banker; but of this we shall take no further notice now. The inner column of the monies kept at the bankers must, of course, exhibit a counterpart of the banker's Pass-book as to the sums. And it is of great importance, especially in partnership, that every sum received on account of the business should be scrupulously paid into the bank of the firm; and that every payment (except petty disbursements) made on account of the firm, as well as every sum drawn by any of the partners for their own private use, should be made by a draft upon the bank. And where it is possible, it tends greatly to the regularity of business that, for petty disbursements, checks should be given in even sums to the clerks employed for that purpose, to be accounted for by them in the petty disbursement book. When cash is thus always passed through a banker's, the pass-book exhibits the exact results* of the cash-book, and forms as it were another cash-book of the firm. It is a continual check upon any errors: it exhibits the whole cash transactions of the firm; and in case of any dispute, or loss, or accident by fire, or otherwise, there is always extrinsic evidence of each transaction, or, at least, the notes can be identified or traced. All which are oftentimes matters of the most incalculable value and importance to a trader.

For petty disbursements, a petty cash-book is kept, which is generally intrusted to a separate clerk. It contains, simply in the cash-book form, the sums intrusted to him for that purpose, 107. or 57. at a time on

* Not precisely sum for sum, for two or three sums paid in together appear in the pass-book in one sum only, equal to the whole: but in the banker's waste-book they will be found with all particulars.

its debit side, and the expenditure on its credit side. From the petty cash-book, the petty expenditure of the month is carried forward to the general cash-book, and the items separated and charged to the different accounts. For the Cash-book, see Appendix IV., and for the Petty cash-book, Appendix V.

The BILL-BOOK is another book in use among traders, and constitutes the second division of the waste-book. The bill-book is divided into two parts: one of which is devoted to Bills-receivable, and the other to Billspayable. There is no necessity to enter into any explanation of it, as an inspection of the forms in Appendix VI. will be all-sufficient.

Bills are an instrument of exchange, perhaps more important, in a mercantile point of view, than cash itself. There can scarcely arise any difficulty in journalizing bills either receivable or payable. They fall under precisely the same rules as every other kind of merchandise. The Bills-receivable account is D' (for every Bill-receivable the merchant receives) to whatever account he abstracts its equivalent from, and vice versá; though cash is in general the only item which is Dr to bills-receivable, unless a bill-receivable is dishonoured, when the party becomes D' to the Bills-receivable for the amount, and to Charges for the expenses are incurred. If it is arranged to renew a bill, Bills-receivable become again D' to him for the amount, and if so agreed, interest and the expenses may be included in the new bill.

Bills-payable are the bills we give or suffer to be drawn on us, in consideration of the merchandise we receive, and they are usually paid in cash, when they

become due. When given, the Party drawing it is made D' to Bills-payable; and when due, Bills-payable are usually Drs to Cash. There are times, however, of distress, in which a trader may not have the cash to meet his bill-payable, and the bills must, by favour of the holder, be renewed. If the holder then renews the bill, say for 5000., the transaction has two parts : the trader gives to the holder a new bill for the amount, viz. 500l., together with interest and expenses of noting, &c., say 57.14s., viz. 5l. forinterest, and 14s. for charges, viz. 5057. 14s.; and the holder then returns to the trader the dishonoured bill. The transaction, therefore, in the journal will appear as the Holder D' to Billspayable, for 5057. 14s.; and Sundries become Dr to the Holder to the same amount, viz. Bills-payable for the old bill, for 500l., Interest for 5l. and Charges for 14s.

Where, however, such an item as this arises, whether it be by distressing circumstances of loss or disappointment, or if it arises in the startling shape of dabbling in accommodation bills, it becomes necessary for the trader to look more sharply to his accounts, and take them entirely into his own hands, not to be neglected, as is usually the case, but to be kept more accurately and adjusted more scrupulously, as a preservative against approaching insolvency, and (which is a consideration of almost as much importance) as a protection in case of actual stoppage of payment. For where the accounts of an embarrassed trader are well kept, the direct inference is misfortune, instead of neglect or fraud; and it is very rare in such a case that an insolvent trader may not make an advantageous composition, and go on again, where his own care, in keeping his accounts truly, has obviated the necessity of calling

in the powers of the Courts of Bankruptcy, and his creditors are relieved from the vexation of sacrificing the greater portion of the wreck of his property to remedy his negligence in a matter which it was his first duty to perform. The keeping his accounts more scrupulously exact in such circumstances is not only a provision against the evil day, but enables him to turn to advantage every chance of rallying.

When the cash and bill books are detached from the waste-book, the remnant is often called the DAY-BOOK, and it contains the goods which come in and are delivered out, and such other matters as are not contained in the cash and bill-books.

Whenever goods come in or are delivered out, they are always accompanied by an invoice, which is simply a memorandum containing an exact account of the goods and their prices, and stating the persons from whom they come, and to whom they are delivered.

The invoices are the original documents for all incoming goods, and are frequently too long to be copied at length into the day-book. This introduces another book, called the INVOICE-BOOK-INWARD, or Boughtbook. In all concerns the invoices are carefully preserved, and the invoice-inward-book is commonly composed only of a book of blank paper, in which the invoices are carefully posted as they come in. This, as a subdivision of the day-book, is, of course, only a branch of the original waste-book. Copies of the invoices, if they are not too long, or if so, abstracts of them, as given in Appendix VII., are entered in the day-book, and passed through the journal in the usual form.

The INVOICE-BOOK-OUTWARD, or Book of exports, is

another subdivision of the day-book. The original invoices are sent off with the goods sent out, but exact copies of them are kept in the invoice-outward-book, and if too long, abstracts of them are entered in the day-book, comprising the particulars under the names of goods, charges, commission, insurance, and the like, invoice.

as per

For an invoice-book-inward, see Appendix VIII., and for invoice-book-outward, see Appendix IX.

Some persons make it a rule to enter the invoices at length, both inwards and outwards, denominating the books the Bought-book and the Sold-book, keeping no day-book, but journalizing at once from these two books; and this, in certain lines of business, is not a disadvantageous method.

A SALES-BOOK, however, is properly a very different thing from the invoice-outward-book, and contains an account of those sales which are made upon commission by an agent, consignee, or the like; and in it the whole consignment is kept together till it is sold; and the whole account, both D' and C', is kept by itself, and the results only passed into the day-book: whereas, in the invoice-outward-book, the trader comprises in one invoice, perhaps, many different kinds of goods of his own, and also of other persons, for whom he acts as agent. The consignee has no present interest in the goods contained in his sales-book; he has only to sell them, pay the charges, and deduct them and his own commission, and return to the consignor the net proceeds, with the account.-For an example of a sales-book, see Appendix X.

Such are the usual divisions of the waste-book in the present practice of those extensive concerns which