Part 2 — INDEX
Reading edition
A
Acceptances, 56
definition of, 11
Accommodation note, definition of, 11
Account books
classes of, 42
definition of, 11
Account current, definition of, 11
Account sales, definition of, 11
Accounting charts, 309-323
explanation of chart, 316
of manufacturing business, 313
of small trading business, 310
Accounts
classification of, 90
definition of, 11
merchandise, 71
merchandise inventory, 100
nominal, 70
personal, 69
profit and loss, 97
purchase, 71
real, 69
representative, 70
sales, 72
Accrued interest, definition of, 12
Acknowledgment, definition of, 12
Ad valorem, definition of, 12
Administrator, definition of, 12
Adventure, definition of, 12
Advice, definition of, 13
Affidavit, definition of, 13
Agent, definition of, 13
Agreement, definition of, 13
Allowance, definition of, 13
Annual statement, definition of, 13
Annuity, definition of, 13
Antedate, definition of, 13
Appraise, definition of, 14
Appreciation, definition of, 14
Approval sales, definition of, 14
Arbitrate, definition of, 14
Articles, definition of, 14
Assets
definition of, 14
fictitious, 78
fixed, 77
floating, 78
passive, 78
Assign, definition of, 14
Assignee, definition of, 14
Assignment, definition of, 14
Assignor, definition of, 14
Association, definition of, 14
Attachment, definition of, 14
Audit, definition of, 14
Auxiliary, definition of, 14
Average, definition of, 14
B
Balance, definition of, 14, 39
Balance sheet, 100, 139
definition of, 14
Balance of trade, definition of, 15
Bale, definition of, 15
Bank balance, definition of, 15
Bank deposits, 56
check books, 56
depositing cash, 57
indorsement of checks, 57
pass book, 57
signature card, 56
Bank draft, definition of, 15
Bank note, definition of, 15
Bank pass book, definition of, 15
Bankrupt, definition of, 15
Bill, definition of, 15
Bill of exchange, definition of, 16
Bill head, definition of, 16
Bill of lading, definition of, 16
Bill of sale, definition of, 16
Bills payable, definition of, 18
Bills receivable, definition of, 18
Bills receivable and bills payable, 54
Blanks, definition of, 18
Blotter, definition of, 18
Bond liability, 239
Bonded goods, definition of, 18
Bonds, 238
classes of, 239
definition of, 18
expense of issue of, 241
interest on, 241
premium on, 241
Bonus, definition of, 18
Book account, definition of, 18
Bookkeeping
for corporation, 205
definition and objects of, 37
methods of, 39
Brand, definition of, 18
Broker, definition of, 18
Brokerage, definition of, 18
Bullion, definition of, 18
C
Call loans, definition of, 18
Cancel, definition of, 18
Capital, definition of, 18
Capital of corporation, 199
Capital stock, 199
definition of, 18
Capitalization, 199
capital, 199
capital stock, 199
treasury stock, 200
watered stock, 201
Cartage, definition of, 18
Cash book, 43
posting from, 89
Cash discounts, 94
allowed, 94
earned, 95
entering in cash book, 94
Cash dividend, declaring, 224
Cash sales, definition of, 18
Center-ruled ledger, 143
Certificate of stock, definition of, 18
Certified check, definition of, 20
Charges, definition of, 20
Chart, definition of, 20
Charter, definition of, 20
Charting the accounts, 309
Check, definition of, 20
Check books, 56
Clearing house, definition of, 20
Closing an account, definition of, 20
Collateral, definition of, 20
Commercial abbreviations, 35
Commercial paper, definition of, 20
Commercial signs and characters, 37
Commercial terms, dictionary of, 11
Commission, definition of, 20
Commission merchant, definition of, 20
Common law, definition of, 20
Common stock, definition of, 200
Company, definition of, 20
Compromise, definition of, 20
Consideration, definition of, 22
Consignee, definition of, 22
Consul, definition of, 22
Contingent assets and liabilities, definition of, 22
Contingent fund, definition of, 22
Contra, definition of, 22
Contract, definition of, 22
Conveyance, definition of, 22
Copyright, definition of, 22
Corporation accounts, 195-270
bonds, 238
bookkeeping, 205
changing books from partnership to corporation, 227
closing transfer books, 204
entries on corporation books, 228
entry of stock for promotion, 222
reserves and their treatment, 235
stock donated to employes, 229
when stock subscriptions are never full paid, 232
surplus and dividends, 223
treatment of loss, 225
Corporation bookkeeping, 205
books required, 206
entries in stock books, 215
opening entries, 209
Corporations
capitalization, 199
classification of, 195
creation of, 197
definition of, 195
dividends, 203
management of, 201
Corporations
management of
powers of corporations, 203
powers of directors and officers, 202
stockholders' rights, 203
stock certificate, 199
stockholders, 197
stock issued for promotion, 221
stock subscriptions, 201
Counterfeit, definition of, 22
Coupon, definition of, 22
Coupon bond, definition of, 22
Credentials, definition of, 22
Credit, rules for, 38
Creditor, definition of, 22
Cumulative preferred stock, definition of, 200
Currency, definition of, 22
D
Day book, 43
Debenture, definition of, 22
Debit
definition of, 22
rules for, 38
Deed, definition of, 22
Defalcation, definition of, 22
Deferred bonds, definition of, 23
Delivery receipt definition of, 23
Demand note, definition of, 23
Departmental records, 148
Deposit, definition of, 24
Depositing cash, 57
Depreciation, definition of, 24
Discount, definition of, 24
Discount and exchange, 56
Discounts allowed, 94
Dishonor, definition of, 24
Dividend, 203
definition of, 24
Dividend book, 208
Dormant partners, 165
Double entry, 39
advantages of, 40
books used in, 43
principle of, 40
Doubtful, definition of, 25
Draft
definition of, 24
journalizing, 113
Drawer, definition of, 25
Drayage, definition of, 25
Due bill, definition of, 25
Dunning, definition of, 25
Duplicate, definition of, 25
Duty, definition of, 25
E
Earnest, definition of, 25
Embezzlement, definition of, 25
Exchange, definition of, 25
Expense account, 80
heat and light, 81
insurance, 81
interest, 81
labor, 82
out freight and express, 81
rent, 81
salaries, 82
taxes, 81
Exports, definition of, 25
Extend, definition of, 25
F
Face value, definition of, 25
Facsimile, definition of, 25
Fictitious assets, example of, 78
advertising, 78
Financial statement, definition of, 25
Fiscal, definition of, 25
Fixed assets
definition of, 25
examples of, 77
furniture and fixtures, 77
horses and wagons, 77
real estate, 77
Fixed charges, definition of, 26
Fixtures, definition of, 26
Floating assets, examples of, 78
accounts, 78
cash, 78
merchandise, 78
notes or bills receivable, 78
Folio, definition of, 26
Footing, definition of, 26
Foreign exchange, definition of, 26
Forms
account sales, 12
acknowledgment, 13
adjustment journal and departmental purchase book, 154
balance sheet, 101
bill, 15
bill of exchange, 17
bill of lading, 16
bill of sale, 19
bills payable, 55
bills receivable, 55
cash book, 44, 131
cash book including bank account, 156
cash book with center column for particulars, 177
cash book with column for private ledger accounts, 306
cash disbursement book, 296
center-ruled ledger, 143, 157-161
certificate of stock, 21
chart of profit and loss accounts, 311, 312
check register, 260
classified ledger accounts, 180-188
closing entries, trading and profit and loss account, 140
combined purchase ledger and voucher system, 303
daily report, 247
day book, 43
day book or blotter, 121
delivery receipt, 24
demand note, 24
departmental sales book, 155, 178
departmental sales and purchase books, 179
draft, 25
endorsement, 58
file showing method of indexing vouchers, 293
installment certificate, 208
inventory sheet, 137
invoice register, 258
journal, 74
journal entries recording all transactions, 128-130
journal ruled retail ledger, 132-137
journal showing opening entries for partnership, 176
journal voucher for adjusting entries, 284
lease, 27
ledger accounts, classified, 180-188
ledger with journal ruling, 120
manufacturing account, 99
manufacturing ledger with closing entries, 320-322
merchandise inventory, 100
monthly recapitulation and distribution sheet, 303
opening entry in journal, 122
order, 29
order book, 42
pay-roll, 249
power of attorney, 32
profit and loss account, 99
promissory note, 31
proprietor's account, 99
purchase book, 75
purchase ledger, 267
receipt, 33
retail ledger, journal ruled, 132-137
sales book, 74
scale book, 144
signature card, 57
special account, 12
statement, 34
statement of incorporation on stock plan, 198
trading account, 98
transfer book, 206
trial balance, 138, 162, 269
unit system of voucher accounting, monthly recapitulation for, 300
voucher, 35
voucher, back of, showing distribution, 277
voucher with check attached, duplicate, 283
voucher check in loose-leaf form, duplicate, 280
voucher check that requires no folding, 280
voucher check, triplicate form of, 282
voucher and check combined, 278
voucher distribution sheet, 281
voucher register showing entries, 294
voucher registers, typical forms of, 286
voucher to be receipted and returned, 276
vouchers paid, card index of, 292
Freight, definition of, 26
G
Gain, definition of, 26
Gauging, definition of, 26
Going business, definition of, 26
Goodwill, definition of, 26
Gross, definition of, 26
Gross profit, transfer of, 99
Guarantee or guaranty, definition of, 26
Guaranteed stock, 200
H
Honor, definition of, 26
Hypothecate, definition of, 26
I
Import, definition of, 26
Income, definition of, 26
Income bonds, definition of, 26
Indemnity, definition of, 26
Indorse, definition of, 26
Indorsee, definition of, 26
Indorsement of checks, 57
Indorser, definition of, 28
Infringe, definition of, 28
Installment, definition of, 28
Installment book, 207
Insolvent, definition of, 28
Instant, definition of, 28
Insurance policy, definition of, 28
Interest, definition of, 28
Inventory, 137
definition of, 28
Investment, definition of, 28
Invoice, definition of, 28
Invoice or bill, 46
J
Job lot, definition of, 28
Jobber, definition of, 28
Joint stock, definition of, 28
Joint stock companies, 196
Journal, 45
posting from, 88
Journal vouchers, 283
Journalizing drafts, 113
when we accept draft, 114
when discounting time draft, 114
when we pay an acceptance, 114
when we pay a sight draft, 114
when our sight draft is paid, 113
Journalizing notes, 107
when collected by bank, 107
when discounted, 107
when discounted note is not paid, 109
when note drawing interest is discounted, 108
when note drawing interest is paid, 108
when note is past due, 109
when note is renewed, 110
when our note has been discounted, 111
when paid, 107
when received, 107
when renewed note has been discounted, 110
when we discount our note, 112
when we give or pay note, 111
when we pay for goods with our note, 112
when we pay our note with interest, 112
when we renew a note, 112
when we renew our discounted note, 113
Journalizing, rules for, 82
L
Leakage, definition of, 28
Lease, definition of, 28
Ledger, 46
arrangement of accounts in, 91
Ledger accounts, sample, 92, 93
Ledger index, 47
Legal tender, definition of, 28
Lessee, definition of, 28
Letter of advice, definition of, 28
Letter of credit, definition of, 28
Liabilities, definition of, 29
License, definition of, 29
Liquidation, definition of, 29
Loss and gain, definition of, 29
M
Maker, definition of, 29
Manifest, definition of, 29
Manufacturing account, 98
Manufacturing and cost accounts, 242
accounts used
factory assets, 243
factory expenses, 244
summary accounts, 245
balance ledger, 250
expense inventory, 250
expense liability, 250
manufacturing data, 256
pay-roll records, 248
routine followed, 245
sample transactions, 251
Maturity, definition of, 29
Mercantile agency, definition of, 29
Merchandise, definition of, 29
Merchandise account, 71
Merchandise inventory account, 100
Minute book, 207
Money order, definition of, 29
Monopoly, definition of, 29
Mortgage, definition of, 29
Mortgagor, definition of, 30
N
Negotiable, definition of, 30
Net, definition of, 30
Net profit, transfer of, 99
Nominal, definition of, 30
Nominal account, 70
Nominal partners, 164
Non-cumulative preferred stock, 200
Notes, journalizing, 107
O
Obligation, definition of, 30
Open account, definition of, 30
Opening entries, definition of, 30
Option, definition of, 30
Order book, 43
Orders, definition of, 30
Original entry, definition of, 30
Ostensible partners, 164
Overdraw, definition of, 30
P
Par, definition of, 30
Partnership, definition of, 30
Partnership accounts, 164-193
capital and personal accounts, 165
closing the books, 166
division of profits, 191
illustration of closing entries, 166
interest on investment, 165
kinds of partners, 164
opening the books, 166
participation in profits, 165
partnership, defined, 164
partnership agreements, 164
sale of partnership, 189
sample transaction, 167-175
Pass book, 57
Passive assets, examples of, 73
goodwill, 78
patents, 78
speculative, 78
Pay-roll records, 248
Payee, definition of, 30
Per annum, definition of, 30
Per cent, definition of, 30
Per diem, 30
Personal accounts, 69
definition of, 30
Personal property, definition of, 30
Petty cash
definition of, 30
treatment of, 58
Post, definition of, 30
Postdate, definition of, 30
Posting, 46
from cash book, 89
from journal, 88
routine, 88
Power of attorney, definition of, 30
Preferred stock, definition of, 30, 200
Premium, definition of, 31
Present worth, definition of, 31
Private ledger, 304
advantages of, 304
how operated, 305
manufacturing accounts in, 306
Proceeds, definition of, 31
Profit and loss, definition of, 31
Profit and loss account, 97
manufacturing, 98
trading, 97
transfer of gross profit, 99
transfer of net profit, 99
turnover, 98
Promissory notes, 54
acceptance, 56
bill book, 54
bills payable, 54
bills receivable, 54
definition of, 31
discount and exchange, 56
Promotion, stock issued for, 221
Pro rata, definition of, 31
Protest, definition of, 31
Purchase account, 71
Purchase book, 45
Purchase ledger and invoice file combined, 301
Q
Quotation, definition of, 31
R
Ratify, definition of, 31
Raw material, definition of, 31
Real account, 69
Real estate, definition of, 31
Rebate, definition of, 31
Receipt, definition of, 31, 273
Receiver, definition of, 31
Recording transactions, 46
Remittance, definition of, 31
Renewal note, definition of, 33
Rent, definition of, 33
Representative account, 70
Reserves for bad debts, 236
Reserves for buildings in hazardous undertakings, 236
Reserves for depreciation, 236
Reserve funds, 237
Reserves for patents, franchise, goodwill, 236
Reserves for permanent improvements on leased property, 236
Resources, definition of, 33
Retail business, 119
balance sheet, 139
books used, 119
closing the books, 138
exercise, 141
inventory, 137
opening the books, 119
proprietor's account, 120
sample transactions, 123-127
statements, 120
Retail coal books, 142
sample transaction, 144
uncollectible accounts, 143
Revenue, definition of, 33
Revenue accounts, 80
Revenue receipts, 80
Revoke, definition of, 33
Royalty, definition of, 33
S
Sale of stock below par, 205
Sales, 72
Sales books, 45
Sales tickets, 147
Sample ledger accounts, 91
Sample transactions, 72, 83, 101, 149
Schedule, definition of, 33
Secret partners, 164
Sight draft, definition of, 33
Signature card, 56
Silent partners, 164
Single entry, 39
Single proprietorship accounts, 119-163
Sinking funds, 237
Solvent, definition of, 33
Statement, definition of, 33
Stock certificate book, 206
Stock dividends, 204
declaring, 224
Stock ledger, 207
Stock register, 208
Stock subscriptions, 201
Stock transfer book, 206
Stockholders, 197
definition of, 33
meetings of, 205
rights of, 203
Storage, definition of, 33
Surety, definition of, 33
Syndicate, definition of, 33
Surplus subdivided, 223
T
Tare, definition, 33
Tariff, definition of, 33
Terms, definition of, 33
Theory of accounts, 11-116
Three-column journal, 82
Tickler, definition of, 34
Time draft, definition of, 34
Trade discount, definition of, 34
Trade mark, definition of, 34
Trading account, 97
Transactions, 46
ledger index, 47
posting, 46
sample, 47, 59, 72, 83, 101, 149
Treasury stock, 200
Trial balance, 90
Turnover, 98
U
Ultimo, definition of, 34
Unit system of voucher account, 298
V
Valid, definition of, 34
Value received, definition of, 34
Void, definition of, 35
Voucher checks, 279
Voucher file, 293
Voucher register, 284
Voucher system of accounting, 273-303
auditing of invoices, 290
combined purchase ledger and invoice file, 301
demonstration of, 293
executing and registering vouchers, 290
filing audited vouchers, 290
filing paid vouchers, 291
indexing vouchers, 292
operation of, 289
paying vouchers, 291
unit system of, 298
voucher file, 293
Vouchers
definition, 35, 273
filing, 290
forms of, 277
indexing, 292
paying, 291
use of, 274
W
Warehouse, definition of, 35
Warehouse receipt, definition of, 35
Warranty, definition of, 35
Watered stock, 201
Way bill, definition of, 35
Wholesale, definition of, 35
Working capital, definition of, 35