In balancing the Leger, as in Example 2, draw two heavy black lines under the accounts in which the sums of Dr. and Cr. are equal, to show that the account is settled. Where the sums of Dr. and Cr. are unequal, place the sum to balance, under the smaller As there is to be no line drawn under these accounts, and as there is no reference in the marginal columns to the Day Book, it will be obvious on inspection, that such accounts are not settled. account, writing against it the word, Balance. TO FIND THE PROFIT OR LOSS, An Inventory of the property and of the debts must be taken, as follows, from Example 2. February 1, 1821. Inventory of all my property, and of the sums due to me, or owed by me, taken this day by me A. B. Ready Money, House and Furniture, Williams Farm, Merchandise, Produce, Due from Henry Hardy, D. Ferry, £ 5. d. S. Lyman, J. Noble, 43 3 Book Keeping by Single Entry, shows clearly the state of accounts with individuals, but it does not exhibit the true state of his affairs to the book keeper himself. For this purpose, he must take an Inventory of all his property and debts, to ascertain the quantity of goods unsold, and the net amount of his property, and thence the profit or loss of trade, in the manner just taught. This is a work of much difficulty and trouble, if the business be extensive. It is for this reason, that book keeping by Double Entry is preferred in extensive trade. SHORTER METHOD OF POSTING ACCOUNTS IN SINGLE ENTRY. The method already given, of posting accounts from the Day Book into the Leger, is generally considered the most correct. The following shorter method is perhaps more commonly used. The Leger is ruled as before, and merely the amount of an account is posted into the Leger, preceded by the page and letter of the Day Book on which the account is found. The first two accounts of the preceding Leger are here posted from the Day Book for an example of this method. LEGER. SHORTER METHOD. Dr. Henry £ S. d. Hardy, A 2. £16 1s. and £3 1219|13| OA 1. £15 10s. A 4 £14 5s. Dr. Thomas [14] 5 0 Balance, 3318 In this Leger, A 1, A 2, &c. means that on page 1, 2, &c of Day Book marked A, that particular account is to be found. The manner of balancing the Books, and of ascertaining the Profit or Loss is the same as before taught. To make the subject familiar the learner should be directed to form a Day Book for himself, and to carry the accounts through the several books, ac· cording to the preceding principles. SHORTEST METHOD OF KEEPING ACCOUNTS. Only one Account Book is necessary in the practice of this method. It is formed precisely like the Leger in Single Entry, except that there is no column of reference to any other book. The transactions of trade are entered under the names against the date on which they take place. An alphabet for the arrangement of the names is found convenient for reference to the various accounts. This Account Book is designed to answer the double purpose of Day Book and Leger. If the person be careful to enter every instance of debt and credit at the time it occurs, he will be able to ascertain at any time the state of his accounts in a particular case. This is the great object of this method, which is exhibited in the following example. ૨ ૧ |