6G6 



THE HOME, FARM AND BUSINESS CYCLOPAEDIA. 



Debit for all merchandise 

 \v- buy and have sent direct to 

 them. 



22o. Debit for all merchandise 

 they buy on account for which we 

 are to pay. 



226. Debit for all cash or other 

 values we give them. 



227. Debit, at the end of the year, 

 for amount reported as the net gain 

 in the business transacted by them 

 during the year. 



22O. Credit for all merchandise 

 they return to us after they have 

 bought it. 



230. Credit for all cash they pay 

 us on account. 



231. Credit for all notes, accept- 

 ances, etc., they turn over to us. 



232. Credit, at the end of the 

 year, for amount reported as the 

 net loss in the business transacted 

 by them during the year. 



OUR ACCOUNTS WITH THEM. 



233. EXPLANATION. The accounts with our Branch Houses are kept 

 on the same, principle as the " Accounts with persons to whom we Sell 

 Goods " (See 164 to 173), consequently are neither more nor less on our 

 books than simply personal accounts. When we close our books at the 

 end of the year, we allow these accounts to stand on the Ledger untouched, 

 calling the accounts Resources. 



234. We debit our Branch Houses whenever we send them any goods 

 from our stock. Some houses charge these goods at their cost, and others 

 charge them at a profit. When we buy goods on account and receive 

 bills therefor, some of which goods were bought for our Branch Houses, 

 we mark on such bills the names of the Branch Houses to which they 

 belong. When we enter our bills, we can adopt either one or the other 

 of two methods, viz. : 1st. (1) To assort the bills, getting those bills to- 

 gether which are for goods for our own stock, and debiting our merchan- 

 dise account for same, crediting each of the parties from whom we buy, 

 then getting those together which are for the different Branch Houses, 

 and debiting the respective Branch Houses for the bills belonging to each 

 and crediting the parties from whom we buy ; or (2) to have a " Merchan- 

 dise " column and a column for each of our Branch Houses, and carry out 

 the amounts in the columns to the debit of the respective accounts to 

 which they belong, crediting [the parties from whom we buy for such 

 amounts the respective Branch Houses accounts and the Merchandise 

 account being debited only at the end of the month for the total purchases 

 for each for the month. The last named is the plan adopted by the larger 

 houses where they have a book ruled with these extra columns, which 



