What items, in the above, should be recorded in the private ledger? 21. In charting the accounts of a business, into what three main groups should they be divided? Give an example of the subdivision of one of these groups. 22. Prepare a chart of the accounts of a small trading business conducted by a partnership. Explain this chart. 23. Prepare a chart of the accounts of a manufacturing business making three classes of goods. 24. What are the principal characteristics of a chart of accounts of a manufacturing business? 25. Using the above manufacturing chart, explain how profits are traced from group to group until they reach the surplus account. INDEX A Acceptances, 56 definition of, 11 Accommodation note, definition of, 11 Account books classes of, 42 definition of, 11 Account current, definition of, 11 Account sales, definition of, 11 Accounting charts, 309-323 explanation of chart, 316 of manufacturing business, 313 of small trading business, 310 Accounts classification of, 90 definition of, 11 merchandise, 71 merchandise inventory, 100 nominal, 70 personal, 69 profit and loss, 97 purchase, 71 real, 69 representative, 70 sales, 72 Accrued interest, definition of, 12 Acknowledgment, definition of, 12 Ad valorem, definition of, 12 Administrator, definition of, 12 Adventure, definition of, 12 Advice, definition of, 13 Affidavit, definition of, 13 Agent, definition of, 13 Agreement, definition of, 13 Allowance, definition of, 13 Annual statement, definition of, 13 Annuity, definition of, 13 Antedate, definition of, 13 Appraise, definition of, 14 Appreciation, definition of, 14 Approval sales, definition of, 14 Arbitrate, definition of, 14 Articles, definition of, 14 Assets definition of, 14 fictitious, 78 fixed, 77 floating, 78 passive, 78 Assign, definition of, 14 Assignee, definition of, 14 Assignment, definition of, 14 Assignor, definition of, 14 Association, definition of, 14 Attachment, definition of, 14 Audit, definition of, 14 Auxiliary, definition of, 14 Average, definition of, 14 B Balance, definition of, 14, 39 Balance sheet, 100, 139 definition of, 14 Balance of trade, definition of, 15 Bale, definition of, 15 Bank balance, definition of, 15 Bank deposits, 56 check books, 56 depositing cash, 57 indorsement of checks, 57 pass book, 57 signature card, 56 Bank draft, definition of, 15 Bank note, definition of, 15 Bank pass book, definition of, 15 Bankrupt, definition of, 15 Bill, definition of, 15 Bill of exchange, definition of, 16 Bill head, definition of, 16 Bill of lading, definition of, 16 Bill of sale, definition of, 16 Bills payable, definition of, 18 Bills receivable, definition of, 18