094 THE HOMK, FA KM AND BUSINESS CYCLOPAEDIA. 



DIRECTIONS FOR CHANGING A SET OF BOOKS FROM 

 SINGLE ENTRY TO DOUBLE ENTRY. 



319. The proceedings for changing a set of books from single entry to 

 double entry are as follows, viz. : 



1st. Take an inventory of all the merchandise, store and office fixtures, 

 fuel, real estate, buildings, unexpired insurance, unexpired taxes, bank or 

 other shares, and whatever other values the firm may have ; open an ac- 

 count in the Ledger for each, and debit all such accounts for the total value 

 of each as represented by the inventory. 



2nd. Open a Bills Receivable account in the Ledger and enter on the 

 debit side of that account all the unpaid notes (that we call good} held 

 against others. (See 107.) If the parties from whom we received these 

 notes were not credited for such notes at the time they gave them to us, 

 they should be credited when the Bills Receivable account is opened. 



3rd. Open a Bills Payable account in the Ledger, and enter on the 

 credit side of that account all the unpaid notes we have outstanding, made 

 by us payable to other parties. (See 129.) If the parties to whom we 

 gave these notes were not charged for such notes at the time they were 

 by us given to them, they should be charged when the Bills Payable ac- 

 count is opened. 



4th. Open a Cash Book and enter on the debit side the total amount 

 of cash on hand and in the bank ; then proceed with this book according 

 to instructions in paragraphs 13 and 75 to 86. 



5th. Open such accounts in the Ledger as you wish to keep to show 

 your expenses during the year, such as Expenses, Salaries, Advertising, 

 etc., etc. (See 194.) 



6th. Open an Interest account in the Ledger and use it according to 

 instructions in paragraphs 144 to 154. 



7th. Now find the actual present worth of the firm by taking a Trial 

 Balance, consisting of the names and amounts of all the accounts in the 

 Ledger representing resources and liabilities, including the accounts just 

 opened. In the single entry Ledger, as formerly kept, appear all the 

 personal accounts owing to and by the firm which accounts would of 

 course be included in the Trial Balance as a part of the firm's assets and 

 liabilities. Having thus copied into the Trial Balance all the accounts in 

 the Ledger representing resources and liabilities, we find the sums total 

 of the two columns, and the amount the debit column (representing re- 

 sources) exceeds the credit column (representing liabilities) is the net 



