The waste-book opens with an account of the merchant's effects in business or trade, and of his debts to other persons. The first set of articles exhibit his stock; and each article is entered in the journal as Dr. to stock for its value or amount; 'while on the other hand, stock is said to be Dr. to each article in which money is due from the trader.

The first transaction of the 4th of March, in which cloth is sold for ready money appears in the journal in this way, cash Dr. to cloth, that is, cash received is accountable for cloth given awaye but in the second transaction of the 7th of March, linen is bought for ready money; linen is therefore entered in the journal as Dr. or accountable to cash for the money paid for it.

On the 9th, Thomas Brown supplies rum on credit: the rum is therefore accountable to him for its value, and is consequently journalised as Dr. to Thomas Brown.

On the 12th, linen is parted with to Thomas Ellis: of the price á portion is received in ready money, and the remainder credit. In this case the journal must exhibit two Drs. viz. cash Dr. to linen for the money paid down, and Thomas Ellis Dr. for the remainder at a fixed period mentioned in the waste-book.

On the 28th, the merchant gains a sum of money for his trouble in receiving and transmitting money on account of Richard Wilson. Here no real value on effects pass from the merchant; a fietitious account is therefore formed, entitled commission, under which are to be entered all articles of this sort, whether received or paid by the trader.

On the 31st, a legacy is received, which being regarded as pure gain, for which no equivalent is given, another fictitious account is opened, with the title of profit and loss, to which cash is Dr. for the amount of the legacy.

On the 2nd of April several charges are paid, such as rent, &c. all necessary in conducting business, but for which no real value is received by the merchant: to the same account of profit and foss, or to some similar fictitious account these articles must therefore be charged.

In this manner by applying the several rules formerly given, the method of transferring accounts from the waste-book to the journal may be readily understood; and the following step or the carrying of the same accounts from the journal to the ledger will be very simple.

The ledger opens, in the first folio, with an account for stock, on the Dr. side of which is entered the amount of the several articles of what the merchant owes, and on the Cr. side the amount of the articles composing his effects or estate in trade. The next account opened is for cash, which is the first article in his account of effects: cash being made Dr. to stock for the ready money in his hands. Then comes the account for bills receivable which, in the same manner, appear Dr. to stock for the bill on Philip Hawkins. This is followed by the account of cloth which is charged as Dr. to stock for the number of pieces and yards, at a given price. The next account is for sugar, stated to be Dr. to stock for the