Commercial Education in Theory And Practice

Cover Commercial Education in Theory And Practice
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To Interest a\c, as per a\c, i $s.
It will be asked, How is this item to be balanced ? At the end of the year the capital of your firm belonging to different partners is debited with the interest agreed upon, and the total is debited to Interest Account in the Ledger.
It depends, of course, on how the firm's capital is made useful during the year, whether Interest Account shows a loss (by lying idle in bank or office) or lent out at interest among customers, if not invested in stocks or produce
....
We have seen entries for the different accounts, called " living " and " dead. " The living may be by hundreds ; the dead are generally limited to (1) Charges Account, comprising porterage, carterage, warehouse rent, and small items.
(2) Insurance (fire and marine).
(3) Brokerage Account.
(4) Commission Account.
(5) Interest Account.
(6) General Merchandise Account Cotton Account.
(7) Cable expenses.
BOOK-KEEPING AND ACCOUNTS 225 The writer has availed himself, in the description of the treatment of a "spot" transaction, of Lesson Notes, kindly placed at his disposal by Mr.


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