160 NATURE OF CAPITAL AND INCOME  [CHmar.IX 
by an equal and opposite item on the outgo side. All 
items thus paired are represented by the same letters, the 
capitals being used for positive items and the small letters 
for negative. 
IncoME AND Ourco oF DrY Goops COMPANY, FOR 
Yrar 1906 
  
  
  
Capital Source Income Outgo 
To goods 
bought . $5,000¢ 
Stock of Goods | By goods sold. $10,000 4 | To work of 
selling . 1,500h 
To storage . 1,000 g 
  
  
  
By cash taken out 
for: — 
rent . . . $1200B 
purchases . . 5,000C | To cash re- 
Cash wages . . .1600D| ceived 
interest pay- from sales $10,000 a 
ment. . . S00E 
profits . . .2,000F 
Store Lease By storage service $1,000 G | To rent paid $1,200b 
  
Rights to and | By clerk work . $1,500 H | To clerk hire $1,600d 
obligations 
from employees 
  
  
Bonded debt To interest 
paid . . $800e 
Capital stock To profits 
paid . . $2,000f 
  
  
  
  
Let us consider the first item of capital, the stock of 
goods. This yields to the company as its gross income 
the money obtained from sales, amounting to $10,000 (4). 
The payment of this money into the cash drawer becomes a 
debit item (a) on the part of the stock of cash. Reversely, 
when the rent is paid the lease of the store is debited with 
$1200 (b), and the stock of cash which yields this value of