140 



THE POPULAR EDUCATOR. 



ment of the said system), the plan of check on the accuracy of 

 all the books will be rendered complete, if, to the amount of 

 the net sums of the Day Book entries for any given period, be 

 added the amount of the sums entered in the Bills Receivable 

 Book, in the Bills Payable Book, in both sides of the Cash Book, 

 and in any other book from which entries are taken into the 

 Journal ; for then the sum of the whole amounts or totals of 

 the sums entered in these books ought exactly to agree with 

 the sum of the Dr. or Cr. columns of the Journal or of the 

 Ledger, for the period in question. Such a mode of check 

 will at all events furnish a clear and satisfactory proof that no 

 error with regard to the entering of sums has been committed, 

 either in Journalising the subsidiary Books, or in posting the 

 entries into the Ledger. 



HOME TRADE. 



In the system of Bookkeeping by Double Entry which we 

 are about to explain, it is necessary to begin with a series of 

 transactions in business, arranged in the exact order of their 

 occurrence. These are the materials to be employed in forming 

 a system which shall constitute a model for guidance in keeping 

 the books of any mercantile house. We have selected the 

 supposed transactions of a particular branch of home trade 

 namely, that of a cotton merchant, as one well adapted, from 

 its simplicity and generality, to exemplify the principles which 

 we have explained in former lessons. We have arranged these 

 transactions in order from January, when we suppose the busi- 

 Mess to be commenced, till June, when we suppose a balance to 

 te struck, and the merchant's real worth ascertained. These 

 six months' transactions in the cotton trade are interspersed 

 with various banking, bill, and cash transactions, such as might 

 be supposed to occur in the business of a cotton merchant resi- 

 dent in the metropolis ; and the whole is afterwards entered in 

 the various subsidiary books which belong to such a business ; 

 then into the Journal ; and, lastly, into the Ledger. The General 

 Balance is then taken, and the difference between the Assets and 

 Liabilities, or the real worth of the merchant, is ascertained 

 from the Ledger alone. The remarks which it will be necessary 

 to make concerning the method of Balancing the Books a pro- 

 cess equivalent to the taking of stock among tradesmen and 

 others, who only use Single Entry we must postpone until we 

 have shown how to make up the Subsidiary Books of our 

 system. 



MEMORANDA OF TRANSACTIONS. 



1881. January 1st. 

 Began business with a Capital of . 



. 1200 



3rd. 



Deposited my Capital in the London and Westminster 



Bank 1200 



5th. 

 Drew out of the London and Westminster Bank . . 10 



5th. 

 Took from Cash for Petty Cash 500 



7th. 



Bought of Osmond and Co., London, 

 22 bags of Berbice Cotton (on credit), 



Net 7280 Ibs. at 9|d. per Ib. . . . . 288 3 4 



10th. 

 Took from Cash for Petty Cash . 500 



12th. 



Bought of Andrews and Co., London, 

 30 bags of Grenada Cotton (on credit), 



Net 9240 Ibs. at 8^d. per Ib 327 5 



17th. 

 Drew out of the London and Westminster Bank . . 985 



17th. 



Bought 1000 of Stock in the Three per Cents. Consols, 

 at 98 per cent 985 o 



21st. 

 Accepted a Bill drawn by Osmond and Co., London, 



No. 1, Payable to their Order, due at 3 months . . 288 3 4 



22nd. 

 Drew out of the London and Westminster Bank . . 10 



January 22nd. 

 Took out of Cash for my Private Account 



26th. 



Bought of Andrews and Co., London, 

 14 bags of Maranham Cotton (on credit), 

 Net 4350 Ibs. at 7^d. per Ib. . 



31st. 



Accepted Two Bills drawn by Andrews and Co., London, 

 No 2, Payable to their Order, due at 3 months . . 

 3, Smith and Co. 4 months . . 



February 1st. 

 Sold to Brown and Smith, London, 



22 bags of Berbice Cotton (at 1 mo. credit), 



Net 7280 Ibs. at 10d. per Ib 



Discount at 1^ per cent 



10 



135 18 9 



327 5 

 135 18 9 



318 10 

 4 15 7 



5th. 

 Drew out of the London and Westminster Bank 



5th. 

 Lent to Thomas Watson, London . 



10th. 

 Bought of White and Co., London, 



24 bags of West India Cotton (at 1 mo. credit), 



Net 7460 Ibs. at 6^d. per Ib. . 

 Discount at l per cent 



14th. 

 Sold to Williams and Co., London, 



14 bags of Grenada Cotton (at 1 mo. credit), 



Net 4312 Ibs. at 9^d. per Ib. . 

 Discount at 1^ per cent 



17th. 

 Bought of White and Co., London, 



24 bags of West India Cotton (at 1 mo. credit), 



Net 8476 Ibs. at 6jd. per Ib. . 

 Discount at l per cent 



313 14 5 

 100 

 100 



202 10 

 307 



199 3 



170 13 8 

 2 11 2 



168 2 6 



229 11 2 

 3 8 10 



21st. 

 Sold to Williams and Co. , London, 



16 bags of Grenada Cotton (at 1 mo. credit), 



Net 4928 Ibs. at &d. per Ib. . 

 Discount at 1 per cent. . . . 



22nd. 

 Received of Thomas Watson, London, 



My Loan of tbe 5th instant . . * . . 



22nd. 

 Deposited in the London and Westminster Bank . . 



25th. 

 Bought of tbe East India Company, 



10 Lots of Madras Cotton (prompt April 25th), viz., 

 No. 1. containing 12 bales, net 4320 Ibs. at 4d. per Ib. 



2. 

 3. 



4. 

 5. 

 6. 

 7. 

 8. 

 9. 

 10. 



12 



12 

 12 

 12 

 12 

 12 

 12 

 12 

 12 



226 2 4 



195 1 4 



2 18 6 



192 2 10 



100 



100 



72 



4260 

 4132 

 4084 

 3976 

 4092 

 4300 

 4184 

 3896 

 4004 



71 



68 17 



68 1 



66 5 



68 4 



80 12 



78 



73 1 

 75 1 



9 





 6 



25th. 

 Due to James Manning, London, 



For his Brokerage on 721 12s. at per cent. . 



26th. 

 Drew out of the London and Westminster Bank . 



26th. 

 Lent to Darling and Co., of London 



28th. 



Paid the East India Company their Deposit on 

 10 Lots of Cotton at 6 per Lot 



721 12 



3 12 2 



120 



50 



60 



