After the first day the figures in "Accounts Receivable" column are obtained by adding together the amounts showing in the tenth and thirteenth column and deducting from this total the amount in the eleventh column. This balance will be entered in the tenth column for the next day, the same procedure being followed for each day thereafter.
"Merchandise on Hand" after the close of business on the last day of the month should be entered in the first column on the line marked "Month Total." This same amount will br carried forward to the first column of next month's sheet and entered on the line of the particular day of the week on which the first of the month falls.
Following the "Month Total" are the "Year to Date" and "Last Year to Date." These figures are important for purposes of comparison. Arrive at total for "Year to Date" by adding the total for the present month to the total for "Year to Date" found on the previous month's sheet. The figures for "Last Year to Date" are taken directly from the sheet kept for the same month last year. It is, of course, evident that this cannot be done until one year's records have been completed.
Expenses and Profits.
Under the heading "Summary" at the bottom of the sheet, provision has been made for finding out how much net profit YOU have made for the month.
On the line marked "Gross Profits" enter the "Month Total" figures in the eighth column. Below this enter all the various items of expense as follows:
(1) Advertising: By advertising is meant such copy, signs, etc., which may be prepared and used for the purpose of keeping the public informed as to your ability to serve them—in other words, any space which is used for general publicity purposes, such as for instance, your card in the classified telephone directory, or blotters, folders, dodgers which you may have printed up and distributed.
Do not load this account with church programs, contributions to the ball team, tickets to the fireman's ball and the like. These are donations, and not advertising.
(2) Electricity: All bills for electrical current will be charged to this account.
(3) Freight: Charges for all freight and express will be made to this account.