Recapitulation of all the difficulties, with the proposed remedies, 202.-Partnership, with limited responsibility, Stewards-Receivers, 222.-Committees, 223.-Managers and Consignees, 226.-Bankrupts and Insolvents, 227.—Exe- cutors and Trustees, 229.-Duties of an executor, 229.- Three different official accounts required of him, 231.- Executor's inventories and accounts, how to be made up, 236. Accounts in the different Courts, 243.-In what cases the Court of Chancery will give relief, 244.—How obtained, 246.—Cir- cumstances barring an account altogether, 247.—Want of title-Release-Receipt in full-Stated account-Acquies- cence-Laches-Length of time, 247.-Statute of Limita- tions, 250.-Schedules in Chancery, 254.-Decrees-Dif- ferent gradations, 259.-Interest and Costs, 260-Opening accounts-Liberty to surcharge and falsify, 260.—Method of taking accounts in Chancery, 262.-Items for which parties are accountable, 265.—Items for which parties are I. Waste-book and Journal, 284.-II. Ledger, 297.-III. Private Ledger, 310.-IV. Cash-book, 312.-V. Petty Cash-book, 314.—VI. Bill- book, 316.-VII. Day-book, 318.-VIII. Invoice-book inward, 318. -IX. Invoice-book outward, 318.-X. Sales-book, 320.-XI. Warehouse Ledger, or Stock-book, 321.-XII. Single Entry, 322.- Private Cash-book, 324.-XIV. Receiver's Accounts, 327.-XV. Bankrupt's Accounts, 328.-XVI. Executor's Residuary Account, ACCOUNTS. CHAPTER I. IN a man's intercourse with the world there is scarcely an every-day duty more important, both to himself and the persons with whom he comes in contact, than is the practice of accounts. Almost every man flatters himself, it is a subject which he either understands, or with which he can without much difficulty become acquainted, if any emergency should render it expedient. Of the mere practical details of the subject, it is easy to acquire a sufficient knowledge for the ordinary routine of business; nor does it require much application to become acquainted with its principles as a science. But there are some points connected with accounts, upon which much misapprehension prevails; and this is chiefly owing to the extraordinary and not very well known fact, that the system of accounts universally adopted among merchants is, in some respects, a very different system from that which prevails in the courts of law and equity; especially upon that most important section of accounts which relates to the concerns of partnership. The mercantile principles and practice of accounts have hitherto been almost as much overlooked by our courts of law and equity, as have B the rules of law and equity been disregarded by accountants. While merchants go on with their accounts in their own way, they experience no difficulties; but the moment it becomes necessary to settle mercantile accounts in any of the courts of law or equity, different rules and principles are applied, and that too by means of a machinery, the inadequacy of which renders an application to the courts an evil, that almost any sacrifice will be encountered to avoid. The inconvenience arising from these sources has become so pressing, as to have created a necessity for the speedy interference of the legislature. There is, however, some ground for apprehension, that the mischief may be considerably increased by the interference of Parliament, unless the differences between the mercantile and legal principles, upon which accounts are taken, are more generally canvassed and understood. The object of this work then is, in the first place, to present an outline of the common principles and practice of accounts; not so extensive indeed as to embrace every minute detail, but yet sufficient to enable any person fully to comprehend, and if necessary to investigate, any accounts that may come before him in the way of business; and to adopt such a method as may be necessary to enable him to keep his own accounts, or those he may be called upon to keep or investigate as a trustee, executor, or the like; and to place before mercantile men and others, such general principles and rules of law as most concern them; and, in the second place, to draw attention to the existing difficulties which are so shortly to come under discussion. I have endeavoured to set before the reader the remedies which have been recommended by the many eminent men who have turned their attention to the subject; and I have ventured to present a plan which appears to me to obviate almost every difficulty. This plan consists of little more than a proposed recognition by the courts of some of the fundamental principles of the mercantile system; and is so simple, that, it will scarcely disturb the practice either of the courts or of accountants. It was my original intention to put forth the present work as a treatise upon the PRINCIPLES, LAW, AND PRACTICE of accounts. But the important questions now forcing themselves upon the notice of the public, have induced me to present it in a more popular form, for the consideration of the mercantile world, and consequently to sink as much as possible those legal points and discussions which would be of no importance to them, and to confine the present treatise to such points as are of general interest, or bear particularly upon the matters which are to be discussed in Parliament. |