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The Bonding Register is ruled, showing the numbers of the casks, their original content, the amount originally entered in each, the strength of the spirit, and the number of gallons in the casks at proof. In addition to these particulars a description of the casks and where they are lying should be added. The different casks in use are plain wood, treated wood, and sherry wood. The example given above shows the purchase brought from the example given in the Invoice Day Book, but showing the details of each cask as taken from the actual invoice. When the goods are sold or transferred to the merchant's own Bond, the particulars of these are entered under the columns "Sold or Transferred," with the date and the folio either of the Day Book in case of a sale, or of the Bond Book if transferred to Bond. As in some cases the goods may be sold without being transferred to another name in the Excise books, or without being cleared, a further column is added to show the date when the goods are actually transferred to another name, to the merchant's own Bond, or the date on which duty is paid. As in many cases the goods lie for several years before being used, it is useful to have a column to show the stock-taking prices at various dates, a small sum being in some cases added each year to cover Bond rent and interest. Where the goods are transferred to the merchant's own Bond the particulars are entered in the Bond Book, with the further additions of the regauged content, which is supplied by the Excise authorities when the casks go into the Bond.

For the merchant's own Bond either one book may be kept, different parts of it being devoted to different accounts of wines and spirits, or a separate book may be kept for each class. In the examples given only one book is kept, and different parts of the book are kept for different kinds of liquor:

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This example shows an entry corresponding to that in the Bonding Register, when the goods are brought into the merchant's own Bond. The heading "Register and Rotation" refers to the register kept by the Excise authorities, and to the number of the operation for the year. On entering the Bond the casks are regauged, and the content actually in them when bonded is entered under " Regauged content." The column "Obscuration is of use only in cases of foreign spirits, it representing an addition to the strength owing to the adding of sweetening matter. The strength of British spirits is ascertained by the hydrometer, the standard strength on which duty is charged being known as "proof."

There are various operations that the spirits may go through after being entered under bond. They may either be sold to customers and cleared, or sold and left in the merchant's name, or they may be vatted for blending purposes, or cleared for bottling or for sale through the warehouse. Where the goods are sold to a customer the date of sale and the Day Book folio are entered in the columns provided for the purpose, along with the name of the customer. In course of time, when the goods are cleared for the customer, that is, when duty is paid, the date is entered under the "Date cleared column, and the amount of duty would, of course, be found in the Duty Book, and also in the Day Book as charged to the customer at that date. Where the goods are vatted (i.e. filled in a vat for blending purposes) the folio of the Vatting Book is entered, and the goods are also marked off under the "Duty cleared" column as, though not out of bond, the same spirits appear under a different form under the "vatted whisky." In the same way, where a large cask is divided into two or more of a smaller size, these goods are marked as under the "Date cleared" column as they appear again in a different part of the book.

It will be kept in view that where a cask is both sold and cleared for a customer at the same date, the goods will, as a rule, be found in the Day Book charged at a price to cover both the whisky and the duty, and not as two separate items.

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In the example the particulars of only a few of the casks vatted are given; the totals, however, representing the figures of what would be a complete vatting.

Where goods are cleared for a merchant himself to go into his own warehouse, the corresponding entries will be found in the Bin Ledger.

The Vatting Book is issued to show the various casks put in a vat for blending, and the outcome of these. A re-examination is made of each cask when put in, and the actual content and strength ascertained. A certain deficiency will appear between the cask as standing in the books and the amount found on re-examination owing to the absorption of spirit by the wood. These deficiencies are allowed for by the Excise if not exceeding a certain amount. According to the age of the whisky there is a fixed allowance, as ordinary and special deficiency, for which no charge. is made by way of duty. If, however, the deficiency exceeds these fixed rates, the difference is chargeable against the merchant, and he has to pay duty on it.

After being in vat for about a fortnight or three weeks the result of the blend is drawn off, and entered in casks of which full particulars are given in the Vatting Book, which also shows what loss there is on the operation. The result of the vat is again entered in the part of the Bond Book set aside for vatted whiskies.

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The table given below shows the entry of the vatting shown in the Vatting Book.

Wine is entered in the same way, the strength being in this case given in degrees.

When the duty is paid on liquor for the merchant's own purposes, and these are transferred to his warehouse, the amounts are entered in the Bin Ledger. This Ledger is ruled with a separate page for each class of wines or spirits, and showing the amounts actually put in coming from the Bond Book, and the amounts sold coming from the Sales Day Book. A small pass book ruled in a corresponding way is kept within each bin, or attached to each vat in the warehouse, and corresponding entries are made by the warehouseman when goods are put in or drawn off. These should be periodically checked with the Bin Ledger so as to see that they agree, and the contents of each bin should be ascertained from time to time so as to prove that nothing has been taken out without having been entered in the Bin Ledger. This book should contain not only bins proper, but shelves, racks, and vats in the warehouse.

At the close of the year, in order to ascertain the stock in hand, these various Bond Books are gone over, and whatever is not marked as sold in the Bond Book should be in stock, and the difference between the amounts put in and sold in the Bin Ledger should also be in stock.

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From an auditor's point of view the process in checking these entries would be as follows:-Assuming that the stock has been marked off as correct at the beginning of a year, all goods purchased through the Purchase Ledger, or if paid for in cash, through the Cash Book, should be traced to the Bonding Register, or Bond Book, and marked as correct. The Bonding Register should then be gone over, and all goods transferred to the merchant's own bond should be marked out from that book and marked as entered under its proper heading in the Bond Book. The Bond Book should then be gone over carefully, and each item sold should be traced to the Sales Day Book and marked if correct. When cleared, a corresponding entry should be found in the Duty Book, and also in the Sales Day Book, charging the customer with the duty. If cleared for the merchant himself the amount should be found in the Bin Ledger. In cases of racking the corresponding entry would be found under the racked goods. Vats should be checked with the Vatting Book, and the amounts drawn off from each vat marked as entered in the Bond Book. The Day Book should then be gone over to see that every item there is marked off as taken out of bond, or where the goods were duty paid, that an entry is made in the Bin Ledger. When it comes to stocktaking, by going over the Bonding Register and Bond Book the various casks and cases actually belonging to the merchant in stock can be at once seen, and checked with the Stock Sheets. In addition to the Bin Ledger the Excise authorities require a permit book to be kept, showing the goods actually brought into the warehouse and the goods sent out with a certificate that duty has been paid. Goods cleared for the merchant himself can, if necessary, be traced

in this book.

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CHARLES WILLIAMSON.

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