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Remerka relating 1. The person who signs a note, is called the drawer or maker of the note: thus, Reuben Holmes is the drawer of note No. 1.

2. The person who has the rightful possession of a note, is called the holder of the note.

3. A note is said to be negotiable when it is made payable to A B, or order, (See No. 1.) Now if Abel Bond to whom this note is made payable, writes his name on the back of it, he is said to endorse the note, and he is called the endorser; and when the note becomes due, the holder must first demand payment of the maker, Reuben Holmes, and if he declines paying it, the holder may then require payment of Abel Bond, the endorser.

4. If the note is made payable to A B, or bearer, then the drawer alone is responsible, and he must pay to any person who holds the note.

5. The time at which a note is to be paid should always be named, but if no time is specified, the drawer must pay when required to do so, and the note will draw interest after the payment is demanded.

6. When a note, payable at a future day, becomes due, it will draw interest, though no mention is made of interest.

7. In each of the States there is a rate of interest estab. lished by law, which is called the legal interest, and when no rate is specified, the note will always draw legal interest. If a rate higher than legal interest be taken, the drawer, in most of the States, is not bound to pay the note.

8. If two persons jointly and severally give their note, (See No. 3) it may be collected of either of them.

9. The words "For value received,” should be expressed in every note.

10. When a note is given, payable on a fixed day, and in a specific article, as in wheat or rye, payment must be offered at the specified time, and if it is not, the holder can demand the value in money.

1

263

A PRACTICAL SYSTEM

OF

BOOK KEEPING.

ness.

Persons transacting business find it necessary to writo down the articles bought or sold, together with their prices and the nanies of the persons with whom the bargains are made.

Book KeÈPING is the method of recording such transactions' in a regular manner. It is divided into two kinds, called Single Entry and Double Entry. The method by Single Entry is the most simple, and answers for all common busi.

This method we will explain. Book Keeping by Single Entry requires two books, a Day Book and a Leger ; and when cash sales are extensive, an additional book is necessary, which is called a Cash Book.

DAY BOOK. This book should contain a full history of the business transactions, in the precise order in which they may have occurred.

The transfer of an account from the Day Book to the Le. ger, is called posting the account.

Each page of the Day Book should be ruled with two col. umns on the right hand of the page, one for dollars, and one for cents, and one column on the left hand for entering the page

of the Leger on which the account may be posted. The Day Book should begin with the name of the owner, and place of residence; and then should follow a full ac. count of the transactions in business in the exact order in which they may have occurred.

The name of the person, or customer, is first written with the term Dr. or Ct. opposite, according as he becomes a debtor or creditor by the transaction.

Generally, the porson who receives is Debtor, and the per. son who parts with his property is the Creditor.

Thus, if I sell goodi to' A B, on credit, he becomes me

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Page 2

York, June 5th, 1833.

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XI.

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Folio
Leger.
George Wilson,

Cr. * cts
By Cash,

*100 By his note of this date for

12,20 112 20 William Wells,

Cr.
X 1. By Cash,

63300
-6th.
John McNeil,

Dr.
To Cash,

$275,10
To one horse,

125,00
To 85lb. of butter at 20 cts. per lb. 17,00 41710
Daniel Judson,

Dr.
To 3 hhd. of molasses at 820 each, $60,00
To 3 bar. of salted shad at $8 per
barrel.

24,00
To 4 kegs of raisins at $2 per kg.

8,00

92 00
x 1.
Charles Patch,

Cr.
By Cash,

$400,00
By his note of this date, due
Aug. 1, 1833,

51,11 45111
-8th.
Daniel Judson,

Cr.
x 1.

By 116 lb. of beef at 8 cts. per lb. $ 9,28
By 50 bu. of oats at 37 cts per bush. 18,50 27 78
Jared Newton,

Dr.
x 1.

To 1 piece of linen 36 yards, $42,50
To 3yd. of broadcloth at 4,50 per yd 13,50
To 46 lb. of nails at 6 cts.

2,76

58/76
-10th.
Jared Newton,

Cr.
By Cash,

$37,50
By do.

21,26 58/76 John Dodson,

Cr.
By Cash,

$24,50
x1. By 20 lb. of butter at 18 cts. per lb. 3,60

By his note of this date, on demand, 20,65 48/75
John McNeill,

Cr.
x 1.1
By Cush,

oloo

*1.

LEGER.

The Leger is a book into which is collected, in a condensed form, all the scattered accounts from the Day Book.

Two columns should be ruled on the right of each page of the Leger, one for dollars and one for cents ; there should also be two columns on the left, one to insert the date of the transaction, and the other for inserting the page of the Day Book from which the account is transferred.

Two pages of the Leger, facing each other, are generally used in stating an account, though sometimes a page is diri. ded into two equal parts, in which case each part may be considered as forming a separate page. The name of the per. son with whom the account is stated should be written in large letters at the top of the left hand page.

The Debits are entered on the left hand page, and the Credits on the other page directly opposite. The difference between the debits and credits, is always entered under the least sum, when the account is closed, and is called the bat ance, as in the account of John McNeill.

At the top of the left hand column, we enter the year, under which, we enter the day of the month on which the transaction took place ; and in the adjoining column, we en. ter the page of the Day Book from which the account is transferred.

When there are several articles charged in the Day Book, we need not specify them all, but may enter them in the Le. ger under the general name of " Sundries." Having posted the account, we enter the page of the Leger to which it has been transferred, in the left hand column of the Day Book and opposite the account, and make a mark x to catch the eye and show that the account is posted.

We begin posting with the account of George Wilson, who stands charged on the Day Book with $112,20. Having posted the first charge, we run the eye carefully through the Day Book, to see if there are any other charges against him, and find that in page 2 he is credited by 100 dollars cash, and a note for $12,20. These items we enter in the Legen, on

credit side, and as the debits and credits are equal, bis funt is balanced. We proceed in the same way to pout

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