(5(30 THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



accounts for the different items of expense ; and whenever an amount is 

 expended which would otherwise be debited to Expense, it is debited 

 instead to the account to which it belongs. For example : If the business 

 man wishes to know how much he expends during the year for clerk-hire, 

 he keeps an account called 4< Salaries," and debits that account, instead of 

 Expense, whenever anything is expended for clerk-hire; or, if he wishes 

 to know how much is expended for freight and express charges, fuel, rent, 

 drayage, insurance, advertising, travelling expenses, etc., etc., he opens an 

 account with each, and whenever amounts are expended which would 

 otherwise be debited to Expense, they are, instead, debited to the respec- 

 tive accounts to which they belong. When we thus divide the account 

 we debit Expense account for all such items of expense as do not come 

 under any of the accounts thus opened. 



195. When we take an inventory at the end of the year we sometimes 

 take an account, or find the value of the unused salable expense articles 

 we have on hand, i. e., articles that were debited to Expense when bought,, 

 such as fuel, postage stamps, etc., we then close the account according to 

 directions on this account. When we do not take an inventory in this 

 way we close the account simply according to " 2nd, 3rd and 5th/' of 1!)2. 



196. All accounts we open in the Ledger, in which to debit articles we 

 buy to consume in the business, i. e., to use ourselves and not sell again, 

 we close at the end of the year in the same manner in which the Fuel 

 account is closed. (See 200.) These articles must, however, be such as 

 would be of value to anyone else, and consequently, salable articles. 



197. All accounts we open in the Ledger, in which to debit amounts, 

 that are at once and in entirety a " dead loss," we close at the end of the 

 year in the same manner in which the Salaries account is closed (see 202), 

 excepting that we write on the Loss &; Gain account the name of the ac- 

 count on which such loss was made. 



FUEL. 



198. Debit for all fuel we buy to 

 consume in our stoves and furnaces. 



199. Credit for all fuel we sell. 



2OO. Directions for doting the Fuel account at the end of the year : 

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



fuel remaining on hand unused. 



2nd. Find the difference between the two sides of this account, and 



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



