MKRrllAMHSE. 



2nd. Now find the difference between the two sides of this account 

 (Inventory included), and the amount the credit side exceeds the debit 

 will be the gain on M<L*<\ ; after which, write on the debit side of this ac- 

 count, in red ink, "To L ain," for amount gained, which will n,\\ 

 make the account balance. 



3rd. Rule the closing lines, and write the total amounts between the 



4th. Write on the debit side of this account, below the cl 

 black ink, " To Inventory," and bring down the amount of Mdse. now on 

 hand for the beginning of the new year. 



5th. Carry amount gained on Mdse. over to the Loss & Gain account, 

 writing on the credit side of that account, in black ink, " By Mdse.," for 

 the amount gained. 



This concludes the closing of the Mdse. account. Now go back to the 

 article " The End of the Year," and see what next to do. (See 289 and 

 290.) 



?. Kxi-i.AXATiON. The object of crediting this account at the end of 

 the year " By Inventory," is simply to find how much we have gained on 

 til.- merchandise sold during the year; for, after we have balanced the 

 Mdse. account, we bring down on the debit side of this account the amount 

 of the inventory for the commencement of the new year. Consequently, 

 having credited this account "By Inventory," and debited it "To Inven- 

 tory," for the same amount, the balance of the Ledger is not in the lea-t 

 affected ; and in transferring the gain on merchandise which was found on 

 tin- <-ivdit side of the M Ua account, to the same side (credit) of the "Loss 



tin account," the balance of the Ledger is not in the least affected in 

 the entire closing of the Mdse. account. We debit Mdse. for what it < 



ind credit it for what we sell it for; hence, when we take an account 

 of stock (find the value of the merchandise we have on hand) at the end 

 of th and value it at what it would cost to lay it in the house at 



the tim.- the Inventory is taken, we add the amount sold during the year 



lit side of Merchandise account) to this amount on hand, and we find 

 thejuimunt the credit sid is the del.it must be the amount for which 



we have sold the merchandise mi. iv than it cost us, or the m tgain 



Mij.le: If we buy 100 barrels of llour at s per barrel, we i 

 Meivhandi-e for SN)'>. During the year we sell (<> barrels at sioper 

 band credit Merchainli.se tor Slino. At the end ,.f t! Wt take 



an inventory or account <>(' Btook, and find that we have iO barrels on 

 hand, which we mu-t value at what it w..uld cost if we had to bin 



