RETAIL GROCERY BUSINESS.

MONDAY, MAY 10, 189-.

The New Firm. It is agreed between Mr. Creager and yourself that the firm name under which you are to do business shall be J. D. Creager & Co. Each partner is to invest his entire Resources, and the Liabilities of each are to be paid by the firm. All losses or worthless resources are to be charged to the partner investing same. Both partners are to share gains, losses and assets equally, and each partner is entitled to draw $25 per week for private use. Mr. Creager will make all purchases, sell to customers who buy for cash, and make all deposits for the firm. You are to keep the books and sell to persons who buy on account. Mr. Creager is to be credited for Good Will for an amount sufficient to make his capital equal to yours.

By Good Will is meant the good name, the trade, the acquaintance and the standing which J. D. Creager's business at 228 Walnut Street has acquired. The good will of some business concerns is their most valuable resource.

No. 241.-By this bill of sale Mr. Creager sells the entire effects of his late business at 228 Walnut Street to the firm of J. D. Creager & Co. Read it carefully, then draw up one transferring your share of the effects of the late business, 122-124 Main Street, to the firm of J. D. Creager & Co. Have your bill of sale approved. After folding it properly, brief both documents, i. e., fill out the blanks on the back of same. Place them on the Voucher File.

Carefully read form 5 of partnership agreement given in the appendix, then draw up a partnership agreement between Mr. Creager and yourself, observing every detail as given in the form. Have your Partnership Agreement approved, then brief it and file on the Voucher File. Take Mr. Creager's bill of sale from the Voucher File and make the proper records for his investment in the books as explained in the following:

Opening Entries. In the Cash Book credit J. D. Creager for the amount of cash invested. (See form of Cash Book, pages 88 and 89.) In the Note Ledger, on the Bills Receivable side, on page 2, credit him in the "Drawer & Endorser" column for the note he invests. Credit him for the remainder of his resources and for Good Will in the Journal as illustrated below. You are to determine the amount of Good Will by subtracting his Net Capital from your Net Capital. Debit him for his liabilities as illustrated.

You will now enter the Resources and Liabilities of your late business as shown by the bill of sale you executed. Take your bill of sale from the Voucher File and replace the one you have been using. Observe the instructions and illustrations given for entering J. D. Creager's Resources and Liabilities when making the entry for your investment. Be sure to transfer the Bills Receivable on hand to page 2 of the Note Ledger, crediting yourself in the "Drawer & Endorser" column for each note invested. Likewise transfer the Bills Payable outstanding to page 2 of the Note Ledger, charging yourself in the "Drawer & Endorser" column for each note not redeemed.

(your name)

No. 242.-By this check J. D. Creager turns over the cash he invests to the firm of J. D. Creager & Co. Transfer the check in your Check Book, made payable to your order, to the firm of J. D. Creager & Co. by endorsing it in blank. Make out a deposit ticket, using the proper form, and endorse the checks as follows: "Pay to the order of Farmers and Mechanics Bank, J. D. Creager & Co., per Enter the deposit on the stub of the check book where you find the first Farmers and Mechanics Bank check. Place the checks and deposit ticket in an envelope and write J. D. Creager's name on the envelope. Mr. Creager will make this and all subsequent deposits for the firm. The Farmers and Mechanics Bank will supply the Pass Book; banks as a rule supply their customers with pass books, and, if desired, check books.

Posting. Post the entries just made, placing the initial of the book from which you post in the explanation column of each account in the Ledger. Be sure to post the note invested by J. D. Creager to the credit of his account and the notes invested by you to the credit of your account; also post to the debit of your account all notes outstanding.

In opening accounts in the Ledger, place four accounts on a page, beginning with the Proprietors' accounts on page 25. Place all property and allowance accounts under this group. On page 28 begin with the personal accounts payable or accounts with persons to whom the business is indebted. On page 32 begin with the personal accounts receivable or accounts with persons who are indebted to the business.

In case you are unable to decide under which division an account belongs, consult the C. W. Hammond & Co. Ledger or the teacher.

Trial Balance. Take a trial balance and have it approved. Balancing Old Ledger. Turn to Shipt. E. Spencer account in the C. W. Hammond & Co. Ledger. Write on the credit side in red ink, May 10 (with the year above), J. D. Creager & Co. L., 27, 888.50. Rule the account as heretofore instructed, but do not bring the balance down, as it is to be found in Creager & Co.'s Ledger where indicated by the folio number in the balancing entry you have just made. Continue in like manner with all accounts that do not balance. Be sure to include the number of the page to which the account has been transferred in your balancing entry so that the balance of the account can be readily traced to J. D. Creager & Co.'s Ledger. Balance both sides of the C. W. Hammond & Co. Note Ledger as per above instructions.

Books Used. The books used in this business do not differ materially from the ones used in the preceding business, the Journal and Note Ledger being identical in form.

Cash Book. Labor saving columns are used in the Cash Book. (See illustration of Cash Book on pages 88 and 89.) All items, the amounts of which are placed in either of the Merchandise columns or Expense column, are short-extended, i. e., the entries are written farther to the right, away from the Ledger folio column, to indicate that they are not to be posted as separate items. In entering an item, the amount of which is to be placed in one of the Special Columns, make a full explanatory record of same and omit the title of the Ledger account, as the heading of the Special Column receiving the amount clearly indicates the account to be charged or credited. At stated periods, usually once a month, the Special Columns are footed and the footings carried to the General Column, when the totals are posted the Mdse. total on the left side to the credit of Mdse. account, and the Mdse. and Expense totals on the right side to the debit side of the proper accounts.

Abstract Sales Book. Instead of making a detailed record of the sales in the Sales Book as heretofore, in this business you will make an abstract of each sale from the Sales Ticket; i. e., write the party's name and the total of his purchase, together with the number and date of the Sales Ticket from which the abstract is made. (See form of Abstract Sales Book given below.) Instead of the Abstract Sales Book, Abstract Sales Sheets are often used.

Sales Tickets. The Sales Tickets used in business are printed in duplicate (sometimes in triplicate) and are usually bound in book form. By the use of carbon paper two or more copies are produced at one writing. The original is sent to the bookkeeper's desk to be charged, while the duplicate is delivered with the goods to the purchaser. After the Sales Tickets for the day have been entered in the Abstract Sales Book or on the Abstract Sales Sheet they are filed in numerical order so that reference to them can be readily made. Various appliances are used in business houses for filing sales tickets and other papers of a like nature. The following are forms of the original and duplicate forms of Sales Tickets. J. D. CREAGER & CO.

Name

J. D. CREAGER & CO.

Mss. Paul Grey.

Address 2.00 Broadway, City

2

Mayie 189

Mss. Paul Grey.

Adres 200 Broadway City

SOLD BY

2

150

30

25

20

In the larger retail houses the salesmen are designated by number. The salesman's number in the above case is 2. In this business Mr. Creager will be designated as salesman number 1 and you as salesman number 2.

Cash Tickets. For cash sales, Cash Tickets are used. While they differ in use they are identical in form to the Sales Tickets, and are also printed in duplicate or triplicate. The original is sent to the cashier's desk with the cash received, and the duplicate is enclosed with the purchase. The cashier makes an abstract on an Abstract Cash Sheet of the different Cash Tickets for the day, the total of which must agree with the actual amount of cash received from Cash Sales.

The cashier reports daily to the bookkeeper the amount of cash received, and the result is verified by him or by some other person by checking the Cash Tickets with the Abstract Cash Sheet and proving the addition. In this business Mr. Creager will verify the cashier's results. The method of filing the Cash Tickets is similar to that of filing the Sales Tickets. Following are the forms of original and duplicate Cash Tickets.

Advantages of the Ticket System. The Ticket System which you are to use in this business is the one in use in the more progressive retail houses; especially is this true in dry goods establishments and department stores. It is a labor saving method, as the Tickets take the place of the Order Book, Customers' Ledger and Pass Book. Besides, Pass Books are an inconvenience, both to customers and merchants; but when they are not used the customers have no way of checking the articles purchased at the time of delivery, unless the Ticket System be used.

Other Books Sometimes Used. In some retail houses the Order Book, Accounts Payable Book, Petty or Customers' Ledger and Main Ledger are kept. Other books, as Petty, Cash Book, Receiving Book, Clerks' Sales Record, Department Sales Book, Department Sales Ledger, Abstract Books, etc., are also kept in the larger retail houses.

Order Book. The Order Book used in most retail houses is a cheap, coarse book, made usually with a page twelve inches long and five inches wide, and lies upon the counter during business hours. Goods to be delivered, that are paid for when ordered, are entered regularly in the Order Book, and the word "Paid" is written across the order, but the amount is not extended into the outside column. If not paid for, the amount is extended into the outside