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 588 B O O K-K Now, to make the method of doing this plain and intelligible to a learner, it muft be obferved, that, by the word Balance, merchants underftand the difference betwixt the fums on the Dr and Cr fides of any accompt. Which difference being entered on the defedive fide, the^ accompt is faid to be balanced ; that is, to have the fums of the Dr and Cr Tides evened, or made equal. And the fides of the feveral accompts throughout the Ledger being thus evened, and the total fums formally fet down on the foot of the accompts, the Ledger is faid to be balanced, clofed, or finifhed. Again, in order to underfland how the new Inventory is formed from the old Ledger, it muft be obferved, that thefe balances or differences of the fides of accompts, are of different kinds. In fome accounts, the balance is, the gain or lofs made upon the fale of goods ; in fome, the balance is, the price of goods remaining unfold; and in others, it is a debt due to, or by the merchant, -fyc. Now, balances of the firft kind, viz. of gain or lofs, muft be diftinguifhed from the reft, and carried to the Profit and Lofs accompt; which being done, the balance or difference of its fides, will be the gain or lofs made upon one year’s trade, and goes to the Stock-accompt. All the other kinds of balances muft be brought together into one fpace or folio, under the title of Balance-accompt, and are the very articles of which the Inventory is made up. The moit natural method of balancing the Ledger is, firft to point out what is contained upon the Dr and Cr fides of each accompt, and confequently what the balances are ; and then, to fhew the mercantile and approved way of going to work, in doling the Ledger, colle&ing the balances, and converting them into a new Inventory. This we fhall do in the form of problems. P R O B. I. What the Balances 'in the Accompts of proper Tracle are, § i. JVhat the Balances in proper domejlic Trade are. i. Cafh-accompt, N° I. and 61. Contains, upon the Dr fide, the ready money which the merchant had at firft, or when the books were begun ; together with all he has received fince that time. The Cr fide contains all the payments he has made, or the money he has given out. So that the difference of the two fides is, the ready money he has by him; and therefore this accompt is clofed, by being credited by Balance, for the faid difference. 2. An Accompt of Goods, N° 2. 3. II. 12. 14. 18. 20. 21. 27.  or giving it credit by Profit and

E E P I N G. Lofs, for the lofs, if the Dr fide be heavieft. N° 2. 11. 14. 18. <bc. 2. When none of the goods are difpofed of, which will appear by the Cr fide being empty, then it is clofed by Balance, for the whole fum on the Dr fide. N° 21. 27. isc. 3. When only part of the goods are difpofed of, which will appear by the inequality of the quantity-columns; this cafe requires commonly two clofing entries, viz. Firft, the accompt muft be credited by Balance, ibr the goods remaining, valued at the prime coft; which equals the inner columns : After this, if the money-columns be unequal, it muft be made Dr to, or Cr by Profit and Lofs, for the gain or lofs made upon what are fold; which evens the outer columns, and clofes the accompts. N° 3. 12. Note 1. If the goods are of different kinds or prices, • as they fhould be diftinguifhed, when pofted to the Ledger, by different numbers, or feparate inner columns; fo care muft be taken, in balancing the accompt, to mention the kind of goods remaining unfold, and to value them at their own prices. Note 2. A merchant may, at any time, know what goods he has on hand, by comparing the inner columns of the Accompts of Goods, without being put to the trouble of infpefting his warehoufe, and weighing or meafuring the goods themfelves. Note 3. If there be inlack or outcome of goods, that is, defeft or excefs in weight or meafure, it will happen, when the goods are all difpofed of, that the inner columns will not be equal. In this cafe, the balance or equality muft be reftored, by inferting as much in the deficient column as will make it equal to the other, writing the words Inlack, Broken Loft in weight, Ullaged, Outcome, or the like, before it, as the reafon why it is added: but nothing goes to the money-columns. 3. Plate and Jewels. This account contains, on the Dr fide, the things of that kind you are poffeffed of; and, like an accompt of goods remaining on hand, is clofed, by being credited by Balance. 4. Perfonalaccompts, N° 5. 6. 7. 9. 10. 13. 15. fyc. Contain, upon the Dr fide, the debts due by the perfon to the merchant, with the payments made upon any other fcore by the merchant to him. The-Cr fide contains the payments made by the perfon to the merchant, with the debts due by the merchant to the faid perfon, upon any other dealings. So that there are here two cafes. ft. If the Dr fide be heavieft, the difference is a debt due by the perfon to the merchant. N° 13. 24. <bc. idly. If the Cr fide be heavieft, the difference is a debt due by the merchant to the perfon. N° 15.57. J^n^in both cafes the accompt is clofed, by making it Dr to, or Cr by Balance, for the difference of its fides. 5. Bills receivable, N° 25. This is a general perfonal accompt, and contains upon the Dr fide, bills accepted, and payable to the merchant. The Cr fide contains the payments he has received. So that the difference of its fides (if there be any) is, what is yet unpaid : And the accompt is clofed, by giving it credit by Balance, for the faid difference. 6. Bills