722 THE HOME, FARM AND BUSINESS CYCLOPEDIA. 



Ex. 492. On the 6th instant we draw on Miller at sight, through our 

 bank, for the amount of his account. Our bank this day advises us that 

 the draft is paid, and enters in our bank book the amount to our credit. 

 We now add this to the amount we have on deposit in the bank on the 

 stub of our check-book, which is the same in effect as making a deposit of 

 that amount. (See 170, 74, and 143.) Posted to 703. 



Ex. 493 and 494. The note which Smith gave to Emerson on Nov. 

 14th, at 30 days, for SI, 000, and was by Emerson endorsed over to the 

 firm on Dec. 1st, is now due. Smith is unable to pay more than $500 

 and the interest accrued to date $7.33 ; he therefore wishes to renew 

 the remaining $500 for 15 days. He pays $507.33 cash, which is entered 

 in the manner indicated in 493 and 494, and then writes a new note for 

 8500 at 15 days, gets the same person he had on the old note to endorse 

 for him, and hands this note to us ; we then surrender the old note. No 

 entry need be made for the new note ; but it may be allowed to appear 

 in the books as so much still remaining unpaid on the old note, the only 

 record of the renewal being made in the Bills Receivable and Bills Pay- 

 able Book. [See 124 and 153.) Posted to 622 and 665. The object 

 in taking a new note instead of endorsing the payment on the back and 

 holding the old note, is in order that we may use the new, to get it dis- 

 counted if we wish. 



Ex. 495 and 496. This note is made with interest, and as the rate per 

 cent, is satisfactory to the bank, instead of deducting a discount, they 

 allow us for the interest which has already accrued on the note to date, 

 and give us credit for the face of the note $200 and this accrued inte- 

 rest 76 cents. The interest is in this case calculated from the date of 

 the note to the time it is discounted, from Dec. 3rd to Dec. 20th 17 

 days. (See 125.) Posted to 623 and 666. 



Ex. 497, 498, and 534. We sold Bennett and Cameron goods on Dec. 

 17th and 21st, on terms 60 days, or 2 per cent, off for cash within 6 days, 

 On Dec. 23rd, they deduct 2 per cent, from their bills, and pay us the 

 balance. We give them credit for the full amount of the bills, and debit 

 Merchandise on the opposite page. (See 534 and 74.) 497 and 498 

 posted to 699 and 746. 



Ex. 499. Cole pays us the amount due, and, as his is a petty account, 

 it is treated in the manner described in paragraph 327. Posted to 744. 



Ex. 500. This is the amount we received from Hurto when we com- 

 promised with him for a full settlement at 60 cents on the dollar. (See 

 450, 451.) Posted to 689. 



