BOOKKEEPING 814 



make the proper entries in the day book, cash 

 book and ledger. 



JCLT 



17. Mowed Mr. H. C. Smith's lawn. Charge 



htm 60*. 



18. Received $1.00 for work done to-day for 



Mrs. Potter. 



Spent 2S< for a baseball. 

 1. Bought Tom Pearson's bat for 76f. Pay 



him next week. 

 Weeded Mr. Smith's garden. Charge him 



35f. 



10. Picked and sold 6 quarts blueberries, at 1( 



a quart, cash. 



11. Received payment In full from Mr. Smith. 

 Spent 55< at the circus. 



23. Received 60< for mowing Mrs. Potter's 



lawn. 

 Paid Tom Pearson In full. 



When he is making his postings to the 

 ledger from the cash book the student should 

 remember that items which do not concern 

 debts do not appear in a single-entry ledger. 

 Where there is an entry in the cash book which 

 will not be posted, a blank check (y/) should 

 be put in the checking column so that it will 

 not appear that a posting has been omitted. 

 When a ledger account is settled in full the 

 figures of each side should be added and the 

 Ledger (page 1) 



BOOKKEEPING 



totals written opposite each other below a 

 single line and underscored with a double line. 

 . After the work is done it may be compared 

 with the following illustrations: 

 Day Book (page 1) 



H. C. Smith 



(page 2) 



Tom Pearson 



Double-Entry Bookkeeping 



The Venetians are usually credited with hav- 

 ing invented the double-entry system, in the 

 fifteenth century, but it is quite probable that 

 they merely elaborated and made popular 

 methods that had been used by the ancient 

 Romans. From the name anyone might judge 

 that the double-entry system requires twice 

 as much labor as the single-entry. In some 

 cases it does, giving in return twice as much 

 information, but in any active business it actu- 

 ally saves labor, besides telling the proprietors 

 much about their affairs which they never 

 could learn from the older method. 



The principle of the double-entry system is 

 not that there are two entries for every trans- 



action, but that there are two phases, or sides, 

 of every entry. For example, when a mer- 

 chant sells ten yards of cloth he increases his 

 cash or the amount of money due him, but 

 at the same time he decreases his assets of 

 merchandise. In strictly single-entry you 

 merely record the increased asset; in double 

 entry you note also the corresponding decrease. 

 Similarly, if a ten-dollar bill is found on the 

 floor, single-entry shows only the increased 

 cash. At the end of the year this ten dollars 

 will appear in the profits of the business, 

 though the latter obviously deserves no credit 

 for it. Double entry, on the contrary, records 

 the source of every profit or loss. 



