These records, in order to be of value, should be kept in such a way as to give the necessary information in systematic form. The book used for this purpose is the cash book. It may be kept on one page or on two opposite pages. The one-page cash book is well adapted to the keeping of simple personal accounts in a small pocket cash book. By universal custom, receipts are placed in the left-hand column and payments in the right-hand column. A form suitable to the individual that does not have a large number of transactions is given on page three. It is a good plan to balance the cash book often. It may be done weekly or semi-monthly but should always be balanced at the foot of each page. To Balance a One-Page Cash Book: 1. Add in pencil the "Received" column and the "Paid" column. Make small, neat, pencil figures just below the line on which the last item is written. The pencil figures should not be written on the line. 2. Subtract the amount paid out from the amount received. 3. Enter this difference in the "Paid" column, preferably in red ink, as "Balance on hand." 4. Rule a single red line across the "Received" and "Paid" columns to show that the columns are to be added. 5. Put the equal totals on the next line below in black ink. 6. Rule double red lines on the line on which the totals are entered. These double lines should extend across the "Received" and "Paid" columns and also across the date column. 7. The "Balance on hand" should be brought down below the ruling in black ink and entered in the "Received" column unless that page of the cash book is full, then, it should be taken to the top of the next page. This balance shows the amount on hand to use for the next period. Ruling. Before writing out any exercises it will be necessary to practice ruling. Directions: 1. Use red ink for ruling. 2. The ruling edge of the ruler should not touch the paper, but the bevel should run down under. 3. The hand should be turned on its side and the penholder held at an angle of about thirty-five to forty degrees. 4. Double lines should be ruled by turning the hand out, but without moving the ruler. 5. A medium fine pen should be used so as to make a narrow, smooth line. Exercise in Ruling: 1. Take a sheet of ruled paper and rule a line across the page on each line of the page. 2. On the other side of the paper, rule a line across the page on the line. Without moving the ruler, rule a line under the first just far enough away so that it does not touch the first line. In the same way, rule double lines on each line on the page. 3. Take a sheet of paper ruled with horizontal lines and rule a cash book like the model given. This practice should be continued until the pupil can rule exactly and neatly. Exercise 1. Enter the following transactions on a sheet of paper ruled like the model cash book or on journal paper used as a cash book. January 1. Balance on hand, $7.15. (Enter this in the "Received" column because it represents the amount left at the end of December December to be used for January.) 2. 3. Paid for laundry, 45¢. Received wages, $7.50. Paid board to date, $3.50. Received for addressing envelopes, $1. 3. 5. Paid for car fare, 50¢. 7. 8. Paid for hat, $3.50. 12. Deposited in Savings Bank, $3. Money put into a savings bank is entered as paid out because it has gone out of your possession. The Savings Book will show at any time how much you have in the bank. 15. 15. Paid for subscription to the System Magazine for one year, $2. Paid for stamps, 20¢. Balance the cash book and bring the balance down January 16. Then make the following entries on the same sheet, below the balance brought down. Balance the cash book and bring the balance down February 1. It is even more necessary in handling the funds of others to keep a systematic record of receipts and payments. The transactions of the treasurer of a school paper, of a school society, or of an athletic association may be kept in the same way, but it is better to use a twopage cash book, with the receipts on the left page and the payments on the right page opposite. The following form shows the transactions of the treasurer of a school paper. leash Receipts, Feb. 19 Feb. 1 Balance on hand 4 Wells rbo's ad. for Feb. 6 B.D. Foster's subscription 9 Jonesbos ad. for Jan, Feb. 350 75 320 75 14 Proceeds of entertainment 56 45 225 12175 7190 Mar1 Balance on hand. 193.65 34.46 It is usually best to enter the balance on hand at the beginning of the month in the second column of the Cash Receipts, so as to keep the receipts for the month separate from the balance at the beginning of the month. In balancing a two-page cash book, the last column of the Receipts side is used for the total cash received; the last column of the Payments side is used for the total cash paid out and for the balance on hand. The closing single and double lines should be ruled straight across on both the Receipts and Payments sides without moving the ruler. The balance should be brought down below the double lines on the Receipts side or taken to the top of the next page. It should be dated March 1, and put in the last money column to show the amount on hand March 1, left from February. Exercise 2. Use two opposite pages of a sheet of journal paper, Cash Payments, Feb. Feb. 7 Broad Bint Co's bill 9 Postage, Feb. number 12 Story prize, F. Cars 16. St. car fare 16 Engraving, Mar.number 20 Commission to collectors 23 500 advertising blotters 27 500 letter heads. 20 Total payments for Feb. 28 Balance on hand 19. 113 15 2:05+ 2 3450 345 165 114 225 15919 Aub 19365 heading the left Cash Receipts, October 19- and the right Cash Payments, October 19, and enter the transactions of the treasurer of a school athletic association. October 1. TRANSACTIONS Received dues from 100 members, $25. 2. Paid telephone charges, 25¢. 3. Paid for 1 doz. receipt books, $1. Paid for advertisement of tomorrow's game, $7.25. Received dues from 75 members, $18.75. 5. 6. 6. 6. 9. 10. 11. 13. 13. Paid for athletic field for Oak Park game, $10. Paid for football, $3.50. Paid for stationery, $1.50. Receipts of Oak Park football game, $125.75. 18. 20. Received dues from 50 members, $12.50. Paid expenses of faculty manager attending Chicago game, $6.25. |