THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



Most business houses call this account " Suspense," but the title IK -re 

 used is thought to be more expressive. Some houses balance all the 

 doubtful accounts, whether worthless or only part worthless, and carry 

 the total amounts of such to the Suspense account; afterward debiting 

 Loss and Gain and crediting Suspense for an approximated per cent, of 

 the total amount thus carried to Suspense, and calling the balance of tlir 

 Suspense a resource, or the amount thought by them collectible. Smnt> 

 of the smaller business houses carry the amount lost on poor accounts 

 and notes direct to the Loss and Gain account. The system herein re- 

 commended is thought to be better than either of these, for the reason 

 that the amounts we know to be entirely worthless we at once call so, 

 and make an entry accordingly ; and of those accounts we think to be 

 only part worthless, we carry amount thought worthless to an account 

 representing the loss, and allow the amount called good to remain in the 

 original account ; thus, instead of " flooding " our Loss and Gain account 

 by carrying each of these accounts therein, we simply carry to the account 

 the grand total of such loss. 



LOSS & GAIN. 



275. Debit, at the end of the year, 

 for all accounts upon which we have 

 lost during the year writing here, 

 in black ink, the names of the ac- 

 counts upon which such losses were 

 sustained, and the amounts. 



276. Credit, at the end of the 

 year, for all accounts upon which 

 we have gained during the year 

 writing here, in black ink, the names 

 of the accounts upon which such 

 gains were made, and the amounts. 



277. Directions for closing the Loss & Gain account at the end of the 

 year ; 



1st. After all the accounts upon which losses and gains have been made 

 are transferred, as directed in 275 and 276, then find the difference between 

 the two sides of this account. 



278. Closing No. 1. If the credit side be the larger, the amount the 

 credit exceeds the debit is the net gain for the firm, or the net bu- 

 gain. We then divide this gain among the proprietors, pro rata or equally, 

 according to agreement at commencement of business, and write on the 

 debit side of this account, in red ink, the names of each of said proprietors, 

 adding " Private account " after each, and extending into the money 



