JteoJc- 3d, An account cur- 



Keeping; rent of the affairs of an- 

 ' ' ' other done by the mer- 



chant. 



4th, Do. for a joint ac- 

 count. 



Sth, Do. for a joint ac- 

 count of Exchange in Co, 



A. B. his account. F. 



BOOK-KEEPING. 673 



A Personal Accoun t is Dr. j and Cr. 



When he gets intomy debt. When he gets out of my 



6th, Do. do. with a fac- 



tor. 



7th, Several debtors for 

 small sums. 



8th, Several creditors 

 for small sums. 



A. B. his account 



in Co. 

 A. B. our account 



of exchange in 



Co. 

 A. B. our account 



for Co. 

 General account 



receivable. 

 General accou 



payable. 



C. 



C. 



E. F. C. 



P. 



P. 



38. The Journal Title of intermediate or summary 

 Accounts are, 



1st, The state of the merchant's* 

 property at the commencement, or 

 at the closing of accounts, and eve- 

 ry increase or decrease of his pro- 

 perty in the intervening time, with- ] Stock, 

 out giving a valuable consideration 

 of property for such increase, or 

 without receiving a valuable consi- 

 deration for such decrease . . . . 



2d, Gains or losses by business . . Profit and loss. 



3d, Expenses of business by house- 1 p, 

 keeping, servants, rent J 



4th, Gain or loss by transacting! r< _ 

 business for another * j Commission. 



5th, Gain or loss by lending? j 

 money f 



6th, Gain or loss by insuring for } T 

 others . . j In8Urancc - 



There is besides another Summary Account hitherto 

 peculiar to the Leger. 



1st, Balance the difference between the inner co- 

 lumns of the real accounts, and of the inner columns 

 of the factor's accounts in foreign money, and also of 

 factor's accounts of domestic money, attended with 

 exchange, and the difference between the two sides 

 of personal accounts, except the single case of insol- 

 vency. 



39. For the ready management of those titles, the 

 following rules have been contrived : 



A Real Account is 



Dr. 



When it becomes mine, 

 To the Thing, 

 Person, 

 Service, 

 Engagement, 

 The cause or occasion 

 of this for its value, 

 or its improvement. 



VOL III. PABX IV. 



and Cr. 



When it ceases to be mine, 

 By the Thing, 

 Person, 

 Service, 

 Engagement ; 

 Which is the cause of this 

 separation, and produ- 

 ced by it. 



Ferwhathethen contracts. 



When Iget out of his debt. 

 To the Thing, 

 Person, 

 Service, 

 Engagement, 

 The cause or occasion 

 of it. 



debt. 



By what he pays or ceases 

 to owe. 



When I get into his debt. 

 By what he gives me. 



A Summary Account. 



When Dr. 

 And connected with a real 

 or personal account im- 

 plies a loss. 



When Cr. 

 And connected with a real 

 or personal account im- 

 plies a gain. 



Book- 

 Keeping. 



There are also three Maxims. 



FIRST MAXIM. 



40. When the summary accounts are debtors, and 

 thus the cause of the separation of some real or per- 

 sonal account, there is a loss ; this is true, but in a 

 secondary consideration : the immediate value of the 

 title, and not the form of the entry, proves the rule ; 

 for, if a personal account be insolvent, or wares be 

 damaged, a loss is incurred as certainly as by any of 

 the summary accounts. 



SECOND MAXIM.. 



41. To take off a debit, credit the account by so 

 much ; to take off a credit, debit the account to so 

 much ; the relative value of either side is changed by 

 the equivalent addition, and thus all erasure in the 

 book is avoided. 



THIRD MAXIM. 



42. To carry a debit from one folio to another, 

 make the former creditor and the latter debtor. To 

 carry a credit from one folio to another, make the 

 former debtor and the latter creditor. This maxim 

 is but a consequence of the second, and the truth of 

 both depends on the meaning of the words debtor 

 and creditor. 



CHAP. V. 



The Leger. 



43. The Leger is a book into which the several The Leger. 

 transactions which are dispersed in the Waste-book 



and auxiliary books, and prepared by the Journal 

 entries of the titles, with the relation of debtor and 

 creditor, are transferred each to its proper account. 



44. By this arrangement, the merchant readily per- 

 ceives by the inner columns the true state of each 

 real account in respect to the quantity remaining, 

 and by the inner columns of those personal accounts 

 which have them, what he owes, or is due to him ; 

 and by the outer columns of the other personal ac- 

 counts, what is due to him, or what he owes ; and in 

 respect to the summary accounts, the state of the. 



4 Q 



