This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1914 Excerpt: ...as to Bond Records Besides the book value of a bond, the par is also needed because the cash interest is reckoned upon the par. For some purposes, also, it is useful to show the original cost. We must, therefore, provide means for exhibiting these three values: the par, the original cost, and the book value. A mere ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1914 Excerpt: ...as to Bond Records Besides the book value of a bond, the par is also needed because the cash interest is reckoned upon the par. For some purposes, also, it is useful to show the original cost. We must, therefore, provide means for exhibiting these three values: the par, the original cost, and the book value. A mere memorandum of par and cost at the top would be sufficient where the group of bonds in question will all be held to the same date; but this is not always the case, and provision must be made for increase and decrease. The three-column form of ledger ( 169), constantly exhibiting the balance, is the most suitable for this purpose also. But if we endeavor to display all of these forms side by side, we require nine columns, and this makes an unwieldy book. The most practical way is to abandon the use of debit and credit columns, and proceed by addition and subtraction, or in what the Italians term the scalar (ladder-like) form, which gives a perfectly clear result, especially if the balances are all written in red. Headed by a description of the bonds, and embracing, also, a place for noting the market value at intervals (not as matter of account, but of information), the Principal account will appear as shown in Form I (page 152). 202. Form of Bond Ledger As far as the bond ledger is concerned, the transfer of the $50,000 sold to Sales account is final; we have, however, in the example indicated ( 200), a way of incorporating a statement of the profit or loss in the margin for historical purposes. The amortization of November 1, 1916, is composed of two parts: 3 months on the $50,000 sold, $111.21; and the regular 6 months on the $50,000 retained, $222.43. In the example given in 200, these are entered separately; either me...
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