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real account*, which arc collected, when the books are balanced.Sometimes it is found convenient to open several SubsidiaryAccounts, in order to shorten and methodise that of protit andlo:s. These contain certain articles of gain or loss, which may bereduced under distinct heads. They are in effect so many partsof the profit and loss account, and their balances are entered on theproper side ot that account when the books are closed. Thus, theInterest account contains on the Dr. sums paid or incurred for in-terest: and on the Cr. sums received, or become due for it.Commission account contains on the Cr. articles of gain receivedor owing for trouble in transacting business for others. There areseldom any entries on the Dr. Charges of merchandise containson the Dr. all charges paid or incurred on the business, which donot belong to anv particular account, as shop-rent, public burdensfor trade, clerks wages, postages, and the like. If any of theseshould afterward* be charged to some other account, the sum socharged is entered on the Cr. Account of proper expences con-tains outlie Dr. money or any thing else, withdrawn from the tradefor our private use. There are seldom any entries on the Cr.The amount of this account, as well as the former, is not properlyloss ; but as it has the same effect in diminishing the stock, it isplaced in the same manner to the Dr. of profit and loss. Loss bybad debts contains on the Dr. •-'ucli debts as we reckon desperate ;and on the Cr. any of these which may happen to be unexpectedlyr 'covered. Account of abatements contains on (he Dr. discountsa’lowed by us on payments received, on the Cr. discounts allowedto us on pavmentmade. It is particularly useful in retail business,where discounts arc often given, to shew how much they amountto. Insurance account contains on the Cr. premiums received formaking insurances; and, on the Dr. losses sustained on the same;there mav he several accounts of this kind. Insurances againstsea-hazard and against lire are the most common. The balances hewsthe gain or loss which arises from being concerned in insurance.Every simple transaction in business belongs to two accounts, andmust be entered on the Dr. of the one and on the Cr. of the other.11 ence the distinguishing title of this method, by double entry.Thus, when apersoh becomes indebted to us, the article he owesmust be entered on the Dr. of his account; and, if it lie for moneypaid him,’it is also entered on the Cr. of cash ; if for goods sold,it is entered on the Cr. of the account of goods ; if for any thingdelivered him by another person at our desire, it is entered on tiieCr. of the deliverer’s account. Thus, in whatever wav the debtarises, it is entered on the Cr. of some other acc ount, as well ason tin: Dr. of file person’s account who owes it. In like mannerwhen we become indebted to any person, the article we owe mustlie entered on theCr. ot his account. If it he for money received,it is also entered on the Dr. cash; if for goods bought, it is en-tered on the Dr. ot the account ot goods ; it for any thing deliver-ed to another person at our desire, it is entered on the Dr. ofthe receiver’s account; and if it be in consequence of a losingbargain, it is entered on the Dr. ot profit and loss, in like manner,every article in any account, whether personal, real, or lictiiious,corresponds to some other article on the opposite of a differentaccount. The same sum is entered on the Dr. of one accountand on the Cr. of the other ; and it follows from this, that, If allthe accounts in tile ledger be added, the amount of the sums ofthe Dr. will be equal to those of the Cr. From what has beensaid, it is evident that the terms debtor and creditor, are nothingelse but marks or characteristics slumped upon the different partsof transactions in the journal, expressing the relation of these partsto one another, and shewing to which side of llu-ir respectiveaccounts in the ledger they belong. In posting the ledger,First, look for the Dr, of the journal-post in the index, umWtheproper letter, which directs to thefoho-of the ledger where theaccount is, if it be already opened: if not, you must allot a spacefor it, write the title, and enter it in the index. Then enter it onthe left-hand page ot the account under the title of the former ar-ticle, by writing die date on the margin, and the name of thecreditor on the line, with the word, To, preli.xed, and a short nar-ration of tiie transaction annexed, and inserting the sum in themoney-column, and tiie quantity, it it Ire an account of goods, inthe inner column. Then turn to the account ot the Cr. of thejournal post, and enter the article in tiie right-hand page, pre-fixing tiie word, By, to the name of the Dr. This being done,turn to the journal) and mark on the margin the number of tiiefolios to which the article is posted. The figures which point out
the reference to the Dr. and Cr. folios should be separated by aline ; for example, If the. Dr. entry be on the first folio, and tneCr. entry on tiie eighth, the reference is marked -These figuresshew how far the posting is advanced, and are Useful in comp: r ngthe books. When there are several Drs. in a journal pest, theCr.folio number need be but once entered, viz. under Die lowest Dr.number ; and when there arc several Crs. write the Dr. folionumber above the upper Cr. number only. In complex post--,turn to the several Drs. or Crs. in their order, and enter the ar-ticle* accordinglo the foregoing directions ; placing the sums b: -longing to each in the money-column, against tiie respectiveentries. An article in the ledger is generally comprehended inone line. The narration should be as full as can be contained inthat limit. If it cannot lie narrated completely, the journal isreferred to for further particulars, by writing per Journal, (or p.J.) either after an incomplete narration, or immediately alter Dr.or Cr. when there, is no room for a proper narration. In complexposts, there can seldom lie any narration annexed to Hie singleDr. or the single Cr. The entry is generally, To Sundries per J.or, By Sundries per J. If the sense of tin- whole article can in*narrated, it should be done ; but it is improper to narrate the firstor any other part of the article, and omit the others. When tiiespace allotted for an account in the ledger is filled up, the accountmust lie transported to another folio. For this purpose add tiiecolumns on both sides, and w rite against the sum Transferred to
folio-, inserting the number of the folio where the new account
is opened, in the reference-column, or on the line, if no reference-column be used. Then, after titling the new account, and en-tering tiie number of the folio in the index, write on Die Dr. To
amount, brought from folio-, inserting the number of the folio
where the old account was ; and on the Cr. By amount, brought
from folio-; and place the sums, and quantities, if any, in the
proper columns. When either side of an account is full, botli sidesshould be transported, and diagonal lines drawn, to fill up the vacantspace of the side which requires it. The books should be writtenup as frequently as can be done conveniently; so that the journalmayykeep pace nearly with the waste-book, and tiie ledger withthe journal. Each hook should be carefully revised, and com-pared with the book from which it is posted. In comparing the.ledger, observe the following directions. Begin witlr the firstjournal post, and turn to the folio of the ledger where the Dr. isentered, which you arc directed to by tiie marginal reference, andcompare tiie date, entry, and sum. If they correspond, it is well;ii not, the ledger must lie altered till it correspond with thejournal. Then place a dot before the reference-figure in thejournal, and a mark, thus before the sum in the ledger. Pro-ceed in the same manner to compare the Cr.. of the journal post,and all the following posts in their order. The dots in the journalshew how far the comparison is advanced, and the marks in theledger shew what articles are compared. The sums of accountstransported should be left blank till the books be compared ; asan error in any article will occasion an alteration in the sum. Incorrecting errors in the ledger, observe the following rules: I.If an article be omitted, do not attempt to interline it at the placewhere it should have been ; but insert it under the last articlewhen you discover Ur: omission, and mark across +. •against it onthe margin, and another at the place where it should have been.II. If you discover a mistake immediately when committed, cor-rect it without cancelling any thing, as in this example : To Cash,say, To James Spencer received to account. Ill. If you havewritten a line entirely wrong, or iu a wrong place, write the wordError at the end, prefix a cross, and omit or cancel the sum.IV. Caucel errors, by drawing a line lightly through them, so thatthe old writing may still he legible ; by which it will be evident,that the book has not been vitiated for a fraudulent purpose. Thesame method should be followed in correcting errors in the journal.When the comparison of the hooks is finished, glance over theledger, to observe if the mark of comparison be affixed to everyarticle. Because the whole sum of the Dr. side of the ledgershould be equal to the whole sum of the Cr. it is proper to try ifthey correspond. For this purpose you may add the Dr. of everyaccount, except such as are already balanced, placing thesums in an inner column, and extending them at the end ofone or more folios, as you find most convenient, to’the outercolumn : and, as you go along, add the Cr. in the same man-ner. If the sum total of both sides be equal, it gives a pre-sumption