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 account, writing against it the word, Balance. 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. 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, £ S. d. 349 8 8 504 9 0 600 0 0 480 0 0 Due from Henry Hardy, D. Ferry, S. Lyman, 4 10 J. Noble, 3 3 GENERAL REMARK ON SINGLE ENTRY. Book Keeping by Single Entry, shows clearly the state of accounts with individuals, but it does not exhibit the true state of bis 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. |