where the transaction is to be entered upon your books, to state Cash Borrowed, or Cash Lent, as the case may be. This will show clearly the nature of the transaction.

The cost of each item is found by multiplying the cost of a unit by the quantity. See Adams's Revised Arithmetic, T 77.

PARTNERSHIP.

¶ 17. When two or more persons unite a part, or the whole of their money, goods, or labor, for the prosecution of business, they form a Company, and their business is called Partnership business.

The name by which a company is known, and under which it transacts business, is called a Firm, and each member of a company or firm is called a Partner. For example, Fish & Stanard is the name under which Messrs. Fish and Stanard transact business; consequently the firm is Fish & Stanard.

The name of every member of a company is not always in the firm. Leonard, Bostwick & Co., is the firm under which Messrs. Leonard, Bostwick, and some other person or persons, transact business. So, F. P. Rowley & Co. denotes that F. P. Rowley has one or more partners in business. Partners whose names are not in the firm are called Silent Partners.

Capital or Stock is the money, merchandise, lands, or any other property employed in trade.

Joint Stock is the stock of a company.

Dividend is the gain to be shared among the partners.

An Assessment is a tax, or specific sum, exacted of each partner in proportion to his share of the Capital Stock, for the purpose of defraying expenses, or of meeting losses sustained by the company.

INVENTORY.

T 18. On commencing business, it is customary for the person or firm so commencing, to enter on the first page of the Day-book to be used in

17. Company. Partnership business. Firm. Partner. Example of a firm. Leonard, Bostwick & Co. F. P. Rowley & Co. Silent partners. Capital or stock. Joint stock. Dividend. Assessment.

18. An inventory. The first fact to be stated in taking an inventory. The second fact. The third. The fourth. Example. The meaning of cash in deposit.

the prosecution of said business, a statement of all the property in trade, and also of the liabilities of the person or firm. This statement is called an Inventory.

An inventory must exhibit the following facts in detail:

1st. A statement of all the cash on hand or in deposit.

2d. A description of the property invested, whether merchandise, notes, bonds, mortgages, houses, lands, cattle, or property of any other description.

3d. Dues to the person or firm on mortgages, bonds, notes, ac

counts, &c.

4th. A statement of all the liabilities of the person or firm, as by mortgages, bonds, notes, accounts, &c.

Example. If the person commencing business be a farmer, he will enter the amount of cash on hand or in deposit; the number of acres in his farm, and its value; the quantity of produce on hand, and its value; the number of horses, cattle, sheep, hogs, &c., and their respective values; his stock of farming utensils, and their value; and debts due him on mortgages, bonds, notes, and accounts. Then, after drawing a line across the page, he will enter a statement of his indebtedness, i. e., all the demands which others have against him. If there be a mortgage on his farm, he will enter that as the first item in the second statement. Then must follow a statement of his liabilities by bonds, notes, and accounts, in their order, as seen in the following

INVENTORY.

T19. Form of Inventory on first page of a Farmer's Day-book. William R. Powers, Seneca, N. Y., April 1st, 1848.

Inventory of my Effects, viz.;

I have in Cash on hand,

21

$ 76 31

NOTE.-In order that Wm. R. Powers may know whether he is making or losing money, he must take an inventory of all his effects and liabilities as often as once a year. If his net capital is increased, he is making money; if it is diminished, he is losing, and should either curtail his expenses or quit the business.

* A schedule is a piece of paper containing an inventory of goods. It here means an inventory of accounts, the amount only being entered in this inventory.

19. Heading page on which inventory is entered. Each item in "liabilities." Schedule. Net capital.

Each item in "effects." How ascertained. Note.

LEDGER.

T20. THE LEDGER is the book into which the accounts of the Daybook are carried or transferred in a summary form.

In this book are collected all the items scattered through the Day-book, and so arranged that each individual account stands by itself, thereby presenting, at a glance, the true state of any person's account.

It is commonly ruled as shown in the following

Form of Ledger Page.

Name of the person whose account occupies the page.

Cr.

page.

20. The Ledger. Arrangement of accounts in this book. Form of Ledger

FORMS OF LEDGER ENTRIES.

23

T21. The uses of the several corresponding columns of the page are as follows:

In the first column of each part of the page are written the years and months.

In the second, the days of the month.

In the third, the articles.

In the fourth, the pages of the Day-book from which the entries are taken.

In the fifth and sixth, the amounts of the articles; in the fifth dollars, and in the sixth cents.

FORMS OF LEDGER ENTRIES.

¶22. In making entries in this form of Ledger, it is not customary to give a full description of the property or transaction. This is not considered necessary, because the transaction is fully described in the Daybook, to which reference can be made at any time, the figures in the fourth column of either division of the Ledger page serving as an index to the pages of the Day-book, on which the record of the transaction may be found.

If but one article be specified in the Day-book entry, it is usually described in the Ledger entry. But, if two or more articles are specified in the Day-book entry, they are not named in the Ledger entry, but are embraced under the general term Sundries, which signifies several, or several things.

¶ 23. If but one article be sold to a person, No. 1 of the following forms will be the form of Ledger entry.

If two or more articles be sold, No. 2 will be the form.

If but one article be purchased of a person, No. 3 will be the form of Ledger entry.

21. Use of the first column in each part of the page. The second. The third. The fourth. The fifth and sixth.

22. Description in Ledger of transactions. Reason. One article specified in the Day-book. Two or more articles specified in the Day-book. Sundries.

23. Form of Ledger entry in case one article is sold. Form in case two or more articles are sold. Form, if one article be purchased. Form, if two or more articles be purchased. Form, if one article be sold, and one purchased. Form, if two or more articles be sold, and one purchased. Form, if one article be sold, and two or more purchased. Form, if two or more articles be sold, and two or more purchased. Omissions in the forms given. The reason. Explanation of form No. 3.