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16 



The Florists^ Review 



Jolt 8, 1920 



accounts bo that they will show in ad- 

 dition: (1) Income, (2) expense, (3) 

 net profit, or net loss. 



Income. 



Income is what flows into the busi- 

 ness, and the word itself suggests some- 

 thing that is moving and not stationary. 



Opposite this is expense — the outflow 

 of a business, and this term also sug- 

 gests things that are in action and not 

 stationary. 



To arrive at the net profit or the net 

 loss, it is absolutely necessary ^o record 

 •vary transaction; so we will group the 

 classes of income and group tlie elasiei 

 of expense: 



ZNOOKE. 



20. Profit OB sale* { 



21. Profit on contracts f 



22. Intereat on bank balance! f 



28k Discount on merchandlM pnr- 



cbased 9 



24. Items of income not aboTo 



cUsaified > 



Total Income 9 



From which we deduct: 

 EXPENSES. 



80. Kent (fair rate, if owner).... 9 



51. Wages paid (not cbarged on 



contracts) ••• • 



52. Allowance to mercbant for his 



aerrice (at fair rate) 9 



88. Insurance on merchandise, fix- 



tures, etc 



84. Interest on borrowed money.... 

 88. DellTery expenses 



86. Taxes of all kinds 



87. Fuel and light 



88. Charity 



88. Bad accounts • • • 



40. General expenses not included in 



abOTO 9 



Total Expenses 9 



When deducted from total in- 

 come glTes net profit, or net 

 income 9 



This net income, to the penny, will be 

 reflected in assets and liabilities. Every 

 penny of profit will either increase the 

 assets or decrease the liabilities. Every 

 penny of loss will either decrease the 

 assets or increase the liabilities, thereby 

 decreasing the net worth. 



Any business, no matter in what line 

 of effort or what is the size of its cap- 

 ital, is subject to this principle. 



Having explained how books of ac- 

 count, divided into four classifications 

 (assets, liabilities, income, expenses), 

 indicate whether a business is making a 

 profit or a loss, we will now endeavor 

 in a similar fashion to offer some idea 

 of how books of account (of a simple 

 kind), can be secured by a merchant 

 and kept so that he can tell accurately, 

 with the leaat possible effort, what are 

 the income and expenses, the assets and 

 liabilities, the profit or loss of his busi- 

 ness enterprise. 



The Books of Account. 



Having reached in our development 

 of the bookkeeping process, or rather 

 of the books of account that are needed 

 in connection with a man's business, 

 the kind of facts to record as to what 

 happens from day to day, month to 

 month, or year to year, we will say in 

 illustration that when the merchant 

 buys merchandise and it is delivered 

 to him, he charges it to the business 

 enterprise on the books of account, and 

 credits the person from whom goods are 

 bought. When the merchandise is sold, 

 credit at cost is given to merchandise, 

 and the profit is credited to profit on 

 sales. When a merchant puts cash capi- 

 tal into the business, he charges cash 

 and credits the investment, and when 

 payments are made for expenses in- 

 curred, he credits or reduces his cash 

 and charges the items paid to various 

 accounts involved. 



The books of account, therefore, 

 form the connecting links between a 

 merchant and his business enterprise. 



Simplified Double Entry. • 



The old and customary form of book- 

 keeping is what is known commonly as 

 "double entry," involving cash book, 

 check book, purchase book, sales book, 

 journal, sales ledger and general ledger. 

 When a merchant is in a position to 

 keep such books, or can afford to hire 

 a bookkeeper for the purpose of keep- 

 ing them, .there are none better. 



For some enterprises, however — and 

 it is to these that our present message 

 is addressed — ^we j^ill retain the idea 

 behind double entry bookkeeping, 



CLEVELAND HOTEL BATES FOB 

 S. A. F. CONVENTION. 



August 17 to 19. 



HOLLEKDEN, 



Single room with bath — S8, 88.60, $6. 

 Double room with bath — $6, $6, $7. 

 Twin beds and bath — $Q, $7, $8. 



STATLER. 



Single room with shower bath — $3, $3.60. 



Double room with shower bath — 84.60, |6. 



Single room with tub and shower bath — $3.60, 

 $4, $6 and up. 



Double room with tub and shower bath — $5.60, 

 $6. $7. 



Twin beds and shower bath — $5. 



Twin beds and tub bath— $6.60, $7, $7.60, 

 $8. 



CLEVELAND. 



Single room and bath — $3, $3.60, $4, $4.60, 

 $5, $6. 



Double room and bath — $5, $6.50, $6, $6.60, 

 $7, $9. 



Twis beds and bath — $6, $7, $8, $9. 



Parlor, bedroom and bath— $11 and up for 

 one person. 



Parlor, bedroom and bath — $14 and up for 

 two persons. ;. 



Parlor, two bedrooms and ^aths — $20 and 

 up, three persons. 



Parlor, two bedrooms and baths — $22 and up, 



four persons. 



WINTON. 



Single room and bath — $3 and up. 

 Double room and bath — $5 and up. 



OLKSTED. 



Single room and bath — $2.60. 

 Double room and bath — $5. 



Convention visitors are assured of an 

 abundance of up-to-date hotel accom- 

 modations in the Fifth City hotels. 

 The managers of the above hotels are 

 on speaking terms with local florists 

 and will do their utmost to make every- 

 body comfortable. All the above hotels 

 are but a few minutes' walk from the 

 convention hall. 



Eeservations should be made without 

 delay either direct or to the committee. 



James A. McLaughlin, 

 Committee on Hotels. 

 421 High Avenue, Cleveland, Ohio. 



namely, a system of balances, dollar 

 for dollar, on each side of an account, 

 but endeavor to do it with a few simple 

 books of account. 



After thinking the matter over with 

 the utmost care, we are recommending 

 principles and methods which any mer- 

 chant can apply, which can be embodied 

 merely in two books, the check book 

 and the entry book ruled as a double 

 entry ledger, which will serve the pur- 

 pose of a ledger and a journal. These 

 two books, with files for bills and other 

 papers, will be sufficient for the busi- 

 ness enterprise which we are aiming to 

 reach. 



The entry book or ledger should be 

 divided into five parts: Assets, liabili- 

 ties, income, expenses, journal. 



The merchant will keep these in mind 



while we explain the next step in the- 

 bookkeeping system. 



[To be continued.] 



CLEVELAND CONVENTION. 



Trade Exhibition. 



Applications for reservations of space 

 in the trade exhibition in connection 

 with the Cleveland convention of the 

 S. A. F., August 17 to 19, continue ti^ 

 come in. With a rearrangement of tin 

 aisles as laid out in the original plan, 

 the floor area available for exhibits i;; 

 increased sufficiently to care for all late 

 comers so far, without materially chang 

 ing the departmental arrangement. The 

 following are exhibitors in addition to 

 those previously reported: 



Davis Co., J. W., Terre Haute, Ind. 

 Durable Products Co.. CleTeland, 0. 

 Henry A. Dreer, Inc., Riverton, N. J. 

 Florists' Publicity Service Bureau, Chicago, 

 111. 



Hagenburger, Carl. "West Mentor, O. 

 Kervan Co., New York City. 

 KirchhofF Co., Pembroke, N. T. 

 Newton Floral Co., Newton, Kan. 

 Storrs & Harrison Co., Palnesville, 0. 

 White Co., The, Cleveland, 0. 



Without a doubt, this will be the 

 largest exhibition ever staged at any 

 convention of the society. The attend- 

 ance, too, at the convention promises to 

 be of record character and all who have 

 the interests of the profession at heart 

 should arrange to be in Cleveland dur- 

 ing the days of the convention. 



John Young, Sec'y. 



SUNDAY CLOSINQ SPBEADING. 



July 4 was celebrated by more than 

 fireworks by many florists. The sugges- 

 tion of The Review that the summer 

 would be a good time to institute the 

 6-day week was acted on by a number. 

 In Indianapolis the retail florists have 

 formed an agreement to close on Sunday 

 permanently if the public's cooperation 

 makes it satisfactory. Bertermann Bros. 

 Co. carried a large advertisement in the 

 Star July 3 asking patrons ' cooperation. 

 A. Wiegand Sons Co. closed on Sunday, 

 July 4, it is reported, for the first time 

 in forty-five years. (Clarence B. Greene, 

 of Greene 's Flower Shop, had begun just 

 a month sooner, June 6. 



From Charleston, W. Va., comes the 

 announcement that the Winter Floral 

 Co., at 811 Quarrier street, will close its 

 store on Sunday. Announcing the inno- 

 vation, the company's advertisement in 

 the Charleston daily papers said: "Our 

 employees are entitled to an opportunity 

 of observing Sunday religiously and as 

 a day of rest. Flowers desired for Sun- 

 day will be carefully packed and deliv- 

 ered late Saturday. We respectfully 

 urge your cooperation." 



The announcements of this practice 

 follow so fast that it is likely that be- 

 fore long Sunday closing will be a gen- 

 eral trade rule. 



Shreveport, La. — The Peacock Hat & 

 Flower Shop will open here soon. It in- 

 tends to become a member of the F. 

 T. D. 



Sac City, la.— C. H. HoUied recently 

 purchased four greenhouses in St. Peter, 

 Minn., and will use the material in 

 doubling his capacity here. 



Minneapolis, Minn. — John Taylor and 

 Miss Goldbeck, former employees of 

 Miss Whitted, will take over the 

 Whitted Flower Shop in September and 

 run it under the old name. 



