The following items will be found written up in the Day Book, Cash Book, Ledger, Bills Receivable and Bills Payable Books of succeeding pages. They should be care-fully traced through the respective books and the reasons for their being so entered will be evident. Then the learner will do well to procure paper properly ruled and write up the transactions for himself. First reproduce by copying and afterward try to write up the whole set from the list given here ; then compare and correct errors. In this way he will be able to master the subject.

Jan. 1. Began business with $4,000 Bought goods as follows of

E.J.White, 300.40

Henry Short, 482.00

Mrs. Pearce Cook, 600.00

Ralph Wilson, 248.60

Sold merchandise for cash, 29.60

Jan. 2. Paid E. J. White, 160.00

Paid Henry Short, 240.00

Paid Mrs. Pearce Cook, 300.00

Paid Ralph Wilson, 122.00 Gave notes to

E.J. White, 2 mos., 80.00

Henry Short, 2 mos., 180.00

Mrs. Pearce Cook ,3mos., 120.00

Ralph Wilson, 1 mo., 80.00 Bought merchandise of

M. Young, 397.28 Jan. 3. Sold to Jones & Co. merchandise as follows :

Paper, 48.00

Books, 52.80

Pads, 44.00 144.80

Received Jones & Co. merchandise, 72.40 3 mos. note, 72.40

Sold A. Daniel, merchandise, 101.60

Received from A. Daniel, cash, 40.00 3 mos. note, 61.60 Jan. 5. Sold to Bowers & Co., merchandise, 148.64

Received from Bowers & Co.,

2 mos. note, 148.64 Paid M. Young, note paid to me by A. Daniel, 61.60

Also the 2 mos. note of Bowers & Co., 148.64 210.24

Bought of W. Henderson, merchandise, 240.00 Sold him merchandise, 164.60 Sold for cash, merchandise, 13.20 Jan. 6. Paid wages, 8.44 Paid expenses, 13.2 O Feb. 5. Paid note, Ralph Wilson, 80.00 Mar. 5. Paid note, E. J. White, 80.00 Paid note, Henry Short, 180.00 Apr. 5. Paid note, Mrs. Pearce Cook, 120,00 Received note of Jones & Co., 72.40 Apr. 7. A. Daniel's note returned by M.

Young not honored, 61.60

Apr. 8. Paid rent, 160.00

Paid personal tax, 40.48

Paid real estate tax, 30.40

May 1. Sold merchandise to

Mackay & Co., 40.00

M. H. Smith, 36.48

A. M. Jenks, 160.00

E. Soley, 240.00

F.M.Johnson, 148.40 Jun. 1. Received the following notes at

3 mos.:

Mackay & Co., 40.00

M. H. Smith, 36.48

A.M. ], 160.00



The purchase and payment for the Panama Canal, in 1904, by the United States was the greatest transaction in the history of finance. This picture shows men packing for shipment $6,500,000, being the first instalment paid by the United States to France for the Panama Canal.



This page and others of the series have been prepared for this work by an expert accountant and by Professor R. S. Collin*, the Eminent Business College Instructor ana Penman. The simplest and most approved forms used in Bookkeeping are shown. Full instructions are given in the text

A Trial List Of Transactions 221

Single Entry


The Journal - On page 59 all the items of the trial list that belong to the Journal will be found in their proper places. Page 54 is prepared to show you how these will appear when neatly written in the Journal. As the $4,000.00 item does not appear in the Ledger account, but does appear in the cash, it is not carried out to the dollars' and cents' column. You will note that in the Journal in the open unruled space at the top is the date of opening the business. Each succeeding date of that month, as 3, 5, 7, and so on, is written down the centre of the page at the opening of that day's transactions. Each transaction has below it'a line in black, broken in the centre with two dots. At the left in a column is the folio in the Ledger to which that item is carried. Cr. and Dr. indicate on which side of the account in the Ledger the item is posted. The account is credited with what is received from it, and debited with what is sold to it, as will be seen. Where two or more items are specified, the amount of each item appears in the first column for dollars and cents, and the total amount is carried to the second column.

The Cash Book

On pages 56 and 57 is shown how the two sides of the Cash Book should be written, the debit side being on the left and the credit side on the right, facing each other. On pages 60, 61, the single entry cash for this is shown complete. Enough should be told in entering each account to explain the transaction. It will be noticed that there are rulings at the left for the date and Ledger folio, and the right two columns for dollars and cents, the second of which is used in balancing the account at the end of the month, or at any given period. The line down the centre of the page of the Cash Book is usually a pale blue line for convenience of the bookkeeper in arranging his explanation to the right of it. It is not a necessary line. At the end of each month it is well to balance the Cash Book, and begin the next month by bringing down the balance on hand. The debit side of the cash account represents the money received, the credit side the money paid out. The debit side should always exceed the credit side in the cash account. Balance on Hand, marked with a star, is usually written in red ink, as also is the double line drawn beneath. You should also note where the single and double horizontal lines begin and end.

A Trial List Of Transactions 222