ON TAKING IN A .NEW PARTNKK. 



present worth of the firm which net present worth should exactly agree 

 with the sum total of the value of all the members' Stock accounts. 



8th. Having made the sum total of the members' Stock accounts agree 

 with the sum of the net present worth of the firm, the Ledger will balance* 

 and we may then proceed according to the rules of double entrv. 



313. Some firms adopt a system of book-keeping which is neither 

 single nor double entry, but " betwixt and between." It is single entry 

 with a few conveniences borrowed from double entry. For example : 

 Many keep a Cash Book, an Expense account, so that they may see what 

 their expenses have been during the year, and all keep Private accounts 

 fur cadi member of the firm, which they treat as described in paragraphs 

 57 to Go. 



31 1. It is quite as easy to ascertain how much is lost or gained l.y the 

 firm in the business by single entry as by double entry. In single entry 

 the business man knows how much he is worth at the beginning of the 

 year, and by taking an account of all his resources and liabilities at the 

 end of the year, he may ascertain how much he is then worth the 

 difference between the amount worth at the beginning of the year and 

 the amount worth at the end of the year being the net gain, or the net 

 loss. 



315. The phrase " at commencement of business," used throughout 

 " The Foundation," may in every instance be applied to the entries made 

 in changing a set of books from single entry to double entry. 



ON TAKING IN A NEW PARTNER. 



316. In taking a new partner into the concern, the strictly proper \vav 

 !o is to close the books at the time the partner is received, in order 



that an 6Xad stat incut of the p resent condition and worth of the linn 

 Trial Balance, exhibiting tin- same, may ! made and 



submitted tu the M.-\V partner for inspection, in order that tliere mav he 

 n>. misunderstandings. When this is done, the I. \hihits nothing 



on r \vliidi are eitlu : r Liabi- 



lities ; and als.. shows the present net worth of each of the old parti 

 Tin- new pa; :i credited with hi-; n.-t i: 'it; aft -i which, 



the ^ains and 1 mei t tin- new firm MV share. 1 proportionately, according 

 reemeni In illustration <>f this method, 



317. S.ime firms, in taking in a new partner, simply take an invmtorv 

 and make a statement of the actual present standing of the ,ld tinu ; not 



