The CASH BOOK entries for these two amounts drawn out on 1 and 31 January, 1890, respectively, will be as follows:-They both appear on the Credit side, which side I only therefore produce. You will find the ruling identical to that given at paragraph 29. The effect of these CASH entries is to leave PETTY CASHIER a permanent Debtor in the PRIVATE LEDGER (P.L., fo. 20) for £20, and forms a BALANCE SHEET item, the subsequent payment of £13 15s. 5d. to him restoring his IMPREST to that amount, and being charged out direct to the various LEDGER folios, as per columns in the PETTY CASH Book, so far as the first six are concerned, the remaining four (£1 15s. 4d., 18s. 9d., 12s. 6d. and 1s. 6d.) amounting to £3 8s. 1d., the sum of the 7th column (LEDGER items) being analysed and posted out accordingly, the first to an Impersonal account, the remaining three to Personal Accounts. The same operation is carried out monthly or oftener, should the IMPREST of £20 not hold out so long, and have consequently to be made up again. Bills Payable Book, and Bills Receivable Book. 41. At paragraph 17 I foreshadowed the use of the BILLS PAYABLE BOOK and BILLS RECEIVABLE BOOK as two further subsidiary Books, to a certain extent superseding the use of the JOURNAL, as it has become now pretty well the practice in businesses generally (that of a MERCHANT or BANKER excepted) to post direct from the same. The following are convenient forms for these two Books. They are so ruled as to allow of direct postings to the respective LEDGERS without the intervention of the JOURNAL: I do not put a column "where payable" as they are all made payable at the Bank, otherwise this column at once becomes necessary. You will notice that BILL PAYABLE No. 1 for £100, and due 4 February, 1890, drawn by and for account of E. Brown, is made payable to A. Brown, his brother. A. Brown happens to be a buyer of the firm (E. Brown being a seller to the firm), and with whom he has an account in the SALES LEDGER (S.L., fo. 20) for Goods sold to him. E. Brown passes on the firm's acceptance to him, which he (A. Brown) sends them back as a Remittance; as such, it finds its way as BILL RECEIVABLE No. 3 in the BILLS RECEIVABLE BOOK. On 4 February, 1890, when it matures, a JOURNAL ENTRY is passed, debiting BILLS PAYABLE account £100 in the PRIVATE LEDGER (P.L., fo. 15), and crediting BILLS RECEIVABLE account in the same LEDGER (P.L., fo. 22) with the same amount, and so clearing the transaction in both these Impersonal Accounts, for this £100, which in the ordinary way would have been done through the CASH BOOK, on this occasion, as no CASH passes, the JOURNAL steps in and does what is needful herein. I mention this, because you must often have similar cases coming under your notice of BILLS thus answering the dual purpose. This is of very frequent occurrence in transactions from abroad with this country, and especially with BRANCHES in connection with each other or the HEAD OFFICE, as I may have occasion to point out in my fourth paper when dealing with COLONIAL AND FOREIGN BANKING on the evening of 4 February. Diary of Bills Payable. 42. It is important to keep a DIARY OF BILLS PAYABLE, in order to know daily what amounts are maturing, and to make timely provision for meeting the same. This DIARY must be written up daily as the BILLS are accepted. Any remissness or oversight in this respect might (in fact, very probably would) lead to serious consequences, especially where one is not over flush of CASH, and has to finance more or less from hand to mouth. In some cases it is the custom to lodge with one's bankers on the last day of each month a list of the bills maturing for the following month. This is more especially the case where the BANK ACCOUNT is worked on the "overdraft" system (better known in the country and abroad). Bills 43. It is usual to put the BILLS RECEIVABLE, when back from acceptance, in a leather case with 12 openings (one for each month), and to put the BILLS, after sorting them in precise order of date of maturity, in their respective monthly compartment. They are thus readily available either for discount or for lodging with the bank for collection. This latter is generally done in batches a few days before maturity. Whenever any BILLS are taken out of the case they should be marked off in the BILLS RECEIVABLE BOOK (last column showing "how and when disposed of"). In some old-fashioned concerns, where they never either |