l6o CONSTRUCTION AND MANAGEMENT OF SMALL GASWORKS. 



received for fittings is to credit it to repairs. All pipe and 

 fittings purchased being charged to "Dr.," any fittings sold 

 will go to reduce the amount to be carried to the annual 

 statement. 



It is important to distinguish between the primary 

 records, such as the capital and revenue accounts, Forms I, 

 II, III, and the secondary or auxiliary books, such as the 

 wages, the sales of gas, etc. The manner of dealing with 

 any item depends upon the number of accounts included. 

 For instance, coal, comprising only about half a dozen 

 items in the year, can be easily dealt with in the primary 

 book. But wages, if entered every week, would fill up a 

 lot of space. The same as regards sales of gas and coke. 

 So the introduction of secondary books is entirely a matter 

 of convenience. 



How to Examine a Form of Accounts. 



Accounts tell a great deal, but they do not tell every 

 thing, and sometimes there is a disposition to believe that 

 because the accounts have been audited, everything must 

 necessarily be quite correct and satisfactory. The auditor 

 can satisfy himself that the books are correct according to the 

 vouchers, and that the assets and liabilities are reasonable 

 under the circumstances. But, as a rule, the auditor deals 

 only with the accounts, and does not go into matters such 

 as good or bad buying and selling or incorrect valuing of 

 stocks. If is. per ton too much was paid for coal, or coke 

 was sold at 125. per ton when 153. could have been had for 

 it, or if the quantity of coal or coke in stock is overstated, 

 the audited accounts do not reveal it. So the working 

 1 must be examined in the light of some knowledge of local 

 circumstances, and the stocks must be verified by taking 



