Occupations > Improved system of practical book-keeping

8
manner an abstract of each particular account, and of the
several transactions in the order of their dates, as they are
entered in the Cash and Day-Books. It is always kept in
the folio form, and the sums for which any person becomes
accountable to you, are entered on the Dr. or left hand page
of his account, and those sums for which you are accountable
to him, are placed on the Cr. or right hand side. Therefore,
when the Dr. side of any person’s account is greater than the
Cr. side, the difference is a debt due to you; and, on the con¬
trary, when the Cr. side exceeds the Dr., the difference is a
debt due by you.
DIRECTIONS FOR POSTING THE LEDGER.
Every entry in the Cash-Book, with the exception of
merchandise, and every entry in the Day-Books, with the
exception of cash, is posted to the Ledger in the following
manner:—’First write an account for each person as the trans¬
action occurs, in the Cash or Day-Books, observing to leave
such space as you may think sufficient for subsequent en¬
tries, then write the date of the entry on the margin and say,
ON THE DR. SIDE. || ON THE CR. SIDE.
To Goods—for goods sold. By Goods—for goods bought.
To Cash—for cash paid. By Cash—for cash received.
To Bill—for a bill accepted. |l By Bill—for a bill received.
Then insert in the book from which you are posting, the
folio of the Ledger in which you have posted the entry, and
in the Ledger the page of the book from which the entry is
taken. When the space allotted for any account is filled up,
it must be opened anew in another folio, and for this purpose,
either the amounts or the difference of the two sides of the
former account may be entered in the new folio—inserting
on each side the folio in which the account was formerly
opened.
The Dr. side of the Cash-Book and the Day-Book for
goods bought, are posted to the Cr. side of the Ledger, and
the Cr. side of the Cash-Book and the Day-Book for goods
sold, are posted to the Dr. side of the Ledger. By this
method, the Pupil is guarded from the commission of those
errors which are almost unavoidable in posting from Day-
Books in which the debits and credits are mixed.
GENERAL RULE REGARDING DR. AND CR.
When you purchase goods from a person on credit, or receive
money from him, he is Cr., and when you sell goods to a person
on credit, or pay money to him, he is Dr.; hence, the receiver
is always Dr., and the giver is always Cr.