Chapter D: A. Hall employs H. D. Snyder as traveling salesman for the purpose of (6)

With the decimal tabulator, the operator would press the tens key, which automatically places the carriage in a position to begin writing the amount _10.50_. If the column stop were used for this purpose, it would have stopped the machine at the period point, and necessitated the operator pushing the carriage two points to the right in order to begin printing two points to the left of the decimal points. Some operators place the column stop so that the machine always stops at the tens point, and if an amount of 1.00 or less is to be written, they use the space key. This is quicker than to always stop at the decimal point and then position the carriage properly by hand. However, where any tabulated work involving figures which vary greatly is to be done, it is decided economy to use a decimal tabulator. Most operators do not see the advantage of using tabulators, and in many instances will continue to waste time spacing the machine with the space bar. If they would avail themselves of the tabulator device they would jump from one part of the line to the next desired point instantaneously. It should be remembered that billing work is a constant repetition of certain manual movements. If one movement in ten can be eliminated, it is equivalent to saving one hour in ten. To show the great advantage of, and it might be said, necessity for, time saving and short cuts in large establishments, a device used by Butler Bros., a large mail-order house with warehouses in several of the large cities, is an excellent illustration. This particular scheme is used in Jersey City, N. J. It consists of two rows of billing machine operators (sixty-five in number) placed in parallel positions with an endless belt running between them, and two checking clerks at the end of the row. As fast as the operators transcribe the orders onto the order forms, the original and typewritten order (with departmental copies) are placed on the belt and carried automatically to the checker's desk.

The rubber belt passes over a pulley at the edge of the checker's desk, which allows the orders to fall from the belt to the desk. The belt returns to the end of the line, where it revolves around another pulley. The power is furnished by a small electric motor.

=Arrangement of Billing Machines in Large Business Houses.= In large businesses in the wholesale dry goods, wholesale notions, and kindred lines, special arrangement enables a few billing machines to accomplish a large amount of billing. In these classes of business, it is the custom to call the lot number, class of goods, and the number of yards to the bill-clerk, who in turn enters it on the bill and duplicate. The system used will be described elsewhere. Here it is desired to touch upon the movable-platform idea only. The operator is seated on an elevated platform on which is placed the billing machine and the chair. This platform has rollers, and can be moved in the aisle between two rows of counters on which the goods to be shipped are placed. As soon as the callers call off the lot numbers, description, and quantities of one shipment, the billing machine operator moves the platform to the next lot of goods, which enables him to hear the caller clearly wherever the caller may be. If the bill clerk were permanently located in one portion of the room, he would be liable to make errors through misunderstanding the caller. A scheme which is largely used in those classes of business which demand the "call off system" or, as they term it, "billing from call" is to call off the word _sixty-five_ as if it were _sixity-five_, and the word _fifty-five_ as if it were _fifity-five_. This prevents confusion between these amounts which sound so much alike. Some firms _for sixty-five_ use the term _sticky-five_.

=Use of Computing Machines in Connection with Billing.= Many firms use computing machines such as the comptometer for proving the extensions on invoices. With a machine of this character, it is possible to figure all of the extensions. The machine at the same time automatically adds the totals, and, if there are discounts to be taken off the bill, this operation can be performed without clearing the machine. For instance, in the following example:

12 yards lace 50 $6.00
15 yards ruching 10 1.50
24 doz. hdchfs. 12.00 288.00
------
$295.5
25% 221.63

By _clearing_ the machine, is meant pulling the handle which returns all of the wheels to _0_ for the beginning of a new computation. Without desiring to enter into the mechanical merits of adding machines, either listing or non-listing machines, it is important to touch upon the various arguments used in favor of billing machines with adding attachments and without them.

The flat-bed machines were the first to use the combined machines. The plan in use was to place two recording registers on the billing machine and prove the total of each bill separately with one register, and accumulate the totals of all the bills for the day on the other register. Certain firms used extra recording registers for recording the totals of extra columns on the sales sheets in which they analyzed the sales according to classes of goods or some other classification. Some firms did not add the bills when making the extensions of the prices and quantities, but left the additions for the adding machine. The only draw-back to this plan was that if the operator copied a wrong total from the register dial it caused trouble. This fault, if fault it may be called, as it is not the fault of the machine, but of the operator, has been corrected by placing a subtracting device on the late models of combined billing and adding machines, whereby the subtracting device is thrown into action when the total of the bill is being written. If the correct amount of the bill is written on the invoice, the dial figures all turn to ciphers, which indicates that the amount has been correctly transcribed by the operator. Other improvements will likely follow in the many machines which are being placed upon the market. See Fig. 29 on Page 67.

Some firms prefer to do all the billing as one operation, and use a separate or computing machine, as the case may be, for proving the additions at the end of the day. The reason is that by having two separate machines they can be used by different people during the day for different work.

If computing machines are needed for adding, multiplying, and taking off discounts, the non-listing machines are recommended, as they are key-driven. If adding machines are needed when printed lists are wanted of all additions, then listing machines are recommended. The general public has recognized that each class of machine has its separate use. Some firms check the totals of listing machines with non-listing machines, in order to save time and paper. Non-listing machines are used for taking a record of rolls and yards of cloth during inventory time, and later are used to multiply the extensions. Some dry goods firms hire expert operators at a dollar an hour to do this class of work, as it can be done in one-fifth the time that it would otherwise take. For instance, an example in multiplication, such as _432_ × _235_, would take approximately ten seconds to write down, multiply, and set down the figures. With a multiplying machine mentioned above, it can be done in two seconds.

With listing adding machines, equally valuable results can be obtained. In certain classes of work, such as collection letters in banks where there are rows of figures representing the various checks, and typewritten information, such as description of endorsements, it is much faster to place the sheets in the adding machine and list the amounts thereon and automatically print the total with the adding machine. This avoids the trouble due to operators printing wrong totals on the billing machine. The typewritten information is then put in on the typewriter or billing machine. There is this to be said, however, if an operator prints a wrong amount on a listing adding machine, the answer will be incorrect, but the machine will print a correct total of the figures printed by the machine. A listing machine can be equipped with a wide carriage and used for printing lists of figures just the same as a typewriter. Time should never be wasted printing a statement covering rows of tabulated figures on any typewriter, and then taking the statement to an adding machine and adding the columns to prove them, if it can possibly be arranged to make up the entire statement on the listing machine. Listing machines are now prepared to manifold at least two extra copies, and are equipped with column tabulators.

For adding a number of columns, with or without a grand total column at either the right or left side of the book or sheet, and where the items are written one at a time in _different columns_, the combined typewriter and adding machine is recommended. One such is shown in Fig. 22.

COLORED SHEETS

The "colored sheet system" indicated below makes it unnecessary to refer to the written matter for distribution. A glance indicates the department or service for which every slip is intended. The distribution may be as follows:

The office record (register) may be filed numerically;
The order book copies alphabetically;
The requisitions by departments;
The shipping instructions, chronologically;
The salesman's records, territorially;
The cost sheets, according to classification.

One copy may also be filed geographically for comparison of results. This furnishes a complete record and makes reference easy.[6]

Footnote 6:

As a general rule, the "order acknowledgment" has been handled
separately, although it is possible to include it in the one writing.

This summary illustrates the use of the color scheme, and gives a brief hint of the plan usually followed in filing order sheets for various departments. It should be remembered that the best billing and order plan in the world can be made the most abject failure, if proper attention is not given to the proper filing of sheets.

Fig. 22. Combined Typewriter and Adding Machine. _Elliott-Fisher Co._
]

For example, if clerks in looking for a certain order could always give the order number, but not the name of the customer, it would be wrong to file the orders alphabetically; in such cases, file the orders numerically. Always file papers according to the information which the clerk or executive will have at hand when looking up the same. Sometimes, papers will be just as easily found when filed numerically as alphabetically.

=Reference Information.= One very important feature to remember in designing forms is to place all reference information on the right-hand side of the sheet. In leafing loose sheets held in binders, it will be easy to find the desired sheet if this plan is followed; but, if the reference numbers are placed on the left side of the sheet, it will be necessary to open the binder relatively wide to see each number.

In the illustration, Fig. 23, it will be noted that the order number is properly placed, and that the printed headings are aligned horizontally at the back, which permits all typewritten matter to be started evenly. The value of this point was touched upon in a previous chapter, as to saving of time in the execution of the work. In this particular form, however, there is typewritten matter to the left of the headings, such as _account of_, _ship to_, etc. The marginal stop on the billing machine should be set for the first typewritten matter, and tabulator stops used for all matter to the right on each line.

COMPOUND FORMS

One of the most effective means of short-cutting work, where the nature of the business will permit, is through the use of compound forms. These forms derived their name from the combination of order and billing work on one set of sheets and accomplish in one operation, sometimes in two, all the clerical work incident to the receipt, registering, acknowledgment, billing, charging, and shipping of an order.

It can be readily seen that if a firm can fill its orders completely, or almost so, that there is no use to wait until the order is filled before billing it. It is a great deal easier to place another sheet along with the order forms and use it for an invoice. It is generally placed as the top sheet of the set, and therefore it is the original.

=Goods Shipped for Entire Order.= If the nature of the business is such that the firm can always fill its orders completely, it is perfectly safe to enter prices, make the extensions, and complete the invoice, with the possible exception of the date when the goods are finally shipped, if they cannot be sent out the same day. In such cases, a printed heading is provided on the invoice, opposite which the shipping date is typewritten. This then becomes the date of invoice.

Fig. 23. The Colored-Sheet System. A Different-colored Sheet is Used
for Each Department
_Underwood Typewriter Co._
]

=Goods Almost Completely Shipped.= If it is possible that one, two, or three items cannot be shipped at all, or in part only, it is the custom to hold the invoice (and copy, or copies, when there are any) in the office, arranged alphabetically according to customers, pending receipt of information from the shipping department as to quantities, weights, etc., of goods shipped. This invoice is an exact typewritten duplicate of the balance of the order forms, and has the heading for quantities to be shipped and, usually, prices for each article. Neither the extensions of the items nor the footing of the bill have been made. Generally, a copy of the order showing the quantities, weights, or measures marked thereon is handed to the office. The copy of the invoice is then placed in the machine, and the prices, extensions, and footings made to correspond with the items which have been shipped. The question arises in regard to the items which have not been shipped. Some firms print on the bottom of each invoice the sentence: _All items which are not priced nor extended have been "back-ordered" and will be shipped later._ Other firms typewrite an _X_ in the price column, or number the items which have not been shipped. They then make a written explanation on the bottom of the invoice regarding the date at which the balance of the goods will be shipped. In some lines of business this plan tells the customer not only what he ordered, but what has been shipped and when the balance will be shipped. The memo on the bottom of the invoice also saves the writing of letters to customers.

In other lines of business, this plan would be absolutely unfit—for the reason that certain firms do not wish to call the customer's attention to the items which have been omitted.

Compound forms generally have two columns at the left—one for the goods ordered, the other for the goods shipped. If this were not provided, it would be necessary to erase quantities in all instances where a different quantity were shipped from the quantity ordered.

Fig. 24 is a good illustration of forms for a line of business which always has the goods in stock. The various brands of goods are printed in the body of the invoice. All that is necessary is to write the quantities, prices, extensions, and footings. Four copies are manifolded—invoice, warehouse order, house record, and collection record.

RETAIL DRY GOODS BILLING

The retail dry goods houses and department stores use a form of billing which is different from any other, in that the bills are rendered to the customer once a month only. There are other lines of business which render their bills monthly, and which use the same style of billing.

A folded form is used, the top sheet when completed at the end of the month is mailed to the customer. The second or duplicate is retained for the record of purchases.

When a customer makes a purchase, the saleslady makes the charge in her sales book. One copy goes with the goods to the wrapping desk, the other goes to the cashier's desk. The wrapper cannot handle a package without a duplicate sales slip. The packer removes from his duplicate slip a stub bearing the same number as the slip. This is to prevent goods being removed from the house without proper authority. The cashier retains the slip if cash has been paid, but passes the slip on to the auditing department, if the slip is marked by the saleslady _charge_.

Fig. 24. Compound Forms, Showing Invoice and Office Records
_Remington Typewriter Co._
]

In large stores like John Wanamaker's, the customers are given by the credit man a brass check with their number marked thereon. This shows each clerk with whom they deal that they are entitled to credit, without having them identified each time they make a purchase. In smaller cities, the clerks become familiar with all the charge customers, and any plan of this character is not needed.

The sales slips are all numbered from _1_ to _50_, and the auditing department checks back each day all the slips of the different sales-people to see if all the slips have been accounted for. Some stores have a chart on the cashier's desk _with the clerk's number at the top of each column_, and the check numbers listed serially in each column, as shown in Table I.

Table I
CHART FOR CHECKING RETAIL SALES SLIPS

══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══╤══
1│ 2│ 3│ 4│ 5│ 6│ 7│ 8│ 9│10│11│12│13│14│15
──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──┼──
1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1│ 1
2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2│ 2
3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3│ 3
4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4│ 4
5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5│ 5
6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6│ 6
7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7│ 7
8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8│ 8
9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9│ 9
10│10│10│10│10│10│10│10│10│10│10│10│10│10│10
──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──┴──

As fast as the checks are received at the cashier's desk they are checked. If one of the clerks should sell goods to a friend, and send one slip to the packer, but destroy the cashier's copy, the fraud would be detected, as the next slip which would be sent in would show by the number that the previous one was missing. The matter could be investigated immediately. The auditing departments of different stores handle the detail of the work in various ways—which, however, are about the same. Some stores, after they prove that there are no slips missing by checking the slips by the serial numbers, add them up on adding machines. As some stores do not care for a list of the slips, they use a non-listing machine, such as the comptometer. Other stores add the sales of each clerk separately, and add the totals of all the clerks to secure the total sales. The total sales of each clerk are then entered on a statistical sheet which shows a comparison of the total daily sales of each clerk for the month, as shown in Table II.

The slips are then sorted according to departments, then added again, and similar information written on statistical sheets with the department numbers at the top, instead of the clerk numbers. The grand totals must agree to prove the work.

The slips are then sorted according to customers. If Mrs. J. B. Jackson has bought goods in three different departments, the auditing department will pin the three slips together and mark the total of the slips to be charged to her account on the back of the under slip. If there are twelve bill clerks and twelve billing machines, all the slips will then be assorted into twelve lots, each lot representing the number of accounts taken care of by each bill clerk.

TABLE II
COMPARISON OF DAILY SALES OF CLERKS

══════╤═════════╤═════╤═════╤═════╤═════╤═════╤═════╤═════╤═════
│Clerk No.│ 1 │ 2 │ 3 │ 4 │ 5 │ 6 │ 7 │ 8
──────┼─────────┼─────┼─────┼─────┼─────┼─────┼─────┼─────┼─────
Total │ Days │ │ │ │ │ │ │ │
335 38│ 1 │30 50│55 45│47 70│35 35│56 78│34 25│40 56│34 79
492 53│ 2 │56 74│87 55│9 76 │87 23│54 09│19 89│86 75│90 52
etc. │ etc. │etc. │etc. │etc. │etc. │etc. │etc. │etc. │etc.
──────┼─────────┼─────┼─────┼─────┼─────┼─────┼─────┼─────┼─────
│ │ │ │ │ │ │ │ │
──────┴─────────┴─────┴─────┴─────┴─────┴─────┴─────┴─────┴─────

Each bill clerk receives the slips in alphabetical order. The monthly folded bills are arranged in the same order. These are held in binders—a special kind, such as the Tengwall, being used—from which the bills can be easily and quickly removed. Some firms prefer to file daily in vertical files the current monthly bills, upon which the charges are being made.

Some machines, such as the Smith Premier and the Elliott-Fisher, have a carbon roll on their machines for manifolding these duplicate folded bills without handling the carbon paper. These attachments were especially designed for this particular work.

After the operator has entered the charges of the three slips for Mrs. J. B. Jackson, or any other customer having more than one slip for the previous day's purchases, she compares the total she has placed on the bill with the total marked on the back of the slips by the auditing department.

Fig. 25 shows samples of folded monthly retail bills. The black showing under the top sheet, which is turned over, is the carbon paper used with the bills when made on machines not equipped with the carbon-roll attachment. Some firms place the carbon paper between the sheets at the beginning of the month, and leave it there; others place the carbon paper between the sheets for every charge which is made to the bill.

After all the charges have been made, the operator adds up on the adding machine the totals of all the last charges on the various bills to which charges have been made that day. This total must agree with the amount which the auditing department handed over to each bill clerk to be entered upon these bills. The Smith Premier and Elliott-Fisher have tally-strip devices which automatically record the total of each charge made to all the various bills each day. This paper strip, when added up, must agree with the total of the auditing department figures.

At the end of the month, about the 26th, most firms begin to total the columns of the bill. The final total of each bill added to the total of every other bill must give a grand total equal to all the charges for the month. This proves that each bill has been correctly added. The balance due from the previous bills is then brought forward, and any payments made during the month deducted, and the bill footed. All credits for returned goods are entered during the month the same as the charges, excepting that they are placed in a separate column provided for that purpose, and deducted at the end of the month from the charges.

Some firms post the total charges and credits for the month to the ledger in two lump sums. Other firms prefer to post the total of each day's charges to the ledger daily, instead of letting the posting go until the end of the month. This is a matter to be decided from a bookkeeping standpoint. If the bookkeepers have the current month's charges in the ledger, it saves referring to the bills at the bill clerk's desk for information or the current month's charges.

Fig. 25. Monthly Statements of Retail Dry Goods Houses
_Remington Typewriter Co._
]

Fig. 26. Smith Premier Device for Inserting Dry Goods Billing Forms
Evenly
]

After the bills have been sent out, the duplicates are filed away. The best known way to file them is alphabetically; each customer's bill for the various months together. This is in contrast to the plan of filing each month's bills away separately. If it is wished to refer to any one person's charges for a given number of months it is necessary, under the latter plan, to refer to several binders.

Fig. 27. Remington Billing Machines
]

One of the devices which did more to permit cylinder machines to do billing successfully is shown in Fig. 26. Formerly, when two or more sheets of paper were inserted in a cylinder machine, the small feed roll which rests against the large rubber platen, fed the under papers at a different speed than those sheets which rested against the large roll. The result was that the papers were fed unevenly into the machine. When removed, it was impossible to replace them in the same relation in which they were before.

The device illustrated furnishes a resting place for evenly placing all the sheets in the machine by pressing a release lever which draws the feed rolls away from the large roll until the papers or sheets are properly placed in the machine. Started evenly, they will invariably feed evenly.

Fig. 28. Smith Premier Dry Goods Billing Machine
]

This is of particular advantage in retail dry goods billing, where a sheet is placed in and out of a machine as many as thirty times a month. If the top of the bill is each time started from the same starting point, namely, the top of the statement, it will feed correctly to the next writing point on the statement without any adjustment. The Remington, Fig. 27, and Underwood machines are equipped with devices for the same purpose. The Smith Premier, Fig. 28, and the Elliott-Fisher machines are equipped with rolls of carbon which automatically manifold folded monthly bill forms.

DEVICES OF THE FUTURE

One of the successful devices which is being perfected at this time is a combination of an adding machine and a cylinder billing machine which can be operated as a combined machine or separately as two machines, and may be actually removed, one from another. The idea is to have a platen or roll which can act as shuttle between the typewriter and the adding machine. By pressing a button, the roll travels from the typewriter to the adding machine. This scheme has the same advantage as has the farmer who can operate his horses singly or in pairs.

The adding machine people have been experimenting and gradually increasing the printing capacity of their machines. They are now able to print the different months of the year and some other abbreviations for monthly statement work. Further developments can be expected along this line. Adding machines which list are a very important factor in office work and their capacity is so large for certain classes of work that space does not permit of detailed treatment here.

Fig. 29. Adding and Subtracting Machine Combined with Cylinder Billing
Machine
_Remington Typewriter Co._
]

While marvelous improvements have been made in the last decade, the next one promises equally well, especially in the adding-machine line.

REVIEW QUESTIONS.

PRACTICAL TEST QUESTIONS.

In the foregoing sections of this Cyclopedia numerous illustrative examples are worked out in detail in order to show the application of the various methods and principles. Accompanying these are examples for practice which will aid the reader in fixing the principles in mind.

In the following pages are given a large number of test questions and problems which afford a valuable means of testing the reader's knowledge of the subjects treated. They will be found excellent practice for those preparing for Civil Service Examinations. In some cases numerical answers are given as a further aid in this work.

REVIEW QUESTIONS
ON THE SUBJECT OF
COMMISSION AND STORAGE

1. What advantages are derived from a division of the ledger? Name the three most common subdivisions of the ledger.

2. What accounts are kept in the purchase ledger; in the sales ledger; in the general ledger? Under what circumstances should accounts with an individual be kept in both purchase and sales ledgers?

3. What is a controlling account? What do the balances of sales and purchase controlling accounts represent? From what sources are the debits and credits to these accounts derived?

4. When loose-leaf order blanks are used, what is the customary routine followed in filling and charging orders?

5. For what purposes are special distribution columns in a sales book used?

6. To what accounts in the general ledger are total purchases, as shown by the invoice register, posted? In what way are these two accounts distinguished?

7. Describe briefly the cash journal, and explain how it is used? What, if any, objection can be raised to making entries which do not involve an exchange of cash, or its equivalent, in the cash journal?

8. Why is the expense account divided? Name some of the accounts representing different classes of expense.

9. What is meant by petty cash, and how should the account with petty cash be handled?

10. The check of Martin Mason for $164.20 went to protest, and was returned by our bank with a protest fee of $2.50. What entry is necessary to record this on our books?

11. Prepare trading and profit and loss accounts representing the transactions listed in Art. 16, Pages 28 to 31, inclusive.

12. How can an order record be used as a sales record? Why is an abstract of sales used in connection with such sales records? Explain how this abstract is made up.

13. If goods are sold at f. o. b. prices, but the freight is prepaid as an accommodation to the customer, how should it be treated on the books? Why?

14. Name three or more subdivisions of sales expense, and explain what items are properly included in each.

15. Why are check registers taking the place of the old style check book? When a check register is used, how are the checks kept?

16. What is a cash received book, and for what purpose is it used?

17. Complete the exercise given at the end of Art. 29, Page 42.

18. What is your understanding of the meaning of the terms _commission_ and _brokerage_? What is the distinction between a commission merchant and a merchandise broker?

19. What is a manufacturer's agent, and how does his business differ from that of a commission merchant or broker?

20. By what term is a consignment of goods to a broker known on the books of the shipper? In what name is an account opened to represent the consignment?

21. How is the above account made up? When is the account closed, and to what account is the balance transferred?

22. What is an _account sales_? When an account sales is received without a remittance, what account should be opened, and what does it represent?

23. When a broker receives a shipment of goods to be sold on commission, by what name is it known on his books? In what name is an account opened?

24. If a broker renders an account sales without a remittance, to what account should he credit the net proceeds? Why?

25. If a broker has on hand any unsold consignments when his books are closed, do the accounts represent assets or liabilities? How would you determine the broker's liabilities on account of consignments?

26. Name the books used by a produce shipper, and explain how each is used.

27. What is a _shipment ledger account_, and how is it made up? What is a _profit and loss on shipments account_?

28. In what way does the journal used by a shipper differ from the one used by the average merchant?

29. How is the trading account of a shipper made up?

30. Prepare trading and profit and loss accounts called for in Art. 48.

31. Name and describe the uses of the books used by a commission merchant.

32. Prepare trading and profit and loss accounts, and balance sheet called for in Art. 57.

33. What is a storage business, and for what purpose is it conducted?

34. What is a warehouse receipt, and what does it represent?

35. Explain what is meant by _simple storage_, and _average storage_.

REVIEW QUESTIONS
ON THE SUBJECT OF
SINGLE ENTRY—COMPARATIVE STATEMENTS

1. What is the distinctive feature of single entry bookkeeping? In what respect does single entry fail to fulfil the functions of bookkeeping?

2. What books are usually used in single entry? How does the single entry cash book differ from that used in double entry?

3. In posting, what features distinguish single entry from double entry?

4. How can the accuracy of single entry books be proved?

5. To determine the profits of a business whose books are kept by single entry, what steps are necessary? What are the steps in closing single entry books?

6. On a certain date the assets and liabilities of Henry Lamson are as follows:

ASSETS

Cash $452.00
Due from sundry debtors 77.20
Merchandise per inventory 764.50

LIABILITIES

Due sundry creditors 142.00

The following transactions are recorded:

Sales to sundry persons on account $46.71
Bought from sundry persons on account 339.54
Sales for cash 96.90
Received cash on account 64.00
Paid cash on account 133.50
Paid cash for rent 37.50
Paid cash for clerk hire 8.00

Record these transactions in single entry books; prepare proof of ledger and statements of assets and liabilities, the merchandise inventory at end of period being $983.75. Do the books show a profit or a loss, and how does it affect the account of the proprietor?

7. Explain, briefly, the necessary routine followed in changing single entry books to double entry.

8. H. P. Hayes established a small factory upon a borrowed capital of $10,000. The undertaking was a success, and at the close of the first year his financial condition was disclosed by the following particulars:

Bills payable $4,000.00
Accounts payable 6,574.50
Cash 1,752.50
Accounts receivable 12,694.18
Inventory 4,765.90
Salaries 3,500.00
Sundry expenses 435.50
Manufacturing expenses 11,759.50

Mr. Hayes kept his own books during his first year in business, but did not keep them by double entry. His sales for the year amounted to $35,643.25, and his total purchases amounted to $16,076.07. At this point Mr. Hayes admitted as a partner, A. B. Andrews, who contributed $10,000.00 to the partnership upon the agreement that the partners should share equally in the business. A bookkeeper was engaged to keep the books by the double entry system. From the particulars given, make a trial balance and the necessary journal entries to complete the change to the double entry method. Ascertain the interest of Mr. Hayes in the business, and credit his account with the same.

9. Foster, Harvey, and Morton—a copartnership—wish to change their method of bookkeeping from single to double entry. The partnership agreement provides that each partner shall share in the profits in proportion to his investment. Separate investment and withdrawal accounts have been kept with each partner. In the following statement of ledger accounts, partners' investment accounts show the same balances as at the last adjustment, no additional investments having been made:

Foster, Investment Credit Balance $1,600.00
Harvey, Investment Credit Balance 1,200.00
Morton, Investment Credit Balance 1,200.00
Personal Accounts Credit Balance 900.00
Personal Accounts Debit Balance 1,900.00
Foster, Withdrawals Debit Balance 315.00
Harvey, Withdrawals Debit Balance 240.00
Morton, Withdrawals Debit Balance 155.00
Bank Debit Balance 2,050.00
Cash in Office 45.00

An inventory shows merchandise $1,775.00, fixtures $300.00.

Show all entries necessary to make the partnership adjustment and change the books to double entry, indicating by check √ the accounts to be posted.

10. The books of the Star Coal Company, a corporation with a paid-up capital of $10,000.00, have been kept by single entry. The following facts are gathered from the books:

Cash in Bank $3,500.00
Personal Accounts Debit Balances 6,500.00
Cash in Office 200.00
Personal Accounts Credit Balances 2,500.00

An inventory results as follows:

Coal 3,750.00
Horses and Wagons 800.00
Furniture and Fixtures 300.00

Make necessary journal entries to change to double entry. Provide a reserve of 5% for uncollectible accounts, 10% for depreciation of horses and wagons, 10% for depreciation of furniture and fixtures. Declare a dividend of 10% and transfer balance of profits to surplus, making all journal entries to record these transactions.

11. Prepare a model trial balance of an imaginary business, or one with which you are familiar, giving special attention to the proper grouping of the accounts. Explain the benefits of your grouping of the accounts.

12. What is a _working balance sheet_? From the trial balance, which you have prepared, make up a working balance sheet, supplying such additional figures as may be necessary.

13. What are the fundamental advantages of comparative statements? On what basis should percentages be figured in on analysis of the manufacturing account? of the trading account?

14. To prove the accuracy of the ledger without a trial balance, what steps are necessary? What test is applied to determine whether the ledger balances?

15. What is meant by a _book inventory_? How can the receipts be determined? the disbursements or quantities sold?

16. What is the _reverse_ or _slip posting system_? How is it operated?

17. Describe, briefly, the _loose-leaf ledger_. Describe the principal methods of indexing. Name some of the advantages of the loose-leaf ledger.

18. For what classes of accounts is the card ledger specially desirable? What are the principal methods of indexing the card ledger?

19. What is a _tabular ledger_? Describe the Boston Bank Ledger. Is a tabular ledger well adapted for commercial accounts?

20. What is meant by a _balance ledger_? What are its advantages?

21. Prepare a form of cash journal segregating administrative, selling, and manufacturing expense for an imaginary business, or one with which you are familiar.

22. Prepare a form of sales journal for a business having five departments.

REVIEW QUESTIONS
ON THE SUBJECT OF
TRUSTEES' ACCOUNTS; STOCK
BROKERS' ACCOUNTS

1. From an accounting standpoint, into what two classes can business be divided? What is the position of the trustee of an estate, as against the public?

2. Describe the essential features of the _accounting_ of an executor.

3. In what two forms may an executor's accounts be kept? By what term are his accounts with properties known?

4. What are the proper classifications of an executor's accounts?

5. Two trustees collect in one year an income of $50,000.00 for a beneficiary, at an expense of $3,100.00. If each trustee receives an equal share, what commission should each receive, and what amount will be paid to the beneficiary, under the New York law? Prepare a complete solution of this problem.

6. Prepare a solution of the following: Four trustees collect and pay out of an estate the sum of $416,000.00, the total debts of the estate being $201,000.00. What commission will each trustee receive?

7. Prepare a statement of the executor's accounts—from the particulars given on Pages 17 and 18—showing the balance due each legatee.

8. What is a _realization and liquidation account_? How is it made up?

9. What is a _statement of affairs_? In what respect does it differ from a balance sheet?

10. How does a statement of affairs of a bankrupt differ from that of a going concern?

11. What is the purpose of a _deficiency account_?

12. Wm. Andrews, finding himself on July 1st unable to meet his obligations, asks you to make up his statement of affairs for submission to his creditors, and a deficiency account for his own information. You find from his books and other sources the following facts regarding his business:

Unsecured creditors $9,000.00
Fully secured creditors 2,300.00
Holding securities of the value of $3,000.00
Partly secured creditors 35,000.00
Holding securities of the value of $20,000.00
Preferred claims 800.00
Bills payable 20,000.00
Accounts receivable, home office (good) 1,000.00
" " (doubtful) $200.00, estimated to
realize 75.00
" " (bad) $300.00
Stock, Home Office, cost $1,500.00, estimated to
realize 1,200.00
Stock and accounts receivable, less sundry liabilities,
at branches 36,000.00
Of which it is estimated there will be a loss
on realization of stock $6,000.00, of accounts
receivable $9,000.00.
Buildings and equipment at branches, cost $40,000.00,
estimated to realize 20,000.00
Office furniture $300.00, estimated to realize 200.00
Cash in office 4.00
Cash in bank 80.00
Bonds held by fully secured creditors 3,000.00
Stocks held by partly secured creditors 20,000.00

Six years ago Andrews' capital was $42,000.00. The profits for the first three years appear to have been $3,000.00, $4,000.00, and $5,284.00, and the losses for the three subsequent years $1,500.00, $2,500.00, and $3,000.00, after allowing $2,000.00 a year for interest on capital. His withdrawals have been at the rate of $4,000.00 a year. From these particulars, prepare a statement of affairs and a deficiency account.

13. What differences exist between a transaction for the purchase or sale of stock, and the purchase or sale of grain?

14. Explain a _ring settlement_.

15. What is necessary to post to the customer's ledger account, and from what sources do you post?

16. Show form of _margin book_ and explain how it is kept.

17. In what cases should interest be charged? What is it charged for?

18. What should be entered in the general cash book?

19. Explain fully the handling of _office cash_.

20. If _A_ bought 5,000 bushels of wheat at $1.20, and sold 12,000 bushels at $1.21, how much cash would he be obliged to deposit to secure the fulfillment of his orders?

21. What is the cash which he deposits called?

22. Write an order form for the sale of 25,000 bushels of corn @ 76¼c made upon the orders of Mr. D.

23. Show what acknowledgment must be made to Mr. D.

24. What is the _daily record sheet_? For what purpose is it used? Explain the entries in this book.

25. Explain how stock purchases should be handled, what records should be kept, and what information in regard to them is necessary.

26. What is the difference between a _bull_ and a _bear_?

27. Explain the meaning of a buying order and state how it should be treated in the accounting department.

28. On July 5th James Robinson sold 25,000 bushels of September wheat at 1.04½; on July 10th he purchased 10,000 bushels wheat at 1.02¼, and on July 11th he purchased 15,000 bushels of wheat at 1.02. Make a statement of this account for Mr. Robinson.

29. What is the difference between _listed_ and _unlisted_ stock?

30. What is a _debit_ or _credit slip_ and for what purpose is it used?

31. Show the ruling of the stock ledger and explain the necessity of each column. Rule a sample page.

32. For what purpose is the journal used in connection with the brokerage business?

33. Explain the meaning of _buyer's option_.

34. Explain the meaning of _carrying charges_.

35. Explain the meaning of _a put_ and _a call_.

REVIEW QUESTIONS
ON THE SUBJECT OF
BILLING AND ORDER RECORDING

1. Explain the difference in principle between the _cylinder_ billing machine and the _flat-bed_ billing machine.

2. Explain the meaning of _manifolding_.

3. Explain in your own language why the plan of copying invoices in tissue books with a letter press is inferior to the billing-machine method of typewriting the invoice and sales sheet simultaneously.

4. If an office boy mailed a pen-written invoice without copying same in the tissue book, what method would enable the firm to detect such oversight?

5. What is the difference between the style of invoice used on flat-bed machines and on cylinder machines?

6. When a concern uses two ledgers on account of having too many customers to be conveniently held in one ledger, what change is advisable in ruling the columns of the sales sheet?

7. What plan is used in classifying sales according to territory, salesmen, etc.; and what means is used to prove the footings of each page?

8. How much of the left side of the sales sheet do you understand is covered by the invoice when they are both in the machine for the purpose of making the bill and charge?

9. How do you classify with the machine the amounts of the bills in the columns to the right of the total column?

10. Name all of the reasons you can, whether included in the textbook or not, for making duplicate invoices.

11. Explain why some firms are enabled to make their invoices (and, of course, sales sheets) before the goods are shipped, and give reasons why other firms are forced to wait until after the order has been shipped, or at least partially shipped, before making invoices.

12. Explain what plan you would use to inform the packer of the description of the goods to be shipped, but prevent him from knowing the quantities, in order to further prevent him from double-checking the figures showing quantities and at the same time neglecting to count the articles.

13. Where the firm sells three or four classes of goods and wishes to keep a continuous record of the tonnage sold, that is, weight of the various classes of goods, how would you rule the invoice and sales sheet in order to shorten the billing?

14. If you were forced to substitute one size of an article in place of another size ordered (without injury to the customer), how would you design your forms in order to enable you to typewrite the size shipped and size ordered on the sales sheet, and size ordered, only, on the invoice?

15. If you wish to typewrite a requisition for goods ordered at the time the invoice and sales sheet are written, how would you arrange it?

16. What is the difference between the terms _unit billing_ and _condensed billing_? Under what conditions would you recommend unit billing and when condensed billing?

17. What is the best plan of facilitating the filling of orders where there are a large number of floors or departments and where each day's orders are supposed to be filled upon the day the orders are received?

18. Why should a plan which is highly satisfactory in a small concern prove to be an absolute failure in a large one?

19. What is meant by _split orders_?

20. Describe the different forms of punched holes of loose-leaf sheets and why the closed-hole punching is not adapted for use with records which are to be removed and replaced in binders from time to time.

21. Describe the different forms of binders with which you are familiar.

22. In printing invoices what is the best plan of designing the headings in order to facilitate the execution of the invoice on billing machines? Would you pay any attention to the space between the lines of the heading and to the distance between the last line to be typewritten on the heading and the first line to be typewritten on the invoice?

23. Explain the mistakes made in using carbon paper, and under what conditions you would use the various weights of carbon paper.

24. Explain what is meant by a _blind_.

25. Explain what is meant by _credit memoranda_, and tell how to use them in connection with a sales book instead of having to use a separate credit sheet.

26. Explain the use of special characters on the billing machine, and what is meant by aligning them in order to prevent one abbreviation being printed over the top of another.

27. Explain the difference between a single-stop tabulator and a decimal-stop tabulator.

28. What is the advantage of having a billing operator on a platform on wheels in a wholesale dry goods house?

29. Under what conditions would you recommend the use of the separate billing machine and separate computing machine for the same work?

30. Explain the benefits to be derived from the use of the color scheme.

31. What is meant by _compound forms_, and under what conditions can they be used?

32. In what general way does retail dry goods billing differ from condensed billing and what is the difference in the general style of stationery used?

33. What is the best plan of filing the duplicate monthly retail dry goods bill?

34. What is the plan used in retail dry goods billing to prevent goods from being shipped out of the store without a charge being made?

35. What is the advantage of a subtracting device on the billing machine with adding attachment?

INDEX

_The page numbers of this volume will be found at the bottom of the
pages; the numbers at the top refer only to the section._

A

Abstract of sales 1

Accounting forms, special 146-161

cash books 155

ledgers 147

balance 152

card 148

loose-leaf 147

tabular 152

pay-roll records 160

tabular sales book 157

Accounts with trust provisions 180

Adding machine and cylinder billing machine combined 301

Adding machine and typewriter combined 289

B

Back orders 262

Balance ledgers 152

with two balance columns 154

with two credit columns 154

for installment accounts 155

Bearing the market 229

Bid price 229

Billing machine

development of 242

how to handle orders and bills on 280

Smith Premier 300

Billing and order recording 235-301

acknowledgment of order to salesman 268

analysis of quantities and amounts 257

back orders 262

billing machine 241

carbon paper 277

colored sheets 288

compound forms 290

computing machines in connection with 286

duplicate invoices 253

goods purchased outside 258

information on sales sheet not on invoice 257

loose-leaf sales sheets and invoices 244

manifolding, machines for 239

order form 266

reference information 289

retail dry goods billing 292

split orders 264

stationery 269

traffic department records 256

unit billing 260

Blinds 280

Board of trade terms, glossary of 229-232

Book inventories 134

Borrowing stock 229

Boston bank ledger 152

Break in the market 229

Broken lot 229

Brokerage concern, legitimate 198

Broker's commission 197

Bucket shops 197,
229

Bulls and bears 196

Buy at market 229

Buyer's option 229

Buying order 230

C

Cables 230

"Call" 230

Card ledgers 148

Carbon paper 277

color 277

copy 279

finish 277

four-pound 278

full 279

pen 279

pencil 279

seven-pound 278

ten-pound 278

troubles and remedies 279

wearing quality 280

Carrying charges 230

Cash book 15, 155

Cash grain 230

Cash received book 49

Check register 45, 227

Clearing house 199

Colored sheet system for billing and order recording 288

Commission accounts 60-83

actual sales, treatment of 68

cash book 77

consignment 62

consignment ledger 77

exercise 76

manufacturer's agent 60

merchandise broker 60

produce shipper's books 63

receiving book 77

sales book 77

sample transactions 69, 78

shipments 61

shipper's trading account 68

Commission, executor's 168

Commissions 230

Commodities handled by brokers 200

Comparative statements 129

book inventories 134

proof without trial balance 131

reverse or slip posting 143

trial balance 129

Computing machines, use of, in connection with billing 286

Consignment 62

commission account 63

principal's account 62

Controlling accounts 12

"Cornering the market" 200

"Curb" 230

Curbstone broker 230

Customers' ledger 220

Customer's statement 224

Cylinder billing machines 241

D

Debit and credit rules 93

Debit and credit slip 206

"Delivery" 230

Designing stationery 273

"Dividend" 230

"Dump" 230

E

"Even" 230

Executor's accounts 163

classification 168

commissions 168

form of 166

sample accounts 169

schedules 164

Expense account, subdivision of 16

F

Flat-bed billing machines 241

"Flurry" 230

Forms

abstract of sales, departmental 43, 57

accounting of an executor 186

balance form for general ledger 222

balance form of ledger card 151

balance ledger for installment accounts 155

balance ledger with two balance columns 154

balance sheet and trial balance of general ledger 37

billing of invoicing loose-leaf sales book 249

Boston bank ledger 153

broker's general cash book 213

broker's statement to a customer 223

cash journal 156

columnar 27

for commission business 66, 72

cash received book 48

check register 228

check register and cash expenditure book 47, 58

colored sheet system for billing and order recording 291

commercial tabular ledger 153

commission merchant's

cash journal 81

consignment and sales ledger 82

general ledger 83

journal 80

receiving book 80

sales book 80

compound forms showing invoice and office records 293

credit slip given to customer by broker 206

customers' ledger, variety of rulings for 219

daily advice of purchase or sale rendered to customers 210

daily sales journal or record of grain sales 208

daily sales journal or record of stock sales 207

deficiency account which shows causes of loss 191

departmental pay-roll record for piece work and day workers 159

executor's account of cash receipts and disbursements 173

executor's accounts with trust provisions 181-185

executor's journal 172

general ledger 33-35,
227

information on sales sheet not on invoice 259

invoice for use on billing machine 247

journal entries, adjusting 25

journal entries to change to double entry 119

ledger with accounts classified 139-143

ledger after changing to double entry 120

ledger with two credit columns 154

ledger account of each stock handled 218

ledger account of an executor, classified 174

ledger card for dentists 149

ledger card for publishers 150

ledger proof without a trial balance 144

loose-leaf ledger 148

loose-leaf sales sheet 248

loose-leaf sales sheet and invoices 246

loose-leaf sales sheet and invoices with columns for 254
distribution of labor and stock

loose-leaf stock ledger 136

memorandum of deposit with broker to secure contracts 203