FAKM ACCOUNTS. 77 



CLOSE BUSINESS ACCOUNTS INTO LOSS OR GAIN. 



A business account which has no inventory is closed by 

 writing on the less side in red ink the difference between 

 the two sides. The date, Loss and Gain, and card number 

 of the Loss and Gain Account should also be written. This 

 difference should be transferred in black ink to the opposite 

 side of the Loss and Gain Account. The account should 

 be ruled as shown in the closed ledger. 



Where a Business Account has an inventory that is a 

 resource, write the inventory on the credit side in red ink 

 and transfer it in black ink to the opposite side of the Bal- 

 ance Account and proceed as with an account without an 

 inventory. 



CLOSE FINANCIAL ACCOUNTS INTO BALANCE. 



A Financial Account that balances (whose debits and 

 credits are equal) is balanced by simply bringing down 

 the totals opposite each other and ruling as on card 16 

 Family Expense. Where the two sides are unequal write 

 on the less side in red ink the difference and carry this in 

 black ink to the opposite side of the Balance Account and 

 rule as on card 21. 



If desired, the balance may be brought down underneath 

 the ruled account instead of carrying it to the Balance 

 Account. The ledger would then be open ready for busi- 

 ness. 



THE USE OF RED INK. 



Red ink should be used sparingly. Its use is to empha- 

 size or call attention to, and usually denotes something 

 out of its proper place. When a red ink entry is trans- 

 ferred it is entered in black ink. Never make the same 

 entry twice in red ink. 



"After all, the man who is thorough, is the one who is wanted." 



