The title given to a special Ledger which has come into general use for hotels and other businesses, in which the majority of the customers’ accounts are only of short duration and made up of small items, the Personal and Nominal Ledger entries being combined in tabular form. The system is carried out by means of an analysis, the object being to reduce and expedite the work of dealing with masses of detail, and to keep the accounts so up to date that the bills may be rendered at a moment’s notice. In hotels the Day Book is entered under each name, with full particulars of everything supplied each day; the items are analysed at the foot of each entry and posted to the Visitors’ Ledger (p. 908), the left-hand columns in which are headed with the numbers of rooms and names of visitors, and give the particulars required for making up the bill, which is usually kept made out up to and including the preceding day. The amount owing by each visitor is brought forward from day to day, so that his total indebtedness is readily ascertainable, provision being made at the foot of each page for amounts paid, allowances, and balances carried forward to the next day. The right-hand columns are used for the reception of the total amounts under each Nominal heading supplied to visitors for the day, those brought forward from the previous page and the total carried forward, thus giving the Nominal Accounts. Tabular Ledgers may be used advantageously for all businesses where only short credit is given, as tailors, dressmakers, newsagents, etc., and for gas, electricity, water, telephone subscriptions, and rent accounts.

When no special bargain has been made between a solicitor and his client with respect to the costs to be charged in any particular matter, the costs must not be fixed at an exorbitant rate. If, then, the bill of the solicitor when it is delivered to his client is considered too high, the matter may be taken before an official who is known as the Taxing Master, and this official decides which items are fair and proper, and which ought to be reduced. A similar kind of procedure is in vogue when the successful party in litigation is awarded costs, and the opposing party refuses to pay on the ground that they are exaggerated. The Taxing Master again decides what is the reasonable amount to be charged, and eventually gives his allocatur (q.v.) for that amount. The costs incurred through this process of taxation must be paid by the person who demands the taxation, unless the bill is reduced by at least one-sixth of its total amount. (See also Liquidators, Accounts of, p. 687.)

That part of a deed, in the conveyance of property, which contains the words ” to hold.” The general words used in full are ” to have and to hold,” the words ” to have ” being technically known as the ” habendum.” As to the use and meaning of the words, see Habendum of a Deed.

It sometimes happens when an action at law has been commenced that the whole question in dispute cannot be conclusively fought out as between the plaintiff and the defendant, but that some other person or persons is or are involved, especially in a case where the defendant claims to have some remedy over and against some individual or individuals, in respect of the contract or tort for which he is being sued by the plaintiff. Such person or persons is or are called a ” third party ” or ” third parties,” and upon taking the proper procedure this third party or these third parties will be brought into the case so that the whole matter in dispute may be disposed of once for all.

Where till takings embrace both cash sales and sums received in payment for credit sales, separate entries must be made in respect of each in the Cash Book. The cash sales may be entered in total daily, and posted to the Cash Sales Account, or, preferably, a separate column may be provided for their record in the Cash Book, and the total of the column posted monthly, or at other convenient periods. Credit sales takings must be entered in detail, either in the Cash Book or in a subsidiary Credit Sales Cash Book (the daily total of which is carried to the General Cash Book) and the personal accounts of the debtors credited by postings therefrom. All the till takings should be banked in one item, if possible, daily, any cash payments being made through the petty cash, and not out of the takings. The auditor should require the production of the till-rolls, and compare the totals of the rolls with the entries in the Cash Book. A record of ” shorts and overs ” should be kept and any serious deficiencies or surpluses enquired into. Where the till-rolls are automatically added by the machine it is unnecessary to check the additions of the rolls ; but otherwise they should be thoroughly tested. In cases in which the till registers the total receipts but does not print them on the rolls, they should be regularly examined by a responsible person, whose certificate of the daily amounts registered should be produced to the auditor. The rolls should be closely examined for erasures and alterations, and, where there are numerous records of ” no sale ” on the till-rolls, explanations should be sought.

Originally the rendering of one-tenth of the produce of the soil for certain religious purposes, but which have since been commuted by modern legislation into a yearly money payment dependent upon the average price of wheat for the preceding seven years. Tithes were formerly payable directly by the tenant, but are now payable by the landowner. (See Commutation.)

This term is usually applied to the general expenses of carrying on trade and to the establishment expenses of a merchant’s business. A merchant’s Trading Account should contain only the actual sales (less returns) and purchases (less returns) and the opening and closing stocks. Consequently, although the term ” Trade charges ” would imply that the expenses referred to form a charge against the Trading Account, actually they are charged against Profit and Loss Account. The auditor must require the production of duly certified invoices, demand notes, renewal notices, insurance policies, and other documents in support of the items charged, and must satisfy himself that all trade charges incurred within the period have been properly brought to account, that all accruing liabilities are provided for, and that all payments in advance are carried forward, so that only an equitable and appropriate charge is made against the period’s revenue.

A person to whom money is owing on account of transactions had with him in the ordinary way of trading, and may be on account of goods supplied, or for work done which is an expense to the business of the person owing.

This term is usually applied to unfixed or loose utensils, which should be treated in the books of account in the same way as Loose Tools (q.v.). That is to say, that they should be re-valued from time to time and taken into account in the same way as stock-in-trade, until the actual rate of depreciation to which they are subject has been ascertained by experience ; after which they may be capitalised and their value written down in accordance with the rate so determined. The auditor should require the production of a schedule of utensils and should satisfy himself that the valuation has been properly made and that it is duly certified by a responsible official appointed for the purpose.

Trading Accounts prepared before the balancing is fully completed, but when it is in such a condition that the results are known to be approximately correct.

By transfer is meant the passing of the property in anything by one person to another, and a distinction is made between ” transfer” and ” transfer by delivery ” in that the latter signifies the physical act of passing. In the case of a bill of exchange the transferor may, if the bill has been indorsed to him in blank, transfer the same without signing the instrument. This does not happen very often, because the value of a signature is such that no one cares to have a negotiable instrument unless authenticated by the signature of a transferor, seeing that unless there is a signature the transferor cannot be sued upon the bill. If, however, there is a mere transfer by delivery, and the bill is not paid in due course, although the transferor cannot be sued on the bill, he may be liable in an independent action for breach of warranty. What a transferor by delivery warrants to his immediate transferee, being a holder for value, is that the bill is what it purports to be, that he has a right to transfer it, and that at the time of the transfer he is unaware of any fact which renders it a valueless document. The added importance of seeing the signature of the transferor will be perceived when it is pointed out that not only is he not liable on the bill if his signature is not there, but he is not liable in an independent action upon the consideration in respect of which he transferred the bill, in case the bill should be dishonoured unless (1) the bill was given in respect of an antecedent debt, or (2) it appears that the transfer was not intended to operate in full and complete discharge of such liability.

It is often essential that items should be transferred from one ledger to another, as in the case of (a) items posted to an incorrect account ; (b) alteration of decision as to method of treatment; (c) bad debts ; (d) ” Contra ” Accounts, when separate accounts are kept in the Debit and the Credit Ledgers, and the matter is settled by payment of the balance between the accounts; (e) when instructions are received from a person owing money to the firm, to charge a person to whom the firm is indebted with the whole or part of his account, the arrangement being, of course, corroborated by the creditor. These are known as transfers, and for their record a separate Transfer Journal is sometimes kept, having columns for each Ledger. The one given under ” Columnar Journals ” is ruled for this as well as general purposes, but when a separate Journal is used, the form given hereunder may be adopted

Where there is employed a registrar, the work of auditing transfers of shares, stocks, and debentures is sometimes performed by the secretary, and sometimes by the accountant, or the auditor of the company. The auditor should check the entries in the Register of Transfers in conjunction with the deeds, the latter being examined with the object of seeing that they are properly stamped, dated, signed and attested, that the number of shares transferred and their respective distinctive numbers are in order, and that the deeds are otherwise complete and correct. He should see the relative certificates to the transfers, and verify the latter with the accounts in the Share Register. The new certificates having been prepared for sealing and signature by the Board, he should check these with the actual transfer deeds, as well as all balance certificates, and his report will probably be in the following phraseology I beg to inform you that I have examined Transfer Deeds numberedto, the new certificates numberedtoin relation thereto, and report that they are correct, and that the latter may be sealed and signed. I have seen that the old certificates to which the transfers relate are duly cancelled. The auditor should mark in a distinctive manner all documents seen and passed. The work of auditing transfer forms no part of the ordinary audit of a company’s accounts, and is usually remunerated at a rate per transfer.

A convenient method of ascertaining and recording commissions due to travellers is that of adding to the Sales Day Book several analytical columns, in which the sales arising from orders secured by the various travellers are appropriately analysed. The periodical totals of the analysis are summarised in a Travellers’ Commission Book, and the amount of commission due calculated therefrom. The book then forms the basis of the Journal entry crediting the travellers’ personal accounts and debiting the Commission Account. This book should be tested by the auditor, who should also have reference to the service agreements which fix the terms and rates of the commission payable, and from which he can satisfy himself whether or not the proper amount of commission has been charged against revenue. In cases in which commissions are payable only when the value of the sales effected has been received, a reserve should be made in respect of travellers’ orders executed but not paid for at the time of closing the books. It is usual to provide in service agreements that no commission shall be payable in respect of sales which ultimately prove to be bad debts. The auditor should, therefore, see that the bad debts, and returns and allowances, are deducted from the appropriate total sales before the commission payable is calculated.

Travelling expenses should be recorded in detail in a separate book kept for that purpose, and receipts should be given in every instance by the persons receiving the expenses. The book will then form the voucher for the appearance of these items in the Cash Book. It is advisable that separate Travelling Expenses Accounts should be kept in respect of each traveller, and the accounts, or the Travelling Expenses Book, should be regularly examined, and, if approved, initialed by a director or other responsible official. The auditor should examine the Travelling . Expenses Book carefully, and where any fixed scale of expenses is in existence should compare the scale with the records in the book, to see that the scale has not been exceeded. He should note that the book, or the individual ledger accounts, have been properly approved. By way of a test, he should compare the total of each traveller’s Expenses Account with those of previous corresponding periods, and seek an explanation of any increase of moment. Such increases may be explained by the fact that the traveller’s area has been enlarged and, consequently, greater expenses have been incurred.

The meaning of this word is, ” composed of three parts or parties.” Any agreement entered into which consists of three parts is so called.

A term of common application to the income derived’ from investments, usually expressed in terms of a percentage, e.g. a 6 per cent, stock quoted at

A silver coin of Great Britain, equal in value to about six cents United States money.

Notes, drafts, etc., payable at certain future dates. See Time Loan and Time Draft.

Loans for a definite time as opposed to call or demand loans; loans which neither the lender aor borrower has the right to demand or make payment of before the time specified in the note.

Declined to buy; declined to avail oneself of the privilege. Suppose a banking house buys an issue of bonds subject to the usual conditions of investigation, and, upon making its investigation, finds facts not as represented, it ends negotiations, and declines to purchase the issue. In bankers’ parlance they are said to have turned down the issue.

Money which, under specific conditions, is placed in the hands of an individual, several individuals, trust company, etc., to be cared for and managed accordingly. Investments by a trustee should be made with great care. It may be said that securities legal for investment by both New York and Massachusetts Savings Banks are suitable for trust funds.

Used in relation to an issue of securities where ah agreement exists that certain taxes, which the holder may be compelled to pay, will be refunded. To illustrate: In the issue of convertible notes put out by the United Gas & Electric Corporation, it was provided that annual taxes paid in Massachusetts would be refunded through the First National Bank, of Boston, in accordance with and subject to the terms and provisions of an agreement executed between the corporation and the bank.

Formerly issued by merchants as small change when there was a scarcity of Government coins of small denominations. They had the general appearance of coins, but not equal in value to the face amount. The issuers were expected to redeem them on demand. Government issues of minor coins, which in themselves are of less value than their face, but which, by law or custom, are current at their face value, or in excess of their real value, are token coins; such as our copper cents and nickel coins.

(First read Draft.) A draft payable on a certain named day or at expiration of a stated length of time after it has been presented for acceptance (see that subject); that is, after sight. A draft payable ten days after sight becomes payable ten days after it has been presented for acceptance. The presenting of the same, however, often depends upon the receipt of goods against which the draft may have been drawn for payment, and, in such a case as above, would not be presented for acceptance until the arrival of the goods themselves.