A treatise of book-keeping, or, merchant accounts

in the Italian method of debtor and creditor

Malcolm Alaexander

• Publisher: Routledge
• Year: 2019
• Print ISBN: 9780367175351
• eBook ISBN: 9780429614569
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

Published in 1986: The Fundamental Principles of that curious and approved Method are clearly and fully explained and demonstrated, from the Nature and Reason of Things: From which again is deduced a completed system of particular rules, and instructions for their Application to a Merchant's Business, considered as acting either for his own proper accounts; or in Commission, as factor for another.

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CHAP. II.
Containing more particular Instructions for the Formation and Use of Accounts in the Leger.

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SECT. I.
Introduction, concerning the Method of these Instructions; with some general Directions.

THE preceding Chapter contains the fundamental Principles, and Rules of the Leger; which are never to be transgressed, but in every Case to be applied, either in a more general or particular Manner: You must therefore take care to remember, and have them always in View. But then as to the complete Application of them, there remain several Things to be yet explained; and that we may have first a general Idea of what’s further necessary, consider, that all Accounts belong to one of these three Classes, Personal, Real, or Imaginary; and accordingly all the further Instruction that needs, or can be added, for finding the Debtors and Creditors (i. e. where any Transaction is to be placed in the Leger-Book) relates to these two Parts, viz. 1. The Invention of Imaginary Accounts for satisfying the third general Rule. 2. Particular Accommodations of the second general Rule for Personal and Real Accounts to some particular Cafes; either in the limiting of them to particular Conditions, or extending them fo as to comprehend several like Subjects under a common Name; and sometimes by a Mixture of tooth, indifferent Respects. The Consequence of which you’ll fee in what follows.

Before I proceed further in those particular Instructions, I shall here make a short Reflection upon Method of Instruction as to the Leger-Book, which has hitherto universally obtained, among our English Writers on this Subject; that the Difference of that, and what I have chosen, may more clearly appear. Their Method is this.

After such a very general Description of the Leger-Book, and of the Notion of Debt and Credit, as I could never think sufficient to give the Learner a clear and perfect Idea of the Principles, and Reason of this Method; they reduce all their other particular Instructions and Rules to certain Heads, and Blanches of Business (which is so far right:) And then, in the Way of Question and Answer, they shew what Accounts are to be made Debtors, and what Creditors, in the various Cafes and Transactions that most commonly occur under each of those Heads.

Now, though this Method seems to be very plain, and adapted to Learners, yet that it is both unreasonably tedious and obscure, will easily appear, when we consider, that a very few general Rules comprehend all those Cases, in such a Manner as to make the Sense and Reason of what’s to be done much more clear and obvious. Thus, for Example, one general Rule for the Use of Personal and Real Accounts, is a complete Instruction, for finding which of the Persons and Things concerned in any Transaction, are Debtors and Creditors. And though the corresponding opposite Debtors and Creditors (which make the Balance) are not expressed directly in that Rule, yet they are found by the Application of it, in all Cases where the Personal and Real Accounts concerned are Debtors or Creditors for the same Articles and so this one Rule comprehends a great many Cases; and (after the Explication of the fundamental Principles and Reasons of this Method, given in the preceding Chapter) is a complete and plain Instruction for them all, which saves the Memory the Burden of so many particular Rules. If these particular Cases were only brought as Examples, and Applications of a general Rule, which is first completely explained, the Method were more tolerable: But without this it’s not only tedious but obscure because the Reason of all those particular Rules is contained, and must be fought in the general Principles and Use of the several Kinds of Accounts. For as the Work of the Leger is the forming of Accounts for different Subjects; so till one has a distinct Idea of the different Kinds of Accounts, he can find nothing but Obscurity and Confusion, in a Multitude of particular Questions, answered in this Manner; whereas, after a clear, general Notion of the Nature and End of Accounts, and a distinct Description of the Use of the several Kinds of Accounts, as they are applicable in general, and also in different Parts and Branches of Business, such a Detail of Cafes and Applications is altogether superfluous: And as every Thing ought to be done with a sufficient Reason, so I shall here once for all

OBSERVE, That the Reason of making any Account, in any Case, Debtor or Creditor, is, that that particular Cafe or Article, falls within the Use of that Account, according to the Description of it; and again, the Reasonableness of forming such an Account, is to be sought in its answering the Design of Book-keeping, by representing such a particular Part of our Affairs in a clear and distinct State.

Therefore as I have in the preceding Chapter laid the Foundation of a perfect Knowledge of this Art, in a complete Explication of the general Principles and Rules; the Method I am to take in what’s further necessary, is, to give you, under distinct proper Heads, a general View of Transactions of Trade; and shew what Accounts, for recording those, Transactions, are to be opened in the Leger; and how they are to be used, i. e. what they ought to shew on the Debtor, and what on the Creditor fide; by which means you’ll have a short, easy, and distinct Scheme of Accounts under every separate Branch of Business; and can with Ease and Understanding, find, in any particular Cafe, under those Heads, the true Debtors and Creditors, i. e. the Accounts, and side of the Account to which that Case relates; and the Connexion of the Accounts follows of course, according to what has been explained in the preceding Chapter.

Such particular Notes and Directions, and even particular Cases, as may be proper to make the Nature and Use of some Accounts more plain, shall be added in their Places; but the Names and Uses of the several Accounts are to be well remembred as general Rules.

If, after all that I have said in Vindication of the Plan I have chosen, there may be some who would wish to be instructed in the Catechetical Way; I must say this to them, that if they mean to fall to work, without laying any Foundation of general Principles, they propose a very unreasonable Thing; but if they’ll first study these, as they are explained in the first Chapter, then they may go on to the Companion of the Books of Accounts, and as there is a great Variety of Examples of Business in the two Waste-Books, they may consider those as so many Questions proposed, in order to find the Debtors and Creditors; (which is the Purpose of all the tedious Instructions given in the Way of Question and Answer) and in the Journal they have the Solutions. But to put them in a better Way with this, I have after the second Leger-Book added a Table of all the Variety of Cases contained in the preceding Waste-Books, digested under distinct Heads, with the Dates, where Examples of these Cafes may be found in the Waste-Book. But, if they’ll rake my Advice, the more rational and effectual Way will be, to read the Instructions of this Chapter, and compare the Books along with them, according to the following Directions.

Some may, perhaps, fay, I have complained of the tedious Instructions of other Authors, and yet have made a larger Treatise than most others. To which I answer, That I have complained of their faying Little in a very tedious Method; while, at the same Time, they have neglected the mote solid and rational Part of the Instruction, and are also deficient in many useful Particulars. I have, indeed, made a pretty large Treatise, larger, perhaps, than those of some others of whom I complain; but then I hope it will be found, that I have done much more in the same Bulk; and in a Way more proper to bring a Learner to a clear, exact, and comprehensive judgment of the whole Art.

The General Division of Business is into these three Branches.

I. Proper Trade, which is for a Man’s own proper Account, and Behoof; and this again is distinguished into Domestick, which is managed by himself or his Domestick Servants; and Foreign, which is managed by Factors, who serve him in Commission.

II. Factorage; which a Man manages as Factor for another.

OBSERVE, Though the Materials of proper Foreign and Factorage Accounts, are the same, yet they must be separately considered, as they stand in the Employers and Factors Books.

III. Company or Partnership; which is for the joint Account of several Partners.

As all Transactions belong to one of these Heads; so, under each of them, you’ll find, in what follows, all the Instructions which, with the preceding general Rules, are necessary, for placing every particular Transaction in the Leger-Book. And for the Learner’s more distinct and ready Application of them, let him take these

General DIRECTIONS.

1. Carefully read over what’s explained under every Head, with the Description of the several Accounts, so as to fix in your Memory, at least the Titles and Denominations of these Accounts; by which Means you’ll readily know where to seek any particular Instruction you want. And it will still be better, if you can also remember the Descriptions and Uses of the Accounts; but this will come by Degrees through Practice and Experience. And as I now suppose a Learner, after having read and understood the general Rules in the former Chapter, set down to examine, and find the Debtors and Creditors in the following Waste-Books, in order to transfer them to the Leger; that he may apply what is in this second Chapter more easily and effectually, let him first read over what relates to proper Domestick Trade, then begin his Work, and go on till he meets with something relating to proper Foreign Trade; then read over what’s explained under that Head, and go on till he meets with something relating to Factorage; and after that to Partnership, for in that. Order I have gradually brought in Things in the following Books.

2. Consider carefully the precise Matter of Fact of every Transaction; or, the Thing narrated as then done (viz. at the Date of the Transaction) or then first mentioned as done, or advised of by your Doers and Correspondents; for this is the Thing to be now entered in the Leger and if any Thing which was formerly done or advised of, is mentioned in any, Transaction, because of its Connection with the present Fact or Advice, then to be sure it was (or ought to have been) entered when it wa...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Original Title Page
• Original Copyright Page
• Gale ECCO Print Editions
• The BiblioLife Network
• Preface
• Table of Contents
• Chap. I. Containing the fundamental Principles, and general Rules.
• Chap. II. Containing more particular Instructions for the Formation and Use of Accounts in the Leger.
• Chap. III. Of closing and Balancing Accounts, and Correcting of Errors.
• Likewise two Sets of Books, Waste-Book
• Journal
• Leger
• With an Appendix, containing Instructions for the Application of the preceding Art to the Business of Retailers, and private Concerns : More especially, for Gentlemen of Land Estates, and their Stewards or Factors.