COMMISSION BUSINESS. 675 



representing same. But this way of doing necessitates the making of ad- 

 ditional charges when the consignments are closed out ; therefore, it is 

 the custom to allow these consignments to remain untouched until then, 

 for the reason that by doing otherwise it makes of them " complicated 

 affairs " similar to that described under "Interest Receivable," 1 



The commission merchant usually procures an insurance policy of a suf- 



ut amount " to cover any goods he may at any time have in his store." 

 When such a policy is procured, he opens an account in his Ledger and 

 styles it " Insurance receivable," or some similar title, and to this account 



k'bits the amount paid for premium on that policy. This is called a 

 resource ; for to the consignor he charges a certain percentage for insur- 

 ance, according to the time the goods remain in his store, this Insurance 

 Receivable account receiving credit for such amount. At the end of the' 

 year, as heretofore stated, the value of the unexpired premium is approx- 

 imated; after which the Insurance Receivable account is closed the same 

 ibed in 188. There are some consignors who will not permit us 

 to charge for " Insurance ;" but an "arrangement is usually resorted to by 

 the consignee through which he can, in spite of the consignor's protesta- 

 ti -ns, get in all his petty charges, such as insurance, " ratage," risks on 

 on-account sales, etc., by charging a certain percentage under " Risks, 1 ' 

 "Charges," or some similar title. 



251. Tin A L BALANCE. In taking the trial-balance according to this 



hod, we must not only take the accounts in the Ledger and the 

 on hand as shown by the Cash Book ; but also, find the difference between 

 the two sides of all the unclosed consignment accounts in the (' 

 ment Book, and include all these accounts as well as the trial-balance. 



2l^i. Tin TO are several different methods of keeping these consignment 

 accounts, but the one here adopted is thought to be the best; for the; 

 DO method by which the work can ned --less writing done. 



entries made- unless it be a business in which they deal mostly in petty 

 Miall consignments which they usually dispose of at 

 : th'-n ; in and form described in '2~>i\ and ~2~i7 i^ nv.m- 



mended. 



^Jtltt. .1 notlu r M> ': '. i described i 



with tin- f"llo-,\ 1st. When g. 



and druyjiio 1 paid, instead of posting 



M charg' y to th* < vomit in the Consignment Book, 



i colmni t in the Cash Book for ' Charges." Into this 



column ; all Mich charires, ; ,nd at the md >f the day, 



month, whenever the Cash Book is cl< ii colun, 



