BRANCH HOI'S I 



book they use exclusively for entering the bills of their purchases. 2mL 

 The second method is to debit our Merchandise account for all the goods 

 we buy, whether for our own stock or for our Branch Houses, crediting 

 the parties from whom we buy ; and then to debit the Branch Houses and 

 credit Merchandise for such goods as were bought for them. This in. -r 

 requires much more work than the first, because we are obliged to copy- 

 on our Sales Books the items on the bills which were sent to the Branch 

 Houses. It is the general custom of the Parent House to assume all the 

 liabilities of the Branch Houses, consequently, to pay all the bills con- 

 tracted by them. 



tJJ{T We credit our Branch Houses whenever we get goods from them 

 with which to replenish our stock on some lines in which we had become 

 short ; and for all the cash they send to us on account ; and for all notes,, 

 acceptances, etc., which they have received from their customers and turn 



r to us. 



516. At the end of the year, when our Branch Houses report the net 

 gain or net loss by each, we debit or credit each of the respective Branch 

 Houses accounts, and debit or credit our Loss & Gain account for the net 

 loss or net gain by each reported. IF A NET GAIN. If a Branch House- 

 reports a net gain in the business, we debit the Branch House account 

 and credit our Loss fc Gain account for such gain, writing on the credit 

 side of the Loss & Gain account, as an explanation, the name of the Branch 

 ise upon which the gain was made. Having made this entry, the dif- 

 ference between the two sides of our account with the Branch House 

 should show the present worth of that house or the amount they owe OS, 

 which amount should just agree with the difference between their total 



nd their total Resources (excluding their account with 

 h \ NET LOSS. If the Branch House reports a net l<ss in the l>u>iness, we 

 lit the Branch House account and debit our Loss \- (lain account for 

 3, writing on the debit side of the Loss &; Gain account, as an - 

 ii, th" name of the Branch House upon which tin- low WAS made, 

 inir made this entry, the difference betwc.-n the two sides of the Branch 

 !iould show tip- present worth of that house, or the amount 



Jit no\v to have m-dited to our account on their Ledger, which 



'iint sin u Id just a.u'ive with the di Hen-nee between their total Liabilities. 



and their total I, 1 ludinir t lieir account with us . If tl;- I'-iMiich 



iCOlint, in addition to the IVr-oiial ftOOOQntfl with 



the i [ouse, t! must too h, ! from ti 



and Li.-ihilir ncluded in the remarks '' their account with u-"here- 



