A PRACTICAL SYSTEM OF BOOK-KEEPING. PERSONS transacting business find it necessary to write down the articles bought or sold, together with their prices and the names of the persons with whom the bargains are made. BOOK-KEEPING is the method of recording such transactions in a regular manner. It is divided into two kinds, called Single Entry and Double Entry. The method by Single Entry is the most simple, and answers for all common business. This method we will explain. Book-Keeping by Single Entry requires two books, a Day-Book and a Leger; and when cash sales are extensive, an additional book is necessary, which is called a Cash Book. DAY-BOOK. This book should contain a full history of the business transactions, in the precise order in which they may have occurred. The transfer of an account from the Day-Book to the Leger, is called posting the account. Each page of the Day-Book should be ruled with two columns on the right hand of the page, one for dollars, and one for cents, and one column on the left hand for entering the page of the Leger on which the account may be posted. The Day-Book should begin with the name of the owner, and his place of residence; and then should follow a full account of the transactions in business in the exact order in which they may have taken place. The name of the person, or customer, is first written with the term Dr. or Cr. opposite, according as he becomes a debtor or creditor by the transaction. Generally, the person who receives is Debtor, and the person who parts with his property is the Creditor. Thus, if I sell goods to to A B, on credit, he becomes my debtor to the amount of the goods, and the goods should be specified particularly in making the charge. If I buy goods on credit, of C D, I enter C D Cr. to the amount of the goods, taking care to specify the goods in the charge. If I pay money for, or on account of another person, he becomes Dr. to me for the amount paid. The Day-Book and Leger are generally designated, Day-Book A, Day-Book B, Leger A, Leger B, &c.: for when one book, in the course of business, is filled with `charges a new one is taken. DAY-BOOK A. Page 1. Edward P. Nixon, New York, June 1, 1837. Folio Leger New York, June 1st. 1837. George Wilson, cts, Dr. x1.To 11 cwt. of sugar at $9 per cwt. $99,00 To 66lb. of coffee at 20 cts. per. lb. 13,20|11220 Daniel Judson, To 3 hhd. of molasses at $20 each, x1.To 3 bar. of salted shad at $8 per barrel To 4 kegs of raisins at $2 per kg. By 1167b. of beef at 8 cts. per lb. Dr. 24,00 8,00 9200 Cr. 51,11 451 11 Cr. $9,28 By 50bu. of oats at 37 cts. per bushel, 18,50|| 2778 Jared Newton, x1.To 1 piece of linen 36 yards, Dr. $42,50 To 3 yds. of broadcloth at 4,50 per yd. 13,50 To 46lb. of nails at 6 cts. 2,76 5876 Cr. $37,50 21,26 5876 Cr. $24,50 3,60 20,65 4875 Cr. ||100,00 LEGER. THE LEGER is a book into which is collected, in a condensed form, all the scattered accounts from the Dayook. Two columns should be ruled on the right of each page of the Leger, one for dollars and one for cents; there should also be two columns on the left, one to insert the date of the transaction, and the other for inserting the page of the Day-Book from which the account is transferred. Two pages of the Leger, facing each other, are generally used in stating an account, though sometimes a page is divided into two equal parts, in which case each part may be considered as forming a separate page. The name of the person with whom the account is stated should be written in large letters at the top of the left-hand page. The Debits are entered on the left-hand page, and the Credits on the other page directly opposite. The difference between the debits and credits, is always entered under the least sum, when the account is closed, and is called the balance, as in the account of John McNeill. At the top of the left-hand column, we enter the year, under which, we enter the day of the month on which the transaction took place; and in the adjoining column, we enter the page of the Day-Book from which the account is transferred. When there are several articles charged in the DayBook, we need not specify them all, but may enter them in the Leger under the general name of "Sundries." Having posted the account, we enter the page of the Leger to which it has been transferred, in the left-hand column of the Day-Book and opposite the account, and make a mark X to catch the eye and show that the account is posted. We begin posting with the account of George Wilson, who stands charged on the Day-Book with $112,20 Having posted the first charge, we run the eye carefully through the Day-Book, to see if there are any other charges against him, and find that in page 2 he is credited by 100 dollars cash, and a note for $12,20. These items we enter in the Leger, on the credit side, and as the debits and credits are equal, his account is balanced. We proceed in the same way to post all the accounts entered in the Day-Book. No erasure should ever be made in the account books. When an error is discovered, if it be in favor of the customer he should be charged with the amount, and if against him, he should be credited with the amount. In posting the account of Jared Newton, a mistake was made against him of $21,26, which was rectified by crediting him with the amount. When a charge is entered on the wrong side of the book, as when a person is charged with that for which he ought to have been credited, twice the amount must be entered on the other side of the book to make the account right. Every Leger should have an Index, where the names of all persons, who have accounts in the Leger, should be arranged in alphabetical order. When a Leger is filled, all the accounts are balanced, and when we transfer the balances to a new Leger, we charge "To balance from Leger A, page”— |