THE LEDGER 25 



bookkeeping abbreviations referred to previously, we might 

 have this transaction appear in the two accounts as fol- 

 lows: 



Cash 



1916 



Mar. 1 On hand $1,000 



Mar. 30 Less paid on 



note . . 300 



Balance on hand . . $700 



Notes Payable 



1916 



Mar. 1 First Nat'l Bk. 



(90 days) . . . $300 

 Mar. 30 Less redeemed in 



Cash . . 300 



Bal. due on 

 notes.. $000 



This method gives the same information that is given 

 in the correct ledger accounts, namely, that after paying 

 $300 to redeem the note, there is $700 in cash still in the 

 business; and there is nothing owing on simple promis- 

 sory 1 notes. However, the work involved in the method 

 just illustrated is the chief objection to its use. It involves 

 an addition or subtraction after each entry, with as many 



*A Mortgage payable is a promissory note secured by a mortgage. 

 The liability is on the note rather than on the mortgage. They are 

 shown in separate accounts for convenience. 



