(330 THE HOME. FA KM AND BUSINESS CYCLOPEDIA. 



ncj to us, it is a Resource ; if not, it must be a Loss, since all accounts 

 on the Debit side of the Ledger must be either Resources or Losses. If 

 the account be a Resource, we pass it by and do nothing with it ; if a Loss, 

 we balance the account and carry the Loss to the Debit side of Loss fc Gain 

 account. 



19. Credit. On the other hand, when we look at an account in the 

 Ledger, the Credit side of which is the larger, we first decide whether or 

 not it is a Liability. If it be any note or' personal account we owe, it is a 

 Liability; if not, it must be a Gain, since all accounts on the Credit side 

 of the Ledger must be either Liabilities or Gains. If the account be a 

 Liabilit}', we pass it by and do nothing with it; if a Gain, we balance the 

 account and carry the Gain to the Credit side of the Loss & Gain account. 



RESOURCES. 



20. A Resource is anything of value belonging to us, such as : Cash. 

 Merchandise, Store Fixtures, Real Estate, Notes made by other parties 

 payable to us (Bills Receivable), etc., etc., or any personal account owing 

 to us. 



LIABILITIES. 



21. A Liability is any unpaid note made by us payable to other parties 

 (Bills Payable), or any personal account we owe. 



THE AUXILIARY OR AID OF BOOKS. 



22. Auxiliary Books are used to classify business transactions ; they 

 are also used as an aid to the principal books. 



23. THE BLOTTER. The Blotter is a book used merely as a memoran- 

 dum book. Many persons improperly call the Day Book (or Journal) a 

 Blotter. Business men wishing only one person's handwriting in the 

 principal books, keep a book which they use when this person is absent 

 from his post of duty, in which to make a memorandum of the transac- 

 tions that occur during his absence, and when he returns they will be 

 copied into the proper books. 



24. THE INVOICE BOOK. The Invoice Book is a book in which to file 

 invoices or bills of goods we buy. It may have a single money column at 

 the right margin of the page, in which to carry out the amount of each 

 bill as it is pasted in the book ; posting may be done directly from this 

 book to the Ledger, each bill credited to the account to which it belongs, 

 the total of the money column carried forward till the end of the month, 

 and then posted to the Debit of the Merchandise account in one entry. How- 



