£695 12 6

Observations on the preceding Accounts.-The entries in the Waste Book need no explanation. Every transaction is recorded as it takes place, in a brief, but explicit manner, and the amount set forward in the column opposite. In actua business of any extent, the Waste Book, so termed, is merely a supplement to a number of other similar books, such as the Cash-book, Invoice-book, Bill-book, &c., the accounts in which are brought to a total from time to time, and the sums posted into the Journal, and thence into the proper opening of the Ledger, as it would occasion needless trouble and take up too much space if all the ordinary items of receipt and disbursement were transcribed singly into the principal books. The few entries in the accompanying specimen of a Waste Book are framed so as to afford as much variety as possible within a small compass. A paper resembling this, but seldom containing so many transactions, is placed before officers when undergoing an examination in Book-keeping. They are usually furnished with ruled sheets of a Journal and Ledger pattern, into which they are required to post the different entries, and then to balance and close the accounts according to the recognised method. What is sought at these examinations is not so much an exhibiton of skill on the part of the candidate in dealing with complex cases, as the eliciting some evidence that he really understands the leading principles of the art of Book-keeping by double entry. If, therefore, any difficulty should arise which is likely to prevent a candidate from carrying the whole of the given entries through the Journal and Ledger, and showing the final balance, it will be his best course to neglect a portion of the Waste Book, and bring some of the work to a proper conclusion, so that it may be seen that he is at least not ignorant of the theory of the subject.

Journal Entries. (1.)-The first step in posting the Waste Book into the Journal, is to make the various items of property Dr. to the merchant himself, (or rather to the account which immediately represents his interests,) under the general heading of « Sundries Dr. to Stock,” placing the total amount in the outer or Cr. column, and the particulars one by one in the Dr. column. It will be obvious that there is a double reading of each of the Journal entries, one in connection

When the Dr. and Cr. sides are equal, it is not necessary to insert the amounts.

with the Dr., and the other with the Cr. column of amounts. Thus, Sundries Dr. to Stock" is, as regards the outer money column, equivalent to "Stock Cr. by Sundries." The details which make up the "Sundries," are then specified separately, the amount of each being inserted in the column of debits. This plan

is adopted in order that the Ledger may be the more easily and correctly posted on reference to the Journal.*

(2.) The second Journal post always consists of a statement of the merchant's debts or liabilities, under the head of « Stock Dr. to Sundries; the particulars are then enumerated below, and the amounts set forward in the column of credits. Stock being debtor to several accounts in the sum of £983 5s. Od., these accounts are made Cr. by Stock according to their respective claims.

(3.)—January 2nd. Coffee is sold for ready money. "Cash" receives and is therefore made Dr. "Coffee" delivers or parts with goods, and is, therefore, credited by an equal amount. The entry in the Cr. column is read, «50 cwt. of coffee at 27/, Cr. by Cash."

"Cash "

(4.)-January 3rd. Perrin & Sons pay the sum owing by them. receives and is debited, while « Perrin & Sons," are acquitted of the debt against them in the books. The creditor entry is read, « Perrin & Sons Cr. by Cash." (5.)-Same date. A bill having become due is paid. «Bills Payable," which up to this time stood Cr. by the amount is now debited in the same, and « Cash " is credited.

(6.)—January 4th. An acceptance in the possession of the firm is met by the person who has given it. "Cash" receives and is debited. "Bills Receivable " becomes acquitted of that item, and is credited.

(7.)—Same date. Sugar is purchased and a bill given for the amount. "Sugar," the receiving account, is made Dr. to «Bills Payable,” the transmitting account, as a bill is delivered. It is not necessary to open a separate account under the name of the vendor, as he appears in the books merely as the holder of a bill. (8.)-January 6th. Moss & Co. are paid a portion of the sum owing to them. Their account is debited, and « Cash" credited with what it delivers. (9.)-Same date. Treated as No. 5.

(10.)—January 7th. Tallow is received while Tea is parted with. The former is made Dr. to the latter, on the principle, that a receiving account is always Dr., and an imparting account always Cr. to and by one another respectively.

(11.)—January 8th. Sugar is sold to Peter Hicks, who pays part of the amount in Cash and the remainder by a bill. In consequence of this mode of payment two Journal posts are required; in the first of which the buyer is made Dr. to the Sugar sold, and in the second of which Sundries is made Dr. to him. The Sundries here consist of the money and the bill received from him.

(12.)—January 9th. Wine is bought for ready money. The goods, therefore, are Dr. to Cash."

(13.)—Same date. Interest is received on money invested in the Funds. This is a direct accession of property, or a gain, for which no equivalent is returned. "Cash" is debited, and "Profit and Loss" credited, accordingly. The amount might be placed directly to the credit of "Stock" if the merchant thought fit,

As there is no Ledger account under the head of "Sundries" every entry in which that term is represented as Dr. must be read as "So and so Cr. by Sundries," and the aggregate amount placed to the credit of the transmitting account.