VERY person having occasion to keep an account with others, is greatly benefited by a knowledge of book-keeping. There are two systems of keeping books in use: one known as SINGLE ENTRY; the other, as DOUBLE ENTRY. In this chapter it is the design to give simply an outline of Single Entry, a method of keeping books which answers every purpose with the majority of people, besides being a system so plain and simple as to be readily comprehended. The books used in Single Entry are generally a Day-book, in which are recorded each day's sale of goods, or labor performed, and money, service, or goods received, and a Ledger, in which the sum total of each transaction is put in its proper place, so arranged as to show, on a brief examination, how the account stands. These books, of different sizes, may be found at the bookstores; though, in case of necessity, they can easily be made with a few sheets of foolscap paper, ruled as hereafter shown. Persons having many dealings with customers should use a Daybook, in which is written each transaction; these being afterwards transferred to the Ledger. Where, however, accounts are few, the account may be made complete in the Ledger, as shown in several forms on the following page. In making charges in a book and giving credit, it is necessary to keep clearly in mind whether the person of whom we write gives or receives. If the individual gives he is a creditor, which is designated by the abbreviation, Cr. If the person receives, he is a Debtor, the sign for which is Dr. In the passage from the creditor to the debtor of any article, we get the word "To," with which the creditor commences the account. In the reception by a debtor of an article from a creditor, we get the word "By." The following forms show the manner of keeping an account by Arthur Williams, a merchant, with Chas. B. Strong, a farmer, who buys goods and settles his bills, usually, at the end of every month; in the meantime taking to the store various kinds of produce, for which the merchant gives credit according to the market value. Mr. Williams keeps two books, a Day-book and Ledger. July 10 To D14 19 Chas. B. Strong, Dr. 12 50 Remarks Concerning the Ledger. 12 50 S will be seen by the example in the Ledger, the first column contains months; second, day of the month; third, "To D" means To Day-book. In the fourth column, the 14, 38, and 80 refer to the No. of the page in the Day-book which by reference fully explains the transaction. The fifth and sixth columns contain the totals of each purchase or sale as recorded in the Day-book. The Ledger should have an index in the first part which, under the head of S, will contain "Strong, Chas. B.," opposite which is the number 66, showing that Strong's account may be found on page 66 of the Ledger. When the account is balanced and closed, a sloping line is drawn down the space containing the least writing and double lines are made beneath the totals, indicating that the account is "closed." The Day-Book. In the foregoing example only Chas. B. Strong's account is shown on a page of the Day-book. This is, however, a long book usually, each page being of sufficient length to contain the accounts of several customers. At the top of each page, the day of the week, day of the month, and year, should always be written. If the day's entries commence in the middle of the page, write the day of the week and day of the month distinctly above the first, and thus at the beginning of each day's entries. When the total of the entry on the Day-book is transferred to the Ledger, the No. of the page in the Ledger where the account is kept, is placed beside the entry in the Day-book, which shows that the account has been "posted" to the Ledger. FORMS OF ACCOUNTS ACCORDING TO ESTABLISHED RULES OF BOOK-KEEPING. 199 Importance of Book-Keeping. Farmer's Account with the Merchant.-Chas. B. Strong, having but few accounts, requires only the Ledger in which to keep them. He records his transactions with the merchant as follows: TRANGE as it may seem, there are but very few people who can keep the simplest form of account correctly. Most inIdividuals are evidently deterred from learning correct forms, from the supposition that the art of book-keeping is difficult to master. The fact is, however, all the bookkeeping necessary to be understood by people having few accounts, is very easily learned, as will be seen by studying, for a little time, the accompanying forms. The importance of this knowledge cannot be over-estimated. THE MERCHANT who is successful in business, keeps his accounts in a form so condensed and clear, that his assets and liabilities can be determined in a few minutes of examination. THE FARMER who would be prosperous keeps his books in such a manner, that he can tell at a glance what product is most profitable to raise, what he owes, and what is due him from any source. THE MECHANIC who keeps himself free from litigation, and conducts his business successfully, has his dealings all clearly expressed in his accounts, and settles with his customers, if possible, once a month. THE TREASURER of an association, whose accounts are clear, explicit, and correct, is justly appreciated for the evident honesty of the financial exhibit, and is selected for other places of responsibility and trust. THE HOUSEKEEPER who avoids misunderstandings with her servants, has her account written so clearly that no mistake is made, and no ill feeling is thus engendered in her settlements. ALL PERSONS, in short, who have occasion to keep accounts with others, should have a plain condensed form, which will show at a glance how the account stands. The accompanying forms show the correct methods of keeping accounts in the Ledger, according to the established principles of book-keeping by Single Entry. Farmer's Account with Hired Man.-A Memorandum in the back part of the Ledger should state the contract between the farmer and hired man. The Ledger shows how the account stands. Farmer's Account with Crops.-That the farmer may know the profit on any of his crops, he may keep an account as follows. In fike manner, an account may be kept with any enterprise. Blacksmith's Account with Farmer where Day-book and Ledger are Kept. When the account is not settled at the end of the month, it may be "closed," and the balance carried over into the next month, as follows: Book-Keeping for Housekeepers.-The following form of account, with the servant, is applicable to all domestic affairs; such as accounts with grocerymen, boarders, etc. Book-Keeping for Treasurers and Others.-Treasurers of Societies are shown the correct method of keeping their accounts in the following form: agreement is virtually a contract by which individuals, singly or collectively, agree to perform certain duties within a specified time. It is of much importance, in all matters upon which may arise a difference of opinion or misunderstanding, that contracts be reduced very explicitly to writing, thereby frequently saving the parties to the contract a long and expensive law-suit. Agreements should show that they are made for a lawful consideration, else they are void in law. It is well to have a written agreement signed by a witness, though the witness need not know the contents of the document. While a signature, or mark, written with a pencil, if proven by witnesses, is good in law, it is always safest to execute the contract with pen and ink. A discovery of fraud, or misrepresentation by one party to the agreement, or changing of the date, renders the contract void. Every agreement should state most distinctly the time within which its conditions are to be complied with. Copies of an agreement should always be prepared in duplicate, and each party to the agree ment should retain a copy. General Form THIS AGREEMENT, made the first day of August, 18-, between Isaac E. Hill, of Tarkio, county of Atchison, State of Missouri, of the first part, and Vardemon Blevins, of Fairfax, Mo., of the second part: WITNESSETH, that the said Isaac E. Hill, in consideration of the agreement of the party of the second part, hereinafter contained, con of Agreement. tracts and agrees to and with the said Vardemon Blevins, that he will deliver, in good and marketable condition, at the village of Corning, Mo., during the month of September, of this year, one hundred tone of prairie hay, in the following lots, and on the following specified terms; namely, twenty-five tons by the seventh of September, twentyAve tons additional by the fourteenth of the month, twenty-five tons |