page_title: James Alexander Lyons
section_title: Bookkeeping: Classification of Loss or Gain Accounts
hierarchical_section_title: James Alexander Lyons / Work / Bookkeeping: Classification of Loss or Gain Accounts
caption_attribution_description: English: Relation of the various loss or gain accounts, 1908
context_page_description: James Alexander Lyons was an American accountancy author, and publisher, known for publishing a series of books on bookkeeping and accountancy in the early 20th century. The first work Lyons published was the 1896 textbook entitled "A treatise on business practice," which was designed as textbook for all business schools and as reference for all classes.
context_section_description: In Modern corporation accounting, (1908) Lyons picture some of the transactions and entries which are peculiar to corporations and corporation accounting. In doing so, he presents one of the earliest modern flow diagrams of cost accounting. These relation was originally pictured  by Emile Garcke and J. M. Fells in their System of factory accounting from 1889. Lyons had simplified these relations into one single flow diagram:
  Lyon explained that the above diagram shows the relation of the various loss or gain accounts to each other, and indicates what account each group of accounts closes into. Out-Freight, Cash Discount Dr., and the Sales Book total, close into the Sales account. Manufacturing Labor, Manufacturing Expense, Materials, and Materials Expense close into Production (after In-Freight and Cash Discount Cr., which are subordinate to Materials, have been closed into Materials). Sales and Production, which now exhibit respectively the net returns on merchandise and the gross cost of manufacture, are closed into Implements, which is the Merchandise account.
  In the exercise section of the book four other examples where pictured of Loss & Gain accounts for a construction company, a railroad company, a gas production company, and a plow company, see images above.
caption: Relation of the various loss or gain accounts, 1908
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