ABSTRACT
The accountant would have taken off a trial balance and taking the personal accounts in detail, with date of last transaction. The profits and losses of the business are easily determined by any accountant familiar with the classification of accounts into representative, impersonal and personal, or, briefly, accounts representing losses and gains, business expenses, property values and transactions with individuals, and firms. The ledger contains all the debits and credits of all the business transactions in a classified form. In preparing statement of affairs or adjusting settlements among partners, the accountant should show from what source an increase of capital was derived or the cause of a deficiency or insolvency. The accountant should be sufficiently familiar with the laws in regard to partnership, agency, corporation, general principles of contracts, commercial paper, accounts, claims, usury, limitations, fraud, and embezzlement as to be able to perform his duties correctly and prepare accounts.
