ABSTRACT

The change in penmanship which distinguishes the body of books of accounts and business correspondence is gradually affecting business signatures. “A correct balance sheet,” in the words of one of the most practical and advanced British authors of accounting treatises, “is the supreme object of all bookkeeping.” The balance sheet of a business and the profit and loss statement as well, demand a correct and rigidly enforced classification of accounts. Customers’ accounts arc to be kept in a class by themselves. Expense accounts are to be kept in detail for statistical purposes, but grouped or aggregated for purposes of statement. A goods account and a trading account, to borrow names from British accountant-cousins, are employed in the place of the conventional merchandise account. The goods are credited to the goods account at cost prices, are taken over to the trading account, at cost prices.