BOOK.KEEPING. The art of keeping ac. counts, or recording the mercantile transactions of a man, so that he may thoroughly know the whole state of his affairs, or any part of them, with ease and despatch. Accounts may be kept either by single or double entry ; the former of which may answer the purpose where the dealings are on a small scale; but merchants, whose concerns are extensive, keep their books according to the double entry, or Italian method. In single entry, two books only are wanted, namely, a journal, or day book, in which the transactions of the day, as they occur in the course of business, areenter ed • and the ledger, or post book, in which all the accounts drawn out of the journal are placed under the proper name, either on the debtor or creditor side. Those who keep their accounts by double entry, have occasion for several book; the three principal of which are, the waste book, the journal, and the The waste book is a book containing an inven-I tory of a merchant's effects and debts, with a distinct record of all his dealings. The act of placing any transaction under a given account is called the entry ; if placed on the Dr. or debtor's side, it is debiting the account; if placed on the Cr. or creditor's side, it is credit mg. The waste book opens with the invento ry, which consists of two parts, namely, in the first place, of a man's effects, and what is due to him ; and in the next place, what is due by him. After the inventory follow daily transactions as they occur in business. The accounts of persons are debited under their re spective names when they become indebted to the merchant, and credited when the merchant becomes indebted to them. Accounts of pro perty are debited when they come into his possession, and credited when they go out of tt. In the same manner, the accounts of profit and loss are kept, which are debited on ac count of a loss, and credited on account of a gain. Those marked Dr. are placed on the left side, and those marked Cr. on the opposite side, marked Contra Cr. This book should contain the names of persons with whom the merchant deals, the conditions of bargains, the terms of payment, the quantity, quality, and prices of goods, with every other particular needful to be recorded. The journal, or day
book, is intermediate between the waste book and the ledger, wherein the transactions re corded in the waste book are prepared to be carried to the ledger, by having the proper debtors and creditors ascertained and plac.d in order. in the journal, persons and things are debtors to other persons and things as credi tors, and in this it agrees with thet Lodger, but in other respects it agrees with the waste book. Every case or transaction entered into the journal, is called a post, or entrance. The ledger is the principal book, in which all the several articles of each particular account that lie scattered in other books, according to their several dates, are collected and placed to gether in such manner that the opposite parts of every account ate directly set fronting one another, on opposite sides of the same folio ; that is to say, the or debtor part, is en tered on the left or debtor aide of its own ac count, where it is charged debtor to the credi tor part; and the creditor, or creditor part, is posted to the right or creditor side of its ac count, and made creditor by the debtor part. Hence it is that the Italian method of book keeping is said to be by double entry, because every single case of the waste book requires to be entered twice in the ledger, that is, once for cr.
the debtor and once for the editor. In addi tion to the above three books, most merchants have several other books, as the cash book, which contains in debtor and creditor all the cash that comes in and goes out ; the debt book, in which are entered all sums that be come due, either to be received or paid, by bills of exchange, notes of hand, &c.; besides this, some merchants require a book of in voices, a book of commissions, a book of or ders or adviceit, &a. according to the nature of their transactions.