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Dictionary of Law Terms: Balance

Dr. $1,500.75 Balance, • $1,500.75 To balance brought forward, $850.25 Cr. $650.50 850.25 $1,500.75 Dr. $2,379.20 Balance, $2,379.20 To balance brought forward $1,000.60.

The transactions of which the above is the total may be as follows: Dr.

CASH.

Cr. $1,378.60 $1,000.60 $2,379.20 Cr. 1892.

Jan. I Capital, . $1,000.00 Jan. I Pd. Brown & Co. 2 Sales, ،، 3 10.25 58.90 for 185 bbls. flour, $925.00 2 Expenses, . 20.50 “ ،، 45 4 . 115.10 3 10.50 “ ،، 5 110.00 4 20.00 a 6 " 118.00 ،، 5 4.00 8 6. ،، 110.00 6 . 1.50 " 9 120.00 8 " 60.00 “ “ IO 120.40 9 70.50 " II 120,20 12 Wages, 20.00 “ I2 55.00 13 Expenses, 30.50 “ ،، 13 105.50 14 . 40.00 “ ،، 14 110.00 15 30,20 16 " ،، 30.25 17 25.40 ،، 17 60.00 19 Wages, 20.50 18 “ 40.20 20 Expenses, 100.00 “ 19 50.40 ،، 20 45.00 $2,379.20 $1,378.60 The merchant may ascertain by a single operation the condition of his business as follows:

Balance of cash on hand.

Value of goods in stock $1,000.60 Present worth. $1,060.60 Hence, if you sell for cash, giving no credit, only the Cash-book is needed, as it will at any time, if correctly kept, show you the exact state of your business. As most merchants are obliged to give credit in order to do a profitable business, a Ledger is required, so that the merchant may at all times know what cash he has on hand, and what money is owing to him. A merchant, for instance, whose customers keep running accounts, will be obliged to keep at least three books, namely, a Cashbook to record the moneys received and paid out; a Blotter, for the entry of daily transactions; and a Ledger for posting accounts.

Suppose Mr. John Brown, a customer, wishes to know how his account stands. The merchant turns to the index in the front of his Ledger and finds Mr. Brown's account on page 75. Turning to the page indicated, the following statement is found:

Dr.