BILLS PAYABLE. 



136. This is an account of the notes we give to othei-s, 

 hence Bills Payable, because we have to pay them. Whenever 

 we give a note we credit Bills Payable, and when we pay that note, 

 we debit Bills Payable. From this you Avill understand that the 

 difference between the two sides of this account should at all 

 times agree with the amount of notes we owe. Therefore: 



AT THE END OF THE YEAR. 



140. In closing this account at the end of the year, find 

 the difference between the sides and then write on the debit side, 

 in red ink, "To Balance" for the difference which will make the 

 account balance. Rule the closing lines and enter in black ink 

 the total amount between them. Next write on the credit side 

 below the closing. lines "By Balance" in black ink for the differ- 

 ence between the sides of the account which should exactly agree 

 with the amount of notes we owe. (See Plates 64 and 65.) 



This account is never closed unless it balances or it is nec- 

 essary to forward to a new page. As the farmer will find it best 



102 



