Victorian London - Publications - Etiquette and Advice Manuals - Guide to the Unprotected in Every-day Matters relating to Property and Income, by a Banker's Daughter, 1874 - Chapter VII  - Keeping Accounts

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[-141-]

CHAPTER VII.

KEEPING ACCOUNTS

No one should be satisfied without keeping regular accounts, of what she receives and what she spends. She then knows what her position is, and how her money has been spent; and if at the end of the year, her expenditure has exceeded her income, she can refer to her books and see where to retrench. A person who keeps no accounts, may be compared to a ship without a chart. Such a person goes on without knowing where she is. There are many ways of keeping accounts which it would be beyond the limits of this book to go into, but the way you can [-142-] easiest understand is the best to adopt. Once a month, transfer from your daily Account-book to another Book, called a Ledger, what you have spent during that month; and place the items under different heads. For instance, under the head "Dress" put all you have spent in dress; under "Amusements," all that you have spent in that way. Every year add these up, and then you will see at a glance how your income has gone, where you have exceeded and where you have saved. Have no Christmas Bills; pay all creditors once a week, and your servants once a month or quarter. You then know how you stand; you feel out of debt with everybody; you cannot easily be imposed upon, because you can readily look back a week to see that your Bills are correct, though you are perplexed in looking back a year.

    Periodical Receipts and Payments.— It is a great convenience to rule two pages at the end of your Account-book into twelve columns for the twelve [-143-] months one to remind you when your Dividends become due ; the other when Payments should be made. Some people have a page for "Statement of Property and Incomings," and one for yearly expenses. I insert a few specimens which may be useful to some of my readers.

[-144-]

1873 RECEIVED SPENT.
Jan. £ s. d. £ s. d.
1 Cheque to self . . . . . . . 50 0 0
8 Pratt — Shawl . . . . . . . 1 10 0
14 England — Bookcase 5 0 0
18 Pratt — A Dress . . . 3 6 0
20 Fessey — Work Table 4 0 0
24 Smith — Loan (in cash, A) 5 0 0
31 House Expenses . . . 15 0 0
31 Wages to Servants . . . 8 0 0
31 Jones — Received a Present (in cash, A) . . . 5 0 0
55 0 0 41 16 0
13 4 0
55 0 0 55 0 0
Feb.
1 Balance in hand . . . . 13 4 0
2 Cheque to self . . . 30 0 0
4 Whitehouse — Linen . . . 3 2 0
8 Dobbs — Looking Glass (Furniture). . . . . 18 0
10 Cabs, 3s. Railway Journey, 15s.  . . . .  18 0
12 Present to Poor Person (cash, A)  . . . .  5 0
19 Subscription to School (cash, A)  . . . .  2 10 0
20 House Expenses  . . . .  16 5 0
21 Pratt — Cloak . . . . 3 18 0
43 4 0 27 16 0
15 8 0
43 4 0 43 4 0
Balance in hand . . . . . 15 8 0

A. The words cheque and cash are unnecessary to insert. They are put merely to show the learner on which page to place payments, when made by cash, and when by cheque.

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1873 RECEIVED SPENT.
Jan. £ s. d. £ s. d.
1 Put in Bank . . . . . 150 0 0
1 Cheque to self . . . . . 15 6 0 50 0 0
4 Three per Cent. Consols paid . . . . .
5 Present to a Friend (by cheque, A) . . . . . 3 0 0
13 Subscription to Hospital (cheque, A) . . . . . 2 0 0
15 Jenkins, for Taxes (cheque) . . . . . 3 2 6
17 Sold, L.& N.W. Railway Stock, B. . . . . . 50 0 0
25 Farm, Rent of . . . . . 70 0 0
31 Smith — repaid Loan (by cheque) . . . . . 5 0 0
290 6 0 58 2 6
232 3 6
290 6 0 290 6 0
Feb.
1 Balance in Bank . . . . 232 3 6
2 Cheque to self . . . 30 0 0
10 L.& N.W. Railway Dividend . . . . 50 7 4
12 Bought — Shares in Water Works . . . . 100 0 0
14 Paid 3d Call in Water Works . . . . 15 0 0
15 Forbes, Timepiece (cheque, A) . . . . 5 10 0
15 Thomas, Lamp (cheque, A) . . . . 2 5 0
23 Water Works Dividend 35 2 4
28 Received a Present and put in Bank . . . . 10 0 0
327 13 2 152 15 0
174 18 2
327 13 2 327 13 2
Balance in Bank . . . . . 174 18 2

B. This being part of Principal sold, must be set down on that side as it does not enter into Income.

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LEDGER

STATEMENT OF PROPERTY AND INCOME, 31ST DECEMBER, 187—

Bought during year. Sold during year. Value of principal at end of year.
£ s. d. £ s. d. £ s. d. £ s. d. £ s. d.
684 18 7 Three per Cent. Consols. . . 
£
744 9s. 10d.
Jan. 11 0 0 July 11 0 0
50 3,682 19 2 London and N.W. Railway Ordinary Stock £2,423 Feb. 84 16 1 Aug. 83 11 4
1,000 0 0 L— — Water Works . . . .
Loan of £1,000
May 22 10 0 Nov. 22 10 0
Midland Railway . . . 
Stock
From other sources — Presents.
Sundries
Banker's Balance . . .

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DRESS FURNITURE AND REPAIRS GIFTS HOUSE EXPENSES SUNDRIES WAGES AND TAXES TOTAL
January 4 16 0 9 0 0 5 0 0 15 0 0 8 0 0 41 16 0
February 7 0 0 0 18 0 2 15 0 16 5 0 0 18 0 27 16 0
March
April
May
June 
July
August
September
October
November
December

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WHEN INCOME BECOMES DUE

Jan. Feb. March. April. May. June. July. August. Sept. October. Nov. Dec.
1 L— W.works L— W.works
2
3
4
5 Consols Bank Stock Consols. Bank Stock.
6
7
8
9
10
11
12
13
14
15 L.& N.W. Bond. L.& N.W. Bond.
16
17
18
19
20
21
22
23
24 Farm Farm
25
26
27
28
29
30
31

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WHEN PAYMENTS SHOULD BE MADE

Jan. Feb. March. April. May. June. July. August. Sept. October. Nov. Dec.
1 Taxes
2
3
4 Fire Insurance
5
6
7
8 Hospital
9
10
11 S.P.C.K. Society
12
13
14
15 Pew Rent.
16
17
18
19
20
21
22
23
24 Rent.
25 Rent.
26 Rent.
27
28
29
30 Rent.
31 Wages. Wages. Wages. Wages.

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Sharing Expenses.— In travelling with a friend on the Continent, it is sometimes difficult to divide the expenses correctly. When the expenses of the two are included in one account, the respective shares will be readily separated by adopting the following plan. The Bill occupies the right-hand compartment of the table; in the left-hand compartment are the calculations of A. and B., which would probably be made on a separate piece of paper. The principle is to have three columns; one for A.'s peculiar expenses, one for B.'s. and one for common expenses. The sum of the common expenses is halved, and one of the halves is added to A.'s column and the other half to B.'s. Finally, A. and B.'s shares are added together to see that their sum tallies with the amount of the Bill.

[-151-]

CALCULATION

BILL

A. B. Common. Francs
— — 3.00 2 Dιjeuners 3.00
4.00 — — 1 Diner table d'hτte 4.00
— 5.00 — 1 Diner ΰ part 5.00
— — 6.00 2 Logement 6.00
— — 1.00 2 Bougies 1.00
0.50 — — 1 Bain 0.50
— 1.50 — 1 Luncheon 1.50
— — 3.50 1 Marsala 3.50
— — 3.00 2 Dιjeuners 3.00
— — 2.00 Service 2.00
— 4.00 — Voiture 4.00
0.60 — — Timbres de Poste 0.60
— — 2.00       Omnibus et Bagage 2.00  
2) 20.50 36.10
10.25 10.25 10.25    
15.35 20.75
20.75
36.10

When the common expenses form the bulk of the Bill, it is hardly worth while to copy them out. In that case, subtract the sum of A. and B.'s private expenses from the total of the Bill; [-152-] the remainder will of course be the sum of the common expenses; halve this, and proceed as before.

    Taking Stock— Once a year some people "take Stock ;" that is, calculate the market value of all their property. Their Stock and Shares they value by the help of a Share-list of that date, such as is published in every day's Times, or in a more complete form as a separate daily publication. (See "Share-list" in Index.)