THE SCRIPT FORMS AND MODELS

In connection with the student's preliminary work he is directed to write some of the script forms given on preceding pages. These forms represent the highest excellence in penmanship and may serve as models in writing for the student. The plan, statement, and arrangement of these models may be a guide to the student in all his work throughout the book. The method of placing matter on the page and the completeness of explanations are parts of high-grade bookkeeping.

While writing these models the student is learning how to place business transactions on the written page in the most approved manner. Business records are not only valuable when made, but may be of especial importance years hence; therefore it is necessary that the statements be clear not only to the writer but to any person who may have occasion to examine them at any future time. If books are introduced into court as evidence, the explanatory part of the records is often the most important. It is the experience of attorneys that very few books of record that are brought into court have any value as evidence, because of the incompleteness of the explanatory matter. If explanations are not made clearly, a correct entry is of little value as conclusive evidence.

Erasures are not to be tolerated, as they not only spoil the neatness of the page, but often make entries look suspicious.

FUNDAMENTAL PRINCIPLES

EXERCISE 1

FOR ORAL WORK

A Business Transaction is an exchange of values; that is, the giving of one value in return for another.

A bought of B 20 T. coal at $5 per ton, and paid the money for it. Name the two values in this transaction. Which value did A receive? Which value did he give?

A sold to C 2 T. coal at $6 per ton, and received the money for it. Name the two values in this transaction. Which value did A receive? Which value did he give?

Each of the above transactions is an exchange of values. In the first, A receives value, 20 T. coal, and gives value, $100 in money. In the second, A receives value, $12 in money, and gives value, 2 T. coal.

A merchant sold a pair of shoes for $4; the value received by him was $4, and the value given was a pair of shoes.

A man sold a horse for $100; the value received by him was $100, and the value given was the horse.

A doctor occupied a suite of rooms which belonged to another man, for the use of which he paid the owner at the end of one month $50; the value received by the doctor was the use of the rooms, and the value given was $50.

A grocer sold John Bell a barrel of flour for $6, which was to be paid for in 10 da., a sale on credit or on account; the value received by the grocer was the expressed or implied promise of the customer to pay the bill in 10 da., and the value given was the barrel of flour.

A manufacturer paid B $2 for shoveling snow off his sidewalks; the value received by the manufacturer was the services of B, and the value given was $2.

C borrowed $100 of D, and at the end of 6 mo. paid $3 for the use of the money to date; the value received by C was the use of $100 for 6 mo., and the value given was $3.

Henry Brown bought a suit of clothes of his tailor for which he paid $40; the value received by Brown was the suit of clothes, and the value given was $40.

These represent business transactions, for they show that for every value received a value was given.