EXAMPLES.

The foregoing table is reproduced from the twenty-second edition of Inwood's "Tables for the Purchasing of Estates, &c.," by kind permission of the publishers, Messrs. Crosby Lockwood and Son, and shows the annual amounts to be debited to Profit and Loss Account, and credited to account of Lease or other object to be amortized in a given number of years with interest at 3, 4, 5, 6, 7, 8, 9, and 10 per cent. per annum. The table is also serviceable for ascertaining the value of a Lease at the several rates of interest.

EXAMPLE: A Lease or Annuity for 14 years, to make 3 per cent. and to get back the principal, is worth 11296 or 11 years' purchase of the clear annual rent; at 4 per cent., 10:563, or 10 years' purchase; at 5 per cent., 9899, or 10 years' purchase; at 6 per cent., 9:295, or 9 years' purchase. In calculating the value of Annuities, Leases, &c., Compound Interest is always reckoned and allowed.

A hypothetical Ledger Account, showing the amortization of a Lease at 5 per cent. per annum, will, with a description, be found in Chapter VI., p. 108.

GLOSSARY OF SOME OF THE TERMS

USED.

The definitions do not extend to terms used in quotations or in the Appendices.

Amortization.-The process by which provision is made for the expiration of value in an asset.

Appreciation.-The increase in value of assets either through special or general causes. (Opposed to Depreciation, q. v.) Assets. Property of all kinds, possessed or in reversion. (Opposed to Liabilities, q. v.)

Balance Sheet.-A complete summary of debit and credit balances as they appear in the accounts of the Ledger at a given date.

Book Value. The monetary value of any asset according to the books of account. (Distinguished from Market Value, q. v.) Capital. The money or properties invested in the business. Assets applied to production of further wealth, or assets used as a source of income.

Cash Book.-A commercial book recording the cash transactions.

Commercial Books. The books pertaining to the counting

house, such as the Ledger, Journal, Cash Book, recording mercantile transactions, as distinguished from Factory Books treating of merchandise.

Commercial Ledger. The Mercantile Ledger (as distinguished from the Stores, Stock, and Plant Ledgers).

Cost of Production. The total expenditure incurred in the production of a commodity. (Distinguished from Prime Cost, q. v.)

Counting-House. The place in which the mercantile bookkeeping is conducted.

Craft Register. The book recording the work done by, and the earnings of, each of the Craft.

Credit Note. If received, an advice of indebtedness to the firm. If issued, an advice of indebtedness by the firm. Credit Note Register.-A commercial book in which the credit notes received are registered.

Day Book. A commercial book in which the sales of stock are recorded.

Delivery Note.-A request to receive, and a description of, material tendered.

Depreciation.-The falling off in the value of buildings, machinery, plant, and other assets. (Distinguished from Appreciation, q. v.)

Dilapidations. Those defects in a tenement which have arisen from neglect or misuse; and of use or age, if the efficiency of the structure is destroyed.

Establishment Expenses-General Charges.-The general expenses which cannot be directly charged to any particular process or branch of a business.

Estimate of Cost.-A calculation of the probable cost of a commodity.

Factory. The place in which manufacturing operations are carried on.

Factory Accounts.-The systematic registration for purposes of account of transactions appertaining to manufacture. Factory General Charges. The general expenses incurred in the factory which cannot be directly charged to any particular Order No.

Factory General Charges Book. The book in which the Factory General Charges are collected.

Fixed Capital. That part of the capital of a firm which consists of the instruments of production of a more or less permanent character.

Fixed Plant. The machinery and appurtenances required for the purpose of manufacture, and permanently located in one position in a factory. (Distinguished from Loose Plant and Tools, q. v.)

Foreman. A superintendent of a floor, wing, or shop in a factory, or of a set of men.

Fuel Summary Form.-A form summarising the various items of cost in the delivered price of fuel.

General Charges. (See ESTABLISHMENT EXPENSES.)

General Stores Account.-The account in the Commercial Ledger in which the receipts and issues of stores, as recorded in the Commercial Books, are collected.

Going Concern.-A business the efficiency of which, for the purpose of profit, is maintained.

Goodwill. The value pertaining to the clientèle, or interest in the business.

GLOSSARY OF TERMS.

235

Indirect Expenses.-Outlays not directly remunerative. (Distinguished from General Charges and Establishment Expenses, q. v.)

Indirect Factory Expenses.-Outlays made in the factory which are not directly remunerative. (Distinguished from Factory General Charges.)

Inventory.-A detailed and descriptive catalogue of properties. Invoice. If received, an advice of indebtedness by the firm. If issued, an advice of indebtedness to the firm.

Invoice Allocation (or Bought Day) Book.-A commercial book in which invoices for goods purchased are entered and analysed.

Invoice Register Book.-A commercial book in which the invoices received are registered.

Joint Stock Company.-An association of individuals who combine by the subscription of capital to carry on a busi

ness.

Labour. That factor in the cost of production which in a given trade represents the work of adapting materials.

Leading Hand.-The senior hand of a floor, wing, or shop in a factory, or of a gang of men.

Liabilities. The debts and obligations of a firm. (Opposed to Assets, q. v.)

Loose Plant and Tools.-The machinery, tools, and appurtenances required for the purpose of manufacture temporarily located in any position in a factory. (Distinguished from Fixed Plant, q. v.)

Magazine. (See STORES.)

Maintenance.-The preservation of the efficiency of fixed

capital.

Manufactory.-(See FACTORY.)

Manufacturing Account.-The Account in the Commercial Ledger which shows the value of the Stock Orders or goods in course of manufacture.

Manufacturing Order.-(See STOCK ORDER.)

Market Price. The price at or about which all other similar commodities are being sold in the same place. (Distinguished from Book Value, q. 7.)

Material Stores.-That factor in the cost of production which represents the raw material of trade employed in the manufacture of commodities.

Obsolescence. The process by which an article before it is

worn out falls either wholly or in part into desuetude in a

certain trade, and as a result is no longer of current application in that trade.

Order Form.-An instruction to a vendor to supply material or do work.

Orders Received Book.-A commercial book recording the orders received.

Outworks Time Record.-A form used by employés engaged outside the factory, showing how their time has been spent.

Overlooker. -A supervisor of labour.

Overtime. Time worked beyond the normal period of employment in the factory.

Overtime Book.-A factory book in which the timekeeper records the overtime made.

Overtime Comparison Book.-A book in which comparison is made between the cost of ordinary time and overtime. Overtime Return.-A return showing the overtime worked in the factory during a certain period.

Patents Account. The account in the commercial books which records the book value of patents.

Patterns. The types to and from which articles are made. Petty Cash Book.—A commercial book recording small cash transactions.

Piece Work. Work paid for by the piece or job. (Distinguished from work paid by time.)

Piece Work Analysis Book.-A book in which the piece work returns are analysed and a comparison instituted as to the relative value, as regards the product, of time and piece wages.

Piece Work Return.-A factory form used by employés engaged on piece work.

Plant. The machinery and appurtenances required for the purpose of manufacture. (Vide Fixed Capital, Fixed Plant, Loose Plant.)

Plant and Buildings Ledger.—A book in which are collected all entries relating to fixed and loose plant and buildings. Plant Debit Note.-A factory form used to record the employment of plant.

Plant Debit Summary.-The form on which Plant Debit Notes are summarised.

Prime Cost. The original or direct cost of an article. (Distinguished from Cost of Production, q. v.)