POSTING ACCOUNTS.-Transferring accounts from the Day-book to the Ledger is called posting. Commence with the first name in the Day-book, which in our example is William Smith; begin by writing his name in a fair hand at the top of the page, with his residence if different from your own, placing Dr. on the left, and Cr on the right of the name. As he is debtor to us we commence at the left hand, writing in the first column the year, month, and day, in the second the page of the Day-book on which the original entry can be found, in the third the name of the article, or if several articles are recorded under one date, they may be entered with the general designation of sundries or merchandise, and in the fourth column the total amount of the transaction. Against the account in the Day-book mark the page of the Ledger to which it has been posted; a mark can also be made to show that it has been transferred to the Ledger. Now take the second transaction in the Day-book, and if it is another name take a new page in the Ledger, and proceed in the same manner as the first. In this way

all the entries in the Day-book are posted to each person's account, every week or month as opportunity may occur. By subtracting one side from the other the balance which is due will be found. The specimen page represents three pages of a Ledger, to correspond with the three persons who have transactions in the Day-book.

BALANCE SHEET.-This may be made to accomplish a double purpose, as it will exhibit the state of the owner's accounts, by determining the amounts owing him and that he may owe, and also prove that the accounts have been correctly posted and added The method is as follows: rule a sheet of paper similar to ledger page, for debtor and creditor; add up all the items of credit on a page of the Day-book, and enter the amount on the sheet, then add the debits in the same manner, and proceed in this way for whatever time it is wished the proof should cover, add up the two columns and subtract one total from the other, and the difference will be the balance of the Day-book. Turn to the Ledger and obtain the balance of each person's account, and place it under its proper head; add these up, and the difference will be the Ledger balance. If the two balances agree, it proves the entries have been correctly posted.

A complete balance sheet should be made out once or twice a year, when an inventory of stock on hand is taken and added to the debtor balances of accounts, and the original capital is added to the credit balances, (or balances we owe,) these compared will give the amount of profit or loss. It will be remembered that this sheet is an account between ourselves and our books.

All the accounts in the Ledger ought to be balanced twice a year. To do this add up each column and find the difference, and make an entry of this balance on the side that is smallest (this should be made with red ink to distinguish it from other entries); both sides now being equal, draw a line under them to show the fact. Now place the balance on the opposite side, so that it will exhibit the true state of the account. (See Wm. Smith's account on the Ledger page.)

CASH-BOOK.

The Cash-book records the payment and receipt of cash. Cash is made debtor to the cash on hand aud cash received, and credited with what is paid out. At the close of each day or week, the cash on haud is counted, and the amount entered on the credit side This should make the debits and credits equal; the amount of cash on hand is then entered on the debtor side. If money is paid to or received from a person who has an account with us it is also entered in the Day-book; the total receipts and expenditures are carried to the Day-book as often as the Cash book is balanced. (See form of Cash-book.)

Farmers and mechanics who make but few entries, and therefore require but one book for their accounts, can adopt the plan of the Ledger, omitting the column for day-book page, and make their original entries on a page devoted to each person with whom they deal. It should have an index like the Ledger.

Day-Book.

PETER STONE, GENEVA, NEW YORK, OCTOBER 2, 1850.

William Smith

To 8 yds. of muslin at 9 cts. a yd.

X 1 To 4 yds. of cloth, at $3 a yd.
To 1 scythe

Dr.

$0.72

12.00

1

1.10 $13 82

INTEREST.

PRINCIPAL is the sum on which interest is paid. Interest is the compensation charged by the lender to the borrower for the use of the principal, and is the real meaning of the word usury, though this term is now understood as a rate above legal interest: usurious interest, therefore. is the amount above the legal rate established by the state. Amount is the principal and interest added together, or the whole sum of several items. Per cent. is a rate on a hundred dollars, cents, or pounds, allowed by the lender for the use of money. Per annum signifies by the year. Per cent. per annum means the rate of interest on a hundred for one year, as six per cent. per annum means six dollars to be charged for the use of one hundred dollars for one year. Discount is a deduction of the interest from the principal at the time the money is lent; or an allowance of interest on a sum paid before it is due; or a sum less than par value. Commission or brokerage is the percentage allowed for services in buying, selling, or transacting business, for another. Par or nominal value is the sum expressed on the face of a stock certificate, note, coin, &c. Premium is a sum charged for insurance, or is the sum exceeding the par value of anything.

INTEREST TABLE,

AT SIX PER CENT., IN DOLLARS AND CENTS, FROM ONE DOLLAR TO TEN THOUSAND.

INTEREST TABLE,

AT SEVEN PER CENT., IN DOLLARS AND CENTS, FROM ONE DOLLAR TO TEN THOUSAND.

$

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TABLE FOR BANKING AND EQUATION,

Showing the number of Days from any Dote in one Month to the same Date in any other Month. Example: How many Days from the 2d of February to the 2d of August? Look for February at the left hand, and August at the top-in the angle is 181. In leap-year, add one day if February be included.