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one amount, as Cash, we say " To” or “By Cash,” but when there are more than one, then the phrase “ By” and “To Sundries" is used. Explain the phraseology of the Journal and Ledger (p. 19) (pp. 30, 31). What is said of “Sundries” and its compounds ?

17. If I accept another man's draft, I promise to pay; but if he accepts my draft on him, he promises to pay me.

Drafts therefore are a species of Bills Payable and Bills Receivable (p. 102). What of Drafts?

18. When we buy up other men's notes and acceptances, we are said to discount them; and we may not only discount other men's notes, but our own, if we have any in circulation. When we have notes discounted for us we receive an equivalent, and dispose of the note. Discounting a Bill, therefore, is paying the money for it,

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3 Bought Merchandise amounting....
7 Gave

, in payment, Wm. Pagé's note
12 Allowed discount
4 Paid the balance in Cash..

24
9 Sold Wm. Page,
3 6 yds. French Broad Cloth at.5.00 $30.00
Cassimere

27.00
71 French Doe Skin at.2.50 17.50

27
3 Paid Cash for Merchandise as follows:
4 4 Kigs 400 lbs. Tobacco at. .14 $ 56
300 lbs. Lşaf Sugar
6 Fikins Butter 600 Ibis, at.. 16 96
1000 lbs. Cheese

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90 Milse. per Inventory .

.1,500 Noto-The first entry under Feb. 8th should have been made under fanuary 31st

p. 16) (Art. 27.)

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but to have it discounted is to receive money for it. By advancing money on notes before they become due, we can often obtain them for considerable less than their true value, and this is called " shaving the notes," a business quite extensively carried on in large cities. What does discounting notes signify, and what to have them discounted for us?

19. The Student is now required to examine all the entries upon the Journal, beginning with the first; and to tell promptly, by each, the nature of the original transaction: thus the first entry after the business commences (January 12th) is read, “ Merchandise, To Cash. Here it is evident that Merchandise has been purchased for Cash, or Cash has been paid for Merchandise. For, according to Merchandise Acct. (Art. 3), Merchandise is

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debited for the cost of every additional purchase, &c., and in Cash Account we are told to credit all payments of Cash, &c.” In the next entry, it is evident that Cash has been received for the sale of Merchandise, for, &c. (Art. 3, 4.) In the next, it is evident that we have received other men's notes for the sale of Merchandise ; for, &c. (Art. 7, 3, 16.) ( 3

What is the learner required to do with the entries upon the Journal ?

20. ProFIT AND Loss Account (pp. 46, 47). On the Debit side are collected together the various Losses which we have sustained during the period of business; and on the Credit side the several Gains which we have realized during the same time (Art. 22). The Balance shows a net Gain or Loss in the whole business, and is carried to the opposite side of Stock Account (Art. 1). The Ac

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count exhibits the Sources of our Gain or Loss, whether
upon Merchandise, Interest, Charges, Real Estate, etc.;
and serves as an Index, through the successive periods of
business, to point out the investments by which we have
Gained, and also those by which we have Lost. How
is this Account opened, conducted and closed ? Its uses ?
What of (Art.1, 22.) What appears to be the object of
Balancing ? (Art. 40).

21. Stock Account (pp. 44, 45). On the Debit side
we enter all sums which are withdrawn during the pe-
riod of business, and on the Credit side the Capital with
which business commences. This is balanced To New
Account, which is our new capital for the continuation
of business (Art. 1, 9, 43,) what of Stock Account?

22. We have now seen that in ESTATE ACCOUNTS

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(Art. 5) the balances are brought down below the paral-
lels for the continuation of business; and in Gain & Loss
Accounts, the goods unsold are brought down for the
continuation of business, but the BALANCES are carried
to the opposite side of Profit and Loss Account. What
of the balances ? (pp. 28, 29,) (pp. 32, 33,) (pp. 30, 31,)
(pp. 42, 43,) (Art. 4, 3.)

23. BALANCE SHEET, (p. 47.) On the Debit side we
enter our Resources, which are collected from EstatE
Accounts, and also from (goods unsold in) GAIN & Loss
Accounts; and on the Credit side we enter our Liabili.
ties. The balance shows our PRESENT WORTH. What
of the BALANCE SHEET? By what two methods does it
determine our Present Worth? (Art. 1, 20, 23.)
24. The student should now begin with the original

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