BOOKS OF ORIGINAL ENTRY $3 



first that since the $700 is in the debit column of the jour- 

 nal, it must be posted to the debit side of the ledger 

 somewhere. The exact place in the ledger is found to be 

 Horse account, when we follow along the horizontal line 

 to the left of the amount in the journal. 



The next item in the journal is $500 in the debit column. 

 Therefore $500 must be placed on the debit side of the led- 

 ger. The exact place in the ledger is found to be Hogs 

 account, when we look to the left along the same horizontal 

 line. Cattle and Equipment accounts are similarly debited. 

 Likewise the item in the credit side of this entry must ap- 

 pear on the credit side of the ledger under the Cash ac- 

 count. 



The journal entry under discussion is called a compound 

 journal entry because it has more than one debit and one 

 credit. The sum of the debits of a compound entry must 

 always equal the sum of the credits. 



The same principles are followed in posting all other 

 debits and credits from the journal to the ledger. The 

 work is largely mechanical, but requires great care in order 

 to avoid errors. It may be said that one performs the men- 

 tal work at the time of framing the journal entries, and 

 that he is merely following the instructions of the entries 

 in posting them to the ledger. 



Simple Cash Book. The simple cash book usually is so 

 arranged that both the left and right-hand pages are in 

 use at the same time, the left one for cash received and the 

 right one for cash paid. Each page has vertical columns 

 and lines quite similar to the simple journal. 



On the left-hand side of the cash *booU are entered in 

 chronological order all amounts of cash received, and on 

 the right hand side all amounts of cash paid out. Cash 

 includes all currency, coins, checks, bank drafts and money 

 orders, but not promissory notes. When for example 

 $2500 cash is received as investment of the proprietor, the 



