640 



THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



84. Form of bank draft we re- 

 ceive : 



&Q. ONTARIO. 



BANK OF TORONTO. 



Jan. 3rd, 1882. 



Pay to the order of J. H. Goodwin & Co., 

 One hundred and y^ Dollars. 



Cashier. 



To Union Bank, ) G. B. HOLLAND, 

 No. 3. Montreal, j 



85. Debit for all sight drafts we 

 receive. 



Form of sight draft we receive : 



MONTREAL, Jan. 6, 1882. 



At sight with exchange, 

 pay to the order of J. H. Goodwin & Co. , 

 One hundred and fourteen and _3^. Dollars, 

 value received, and charge same to account 

 of S. J. MURPHY. 



To Campbell & Son, Toronto. 

 No. 4. 



86. EXPLANATION. Bank Drafts, Sight Drafts, Checks, Pension Checks, 

 Money Orders, Due Bills, and all orders for which we can get cash upon 

 presentation, are called Cash ; consequently, when we receive any of these 

 we debit Cash, and when we give any out we credit Cash. The debit 

 side of the Cash account is always the larger, as, of course, it is impossible 

 to pay out more cash than we receive. (See 13 and 43 to 46.) 



861-SJ. BANK ACCOUNT. It is unnecessary labour to keep a Bank ac- 

 count in the Ledger. It is now the custom with nearly all practical busi- 

 ness men to call the amount on deposit in the bank so much cash^on hand, 

 and to keep no account with the bank in their Ledger. Instead of this, 

 they keep their account with the bank on the stub of the check-book in 

 the following manner : When they begin using a check-book they enter 

 on the stub of the book the amount they have on deposit in the bank 

 and when they make a deposit they add the amount deposited to the 

 amount they had on deposit ; then when they draw checks on the bank 

 they deduct the amounts of such checks from the amount on deposit. 

 This shows, at any time, the amount to their credit in the bank. Of 



