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2164

ARITHMETIC

BILLS AND ACCOUNTS.

A Mil is a written statement of goods sold, or services rendered, giving the date of the transactions, the names of the parties, items, cost of each, and the amount of the whole.

An account is the record of business transactions between two parties.

The debtor (Dr.) is the person who buys the goods or receives the service.

The creditor (Cr.) is the person who sells the goods or renders the service.

A bill becomes a receipt when the creditor or his authorized agent writes "Beceived payment" and signs his name.

Edward Walker bought of Frank Carter & Co., March 5, 1911, 10 bbl. flour at $7.25, 400 Ib. granulated sugar at 4%c, 60 Ib. butter at 30c, 100 Ib. tea at 42c. Edward Walker pays for the goods and receives the following receipted bill from Frank Carter & Co.:

Mr. Edward Walker.

Boston, Mass., March 5, 1911.

Bought of Frank Carter & Co.

10 bbl. flour               @  $7.25            72 50

400 Ib. gran, sugar       @ M%         *8 00

60 Ib. butter               @ .30            18 00

100 Ib. tea                    @ .42            42 00 150 50

Received payment,

FRANK CARTER & Co.,

By C. D. A second form for the above is often used:

Mr. Edward Walker.

Boston, Mass., March 5, 1911.

To Frank Carter & Co., Dr.

This means that Edward Walker is debtor to Frank Carter & Co. for the goods mentioned in the bill.

David Grant sells A. A. Evans, April 2, 1911, 1 bbl. St. Louis flour at $6.75, 3 Ib. currants at 15c. April 8, 1911, 4 Ib. Eio coffee at 25c, 3 Ib. Smyrna figs at 20c.

April 20, 1911, David Grant pays on account $5.00.

April 30, 1911, David Grant sells A. A. Evans 5 Ib. Vermont butter at 32c, and A. A. Evans brings David Grant l/2 cord wood at $6.50 per cord.