646 



THE HOME, FARM AND BUSINESS CYC] OP^DIA. 



11C. Debit for all notes and time 

 drafts made by one party, payable to 

 another, and endorsed over to us. 



117. Note illustration of above: 



1000^ GUELPH, Nov. 14, 1880. 



Sixty days after date I promise to pay 

 Selden A. Emerson, or order, One thousand 

 and ]^j Dollars, with interest at 8 per cent, 

 per annum, at Ontario Bank of Toronto. 

 Value received. 



No. 8. HUGO SMITH. 



Back of above note endorsed over 

 to us : 



o 



>. 



118. Directions for balancing the Bills Receivable account at the end of 

 the year : 



1st. Find the difference between the two sides of this account, then 

 write on the credit side " By Balance," in red ink, for this difference, which 

 will make the account balance. 



2nd. Now rule the closing lines and write the total amounts between 

 these lines. 



3rd. Write on the debit side of this account, below the closing lines, 

 in black ink, " To Balance," arid the amount of the difference, as found 

 above, which must exactly agree with the notes we have on hand. 



119. EXPLANATION. Bills receivable account is an account of Notes 

 and Time Drafts (or Acceptances (receivable to us, hence "Bills or Notes 

 Receivable." 



120. This account is, in effect, in one respect like the Cash Book or 

 Cash Account ; for, when we receive a note, we debit Bills Receivable, 

 and when we give out that note, we credit Bills Receivable. We debit 

 the account for all the notes and acceptances we receive, and credit it 



