MODERN BALANCE-SHEETS.

Dominion, Volume 3, Issue 914, 6 September 1910, Page 6

MODERN BALANCE-SHEETS.

. Sir,—A few years, ago, shorthand' was the great hobby, of our; youths;/now it is bookkeeping. , Go to the .Public' Library during lunch-hours, and you'• will 'find some, eager 'student, who has, probably, hud but the scantiest refreshment in order "to .get there'first, poring'over and' taking copious'.extracts. from; Spicer; and iPegler's. "Bookkeeping and Accounts," and. if you succeed in 'getting the, book into your, hands for a'few; minutes you, will find ■ how: industrious pencils . .have ticked, the figures arid annotated the text., But/ unfortunately for the students the edition .is.; two years old,;;arid accountancy .'makes rapid strides. .By./way. of -illustration of this progressive movement it may be'pointed iout that in ,the last numbers, reccivod' of tlie. - "Accountant' the- editor /prophesies that, the.: skill, of. accountants will soon deyise : .some scheme by which the actual, cash account shall have -.full recognition 'iii/the; balancesheets. Such a scheme would perhaps bo in harmony with /the'. Government's preference for statements showing - merely receipts and:payments/ \yhilo-at t nc sa me time-it would supply; the' information accountants hold absolutely necessary to the furnishing of a correct statement of tlin financial condition,-, of a business concern, , ... ■'••'■■.

- These observations may. or may not have ; any bearing on .the- remarkable' balance-sheet contained in a company's prospectus circulated widely, in this citya few weeks njjo. .'.Eoru- we find somt .decidedly new features: that deserve consideration,- especially, as. the. balancesheet is certified as "drawn up according to law,", although there are deviations .-from the ' prescribedi form.' 'It ,;is true that the "N.Z. Accountant" - condemns tho production as "ghastly," hut/ the : word may refer only, to the . dismal - re-' velation of loss on. the part:of the early shareholders. The production also reveals that. a- method •of : efi'efAunli'y : guarding against, such, inconveniences recurring from any' future unsuccessful operations has been']discovered, for according 'to .the' Oguros-and; the new.; arrangement ;of them the company can now be worked in such.a manner that -its: "balance, of assets over' liabilities"' shall ' increase pound for pound with the expenditure. The discovery is . one of. .the -most important we have had-if it holds water. How far it can be relied upon'in all cases time will show. But who should enjoy the honour, ofi the discovery is- a ,; little uncertain.- Rome such'srstem seems' to . prevail: in Ministerial, bookkeeping, for no extravagance on the part of Prime Ministers stands in the;way of the exhibi-. tion of. big surpluses to the.people.' Surpluses of.- this; description first' made their appearance' in the time of Seddon, and have' continued, ever since' to the present day in our , Ministerial'.: 'accounts. The discovery has another advantage. It should solve.,'all our.growing Labour::troubles. liiinplbyers • who adopt ; the new - system have only, to pay increased wages, and then, as if, by magic, whether they get increased work 1 done .or not, the assets of their ' businesses will! mount '■ up ~by that extent, exactly. So there will be no more., strikes. Employers will: only be too eager to spend their: money. Still/ I think, there will lie some incredulous! conservative people who will persist, in regarding, the balance-sheet. referred to as merely an "apport" after . all—a ? medium for their amusement—l am. etc.,."..: . • ' ;, ~ : '~ ; LIVE ANDjLBAEN. -Northland, September 5, : .1910: .' '