5. Checks made payable to bearer, or order, or to the order of, or to cash, when indorsed, are regarded as money. Any one having such checks should be careful not to lose them. 6. The drawer of any check may stop the payment of the check by notifying the bank before the payment is actually made. 7. If you want to assure the person to whom you send a check that you have enough money in the bank to pay the check, you may have the check certified. You take it to the bank and the cashier stamps "certified across the face and signs his name. If you have any blank checks at home, bring them to school. Write checks in payment of the various bills on the preceding pages. Make a check book of several slips of paper. Do not forget to provide a stub for every check. Pay the following bills with checks : 1. Your gas bill, $2.15, to the New York Gas Company. 2. Your electric light bill, $2.78, to the Electric Light Company. 3. Your club dues, $2, to one of your clubs. 4. Your magazine bill, $1.50, to the Framley Publishing Company. 5. Your doctor's bill, $5, to Dr. S. Anderson. CASH AND PERSONAL ACCOUNTS A cash account is a statement or record of money taken in and paid out. It has a column at the left for the date, and money columns at the right. The word "Cash" is written in the middle over the columns. Some accounts have the Receipts (Debtor Dr.) on one side and the Payments (Creditor - Cr.) on the other side of the page. Others have the two columns together, alongside each other. Here are specimen pages of cash accounts: In most business houses cash accounts are usually kept in a separate book from other accounts, the left page being used for all receipts (debits) and the right page for all payments (credits). [With pencil] Write the following accounts, ruling your page properly, and balance each. Supply dates. 1. Receipts Sale of newspapers, 60¢; running errands, 20¢; sale of magazines, 80¢; from father, $2.00. Payments - For newspapers, 35¢; for magazines, 50¢; for books, 40; for gloves, 45¢; for bat, 25¢. 2. Receipts Payments 3. Receipts Payments - July 1: On hand, $2.10; errands, 30¢; sweeping store, 10¢; from father, $1.50; from mother, 50¢; from uncle, 25¢. Kites, 20¢; baseball, 25¢; bat, 25¢; candy, 15; Thrift Stamps, 50¢. Aug. 1: On hand, $1.60; picking berries, Candy, $1.50; theater, $1.00; carfares, $.30; 4. Imagine that you are treasurer of the School Athletic Association. Write the cash account for the following months: 5. Imagine that you are the treasurer of the Perseverance Club. Write the cash account for the previous term. Supply your own dates, items, and figures. Some of the receipts are dues, donations, sales of tickets to festivals, etc. Some of the expenses are printing, refreshments, help, costumes, prizes, etc. 6. Imagine that at the beginning of this month there was $50 in the treasury. Write the cash account for the month: 7. Keep a cash account of your receipts and expenses for this week; for the month. An establishment authorized to receive, to lend, and to exchange money is called a bank. If a person wants to use his money soon, he deposits it in a bank of deposit or a business or commercial bank. If he does not need the money for some time and does not expect to draw it out for some time, he usually deposits it in a savings bank. BANKS OF DEPOSIT SAVINGS BANKS on money deposited (usually on sums from $5 to $5000), for a time known as interest term, which may be 3 months or 6 months. 1. A bank of deposit allows a 1. A savings bank pays interest checking account instead of interest. The depositor has the privilege of drawing checks on the bank, ordering it to pay money up to the amount 2. on deposit in the bank. 2. A bank of deposit receives deposits for safekeeping A savings bank as a rule accepts money for safekeeping and cashes checks of depositors only when presented with the pass book, or deposit book. Checks drawn by the depositor on other banks are usually accepted for deposit. |