47. ACCOUNT SALES. The consignor always wishes a detailed account of the Sales effected by his agent. A statement thus furnished by the consignee is called Account Sales. The Ledger refers to the original entries from which the particulars are gathered. Account Sales of 45 hhd. Sugar, shipped per Cromwell, by J. Barnum, on account of Co. A. Dec. 18 Sold Charles Nelson on his note at 30 days hd. Gross Tare Net lbs. Sugar 15 24,168 2,900 21,268 at .06 1,276.08 Dec. 23 Sold Augustus Denman on his note 3,945 41 2,024.00 5,064 9,009 41 $294.35 63.37 ..450.47 904 88 8,104 53 23 Labor 68.34 Cooperage 17.32....85.66 Our Commission. Interest on charges to Feb. 22...11.03 Net Proceeds due Feb. 22, 1852... 8. E. (Art. 52.) From Jan. 17 to March 23, -65 days. 3,945 41×65=256451 65; 3,945-41+5,064-9009'41 .. the amount becomes due 28 days previous to March 23. Account Sales of 150 pipes Wine per Manchester, for count of Peyton & Co. Liverpool. Nov. 18 Sold Jonathan Hicks on his note at 30 days 40 pipes 5,040 gal. at 1.95 20 Cash Sales to Saunders & Co. 15 pipes 1,890 gal. at 1.90...... ac. 9,828 3,591 9,828X34 334152; 3591×62=222642 7,938X30=238140; 7949 34÷35267·40=23 the number of days previous to Jan. 21. 48. ACCOUNT CURRENT is a statement, usually in Ledger form, which embraces the original history of all the transactions between two parties or firms, and the Ledger refers to the entries from which it is drawn. J. L. Jackson, Cincinnati. In Account Current with Bronson, Milman & Co. New York. Oct. Dr. Aug. 18 To Merchandise on account- // 12 Nov. 18 Dec. 12 Prints and Muslins "Cash on account. 1,937 84 86 868 32 90 60 9,326 43 737,856—446,194=291,662; 15,553 74—12,816=2,737·74 291,662 2,737=106. The balance therefore falls due 106 days After Jan. 1, it being Apr. 17. Art. 55. 2,737·74÷1·0093=$2,712.42 Cash Balance Feb. 28, at settlement. 49. The Student should now be required to examine the record beginning Jan. 10, p. 12, and closing Sep. 30, p. 69, and tell promptly where the transactions for each month should have been entered in Books of Original Entry, and then enter them accordingly, (Art. 44), (p. 10.) 50. It would be a useful exercise to determine the entries which should be made by every person concerned in each transaction. Let the Student begin the record at p. 12. We might offer farther suggestions in regard to the manner of tracing this subject, but the instructor who regards what has been already said, will naturally add such other forms and exercises as may be thought necessary. 51. EQUATION OF PAYMENTS. Multiply each debt by the number of days from the date when due, to the latest date when any debt becomes due. Divide the sum of the products by the sum of the debts, and the quotient will give the number of days when due, counted back from the latest date. 52. BALANCE OF ACCOUNT SALES. Find the equated time for payment upon the sales (Art. 51); and then increase the charges by the interest upon them up to the equated time. Deduct the Charges thus increased from the Amount of Sales, and the balance will be due at the equated time. Remark. When a credit is allowed on part or all the Day Book Charges, interest upon them is not added. 53. BALANCE OF ACCOUNT CURRENT. Find the sum of the products which arise from multiplying each entry on the Dr. side by the number of days from the date when due to the latest date when any entry becomes due; find in the same manner the sum of the products on the Cr. side. Divide the balance of the products by the balance of the account, and the quotient will give the number of days when the balance is due Before or AFTER the above date: Before that date, when the great er side of the account also gives the greater sum of the products; but on the contrary, After. 54. INTEREST BALANCE. When the equated time for a payment of the balance is already past (Art. 53), the interest up to the present date will be the Interest Balance. 55. CASH BALANCE. At the time of settlement it is usually found that the balance of the account is due at a date already past, or at a future date (Art. 53); in the former case, we find the amount of the balance up to the time of settlement, and in the latter, the present worth; in either case, the result will be the Cash Balance at settlement. 56. SINGLE ENTRY is a partial record of accounts, and is usually limited to the credit transactions of Personal Accounts. If accounts were opened for Cash and Merchandise, then the payments and receipts of Cash on account, and the purchases and Sales of Merchandise on account, would lead immediately to double entry; a Cash Book, however, should always be kept, and also a book for Memorandums. The principles of book-keeping have their origin in the double entry system, and when that is thoroughly understood, no difficulty will be found in conducting a partial record, and the student will be able to determine in regard to the correctness of accounts generally, and the adaptation of a set of books to the nature of the business for which they were designed. In single entry, p. 96, the Debit side of a personal account shows indebtedness to us, and the Credit side indebtedness by us, but the same has already been shown in double entry, p. 36, 37. Our record, beginning with January, p. 12, was not designed for an exercise in Single Entry, yet it will answer our purpose, and the student may be required to examine it, and then distribute its transactions by single entry into the Cash Book, Ledger, and Memorandum Book, according to their nature, these being the original and essential books in Single Entry. This exercise may be pursued as far as July 1. |