SINGLE ENTRY BOOK-KEEPING. 753 



When goods are sold or bought on " account," the meaning is that they 

 are not paid for, but are to be debited or credited to the party to whom 

 sold or from whom bought; therefore, when the expression "on account'' 

 is used, it indicates that the amount is to be placed to the debit or credit 

 of some personal account. 



Those accounts upon which we think there will never more be entries 



made, are called " Dead Accounts," and those accounts which are yet open 



and upon which we either frequently or seldom make entries, are called 



" Live Accounts." The more frequent the entries are made, the more is 



.lality witli which the account is infused. 



When there are but one or two " extra columns" in the Cash Book or 

 the Journal, it is not necessary to have printed or to write the names of 

 same at the top of each column ; for the uses of same are known to tin- 

 book-keeper and he is not obliged to refer to the top of the page for the 

 11 une of the column in which to enter an item. However, when several 

 " extra columns " are used, it is necessary to have the book ruled and 

 printed to order. 



No employe* can sign notes, drafts or checks for the firm without first 

 having procured a " Power of Attorney " authorizing him so to do ; but he 

 mav en-loi^e for deposit in the bank drafts, notes, checks, etc., made pava- 

 ble to the order of the firm, by simply getting a written order from them 

 to the cashier of the bank authorizing him to do so. When the latt< 

 don nature of the employe* so authorized is recorded in the bank's 



" Signature Book," and the firm's written order is taken by the cashier of 

 the bank an-1 filed away, so as to insure against any accidents, etc., that 

 might occur through the carelessness or negligence of such emplo\ 



When a merchant's Liabilites exceed his Resources, he is then insolvent ; 

 Hii>l the iliili T.-nce between the sum total of his Resources and the sum 



I his lift invoice in- i/ t which <liilerenee will ap; 

 in the d of his Stock account instead of on the credit, a 



.! tin- Liabilities and the difliTeiuv i s known 

 as a 



SINGLE ENTRY BOOK Kl-:i-:riN; 



852. T; :nce bet K-i try book- 1 Double 



ry book-krrpin;: is explaiin-d in paragraphs 3 and G. Any person 

 who of as much as a thimble lull of brains, i: 



withou' tly and hon-stly claim a knowledge of Single 



ry book l>ut live years of age (unless he be a son 



vv 



