"* You will next take a trial balance of your Ledger to prove the correctness of your work. You will
observe that your Ledger does not contain all of the accounts which usually appear in a Double Entry
Ledger, such as Interest and Discount, Collection and Exchange, etc. This is due to the non-appear-
ance of such items in your statement. These accounts will appear in the Ledger later on, and will be
opened as occasion demands.
"• In business, when the books have been kept by Single Entry, it is often impossible to obtain a
correct statement of the resources and liabilities at any given time, owing to the incompleteness of that
system; and hence "Hhe net gain or net loss of the business for that period, and the proprietor's present
worth, as shown by the statement, will not correctly represent the facts. For instance: "* If a note had
been issued, and no record made of it in the Bill Book, and the note was unpaid and not thought of at
the time of making the statement, the liabilities would be the amount of the note too small. *^ This
omission would have the effect of increasing the net gain or decreasing the net loss, which in turn would
make the present worth greater than it should be, or the net insolvency less than it should be. **^ The
omission of a resource at the time of making a statement would have just the opposite effect of the above
results.
