CHAPTER II

FORM OF THE ACCOUNT

Principles of Arrangement—The Standard Form—The Journal

Form—The Three-Column Balance Form—Money Columns
Between

ii. We will now consider what arrangement of space is best

suited to the purposes of the account, the positive and the nega­
tive elements to be kept separate so that each may be totaled
when desired.
12. The information which is required is the following: How
Much Value? How? When? Why? and With Whom? as to
each transaction. Supposing we are at present providing for one
kind or tendency only, it is evident that the figures representing
the amounts involved should be free and clear of the context
which explains them and that there is no better method of exhibit­
ing these figures than to place them in a vertical column. As
they are frequently the result of a calculation embodied in the
context, it is appropriate that they should follow the context and
this brings the money column to the right of the text.
13. As the date when the transaction took place is the identi­
fying clue which we use in looking for information, it should also
have a free and clear space, allowing the eye to pass rapidly from
one date to another, and this space should not interfere or be
confused with the other explanatory matter; hence it will be
advantageous to place the date column on the left.
The remaining explanatory text will occupy the central
space and will seldom need subdivision. Its various details,
With Whom, Why, and How, should, however, follow a uni­
form and unvarying order of sequence to facilitate reference.
(Figure 4.)
8
 FORM OF THE ACCOUNT 9

14. This is a frame into which may be fitted all items of the
same kind or tendency; we have next to provide for those of the
opposite tendency. The most obvious way of doing this is by
repeating or duplicating the whole of the above scheme. This
was anciently done on two pages but it is now customary, and
generally more convenient, to use but one. (Figure 5.)

Figure 5

The narrow columns at the left of the money columns marked

a are for the purpose of indicating in some brief way the exact
source of, or authority for, the entries.
IO THE PHILOSOPHY OF ACCOUNTS

15. This standard, or traditional, form of the account is used

in almost every set of books. There is no law, however, requir­
ing it to be used and there is no harm in deviating from it when
anything is to be gained thereby.
16. There is one feature in the standard form which should
be noticed. There being separate date columns on the two sides,
it does not present a chronological view of all the transactions.
If this is desirable it can be attained by adding merely another
money column to the form in Figure 4, interweaving the dates
and specifications of both columns and separating the amounts
only. This is often called the “journal” form, from the book of
that name. (Figure 6.)

17. A variation of this form provides a third column in which

may be entered the balance, or resultant, of the two other
columns, as at c. (Figure 7.)
 FORM OF THE ACCOUNT II

18. These are the principal variants, but minor variations

occur from the exigencies of certain businesses. For example, if
it is very desirable to compare the corresponding amounts on the
two sides the standard form may be changed so as to bring the
two money columns together. (Figure 8.)
Figure 8
MONEY COLUMNS BETWEEN

center, on the supposition that the right-hand entries require

briefer specification than those on the left hand.
19. The form of the account is a matter of convenience, rather
than of prescription. While custom should not be deviated from
without cause, it has no claim superior to utility.