less people believe that slips of paper and cheap blotters are good substitutes for permanent books of record, and thus from honest but mistaken views create confusion and engender irresponsibility wherever their advice is followed. A further reason for a ledger is the necessity that the treasurer and other officers should be prepared in an instant to particularize their collections; should be prepared to show how much they have collected from each person, with such other information as may be necessary to prove them to be upright in the discharge of their duties. No other book does this so simply and effectively as the ledger. In reference to debts due by a company, it is perhaps unnecessary to open a ledger account with each person. Information may be conveyed in a less cumbersome way. And besides, in the event an account is overlooked, the company does not suffer as it does when an account due to it lapses. It is customary with railways to make a voucher in favor of each person they owe. When the voucher is paid the receipt is attached to the voucher. In this way it is impossible to pay too much, and, what is important, the document possesses palpable evidence of authenticity that a ledger account, of course, could not without reference to accompanying papers. In reference to the use of subsidiary or side ledgers a description of one will suffice for all.* *The side ledgers are usually of the same form as the general ledger, though special forms may be used; see Forms Nos. 13 and 14, Appendix B. Upon the general ledger there is an account, we will say, with "Agents and Conductors." Totals only are brought onto the general ledger. Upon a side ledger an account will be opened with each agent and conductor; details are represented with considerable perspicuity upon this ledger; each agent and conductor is charged and credited with amounts appertaining to his account and the balance standing to his debit or credit ascertained. The balance to the debit of all agents and conductors as shown on the side ledger should agree with the balance standing to their debit on the general ledger. One thus in a measure proves the correctness of the other. The side ledger gives individual accounts; the general ledger the totals of such accounts. The number of subordinate ledgers varies with the matter to find lodgment. In some cases accounts with agents, conductors, transportation companies and individuals will be kept all in one ledger; in other cases several ledgers will be necessary to record the transactions of agents alone. It depends on the amount of work to be done. Every account upon a ledger requires to be indexed. If the name of the account is liable to be misunderstood, it should be indexed under different heads, such heads as a person would be likely to look for in trying to find the account. It should be the aim here as elsewhere in accounts to make the record so clear that even a stupid person can unravel it. It is better to recognize the existence of these people in advance than to be damned by them in the end. In connection with the ledger embracing the accounts of a carrier with other transportation companies, it is desirable to open an account with each; thus a ticket account should be opened, a joint freight account, a car service account, and finally a miscellaneous account. The last named includes debits and credits not covered by other heads, such as overcharges, losses, damages, equipment repairs, baggage checks, switching, etc.* *See Forms Nos. 13 and 14, Appendix B, for specimens of ledgers especially adapted for keeping accounts of various classes with railroad and transportation companies. CHAPTER X. JOURNALS AND BOOKKEEPERS. The information the ledger contains is obtained from the journal and cash book. In another chapter it is shown that economy and the expeditious discharge of business may be secured by a judicious multiplication of ledgers. The same is true of the journals. Compared with the ledger, the journal records the details of transactions. It is a partial verification of the ledger. The journal is indispensable. It affords concise and necessary information, gives the details. of each account. It follows that when accounts are numerous and complicated, as they are with railways, a great deal is spread upon the journal; much work is required to write it up. Frequently more than one journal is necessary. This is so where the business is great, where the details are numerous. Work is facilitated and economy secured thereby. There is one general journal in such cases, as there is one general ledger. The side journals or blotters are written up in the different departments and sent to the general bookkeeper. In such cases, instead of filing with the general bookkeeper a manuscript of the details of accounts, they are entered in a side journal (especially adapted to the purpose it is designed for), which journal becomes a part of the permanent file of the general books. A manuscript statement would require to be entered in detail upon the general journal, thus necessitating considerable clerical labor. The information coming to the general bookkeeper in the shape of a journal, susceptible of easy reference and careful preservation, he carries to the general journal only the totals of the sub-journal. The subjournal thus becomes a part of the permanent record; an auxiliary of the general journal and ledger.* The general journal occupies the same relation to other journals that the ledger does to the side ledgers.† Each side journal shows the balance due to or from the persons or corporations it embraces; As noticed, only the aggregate footings of the subsidiary journals are entered upon the general journal. To illustrate, we will take the entry required to be made on account of the freight traffic of the several agencies. Upon the receipt of the "agents" freight journal" (see Form No. 9, Appendix B), duly authenticated as all journals are by the officer in charge, the details are summarized as follows on the general journal: Agents and Conductors, Dr. $767,910.80. For this amount as per agents' $767,910.80. The accounts named are general ledger acounts, and the amounts are duly posted under the proper headings upon that book. See Form No. 2, Appendix B, |