ledger. Abstracts of any of the ledgers should prove with the accounts bearing the same names, as kept in the General Ledger. As stated before, these ledgers may be proven with their accounts in the General Ledger, daily, weekly or monthly.

Cash Sales. For each cash sale the cashier receives the required amount of cash and the original sales ticket, which is kept on file until the close of the day or some other convenient time, when all the tickets are assorted according to departments, and are entered on an Abstract of Cash Sales sheet. (See illustration on page 126.) These sheets are ruled so that each department receives credit for the sales made from it. Three columns are ruled for each department, one to receive the clerk number, one to receive the ticket number and a third to receive the amount of the sale. The total of the footings of the money columns for the various departments should equal the amount of the cash received by the cashier. The total of each department money column is entered in the Summary of Daily Sales as shown in the illustration on page 124. The Abstract of Cash Sales sheet or sheets are handed to the General Bookkeeping Department with the Cashier's Abstract Statement. Cashier's Abstract Statement. The cashier's statement in this business is an abstract of other detailed statements. (See illustration below.) Detailed statements for each of the ledgers named on the Abstract Statement, and the Abstract of Cash Sales sheet together with the Sales Tickets are sent to the General Bookkeeping Department with the Abstract Statement. After the General Bookkeeper has proven the Abstract Statement with the various detailed statements he records the entries on the Abstract Statement in the Abstract Cash Account as illustrated on pages 128 and 129, and hands the detailed statements to the bookkeeping departments to which they belong.

Detailed Statements. The detailed statements are similar to the Abstract of Time Sales sheets, as may be seen by referring to the illustration of Cash Receipts-A to G Ledger on page 127. When the items on these statements have been entered in the ledgers by the bookkeepers to whom they have been handed, they are filed away in consecutive order.

Abstract Cash Account. As stated before, this account is kept in the General Bookkeeping Department, and the entries therein are made from the Cashier's Abstract Statement. The numbers in the illustration on pages 128 and 129 written in italics are the folio numbers that indicate to which page of the General Ledger the footings of the columns have been posted. It is not necessary to post the footings of those columns that have no folio numbers. When taking a trial balance the balance of cash as exhibited by this account is to be included.

Pay Roll. The form of Pay Roll illustrated below is one in common use where the custom of paying off weekly is in vogue. In the illustration the clerks' names for but two departments are illustrated. The amount paid out for each department is charged to its account in the General Ledger. The footings of each department are written in red ink to facilitate the finding of the total amount paid out for wages. Study the form carefully. PAY ROLL-WEEK ENDING June 30, 189

How to Pay Off. Some business houses pay off by check, giving to each employee a check payable to his order for the amount due him. As the check must be endorsed by the employee before he can get the money on it, it becomes a receipt. Other concerns pay off in currency, usually by what is known as the envelope system.

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When currency is used the bookkeeper or cashier usually gets from the bank the exact amount of money, and just the kind of denominations and change wanted. this he scans his pay roll name by name and records each result as follows: the following records: M. E. Smith, $68.86, and Frank Kerr, $75.75. on a tablet for 20's, 10's, 5's, 2's, and 1's for dollars, and for fractional currency, 504, 254, 104, 5 and 14. Commencing with Smith, he enters in his list, 3 in the column headed twenty, 1 in the five column, 1 in the two column and 1 in the one column. 3 x 20+5+ 2+1 equals 68 or $68. Fractional: 1 in 50¢ column, 1 in 254 column, 1 in 104 column, 1 in 14 column. 50¢ + 25¢ + 10¢ + 14 equal 864. For Kerr-3 twenties, 1 ten, 1 five and 50¢ and 254 equals $75.75. Instead of 3 twenties, 1 fifty and 1 ten could be used; in fact use the largest denominations, then add each kind. When the amount required is ascertained, a check is drawn for that sum, payable, usually, to "Pay Roll" and taken to the bank, together with the memorandum of the change wanted, and cashed. This cash should be kept separate from the other cash on hand, especially where the envelope system is used, so that if any mistakes are made in filling the envelopes they may be detected before paying off. (See form of Pay Roll memorandum on page 130.)

Instead of finding the number of each denomination by the above method the adept bookkeeper scans each amount in the entire pay roll, first, to ascertain how many pennies are required to make the exact change for the entire pay roll. He then ascertains in the same manner the number and amount of nickels, dimes, quarters, halves, 1's, 2's, 5's, 10's, 20's, etc., that are required. These are usually entered on a Pay Roll memorandum as illustrated on page 130, or in the absence of a memorandum sheet, on the back of the check. The total of the memorandum should equal the footing of the pay roll. The objection urged against the first method explained, is that in a pay roll of several hundred names it would require hours to accomplish what can be done by the latter method in a few minutes. It may require considerable practice for some to master this latter method, but its time and labor saving features will be appreciated by all bookkeepers who have had experience with long pay rolls, and who know how precious time often is on pay days.

When the envelope system is used, the envelopes are prepared for filling after the pay roll has been made out for the week or month. This is done by copying on the envelopes

from the pay roll the names, or the pay roll numbers, of the employees, together with the amounts due them. The amounts are usually written in a position where they will be covered over when the envelopes are sealed. Some bookkeepers write the amount on the inside of the flap; others on the back (near the lower edge), covering it over by folding the envelope lengthwise before sealing it. When the amount is written on the inside of the flap it will be a convenience to write the name of the employee on the reverse side of the envelope, so that both the name and amount appear on the same side of the envelope. What reason can you assign for covering up the amount of an employee's wages?

The envelopes are filled by placing in each one the amount written upon it, the person filling the same being careful to select the largest possible denominations each time in making up the amount, so as not to run short of change. When the last envelope is reached, the amount of cash remaining should tally exactly with the amount called for on the envelope. If it does not so tally, then a mistake has been made in filling the envelopes. To locate the mistake it will be necessary to recount the cash in the envelopes. The envelopes are usually not sealed until all have been filled and the cash proven as explained above. For the convenience of the one who pays off, the envelopes are arranged in the cash box or on the desk so that the numbers appear consecutively, when the envelopes are numbered, or so that the names appear alphabetically, when names are used. The paying off is usually done by the cashier, bookkeeper, foreman, paymaster, or some one familiar with the names or numbers of the employees.

Goods Returned. When goods are returned the records to be made are precisely the reverse of those made at the time of sale. In the case of a cash sale, if the cash is refunded, cash account is credited and the department from which the goods were sold is charged, as it has purchased back the goods. When the goods have been sold on time the party who returns them is credited and the department from which they have been sold is charged. This is done by sending a credit ticket or credit memorandum to the counting room for each lot of goods returned. These credit tickets, if for time sales, are entered on a Goods Returned Abstract, as shown in the illustration above. It will be observed that this form is the reverse of the Abstract of Time Sales form illustrated on page 122. The footing

of this form is entered on a Daily Summary of Goods Returned, of which no illustration is given, as it is exactly the reverse of the Summary of Daily Sales illustrated on page 124. For each cash sale the credit tickets are entered on the Abstract of Cash Goods Returned form, which is exactly the reverse of the Abstract of Cash Sales illustrated form on page 126. Credit Memoranda Account. Very often, in the case of cash sales, the money is not refunded at the time the goods are returned, but a credit memorandum is given the party who returns them. In that event the department from which the goods were sold is charged for the amount and Credit Memoranda Account in the General Ledger is credited. When a credit memorandum is received in payment of goods from some other department, the department is credited and Credit Memoranda Account is debited. When all outstanding credit memoranda have been redeemed Credit Memoranda Account should balance. Credit memoranda are in effect Bills Payable, payable on demand either in merchandise or in cash. Is a credit memorandum negotiable or non-negotiable? Give a reason for your answer.

Rebates. When a rebate is allowed to a purchaser of goods on credit, that person's account is credited and the department from which the goods were sold is charged for the amount of rebate allowed. In the case of a cash sale, when the amount of the rebate is refunded, cash account is credited and the department from which the goods were sold is charged. Credit memoranda may be issued for rebates as well as for goods returned, and are treated in the same manner. As the forms used in recording Rebates are in all essential particulars like those used in recording Goods Returned no illustrations of such forms are given.

The student who thoroughly understands the use of the various forms used in recording the sales and purchases in a department store will have no difficulty in designing forms in which to record rebates and goods returned. Study carefully the forms used for recording the sales and purchases.

Sundry Accounts. When a sale is made to a party who is not a regular customer, instead of opening an account with him on a separate page, the entry is made in an account headed Sundry Accounts, or Miscellaneous Accounts, as it is sometimes called, together with other accounts that are not likely to be permanently active. (See illustration below.)

You will observe that in the illustration the space occupied by each account takes but two lines-the first for the name, the second for the address. When an account is settled the amount is entered directly opposite and a check mark is placed on the center, triple ruling to show that it is settled in full. When the account is not paid in full a short extension may be made, as shown in the first and last items in the illustration. When desired two Sundry Accounts may be kept-a Sundry Accounts Receivable and a Sundry Accounts Payable.