ft, R CHA P. IV. Of Pofting and Balancing the Leger. ft, In Pofting the Leger. EGISTER in an index, or alphabet, every account as it is raised in the Leger, inferting perfonal accounts under the proper letter in the alphabet that begins their firname. 2d, To every account of goods, affign a Quantity Column, in which must be inferted, the weight, number, meafure, &c. both in booking the purchases, and sales. 3d, Infert the Date of every tranfaction in a column allotted for the purpose, and then exprefs the transaction itself in terms as concife and intelligible as poffible, commencing the narrative on the Dr. fide with Te, and on the Cr. fide with By; after To follows the Cr. and after By the Dr. and the circumftances or conditions of the entry. 4th, When the narrative part is finished, the number of the Folio of the Cr. after To must be entered in the left hand Folio Column, and the number of the Dr. Folio after By in the right hand Folio Column; and, laftly, the fum refpecting fuch Dr. or Cr. in the Money Column. 5th, The pofting part of the entry being thus finished, turn back to the Journal, which muft always lie open before you, when you Poft in the Leger, and enter the Numbers of the Folios, where Ipaces are opened for the particular Drs. or Crs. of the Journal Entry thus pofted, in the Margin of the Journal; which will not only point out where you left off Pofting, but direct you, upon a review of your Books, to any particular Dr. or Cr. in the Leger, without having recourfe to the Index. Dr. and Cr. Folios are diftinguished in the Journal by a line drawn between them. 6th, If the space allotted for any account fhould prove too little, it may be tranfpofed to the next empty Folio, by Crediting the account for the fum of the Dr. part, Debiting it for the fum of the Creditor part in the Old Account, and reverfing these entries in the New Account. 2. In Balancing the Leger. 1, Begin with the firft Account opened in the Leger, and proceed regularly through the whole, omitting only Stock, and Profit and Lofs, which must be left open to the close. 2d, There are only two general Accounts to which the Balances that appear in the Leger Accounts can be carried, viz. Balance, and Profit and Lofs. The firft of thefe refpects all debts owing to, or by the Merchant, with all goods on hand, in the hands of factor, fhips, houfes, eftates, &c. To the laft must be carried all loffes and gains which appear from the face of the accounts in the courfe of Balancing, 34, As perfonal Accounts contain on the Dr. fide all that can be juftly charged against them, and on the Cr. all that they can justly charge against the merchant, it follows, that they must be clofed, To or By Balance for the difference of their fides, and the difference carried to the Dr, or Cr. fide of Balance accordingly; only, it must be obferved, that where a lofs, as in the cafe of a compofition, or a gain, as in an Exchange Account, appears, the accounts, in that cafe, muft be Debited to, or Credited by Profit and Lofs for the gain in the one inftance, or lofs in the other, before the balance be truck. 4th, Accounts of Goods contain on the Dr. the prime coft and charges of purchase, and on the Cr. if any thing is wrote at all, the fales of part or of the whole. Wherefore, first balance the Quantity Columns, if the fales are not complete, Credit, by Balance, for prime coft and charges of what remains, filling up the Quantity Column, and Debit Balance Account accordingly, then clote the account, To or By Profit and Lofs, for the lofs or gain, and carry the loss or gain to Profit and Lofs, 5th, The balances in Factorage commence with the Account of Goods, which contains upon the Dr. fide the charges at landing, cellaring, &c. fuch goods, with the commiffion on fales, and the Cr. if it contains any thing at all, the fales in whole or in part; wherefore, if it contains nothing, it is closed by Balance for the Charges; if it contains the fales in part, Debit the Account, to Balance for the Sales made, and Credit it by Balance for the Charges, and reverse that entry in the Balance Account. If the fales are complete, Debit the Account to Profit and Lofs for Commiffion and Wareroom Rent, if that is not done already. Then, compare your advances with your ready money fales, and Debit or Credit your Employer's Account current for the Difference, and carry it to the Account current accordingly; laftly, open a space for your Employer's Account, on Time, and Debit the Account of Goods to his Account on Time for the outstanding Debts, and Credit that Account accordingly... pear 6th, The Balances in Company Accounts, whether they are kept in books with, or apart, from other bufinefs, are the fame as in proper trade: only it must be observed, that whatever profit or loss shall apfrom the balances of the company articles of trade will undoubtedly affect each partner's account in company in proportion to the share he holds of the company capital; and, therefore, the proportion of lofs or gain arifing from all the company articles of trade must be carried to the refpective accounts in company, before the accounts in company can be balanced; and these again will either clofe of them felves, or exhibit a debt in each for, or against the partner, which is carried to Balance, 7th, In order to proceed to Balancing with greater certainty, the Book-keeper generally makes out a paper of Totals, by adding up all the Dr. Sums in one place, and the Cr. Sums in another; and, if the Totals in both are found to agree, the Pofting Work is conclud ed to be right; if they do not agree, there is fomething wrong, either in the Calculation, Journalizing, or Pofting, which must, by a careful examination, be detected, before any Balance is ftruck. 8th, When the Totals are found even, or made fo, by correcting the error which produced the difference; upon one or more sheets of paper, ruled like the Leger, open an Account for Balance, and on another ruled in the fame manner open an Account for Profit and Lofs, to one or other of which Accounts, the difference of every Account in the Leger muft either directly, or indirectly, be carried. Then beginning with the Account of Cash, go over every account in the Leger, excepting Profit and Lafs, and Stack, for these must be left open to the laft, and carry the articles of gain or lofs, found in each of them separately taken, to the proper fide of Profit and Lofs; in like manner, carry whatever remains for you, to the Dr. fide, and againft you to the Cr. fide of Balance; and, having thus gone through all the Accounts in the Leger, add both fides of Profit and Lofs, in the Leger as well as in the Balancing Sheet, and take the difference between them, which will be the net gain or lofs upon your Trade, fince the laft Balance, and close the Profit and Lofs, To or by Stock, for the difference of its fides, which difference muft alfo be carried to Stock accordingly. Laftly, clofe the Stock Account to or by Balance for the difference of its fides; and when that difference, which is your net Stock, is carried to Balance, and the fides of the Balance Account are even, the Books may be pronounced right: for, when the Books were opened, the difference of the Stock Account was the Merchant's net Stock; and when the Gain or Lofs on the Trade, fince is carried to Stock, it will be increased or diminished accordingly, and therefore the difference of the fides will exhibit the net Stock ftill. The Balance Sheet contains on the Dr. all the debts by bills, or open accounts, due to the Merchant, as well as the Cash and other effects he has on hand; and these compofe his grofs Capital. On the other hand, the Cr. fide of Balance contains all the debts due by the Merchant; and it therefore must follow, that the difference between the fides must be a fum equal to his net Stock. 9th, The old Books being thus balanced, new ones fall next to be opened, which is done thus. Open as many spaces in the new Leger, as the Balance Account in the old confifts of articles, and give them the fame titles which were tranfmitted with them from the feveral Accounts to the Balance; upon the Dr. fide of each Account, taken from the Dr. fide of Balance, enter To Stock, and narrate the reafon of the Entry. When the Dr. fide of Balance is totally tranfpofed to the new Books, open a space for Stock, and give it Credit for the fum of the Accounts on the Dr. fide of Balance, and Debit it to Sundries for the amount of the debts on the Cr. fide of Balance. Lastly, give each perfonal Account, on the Credit fide of Balance, Credit by Stock for the amount of his Account, narrating the circumftances, as Time of Payment, &c. and then go on with the occurrences in the new Wafte Book, as before. |