730 THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



EXPLANATION OF THE LEDGER. 



THE COLUMNS. 



Ex. 555 and 559. These are the date columns. The dates entered 

 herein are taken from the Journal and Cash Book, or whatever books we 

 post from. 



Ex. 556 and 500. These are the " explanation columns " referred to in 

 323 and 324. 



Ex. 557 and 561. These are the columns in which we indicate the 

 Journal or Cash Book pages from which a transaction is posted or trans- 

 ferred. By thus entering on an account the Journal or Cash Book page 

 upon which a transaction may be found recorded in detail, it is not neces- 

 sary to write any explanations on this book, excepting the few instances 

 that will be noticed on the accounts herein. 



Ex. 558 and 562. These are the debit and credit money columns. 



Now read Par. 15 to 19 ; also 321 to 330. 



THE ACCOUNTS. 



Ex. 563 to 570. See 49 to 56. (This set of books is closed according to 

 Closing No. 1.) It will be seen that Goodwin has a net private gain^ 

 while Emerson has a net private loss : thus illustrating to the student the 

 different ways of treating the Stock accounts in such cases. 



Ex. 571 to 583. See 57 to 65. It will be seen in 575 and 582 that 

 each of the partners is credited with equal shares of the net business gain. 

 Goodwin has drawn less (571, 2 and 3) for his private use than his net 

 business gains amounted to, therefore he has a net private gain (See 62). 

 It does not matter whether or not a salary is allowed the account is 

 treated the same, as will be seen in this case where none is allowed. 

 Emerson has drawn more for his private use than his net business gain 

 amounted to, therefore his is a net private loss. (See 63.) 



Ex. 584 to 591. See 66 to 74. 



Ex. 591 to 600. See 92 to 96. 



Ex. 601 to 628. See 322. In business colleges 601 is the style of 

 ruling that is used under the Ledger headings. Some book-keepers also 

 use this ; but if any ruling is used the style under " Bills Payable (628) is 

 recommended, as it requires less time to rule it and is not so " fussy." 

 These rulings are used here simply to show the different styles. 



Ex. 602 to 627. See 107 to 128. Some book-keepers do not insert the 

 two ciphers in the " cents" column in their books when there are no cents 



