Henry Rand Hatfield.

Modern accounting, its principles and some of its problems online

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scheme of, 27.

Debts, 13, 24, 101; bad and doubt-
ful, 99, 238; paid out of re-
serve, 258; reserve for doubt-
ful, 100; unpaid, and profits,
228. See also LIABILITIES.

Deferred assets, 118, 123.

Deficiency account, 126, 335, 338.

Delkredere account, 68.

Dennis, W. H., 339. -

Depreciation, ch. vii, 83; by Amer-
ican corporations, 290; an-
nuity method, 131; booking
of, 67, 126; comparison of
methods, 133; economic sig-
nificance, 121; excessive, 137;
as fixed charge, 291; formulas
for, 128, 129, 132; of imma-
terial assets, 141; Interstate
Commerce Commission on,
125, 127, 135, 142, 290; irreg-
ular, 136; legal provisions,
124, 134; methods of appor-
tionment, 128; and net in-
come, 290; percentage of cost,
128; percentage of diminish-
ing value, 129; where no prof-
its, 136; prior to profits, 121;
in profit and loss account, 289;
rates of, 141; relation to an-
ticipation accounts, 123; re-
lation to total cost, 134; and
replacement, 137; and reserve
for insurance, 260; and sink-
ing fund, 272; in addition to
wear and tear, 140.



362



INDEX



Depreciation account, 51.

Depreciation fund, 238.

Dickinson, A. L., 171, 249, 279.

Dicksee, L. R., on balance sheet,
55; on cost accounts, 308; on
depreciation, 134, 142; on
distribution of assets, 332;
on Garner v. Murray, 330";
on good will, 113, 116, 117;
on manufacturing account,
286; on partnerships, 321; on
reserve funds, 248, 249; on
sinking funds, 270.

Discount, on bonds, 77, 96, 188;
on capital stock, 158, 167;
due to deficient credit, 189;
on mercantile credits, 98; on
sales, 288; trade, 288.

Dividends, from borrowed funds,
229; during construction, 77;
when loss of capital, 214;
when loss of fixed capital, 217;
not paid in cash, 228; on pre-
ferred stock, 193; stock, 172;
unpaid, 193.

Donald v. American Smelting &
Refining Co., 161, 166.

Donated stock, 176.

Double-account balance sheet, 48,
67, 184, 202.

Double entry bookkeeping, chs.
i-ii, 1, 9, 15; imperfections
of, 30.

Doubtful debts, 100.

Douglass v. Ireland, 178.

Dovey v. Cory, 201 m , 209, 210.

Dupin, 227.

Dutch East India Co., 228.

Eddis, W. C., 250.
Edgerton v. Electric Improvement
Co.. 166.



Emery v. Wilson, 125*.

Encyclopaedia of Accounting, 288.

Equation, bookkeeping, 1, 28.

Excelsior Water & Mining Co. v.
Pierce, 206", 213", 230/268.

Exchange transactions, 2.

Expense account, 24, 27.

Expenses of experimentation, 77.

Eyster v. Centennial Board of Fi-
nance, 211, 226.

Factory cost, 296.

Factory expenses, indirect, 297, -

304.

Fairchild, C. S., 114.
First National Bank, Chicago, 241.
First National Bank, New York,

253.

Fixed assets, 81.

Fixed capital, 116, 207, 210, 217.
Fluctuations, 82.
Formulas, for depreciation, 128,

129, 132; for sinking fund,

271.
France, accounting rules in, 41,

124, 151, 152, 154, 240, 349;

Bank of, 92.
Franchise account, 169.
Freight charges, 102.
Fund assets, 249.

Garcke and Fells, 116.

Garner v. Murray, 329.

General establishment charges,
305.

Germany, accounting practice in,
55, 65, 68, 79, 84, 134, 152,
164, 178, 237.

Germany, legal provision in, on
balance sheet, 41, 55; on com-
pulsory reserves, 240, 242 ; on
depreciation, 124, 127, 134,



INDEX



363



136; on interest, 77, 87; on
inventory, 92, 102; on pre-
mium on stock, 155, 234, 240;
on repurchased stock, 151 ;
on uncalled subscriptions, 154;
on unrealized profits, 224;
on unsubscribed capital, 149.

Goethe, J. W., 30.

Going concern, 81, 91, 101.

Goods, 1.

Goods accounts, 7.

Goodwill, an asset, 75; in the bal-
ance sheet, 117; basis of, 110;
definition of, 107; determina-
tion of cost, 109; Dicksee's
rule for valuing, 113; duration
of surplus, 112; fictitious, 115,
169; instances of, 110, 111,
112, 113, 117; method of cap-
italizing, 111; in partnership,
318; period for averaging sur-
plus, 111; rate of capitalizing,
113; transferability of, 112;
value limited to cost, 108;
writing off of, 116.

Government Printing Office, 306.

Gratz v. Redd, 76, 223.

Greendlinger, L., 339.

Greene, T. L., 172, 189.

Gross trading profits, 287.

Gunnell v. Bird, 330.

Guthrie, E., 108, 116.

Handley v. Stutz, 157, 165.
Hoare & Co., in re, 209, 221, 234,

248.

Hubbard v. Weare, 73, 213'.
Huffcut, E. W., 157.
Hugli, F., 22.

Illinois Central Railway, 101, 184,
249, 288.



Immaterial assets, ch. vi, 75;
amortization of, 141.

Income, net, 267, 290; in probate
law, 201.

Income account, 195, 280, 281.

Indirect factory expenses, 297,
304.

Indorsements, 192.

Innes & Co., in re, 178.

Insolvency, distribution of assets
in, 327, 330; statement of af-
fairs in, 335.

Insolvent partners, claims against,
328,

Insurance, reserve for, 259.

Intere$t, accrued, 97; adjustments,
321, 324; on debts, 186; dur-
ing construction, 76; on ex-
cess capital, 324; paid in
advance, 118; on partners'
capital, 321; on purchase
mortgage, 86; on sinking
fund investments, 265, 269.

International Mercantile Marine
Co., 290.

Interstate Commerce Commission,
on balance sheet, 41, 59; on
construction account, 74, 79,
254; on depreciation, 125,
127, 134, 135, 136, 142, 290:
on discount, 77, 190; on in-
come account, 282; on secret
reserves, 254; on taxes, 289.

Inventory, 13, 23, 31; items to 1 be
included, 75; problems of, 74.

Investments, fluctuations in, 90;
interest accrued, 97; premium
on, 93; as stock in trade, 92;
valuation of, 90, 92.

James, A. A., 116.
Jaudon, W. C., 330'.



364



INDEX



Jones, T., 9, 21.
Jones v. Davis, 226.
Journal, 342.
Journal-cash book, 343.

Keister, D. A., 169, 249.
Kingston Cotton Mill Co., in re,

208.
Kirkmann, M. M., 267.

Lackawanna Steel Co., 188.

Land, valuation of, 86.

Langstroth, J. A., 349.

Leake, P. D., 136.

Ledger, 17, 341, 347-350; cost,
313; loose leaf, 348.

Lee v. Neuchatel Asphalte Co.,
205, 213, 214, 223.

Liabilities, ch. x; in balance sheet,
184; capital, 46; classification
of, 186; contingent, 32, 192;
current, 46; marshaling of,
47; as negative assets, 184; in
statement of affairs, 338. See
also DEBTS.

Liquidation, distribution of as-
sets in, 327, 330.

Liquidation value, 80.

Lisle, G., 42, 275, 278, 287, 288,
339.

Lizet, A., 342.

London & Westminster Bank, 62.

Losses, of circulating capital, 218;
of fixed capital, 207, 214;
prior, 208; shown in balance
sheet, 120.

Louisville & Nashville R.R., 264.

Lubbock v. British Bank, etc., 223.

Machine production, effect on ac-
counting, 355.

Machine rate, 297, 299; improved,
300.



Machinery, valuation of, 89.
Mackintosh v. Flint & Pere Mar-

quette Ry., 73, 124.
Main v. Mills, 212.
Maine Savings Bank law, 93.
Manufactured goods, valuation of,

104, 284, 286.
Manufacturing account, 274, 279,

284, 289.

Manufacturing profits, 285.
Market price, 90, 102.
Massachusetts business corpora-
tion law, 41, 171.
Materials, 309.
Mechanical devices, 350.
Memorial, 342.
Memoriter accounts, 68.
Mercantile credits, 98.
Merchandise, valuation of, 101-

105.

Meserve v. Andrews, 102, 224.
Mills v. Northern Ry. of Buenos

Ayres Co., 229, 230".
Mitchell, W., 346.
Mixed accounts, 10, 22.
Mixed transactions, 2, 10.
Mobile, etc., Ry. v. Tennessee,

229.

More, F., 114.
Moseley v. Koffyfontein Mines.

167.
Moxey, E. P., Jr., 279".

National Bank of Wales, in re,

20 l n , 208, 209.
Negative goods, 14, 184; accounts,

24.
Negative proprietorship accounts.

24, 27.
Newton v. Birmingham Small

Arms Co., 84, 255.
Nisbet, A. G., 304.



INDEX



365



North, R., 356.
Nowell v. Nowell, 328.

Oakley v. Cokalete, 330'.

Ooregum Gold Mining Co., etc., v.
Roper, 158.

Operating expenses, 72, 288.

Organization expenses, 76, 78.

Overvaluation, 162, 170.

Oxford Benefit Building & Invest-
ment Co., in re, 100.

Paciolo, L., 1, 40, 341, 342, 345,
346.

Palmer, F. B., 206, 209", 218, 220.

Partnership, ch. xvii; admission
to, 316; capital account, 316;
claims against insolvent part-
ner, 328; distribution of as-
sets, 327; formation of, 316;
goodwill, 318; interest on cap-
ital, 321; interest on excess
capital, 324; problems, 316;
purchase of interest, 320;
share in, 318.

Passive, 44.

Patents, 77, 110, 117.

Patterns, 89, 306.

Pennsylvania R.R. Co., 254,
267.

Pensions, provisions for, 194.

People v. San Francisco Savings
Union, 226.

Personification theory, 21.

Pixley, F. W., 86, 116, 193, 214,
247, 248, 249.

Platt, A. G., 339.

Premium, on bonds, 93, 187, 222;
on capital stock, 155, 221,
234; fictitious, 156; on for-
feited stock, 222; redemption
at a, 190.



Price, cost, 75, 79, 90, 103, 108;
market, 90, 102; selling, 288,
296.

Prime cost, 296.

Profit and loss account, ch. xv,
195; and assets, 197; and
capital losses, 199; deprecia-
tion shown in, 289; forms, 276,
278, 282; problems of, 198;
purpose, 196; subdivisions,

: 277, 282; and taxes, 288;
variations in, 282.

Profit and loss appropriation ac-
count, 277.

Profits, chs. xi-xii; available for
dividends, 226; in balance
sheet, 54; in cash, 224; and
debts, 228; gross trading, 287;
and loss of capital, 202; and
loss of fixed capital, 207; net,
203, 212, 275; and previous
losses, 208; undivided, 237;
unrealized, 224; and wasting
assets, 203.

Property purchased with stock,
79, 161.

Proprietorship, 1.

Proprietorship accounts, 9, 19.

Proprietorship transactions, 2-4.

Providence Rubber Co. v. Good-
year, 100, 104.

Quebec Company Act, 149.
Quoted price, 90, 102.

Raymond v. Putnam, 329.
Reagan v. Farmers' Loan & Trust

Co., 226.
Receipts, confounded with profits,

226.
Redlands Water Co. v. Redlands,

125V



366



INDEX



Rehm, H., 33, 68, 154, 185, 189,
247, 250.

Renewal fund, 241.

Replacement, 137.

Republic Iron & Steel Co., 290.

Requisitions, 312.

Reserve, ch. xiii, 237; of Atchison,
Topeka & Santa Fe" Ry., 242;
for bad and doubtful debts,
100, 238; banking, 250; com-
pulsory, 239; for contingen-
cies, 240; disbursement of,
255; distinguished from re-
serve fund, 249; for equalizing
dividends, 241; for exten-
sions, 238; general, 242; for
increasing capital, 239; for
insurance, 259; of insurance
companies, 251; open, 250;
for paying debts, 258; pur-
poses of, 239; secret, 137, 252,
255, 257; source of, 243; spe-
cial, 242; specially covered,
244; specific, 237; of United
States Steel Corporation,
242.

Reserve fund, 237; distinguished
from reserve, 249.

Rest, 237.

Retired stock, 159.

Revaluation, principles of, 80.

Revenue account, 195.

Revenue expenditure, 72.

Richardson v. Buhl, 125, 213".

Robinson v. Ashton, 318.

Row-Fogo, J., 342.

Saint Ambrose, Bank of, 240.
San Diego Water Co. v. San Diego,

125".

Schaer, J. F., 22.
Schulte v. Anderson, 330".



Schurtz, G. N., 41.

Schuster, E., 177.

Secret reserves, 137, 252, 255, 257.

See v. Heppenheimer, 154, 157,
166, 172.

See-Han dlungs-Gesellschaft, 228.

Simon, H. V., 151, 248*.

Single entry, 7, 10.

Sinking fund, ch. xiv; of Chicago
& Northwestern Ry., 263,
266; of Chicago, Rock Island
& Pacific Ry., 262; compari-
son of different methods, 265;
definition, 261; and deprecia-
tion, 272; as a fixed charge,
266; formula for, 271 ; interest
on, 265, 269; investment of,
263; of Louisville & Nashville
Ry., 264; methods of booking,
261; and net income, 267;
payment of bonds from, 269',
of Pennsylvania R.R. Co.,
267; of United States Steel
Corporation, 67, 264.

Sinking fund accretions, 269.

Slay den v. Coal Co., 226.

Slide rule, 352.

Smith, A., 210.

Smith, O., 304.

Southern Railway, 288.

Speer v. Bordeleau, 178.

Sprague, C. E., 1", 22, 45.

Statement of affairs, 335.

Stewart v. St. Louis, etc., R.R.,
162.

Stock dividends, 172.

Stock watering, 79, 171.

Stores record, 311.

Stringer's case, 225.

Subscriptions to capital stock, 147,
153.

Supplementary rate, 301, 302.



INDEX



367



Surplus, 155, 233, 234, 235, 237,
240. See also RESERVE.

Table A, Companies Act, 66, 68,

153, 248.

Tabulator, mechanical, 354.
Taxes, 288.
Terminology, 56.
Tiffany, H. L., 130, 142.
Tipson, F. S., 339.
Tools, valuation of, 89.
Total cost, 296.

Towers v. African Tug Co., 210.
Trade discounts, 288.
Trading account, 133, 274; forms

of, 276, 278; selling price in,

288; trading expenses in, 287;

valuation of manufactured

goods in, 284.
Trading expenses, 287.
Trading profits, 285.
Treasury stock, 150, 152.
Trial balance, 35.
Tutt v. Land, 125".

Undervaluation, 84.

Undivided profits, 237.

Union Pacific R.R. Co. v. United

States, 85.
United Railways Investment Co.,

120.
United States Shipbuilding Co.,

170.
United States Steel Corporation,

Form 29, 67, 159, 242, 249,

264



United States v. Kansas Pacific
Ry. Co., 125.

United Verde Copper Co., v. Rob-
erts, 206", 213 m .

Valuation, principles of, 80.
Valuation accounts, 50, 53, 57, 70,

235.

Van de Linde, G., 32.
Verner v. General & Commercial

Trust, 92, 207, 210, 218,

229.

Wages, 309.

Walton, S., 178.

Warren v. King, 229.

Washburn v. National Wall Paper
Co., 107.

Wasting assets, 203, 205, 214.

Watered stock, 171.

Wells-Fargo Express Co., 240.

Welton, T. A., 116.

Wetherbee v. Baker, 166.

Whatley, G. E. S., 248.

Whitcomb v. Converse, 329.

Whitmore, J., 304, 307.

Whittaker v. Amwell National
Bank, 89, 125.

Williams v. Western Union Tele-
graph Co., 175, 230.

Wilmer v. McNamara, 116, 206
208.

Woelfel v. Thompson, 329.

Woodlock, T. F., 73.

Working capital. 179.



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Online LibraryHenry Rand HatfieldModern accounting, its principles and some of its problems → online text (page 27 of 27)