Encyclopædia of Accounting

Bankruptcy (England).-SIDNEY S. DAWSON, A.C.A., Author of "A Lexicon for Trustees and Liquidators," "The Accountant's Compendium," etc., Liverpool. Bankruptcy (Scotland).-W. J. CULLEN, M.A., LL.B., Advocate, Editor of "Goudy on

Bankruptcy."

Bills of Exchange.-WILLIAM WALLACE, Author of "Banking Law."

Bond for Cash Credit.-ALLAN M'NEIL, Solicitor, Bank of Scotland.

Book-keeping.-GEORGE LISLE, C.A., F.F.A., Author of "Accounting in Theory and Practice," "Book-keeping for County Councils," etc.

Book-keeping, its adaptability to the requirements of every class of undertaking.-LAWRENCE R. DICKSEE, F.C.A., Professor of Accounting in the University of Birmingham; Author of "Auditing," "Book-keeping for Accountant Students," etc.

Book-keeping-Bibliography.-RICHARD BROWN, C.A., Secretary of the Society of Accountants in Scotland.

Brewers' Accounts.-C. D. CAMPBELL, Edinburgh.

Builders' Accounts.-JOHN A. WALBANK, A.C.A., Author of "Builders' Accounts," Newcastle-upon-Tyne.

ENCYCLOPÆDIA

ACCOUNTING

"A" List of Contributories.-The list of members, or representatives of members, on the list of shareholders at the winding up of a company, and who as such are primarily liable to contribute. It is usually divided into two parts (1) contributories in their own right; and (2) contributories as representative of or liable to the debts of others, e.g. executors or trustees in bankruptcy of members.

Abatement, or Rebate, is a deduction, draw back, or decrease made or a proportionate reduction of a payment allowed for special reasons; as, for example, for prompt payment or in respect of damage to goods.

Abstract of Title is an epitome of the evidence of ownership showing the right to an estate. The purchaser of a freehold estate is entitled to have such evidence for a period of forty years, or, in the case of advowsons, for a period of one hundred years. An abstract is sufficient if it shows that the vendor is himself competent to convey or can procure the vesting of the purchaser in the estate free from encumbrances.

A/c or Acc't.-Contractions for Account.

Acceptance.-In relation to contracts generally, the term "Acceptance" means the expression of assent by one person to a proposal made by another. In connection with contracts of sale, there is acceptance when the buyer intimates to the seller that he has accepted the goods, or it may be sufficient proof of acceptance if the buyer does any act in relation to the goods inconsistent with the ownership of the seller.

In relation to bills of exchange, an acceptance means the acknowledgment of a drawee of his obligation to pay the amount in the bill of exchange by writing his name upon the bill. The drawee is said then to accept the bill, and thereafter the bill itself is frequently called an acceptance. An acceptance of a bill may be either general or qualified. A general acceptance assents without qualification to the order of the drawer. A qualified acceptance in express terms varies the effect of the bill as drawn.

VOL. I

Acceptor. The person upon whom a bill of exchange is drawn (the drawee), by signifying his assent to the document by writing his name upon it, becomes the acceptor.

Accident Insurance is a contract under which the insurer contracts to pay a certain sum in the event of injury or death from accident, and the insured becomes bound to pay a certain sum in name of premium. The system of insurance against accident was largely due to the advancement of railway travelling. Between 1845 and 1850 thirteen accident insurance offices were projected, although only one of these still exists. At first the premiums were arrived at very roughly, but they have now been made more in proportion to the risks incurred, and by classifying the different risks an endeavour has been made to make each class of insurance remunerative. The Employers' Liability Act 1850 and the Workmen's Compensation Acts have made further scope for the principle. An arbitration clause is usually inserted in an accident insurance policy, whereby the settlement of disputed claims is arrived at without having recourse to the law courts. The contract itself is called an insurance policy. The usual form of policy entitles the insured or his representatives to certain fixed payments in case he sustains any bodily injury caused by violent, accidental, external, and visible means, and resulting in death or disablement within three months of the accident.

The contract is to a limited extent a contract of indemnity, because the agreed-on compensation does not necessarily bear any relation to the income or wealth of the insured. The period of payment for disablement is sometimes limited to half a year. The policy of insurance may be taken out for any stated period, or it may be for a single journey or a certain class of risk. The usual accident policy runs for a year, and is renewable at the company's option.

At all railway stations tickets may be purchased insuring the purchaser against accident for the particular journey upon which he is going.

The existence of an accident policy, and any payment received under it, does not prevent the insured or his representatives from recovering damages in respect of the injury from those responsible for the accident.

Accommodation Bill. See BILLS OF EXCHANGE.

Account.-On the Stock Exchange there are settlements twice each month in General Securities, and once a month in British Consols and Indian Government Sterling Stocks, the dates of these settlements being fixed by the Stock Exchange Committees. The account begins after one settlement and ends at the date of the next. Transactions are said to be for the account, and prices are quoted for the account, to distinguish these transactions from bargains for cash. Practically, all speculation which goes on on the Stock Exchange, and also most of the ordinary business, is done by buying or selling for the account.

Account is used in book-keeping as meaning a particular group or class of entries in the ledger, relating to a person, a kind of property, or a branch of the Profit and Loss Account. An account shows the transactions with the person whose account it is, if it is a personal account; the cost of purchases and price realised on sales of goods, or the value of the article as an asset,

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