072 THE HOME, FARM AND BUSINESS CYCLOPAEDIA. 



COMMISSION BUSINESS. 



246. That business in which we engage for the purpose of selling goods 

 belonging to others for the selling of which goods we are to charge a cer- 

 tain percentage on the sales is called " Commission Business." The 

 business of a commission merchant consists of disposing of the goods e 



to him by a shipping merchant ; hence, in a strictly commission business 

 none of the goods which the merchant has in his store belong to him : 

 therefore he can have no Merchandise account in his Ledger the accounts 

 representing the gains in his business being " Commission," " Storage," 

 " Labour," etc. The books used principally in this business are : Receiv- 

 ing Book, Sales Book, Consignment Book, Journal, Cash Book and Ledger. 

 The Journal, Cash Book and Ledger are of the same form as those used in 

 any other business. The use of the Receiving Book, the Sales Book and 

 the Consignment Book will be described under heading of " Receipts." It 

 will be seen in the two different kinds of business, Shipping and Commis- 

 sion, that the one is directly the opposite from the other the shipping 

 merchant being constantly sending out goods, while the commission 

 merchant is constantly receiving. Therefore, while the Shipping Business 

 is described under heading of " Shipments," it is thought best to describe 

 the Commission Business under heading of " Receipts." 



RECEIPTS. 



247. THE RECEIVING BOOK. The Receiving Book is a book upon 

 which a record of the goods received to be sold on commission is first made. 

 A common Journal ruling is suitable for this book. When goods are re- 

 ceived to be sold on commission, we give the person from whom we receive 

 the goods a consignment number on this book, and under or opposite this 

 is entered, first the date, then the person's name and address, and then the 

 description of articles received; after which, as a memorandum, the 

 charges paid for freight, drayage, etc., together with the name of the Rail- 

 road or Steamboat Co. from whom received. As soon as the goods arc 

 received we stencil on each package the consignment number given them 

 in this book, and they are therefore known, while in the store and when 

 sales are made from them, by that consignment number, and not by the 

 name of the person to whom they belong. There are many conveniences 

 which arise from this " consignment-number method," a few of which be- 

 ing : the packages are marked in this manner much quicker than they 

 could be if the owner's name was used instead ; when any of the goods are 



