The Providence news. (Providence [R.I.]) 1891-1906, 1897-08-30
LESSON NO. 20.
How to study the Lessopxs

How to study the Lessopes
Carefully read over and consider every
paragraph and point presented in each
lesson.
Talk over and discuss with friends and
acquaintances the various subjects pre-
sented
III possible, the person VINO desires to
secure practical business education
should get some friend To study the les
sons with him.
If the lessons are made tho subject Of
discussion around the family table after
the lights are lit every member Of the
household will he benefited.
An Interchange Of ideas and discus
sions ar6 always highly advantageous
Apply the principles as developed and
explained To your own life and minor
transactions.
Each point, briefly outlined In carly
lessons, will be carefully analysed in sub
seGuent lessona
The keeping of accounts is one thing
aud the understanding OF tneln another.
Many persons who have fortunes involved
leave tie product Of thom. In the shape
Of figures, To the office ataif.
It is absolutely necessary for them TO do
this because they cannot possibly look
after financial details themselves.
There are consequently, n number oil
more or less Interested persons connected
with the business or wealthy individual.
They may be honest. or dishonest ao-
cording 90 the opportunities or their po-
sition or their own personal procliVities.
This renders system in connection with
receiptsssnd most necessary feature.
Checks are used as far rs possible 10
ensure the accuia acy of all records In con
nection with the business.
They will either guarantee horosty or
prove dishonesty IL mathematically cor
rect and examined.
The details of a bookkeeping system
may seem very dry To tho average person,
but they really involve most Interesting
points.
10 the capitalist or investor they pre-
sent a record which is more interesting
than the most enhancing romance.
lie must derive from such statements
as balances facts which involve all his
personal interests.
The clerk or bookkeeper is Interested 10
the extent OF his responsibility.
He may even be a complicated factor In
the system, involving both corporate ana
saaried interests
In any event, bookkeeping provides. the
cheek on the individual
To illustrate the difficulties Of book
keeping in the present complicated system
OF commerce. n digressiou from routine
facts may be made.
IL will show how easy ID Is even whore
supposedly perfect system of keeping
accounts Is used 10 develop inaccuracies
Tie management Of one of the large re-
tail department stores OF New York was
informed Of certain leakage in their
finances. A defalcation OF thousands Of
dollars had occurred in the accounts OF
the mail order department.
IL was sur,nised that tthe discrepancy
might be due 10 the dishonesty OF the re-
ceiving cashier of this branch OF the busi-
ness.
An exyert accountant was called in to
investigate the affairs.
His task was not an easy one, as those
acquainted with the intricacies Of large
firms accounts will understand. The
matter resolved itself very simply, how
ever.
After going over the books of the ne
partment and comparing them with the
slips and you,hers, the accountant was
able 10 solve the problem Of the deficiency.
Ii had occurred, as he stated in his re
vort, through bad, orsrather, incompetent
bookkeeping.
There were probably as many as four
hundred mail orders received in a day by
the house and on a numher of them, ow-
ing TO inaccuracy in exactly calculating
prices "a certain amount OF the total of the
till was made In tre remittance.
WI lie the balances of these bills either
remained ouistan ing or were never asked
| for In the Case Of small deficits. the dis
crepancy was deMted tn the mail order
| Department bv the general Office. The
amount gradually assumed such serious
/ pruI0rtions TINT IL Was supposed dishon
| csty on the part Of some one was response
! bic fer t.
The contrary was developed by tho cX-
pert Accountants. who, alter going through
| all the documentary evidence contained
! in the orders, vouchers. slips and books,
| found only shortage of few cents
against the mail cider department
This mistake is ore offered as typical
instance. IL could occur in the nj ,irs of
any iavoved business although IL should
not do 80.
The account books OF tho mail order de-
partncnt were not in this Instance taken
/ into consideration or examined iy tEo
general office hCCIuse tie mnll order de-
IArtmspt was considered TO be run On
cash IrinciplCs.
Tho susl itiun or trouble. arose from
ncplcct OF considering small itms aud
having only u daily cashiers report Of
funds received.
Before starting in business thoroughly
acquai; yourself with the field in which
Won Urouuso % do business, with the com
etiinu with which yCu viii have to our %
toLd tho character Of custom, w ether
mostly cash or credit, and the class Cf
Qonus most likely to ilid sale. The
rereral dcnler ir village must To guided
llteolv in his selection ot goods b. his
uistnr cs from tlr nearest large town or
Ia, 81 ala