628 THE HOME, FARM AND BUSINESS CYCLOPAEDIA. 



THE PKLNCIPAL BOOKS. 



12. THE JOURNAL. Business men have abandoned the use of the inter- 

 mediate book called the Journal, and have consolidated it with the Day 

 Book. In the Business College style of book-keeping, merchants enter 

 the business transactions first in the Day-Book and then journalize them 

 by arranging the debits and credits on the Journal, after which they post 

 from the Journal to the Ledger. The business man of to-day can find no 

 use for this unnecessary book, the Journal ; it is therefore cast aside, and 

 the posting is done directly from the Day-Book to the Ledger. The Day 

 Book is used as a detailed record of our business transactions. Having 

 consolidated the two books (Day-Book and Journal), it is essential, in or- 

 der to have the book complete, that it should partake of the style of both ; 

 therefore, when we record a business transaction, we first make the Jour- 

 nal entry, then write the explanations in as few words as possible, either 

 under or on the same line with the entry. This book may be called either 

 a Day Book or a Journal, but custom having made the title " Journal " 

 preferable, it will be used hereafter instead of " Day-Book." 



The Journal should have two extra columns one for " Merchandise 

 Debit," and one for " Merchandise Credit," which renders it unnecessary to 

 post the merchandise oftener than once a month crediting Merchandise 

 account in the Ledger at the end of the month for the total sales on ac- 

 count, as shown by the Merchandise Credit column, and debiting it for the 

 total merchandise purchases on account, as shown by the Merchandise 

 Debit column. (See 342 and 347.) The left-hand column is the Debit 

 and the right-hand column the Credit. 



13. THE CASH BOOK. The Cash Book is a book used as a detailed re- 

 cord of all cash transactions. Upon the left-hand or Debit side, is record- 

 ed all cash received ; and on the right-hand or Credit side, all cash paid 

 out, the difference in the sums total of the two sides showing, at any 

 time, the exact amount of cash on hand. This book should always be used 

 as a book of original entry ; and posting done directly therefrom to the 

 Ledger, as it is wholly unnecessary work and a waste of time to transfer 

 the entries to a Journal before posting. There is no business in which the 

 books can not be correctly kept by posting directly from the Cash B< 



to the Ledger. In making entries in this book, sufficient explanation 

 should accompany the entries to make them plain. Of course, many en- 

 tries require no explanation ; for instance, if a person pays us on account, 

 we simply enter his name and the amount on the debit side of the Cash 



