Ray's New Higher Arithmetic · Arts. 55–58 · Unit 4: Subtraction
10. Business terms: accounts and balances
Goal: Your student knows what an account, debit and credit are, and finds the balance of a simple account by subtraction.
You'll need
- The book
- A slate, small whiteboard or scrap paper
- A notebook and pencil
What's in the book
A first look at book-keeping: accounts, debits (Dr.) and credits (Cr.), and balancing; then two practical exercises with ledger accounts to balance (James Craig and Thomas Baldwin). No answers are printed; the scan of the second account is hard to read. A topical outline of subtraction follows.
The lesson, step by step
Warm-up
Ask: If you earned $12, spent $5 and earned $8 more, how much do you have? Write it as two lists, money in and money out.
The idea
Read:
Book-keeping is the science and art of recording business transactions.
Each account has two sides: Dr. — Debits, and Cr. — Credits.
SayDr. is what someone owes or has received from you; Cr. is what they have paid or given. The balance is the difference between the two sides.
Old business words
In 1880 a merchant wrote "To Merchandise" for goods sold to a customer and "By Cash" for money received. "Bills payable" were written promises to pay. These are still the bones of modern bookkeeping.
Work an account together
Turn to the James Craig account. Add the debit column, add the credit column, then subtract the smaller total from the larger. Say which side is bigger: that tells you who owes whom.
Independent practice
Your student balances the Thomas Baldwin account the same way. If the scan is hard to read in places, use the clearest entries and make up the rest.
Check
The book prints no answers here. Check by adding the balance to the smaller side: it must equal the larger side.
Wrap-up
Ask your student to set up a two-column account of their own money for a week, debits on the left, credits on the right.
Afterwards
Keep the weekly account going and balance it each Saturday.
Tip
This page is the book's first brush with business. Keep it practical: a real allowance or a small household budget works best.