THE HOME, FARM AND BUSINESS CYCLOPAEDIA. 



the firm allow themselves a salary from which to draw, their names are 

 entered with the employe's and their private accounts treated the same as 

 the accounts with the employe's. The accounts thus formed with our em- 

 ploy s are the same as any personal accounts we owe, unless the employ 

 overdraws his account, and then, of course, " the shoe is on the other foot," 

 being then the same as a personal account owing us. 



FREIGHT AND EXPRESS. 



2O5. Debit for all cash we pay III 2O6. Credit for all cash we re- 

 out for freight and express charges. ||| ceive from Railroad or Express com- 

 panies as rebate or overcharge on 

 freight or express. 



207. CLOSING.- The Freight & Express account is closed the same as 

 the Salaries account. (See 202.) Some firms however, carry the amount 

 lost on freight and express to the Merchandise account, instead of to the 

 Loss & Gain account, at the end of the year, reasoning thus : That the 

 merchandise really costs them the price of the goods plus the freight. This 

 is, in fact the case ; but the usual custom in practice is to carry the Freight 

 & Express account over to Loss & Gain with the other accounts on which 

 we lose or gain. 



208. EXPLANATION. Some Railroad companies allow those business 

 houses who have large quantities of freight shipped over their lines a 

 " rebate," or " drawback." This rebate they usually settle monthly, and 

 when they pay it, we credit Freight > Express account; unless, we open 

 an account with the Railroad company in which to charge such over- 

 charges ; we then, of course, credit the Railroad company's account when 

 they settle for the charges we have against them. These Railroad com- 

 panies have (they say) a certain rate from which they must not deviate ; 

 consequently, all their freight bills must be made (out for the same class) 

 at the same rate per 100 Ibs.; yet they must recognise the excess of pat- 

 ronage in an extensive establishment over a small house in charges for 

 freight, in the same manner as a wholesale merchant does one customer 

 over another, and to do this, the freight company must resort to " rebate.' 



