THE CASE OF JOHN CRISP

Evening Star, Issue 15481, 1 May 1914, Page 8

THE CASE OF JOHN CRISP

CHARGE AS TO BOOKKEEPING. John Crisp, of Palmerston South, solicitor, appeared on remand at the Police Court this morning, the charge being that on March 16, 1914, at Palmerston, he failed within three years before the commencement of his bankruptcy to keep such books of account as are usual and proper in the business carried on by him, and as sufficiently set forth his business transactions and disclosed his true financial position The Crown Prosecutor (Mr J. F. M. Fraser, K.C.) conducted the prosecution. Mr C. N. Scurr appeared for the accused.

Counsel ■ for the Crown said that since the previous hearing he had deemed it advisable to suggest to the Official Assignee that another accountant should be appointed to examine the accused's books. Ihe Assignee had engaged Mr Algie_ for the work, who would be called. Robert Forrester Algie, public accountant, a. member of the firm of Smeaton and Algie, said he had been examining the books of the accused since the last court day, and was familiar with the class of bookkooping in a solicitor's office. He would say that the accused had failed to keep books such as sufficiently set forth his Dusiness transactions and disclosed his financial position. A cost journal had been kept up to 12 months ago, and since then no entries had been made in it. No attendance book had been recorded. Mr Fraser : From the books as kept, would it have been possible to ascertain the accused's position at any time within the last three years? Witness : I say No. It would be quite possible to arrive at the trust account from the bank's ledger, but not from the books. From the books there i& no evidence of his personal drawings. There is no account in the ledger. In taking the card ledger there were two classes of cards—one for business and one for trusts. The ledger merely contained a record of clients' accounts. As to whether it is complete or not it is impossible to say, as this could only be proved by a reconstruction of accounts or an examination from the beginning. With reference to the cash book, it is what is known as a tabulated cash book. In addition to. the cash columns it contains columns for debits to clients' accounts, office expenses, and office costs. The principal fault of the cash book is that there has been no distinction made between trust and business moneys, both received and paid. To arrive at that it was necessary to go right, through the cheques and see his pay-in book. The cash book has never at any period been correctly balanced and reconciled with the bank pass book, so that it has been impossible at any time to say just how the cash stood. The absence of any attendance book makes it quite impossible to ascertain any of hi* earnings for the past 12 months. To produce an accurate statement one would have to reconstruct the accounts and go right back to the beginning. It is a matter of months for an accountant to be able to give any statement as to the accounts.

To Mr Scurr : No call book had been Jianded to him. If Mr Crisp were available and the call book were written.up to date, the costs outstanding could be made up. The call, book would bo of considerable assistance. ~ Frank Logan, re-examined, gave evidence as to the books reported on by the previous witness. Accused reserved his defence, and was committed to the Supreme Court for ferial..