6 BULLETIN 865, U. S. DEPARTMENT OF AGRICULTURE. 
amount should be entered as the first item in the Cash Journal, the debit being entered . 
in the Cash column, the credit in the General pede column, from which it is posted 
to this account. 
It is always desirable that all cash receipts be depeeed during the accounting 
period in which they are received, and that all disbursements be made by check. 
Often, however, small items are paid in cash. Such expenditures should be covered 
by an order, which is approved by the manager, showing the amount, the date, 
account chargeable, and any other necessary information, and should be signed by 
the payee. At the end of each period a check should be drawn for an amount equal 
to the disbursements. The charge for this check should be made in the Cash Journal 
to the various Expense accounts and the cheek must be included in the next bank 
deposit. 
Bank Account (A 2). 
(Name of bank.) 
‘Desir: | CREDIT: 
1. With the balance in the bank as 1. With the amount of overdraft as 
shown by the Balance Sheet at the | shown by the Balance Sheet at the 
time of opening the books. time of opening the books. 
2. With the total of all deposits during | 2. With the total of all amounts dis- 
the period. | bursed by check during the 
3. With interest credited by the bank. period. 
3. With interest charged by the bank 
on overdraft. 
This account will appear in the Ledger under the name of the bank and should 
be debited with the amount of cash on deposit at the beginning of the period. This 
balance is determined by taking the balance rendered by the bank and deducting 
therefrom the total of ail outstanding or uncanceled checks. Normally the balance 
shown by the bank will be in excess of that shown by the organization. 
Debits and credits to this account for interest receipts and payments, and exchange 
charges will arise from debit and credit memoranda submitted by the bank at the 
time of rendering its statement. 
Notes RECEIVABLE (A 3). 
DEBIT: CREDIT: 
1. With the face value of notes of 1. With amounts paid on notes by 
others on hand as shown by the their makers, settlements made 
Balance Sheet at the time of in any other manner or amounts 
opening the books. charged Loss and Gain as uncol- 
2. With the face value ‘of the notes lectable. 
received during the period. 
When notes are taken in payment for subscription to capital stock the total amount 
of such notes should be debited to this account. When notes are discounted at the 
bank, their face value, less the discount charged, should be debited to the Bank 
Account. This, however, does not change the notes, there being a contraliability to 
the bank for the full face value of the notes discounted. This lability is further 
discussed under Notes Receivable Discounted. 
