Page:Encyclopædia Britannica, first edition - Volume I, A-B.pdf/712

 592 B O O K - K when kept in-books along with other bufmefs; but are clofed with Profit and Lofs in Company, for the gain or lofs; and with partners /iccompts in company, for their refpe&ive ihares of goods remaining unfold, or at fea. 2. CafJo in Company, Contains, upon the Dr fide, the fums of money given in by partners, and received from dealers for goods fold ; the Cr fide contains the firms kid out; fo that the difference of its fides is the money on hand ; and is clofcd , with Balance in company. 3. Partner his Accotnpt in Company, Contains the fame thing upon its Dr and Cr fides refpedHvely, as when kept in books along with other bufinefs; and, after the accompts of goods and voyages are balanced, will always clofe of itfelf. 4. Partner his Accompt proper. This and all perfnnal accompts, as they contain the fame things upon their Dr and Cr fides, as their parallels, in proper trade, fo they are all clofed With Balance in company. 5. Profit and Lofs in Company. The difference of its fides is the gain or lofs made upon company-trade, and mult be charged Dr to the truftee his Accompt-proper, for his commiflion; after which, it is clofed, (if no Stock-accompt is kept), by being made Dr or Cr to or by Sundries, viz. Each partner his accompt in company, for the refpe&ive lhares of gain or lofs. But if you keep a Stock-accompt in company, then this accompt is clofed with it: and the Stockaccompt is again cloftd with the partners Accompts in company. 6. Balance in Company, Contains, upon the Dr fide, the company’s ready money in the truflee’s hand, with the debts to the company, whether by partners or dealers; the Cr fide contains the debts due by the company, and that whether to partners or to dealers: And if .the books have been rightly kept, and duly balanced, the two fides of this accompt will always equal one another to a farthing. Note. If you incline the goods remaining unfold, or at fea, fliould appear upon the Balance-accompt, you muft clofe the Accompt of goods and Voyages with Balance in company, for the value of the quantity not difpofed of, or at fea ; and you may clofe the partners Accompts in company (which in this cafe will not clofe of themfelves), either with their Accompts proper, or with Balance in company., as you pleafe. How the Balances are collected, the Ledger clofed. and a new hroentory formed. When you defign to balance your Ledger, in order to begin a new fet of books, proceed in the manner following. Take two ftieets or folios of loofe paper, rule them like the Ledger, and write on the heads or tops of them, the titles of the two following Accompts, viz. on the head of the one, Profit and Lofs Dr, and Contra Cr;

E E P I N G. on the other, Balance Dr, and Contra Cr. Then, beginning with the Accompt of calh, go over every accompt in the Ledger, (omitting only the Accompts of Profit and Lofs and Stock, which muft be left open to the laft), and carry the articles of gain or lofs found on any of them, to the Profit and Lofs ftieet; and the articles of debt, or goods remaining, to the Balance fheet, without touching the accompts themfelves: e.g. Taking from theTrial-balance the fums of the Dr and Cr fides of the Calh-aecompt, fubtraifi: the one fum from the other, and, on the Balance ftieet, make Balance Dr to Calh, for their difference, being the ready money in your hands. Again, in an Accompt of goods that are all ibid, taking the fums of the Dr and Cr fides, fubtract the one from the other, aud, on the other ftieet, make Profit and Lofs Dr or Cr to or by the faid Accompt of Goods, for the difference of its fides. And in this manner proceed with every other accompt in the Ledger, according to their nature, as explained in the laft fection. Having advanced thus far, your next ftep is, to add up the Dr fides of the Profit and Lofs Iheet, and the Profit and Lofs accompt in the Ledger, into one fum, and their Cr fides into another ; and, on the faid Iheet, make Profit and Lofs Dr or Cr to or by Stock, for their difference: Which difference being carried to the Stockaccompt, add up its Dr and Cr fides, and carry their difference to the Balance Iheet. Which being done, the total fums of the Dr and Cr fides of the Balance Iheet will be equal to a farthing, if the books be right, and the balancing work truly performed: As may be thus demonftrated. It is obvious, that the Balance ftieet, before the balance of the Stock-accompt is brought to it, contains, upon the Dr fide, the money and goods you have on hand, or at fea, or in the hands of factors, with the debts due to you; the articles on the Cr fide are the debts due by you to others : So that the difference of its fides is your prefent worth, or neat ftock. Now, if the balance of the Stock-accompt be alfo equal to your pre*fent neat ftock, it is plain, that it will even the fides of the Balance-accompt. But that it is fo, appears thus. Your prefent neat ftock is equal to your neat ftock when the books were begun, with the addition of the gain, or diminution of the lofs, made fince that time: but the difference of the fides of Stock accompt, before the balance of Profit and Lofs accompt be brought to it, is your neat ftock when the books were begun; and the balance of Profit and Lofs accompt, is the gain or lofs made fince that time; which, confequently, being brought to Stock-accompt, makes the balance of Stockaccompt equal to your prefent neat ftock; and therefore the balance of Sto.ck-accompt evens the fide.s of JBalanceaccompt. If, after’the balance of Btock-accompt is brought to Balance-accompt, the fides happen to be ftill unequal, there has unqueftiontibly fome error been committed; which you muft find out by a careful review of the balancing work : for here the error muft lie, fince the books are fuppofed to have been examined, and found right, or made fo, before the balancing was begun. On the other hand, if the fides of Balance-accompt be equal.