They each keep $5, and give Parke an amount for expenses equal to what remains of the salary of two, and for investment what remains of the salary of three. This he lets James Doyle have as in previous months.

To finish out for Nov. supplies, Parke paid .20 for a peck of potatoes; he could have bought a bushel for .60. Had he bought all his potatoes by the peck at the same rate, how much more % would it have cost him than to have bought by the bushel?

It often saves from 10 to 25 % by buying in larger instead of very small quantities, especially in certain articles. Delivering in small lots costs much more for clerk hire and book-keeping, for which the consumer has usually to pay. Some years since we knew one who formed the habit of buying his coal by the basket @ .35, or paying $1 for three baskets. He could have bought a ton for $5; but getting it by the basket cost him $8 per ton, reckoning 8 bbls. for the ton. Get the per cent. What per cent did he lose buying by the basket instead of by the ton? He burned about 6 tons per year at an average loss of $18. How much would this amount to in 20 years at 6% annual interest? How much was the total cost for the five during the three months; how much

for each per week? How much did they have invested Dec. 1st? How much for each? They withdrew the original $20 put in by each. How much remained in the hands of Parke? At this rate how much will it cost each for a year? How much will each save? They required Parke to make a statement showing in detail the condition of their experiment. The pupil should be required to do this.

STATEMENT OF COTTAGE HOME ASSOCIATION, FOR THE THREE MONTHS ENDING Nov. 30, 1895. 1895

SIMPLE FORM OF AN ACCOUNT FOR WORKING PEOPLE.

But a small per cent of clerks, mechanics, and day laborers have transactions so extended that they need more than the simplest method of keeping their accounts. The simpler and briefer, the better. The form of cash account already passed over serves well for most, but the following will be found simple and more complete.

It would be of great service to every person to carry a small note book, in which he should keep a concise record of each transaction as it takes place. In this book a record of money received or paid should be made at the time of the transaction; also a record of all promises or business agreements should be kept for ready reference. Such records often save much misunderstanding and trouble. is a great convenience for future reference. These business entries posted to the ledger, or cash book and ledger enables one to keep before him his financial standing, which he can determine at a glance. Such a record, especially among the laboring classes, is rarely found.

From the note book it is easy to transfer to a page of summary accounts or to a ledger. From this book reference can readily be made to the original entries for dates, items, prices, etc. This brief system of keeping accounts, for people of limited business transactions, is easy and convenient.

While a double entry account shows all sources of gain or loss in business much better than the single entry system, yet the latter is all the majority of people need, is much easier to understand and acquire, and saves much time. For examples to show form see pp. 60-84.

DRILL EXERCISE, No. 24.

ILLUSTRATING THE USE OF THE DAY BOOK OR NOTE BOOK.

We will suppose the following to be a record of some business transactions of Wm. Mason, a dealer in groceries in the town of Fairmount, Me., who began with assets of $850.

Jan. 1, 1890. Sold John Tyler, on %, 1 bbl. St. Louis flour, $6.25; George F. Hall, on %, 10 lbs. granulated sugar @ 74; 2 lbs. raisins @ .16; bo't of George B. Lewis, on %, 20 lbs. butter @.24; 8 doz. eggs @ .22; sold Chas. Armstrong, on %, 3 pks. potatoes @ 25; 1 lb. saleratus, 8; sold Fred. M. Sargent, on %, 2 bu. of corn @ .70; bo't of Sam'l B. Woodford, on %, 30 bbls. Baldwin apples @ $4.25; sold Stephen Gates, on %, 14 doz. eggs @ .24; 1 bu. potatoes, $1.00.

Jan. 2. Bo't of James Dole, on %, 60 lbs. cheese @ .18; bo't of Wm. True, on %, 30 bu. potatoes @.90. John Tyler paid cash, on %, $3.00; sold Geo. B. Lewis, on %, bbl. St. Louis flour, $3.20. (3) Paid Sam'l B. Woodford, on %, $50; sold George F. Hall, on %, 3 lbs. cheese @ .21; 2 lbs. Rio coffee @28. John Tyler pd. cash to bal. his c. (4) Sold James Dole, on %, 1 bbl. St. Louis flour, $6.25; 8 bu. corn @ .70. See page 60.

From such a record as this, Wm. Mason would be able to tell who owe him and whom he owes, and how much he owes or is owed in each case.

Suppose Mr. Mason should ask you as his clerk how his % with Geo. F. Hall stands, on what dates have goods been sold him, and what is the total amount of sales to him. Suppose he should also ask you to find out how the accounts with Geo. B. Lewis, Chas. Armstrong, Fred. M. Sargent, James Dole, and Sam'l B. Woodford stand.

These, and similar questions in regard to other parties concerned, can be answered by looking through the record of transactions in the note or day book. But this is not a convenient or rapid way of getting at the facts. Still less satisfactory would it be in a real business where there would be in a single day much more of buying and selling than is recorded above, and where dealings would be had with a large number of persons.

These transactions or accounts can be collected and arranged in such a way that all the facts necessary to be known about the business may be easily and quickly found.

The systematic arrangement of accounts, in order that any desired information in regard to a business may be easily ascertained, is called BOOK-KEEPING.

Let us now take up these transactions and show how they may be recorded by a very simple method. On pages 6 and 7 is shown the form of a book called a Day Book,* by some a Note Book,† in which each day's transactions are entered. Let us suppose this book is yet blank, and that we are in the place of Wm. Mason or his clerk. At the top of each page we write the name of each place and the date. Look now at the first transaction of Jan. 1, 1890.

Debtor. -John Tyler has bo't of us a bbl. of flour on , i.e. without paying for it. (See page 5, 7th par.) He is therefore our debtor, so we enter his name in the Day Book as such, using the abbreviation Dr. for debtor.

The full entry would be something as follows:

JOHN TYLER

To WM. MASON

To 1 bbl. St. Louis flour

Dr. $6.25

*Abbreviated D. B.

For the Day or Note Book a common pocket diary serves a good turn for many, from which the business transactions are posted to the ledger or cash book and ledger.

But since this is Wm. Mason's day book, the writing of his name with each % is unnecessary. We therefore enter as follows:

The amount of this entry is made in the dollars and cents columns. The charge shows, not only who owes, but what is owed.

George F. Hall's purchase is entered much in the same way, as he bo't goods on . Having drawn a line under Tyler's entry, we record as follows, using ditto marks (") for lbs.:

Notice in this charge that the am't of each item bo't is given opposite the articles recorded, and the full am't of the purchase is entered in the right-hand double vertical line.

Creditor. The next transaction is of a different nature. We have bo't goods of Geo. B. Lewis, on acct., i.e. without paying for them. We therefore owe him. (See page 5.) So we enter Geo. B. Lewis' name as such in the day book, using the abbreviation Cr. for creditor. We complete the record of the transaction by showing for what Lewis is creditor, using the word BY after Cr., as in the previous entries we have used the word To after Dr.

Dr. and Cr. — In our day book we begin every entry with the name of the person whom we owe, or who owes us.

If he owes us, we enter his name as Dr.

If we owe him, we enter his name as Cr.

The remaining entries of Jan. 1 require no further explanation.

When we enter a person's name in our book as Dr. we say we DEBIT him.
When we enter a person's name in our book as Cr. we say we CREDIT him.

Why do we debit Chas. Armstrong?
Why do we debit Fred. M. Sargent?

QUESTIONS.

Why do we credit Sam'l B. Woodford?
Why do we debit Stephen Gates?

We have now finished the record in the day book of the transactions of Jan. 1, and can plainly see the use of the book.

The Day Book is the book of original entry, and should contain an accurate history of all business transactions in the order of their occurrence. In Single Entry these transactions should be in the form of debits or credits to determine readily on which side of the ledger each transaction should be posted.

Most book-keepers record all cash transactions in a sub-division of the day book, called the cash. book. When this is done only those cash transactions in which money is received or paid on account are entered in the day book. One of the best ways is to use the cash book as a book of original entry

for all cash, and from it post those cash items that are on account to the proper personal accounts in the ledger. For reasons given on page 5 they are, in this drill exercise, kept in the day book, and from that posted to the ledger. This is sometimes done and a cash account opened in the ledger and treated as a personal account.

In Double Entry the day book is sometimes called the Blotter. Other sub-divisions or branches of the day book are Invoice Book, Sales Book, etc. In fact, any book that is used as a book of original entry is a branch of the day book.

DRILL EXERCISE, No. 25.

ILLUSTRATING THE USE OF THE LEDGER.

In real business the Day Book would contain the records of many days' transactions, and in many cases there would be accounts with the same person entered under different dates. If we had only a day book, it would often require much work to find the dates and transactions with a given person or party, and how the account stands. So, for convenience, another book is made use. of, in which the accounts with each party are collected and arranged under the name of persons, firms, or bodies.

That book is called a Ledger. Its usual form is shown on pages 8, 61, etc. Supposing that book blank, let us see how the accounts of Jan. 1st would be transferred from the Day Book to the Ledger.

Our first account is with John Tyler, so we write his name at the top of the page in the ledger, midway between the right and left hand corners. The left half of the page is called the debtor side; the right half, the credit side. On the left corner we write Dr.; on the right corner, Cr.

John Tyler, as appears in the day book, is Dr., so we transfer his account to the Dr. side in the ledger. The date of the sale is placed in the left-hand column, and in the wide space we enter the transaction as mdse., and in one of the columns, the page of the book whence the transaction was taken, and in the column for dollars and cents, the amount of the transaction.

We might write, as in the day book, 1 bbl. St. Louis flour, but the abbreviation mdse. (for merchandise or goods) answers the purpose, and takes less space and time. The amount ($6.25) is carried to the dollars and cents column. In the column, left of the dollars, we write the page of the day book where the transaction was first recorded, and where the items of the mdse. can be found in detail.

Then in connection with John Tyler's acct. in the day book we indicate the page of the ledger to which his account has been transferred. In this way we transfer John Tyler's and other accts. from the day book to the ledger.

Transferring of accounts from the day book to the ledger is called

POSTING.

In posting Geo. F. Hall's acct. we may write his name at the top of a new page, or rule a space for it on the same page, as shown in the accompanying form. He is also Dr., so we enter his acct. in the ledger on the Dr. side of the page, to mdse. $1.02.

The next acct. in the day book is that of Geo. B. Lewis, who is credited for goods which we bought and received of him to the amount of $6.56. This we transfer to the Cr. side of the ledger, as follows - By mdse., $6.56.