70-2 



THE IIOMK, FARM AND BUSINESS CYCLOPAEDIA. 



338. In order that " The Illustration " may be thoroughly understood, 

 an explanation of same will be given to each entry: for the Journal and 

 the Ledger, on the opposite page from the "Illustration"; for the Cash 

 Book, on the pages following same. The "Ex." prefixed to a paragraph 

 number "signifies, tkat what follows is an explanation of that which fol- 

 lows the original paragraph number. 



339. The object in having the Journal ruled in the form here shown, 

 instead^of having the columns all at the right of the page, is : (1) Bj 

 having the debits at the left and the credits at the right of the entries, 

 the book-keeper is not so liable to post an item to the wrong side of the 

 Ledger. (2) When a Journal entry is made, the debit and credit may 

 both be placed^on the same line, and thus economize in paper and make 

 the entries more compact. (3) The book presents a better appearance in 

 being thus arranged. 



340. A Journal ruled in the common form may be used for this system 

 by either ruling an extra money column on the debit side of the book and 

 two L. F. (Ledger Folio) columns one on the left side and one on the 

 right ; or, by dispensing with the " Mdse. Dr." column, and simply ruling 

 the two " L. F." columns ; then, by using the column at the left which was 

 originally intended for the date, for a " Miscellaneous Dr." column, writing 

 the date in the centre of the page. If the latter method is adopted, the 

 " Mdse." debit items must be entered in the " Miscellaneous Dr." column 

 and posted to the Merchandise account in separate entries, the same as 

 other debits are posted to their respective accounts. 



341. In order that the beginner in the practice of book-keeping may 

 know what entry to make, how to make it, and what explanation to write, 

 it is thought advisable to insert here an 



INDEX TO TRANSACTIONS. 



Accept Time Draft drawn on us, 380-381. 

 Accept Time Draft drawn on us by a creditor 



in favour of a third party, 433-434. 

 Borrow money and give note therefor, 505. 

 Buy Bank Shares, 517. 

 Buy Mdse. and pay cash therefor, 519, 

 " " on account, 401 to 107. 



" and give note therefor, 459 and 444. 

 " " and accept time draft therefor, 403, 



380-381. 

 Buy Produce from farmer for cash, 519. 



"on account, 336. 



Buy Store and Office Fixtures, and pay cash 

 therefor, 511, 514, etc. 



Buy Store and Office Fixtures, and give note 



therefor, 390-391. 



Charge Interest on an account, 382-383. 

 Charge R. R. Co. for overcharge on Freight, 



393-394. 

 Compromise for full settlement at a certain per 



cent, on the dollar, 500, 450 and 451. 

 Discount note bearing interest, 4i)5 and 496. 



" " not bearing interest, 489 and 509. 



Draw Sight Draft and have same paid by tho 



person upon whom drawn, 492. 

 Draw Time Draft and have same " accepted " 



by the person upon whom drawn, 303, 380 



and 381. 



