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The Journal of a mercantile house ought to open, at the beginning of each year, with an enumeration of their assets and debts, as follows:
SUNDRIES Drs. to STOCK.
For the following, being the assets of the house
0 0 7. YN 15 0 5,400 00
313 00 3.00
0 0 1,340 100 3,3.30 120 970 0 10
Let the transaction to be first explained be an order for goods from a correspondent abroad. 1A house in Jamaica sends instructions to the house at home to buy and ship a quantity of manufactured articles, suited to the Jamaica market, as follows:
Order from JAMES ALLAN & Co., of Kingston, Jamaica, to HENRY BARCLAY & Co., of London. J.A. Linen; Lint Strelitz Osnaburgs, 14 bales, about 6d. per yard. & Co.
Best tow Strelitz do., 9 bales, 1d. or 4 d.
Linen tick assorted, 3-Iths width, 9d., 1s., 1s. 3d.: 10 pieces each, cut up in 22-yard lengths.
7-Sths, superior, 3d. a yard
drab, 20s. each.
black, 15s. each.
528. per dozen.
gentlemen's dress do. 72s. per dozen, This order the London merchant divides among six, seven, or more wholesale dealers, according to their respective lines of business. Each dealer, or tradesman, as he is commonly called, provides his portion of the order in the course of the fortnight, three weeks, or month, allowed him by the merchant; and when the goods are packed and ready to ship, he sends in his account, or bill of parcels, thus:
London, 20th February, 1843.
Bought of Simon FRAZER.
Inside wrapper, 16 yards, at 3d.
Then follow, stated in like manner, the particulars of 8 bales, No. 9. to 16. both inclusive,
The merchant, having received the whole of the bills of parcels, fixed on a vessel, and agreed for the freight, proceeds to make an entry at the Custom-house, and to ship the goods. That done, the next step is to prepare the Invoice, or general account of the shipment, as follows:
INVOICE of Goods shipped by HENRY BARCLAY & Co., in the Rawlins, J. Thomson, from London to
Kingston in Jamaica, on account and risk of Messrs. JAMES ALLAN & Co. of Kingston.
J. A. & Co. No. 1.
per do. per do. pe do.
93 7 0
8. to 16.
17. 18 to 24. 23. to
Puncheon strong calf-skin shoes, per J. Johnson's bill of paroels
274 15 11
4900 23 50
410 $ 27 4 $ 367 10 0 10 11 0 21 8 0
10, 1, 1.
1,284 18 3
Entry; duty on part at per cent.; bond and debenture
Do. per cent. on 1,5007. Insured
£30 0 0
3 18 9
33 19 9
158 11 9 £1,443 10 0
HRRY BARCLAY & Co.
At 6 months' credit; due 6th of September. Errors excepted.
London, 6th of March, 1843. This invoice, being sent out by the vessel to Messrs. Allan & Co., conveys to them a number of particulars in a short space; viz. the mark, the numbers, the value, and the contents of each package. In former times it was the practice to make an invoice very long, inserting in it a literal copy of each bill of parcels, but it has now become usual to make each tradesman deliver a duplicate of his account, to be sent abroad with the goods ; in which case the invoice may be, like the above, little more than a summary of the bills of parcels. This method has two advantages : it saves time at the countinghouse of the exporter ; and it affords to his correspondent an assurance that no more is charged to him than has been actually paid for the articles.
An invoice ought to be made out with the utmost care, for it is a document of great importance in several respects : first, between the exporting merchant and his correspondent abroad; and next, when in the hands of the latter, it may and generally does form a voucher for calculating the import duty, as well as for the sales effected to retailers or other dealers.
The sum insured by the exporting merchant generally exceeds the amount of the invoice by 2 per cent., because the recovery of a loss from insurers involves a charge of fully that amount. It is thus necessary to cover not only the price of the goods, and the charges of shipping, insurance, and freight, but such further sum as may enable the shipper, in case of loss, to carry to the credit of his correspondent the amount of the invoice, clear of any deduction.
JOURNAL ENTRIES resulting from the foregoing Invoice.
JAMES Allan & Co. Drs. to SUNDRIES.
For goods shipped to them in the Rarolins, Thomson, for Jamaica.
To JOHN WILSON; linen tick
per do. per do. per do. per do. per do.
478 15 11
42 0 0 236 6 0 367 10 0
32 2 0 328 6 3% 10 33 18 9 11 17 6 74 5 0
The preceding invoice, being for account of a mercantile house, who sell again to dealers, comprises a variety of articles: as a further specimen, we subjoin two short invoices, for account of sugar planters, and confined to articles consumed on their estates. INVOICE of Plantation Stores, shipped by HENRY BARCLAY & Co. in the Adventure, J. Williamson, Master, for Kingston, Jamaica, by order of Mr. JAMES THOMSON, Planter, and for his account and risk.
J. T. 1. to 6.
6 bales lint Osnaburgs, per bill of parcels from James Anderson
• £240 00 Then follow, in 'ike manner, the mark, number, and contents of various other packages of plantation stores (hats, shoes, nails, &c.), composing the shipment; amounting in ali to
INVOICE of 60 Barrels of Herrings, shipped by HENRY BARCLAY & Co. of London, in the Barclay, James
Ferrier, bound to Barbadoes, by order and for account and risk of John HENDERSON, Esq., Planter, and consigned to him at Bridgetown, Barbadoes.
Lmdon, 18th of Feb. 1843. J. H. 60 barels prime white herrings, deliverable at Bridgetown, Barbadoes, free of charges, at Pls. per This invoice is very short, the agreement having been, that the herrings should be delivered at a fixed price, all charges included.'
Account OF SALES. — We come now to a transaction of a different kind; to the sale of goods imported from abroad. A merchant in England receives from a correspondent, whether in India, the West Indies, or North America, notice of a shipment of sugar, coffee, rice, or other produce, about to be made to England, with instructions to effect insurance on the computed value. This is the first step in the transaction; on the arrival of the vessel the goods are entered, landed, and warehoused ; and a broker is instructed to report on the state and prospects of the market. On a sale taking place, an account is made out and forwarded to the correspondent abroad, as follows: ACCOUNT SALB of 7 Hhds. Sugar, by the Ceres, from Trinidad, for Account of Morais Pirtuan, Esq., of Trinidad.
crt. gr. lbs. Insurance on 1751. at 60s. per 1001. £5 5 .
7 hhds. weighing Policy
.0 10 6
M.P. 1. to 7.
Nett 78 00
at 60s. per cut! } 234
5 15 6 23 15 4
0 9 7 106 19 0
0 6 0 2 12 10 0 16 0 1 15 2 0 36 0 6 0 1 12 3 2 6 9 4 13 4 0 17 6
152 8 9
€2.34 00 HENRY BARCLAY & Co.
Nett proceeds, due 2d of May, 1842
£234 0 0 Lendon, 21 of April, 1843.
Errors excepted. We have here, on one side of the account, the quantity and value of the goods sold ; on the other, the various charges attending the bringing home, the warehousing, and the sale of the articles.
The quantity of goods accounted for in an account sale must be the same as in the invoice ; if it be less, whether through damage at sea, through waste, or any other cause, the extent of the deficiency should be explicitly stated. By the “overtaker" in the following sale is meant the additional barrel or package required for the coffee taken out of such of the tierces as have been opened on account of breakage or other damage.
Allowances of Weight. — The tare is the weight of the cask, and differs, of course, in almost every package: but trett (see the following sale) is a fixed allowance of 5 lbs. per tierce in the case of coffee, intended, like draft in the case of sugar, to insure good weight to the buyer, and to enable him to do the same to those who purchase again from him.
ACCOUNT SALE of 20 Tierces Coffee, per Vittoria, from Demerara, for Account of JANE FORRES, Esq., Demerara.
Gross Weight. Tare.
Cpt. grs. de. Cret. gra. Ibs. 7001. at 50s. policy, 368. 9d.
19 6 9 No.
3 2 15 Freight on 114 cwt. at 78. 60.
1. to 20. 5 do. 32 2 5
40 5 per cwt. • £42 15 0
4 do. 24 2 4
2 3 16 Primage, pierage, and trade 176
44 2 6
87 1 16
10 2 8 Dock dues 10 91
Trett 0 2 14 Land waiters, entry, and part of bond
1 2 6 Insurance from fire 0 19 6
110 22 Public sale charges
1 7 6
Deduct 11 0 92 Brokerage, 1 per cent.
6 16 7
Nett 76 0 22 at 1213. 6d per cwt. 462 17 2 Commission, 25 per cent. on 676l.
16 18 0 Commission, per cent. on 7001. insured 3 10 0
Gross Weight, Tare.
Cnt. grs. lbs. Cret, qys. Ibs.
2 'O 9 Nett proceeds, due 3d of May, 1831 571 13 1
3 do. 19 3 15
2 1 15 £676 5 6
4 1 24 Trett 0 1 1
Deduct 4 2 25
Nett 32 1 19 at 1208. per cwt.
191 94 Gross Weight.
083 2 1 Discount, 1 per cent. 6 16 7
Gross proceeds £676
HENBY BARCLAY & Co.
London, 3d of April, 1848.
Freight is charged on the weight of the produce only; not of the produce and packages together. This allowance is of old standing, and is to be traced less to the reason of the case, than to the competition prevailing among shipmasters.
JOURNAL ENTRIES resulting from the preceding Accounts of Sale.
THOMAS KEMBLE & Co. DRS. to SUNDRIXS.
Procexxis of 7 hlius., M. P. 1. to 7., sold by them at one month's credit, from 2d of Aprit
Proceous of 20 tierces, J. F. 1. to 20., sold at one month's credit, from 3d of April.
SEOAR per CERE Dr. to SUNDRIES.
and fire insurance, 63.
• £5 10 10
1 12 3 To MORRU PITTMAN; proceeds due 2d of May, 1843 .
5 13 6 2 6 9
7 3 1 81 11 3 234 0 0 19 6 9
Cory s per VITTORIA Dr. to SUNDRIES.
We have thus given an example of the transactions which form a great part of the business of our merchants ; the export of manufactured goods, and the import and sale of produce received in return. Our next illustration shall be of a merchant's Cash-book. The following is an example of the entries for a month :
2,650 0 0
145 10 0
175 3 0
320 15 0
200 0 0
152 10 0
970 0 JO
J $42. Mar. 1 | To balance at the bankers 3 To ship Am14, received of James
Jacobs, for freight 6 To bills receivable, received pay.
ment of No. 231. on J. Hender.
son 9 To James Bailey & Co., received
payment of their draft at sight
on J. Bainbridge 15 To William Spence & Co., re.
ceived balance of their account To dehenture account, received
drawback on tobacco shipped by
the Plover 18 To bills receivable, discounted at
the bankets, Harrison & Co.,
due 15-18 March
cent, discount, on paying with
11 16 0
16 8 3
their balance of account
Jackson for their account
rison & Co., 2 months.
petty disbursements this month,
per petty cash book
300 0 0
6 1 10 278 15 11
42 0 0 236 50 267 10 0
15 8 0
730 10 0
32 2 0 328 5 4
15 2 6 2,686 13 0
These transactions, when put into the Journal form, stand thus :
Received this month.
3d. Freight from James Jacobs
6th. Received payment of J. Anderson, due this day
18th Discounted Harrison & Co., due 9th of May TO JANE BAILEY & Co.
9th. Received their draft on Bainbridge, due . To WILLIAM SPENCE & Co.
15th. Rereived balance of their account
Ph. Drawback on tobacco by the Plover
15th. Received discount on sundry accounts, per cash book
The above shows, that for all sums received, the account of cash is made debtor, and the parties paying the same are made creditors ; while for all sums paid, the cash is credited, and the parties receiving them are made debtors.
We are next to state the mode of entering bill transactions.
Bills ReceivaBLE. -- We have seen by the Balance sheet that several correspondents are indebted to the house. The debts of correspondents abroad may be reduced by remitting either bills, specie, or merchandise for sale : from correspondents in England, bills are almost the only mode of remitting. When bills come to hand, the rule is to enter each in the bill book, with a minute statement of the date, term, sum, and other particulars, thus : No. Received From whom. Drawn by
Sum How disp.es
To order of
163018 Mar. Bailey Co. W. Adams Belfast, 1 Mar. 2 mths. T. Jones, Dublin A. Williams 1-4 May 350 Rainier & Co. 6.31 10 do. Watson&Co. J. Jacobe Cork, 3 do. 1 do. J. Adams, London G. Wilson 3-6 Aprill 135 Smith & Co. 63212 do. Spence &Co. T. Johnson Falmo. 5 do. 2 do. (T. Allan, Liverpool D. Jones 5-8 May 260 Overead&Co.
The Journal Entries for these bills are as follows:
Bills PAYABLE. - The entries under this head are, of course, wholly different from the preceding, being for acceptances of the house given on account of sums owing by it to correspondents. Each acceptance is entered in the book of bills payable, thus: No. Drawn by Place and Date. To Order of On Account of Term. When accepted. Due
Sam 151 J. Allan & Co. Jamaica, 15 Jan. J. Jones Allan. f. co. 3 days singles
12 March 10-13 June £175 100 1.52'G. & W. Fox Falmouth, 7 Mar. J. Thomson G. & W. Fox
22-25 Mar. 73 15 0 153 J. Clark Hull, 3 Mar. IG. Barclay J. Smith & Sons 1 month's date 16 do. 5-8 ditto. 132 10 0
The Journal entries for these bills are as follows:
The preceding entries, few as they are compared to the monthly transactions of a house of business, are sufficient to show the nature of a Journal as well as of the sub