unsold, value at prime cost, shew the neat of my estate; which compared with my original stock, will shew my profit or loss. Thus it appears, that James Taylor ditto I have in cash I have unsold 20 yards of cloth, at 15s per yard, (the prime cost) Hence, I have cleared 10%. by the sale of 60 yards of cloth, at a profit of 3s. 4d. per yard. By Single Entry I cannot tell what goods are unsold, or my profits or losses by my books only, except when the transactions are but few, as in the above examples. For as the Ledger contains only the accounts of persons dealing on credit, it affords no other knowledge to the owner, than what debts are due to him, and what he owes. But if he wish to know what goods are undisposed of, and what he has gained or lost by the whole, or any part of his dealings, he cannot obtain this knowledge by Single Entry without taking Stock; that is, he must weigh or measure what goods he has unsold; and their value, added to the cash in hand, and the Balance of Debts, will shew the neat of his estate, which, compared with his original stock, will shew his profit or loss. SINGLE ENTRY. Thus Book-keeping, by Single Entry, affords no method of ascertaining the state of a merchant's affairs, without taking Stock; a task which is very liable to error, and which, at best, affords nc adequate means of preventing embezzlement, or detecting fraud but the objects are attained by Double Entry, perhaps as effec tually as human ingenuity can devise. DOUBLE ENTRY. In Double Entry, three principal books are required; the Waste-Book, the Journal, and the Ledger. 1. WASTE-BOOK. In this book must be daily written whatever occurs in the way of trade; buying, selling, receiving, delivering, bargaining, shipping, &c. without omission of any thing either bought, sold, or borrowed, &c. The Waste-book is ruled with one marginal line, and three lines for pounds, shillings, and pence; and the day of the month, and the year of our Lord, is inserted in the middle of the page. In this book any one may write, and on occasion any thing may be blotted out, if not well entered, or any error be made. 2. JOURNAL. Into this book every article is brought out of the Waste-Book; but, in other terms, in a better style, and in a fairer hand, without any alteration of ciphers or figures; and every parcel, one after another, are promiscuously set without intermission, to make the book, or several entries of it, of more credit and validity, in case of any law dispute, or any other controversy that may happen between Merchant and Merchant. In this book you are to distinguish the Debtor and Creditor, (or, in other terms, the Debts and Credits.) And to this book you must have recourse for the particulars of an account, which in the Ledger are entered in one Îine. In this book also, the day of the month is usually placed in the middle of the page; it is ruled with double marginal lines, for reference to the Ledger, and with three lines for l. s. d. as the Waste-Book. 3. Ledger. The From the Journal, or Day-Book, all matters or things are posted into the Ledger, which by the Spaniards is called El Libro Grande, as being the biggest book, or chief of accounts. left-hand side of this book is called the Debtor, and the right the Creditor side; and the Numbers or Folios on each side must be alike, as 45 Debtor, and also 45 Creditor. The day of the month (in this book) is set in a narrower column on the left hand, and the month on the left of that; but where I kept books, the rim ber in the narrow column referred to the Journal page, and the. month and day were placed in the broad column, to the right of that; and at the head of each folio is the name of the place of residence, and the year of our Lord; as thus: But the example of these several books hereafter following will make the foregoing hints of them much more intelligible. The following is a general rule, upon which most of the entries in book-keeping, depend, viz. 2 All things Received, or the Receivers, are Debtors to the Waste-book Entry. London, March 1, 1813 Bought of William Wilkins, of Norton Falgate, 120 yards of white sarcenet, at 2s. 3d. per yard, to pay in two months The Journal Entry of the same. Wrought silk, debtor to William Wilkins, £ 13 10 for 120 yards of white sarcenet, at 2s. 3d. per yard, to pay in two months In this example the wrought silks are received, and therefore debtor to William Wilkins the deli verer. October 1. Sold Henry Harrington, 246lb. nett of Indigo, at 6s. 6d. per lb. to pay in three months Journal Entry. 3 Henry Harrington Dr. to Indigo, for 2461b. nett, at 6s. 6d per. lb. to pay in three months £ s. d. 1310 79 19 79 19 (Once more.) Waste-book Entry. Bought of George Goodinch, sen. viz. Cheshire cheese 4304 C. at 23s. 4d. per C. Butter, 50 firkins, qt. nett 2800lb. at 3d. per lb. To pay in 6 months Journal Entry. £ .id. .... £502 5 35 0 537 5 £ 7 10 0 Journal Entry of the last. James Jenkins Debtor to sundry Accounts, viz. From these few examples of entry, it may be observed, that an experienced person in accounts, and a good writer, may keep a Journal without a Waste-book, or a Waste-book without a Journal, since they both import one and the same thing, though they differ a little in words, or expressing. But, however, I shall give methods of keeping each as far as room will give me leave. An Inventory of all the Money, Goods, and Debts, belonging to me A. B. of London, Merchant. 1 shall make one page answer for Waste-book and Journal Entries, to save room, and also to have both methods of entry under eye, to make them more intelligibly useful to the reader, he hereby not being obliged to turn over the leaf to see their differance of entry. |