(576 TH E HOME, FARM AND BUSINESS CYCLOPEDIA. 



posted to the debit side of a " Charges " account in the Ledger this ac- 

 count receiving credit for such charges when the consignments are closed 

 out, as will be hereinafter described. The difference between the two 

 sides of this account always shows the amounts owing to us for freight 

 and cartage charges on consignments not yet closed out, and, therefore, is 

 a resource. 2nd. When sales are made from a consignment on account, 

 in addition to crediting the owner on the Consignment Book, a " Merchan- 

 dise " column is kept in the Sales Book, and all sales are extended into 

 this column ; at the end of each month the total of this column is found, 

 and that amount is posted to the credit of a " Merchandise " account in 

 the Ledger. An extra column is also kept on the debit side of the Cash 

 Book for Merchandise, in which to extend all of the cash sales of the con- 

 signments ; and, as in the Sales Book, in addition to crediting the consign- 

 ments for such sales, the amounts of each are extended into this column, 

 the total of same carried forward until the end of the month, and then 

 posted to the credit of Merchandise in the Ledger. 3rd. When a con- 

 signment is sold out, the total amount of the sales of that consignment is 

 posted to the debit of the Merchandise account in the Ledger ; then all the 

 charges, such as freight, drayage, labour, commission, etc., are entered on 

 the debit side of the Consignment Book. The difference between the 

 total of these charges and the total sales is now found, and that difference, 

 being the net proceeds of the sales, is posted to the credit of the consignor's 

 account in the Ledger; after which, the ""Charges" account is credited for 

 the freight and drayage charges, and each of our gain accounts, such as 

 Commission, Labour, Storage, etc., is credited for the amount here entered. 

 The difference between the two sides of the Merchandise account, as here 

 used, is a liability, being the amount we owe on consignments not yet 

 closed out. At the end of each month, when we take a trial- balance, we 

 must go through the Consignment Book, and on such consignments as 

 have not yet been closed out, find the total sales of each, and include all 

 such amounts on the debit side of the trial-balance these being amounts 

 we owe to consignors for goods we have sold and not yet rendered Ac- 

 count-Sales for, but which have been credited to Merchandise in the Sales 

 Book. The total of these amounts thus taken from the Commission Book 

 should just agree with the difference between the two sides of the Mer- 

 chandise account in the Ledger. 



The following forms will illustrate the different styles of rulings used 

 by different commission merchants. 



