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account, ledger and accounts

BOUGHT LEDGER.—This is one of the most important books that a trader keeps, being as it is a summary of the purchases he has made and his payments and credits in respect thereof. An account should be opened for every person or firm from whom purchases are made, and unless the account is certain to be a very limited one, there should be exclusively devoted to it at least one whole page. At the head of the account should be written in bold characters the name and address of the person or firm, and also a note made as to the terms of payment, e.g. per cent. at one month." The name, together with the folio, should be duly indexed. Only the totals are required to be entered in this ledger, such as " By Goods," "'1'o Cash," "To empties returned," &e. ; and care should be taken that no entry is made in this ledger except from one of the subsidiary books, such as the bought journal or the cash-book. The principle of posting up this ledger is the opposite to that of the sales ledger, as the items in the cash-book here go to the debtor side of the accounts, and those in the journal to the credit side. At the quarterly

or half-yearly balancing, the accounts should be ruled ofr in red ink, and the balances carried down. It will be found convenient to post into this ledger all the sundry trade expenses which are not strictly the subjects of credit accounts ; this may be done either by opening separate accounts for such expenses as carriage, for example, or by opening a general sundry creditors' account, or by opening accounts of both these classes, according as the neces sities or the convenience of the business demand. Below we set out some specimen pages of a bought ledger, the first being an account unbalanced, the second an account balanced with the balance carried down ; the initials C.B./43 and 13.J./110, mean, with the figures, " Cash-book, folio 43," and " Bought journal, folio 110 " respectively, and indicate that the items have been posted from these books and pages. See BOOK-KEEPING.