KEEPING ACCOUNTS. 235 



exceeds the credit, of course you have less than when you 

 began. Then the balance of each departmental account (all 

 proper charges having been entered, and its share of prop- 

 erty on hand credited) will show how much it has made or 

 lost. These balances are then usually carried to a general 

 account, called " Profit and Loss ; " those having a credit 

 balance are charged that amount, and Profit and Loss is 

 credited ; and those having a debit balance are credited that 

 amount, and Profit and Loss is charged for it. This being 

 done with the Departmental accounts and the General Stock 

 accounts, with the Cash accounts, and the Bills Payable and 

 Bills Receivable accounts, and Profit and Loss having been 

 also charged for bad debts and the parties owing them 

 having been credited therefor the balance of that account 

 shows the Profit and Loss of the business. Some parties do 

 not credit the accounts of persons who owe bad debts, and 

 charge Profit arid Loss ; but, after making up the Profit and 

 Loss account, draw it oft' on a sheet of paper, and account 

 for them there. Others open an account called " Suspense," 

 to which they credit the amount of the several bad debts 

 (specifying them in the Day-Book), and charge Profit and 

 Loss. This method prevents the accounts of bad debtors 

 appearing closed on your Ledger. After you have made up 

 your books as directed, it is best to make a balance sheet, 

 which will show at a glance what departments have made 

 money, what lost, who owes you, and who you owe. After 

 this, the several departments should be charged back again 



