Volume 2

The English encyclopaedia : being a collection of treatises, and a dictionary of terms, illustrative of the arts and sciences / Compiled from modern authors of the first eminence in the different branches of science ... ; the whole illustrated with upwards of four hundred copper-plates.

Date:
1802
Catalogue details

Licence: Public Domain Mark

Credit: The English encyclopaedia : being a collection of treatises, and a dictionary of terms, illustrative of the arts and sciences / Compiled from modern authors of the first eminence in the different branches of science ... ; the whole illustrated with upwards of four hundred copper-plates. Source: Wellcome Collection.

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    is greater, it is gain ; if the Dr. fide is greater, it is lofs. If the I’um of the inner column is greater on the Dr. fide, it fiiows that part of the goods are on hand; and their value inuftbe added to thefum of the Cr. fide, in order to determine the gain or lots. y. Accounts of fhips contain on the Dr. the value of the fiiip, and all expences laid out thereon : on the Cr. all freights received. In like manner, accounts of houfes or lands have the value of th; fubjeft, and all repairs, or other charges, en- tered on the Dr. and all rents or other profits received on the Cr. In general, real accounts contain the value of the property, and all charges, on the Dr. and the tales and other returns on the Cr. When the account is to be balanced, if any property re- mains, its value is placed on the Cr.; and then the balance fhows the lofs or gain, according as the Dr. or Cr. fide is greatefi. 10. Thirdly, Accounts of Stock, Profit and Loss, and its fubfidiary accounts, which are fometimes called fiiliUous accounts. TheJiocli account contains on the Dr. the amount of the debts which the owner owes when the books are opened ; and on the Cr. the amount of ready money, goods, debts, and pro- perty of every kind belonging to him : therefore the balance fhou^ what his nett ftock is; or, in cafe of bankmptcy, how much his debts exceed his effefts. There is nothing fiirther entered on this account till the books ai-e balanced : and then, if the bufinefs has yielded profit, the nett gain is entered on the Cr.; if it has been unfuccefsful, the nett lofs is entered on the Dr.: after which, the balance Ihows the nett ftock at the time the books are clofed. 11. The Projit and Lofs account contains eveiy article of gain on the Cr. and every article of lofs on the Dr. Tiie balance (hows the nett gain or lofs, and is transferred to the proper fide of the ftock-account, as mentioned above. This account is partly compofed of articles that occur while the books are running. For example, legacies received are en- tered on the Cr.—goods deftrojxd on the Dr. The reft of the articles are thofe of gain and lofs, arifing from the real ac- counts, which are collefted when the books are balanced. 12. To thorten and methodife the account of profit and lofs, fubfidiar)’’ accounts are ufed; fuch as, . Intcre/l account, which contains on the Dr. fums paid or incurred for intereft; and on the Cr. fums received, or become xiue for it. Cotiimijfion account, which contains on the Cr. articles of gain received or owing for trouble in tranfafting bufinefs for others. There are feldom any entries on the Dr. Proper expences, containing on the Dr. money or any thing elfe, withdrawn from the trade for private ufe. Lofs by bad debts, containing on the Dr. debts efteemed defperate; and on the Cr. debts unexpectedly recovered. infurance account, containing on the Cr. premiums received for making infuranccs ; and, on the Dr. loifes fuftained on the fame. There may be feveral accounts of this kind, and the balance ftiows the gain or lofs which arifes from being con- cerned in inl'urancc. More or fewer of thefe accounts may be ufed, according as the articles are frequent j and others may be inventiid Lo fuit the purpofes of the bufinefs for which the books are kept. 13. Every tranfaCtion in bufinefs belongs to two accounts, and muft be entered on the Dr. of the one and on the Cr. of the other. Thus, when a perfon becomes indebted to us, the article he owes muft be entered on the Dx. of his account j and, if it be for money paid him, it is alfo entered on the Cr. of cafhj if for goods fold, it is entered on the Cr. of the ac- count of goods j if for any thing delivered him by another perfon at our delire, it is entered on the Cr. of the deliverer's account; if for any wager or bargain, by which we are gainers, it is entered on the Cr. of profit and lofs. Thus, in what- ever way the debt arifes, it is entered on the Cr. of fome other account, as well as on the Dr. of the perfon’s account who owes it. In like manner, when we become indebted to any perfon, the article we owe muft be entered on the Cr. of his account. If it be for money received, it is entered on the Dr. of cafh; if for goods bought, it is entered on the Dr. of the account of goods ; if for any thing delivei'ed to another perfon at our de- fire, it is entered on the Dr. of the receiver’s account; and if it is in confequence of a loling bargain, it is entered on the Dr. of profit and lofs. Again, when goods are received, the tranfaftion is entered on the Dr. of the account of goods. If they are bought for ready money, it is entered on the Cr. of cafli; if on truft, it is entered on the Cr. of the feller j if they are exchanged for other goods, it is entered on the Cr. of the goods delivered j if they are obtained by fome profitable bufinefs, without any return, it is entered on Cr. of profit and lofs. When goods are delivered, the tranfaftion is entered on the Cr. of the account of goods; and, if they are fold for ready money, it is entered on the Dr. of calh ; if on credit. It is entered on the Dr. of the purchafer 5 if exchanged for other goods, it is entered on the Dr. of the goods received •, and, if they are given gratis, or deftroyed, it is entered on the Dr. of profit and lofs. Lallly, When any article of lofs occurs, the tranfaftion is entered on the Dr, of profit and lofs; and as we muft either pay it in money or goods-, or remain indebted to fome perfon for it, it muft be entered on the Cr. of cafti, or of goods deli- vered, or of the perfon entitled to receive it. And, when an aiticle of gain occurs, it is entered on the Cr. of profit and lofs, and alfo on. the Dr. of calh or goods, if money or goods be received j and 011 the Dr. of the perfon accountable for it, if not immediately paid. Hence It follows that. If all the accounts in the leper are add- ed, the amount of the fums of the Dr. ‘will be equal to ihofc of the Cr. Sect. III. Of the ^ov-Rtneh. 14. The Journal Is a fair record of all the tranfaftlons compiled from the wafte-book, in the fame order as they Hand there; but exprelled in a technical ftyle, that it may be tranf- fen-ed to the leger with more eafe. To enter any article in the journal, we muft confider which accounts in the leger it will require to be placed to, both on the Dr. and Cr. and write [theformer account] Dr. to \j-be lat- ter account] ; then we annex an explanation of the article, and place the fum in the money-column. Ex.vmple. Wafte-book), Sold for ready money, 30 yai'ds linen, at 3s - - - I/. 4 10 — Journal). Cafo Dr. to Linen. Sold 30 yards, at 3s - - - ■ - li. 4 10 — Here we confider, that the article muft be entered on the Dr. of cafh, becaufe money is receivedand on the Cr. of linen, becaufe linen is delivered: Therefore we write Cajb Dr. to Linen, to which we annex the nature of the tranfaftion. The article thus entered is called a joimial-poft •, Cafh is called the Dr. i Linen the Cr.-, the words “ Cafli Dr. to Linen,” the Entry, and the following words the Narration. The learner will be able, from this example, to enter any fimple article in the journal, provided he knows the accounts