234 KEEPING ACCOUNTS. 



account. If you have too little, you have spent money for 

 which the account has not been credited. 



The Bill-Books are to keep a record of notes received and 

 notes paid out. The Bills Payable book records the follow- 

 ing facts : The date of the note, the time it is to run, the 

 date of falling due, to whom it was given, in whose favor it 

 was made, and the amount it was made for. The Bills 

 Receivable book records: Who made the note, in whose 

 favor it was made, how long it has to run, when it is due, 

 and the amount it is for. When notes are paid or received, 

 these facts should, of course, be properly noted in the Day- 

 Book. 



When accounts are first opened it is best to take an in- 

 ventory of property of all kinds on hand, charging each 

 department with which you intend to keep an account with 

 that portion which it requires, and crediting an account for 

 the same which shall represent all your " Stock in Trade." 

 This account is usually called " Stock." Then, at the time 

 you wish to close up your accounts to ascertain your profits 

 and losses, you take another inventory, and give your de- 

 partmental accounts credit for what property they have on 

 hand, charging the general stock account for the same ; the 

 balance of this account (i. e., the difference between the 

 footing of the debit and credit columns) then shows how 

 much more or less property you have on hand than when 

 you commenced business. If the credit side exceeds the 

 debit, of course you have more property ; and if the debit 



