ACCOUNTS, MEMORANDA AND TABLES. 149 



Capital account. Before any business can be done, the 

 necessary land, buildings, plant, office, etc., must be pro- 

 vided, and for that purpose capital must be raised. The 

 first section is, theref* re, the capital account. As the 

 money must be received before it can be expended, the 

 account first shows that ,3,750 has been paid in by share- 

 holders, and 1,000 by debenture holders, making a total 

 of .4,750. This sum has been received by the directors 

 on behalf of the company, and the next thing is to show 

 how it has been expended. The accounts for former years 

 show that .3,950 was expended previous to the current 

 year; we now learn that 568 has been spent during the 

 year, leaving a balance of 232 in hand, and used as 

 working or floating capital. 



It is the exception rather than the rule, in a small works, 

 to find that a detailed account of the capital expenditure 

 has been kept. But I would enlarge on the advantage of 

 keeping a record, such as Form I (p. 166). For this and most 

 other purposes, paper specially ruled in the form shown can 

 be obtained from any manufacturing stationer. Loose sheets 

 may be used, if the scale of operations is such that one 

 page is sufficient for the year's operations, these being pre- 

 served in a suitable portfolio or case, or, if preferred, they 

 may be bound in one or more books. Loose sheets are 

 the more convenient for handling and reference. Any 

 number of cash columns, from five upwards, may be had. 

 The form given contains fifteen, which I have found to 

 be a convenient number for the purpose. Form I. is not 

 ruled off each year, but is always open. The expenditure 

 each year is added as shown, and the total (15) will 

 give the amount expended up to date. 



With regard to expenditure generally, the greater portion 

 is represented by statements rendered periodically, say 



