BOOK-KEEPING.
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journal, anil according to the journal form *, and as soon as anyarticle is entered in (In' jetirjuil, turn to the same article inJliewaste-book, and directly against it in the margin write die num-ber of the folio where it stands in the journal. As to the form yffentering in the journal, having written the date in the same manneras in the waste-hook, observe the two following articles:
.1. In a simple post, viz. in which ontv one debtor ami one cre-ditor are concerned, let the l)r. be expressly mentioned, then the(Jr. and lastly the sum, ail in one line ; below which insert thenarrative, or reason of the entry, in one or more lines, in a fullami particular manner, so that the whole of the transaction mayeasily be understood.
2. 1 n a complex post, let the sundry Drs. and Crs. be expressed inthe liixl line by the word Sundries, and the rest of the line filledup as in tile former case. After which, let the several Dr<. or(. is. be particularly mentioned, each in a line bv itself, with theirrespective sums adjoined to them ; which are to be added up, andtheir total carried to the money columns. In this case observealso that, in mentioning the several Drs. or Crs. the Crs. takethe word, To, before them, blit the Drs. are expressed simply,without any word prefixed.
Observe also that in cases w here personal and real Drs, or Crs. arewanting, the defect must be supplied by fictitious or subsidiary ones,according to your judgement. In complex cases, the several Drs. orCts. are to be made out from the preceding rules jointly taken.Thu fictitious Drs. ami Crs. that are mostly used, are l. Stock,which is made Cr. for the effects in the inventors', and Dr. for thedebts in it ; 2. Profit and loss, which is made Dr. for every stundelivered for which nothing is expected as an equivalent, and forlosses upon bargains or goods: amt Cr. for the contrary sums, vizifor all gains upon goods, &c. 3. Voyage to such a place, which
is made Dr. for tilings sent as an adventure, and all expellees uponthem ; and Cr. for their nett proceeds, besides these, there areseveral others, which occur in the course of trade.
In the ledger the several articles of each account are collectedfrom the diitevent pages of the journal through which they arescattered, and disposed all in one place appointed for them ; thedebtor parts of the accounts being placed on one side of the folio,and the creditor parts of the same accounts on the other side of thesame folio, and directly facing the former parts, by which dispo-sition all the transactions relating to each account appear at oneview, and in one place. From the other books then the ledgerdiffers very considerably: each folio or page of it is divided in themiddle, from top to bottom, into two equal spaces or sides, theleft-hand side receiving the debtor articles, and the right side thecreditor articles of the accounts; being titled at the top, Dr. andDr. respectively; with the name or title of the account in themiddle between, and upon a line with, the said titles of Dr. andCr. The right-hand margin of each side is ruled into three co-lumns for money, aiul one for the figures expressing the folioswhere the same articles stand on the otlier side of the folio of someother accounts ; and on the left-hand margin is formed a columnfor the dates ot the articled The ledger bath belonging to it anIndex or Alphabet , in which the titles of the accounts are enteredunder their initial letters, with the figures of the pages in whichtfiey stand ; by means of which they are readily found. The dif-ference between the sums of the 'Dr. and Cr. side is called theBalance. Accounts in the ledger are of three kinds, personal,real, and fictitious.
I. Personal Accounts. It is necessary to open an accountfor every person or company with whom there are any dealingson credit. At opening the'books, if they be indebted to theowner, the debt is entered on the Dr. ; but, if he be indebted tothem, it is entered on the Cr. During the course of the business,goods sold on trust, money paid, and every thing for which thevare accountable to him, is entered on the Dr.; but goods boughton trust, money received, and everv thing for which ho is ac-countable to them, is entered on the Cr. The balance shewshow much they owe him, when the Dr. side is greater ; and howmuch he owes them, when the CT. side is greater.
II. Real Accounts. By this we understand accounts ofproperty ot whatever kind, such as ready monev, goods, houses,lands, ships, shares in public companies, and the like. 'Hie ac-
count of ready money is intitleil Cn»h. Du the Dr. side, themoney on hand at opening the books is entered, and afterwardsevery article of money received. On the Cr. side, there is en-tered every article ot money paid out ; and the balance shewshow much ought to be on hand. The sum of the Dr. side of thisaccount is'always greater than that of the Cr. side. Accounts ofgoods are generally ruled with inner columns for entering thequantities. When the books are opened, the goods on hand areentered ou tho l)r. side of the respective accounts ; the ‘ -s
being placed in the inner, and the values in the outer column.Goods bought arc entered in the same manner, and goods sold areentered on the Cr. side ; the quantities and values being placed inthe proper columns. Charges laid out on goods are entered onthe Dr. side ; and, when an incidental advantage arises from them,such as the public bounty, it is entered on the Cr. If the sums ofthe inner columns on tlie opposite sides be equal, it shews that thegoods art* all sold, and then the balance of tin- money-columnsshews the gain or loss. If the Cr. side he greater, it is gain ; iftlie Dr. side be greater, it is loss. If the sum of the inner co-lumn be greater on tlie Dr. side; it shews that part of the goodsare on hand ; and their value must be added to the sum of the Cr.side, in order to determine the gain or loss. If there be two or morekinds of the same sort of goods, they may be entered in the sameaccount, allowing as many inner columns as there are kinds, andentering tlie quantities of eacli kind in tlie inner column reservedfor it. This method exhibits (he gain or loss on tlie whole goods;but docs not shew how much of it arises from'each kind. Or, aseparate account may be opened for eac h kind, distinguishing thetitles by the qualities, or by some other mark. Thus, one ac-count may be kept for line linen, another for coarse linen ; Ac.and thus (lie gain or loss on each kind, will be seen. V lien thereare more kimls than can be conveniently introduced in the sameaccount, they may be divided into several classes, each class be-ing placed in a separate account ; and the particular kinds dis-tinguished in inner columns. Thus the account of line linen maylie divided into several columns, for different kinds, distinguishedby the number of threads in tlie breadth, or by any oilier conve-nient character. Accounts of ships contain on the Dr. the valueot the ship w hen the books are opened, and all expences laid outthereon; on the Gr. all freights received. In like manner, ac-counts of houses or lands have the value of the subject, and ail re-pairs, or otlier charges, entered on the Dr. and all rents or otherprofits received on the Gr. If tlie subject be sold ill whole or inpari, the sale is entered on the Cr. Ami the balance, after valuingthe subject (if any) on hand, shews the gain or loss. Accounts ofproperty in the public funds, or shares in companies, public orprivate, contain the value, or money paid in, on the Dr. and thedividends received on the Cr. and are balanced as other real ac-counts. Some persons open accounts lor household furniture,plate, jew els, books, or the like. The entries on these accountsare made in the same manner. In general, real accounts containthe value of the property, and all charges, on the Dr, and the salesand other returns on the Gr. When the accountis to be balanced,it any property remain, the value thereof is placed on the Cr. ;and then the balance shews the loss or gain, according as the Dr.or Gr. side is greatest.
III. Fictitious Accounts which are Stock, Profit, andLoss, and their subsidiary accounts. The Stock account con-tains on the Dr. the amount of the debts which the owner oweswhen the books are opened ; and on the Cr. the amount of readymoney, goods, debts, and property of every kind belonging tohim ; therefore the balance shews what his nett stock is : or, incase of bankruptcy, how much his debts exceed his effects.There is nothing further entered on this account till the books arebalanced : and, then if the business has yielded profit, the nett gainis entered on the Cr. if it has been unsuccessful fhe nett lossis entered on tin* Dr. : after which the balance shews the nettstock at the time the books are closed. The Profit and Lossaccount contains every article of gain on the Cr. and every ar-ticle of loss on the Dr. The balance shews the i«rtt gam orloss, and is transferred to tlie proper side of the stock-account, asmentioned above. This account is partly composed of articlesthat occur while tlie books are running. For example, legaciesreceived are entered on the Cr. goods destroyed on the Dr. Therest of tlie articles are those of gain and loss, arising from the
1 real