275 A PRACTICAL SYSTEM OF BOOKKEEPING, FOR FARMERS AND MECHANICS. ALMOST all persons, in the ordinary avocations of life, unless they adopt some method of keeping their accounts in a regular manner, will be subjected to continual losses and inconveniences; to prevent which, the following plan or outline is composed, embracing the principles of Book-Keeping in the most simple form. Before the pupil commences this study, it will not be necessary for him to have attended to all the rules in the Arithmetic; but he should make himself acquainted with the subject of Book-Keeping before he is suffered to leave school. A few examples only are given, barely sufficient to give the learner a view of the manner of keeping books; it being intended that the pupil should be required to compose similar ones, and insert them in a book adapted to this purpose. Book-Keeping is the method of recording business transactions. It is of two kinds-single and double entry; but we shall only notice the former. Single entry is the simplest form of Book-Keeping, and is employed by retailers, mechanics, farmers, &c. It requires a Day-Book, Leger, and, where money is frequently received and paid out, a Cash-Book. DAY-BOOK. This book should be a minute history of business transactions, in the order of time in which they occur; it should be ruled with head lines, with one column on the left hand for post-marks and references, and two columns on the right for dollars and cents. The owner's name, the town or city, and the date of the first transaction, should stand at the head of the first page. It is, the custom of many to continue inserting the name of the town on every page. This, however, is unnecessary. It is sufficient to write only the month, day, and year, at the head of each page after the first, This should be written in a larger hand than the entries. On commencing an account with any individual, his place of residence should be noted, provided it is not the same as that where the book is kept. If it be the same, this is unnecessary. As it often happens that different persons bear the same name, it is well, in such cases, to designate the individual with whom the account is opened, by stating his occupation, or particular place of residence. When the conditions of sale or purchase vary from the ordinary customs of the place, it should be stated. Every month, or oftener, the Day-Book should be copied or posted into the Leger, as hereafter directed. The crosses, on the left hand column, show that the charge or credit, against which they stand, is posted, and the figures show the page of the Leger where the account is posted Some use the figures only as post marks. Every article sold on credit, except when a note is taken, should be immediately charged, as it is always unsafe to trust to memory. Also, all labor performed, or any transaction whereby another is made indebted to us, should be immediately entered on the Day-Book. If farmers and mechanics would strictly observe this rule, they would not only save many quarrels, but much money. In this respect, at least, follow the example of Dr. Franklin, who never omitted to make a charge as soon as it could be done. Never defer a charge till to-morrow, when it can be made to-day. FORM OF A DAY-BOOK. EDWARD L. PECKHAM. Boston, Jan. 1, 1829. อ X Archibald Tracy, Salem,..... To 1 piece Broadcloth, containing 29 yds., a $3 per yd., 41 lbs. Feathers, a 70 cts....... ...Dr. .28,70 Balance to be paid in Corn, at market price. Isaac Thomas, Brattle Square,........Dr. 2 X 7 lbs. Butter, a 20 cts.......... 4 lbs. Cheese, a 10 cts.......... 27 60 Cr. 15 OC Jesse B. Sweet, Mendon,............Dr. By Cash To 200 lbs. Cheese, a 8 cts.. To 200 bu. Corn, a 70 cts.. To 30 quintals Fish, a $3,75.. George Carpenter,.. "1 firkin Butter, 76 lbs., weight of tub, 10 lbs. 66, 140 00 -9 .Dr. 112 50 .Dr. .$16,00 a 20 cts... .13,20 By Order on Goodrich & Lord, for $12,80... 12 80 The This book is used to collect the scattered accounts of the Day-Book, and to arrange all that relates to each individual into one separate statement. business of collecting these accounts from the Day-Book, and writing them in the Leger, is called posting. This should be done once a month, or oftener Debts due from others, and entered upon the Day-Book, are placed on the side of Dr.; whatever is on the Day-Book as due to another is placed on the side of Cr. When an account is posted, the page of the Leger, in which this account is kept, is written in the left-hand column of the Day-Book. Every Leger should have an alphabetical Index, where the names of the several persons, whose accounts are kept in the Leger, should be written, and the page noted down. When one Leger is full, and a new one is opened, the accounts in the former should be all balanced, and the balances transferred to the new Leger. .Dr. .$1,10 .3,00 ..2,22 632 .Cr. .$12,00 .42,00 54 00 Dr. .$10,00 .1,95 ..7,50 48 ..2,80 .......... .1,25 .1,68 .7,50 EXPLANATION OF THE LEGER, AND THE MANNER OF POSTING. It will be seen, that the name of James Murray, Jr. stands first on the Day. Book; of course, we shall post his account first. We enter his name on the first page of the Leger, in a large, fair hand, writing Dr. on the left, and Cr. on the right. At the top of the left-hand column we enter the year, under which we write the month and day when the first charge was made in the DayBook, and in the next column the page of the Day-Book where the charge stands. Then, as there are several articles in the first charge, instead of specifying each article, as in the Day-Book, we merely say, To Sundries, and enter the amount in the proper columns. This charge being thus posted, we write the page of the Leger, viz. 1, in the left-hand column of the Day-Book, and opposite to it a X, to show more distinctly that the charge is posted. We then pass a finger carefully over the names, till we again come to the name of James Murray, Jr., which we find on the second page; but, as this is credit, we enter it on the credit side, with the date and page in their proper columns. We then enter the Leger-page and cross, as before, and then proceed again in search of the same name, until every charge and credit is transferred into the Leger. The next name is to be taken and proceeded with in the same way as the first; and so continue till all the accounts are posted. As it is uncertain how extensive an account may be when once opened, it is better to take a new page for every name, until all the Leger-pages are occupied. By this time, it is probable, several accounts will have been setted; we may then enter a second name on the same pages, and so continue till all the pages are full. Whenever any account is settled, the amount or the balance is ascertained, and the settlement entered in the Leger. The settlement may also be entered in the Day-Book; and many practise this, although it is not essentially necessary. But it is essentially necessary that one, if not both, the books, should show how every account is settled, whether by cash, note, order, goods, or whatever way the amount or balance is liquidated. N. B.-In making out bills, the Leger is used as a reference to the charges in the Day-Book, which must be exactly copied. |