INTRODUCTION

The Advanced Course is designed to show the application of the principles of bookkeeping to the records of special lines of business; the development of the simple forms of books into special forms; and the classification and subdivision of accounts.

The lines of business selected are representative of four important departments of business activity retailing, commission, wholesaling, and manufacturing. In connection with each, approved forms of records are shown, and modern methods of business procedure are explained and illustrated.

The student in taking up the work of the Advanced Course will be dealing in a sense with the selfsame transactions as in the Introductory Course, namely, goods are bought and sold, payments are made and received, notes are issued and redeemed, expenses are incurred, losses suffered, and profits realized. The difference between the introductory work and the advanced work consists in the use, in the advanced work, of certain labor-saving forms whereby is minimized the necessary burden of recording transactions. In fact, the object of advanced bookkeeping is found in its endeavor to perform the work of the bookkeeper more expeditiously and easily. Of course many new things will be covered and the student will have occasion to enlarge upon the work that has already been covered in the Introductory Course, namely, many new accounts will arise in the form of assets and liabilities, and profits and losses. The application of these new accounts to the balance sheet, and the profit and loss statements, will be on a broader and more comprehensive scale.

Bookkeeping and Accounting. Accounting includes Bookkeeping, as the term is generally understood, and covers the whole field of account keeping, while Bookkeeping is restricted to a particular part of the field, namely, the records of the transactions.

Accounting deals chiefly with the scientific arrangement of the forms of the record mediums, such as the books, etc., the classification of the accounts, so as to cause them to show in detail the results and condition of the business, and with the statements of these results and condition. Bookkeeping deals chiefly with the making of the records, according to the classification of the accounts, and the arrangement of the forms of the record mediums, suggested by the principles of accounting. A person who makes the records of business transactions is called a "bookkeeper." One who performs the work of classifying accounts, arranging the forms of record mediums, supervising the records, and making statements of the results and condition of a business is called an accountant." A person who examines the records for the purpose of verifying their accuracy is called an "auditor."

In the Advanced Course the student will perform the duties of bookkeeper, accountant, and auditor. It should also be noted that the prices of commodities, appearing in the various forms and transactions, are generally below the normal market quotations. The purpose, however, of this work is primarily to give practice in billing and to encourage individual effort on the part of the student and not to teach market conditions and prices, which are always subject to more or less fluctuation.

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RETAIL GROCERY BUSINESS

THE following transactions are designed to illustrate a system of bookkeeping for a modern retail grocery business, at first by single entry, after which will be shown the method of changing from single entry to double entry, of continuing the business by double entry, and of incidentally showing the use of the card ledger system of bookkeeping.

Single entry books differ from those used in double entry bookkeeping chiefly in the fact that a single entry ledger contains only accounts with persons, all property and loss and gain accounts being omitted.

The principle of equal debits and credits, belonging to double entry, is not a part of single entry bookkeeping, and consequently no equality exists between the debit and credit sides of the ledger, and no trial balance can be taken of a single entry ledger.

An account with cash should be kept in the cash book, as in double entry bookkeeping, and by means of notes receivable and notes payable books it will be easy to keep a record of notes receivable and notes payable. A record of merchandise may be kept by the use of a purchases journal and a sales book.

In a well-arranged set of single entry books it is possible to show as complete a record of the business as in a set of books kept by double entry, but it will not be in so compact a form, and it requires more work on the part of the bookkeeper.

Proof of Posting. While no trial balance can be taken of a single entry ledger, the correctness of the posting can be determined with the same degree of accuracy as in a double entry ledger, by proving the posting. This is done by finding first, the total of the charge postings in the ledger for the month, and the total of the charge entries in the books of original entry, and then comparing the two amounts; second, by finding the total of the credit postings, and the total of the credit entries in the books of original entry, and then comparing the two amounts. This is called a proof of posting.

Books Used. In order that a complete record of the following business may be obtained by single entry, the books used will be as follows: journal, cash book, abstract sales book, purchases journal, notes receivable and notes payable books, general ledger, and card ledger, using the card ledger only for customers' accounts. A simpler, but less effective, set of single entry books would consist of journal, cash book, and ledger.

Journal. The journal contains such debits and credits to personal accounts as are not entered in the cash book and on the sales sheets, from which the abstract sales book is made up. The abbreviation Dr. or Cr. is written after the title of the account, in each entry, and the explanation underneath. The form on page 156 illustrates the journal.

Sales Slips.

- In most modern grocery stores sales slips are used, and when sales of merchandise on account are made, the slips are written in duplicate by means of carbon paper by the salesman as he takes the order, verbally, or from an order book. The form on page 157 illustrates the sales slip.

The original and duplicate sales slips are sent to the office to have the prices O.K.'d. The original is retained by the bookkeeper, the duplicate being sent with the goods when they are

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