277 



BOOK-KEEPING. 



BOOK-KEEPING. 



DR. 



WINE. 



CR. 



^H account must be opened for every species of property the gain or loss 

 n which is to be computed separately. If therefore the merchant wishes 

 to know exactly the result of his dealings in wine, he must open an 

 account for it as above, distinct from his other merchandise. The Dr. 

 side shows the outlay upon the wine coming in, and the Cr. side the 



returns for the wine yoiny out. To ascertain the gain or loss, the value 

 of the wine unsold must be entered on the Cr. side, the difference be- 

 tween tho two sides of the account will then be the merchant's gain 

 or loss. In this case it is gain, and must be entered on the Dr. side, 

 and be from there carried to the Profit and Loss account. 



4. 



DR. 



MERCHANDISE. 



CR. 



In those trades in which goods are Bold in small quantities, it is im- 

 possible to keep an account of every article in the Ledger, and in those 

 cases hi which it is possible, it is generally very undesirable to do so. 

 It is therefore usual for one general account of merchandise to be kept, 

 as above. Thin account shows the gain or loss on the merchandise as 

 a whole. It is debited with the outlay on the goods coming in, and 



credited with the sales, or returns on the goods going out, in the same 

 manner as the Wine account. To close this account, the value of the 

 merchandise on hand is ascertained, by " taking stock," and entered ou 

 the Cr. side. The difference between the two sides is then the gain or 

 loss. In this case it is gain ; it must therefore be entered on the Dr. 

 side, and from there be carried to the Profit and Loss account. 



DR. 



BILLS RECEIVABLE. 



The Dr. side of this account shows the amount of the bills which 

 were owing (or receivable) on the 1st of January. No bills have come 

 into the merchant's hands since that time, or they too would appear 



on this side. The Cr. side shows the amount of the bills disposed 

 of. The balance is tho amount of the bills now owing to tho 

 merchant. 



6. 



DR. 



BILLS PAYABLE. 



CR. 



This account is credited with all bills issued or accepted by the 

 merchant, and debited with all bills paid off or redeemed by him. The 



difference between the two sides of the account is the amount of the 

 bills owing by the merchant. 



Dm. 



SUGAR IN CO. 



CR. 



Prior to the lut of January, the merchant ami J. .Tonka had pur- 

 chased some sugar between them, <>M tlnj understanding that they 

 should share the profits equally. This is the account of that joint 

 speculation, the words " hi Co." indicating the partnership. It is 

 ' with the outlay, and also with the commission charged by the 



merchant for managing the speculation, and credited with the return. i. 

 The difference between the two sides of the account (the sugar l.cin;; 

 all sold) is the profit, one-half of which has to be carried to the credit 

 of J. Jenks, and tho other half to the merchant's credit, in his Profit 

 and LOHS account. 



