In cases where the branch accepts bills, which is inadvisable (unless abso lutely necessary), the bills receivable and payable during the ensuing period should be shown.
The branch books should in all cases be closed on the same day as the date of balancing of the head-office books, and the nominal accounts in the branch books should be so framed as to admit of a ready incorporation in the head-office accounts.
In cases of foreign and colonial branches, the question of exchange must be borne in mind. The rules relating to this may be obtained from any work on the subject.
Statements for Use of object of these statements is to show the progress of the business and the position of the same.
It must be borne in mind that a mass of figures will discourage inquiry, while it is desired that the statements shall give sufficient particulars ;for a healthy criticism of the business, and to enable the directors to see the position of same.
Most of the remarks as to branches apply to these statements, but the object of these accounts is not so much to account for cash and goods as to render information as to progress and as to the future requirements.
If possible, a pro forma trading account should be shown, and an estimate of running expenses based on the previous profit and loss accounts should be given.
In case of a manufacturing business being carried on, particulars showing the progress, as far as possible, of the manufacture should be given. These can be obtained from the Cost Books.
The periodical statements should be carefully checked on balancing the books with the actual result of the trading. They should, if they have been properly prepared, approximately agree with the balance sheet and profit and loss account. If not nearly in agreement, the difference should be ascertained for further working.
Take the case, for instance, of a Pro Forma Profit and Loss Account furnished monthly to the board in the case of a company carrying on a wholesale wine and spirit business, together with a fully licensed hotel and three public-houses. Here the net profit on the houses might be brought into the statement.
The Directors would also require in this case (1) a summary of Cash received and paid at the Head Office.
(2) Pro Forma Trading and Profit and Loss Accounts of the three Public Houses.
(3) Pro Formd Trading Account of the wholesale business and the Hotel trading.
(4) In respect of the wholesale trade, a statement showing the debts outstanding at commencement of period, less Cash received and Discounts allowed during the month, anti phis Goods Sold during the month.
(5) A similar statement as to the Goods Purchased, while a short state ment as to the Stock would be appended. LOUIS NICHOLAS, C.A. PETTY CASH. See RETAIL SHOP ACCOUNTS.
t PHOTOGRAPHY AS A BUSINESS.—To-day every one uses the camera, and as a means of pleasure it is probably one of the most interesting hobbies available to the public, but it should not be forgotten that photo graphy has its serious side, and there are dozens of ways of making it profit able. Many men who have taken up photography as an interesting hobby frequently ask themselves how they can make it pay, and the purpose of this article is to suggest to them some of the leading markets which would enable them to profitably use their pictures.
Of course, the ordinary business of the photographer is open to any man who takes the trouble to learn the necessary technique, and to commence an establishment which is ready to take photographs of callers for purely social purposes is a ready means of opening up profitable income. It should be remembered that the public are not so prone to pay for photography as they were, but there is ample opportunity along these lines for establishing a good connection. Photography, so far as portraiture is concerned, has been carried on for many years, but has lacked the enterprise which might have been infused into a very interesting business proposition. Photographers have neglected to provide the interesting studio, to attract patrons to it, and to give them the best kind of service, but in every town there is a distinct field for up-to-date service along these lines. Much might be done by a photographer commencing in business by using the up-to-date ideas of advertising which are found successful in other business enterprises, and the photographer who did use them, centring his efforts on proving to his possible clientele that he could give them artistic service, would be bound to secure profitable results. It is not enough in these days to be able to produce a good portrait ; but it is rather necessary to convince the public that one is able to do this, as there are so many competitors.