BANK FORMS. Importance of Keeping a Bank Account. O business men or women, the keeping of a bank account is a matter of very considerable convenience, as well as benefit to themselves. If much business is done, money is constantly accumulating, which is easily deposited, and is usually more secure from burglary in a reliable bank than elsewhere. It is true that money will sometimes be lost, through the robbery or failure of a bank; but of all the chances for loss which business people have to contend with, that by failure of banks is the least; while it is found that the practice of depositing each day's accumulations in a bank, having the same in readiness to draw whenever wanted, as a whole, works greatly to the advantage of people doing a large amount of business. Of course, where the deposits are large, and the rates of interest are good, the banker is considerably benefited by having the use of the money. Bankers, however, realize their indebtedness to the customer, and in various ways, through their acquaintance and influence with wealthy men, often render such aid to their patrons in a time of need, as enables them to carry forward certain enterprises that would be. found oftentimes very difficult to accomplish without such aid. If it is intended, when depositing money in a bank, to allow the same to remain for several weeks or months, the banker will usually give the person so depositing a "Certificate of Deposit;" if, however, it is desired to draw the money out frequently, while daily, perhaps, adding more, the banker will present the depositor with a Pass Book, a Check Book, and Deposit Tickets. The Deposit Ticket is a blank form, which the customer will fill up, indicating when, as well as the amount, and kind of funds deposited. The following exhibits the form of a deposit ticket. That printed in Roman type represents the printed matter on the same; the BILLS OF EXCHANGE. A Bill of Exchange is an order addressed to some person at a distance, directing him to pay a certain amount to the person in whose favor the bill is drawn, or to his order. A merchant in Chicago, owing a sum of money for goods to a merchant in London, instead of remitting money or goods to the amount of the debt, goes into the bank and buys from the banker, who keeps an account in London, a bill of exchange for the amount, and sends it to his creditor; in this way the creditor gets payment from a person in his own city, generally a banker, who keeps an account with some American banker for the purpose of paying such drafts. dollars, which is the amount he thinks he may require while in England. The banker also having money deposited in Paris, perhaps, and also in Vienna, he takes a bill for a thousand on a bank in each of those places. With these bills in his possession, he commences his journey, with only money in his pocket sufficient to pay the incidental expenses of the trip, and draws on the London, Paris, and Vienna bankers as occasion requires. The object of this arrangement is to secure travelers against loss, the bankers affording this accommodation to merchants and travelers for a percentage, which is paid them when they sell the bill of exchange. In issuing these bills of exchange, it is customary for the banker to issue a set of two or Letters of Credit have come largely into use, three, worded nearly alike. One of these is of late years, with tourists abroad, though Bills kept by the purchaser, to be presented by him of Exchange are yet frequently used by per- to the foreign banker, the other two are transsons who wish to travel in foreign countries. mitted by mail, at different times, to the same Thus, if A, an American, wishes to travel bank. Thus, if the first bill is lost, the second over Europe, he estimates the expense of the or third, that go by mail, will still be available, journey, and finds it to be, perhaps $3,000. To and the holder can obtain the money without carry this with him, in gold, would be unsafe being subjected to the delay of writing to and troublesome. He, therefore, goes to a ban-America for another bill. These bills are ker and gets a bill of exchange for a thousand worded as follows: Set of Foreign Bills of Exchange. Sixty days after sight, of this A draft may properly be called an inland bill of exchange. It is customary for the bankers in all large cities, to make deposits with bankers in other large cities, and also for the banks in the interior towns to make deposits with some one bank in the nearest metropolis. Thus, the bankers of Milwaukee, Chicago, and St. Louis, have deposits in New York, so that any person wishing to pay a certain sum of money to another person, East, has only to step into a bank and Exchange for Chicago, July 10, 18-. Sixty days after sight, of this Our THIRD OF EXCHANGE (first and second of the same tenor and date unpaid), pay to the order of Abel Cummings, Two Hundred Pounds Sterling, value received, and charge the same, without further advice, to Henry Greenebaum & Co. } To the Union Bank of London, purchase a draft for the amount on New York, which he sends by mail to the creditor, who can usually get the amount the draft calls for, at the nearest bank. The banker, as with bills of exchange, charges a certain commission to pay him for his trouble, which is termed "Exchange." There being less liability to lose these inland bills, only one is usually issued. The merchant in the interior town, or other person, wishing to send money to Milwaukee, St. Louis, Cincinnati, or any other Three Days of Grace are allowed upon Promissory Notes and Bills of Exchange in the following States, according to laws in force, January 1, 1875: NOTE.- In States not enumerated here, the Commercial Laws of the States regulate in regard to Grace, Protest and Notice. 150 Forms of Book-Keeping. RULES, DIRECTIONS, AND FORMS FOR KEEPING BOOKS OF ACCOUNT. VERY person having occasion to keep an account with others, is greatly benefited by a knowledge of book-keeping. There are two systems of keeping books in use: one known as SINGLE ENTRY; the other, as DOUBLE ENTRY, In this chapter it is the design to give simply an outline of Single Entry, a method of keeping books which answers every purpose with the majority of people, besides being a system so plain and simple as to be readily comprehended. The books used in Single Entry are generally a Day-book, in which are recorded each day's sale of goods, or labor performed, and money, service, or goods received; and a Ledger, in which the sum total of each transaction is put in its proper place, so arranged as to show, on a brief examination, how the account stands. These books, of different sizes, may be found at the bookstores; though, in case of necessity, they can easily be made with a few sheets of foolscap paper, ruled as hereafter shown. Persons having many dealings with customers should use a Daybook, in which is written each transaction; these being afterwards transferred to the Ledger. Where, however, accounts are few, the account may be made complete in the Ledger, as shown in several forms on the following page. In making charges in a book and giving credit, it is necessary to keep clearly in mind whether the person of whom we write gives or receives. If the individual gives he is a creditor, which is designated by the abbreviation, Cr. If the person receives, he is a Debtor, the sign 1or which is Dr. In the passage from the creditor to the debtor of any article, we get the word "To,” with which the creditor commences the account. In the reception by a debtor of an article from a creditor, we get the word "By." The following forms show the manner of keeping an account by Arthur Williams, a merchant, with Chas. B. Strong, a farmer, who buys goods and settles his bills, usually, at the end of every month; in the meantime taking to the store various kinds of produce, for which the merchant gives credit according to the market value. Mr. Williams keeps two books, a Day-book and Ledger. LEDGER. Charles B. Strong. July 10 To D 14 1875 225 July 19 By D 38 Chas. B. Strong, Dr. 410 46 ΙΟ "Sugar, 10c. 42 50 12 50 Remarks Concerning the Ledger. S will be seen by the example in the Ledger, the first column contains months; second, day of the month; third, "To D" means To Day-book. In the fourth column, the 14, 38, and 80 refer to the No. of the page in the Day-book which by reference fully explains the transaction. The fifth and sixth columns contain the totals of each purchase or sale as recorded in the Day-book. The Ledger should have an index in the first part which, under the head of S, will contain "Strong, Chas. B.," opposite which is the number 66, showing that Strong's account may be found on page 66 of the Ledger. When the account is balanced and closed, a sloping line is drawn down the space containing the least writing and double lines are made beneath the totals, indicating that the account is "closed." The Day-Book. In the foregoing example only Chas. B. Strong's account is shown on a page of the Day-book. This is, however, a long book usually, each page being of sufficient length to contain the accounts of several customers. At the top of each page, the day of the week, day of the month, and year, should always be written. If the day's entries commence in the middle of the page, write the day of the week and day of the month distinctly above the first, and thus at the beginning of each day's entries. When the total of the entry on the Day-book is transferred to the Ledger, the No. of the page in the Ledger where the account is kept, is placed beside the entry in the Day-book, which shows that the account has been "posted" to the Ledger. |