<36S THE HOME, FARM AXD BUSINESS CYCLOPEDIA, 



110W THEIR BOOKS ARE KEPT. 



237. Our Branch Houses each keep a full set of books in the same 

 manner as we keep our books, and precisely the same as books are kept 

 in any business, treating our account on their Ledger the same as they 

 would any other accounts with persons from whom they bought goods on 

 -account, with the following two exceptions, viz. : 1st (1), instead of credit- 

 ing parties from whom they buy goods on account, they turn the bills 

 over to us to pay, debiting their Merchandise account for the same and 

 crediting their account with us : or (2) they can debit their Merchandise 

 account and credit the parties ; afterward, when they turn over the bills 

 to us to pay, charge the parties and credit us, which amounts to the same 

 but makes more work. It is not necessary for the Branch Houses to sub- 

 mit the bills to the Parent House, but simply to make an itemized state- 

 ment of the debts contracted with the different persons, and from this 

 statement the Parent House can charge the Branch House and credit the 

 different parties. 



238. When the Branch Houses are first opened, they open their books 

 in the same way that books are opened in any store or business, excepting 

 that they credit the Parent House for the net investment ; and at the end 

 of the year the proceedings for closing the books are the same as in any 

 other business finally debiting or crediting the Parent House for the net 

 loss or the net gain in the business. 



239. Either of two methods may be adopted by the Branch Houses in 

 keeping the accounts with the Parent House, viz. : 1st. To each open 

 two accounts with the Parent House a Stock account and a Personal 

 account debiting or crediting the Stock account at the end of the \ 

 for the net loss or the net gain, as the case may be ; and treating the 

 Personal account as described in 236. 2nd. To keep only one account 

 with the Parent House, namely, a Personal account, entering all trans- 

 actions with the Parent House during the year into that account, and at 

 the end of the year debiting or crediting that account for the net los 

 the net gain. If a Stock account is opened with the Parent House \vhrii 

 the Branch first commences business, there can be no entry to this ac- 

 count, for everything belongs to the Parent House, and must necessarily 

 be credited to the Personal account of that House, and not to its S 

 .account ; but at the end of the year the net loss or net gain may be can-it- 1 

 to the Stock account, and that would be the only item that would appear 

 on that account ; therefore, it is deemed the better method to keep only 

 .a Personal account with the Parent House. 



