EXPENSE. 



659 



KXPENSE. 



189. Debit for everything we 

 buv to use ourselves and not sell 

 again, as postage stamps, stationery, 

 fuel, etc. 



190. Debit for all cash we pay 

 out and receive an equivalent in 

 something we cannot sell again, as 

 clerk hire, freight and express 

 charges, insurance, rent, drayage, 

 etc., etc. 



191. Credit for everything we 

 sell for which we debit. ,1 Expense 

 when the article was bought. 



. ]>'<i''tions for closing the Expense account at the end of the 

 year : 



1st. Write on the credit side, in red ink, " By Inventory " for value 

 of the saleable articles we have on hand, for which we debited Expense 

 those articles were bought. 



. Find the difference between the two sides of this account, and 

 write on the credit side, in red ink, " By Loss & Gain" for that difference, 

 which will make the account balance. 



Rule the closing lines and write the total amounts between the 

 lines. 



4th. Bring down on the debit side, below the closing lines, in black 

 ink, "To Inventory " the value of salable articles on hand, as found in 

 " 1st," for beginning of the new year. 



5th. Write on the debit side of Loss & Gain account, "To Exp 

 mount of loss on this account, as found in " 2nd " above. 



19JJ. Ex PLAN ATIOX. In reading over rules 189 and 190, it will at 



-oen that no business can be conducted without an expense; it will 



that the Expense account is the "foe in the field " against 



which the i.uMnos man has to contend. All transactions which result in 



98 to u^ may In- ran: the Expense account, or tin- account may 



I.e divided into as many account- as W6 wfeh to keep to represent the 



a>ioned in our l.usin 



191. A- i 1 ifl a : <f gratification t >s man to ha 



more explicit and comprehensive iUI !' the eXpeDMfl at the en 1 of 



ir, it bec essary for him to his expenses i n _, r 



