The Entries for Each Kind of Expense; for Example, Ordinary and Extraordinary Household Expenses, Business Expenses, and Wages of Clerks and Apprentices.

In addition to the accounts spoken of so far, you shall also have these in your books: Business expenses, ordinary and extraordinary household expenses, and petty cash. You shall also have an account for profit and loss, or as you may say, increase and decrease, profit and damage, or gain and loss. These accounts are necessary to every business so that the businessman will always know what his capital is, and at the end of the period, how it is progressing. I will illustrate clearly how these entries should be made.