Single-entry accounts.

A mere collection of _personal accounts_ is, however, obviously a very
incomplete record of the transactions of any business, and does not
suffice to enable a statement of its financial position to be prepared.
So at an early date other accounts were added to the ledger, recording
the acquisition of and disposal of different classes of property, such
accounts being generally known as _real accounts_. These accounts are
kept upon the same principle as personal accounts, in that all
expenditure upon the part of the business is recorded upon the _Dr._
side, and all receipts upon the _Cr._ side; the excess of the debit
entries over the credit entries thus showing the value placed upon those
assets that still remain the property of the business. With the aid of
personal and real accounts properly written up to date, it is possible
at any time to prepare a statement of assets and liabilities showing the
financial position of a business, and the following is an example of
such a statement, which shows also how the profit made by the business
may be thus ascertained, assuming that the financial position at the
commencement of the current financial period, and the movements of
capital into and out of the business during the period, are capable of
being ascertained.

STATE OF AFFAIRS AS AT 31ST DECEMBER 1906

+----+--------------------+----------------++------------------+---------------
| | _Liabilities._ | || _Assets._ |
| | | || |
| | Trade Creditors | L4,961 10 0 || Fixtures, Furni- |
| | Bills Payable | 2,620 18 4 || ture, &c. | L1,269 4 3
| | Balance, being ex- | || Stock on hand | 5,751 3 10
| | cess of assets | || Trade Debtors | 3,842 7 9
| | over liabilities | || Bills Recievable | 7,468 14 3
| | (or "Capital") | || Cash at Bank | 4,169 5 5
| | at this date | || |
| | carried down | 14,918 7 4 || |
| | +----------------++ +---------------
| | |L22,500 15 6 || |L22,500 15 6
| | +----------------++ +---------------
| | Amount of Capi- |