount of interest we pay or allow to others; and on the Credit side all sums received for interest or allowed to us. Balanced like Merchandise Account.

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13. In the Ledger, the Debit and Credit columns are footed up, upon the same horizontal line, and an oblique line is usually drawn to fill up a vacant space in either column. The oblique line, the parallels, and the equal totals indicate that the account has been Balanced (pp. 28, 29).

14. The Student is now prepared to begin with the Day-Book (p. 12), and trace each entry to the Journal on the opposite page, and then to the Ledger, where it is said to be Posted. The Student will observe that, in every entry, there is an equal amount of Debit and Credit matter, as appears both upon the Journal and Ledger; hence the whole Ledger contains as much Debit as it does Credit matter, and the same is true of the Journal. The Student should closely observe the language of the

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18 Discounted my own Note, given to James
Kelly, dated Jan. 18th, 1851, Paid in

4 Cash.

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355 40

5 00

360 40


147 30

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Journal and Ledger, for each has its peculiar phraseology.


This book contains a systematic view of our whole business. The transactions are so collected and arranged, that by referring to any branch of our business, or the name of any person with whom we deal, we can at once see a full statement of each account (pp. 28, 45). What of the Ledger?


16. "TO SUNDRIES." This phrase indicates that there are two or more credit items arising in the same entry, which must be carried to the Ledger under different accounts. "By Sundries," or "Sundries," indicates that there are two or more Debit items in the same entry. One item may balance several others, which, taken together, are equal to the one item. When there is but

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