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1851. fan. 13 By Cash

15 - Bill Rec. J.L. Jackson - Note 14

21 - Wm. Page Feb. 15 - Cash....

18 19, Sundries Mar. 181 11 11 24 - Wm. Page

22 " New Account for goods unsold

370 20 235 60

65 30 100 225 450

1450 1500




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not inform us where the error had arisen, and, to find it, we should have to fall back upon our first directions, viz.: a comparison of the Original Books with the Ledger. We may here observe, that the Trial Balance (p. 46) exhibits the face of the Ledger before the Accounts are balanced ; and the Balance Sheet (first part), (p. 47,) exhibits the face of the Ledger immediately after the accounts are balanced. What of Accuracy?

27. CORRECTION OF Errors. The cautions previously laid down (Art. 26) will generally serve to avoid mistakes, yet when they do occur, there should be some proper means of correcting them. The method of correcting errors by erasures is very objectionable, since it looks suspicious, and always requires explanation, which, perhaps, is partially forgotten, or cannot otherwise be

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satisfactorily given. The books of Original Entry are usually received as a species of evidence in courts of justice, hence, any thing questionable in them cannot be overlooked (Art. 2). Errors, therefore, in Original En. tries, should be corrected by explanations, with references to and from, entered at the time of detection. Ex. “The

6 entry for interest on the 8th of Feb. should have been made on the 31st of January, since it was paid when the note was taken up” (p. 22).

28. INVENTORY. In the several accounts, there are generally goods on hand, or property unsold at the time of balancing, the present value of which can be found only by a careful examination of the property itself. Every account must be credited with the value of its goods unsold, before it can be closed or balanced. In

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estimating our own property, we are liable to impose upon ourselves, 1. By supposing that the value of the property is, at least, equal to its cost; 2. That it should sell for a certain amount, instead of fixing a sum that we know to be its present exchangeable value. Balancing, therefore, is not an easy task for the Accountant (Art. 26). What is said of Inventory?

29. OPENING New Accounts. This is done by simply writing the name of the account in the Ledger (pp. 28, 29; 32, 33). The book-keeper must always exercise his own judgment in regard to the spaces required for the different accounts; some accounts require much more than others; the amount is determined usually, by the extent of the business. There should be


sufficient to balance the accounts several times under the

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same Ledger titles. The balances in Estate, and the goods on hand in Gain & Loss Accounts, and Stock, being brought down, constitute the first items upon the Ledger after the accounts are balanced, and the several accounts are immediately open for the continuation of business under the old Ledger titles (Art. 23). When our books are full, it is then necessary to balance the accounts as far as practicable, and carry the results to the New Books in such a manner as to exhibit accurately a synopsis of our business affairs. If the accounts are all balanced, let a Balance Sheet be taken, and then the amounts to be carried to the New Books, will be exhibited in the first part of the Balance Sheet (p. 47); they are by some, however, first entered in the Day-Book, thus preserving a trace of the old Ledger in the Day-Book (p.

Jan. 10 By Sundries

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12). What is said of opening New Accounts, and going to New Books ?

30. Final Test. Having balanced all our accounts, and even drawn our Balance Sheet (p. 47), there is still another inquiry: Shall we receive the full amount of indebtedness to us, in Personal Accounts, and are all our Bills Receivable really worth what their face indicates ? If not, it is evident that there is a Loss, and that it must be deducted from what we had considered our Present Worth. Whenever it is practicable, or, at the time of balancing, the accounts should be credited respectively, with the amount of their Losses; and Profit and Loss debited an equal amount. Book-keepers usually open what they call a Suspense Account, which shows, on the Debit side, the several amounts, a payment of which is

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