BOOK-KEEPING. 



I'ng:) exliibite thtfe improTementa. Here tlie wade book is di- 

 vided into a luimhei- of fubfidiary books, each of which is 

 the regifter of its peculiar portion or department of buliiiefs ; 

 and each book ii divided into m'>nthly tranfaftions. By 

 thefe nienns the journal is greatly (hortened and fimplificd ; 

 but the principal advantage of fiich arrangement conlifts in 

 polling the books ; for here a whole month's calh, bills, 

 commiffion, infurance, and interetl, are each carried in one 

 fum, or entry, from the journal to the ledger. This me- 

 thod, by which repetitions are avoided, and labour confi- 

 dcrably diminiflied, is now generally adopted in our princi- 

 pal mercantile hjults." 



PuiNciPLEs or Book-keeping tsoth by Single 



. AND DouliLE EnTKY. 



Single Entry chiefly records tranfaftions on credit, and 

 for this piirpofe two books are required, called the Day 

 Book and the Ledger. 



The day hcok begins with an account of the owner's 

 property, debts, &c. ; then follows a detail of the occur- 

 rences of tr 'de, fet down in the Older of time in which they 



ake 



place. 



The naine of the perfon, or cuHomer, is firft written with 

 the term Dr. or Cr. annexed, according as he becomes 

 debtor or cr.;ditor by the tranfaiilion ; and this may be di- 

 ftingnilhed by the following general rule : 



" The ptrfon who receives is Dr. and the perfon who 

 gives or parts with any thirg is Cr." 



Thus, if I fell goods on credit, I enter A. B. the buyer, 

 Dr. to the goods, fpecifying their quantity and value. 



If I buy goods on credit, I enter C. D. the feller, Cr. by 

 the goods, fpecifying their quantity and value. 



By the fame rule, if I pay money, the perfon to whom I 

 pay it is made Dr. to cafh for the amount ; and if I receive 

 money, the perfon from whom 1 receive it, is made Cr. by 

 calh, for the amount. 



And if debts be contradled or difcharged by any other 

 means, the fame rule is obferved ; the perfon, who becomes 

 indebted to me, is entered Dr. and the perfon to whom I 



become indebted, Cr Alfo, the perfon whofe debt I dif- 



charge is made Dr. ; and he that difcharges a debt due by 

 me, is Cr. 



The ledger collefls together the difperfcd accounts of 

 each perfon in the day book, and places the Drs. ar.d Crs. 

 upon oppofite pages ot the fame folio. The perfon's name 

 is written in large charafters as a title : on the left hand, or 

 firft page, he is ftyled Dr. j and on the oppofite, or right 

 hand page, Cr. On thefe pages the traufatlions are en- 



tered as they (land Brs. or Cr.:. in rtie day-book. For in. 

 Ilance, A. B. is debited for whatever he has bought of mc; 

 and on the oppofite page, he is credited for the paymeiits'he 

 has made. In Ihort, whatever I have given hlni, is on the 

 Dr. fide, and what he has given- me on the Cr. ; and the 

 dilTererice between the Dr. and Cr. fides is called the " ba- 

 lance." 



yijiiort Specimen of Single Entry. 

 Januaiy i, 1805. 

 Suppofe John Smith owes me lool. which is my folc pro- 

 perty, or the net of my ellate ; and fnppofe that on the 2d 

 of January, I buy of him 8o yards of clotii, at 15s. per yard ; 

 on the 3d, I fell James Taylor, on credit, 60 yards of the 

 faid cloth at iSs. 4d. per yard; and on the 4th, James 

 Taylor pays me in part 40I. Required the day book and 

 ledger of the foregoing tranlaftions, accwding to finglc en- 

 try, and alfo the profit or lofs. 



Day Booi. 



or 



Jan. I, 1805.— 



Jiiim Smith, Dr. 

 To Balance from Ledger ^ 



John Smith, Cr. 



By Cloth for 80 yards, at 15s. per yd 



■3 



James Taylor, Dr. 

 To Cloth for 60 yds, at iSs. 4d. peryd, 



4 



J&mes Taylor, Cr. 

 By Calh received in part 



£■ 



100 



60 



55 



40 



To pojl the foregoing Accounts Into the Ledger. 



The ledger being ruled in folio form, according to the 

 following fpecimen, with the left fide for Dr. and the right 

 fide for Cr. alfo a margin for the date, and near the money 

 columns, one for reference to the day book, proceed as 

 follows : 



Open an account for John Smith, and debit him, on the 

 left hand page, for tool. ; and for the 2d day's tranfaftion, 

 credit him for 60I. on the oppofite page. 



For the 3d day, open an account for James Taylor, de- 

 biting him for ijjl. ; and for the 4th day, credit him for 40I. 



When every tranfaftion is thus polled, each account is 

 balancefi, by fubtrafting the lefs fum or fide from the greater, 

 and then putting the difference or balance under the fraaller 

 fide, by which both fums are made equal. 



LEDGER BY SINGLE ENTRY. 



Jan. 1. 



John Smith Dr. 



To Account from Ledger A 



Jan. 3. 



James Taylor Dr. 



To Cloth for 60 yards, at 18s. 4d.') j 

 per yard - - - J | 



£■ 



ICO 



s.d. 



o o 



o o 



Contra. Cr. 



Jan. 2. By Ck)th for 80 yards, at 153. peryd. 

 By Balance .... 



Jan. 4. 



Contra. Cr 



By Calli received in part - • 

 By Balance ...... 



55 



0| 



O; O! 



By the above ledger it appears that the balances are in 

 my favour ; and if thefe be added to the cafh I have in hand, 

 and the value of the goods unfold, the fiuu ii tke net of my 



edate ; which, compared with my original flock, fhews my 

 proiit or lofs. Thus it appears that 



B ^ 



Joha 



