The different books used in bookkeeping will be learned as we follow the forms given on the succeeding pages. The three important ones are:

The Cash Book. This is used to show all receipts and payments of cash, and also all personal debits and credits for cash, which must be entered in the ledger.

The Day Book. This book is used to keep a record of transactions for which cash is not paid or received, but the amounts of the transactions are to be entered in their proper places in the ledger, as indicated in the day book. Every transaction entered in the day book indicates that the person or account so entered is either debtor (Dr.) or creditor (Cr.) in reference to the one who owns or manages the business represented by the book. This book is generally ruled with two amount columns, the first being for the items of transaction, and the second for the total of these items.

The Ledger. This is not a book of original entries, but is a record of what has been first entered in another book, such as the Cash Book and Day Book, Notes Receivable and Payable Books, Blotter, and such other books as may be required, depending on the nature and extent of the business; hence, items do not appear in the ledger; but in a column ruled for that purpose is placed the folio or page of the book from which the entry is posted, as entries made in day book and cash book give a history of the transaction. They are sometimes called Historical Entries.

It is best to observe the, following directions for entering items in the cash book and day book:

1. Be uniform in describing transactions of the same kind.

2. Every transaction should have an entry made on the day on which it occurs.

3. The quantity and price of each item should be given iu entering sales on account; likewise in recording purchases on account.

4. Do not erase or interline any entries made in cash book or day book. If any errors are made mark them " Void" and make the entry a new one. This will show that no fraud was intended if the books are examined in court. Corrections and erasures may be made in ledger and other books, although these should be avoided.

5. Exercise great care in writing figures, as corrections cannot be easily made.