SINGLE simpler kind of accounting is called book-keeping by single entry; the principal books used being the day-book, invoice-book, cash-book, and bill hook, which are employed for recording the transactions as they occur, and a ledger, to which the entries are afterwards transferred, under the names of the parties concerned. The method is called single entry, for the reason that the items are entered only once iu the accounts in the ledger.
Day-book.—The purpose of this book is to keep a daily account of all goods sold on credit—that is, goods not paid for at the time of being bought. The book is ruled with a date-line on the left-hand side of the page, and with double money-lines at the right hand side. The entry of a transaction comprehends the name of the purchaser, and beneath it a note of the articles sold, with the prices extended to the first money-column. The gross amount added up is extended to the second money-column; so that the amount of ail sales may easily be summed up. After the name of the purchaser, it is usual to put Dr., and to articles in the entry is prefixed To—the meaning of these insertions being that the party named is debtor to the concern for the articles mentioned.
Lrroice-book.—This book. which is similarly ruled, is sometimes called the credit day book. It is used for keeping an account of all goods bought on credit. When the goods are bought, an invoice, or account of them, accompanies the package, or is received by post, and on being checked off, the items are copied into the book. After the name of the seller of the goods is inscribed the contraction Cr., and to the items entered is pre fixed the word By—the meaning of which is, that the party named is creditor by having sold the articles named. For the sake of brivity, some dealers merely enter the name of the creditor, the date, and the amount; and preserve the invoices, by docketing and tying them up in parcels, or by fastening them into a paper-book prepared for the pur pose. In any case, the invoices should always be preserved.
Cask-book.—In this is kept an account of all cash received and paid, and of discount received and allowed. It is ruled for date and double money-columns on each page. Two pages, one opposite the other, are required for the entries; that on the left hand for entering cash received, and the discount allowed by the trader; that on the right hand for the cash he pays, and the discount allowed to him. The first money-column
on each page is for the discount, and the second for the cash. For example, if a per son settles his account, amounting to less a discount of the sum of as. is entered in the first column, and £4, 15s. in the second; by which means a record is kept of accounts settled and the money actually received. A similar explanation applies to the " cash paid " side. At the close of business for the day, the amounts on both sides are summed up and balanced.
contains an account of all "bills receivable "—that is. bills of which the trader is to receive payment; and "bills payable"—that is. bills which he has to pay. Sometimes, however, in the case of large concerns, these two classes of bills have each a distinct book. The books are ruled in a particular manner, to admit of an explicit statement of dates, amounts, length of term, and other particulars. See article Bim.s.
Ledger.—This is the great book of the concern. It comprehends an abstract of the entries in the day-book, invoice-book, cash-book, and bill-book, the whole collected in a methodic form under the names of the various persons, whether standing in the relation of debtors or creditors to the trader; and not only so, but in account of the trader's own private debit and credit. Two sets of colums are assigned to every person's account, one for Dr., and the other for 0/. The copying of itentsfrom the daY-book, etc., into these, ledger accounts, is termed posting. According to the ordinary practice, books ars posted after short and regular intervals—not longer than a month. Ilaving books at all times well-posted up is an acknowledged mark of a good man of business. By ineaus of a well-posted ledger, and an of stock and other a.sets, drawn up with a prudent regard to realizable value. the haler is able at the end of a year to make a bal ance-sheet, or condensed statement of I is affairs. A. proper balance-sheet ought to show the amount of capital invested in the form of money, stock, debts, etc.; also the amount of liabilities, the expenses at which the business has been conducted, the money drawn on private account, and the profit that is over, after all deductions have been made.