IN WHICH PHIL ATTEMPTS TO MAKE OUT A TRIAL BALANCE.
I went to church and to Sunday school as usual the next day; and I knew
that I felt better than I should have done on board of the Florina. The
next day, however, when I met Mr. Whippleton in the counting-room, he
seemed to have laid up no grudge against me: on the contrary, I thought
he was rather more pleasant and considerate than usual; but perhaps his
conduct was only in contrast with what I had expected.
On Thursday morning, Bob Murray, the new entry clerk, appeared, and I
spent the forenoon in initiating him into the mysteries of his duty. In
the afternoon I commenced posting, for Mr. Whippleton had been so busy
with his boat, and with his other out-door occupations, that the books
were somewhat behindhand. While I was thus engaged, I obeyed the
instructions of the junior partner, and examined carefully into the
system by which the accounts were kept. I began early in the morning
and worked till late at night, until I had posted everything down to
the Saturday of the preceding week. Then I had no difficulty in keeping
the work up.
Mr. Whippleton was away now a large portion of the time. I knew that he
was engaged to some extent in real estate speculations, and he hinted
to me that these operations occupied a considerable portion of his
time. He had simply directed me to post the books, but having mastered
the system, I was disposed to show him that I was competent to keep the
books alone. I footed up the columns of the invoice and sales books,
and I intended to surprise him, at the end of the month, by showing him
a trial balance and a statement of results. I thought I could do this,
and it would be a feather in my cap if I succeeded. It would not only
be good practice for me, but it would show the exact condition of the
business.
While I was at work on the invoice book, I found what appeared to me to
be an error. The invoices, or bills of lumber purchased by the firm,
were all carefully filed away. On referring to the original document, I
found it footed up five instead of fifteen thousand dollars. I turned
to the cash book, and found that fifteen thousand dollars had been paid
on account of this transaction, and I concluded that there must be
another bill. I could find no other. The purchase had been made while I
was in the office, and I remembered the bill.
I decided to examine all the invoices from the first day of the year,
and compare them with the entries in the book, which had been
transferred to the ledger. I discovered four other entries for which
there were no invoices at all. In other words, there was merchandise to
the amount of about thirty-five thousand dollars of which I could
obtain no knowledge whatever. However, I went on with my trial balance,
and the result, when I had completed it, was startling to me. My
statement showed that the firm had lost over ten thousand dollars in
five months, taking the stock on hand at cost and considering all debts
good.
The head salesman kept what he called a "lumber book." The first entry
in it was the amount of stock on hand at the beginning of the year. To
this was added all lumber bought, and from it all sales were deducted,
so that the book showed the amount of lumber of each kind on hand. This
he did so as to be able at all times to report what new stock was
needed, and then Mr. Whippleton ordered it. As there was not a great
variety of merchandise, the keeping of this book did not demand much
labor, each salesman being required to deduct his sales from the gross
amounts.
None of the invoices which were missing had been entered in this book.
It appeared, therefore, that the firm had thirty thousand dollars worth
of stock on hand more than was exhibited by the lumber book. I did not
understand it, and I came to the conclusion that I did not know half so
much about book-keeping as I had flattered myself I did. Still my
accounts all "proved," and though I worked over this problem every
evening till midnight, I could not arrive at any different result.
I was amazed, and even vexed. I did not like to say anything to Mr.
Whippleton, because I wished to surprise him with my knowledge of
accounts on the first of the month. It would astonish him to learn that
the firm had lost over ten thousand dollars in five months, several of
them the best in the year for business. I came to the conclusion that
my laudable design would be a failure, or only prove that I was a vain
and conceited boy, who knew but little of the science of accounts. I
did not suspect that anything was wrong, except in my own calculations.
Probably Mr. Whippleton knew all about the matter, and in due time
would set it right, showing that the concern had made twenty or thirty
thousand dollars in five months, instead of losing ten thousand.
"Is Mr. Whippleton in?" asked a gentleman, one day, while I was
harassing my brain over the knotty problem.
"No, sir," I replied. "He went out at ten o'clock, and I have not seen
him since."
"Sorry; I wanted to see him."
I soon found that this gentleman was the agent of the Michigan Pine
Company, in whose invoice the discrepancy of ten thousand dollars
appeared. Without indicating my purpose, I made such inquiries of him
as enabled him to give the information I wanted. I was satisfied that
the invoice on file was correct, and that no lumber had been purchased
for which the firm had not received a bill.
Of course this discovery only added to my perplexity, and I worked half
a day over the head salesman's lumber book; but I finished the
investigation no wiser than I had begun it. On the cash book it
appeared that the amount of the actual bill had been paid at one time,
and the ten thousand dollars at another. I give the amount in round
numbers, though it varied somewhat from these figures. I worried myself
over the matter till I was afraid it would make me sick, and then I
gave it up in despair. The first day of the month came, and when I
added the month's business to my trial balance, I found another amount
of five thousand dollars unexplained by any invoice. The balance
against the firm remained about the same. Mortified at my defeat, I
decided to show my statement to Mr. Whippleton, for I was deeply
interested to know where "the figures lied."
"What's that?" demanded the junior partner, as I laid my balance sheet
and statement before him.
"I have made out a trial balance and statement, sir," I replied.
"Who told you to do that?" he asked, with a glance at the sanctum of
Mr. Collingsby.
"No one, sir."
"What do you mean by wasting your time in that way?"
"You told me to look into the system of keeping the books, and I
thought I could not do it any better than by getting out a trial
balance for the last six months."
"We don't take a trial balance but once a year."
"I only did it for practice, so that I might understand it better when
I had to do the real thing."
"I don't care about your overhauling the books to that extent without
my knowledge," added Mr. Whippleton, looking very much displeased.
I began to think I had sailed my last sail in the Florina; but as I had
kept the books up square, I did not feel that I had done anything to
incur his displeasure.
[Illustration: THE TRIAL BALANCE. Page 108.]
"I only did it for practice, sir," I repeated, in excuse for my wicked
conduct.
"Did Mr. Collingsby tell you to do that?"
"No, sir; he never said a word to me about it."
"Have you shown it to him?"
"No sir; of course not. There is something wrong about it. You
understand these things so well that I suppose you can tell me at a
glance just what the matter is."
"Perhaps I can," he added, glancing at my sheets. "What's the matter
with it?"
"I make it out that the concern has lost about ten thousand dollars in
the last six months' business. Of course that can't be so."
"Certainly not; and that shows the folly of boys like you meddling with
what you don't understand," said he, sourly, and in a more crabbed tone
than he had ever before used to me.
I had expected to be commended for the zeal I had shown in my efforts
to master the details of the business, instead of which I found myself
sharply reproved. I had made a failure of my purpose to get out a
correct trial balance, and this was sufficiently mortifying without the
reproach the junior partner cast upon me. I hung my head with shame
while he glanced over the trial balance, which, according to my
father's system, included the balance sheet. I supposed his practised
eye would promptly detect my error.
"What's the matter with it?" said he, petulantly.
"There is something about the invoices that I don't understand; but I
suppose it must be because I am so thick-headed," I replied, with
becoming humility.
"With the invoices?" added he, with a kind of gasp which attracted my
attention.
I glanced at him, and I observed that his face was deadly pale. His lip
quivered, and he appeared to be very much agitated. I was astonished at
this exhibition on his part, and while I was considering whether he was
angry with me or not, he walked away and drank a glass of ice water at
the table. I had seen him turn very pale when he was angry, and I was
afraid I had mortally offended him by my innocent zeal.
"What's the matter with the invoices, Phil?" he asked, returning to the
desk with a sickly smile upon his pallid face.
"I don't know that anything is the matter with them, sir. I suppose I
have made a blunder," I replied, stammering with confusion, for the
situation was entirely new to me. "The May invoice of the Michigan Pine
Company foots up on the book about fifteen thousand dollars, but the
bill on file shows only five."
"You have made a silly blunder, Phil," laughed he; but still his lip
quivered.
"I supposed I had, sir; and I only wanted to know where my mistake
was."
"There is only one little trouble with you, Phil. You think you know a
great deal more than you do know."
"I suppose you are right, sir. I thought I knew how to make out a trial
balance and balance sheet; but I find I don't, though I have done it a
dozen times under my father's direction."
"These make-believe accounts are not like real ones," added Mr.
Whippleton, sagely.
"I see they are not."
"I suppose you read a check mark, or something of that kind, for a one,
in the invoice book."
"I should suppose so myself, sir, if the cash book and check book did
not both show that the fifteen thousand dollars was paid to the
Michigan Pine Company."
"Is that so?" said he, startled again. "I must have left those invoices
at my room. I had them there one evening."
"Perhaps you have some others there," I suggested quietly, in my
ignorance; "for the invoice book shows about forty thousand dollars'
worth of lumber for which there are no bills."
"They must be at my room; I will bring them down," he added, turning
away from me.
"They were not entered in the lumber book either," I added; "so, I
suppose, if I add forty thousand dollars to the stock item it will come
out right."
Mr. Whippleton had dropped into a chair, and looked paler than ever.