BILLS RECEIVABLE (XOTES RECEIVABLE.) (547 



whenever we return or give out any of those notes or acceptances; there- 

 fore, the difference between the two sides of this account should at any 

 time sliuw the exact amount of notes we have on hand remaining unpaid. 

 The similarity of the C ish account to the Bills Receivable account arises 

 in this : We debit Cash for the Cash we receive, and credit Cash when- 

 ever we give out any, the difference between the two sides of the account 

 showing, at any time, the exact amount of cash on hand. 



The Bills Receivable account is, in another respect, like a personal 

 owing us ; for, when a person gives us a note, we give that person 

 credit and transfer the debt which heretofore stood on his account to the 

 del lit of Bills Receivable account, which now shows that the Bills Receiv- 

 able account is owing us instead of the person. Illustrating the account 

 in tliis way, we will say that this person is responsible for "Air. Bills Re- 

 able's" indebtedness, and is obliged to pay it when it becomes due ; so 

 when he pays the note we credit " Mr. Bills Receivable," and write in the 



ianation column the name of the maker of the note. 

 I % 2. The three principal objects in taking notes from our customers 

 are : 1st. To have written acknowledgments from the parties of their 

 indebtedness, so that if we were obliged to enter upon legal proceedings in 

 r to collect the amounts, we would not have to prove the indebtedness; 

 whereas if they were open accounts, we would sometimes be obliged to do 

 2nd. Another object is, if we are in need of money, we take these 

 "3 and discount them in the bank, getting the money to use in that 

 \\ ay. 3rd. Still another is, in order to get interest on the accounts ; for 

 le persons object to paying interest on their accounts after they are 

 dm-, but as it is customary to give notes made with interest for ac- 

 counts past due, they do not object to paying it in this way. 



lSt. When the maker of a note cannot pay its full face value when it 



lit makes a part payment, we credit " Bills Receivable" for 



amount paid, and endorse on the back of the note the amount of the 



possible manner, thus : "January \~, issi.paid 



IvSI. When the maker of a note cannot pay when it becomes due. l.ut 

 W the note," the renewal may lie recorded in any one of 

 'lowing described ways: 1st. By .simply taking the Hill Jl 

 25 and writing in the. " Reiiruks" column, opposite the entry t'rthe 



old not . Renewed, and then en on this same book the new note 



1 ; nr, _nd. I'.y del.it in^ the pencil and crediting UilU 

 tie- old note si ir rend ffed, and then Crediting the person and debit- 



1. By debiting Bills 



