Posting where the old account was; and on the Cr. By a- and Balance-mount, brought from folio ; and place the sums cing the Leger.
When either side of an account is full, both sides should be transported, and diagonal lines drawn, to fill up the vacant space of the side which requires it.
39. The books should be written up as frequently as can be done conveniently; so that the journal may keep pace nearly with the waste-book, and the leger with the journal. Each book should be carefully re- vised, and compared with the book from which it is posted. In comparing the leger, observe the following directions:
Begin with the first journal post, and turn to the fol- io of the leger where the Dr. is entered, which you are directed to by the marginal reference, and compare the date, entry, and sum. If you find them to correspond, it is well; if not, the leger must be altered till it cor- respond with the journal. Then place a dot before the reference-figure in the journal, and a mark X before the sum in the leger.
Proceed in the same manner to compare the Cr. of the journal post, and all the following posts in their or- der. The dots in the journal show how far the compa- rison is advanced, and the marks in the leger show what articles are compared.
The sums of accounts transported should be left blank till the books be compared; as an error in any article will occasion an alteration in the sum.
40. Some accountants correct all errors in the le- ger, without erasing anything, by the following meth- ods: 1st, If the sum be entered too small, they make a second entry for the deficiency. 2d, If it be entered too large, they make an entry on the opposite side for the excess. 3d, If it be entered on the wrong side of the account, they enter it twice on the other; once, to counterbalance the error, and a second time for the true entry. 4th, If it be entered on a wrong account, they charge the wrong account Dr. to, or Cr. by, the right one.
41. We do not much approve of these methods, as they give the books a confused appearance; and would rather recommend the following rules: 1st, If an ar- ticle be omitted, do not attempt to interline at the place where it should have been; but insert it under the last article when you discover the omission, and make a cross X against it on the margin, and another at the place where it should have been. 2d, If you dis- cover a mistake immediately when committed, correct it, without cancelling anything, as in this example. To Cash, say, To James Spiers received to account. 3d, If you have written a line entirely wrong, or in a wrong place, write the word Error at the end, prefix a cross, and omit or cancel the sum. 4th, Cancel errors, by drawing a line lightly through them, so that the old writing may still be legible; by which it will be evi- dent, that the book has not been vitiated for a fraudu- lent purpose. The same method should be followed in correcting errors in the journal.
42. When the comparison of the books is finished, glance over the leger, to observe if the mark of com- parison be affixed to every article. If not, you must turn to the journal, and observe if the articles be right which had been marked.
43. Because the whole sum of the Dr. side of the leger should be equal to the whole sum of the Cr. § 14. Posting it is proper to try if they correspond. For this pur- pose, you may add the Dr. of every account, except such as are already balanced, placing the sums in an inner column, and extending them at the end of one or more folios, as you find most convenient, to the outer column; and as you go along add the Cr. in the same manner. If the sum total of both sides be equal, it gives a presumption that the books are right; if they differ, there is certainly some mistake. This is called the Trial-balance. The labour bestowed upon it is not lost, as the sums may be reserved for assisting us to col- lect the balances: the method of which will be explain- ed afterwards.
44. If the sums of the trial balance do not corre- spond, the books must be examined again. For this purpose, begin with the first article on the Dr. side of the first account, and turn to the account where the corresponding entry is, which you will find by the fi- gure in the reference-column. If the articles agree, mark them with a dot. Proceed in like manner with the other articles on the Dr. of the first account; then with the articles on the Cr. of the same; and then with the following accounts in their order, till the error or errors be discovered. In complex entries, observe if the amount of the sums on one side be equal to the sum on the other. When you come to a dotted article, you may pass it by, because it has been examined al- ready.
If the errors be not discovered at the first revisal, you must repeat the same operation again, till you bring the books to balance. Marks different from the former ones, or differently placed, may be used, to sig- nify that an article has been examined a second or third time. As the detection of errors is the most tedious and disagreeable part of book-keeping, the accountant will be induced to guard against them with all possible care, when he has once experienced the trouble which they occasion.
45. Before we explain the method of balancing the books, it will be proper to direct the learner how to balance particular accounts. When we settle accounts with any person, and ascertain how much is owing at either hand, it is necessary to balance his account in the leger, and open a new one, beginning with the sum that was due according to the settlement; and when we clear accounts again, we must go back to that article, and no farther.
If any articles be charged on either side, at the time of settling, they must be immediately entered on the waste-book; from which they will pass in course to the journal and leger; and a remark must be entered in the waste-book, that the account was settled, and the balance transferred to the proper side of the new ac- count. This remark is transcribed in the journal; and the leger account is balanced, when it occurs, in the course of posting.
If the balance be due to you, write on the Cr. By balance due to him to Dr. new account, and insert the sum due you; after which, the amount of both sides will be equal. Add the account, placing the sums op- posite to each other; and, if the sides be unequal, draw a diagonal line through the vacant space of the shorter side, and close the old account by drawing lines under the sums. Then open the new account imme- diately. Posting and Balancing the Ledger.
46. Sometimes when an account is balanced, one or more articles are left out on purpose: For example, goods lately bought on credit may be left out, and the settlement may only relate to articles of longer standing. When this is the case, if the articles omitted be on the Dr. of the ledger, we write on the Cr. thus, By articles sold him since 1st January replaced: and when we have balanced the account, and opened a new one, we write on the Dr. To articles replaced at settling, furnished since 1st January: or, if the articles were left out for any other reason, we explain the same in the narration. If the omitted articles be on the Cr., the like entries are made on the opposite sides. It should be noticed in the waste-book and journal when this operation is necessary.
47. When we post any common article from the journal, we enter the sum on the Dr. of one account, and on the Cr. of another: when we balance an account, we place the balance sum on the Dr. of the old account, and on the Cr. of the new one, or contrarywise: and when we replace an article, as above directed, to the Dr. or C. of the old account, we place it after balancing to the Cr. or Dr. of the new one. Thus, in these entries, as well as in common posts, there are like sums entered on the Dr. and Cr. of the ledger, and the general equality of the sides is still preserved.
48. Merchants generally balance their books once a-year. The design of this operation is, to collect the various branches of their business, diffused through the books, into a concise abstract; to ascertain their gain or loss since the last balance; and exhibit the present state of their funds. If the business be of such a kind, that most of the branches naturally come to an issue at a certain time of year, that time is the proper one for making the balance. Otherwise the end of the year, or the least busy time, may be chosen.
49. It is proper, before balancing, to settle as many personal accounts as possible; to clear all arrears and small charges; to take an exact inventory of the goods on hand, as far as can be done; and affix a moderate value to each article, according to the current prices at the time; such a value as you would be willing at present to buy for. It is more proper to value the goods on hand in conformity to the current prices, than at prime cost; for the design of affixing any value is to point out the gain or loss, and the gain is in reality obtained so soon as the prices rise, or the loss suffered so soon as they fall; therefore it is impossible to make up a just state of the affairs, unless the present prices be attended to.
50. These things being done, proceed to make the balance as follows: Prepare two sheets of paper, ruled with money-columns, in the form of Dr. and Cr.; write Profit and Loss as the title of the first, and Balance as the title of the second.
Prepare also some paper for computing the balances, and mark down the folios, titles, and sums of each account in the ledger, in a regular order. If a trial-balance was made, the sums may be transcribed from it. Pass by such accounts as are already closed; also the accounts of Stock and Profit and Loss, which are always the last of being balanced. Then subtract the lesser sum from the greater, and enter the difference on either of the sheets that the nature of the article points out, and on the side of that sheet which corresponds to the greater sum of the account. More particularly,
In personal accounts, enter the difference, which is the debt owing to you, or by you, on the proper side of the balance-sheet.
In the cash account, enter the difference, which is the money in hand, on the Dr. side of the balance-sheet.
In accounts of goods or other property, if there be nothing remaining on hand, enter the difference, which is the gain or loss, on the proper side of the profit and loss sheet.
If the whole be still on hand, enter the present value on the Dr. of the balance-sheet; and if this be different from the prime cost, charges included, enter the difference in the proper side of the profit and loss sheet.
If part be sold, and part on hand, place the value of the quantity on hand under the sum of the Cr. and add them. The sum is the whole return that will be obtained, if the rest of the goods be sold at the estimated value; and this, being compared with the sum of the Dr. which is the whole expense, shows the gain or loss. Enter the same in the proper side of the profit and loss sheet, and enter the quantity and value on hand on the Dr. of the balance-sheet.
Observe if the quantities in the inner columns be equal on both sides, when the goods are all sold; or, if the difference, when only part is sold, be equal to the quantity on hand. If they correspond, you have a just account of the goods. If the Dr. be greater, there is something amissuing, which you must enter on the Dr. of the balance-sheet, and mark the cause of the deficiency, as intake, waste, or the like. If the Cr. be greater, there is an excess, which you must enter on the Cr. of the balance-sheet, together with the occasion of it, as difference of measure, or the like.
In accounts subsidiary to profit and loss, enter the difference on the proper side of the profit and loss sheet.
When there is nothing written on one side of an account, enter the sum of the article or articles on that sheet which the kind of the account points out.
51. When you have collected all the balances, sum up both sheets, and add to the profit and loss sheet the sums of the profit and loss account in the ledger; then subtract the lesser sum of each sheet from the greater.
This being done, mark the sums of the stock-account on your computation paper, and add thereto the balance of the profit and loss sheet on the side which corresponds with the greater sum of that account; then subtract the lesser sum from the greater. The remainder will be equal to the difference of the sides of the balance-sheet, if the books be right, and the balances exactly collected.
52. We shall prove that this equality must always hold,
The Dr. of the balance-sheet contains every kind of property belonging to you, and every debt owing to you; and the Cr. contains every debt owing by you: therefore the difference of the sides shows what your nett estate amounts to. The profit and loss sheets, when the articles from the leger are included, contain everything you have gained on the Cr. and everything you have lost on the Dr.; and the difference of the sides is your nett gain or loss. The stock-account contained your effects and debts at the time the books were opened; and therefore, when the gain or loss is added to the proper side, it must show the extent of your nett estate at present. Thus the stock-account and the balance-sheet both point out how much you are worth at present; the one from your former stock, allowance being made for your gains or losses; the other from a view of your present effects and debts; and they will correspond, because both must be agreeable to the truth, if the books be correct.
53. Though the books must balance, if free from error, yet it is sometimes difficult to adjust them exactly, especially when the business is extensive, and the errors trifling. If there be still a difference, which we do not think it worth while to make further search for, we may close the books, by making Profit and Loss Dr. or Cr. for the same. This introduces an article on one side of the leger, which has none corresponding to it on the other, but is balanced by some undiscovered error.
54. The balance being struck, your next work is to close the books. Every article in the leger should be posted from the journal; therefore, the most regular way of finishing both is by inserting the following articles in the journal, and posting them in the common manner to the leger.
1st, Profit and Loss Dr. to Sundries, for loss, on the following accounts. The particulars are taken from the Dr. of the Profit and Loss sheet.
2d, Sundries Dr. to Profit and Loss, for gain, on the following accounts. The particulars are taken from the Cr. of the Profit and Loss sheet.
3d, Balance-account Dr. to Sundries, for debts and property belonging to me.
4th, Sundries Dr. to balance-account, for debts due by me. The particulars of this and the former are taken from the respective sides of the balance-sheet.
5th, Profit and Loss Dr. to Stock for nett gain; or Stock Dr. to Profit and Loss, for nett loss.
6th, Balance-account Dr. to Stock for nett stock.
55. When the four first of these articles are posted in the leger, all the personal, real, and subsidiary accounts will balance, and you may add them as you go along. In accounts of goods, if there be any deficiency, you must enter it on the Cr. in the inner column; and, if there be any outcome, you must enter it on the Dr. before you add the account. Then the sums of every account and every column on the opposite side will be equal.
The only accounts that remain open are, Profit and Loss, Stock and Balance. The fifth post balances the profit and loss account, and the sixth balances the stock-account. It was noticed, § 14, that the whole sums of Dr. and Cr. of the leger are equal; and therefore, if the sides of every account, except one, be balanced, that one will balance of its own accord. The balance account alone remains open, and, upon trial, you will find that the sides are equal. This affords an additional proof, or, at least, a different view of what was demonstrated, with respect to the balance of the books, in § 52.
The lines above and under the sums, at a general balance, may be drawn with red ink; and, at the balancing of particular accounts, with black ink, for distinction.
56. Some choose to insert the particulars of the profit and loss and balance sheets in the respective accounts of the leger. If this be done, it is unnecessary to enumerate them also in the journal.—Some choose to balance the accounts of goods, whenever the quantity is sold off; and we approve of this method, as it lessens the work at the general balance, which is always sufficiently laborious.
57. Thus is the state of a person's affairs brought together, in a short compass, under his view; and the articles of the balance-sheet supply materials for a new inventory. It is convenient, however, to alter the order, and arrange the real accounts together, and the personal ones together.
58. It is not necessary to begin new books, nor open the accounts anew, unless the old folios be full. The accounts may be continued in the former folios; but it is best to begin a new leger, if the old one be not likely to hold all the business of the next year. When one comes to have several sets of books, it is common to distinguish them by the letters of the alphabet. The first waste-book, journal, and leger, are marked A; the second B; and so on.
In the following specimen, the waste-book and journal are placed on opposite pages, that the learner may easily compare them; and the rules are referred to by their numbers. ### WASTE-BOOK
**Edinburgh, January 1, 1789**
**INVENTORY of ready money, goods, and debts, belonging to James Oswald merchant in Edinburgh.**
| Description | Amount | |----------------------------------------------------------------------------|--------| | Ready money | L.75 10 | | 200 bolls meal, at 13s L.130 | | | 6 hds Port-wine, at 15l 90 | | | 70 reams paper, at 10s 6d 36 15 | | | 120 sp. five-hank yarn, at 18 3d | 13 10 | | A house in Lawn-market Edin., value | 300 | | James Boswell merch. Edin. owes per account | L.73 4 | | Thomas Price writer Edin. owes per do. | 12 3 8 | | Henry Hardy merch. Glasgow gow per bill | 75 | | David Miller manufacturer Haddington, per receipt | 18 |
Total: § 29 178 7 8
### LIST of debts by the said James Oswald.
| Description | Amount | |----------------------------------------------------------------------------|--------| | To the Royal bank per account | L.230 | | To Tho. Smith merchant London per do. | 54 | | To Will. Nisbet carpenter Leith per do. | 28 7 3 |
Total: § 29 312 7 3
### Bought for ready money 105 yards calicoe, at 3s 2d
Rule III.
### Sold to James Cuthbert merchant Leith, 50 bolls meal, at 13s 3d
Rule I.
### Bartered 60 spindles five-hank yarn, at 2s 4d for 80 yards diaper, at 1s 9d
Rule III.
### Paid William Nisbet in full
Rule I.
### Bought from Will. Bruce merchant Leith, 200 bushels salt, at 1s 8d
L.16 13 4
300 stone iron, at 3s 4d
53 6 8
Rule II.
### Sold 30 rms paper to Ja. Boswell, at 12s L.18
12 to John Henderson stationer Edinburgh, at 12s
5 for ready money, at 1s 2 15
47 Rule I. III.
### Sold Will. Hunter merchant Dunbar, 150 bush. salt, at 1s 9d L.13 2 6
Received in part
And he owes the balance
Rules I. III.
### JOURNAL
**Edinburgh, January 1, 1789**
**Sundries Dr. to Stock for articles belonging to James Oswald merchant Edinburgh.**
| Description | Amount | |----------------------------------------------------------------------------|--------| | Cash on hand | L.75 10 | | Meal. For 200 bolls at 13s L.130 | | | Port-wine. For 6hds at 15l 90 | | | Paper. For 70 rms. at 10s 6d 36 15 | | | Yarn. For 120 sp. five-hank, at 23 3d | 13 10 | | House in Lawn-market Edin., value | 300 | | J. Boswell merch. Ed. per ac. L.73 4 | | | Tho. Pirie writer Ed. per do. 12 3 8 | | | Hen. Hardie merchant Glasgow gow per bill | 75 | | David Miller manufacturer Haddington, per receipt | 18 |
Total: § 29 178 7 8
### Stock Dr. to Sundries.
| Description | Amount | |----------------------------------------------------------------------------|--------| | To Royal Bank per account | L.230 | | To Tho. Smith merch. London per ac. | 54 | | To Will. Nisbet carpenter Leith per do. | 28 7 3 |
Total: § 29 312 7 3
### Calicoe Dr. to Cash. Bought 100 yards, at 3s 2d
16 12 6
### James Cuthbert merchant Leith, Dr. to Meal, sold 50 bolls, at 13s 3d
33 2 6
### Diaper Dr. to Yarn. Delivered 60 sp. five-hank, in barter of 80 yards, at 1s 9d
7
### William Nisbet Dr. to Cash. Paid him in full
28 7 3
### Sundries Dr. to William Bruce merchant Leith.
Salt. For 200 bushels, at 1s 8d
Iron. For 320 stones, at 3s 4d
### Sundries Drs. to Paper.
James Boswell for 30 rms, at 12s L.18
John Henderson stationer Edinburgh, for 12 12s 7 4
Cash, For 5 11s 2 15
47
### Sundries Drs. to Salt, for 152 bsh. at 1s 9d L.13 2 6
Cash. Received in part
William Hunter merchant Dunbar, for balance due by him
3 2 6
131 2 6
Edinburgh ### WASTE-BOOK
**Edinburgh, January 22, 1789**
Received from Henry Hardy in payment of his bill L.75 And for interest on do. 2 10
Rules II. VII.
Paid the Royal Bank Rule I.
Bought from Alex. Sharp, merch. Dundee 500 sp. four-hank yarn, at 13 11d L.47 18 4 Paid him in part L.15 And the balance due him is 32 18 4
Rules II. III.
Received 150 bolls meal, at 13s 2d L.98 : 15s, in barter for 6 hds. Port wine, at 16l. L.96 Paid the balance 2 15
Rule III.
**Edinburgh, 2d February 1789**
Sold James Boswell 48 bush. salt, being the rem. at 18 8½d L.4 2 60 sp. five-hank yarn, at 2s 3½d 6 17 6 100 stone iron, at 3s 4½d 16 17 6
Rule I.
Received from James Cuthbert in part Rule II.
Bartered 22 reams paper, at 12s L.13 4 30 bolls meal, at 13s 6d 20 5
For 334½ sp. four-hank yarn, at 2s L.33 9
Rule III.
Taken for the use of my shop the remaining ream paper, value
Rule VI.
Received from William Hunter in full L.3 2 6 from James Boswell in part 70
Rule II.
Paid the Royal Bank Rule I.
Bartered 100 yards calicoes, at 3s 6d L.17 : 10 For one hd. Port wine L.14 10 Received the balance 3
Rule III.
### JOURNAL
**Edinburgh, January 22, 1789**
Cash Dr. to Sundries. To Henry Hardy, Rec. paym. of his bill L.75 To Profit and Loss, Rec. interest on do. 2 10
Rules II. VII.
Royal Bank Dr. to Cash. Paid them
Yarn Dr. to Sundries, for 500 spindles four-hank, at 18 11d L.47 18 4 To Cash. Paid in part L.15 To Alex. Sharp, merch. Dundee for bal. 23 18 4
Rules II. III.
Meal Dr. to Sund. for 150 bolls, at 13s 2d L.98 : 15s To Port-wine. For 6 hds. delivered in barter, L.16. L.96 To Cash. Paid balance 2 15
**Edinburgh, 2d February 1789**
James Boswell Dr. to Sundries. To Salt, for 48 bush. being the rem. at 18 8½d L.4 2 To Turn, for 60 sp. five-hank, at 2s 3½d 6 17 6 To Iron, for 100 stones, at 3s 4½d 16 17 6
Cash Dr. to James Cuthbert. Received in part
Yarn Dr. to Sundries. For 334½ sp. four-hank yarn, at 2s. L.33 : 9s To Paper. For 22 reams delivered in barter, at 12s L.13 4 To Meal. For 30 bolls, at 13s 6d 20 5
Charges Merchandise Dr. to Paper taken for the use of shop, 1 ream, value
Cash Dr. to Sundries. To William Hunter. Received in full L.2 2 6 To James Boswell. in part 70
Royal Bank Dr. to Cash. Paid them
Sundries Drs to Calicoes. For 100 yards delivered in barter at 3s 6d L.17 : 10s Port-wine. For 1 hd. L.14 10 Cash. Received balance 3
Edinburgh ### WASTE-BOOK
**Edinburgh, 19th February, 1789.**
| Sold 30 bolls meal for ready money, at 13s 8d | L. 20 10 | |---------------------------------------------|-----------| | 45 to Henry Hardy, 13s 10d | 31 2 6 | | 24 to William Hunter, at 13s 10d 18 13 | | | 52 to Baillie and Bell, Borrowstownness, at 13s 10d | 35 19 5 |
154 Rules I. III.
Drawn on the Royal Bank
Rule II.
Paid William Bruce in part L. 50 Alexander Sharp in full 32 18 4 And Tho. Smith's bill on me at sight 35
Rule I.
**Edinburgh, 2d March, 1789.**
Paid Charges and cellar-rent of salt L. 1 2 6 Charges and loft-rent of meal 3 3
Rule IV.
Received from Thomas Pirie in full L. 12 Discounted him 3 8
Rule II. VI.
Sold James Dalton, Manchester 60 spindles four-hank yarn, at 2s 4d L. 6 1 3 300 do do at 1s 11½d 29 13 9
360 Rule I.
Received from Jan. Jookheer Rotterdam, 6 bags clover seed, qt. 200 lb. each, amount per invoice f. 212, at 22d per f. L. 28 12 Paid freight and charges 1 5
Rules II. IV.
Bartered with James Boswell 2 bags clover-seed, at 6l. L. 12 for 2 hds. lints. at 55s Received in money 5 And he owes the balance 1 10
Rule III. I.
Paid Tho. Smith in full L. 19 And for interest 1 10
Rule I. IV.
Sold 140 lb. clover-seed to John Scott farmer at Haugh-head, 7½d 70 to James Cuthbert at 7½d 120 for ready money, at 7½d
330 Rules I. II.
### JOURNAL
**Edinburgh, 19th February, 1789.**
Sundries Drs to Meal.
1 Cash. For 30 bolls, at 3s 8d L. 20 10 2 Henry Hardy. For 45 13s 10d 31 2 6 3 William Hunter. For 27 13s 10d 18 13 6 4 Baillie and Bell, Borrowstownness. For 52 13s 10d 35 19 5
154
Cash Dr. to Royal Bank. Drawn on them
Sundries Drs. to Cash.
William Bruce. Paid him in part L. 50 Alex. Sharp. Paid him in full 32 18 4 Tho. Smith. Paid his bill on me at sight 35
Sundries Drs. to Cash.
Salt. Received in full L. 1 2 6 Meal. Paid charges and loft-rent 3 3
Sundries Drs. to Thomas Pirie.
Cash. Received in full L. 12 Profit and Loss. Discounted him 3 8
James Dalton, Manchester, Dr. to Yarn.
For 60 sp. four-hank, at 2s 4d L. 6 1 3 And 300 do. at 1s 11½d 29 13 9
Clover-seed, Drs. to Sundries.
To Jan Jookheer, for 6 bags, qt. 200 lb. each, is 1200 lb. amount per invoice, f. 312, at 22d L. 28 12 To Cash. Paid freight and charges 1 5
Sundries Drs. to Clover-seed. For 2 bags, at 6l. L. 12
Lint-seed, for 2 hds. recd. in bart. 55s Cash. In part 5 James Boswell, for balance 1 10
Sundries Drs. to Cash.
Thomas Smith. Paid him in full L. 19 Profit and Loss. Paid him interest 1 10
Sundries Drs. to Clover-seed.
John Scott, farmer at Haugh-head, for 140 lb. at 7½d L. 4 7 6 James Cuthbert, for 70 7½d 2 3 9 Cash for 120 7½d 3 12 6
330 ### Waste-Book
**Edinburgh, 24th March, 1789.**
| Description | Amount | |---------------------------------------------------------------------------|--------| | James Boswell has paid the Royal Bank on my acct. | | | Rule VIII. | | | Bought from William Ainslie merchant Alloa 3/4 share of the ship Hazard, for | | | Rule II. | | | Sold Baillie and Bell, | | | 150 stone Iron, at 3s 7d | L.26 17 6 | | 1 hd. Port-wine | 15 5 | | Rule I. | |
**Edinburgh, 2d April, 1789.**
| Description | Amount | |---------------------------------------------------------------------------|--------| | Sold for ready money | | | 50 yards diaper, at 1s 11d | L.4 15 10 | | 30 bolls meal, at 1s 7d | 20 7 6 | | 1 hd. lint-seed | 3 3 | | 160 lb. clover-seed, at 7½d | 5 3 4 | | 30 stone iron, at 3s 6½d | 5 6 3 | | Rule III. | | | Drawn on the Royal Bank for | | | Rule II. | | | Bought for ready money | | | 30 casks train oil, at 22s | L.33 | | 30 bolls meal, at 1s 7d | L.19 10 | | 40 do. | 26 6 8 | | Rule III. | | | Sold Will. Ainslie 30 yds. diaper, at 2s | L.3 | | And paid him | | | Rule I. | | | Baillie and Bell have paid Will. Ainslie, at my desire, balance of my share of the ship Hazard | | | Rule VIII. | | | Sold James Boswell 20 casks train-oil, at 27s | | | Rule I. | | | Sold George Gordon merch. Stirling | | | 10 casks train-oil, at 28s | L.14 | | 1 hd. lint-seed | 3 5 | | 35 bolls meal, at 1s 8d | 23 18 4 | | Received in part | L.41 3 4 | | and he owes the balance | 6 3 4 | | Rule I. II. | | | Paid Baillie & Bell's bill on me to C. Cowan, at sight | | | Rule I. | |
### Journal
**Edinburgh, 24th March, 1789.**
| Description | Amount | |---------------------------------------------------------------------------|--------| | Royal Bank Dr. to James Boswell. Paid by him | | | Share of the ship Hazard Dr. to William Ainslie merchant Alloa, bought 3/4 share for | | | Baillie and Bell Drs. to Sundries. | | | To Iron. For 150 stone, at 3s 7d | L.26 17 6 | | To Port-wine. For 1 hd. | 15 5 | | Cash Dr. to Sundries. | | | To Diaper. For 50 yards, at 1s 11d | L.4 15 10 | | To Meal. For 30 bolls, at 1s 7d | 20 7 6 | | To Lint-seed. For 1 hd. | 3 3 | | To Clover-seed. For 160 lb. at 7½d | 5 3 4 | | To Iron. For 30 stone, at 3s 6½d | 5 6 3 | | Cash Dr to Royal Bank. Drawn on them for | | | Sundries Drs. to Cash. | | | Train-oil. For 30 casks, at 22s | L.33 | | Meal. For 30 bolls, at 1s 7d | L.19 10 | | And 40 at 1s 2d | 26 6 8 | | William Ainslie Dr. to Sundries. | | | To Diaper. For 30 yards, at 2s | L.3 | | To Cash. Paid him | 30 | | William Ainslie Dr. to Baillie and Bell. Paid him by them on my account, being balance of share of ship Hazard | | | James Boswell Dr to Train-oil. Sold him 20 Casks at 27s | | | George Gordon Dr. to Sundries. | | | To Train-oil. For 10 casks, 28s | L.14 | | To Lint seed. For 1 hd. | 3 5 | | To Meal. For 35 bolls at 1s 8d | 23 18 4 | | Cash Dr to George Gordon. Received in part | | | Baillie and Bell Dr. to Cash. Paid their bill on me to C. Cowan, at sight | |
**Edinburgh,** ### Waste-Book
**Edinburgh, 18th April, 1789.**
| Description | Amount | |---------------------------------------------------------------------------|--------| | Taken for the use of my family, the remaining five yards calicoe, at 3s 2d | -15 10 | | Rule VI. | | | The Royal Bank have paid Jan. Jonkheer's bill on me, 1 mdt. at my desire | -28 12 | | Rule VIII. | | | Received my proportion of profits on a voyage to Rotterdam by the Hazard | -33 | | Rule V. | | | Paid for small charges on my business since January | L. 5 3 8 | | Personal and family expenses | -32 | | Rule VI. | | | Due Thomas Sharp, my clerk, for wages | -8 | | Rule VI. | | | Due to the Royal Bank for interest | -2 11 2 | | Rule VI. | | | Previous to the balancing of my books, I have taken an inventory of the | | | goods in my shop and warehouse | | | 124 bolls meal, at 13s 6d. | L.83 14 | | 474 sp. four-bank yarn, at 2s | 47 8 | | 40 stone iron, at 3s 4d. | 6 13 4 | | 300 lb. clover-seed, at 6d | 7 10 | | I value my house at | L.145 5 4 | | And my share of ship Hazard | 140 | | | L. 585 5 4 |
### Journal
**Edinburgh, 18th April, 1789.**
| Description | Amount | |---------------------------------------------------------------------------|--------| | Proper expences Dr. to Calicoes. For 5 yards taken for family use, at 3s 2d | -15 10 | | Jan. Jonkheer Dr. to Royal Bank. For his bill on me 1 mdt. paid by them | -28 12 | | Cash Dr. to share of ship Hazard. Received my proportion of profits on a | -33 | | voyage to Rotterdam | | | Sundries Drs. to Cash. | | | Charges Merchandise. Paid small charges since Jan. 1. | L. 5 3 8 | | Proper Exp. Paid pers. and family charges | -32 | | Charges of Merchandise Dr. to Thomas Sharp, my clerk. Due him for wages | -8 | | Profit and Loss Dr. to Royal Bank. Due them for int. | -2 11 2 | | Profit and Loss Dr. to Sundries, for articles of loss. | | | To Salt | L. 11 4 | | To Charges Merchandise | 13 14 2 | | To Proper Expences | 32 15 10 | | See § 54 | | | Sundries Drs. to Profit and Loss, for articles of gain. | | | Meal | L. 0 18 | | Port-wine | 6 15 | | Paper | 4 18 6 | | Yarn | 2 3 2 | | Calicoes | 1 13 4 | | Diaper | -15 10 | | Iron | 2 7 11 | | Clover-seed | 5 | | Lintseed | -18 | | Share of Ship Hazard | 23 | | Train oil | 8 | | Bal. Account Dr. to Sun. for articles belonging to me. | | | To Cash | L. 8 3 10 | | To Meal. For 124 bolls, at 13s 6d | 83 14 | | To Yarn. For 474 sp. at 2s | 47 0 | | A missing ½ spindle. | | | To house in Lawnmarket | 300 | | To James Boswell | 37 11 | | To Henry Hardy | 31 2 6 | | To David Miller | 18 | | To James Cuthbert | 5 6 3 | | To Iron. For 40 stone at 3s 4d | 6 13 4 | | To John Henderson | 7 4 | | To William Hunter | 18 13 6 | | To James Dalton | 35 15 | | To Clover-seed. For 300 lb. at 6d. | 7 10 | | Inlake 10 lb. | | | To John Scott | 4 7 6 | | To share of ship Hazard | 140 | | To George Gordon | 6 3 4 |
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This page contains entries from a bookkeeping ledger, detailing transactions such as payments, receipts, and inventory management. The entries are categorized under "Waste-Book" and "Journal," with specific dates and amounts recorded for each transaction. ### BOOK-KEEPING.
#### JOURNAL.
**Edinburgh, 30th April 1789.**
| Description | Amount | |--------------------------------------------------|--------| | Sundries Drs. to Balance-account. | | | Meal, Outcome 3 bolls | | | Royal Bank | £201 | | William Bruce | 20 | | Thomas Sharp | 8 | | Profit and Loss Dr. to Stock, for nett gain | 1613 | | Stock Dr. to Balance-account, for nett stock | 528 |
The next JOURNAL would begin thus:
| Description | Amount | |--------------------------------------------------|--------| | Sundries Drs. to Stock. | | | Cash on hand | £8 | | Meal. For 124 bolls, at 13s L.83 | | | Yarn. For 474 sp. 4 hank, at 2s 47 | | | Iron. For 40 stone, at 3s 4d | | | Clover-seed. For 300lb. at 6d | | | House in Lawn-market Edinburgh, value | £300 | | Share in Ship Hazard. For one-third | 140 | | James Boswell Edinburgh. | | | Due by him | £37 | | Henry Hardy Glasgow. | Do. | | David Miller Haddington. | Do. | | James Cuthbert Leith. | Do. | | John Henderson Edinburgh. | Do. | | William Hunter Dunbar. | Do. | | James Dalton Manchester. | Do. | | John Scott Haughhead. | Do. | | George Gordon Stirling. | Do. |
| Description | Amount | |--------------------------------------------------|--------| | Stock Dr. to Sundries. | | | To Royal Bank. Due them | £201 | | To William Bruce, Leith. Due him | 20 | | Thomas Sharp, my clerk. Do. | 8 |
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**VOL IV. Part I.** ### Dr. 1789
#### Stock - Jan. 1 To Sundries, per J. - Apr. 3c To Balance-account for nett stock
#### Profit and Loss - Mar. 4 To Thomas Pirie, discounted him - Apr. 17 To Cash, paid Tho. Smith interest - 30 To Royal Bank, for interest due them - To Sundries, per J. - To stock, for nett gain
#### Cash - Jan. 1 To Stock on hand - 15 To Paper, for 5 reams, at 1s. - 19 To Salt, in part, per J. - 22 To Sundries, for Hen. Hardy's bill, with int. - Feb. 3 To James Cuthbert, in part - 16 To Sundries, per J. - 19 To Calicoes, for bal. of 100 yards, per J. - To Meal, for 30 bolls, at 1s 8d - To Royal Bank, drawn on them - Mar. 4 To Thomas Pirie, in full - 17 To Clover-seed, in part, for 2 bags - 21 To Clover-seed, 120 lb. at 7½d - Apr. 2 To Sundries, per J. - 6 To Royal Bank, drawn on them - 14 To George Gordon, in part - 25 To Share of ship Hazard, for share profits, p. J.
#### Meal - Jan. 1 To Stock on hand, at 1s - 30 To Sundries, per J. at 1s 2d - Mar. 2 To Cash, paid charges and lost-rent - Apr. 6 To Cash, per J. - 30 To profit and loss, for gain
#### Port wine - Jan. 2 To Stock on hand, at L. 15 - Feb. 19 To Calicoes, in barter - Apr. 30 To Profit and Loss, for gain
### Contra
#### Cr. - Jan. 1 By Sundries, per J. - Apr. 30 By Profit and Loss, for nett gain
#### Cr. - Jan. 22 By Cash, received int. on Hen. Hardy's bill - Apr. 30 By Sundries, per J.
#### Cr. - Jan. 3 By Calicoes, for 106 yards, at 3s 2d - 10 By William Nisbet, in full - 22 By Royal Bank, paid them - 26 By Yarn, in part, for 500 sp. four hank - 30 By Meal, paid balance of 150 bolls - Feb. 16 By Royal Bank, paid them - 21 By Sundries, per J. - Mar. 2 By Sundries, per J. - 12 By Clover-seed, paid freight and charges - 17 By Sundries paid Tho. Smith, with int. per J. - 6 By Sundries, per J. - By William Ainslie, paid him - 16 By Baillie and Bell, paid their bill on me st. - 30 By Sundries, for charges and expenses per J. - By Balance account
#### Cr. - Jan. 3 By James Cuthbert, at 1s 3d - Feb. 10 By Yarn, in barter, at 1s 6d - 19 By Sundries, per J. - 2 By Cash, at 1s 7d - 14 By George Gordon, at 1s 8d - 30 By Balance account at 1s 4d
#### Hds. - Jan. 10 By Meal, in barter, at L. 16 - Mar. 18 By Baillie and Bell ### Paper
| Description | R. | |--------------------------------------------------|------| | To Stock on hand, at 10s 6d | 36 5 | | To Profit and Loss, for gain | 4 18 |
### Yarn
| Description | Spindles. | |--------------------------------------------------|-----------| | To Stock on hand, at 2s 3d | 4 H 5 H | | To Sundries, per J. at 1s 11d | 120 | | To Sundries, per J. at 2s | 500 | | To Sundries, per J. | 33 9 | | To Profit and Loss, for gain | 100 |
### House in Lawnmarket
| Description | R. | |--------------------------------------------------|------| | To Stock, for value | 300 |
### James Boswell merchant Edinburgh
| Description | R. | |--------------------------------------------------|------| | To Stock due by him, per account | 73 4 | | To Paper, for 30 reams, at 12s | 18 | | To Sundries, per J. | 27 | | To Clover-seed, for bal. of 2 bags, per J. | 10 | | To Train-oil, for 20 casks, at 27s | 27 |
### Thomas Price writer Edinburgh
| Description | R. | |--------------------------------------------------|------| | To Stock due by him per account | 12 |
### Henry Hardy merchant Glasgow
| Description | R. | |--------------------------------------------------|------| | To Stock due by him per bill | 75 | | To Meal, for 45 bolls, at 13s 10d | 31 |
### David Miller manufacturer Haddington
| Description | R. | |--------------------------------------------------|------| | To Stock due by him per receipt | 18 |
### Royal Bank of Scotland
| Description | R. | |--------------------------------------------------|------| | To Cash, paid them | 100 | | To Cash, paid them | 100 | | To Cash, paid them | 20 | | To Balance-account | 201 |
### Contra
| Description | Cr. | |--------------------------------------------------|------| | By Sundries per J. | 47 | | By Yarn in barter, at 12s | 22 | | By Charges Merchandise, for shop use | 14 | | By Diaper at 2s 4d | 60 | | By James Boswell, at 2s 3½d | 60 | | By James Dalton, per J. | 36 | | By Balance-account, at 2s | 47 | | By Cash in part | 70 | | By Royal Bank, paid in by him | 40 | | By Balance-account | 37 | | By Sundries in full, with discount, per J. | 12 | | By Cash in full | 75 | | By Balance-account | 31 | | By Balance-account | 18 | | By Cash, drawn on them | 123 | | By Stock, due them per account | 120 | | By Cash, drawn on them | 66 | | By J. Jonkheer, for his bill paid them, p. J. | 28 | | By Profit and Loss, for interest due them | 21 | ### Thos. Smith merchant London
- **Feb. 23**: To Cash, paid his bill on me at sight - **Apr. 17**: To Cash, in full
### William Nisbet carpenter Leith
- **Jan. 10**: To Cash, paid him in full
### Calicoes
| Date | Description | Yds. | |------|--------------------------------------------------|------| | Jan. | To Cash, at 3s 2d | 105 | | Apr. | To Profit and Loss, for gain | 105 |
### Ja. Cathbert merchant Leith
| Date | Description | Yds. | |------|--------------------------------------------------|------| | Jan. | To Meal, for 50 bolls at 1s 3d | 3 | | Mar. | To Clover-seed, for 70lb. at 7½d | 3 |
### Diaper
| Date | Description | Yds. | |------|--------------------------------------------------|------| | Jan. | To Yarn in barter, at 1s 9d | 5 | | Apr. | To Profit and Loss, for gain | 5 |
### Salt
| Date | Description | Bush. | |------|--------------------------------------------------|-------| | Jan. | To William Bruce, at 1s 8½d | 13 | | Mar. | To Cash, paid charges and cellar rent | 2 |
### William Bruce merchant Leith
- **Feb. 23**: To Cash in part - **Apr. 30**: To Balance-account
### Iran
| Date | Description | Stones. | |------|--------------------------------------------------|---------| | Jan. | To William Bruce, at 3s 4d | 13 | | Apr. | To Profit and Loss, for gain | 30 |
### Contra
| Date | Description | Cr. | |------|--------------------------------------------------|-----| | Jan. | By Stock, due him per account | 54 | | Feb. | By Sundries, per J. at 3s 6½d | 100 | | Apr. | By proper Expences taken at 3s 2d | 55 | | Feb. | By cash in part | 30 | | Apr. | By balance account | 5 | | Apr. | By Cash at 1s 11½d | 50 | | Apr. | By William Ainslie, at 2½d | 30 | | Jan. | By Sundries, per J. at 1s 9½d | 150 | | Feb. | By J. Boswell, for the rem. at 1s 8½d | 48 | | Apr. | By Profit and Loss | 2 | | Jan. | By Sundries, per J. | 70 | | Feb. | By James Boswell, at 4s 4½d | 100 | | Mar. | By Baillie and Bell, at 3s 7½d | 150 | | Apr. | By Cash, at 3s 6½d | 30 | | Apr. | By Balance-account, at 3s 4d | 40 | ### BOOK-KEEPING
#### Jo. Henderson stationer Edinburgh,
| Date | Description | Amount | |------|-------------|--------| | Apr. | To Paper, for 12 reams, at 12s | 74 | | Feb. | To Salt, for balance of 150 bushels, per J. | 326 | | Apr. | To Meal, for 27 bolls, at 13s 10d | 18136 | | Jan. | To Cash, in full | 32184 |
#### William Hunter merchant Dunbar,
| Date | Description | Amount | |------|-------------|--------| | Apr. | By Balance-account | 74 | | Feb. | By Cash in full | 326 | | Apr. | By Balance-account | 18136 |
#### Alex. Sharp merchant Dundee,
| Date | Description | Amount | |------|-------------|--------| | Jan. | By Yarn, for balance of 300 spindles, per J. | 32184 | | Apr. | By Profit and Loss | 13142 |
#### Charges Merchandise,
| Date | Description | Amount | |------|-------------|--------| | Apr. | To Paper taken for shop-use, 1 ream | 106 | | Apr. | To Cash, for small charges since 1st Jan. | 58 | | Apr. | To Tho. Sharp, for wages | 13142 |
#### Baillie and Bell Borrowstowness,
| Date | Description | Amount | |------|-------------|--------| | Apr. | By William Ainslie, paid him by them | 5117 |
#### James Dalton Manchester,
| Date | Description | Amount | |------|-------------|--------| | Apr. | By Balance-account | 3515 |
#### Clover-seed,
| Date | Description | Amount | |------|-------------|--------| | Mar. | By Sundries, per J. | 400 | | Apr. | By Sundries, per J. | 330 | | Apr. | By Cash, at 7½d | 162 | | Apr. | By Balance-account, at 6d | 300 |
#### J. Jonkheer merchants Rotterdam,
| Date | Description | Amount | |------|-------------|--------| | Mar. | By Clover-seed, for 6 bags, per J. | 2812 |
#### Lint-seed,
| Date | Description | Amount | |------|-------------|--------| | Apr. | By Cash | 1133 | | Apr. | By George Gordon | 1535 |
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**Note:** The amounts are given in various currencies (e.g., shillings, pence) and denominations (e.g., reams, bolls). | Date | Description | Dr. | Cr. | |------|-----------------------------------------------------------------------------|-----|-----| | Mar. 21 | John Scott farmer at Haughhead, To Clover-seed, for 140 lb. at 7½d | | | | Apr. 30 | By Balance-account | | | | Mar. 25 | Share of ship Hazard, To William Ainslie, bought ½ share for | | | | Apr. 30 | To Profit and Loss | | | | Apr. 6 | William Ainslie merchant Alloa, To Sundries, per J. | | | | Apr. 10 | To Baillie and Bell, for bal. paid him for them | | | | Apr. 6 | Train oil, To Cash, at 22s | | | | Apr. 30 | To Profit and Loss, for gain | | | | Apr. 14 | George Gordon merchant Stirling, To Sundries, per J. | | | | Apr. 18 | Proper expenses, To Calicoes, for 5 yards, at 3½ 2d | | | | Apr. 30 | To Cash, for charges since 1st January | | | | Apr. 30 | Thomas Sharp, my clerk, To Balance account | | | | Apr. 30 | Balance account | | | | Apr. 30 | To Sundries, per J. | | | | Apr. 30 | By Balance-account | | | | Apr. 11 | By James Boswell, at 27s | | | | Apr. 14 | By George Gordon, at 28s | | | | Apr. 30 | By Cash in part | | | | Apr. 30 | By Balance-account | | | | Apr. 30 | By Profit and Loss | | | | Apr. 30 | By Charges Merchandise, due him for wages | | | | Apr. 30 | By Sundries, per J. | | | | Apr. 30 | By Stock | | | ## TRIAL-BALANCE
| Dr. | Cr. | |----------------------|--------------| | **Stock** | L.824 2 8 | | Profit and Loss | 2 10 | | Cash | 591 12 1 | | **Meal** | L.1418 4 9 | | Port wine | L.203 18 8 | | Paper | 111 5 | | Yarn | 41 13 6 | | House in Edinburgh | 49 12 6 | | James Boswell | 406 9 8 | | Henry Hardie | | | David Miller | | | Royal Bank | | | Calicoes | L.18 5 10 | | James Cuthbert | 30 | | Diaper | 7 15 10 | | Salt | 17 4 6 | | Iron | 73 6 2 | | William Bruce | | | John Henderson | | | William Hunter | | | Charges Merchandise | | | James Dalton | | | Clover-seed | | | Flax-seed | | | John Scott | | | Share of Ship Hazard.| | | Train oil | | | George Gordon | | | Proper Expences | | | Thomas Sharp | |
Total: L.2719 - 1 ## BOOK-KEEPING.
### COMPUTATIONS.
| Dr. | Cr. | |-----|-----| | Cash | L.599 15 11 L.591 12 1 4 Salt | | | L. 8 3 10 | | 2 Meal | L.277 14 8 L.203 18 8 | | Dr' 420 bolls | 83 14 | | Cr. 299 | L. 83 14 | | 121 | L.287 12 8 320 stone | | 124 | 277 14 8 280 | | Profit | L. 9 18 40 | | Port wine | L.104 10 — L.111 5 | | | 104 10 | | Paper | L. 36 15 — L. 41 13 6 | | | 36 15 | | Yarn | L. 94 17 4 L. 49 12 6 | | Spindles | 47 8 | | 834 120 | L. 47 8 | | 360 120 | L. 91 6 300 | | 474 120 | 94 17 4 | | A missing | Profit L. 2 3 2 | | House in Edinburgh | L.300 — — | | 3 Ja. Boswell | L.147 11 — L.110 — | | | 110 — — | | Henry Hardy | L. 27 11 — | | David Miller | L. 31 2 6 | | Royal Bank | L. 18 — — | | | L.240 — — L.441 3 2 | | | 240 — — | | | L.201 3 2 7 Train-oil | | 4 Calicoes | L. 16 12 6 L. 18 5 10 | | | 16 12 6 | | J. Cuthbert | L. 35 6 3 | | | 30 — — | | Diaper | L. 5 6 3 | | | L. 7 — — L. 7 15 10 | | | 7 — — | | Profit | L. — 15 10 |
| Dr. | Cr. | |-----|-----| | 5 William Bruce | L. 50 — — L. 70 — — | | | 50 — — | | Iron | L. 53 6 8 L. 49 1 3 | | | 6 13 4 | | | L. 6 13 4 | | | L. 55 14 7 | | | 53 6 8 | | J. Henderson | L. 7 4 — | | W. Hunter | L. 18 13 6 | | Char. Merchan. | L. 13 14 2 loss | | 6 Ja. Dalton | L. 35 15 — | | Clover-seed | L. 25 17 — L. 27 7 1 | | | 7 10 — | | | L. 7 10 — | | | L. 34 17 — | | | 29 17 — | | Profit | L. 5 — 1 | | Lint-seed | L. 5 10 — L. 6 8 — | | | 5 10 — | | J. Scott | L. 4 7 6 | | Share Hazard | L.150 — — 33 — | | | 140 — — | | | L.140 — — | | | L.173 — — | | | 150 — — | | Profit | L. 23 — — | | L. 33 — — L. 41 — — | | | 33 — — | | George Gordon | L. 41 3 4 L. 35 — — | | | 35 — — | | Proper Ex. | L. 6 3 4 | | Thomas Sharp | L. 32 15 10 loss | | STOCK Balance | L.312 7 3 L.824 2 8 | | | 528 9 1 prof.16 13 8 | | | L.840 16 4 L.840 16 4 |
**PROFIT** ## PROFIT AND LOSS SHEET
| Item | Amount | |-----------------------|--------| | Salt | £11 4s | | Charges Merchandise | £13 14s 2d | | Proper Expences | £32 15s 10d | | **In Leger** | £47 1s 4d | | | £4 4s 10d | | | £51 6s 3d | | Meal | £9 18s | | Port-wine | £6 15s | | Paper | £4 18s 6d | | Yarn | £2 3s 2d | | Calicoes | £1 13s 4d | | Diaper | £15 10s | | Iron | £2 7s 11d | | Clover-seed | £5 1s | | Lint-seed | £18 | | Share of ship Hazard | £23 | | Train oil | £8 | | **Nett gain** | £16 13s 8d | | **In Leger** | £65 9s 10d | | | £2 10s | | | £67 19s 10d |
## BALANCE-SHEET
| Item | Amount | |-------------------------------|--------| | Cash | £8 3s 10d | | Meal, 124 lb. at 13s 4d | £83 14s | | Yarn, 474 sp. at 2s | £47 8s | | Amissing ½ | £300 | | House in Edinburgh | £37 11s | | James Boswell | £31 2s 6d | | David Miller | £18 | | J. Cuthbert | £5 6s 3d | | Iron, 40 stone, at 3s 4d | £6 13s 4d | | J. Henderson | £7 4s | | W. Hunter | £18 13s 6d | | James Dalton | £35 15s | | Clover-seed, 300 lb. at 6d | £7 10s | | Inlake 10 lb. | £4 7s 6d | | J. Scott | £140 | | Share of ship Hazard | £6 3s 4d | | George Gordon | £757 12s 3d | | **Meal, outcome 3 b.** | £201 3s 2d | | **Royal Bank** | £20 | | **William Bruce** | £8 | | **Thomas Sharp** | £229 3s 2d | | **STOCK** | £528 9s 1d | | **Total** | £757 12s 3d | The present article, it is hoped, will appear sufficiently extended for a work of this nature. It contains the general principles of Italian book-keeping; and is sufficient to unfold the nature and design of that art to the speculative inquirer, to direct the accountant in common and easy cases, and prepare him for understanding those that are more complicated. In fact, if he has a clear apprehension of the sense of the transactions, the tendency of the journal entries, and the import of the balances in the leger, he will seldom be at a loss how to proceed.
Subsidiary Books used by Merchants.
Though all merchants' accounts may be kept by the Waste-book, Journal, and Leger, alone; yet men of great business find it convenient, either for abridging these, or for other ends, to use some others, generally called Subsidiary or Subservient Books; the most common of which are the nine following, viz:
1. Cash-Book. This book is kept in a folio form, like the leger, and serves to abridge the cash-account there. On the left-hand page, or Dr. side, Cash is charged Dr. for all the sums received; and on the right-hand page Cash is made creditor for all the sums paid. Once a week, or, which is more ordinary, once a month, this book is posted to the leger; or, if you please, first to the journal, by two entries, viz. Cash Dr. to Sundries, for all the receipts, and Sundries, Drs. to Cash, for all the payments. By this means the cash account in the leger will be so far contracted as to consist of 12 lines, viz. one for each month in the year.
2. Book of Charges of Merchandice. This book is only paged, and designed to abbreviate the cash-book. It contains particular charges on goods and voyages; such as carriage, custom, freight, crangage, wharriage, &c.; as also other expenses that affect trade in general; such as, warehouse-rent, shop-rent, accountant's wages, postage of letters, and the like. At the end of each month the money-columns of this book are added up, and the sum carried to the credit-side of the cash-book.
3. Book of House-expence. This book is also paged, and designed likewise to ease the cash-book. It contains all disbursements for family provisions, servants wages, house-rent, apparel, utensils, &c. The money-columns of this book are also added up at the end of each month, and the sum transferred to the credit side of the cash-book.
4. Invoice-book. This book, which is used chiefly by factors, is paged, and contains doubles or copies of the invoices of goods sent to sea, or of goods received from abroad.
5. Sales-book. This book too is chiefly used by factors; and into it are posted, from the waste-book, the particular sales of every consigned cargo; by which means the several articles of a sale, that lie scattered in the waste-book, are brought together, and represented under one view, and that in a manner more full and minute than they are collected in the leger account. This book exhibits the sales of every consignment separately and by themselves: to which are subjoined the respective charges, such as freight, custom, the factor's commission, as also abatements allowed to buyers, &c., whose sum subtracted from the gross amount of sales gives the neat proceeds. From this book, when a car-
go is sold off, an account of sales is drawn out, in order to be transmitted to the employer.
6. Bill-book. The design of this Bill-book, or Month-book, is to furnish a merchant with a ready way of knowing the time when bills or other debts become payable to or by him. It consists of 12 folios, one for each month in the year. The left-hand page contains the debts that fall due to the merchant in the month on the top; and the right-hand page contains the debts payable by him to others in the same month.
7. Receipt-book. In this book a merchant takes receipts of the payments he makes. The receipt should contain the date; the sum received, expressed in words at large, and also in figures in the money-columns; the reason why; and whether in full or in part; and must be signed by the person receiving. But there is no occasion to mention the merchant's name; for the book being his own, sufficiently implies that.
8. Letter-book. It is very imprudent in any person to send away a letter of business, without keeping a double of it to himself; and therefore to prevent the bad consequence of such a careless practice, merchants are provided with a large book in folio, into which is copied verbatim every letter of business before it be sent off. So that this book, together with the letters received (which must also be carefully kept in files or boxes), makes a complete history of all the dealings that pass betwixt a merchant and his correspondents; which may be very useful and necessary on many occasions.
9. Pocket-book. This is a small book, of a portable size, which a merchant carries in his pocket when business calls him abroad to a tavern, a fair, the country, or other places. In this he sets down the bargains he makes, the expences he is at, the debts he pays, or sums he receives, with every other part of business he transacts while abroad; as also any occurrence or piece of news he thinks worth while to record. And when he comes home to his counting house or shop, he transfers the things contained in this book, each to their proper places in the waste-book, or book subsidiary.
Factors of great business sometimes keep another small book called the Memorandum-book. Into this book is copied, from letters as they come to hand, short notes of the several commissions for buying goods contained in them; and as the commissions are effected, the notes are crossed, or have some mark affixed to them. This is more convenient in doing business, than to be continually running to the letters themselves.
The above are the subsidiary books most in use: but a merchant is not tied down or restricted to them; he may keep some, and neglect others, or invent more as the nature of his business requires, and he finds convenient.
New Method of Book-keeping by Mr Jones.
A new method of keeping books, entitled the English System of Book-keeping, has been proposed by Mr Edward Thomas Jones of Bristol, for which a patent was granted in January 1796.
Three books are required in the English System of book-keeping, viz. a Day-book or Journal, an Alphabet, and a leger. The day-book must have three columns on each page; one of which to receive the amount of debits
new Me. debits and credits; one column to receive the debits only; and one column to receive the credits only; or it may be ruled with only two columns on each page, one of which to receive the amount of the debits, and the other to receive the amount of the credits. On each page of the day-book, there must also be four other columns ruled, two on the left side next the amount of the debits, and two on the right side next the amount of the credits. These columns are intended for receiving the letter or mark of posting, and the page of the ledger to which each amount is to be posted. It is not necessary that the alphabet be ruled, but it must contain the name of every account in the ledger, the letter annexed to it as a mark of posting, and the page of the ledger. The ledger is to be ruled with three, four, five, or seven columns on each page, as may be most agreeable, for receiving the amounts of the transactions which are entered in the day-book. The plan of making up books of accounts, according to this system, is the following:
When a person begins trade, either as an individual or in company, he must open an account with himself in the ledger. He must first enter in the day-book, and then to the credit of his account in the ledger, the amount of the property which he has advanced into the trade. His name only may be placed at the head of the account, or it may be called stock-account.
When goods are purchased, give the person credit of whom they are bought; when goods are sold, debit the person to whom they are sold. When you pay money, debit the person to whom it is paid, not only for the amount you pay, but also for any discount or abatement that may be allowed, and give the cashier credit for the neat amount paid. When money is received, credit the person of whom it is received, not only for what he pays, but also for any discount you have allowed, and debit the cashier for the neat sum received. In these entries a plain narrative of the fact should only be introduced. Technical phrases, excepting the terms debit and credit, should be avoided. These are the only terms applicable to every transaction, and may be affixed to every entry.
In the hurry of business, entries may be made to the debit instead of the credit of an account in the day-book, and vice versa. To obviate this evil, Mr Jones proposes to have only one column for receiving the amount of every transaction, whether debit or credit, at the time of making the entry; and that the debits may be conveniently separated from the credits, previous to posting, which is necessary to prevent confusion, he has two other columns in the same page; the column on the left side receives the amount of every debit, and the column on the right side receives the amount of every credit. These columns must be cast up once a month. The column of debits and credits of itself forms one amount; the column of debits forms a second amount; and the column of credits a third amount. The second and third amounts, when added together, it is plain, must agree with the first amount, which includes both the debits and credits, otherwise there must be some error, either in making the entry or in the addition.
In this manner the accountant may obtain an accurate statement of the transactions recorded in his books for every month, which will show how much he owes for that month, and how much is owing to a new Me. him; and by subtracting the amount of the credit from the whole amount of the debits for any given time, with the value of the stock of goods on hand, the profits of the trade for that period will at once appear.
The next part of the operation in this system is that of posting. An account is opened in the ledger with every person to whose debit or credit an entry has been made in the day-book; and to each account a letter is affixed, which is to be used as a mark of posting. The name of the person, his place of abode, and the folio of the ledger, must then be entered in the alphabet, with the same letter prefixed to each name, as is affixed to the account in the ledger. The next step of the process is to affix to each amount in the day-book in the column for that purpose, the page of the ledger on which each account is opened. This will be seen in the alphabet. The date and amount of each debit are then to be posted in the proper columns in the ledger, on the left or debit side of that account to which it relates; taking care to enter as a mark of posting in the day-book, against each amount, the same letter that is affixed to the account in the ledger to which said amount may be posted. The debits of January, February, March, &c., it is to be observed, must be posted into the column for those months in the ledger, and the credits must also be posted in like manner, each account being filled up in the centre, at the expiration of every month, with the whole amount of the month's transactions. Thus may the whole statement of each person's account for the year be included in a small space. The columns to the right and left contain the separate amount of each transaction. The column in the centre exhibits a monthly statement.
Having shewn in what manner the entries are to be made and carried through the different books, according to this system; the next thing is to describe the method of examining them, so as to ascertain with certainty their accuracy; and not only to discover if each transaction has been correctly posted, with regard to its amount, but also that it has been rightly entered to the debit or credit of its proper account. The mode of examination proposed by this system is different from those which have been hitherto practised, both in expedition and accuracy. All that is necessary is to add together the different sums in the debit and credit columns, through the ledger; and the amount of these columns, if right, must agree with the columns in the day-book for the same period. This examination should take place once every month; and if the amounts do not agree, the posting must be called over, and when the time allotted to each column of the ledger, whether it be for one or more months, has expired, the amount of each column should be put at the bottom of the first page, and carried forward to the bottom of the next, and so on to the end of the accounts. The amount in the day-book for each month's transactions, must be brought into one gross amount for the same time.
But this process, although it proves that the ledger contains the whole contents of the day-book, is not to be considered as complete without some mode of ascertaining if each entry be posted to the right account. To discover this the following method is adopted. It is to be admitted as a rule, that a letter, which may be
A new method used alphabetically in any form or shape, is to be affixed to each account in the leger, and the same letter prefixed to the names in the alphabet. These letters are to be used as marks in posting, and affixed to each account in the day-book as it is posted. It is therefore only necessary to compare and see that the letter affixed to each entry in the day-book is the same as that which is prefixed to the same name in the alphabet. If there be no difference, it must be right, otherwise there must be some error.
When the accounts are to be balanced at the end of the year, or at any other time, if the profits of the trade are to be stated in the books, the value of the stock of goods on hand at prime cost, either in one sum, or by specifying the amount of every article, may be entered in the day-book, and an account opened for it in the leger, to the debit of which it is to be posted. The casting up of the leger is then to be completed; and when it is found to agree with the day-book, and the amount placed at the bottom of each column, subtract the credits from the debits, and the difference will show the profit of the trade; but if the credits be the greater amount, then a loss has followed. To avoid error in taking off the balances of the leger, one rule must be observed. First, find out the difference between the whole amounts of the credits and debits on each page for the year, with which the differences of the outstanding balances of the several accounts on each page must exactly agree, otherwise the balances have not been taken right. Proceeding in this way every page will be proved, and the balances of any number of ledgers, according to this plan, cannot be taken off wrong without being observed.