THE FOUNDATION 



UPON WHICH TO BUILD YOUR KNOWLEDGE OF BOOK-KEEPING, 



THE COKNEK STONE, 



In one aide of the Corner Stone we will have cut in large letters the solitary motto 

 SYSTEM ; in the other side we will have cut our Coat of Arms, interwoven in which 

 will be found " Multum inparvo." This we call 



DOUBLE ENTRY BOOKKEEPING "IN A NUTSHELL." 



29. DEBIT WHAT WE RECEIVE. 

 31. If we receive Cash, debit Cash. 

 33. " " Mdse., " Mdse. [able. 

 35. " " Note, " Bills Receiv- 



37. Whenever we Debit an item, it 

 is always either to increase our Re- 

 sources or our Losses, or to decrease the 

 personal accounts or notes we owe (Lia- 

 bilities). 



30. CREDIT WHAT WE GIVE. 

 32. If we give Cash, credit Cash. 

 34. " " Mdse., " Mdse. [able. 

 36. " " Note, " Bills Pay- 



38. Whenever we Credit an item, it 

 is always either to increase our Liabili- 

 ties or our Gains, or to decrease the 

 personal accounts or notes owing to us 

 (Resources). 



THE JOURNAL. 



39. All items in the Miscellaneous 

 Debit column are posted to the 



DEBIT SIDE OF THE LEDGEK. 



4O. All items in the Miscellaneous 

 Credit column are posted to the 

 CREDIT SIDE OF THE LEDGER. 



When we have extra columns in the Journal, we post only the items found in the 

 Miscellaneous Debit and Miscellaneous Credit columns during the month ; and at the 

 end of the month we post the total amounts of the Mdse. Dr. and Mdse. Cr. columns 

 to the Merchandise account. (See par. 12.) 



THE LEDGER. 



41. On the Debit side of the Ledger, 

 we find nothing but 



RESOURCES AND LOSSES. 



42. On the Credit Side of the Ledger, 

 we find nothing but 



LIABILITIES AND GAINS. 



When we first enter into business, and immediately after we have closed the books 

 at the end of the year, there are no open accounts in the Ledger except those which 

 are either Resources or Liabilities. 



