Historical Newspapers of South Carolina

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E88[NTIAL FACTS ON BOW. 10 FIX YOUR INCOME BLANK This Tax Is Often "A Blessing in Dis guise" Forcing, as it Does, the Business Man to Do H1is Biuying, Selling and Accounting More Systenatica ily. Just how a merchant or shopkeeper, who has no real bookkeeping meth ods, should p1 oceed in figuring his annual profit or loss for the purposesI of the income :ax is explained in a statement isuc I by the Bureau of In ternal Revenue. The experience of the bureau is that most shopkeepers have at. hand, or can construct with reasonable a-euracy, the data necessary for properly come - puting the net income for each year. The data which he will need is con tamed in the gross sales. the purchas es e fthe year, the inventories at he ginning and end of the year, and the c selling expenses. I. The gross sales over the counter are known to every progressive :-tore or shopkeeper. In iany cases he has his cash-register memoranda. Even if he has no register, he usually has some other records of his intake. Aside from cash sales, most small stores have runninct accounts with cus tomers. I nthe case of a brand new business it is important that accounts receivable for goods or services fur nished durin the taxable year be ad (led to the cash receipts, the result to be take nas the gross sales of the year. In the case of a long-etsablished business in which the balances due from customers will average about the i same a mound: each year, the storekeep er has the privilege of figuring his net. income on a "cash basis." That 1 is, by ignoring the balances lue him from eustomers and including in his (" cash receipts the tota lof intake re gardless of when his goods were sold, p he will arrive, by proceeding along the W steps prescribed by the bureau, at an h acceptable computation of the net re suit of the year's transactions. a In any case where both the cash in take and the accounts receivable creat ed during the year are taken into con sidleration as the gross sales, the store keeper should guard against duplica tion of the same income byonitting the payments received on back ac- - counts that were taken up in prior ?t years as accrued income. There are, therefore, two methods of arriving at gross sales for the year. On the one hand is the "cash basis," which is more practical for a long established store, and on the other hand is the "accrual basis," which is more accurate from an accounting standpoint as -lmwinog the correct earnings of the store during the year. The purchases of goIs and sup plies during thy' vear are h11t iinable from the in ward invoices, which most shopkeepers retain for their own use in fixing retail prices. Invoices of =" i~l) W. C DA ,. roods not received at the end of the ear should be included, and in tl'.ese -ases such goods must be included in ;he inventory for the end of the year; or, although in transit, the title to the oods has passed to the shopkeeper intl they are considered as on hand. goods or local products received in ex hange for other goods should not be nelu(led; neither should cash pur 'hases be considered if the intake for he year is figured on the basis of the laily gain shown in the cash drawer. The construction of inventories of oods on hand unsold at the beginning mI at the end of the year is no- a liflicult matter in small merchatndis ng. The stock on hand is generally veIll known to the owner, who, if he s wide-awake, keeps an eagle eye on iis shelves and storehouse. The pric ng of this stock is the thing that he oust he most careful about, particular y in these years of fluctuating costs. 'lie pricing should he by one of two nethods: (1) Cost in each item or 2) cost or market whichever is low r" on each item. In either case he - annot value the stock at any price igher than cost and by the second e net hod the shopkeeper may use mar et price if it is lower than his actual t mrehase price, on any or all items. t In pricing inventories there is an ther important rule of the Govern- f nent to be observed; that is where .ools are so intermingled that they an not he identified with specific in oices they am e deemed to be the most ecently purchased. and the latest in Dice prices on those particular items 11 hould be used. 1' r An to selling expenses, these are c asily figured, for a shopkeeper keeps close watch on his t ill and knows 'hat it has cost to pay his help, to s ight and heat his store, to pay his 1 ('mnt, if any, and to maintain his de- E ivery service. Then there is the tele hone, telegraph, postage, expressage, reight, and repairs. He is also allow d to include interest paid on borrow n d( molney, taxes on his business pro crty, and a reasonable allowance for 1 ;ear and tear on his fixtures, wages, 1 orses, delivery auto, or any machin- t ry or other equipcent which he owns nd uses in the business. With the above data at hand, any Baler may figure the net income of he business. The procedure is as fol ws: An the inventory for the beginning h WE CAN SAVE BY MAKING YOUR SERVICI We are doing it for ti' not for you? We believe FOOTER'S==Clean CUMBERL) ,''i , 01 emeso Ra~ .\ pl'sai ripfcm et ate TOO LATE Death only a matter of short time. Don't wait until pains and aches become incurable diseases. Avoid painful consequences by taking GOLD MEDAL The wotid''s snndnrd rem"2 !r kidney, liver, bladcdor nrd aric sid outi --ho Nntion:al Remed. .y 1 '1Huiolr.d wrmee 1696. Guaranteei. Thr1:ee s.zer, all drug~giito. Look for tho name C.c Medll en ovvty box G., accept no imitation f the year to the purchases for the ear; from this sum subtract the in entory for the end of the year, and he balance is the cost of goods sold. 'aking this cost from the gross sales or the year he reaches a figure which his gross opera'ing for the year. 'roma this gross profit he is allowed to educt his selling expenses. The result net profit, to which he should add ny interest or other busines sincome ot included in his gross sales, and the csult will be the amount which he ,ill consider as his business net in Lmle. By pursuing the above method the hopkeeper eliminates cons Weration of is own salary or withdrawals from fe business. If he made withdrawals rom the business, whether daily, 'eckly, monthly, annually, or irrcgu trly, in the form of cash or in goods )r his home consumption, this amount imst either be added back into the net icome as computed by the method ex lained above or he should consider it s a salary withdrawn, and therefore ixable income. The point to be orne in mind is that Mr. Storekeeper taxable on his entire net income, hether withdrawn or not. A merchant may have withdrawn a msiderable amount of money from is business and yet have actually suf 22titttittit2tttt2ttittttt2ttttt2tt2ttttEitttttttl YOU MONEY OLD CLOTHING 'ABLE. Lousands of others-why a trial will convince you. ers and Dyers, AND, MD. 2222222E:tittEtttitS2tttt2ttUtttit2!!::22: I:::: eD A. WEIBERGa V.Pro a The Mo ~ That 'Ev Men Who Appreciate In every great tire fa( chief question is: "How we give for the money?" product depends on tl adopted. 'Every man who has b quainted with Brunswi knows that Brunswick are again evident. This La cern-noted as a leader line it entered since 1845 - more proved that its polic 'A perfect tire is simply of knowledge and stant skill. No secrets nor pa vent making an ideal tir But standards come fir; tire making there is vast skimping, for subtle econ hidden shortcomings. Ma out the highest standa build high-grade tires. The Brunswick organi tire makers includes a bril of technical experts. N< THE BRU Atlan Sold Oi Cord Tires with "i Fabric Tires in "Pla W0 J. Young f an in fisyea'! litran e det f t ioni h is sh lv a h i b jin <h-tlted m; anmeih: t :u- buib 'ling fp and I ttn ig h i u ie ,r withdraw i ;' I I fti :: ! i ih u t hi hw n aI ui n th a i n \ ih t the f ar ini! ai' Iuire t i c or w t her ' he I r ' i -n iy r wi he b - 3e an o .oe in its n i it ,3 a i li t'f'tiiv hiI t r st Welcon er Came to M Superlative Values Prefer :tory, the among them h much can 20 years in hand And the Each is a m ie policy And the new it the attention of ,come ac- tors receive sin ck Tires Every proved standards adopted unanim< in every The Brunswic -has once nation of ackno' y is right. plus Brunswick facture. ards and The result is a tents pre- of which you ha fore. The kind et. For in gladly join in we room for Yet Brunswi< Dmies, for than like-type ti kers with- Try ONE Bru cds don't ise a surprise. I that you will zation of wicks. liant staff Then good tir At a man meaning to you. 4SWICK-BALKE.COLLENDER ( ta Headquarters: 38 Luckie St.. i An Unlimited Mile Guarantee Basis 71(( lE )riving" and "Swastika" Skid-r n," "Ribbed" and "BBC" Skid Motor Co., ia osi 1000.) andt 109G are fur n ished - Grid B3a1 Are Guarante~ed Phiulad(elphi Kai St4atio ieTire [ar1et r The Brunswick is spent less than ling rubber. aster of his craft. leas they bring to Brunswick direc cere consideration. betterment is ously. :k Tire is a combi ledged features standards of manu super-tire,'the like ve never known be of a tire you will lcoming. ks cost no more res. nswicl. We prom knd we feel certain vant ALL Bruns es wiU hav a new ,o. age lot Treads -Not Treads ~anning, S. C. re.:tinic cono a l toay. The v; 1 'l1 :I Iii ilil' Ila (e 10 Ie etU' DLiamond teries for 2 Years. ~tery; Service ni,