the accounts payable ledger. All items in the "Miscellaneous column should be separately posted to the debit of the proper general ledger accounts.

At the close of each month the footing of "Accounts Payable" column is posted to the debit of the "Accounts Payable" account in the general ledger; and the footings of the "Discount" and the "Net Disbursements" column are posted in the general ledger to the credit of "Discounts" and "Cash" accounts, respectively.

The net receipts to date, per cash receipts book, added to balance, per "Cash" account of preceding month, and diminished by net disbursements to date, per cash disbursements book, gives available bank balance.

§ 90. Evidence of Payment.

Receipts for disbursements vary in form according to the conditions. Sometimes invoices are sent out with the checks to be receipted and returned. The practice is not good. Invoices should be filed as evidence of purchase,—not as evidence of payment.

In some businesses it is not advisable to send out voucher jackets with the checks to be receipted. In such case the

check itself may be made to serve as a receipt. For this purpose a blank line should be provided on the check underneath. the line on which the amount of money is written. The cashier can note on this line a brief description of what the payment is for and when the check has been properly en

Cut No. 3. Receipt when Voucher System is Not in Use. (Size of Original, 81⁄2 x 7 inches.)

Please SIGN AND RETURN this voucher at your earliest convenience.

dorsed and returned by the bank it furnishes good evidence of payment.2

3

If, however, this plan is not favored, and a voucher system is in use, the voucher jacket may be sent with the check and this jacket be receipted and returned. The invoices should not be sent with the jacket, but should be permanently attached to it when it has been returned.

If a voucher system is not in use and if receipts are required for all check disbursements, the form of receipt illustrated by Cut No. 3 answers the purpose very well. One of these receipts should support each check disbursement. They should be numbered consecutively and filed accordingly. Cut No. 3A illustrates the back of the receipt when it is folded for filing.

Cut No. 3A. Receipt when Folded for Filing.

If possible, the treasurer should always reconcile bank balances when the bank pass book is written up. If he cannot do so, however, he should have the returned checks delivered to him direct from the bank and ascertain by actual count whether the number agrees with the number stated to have been returned by the bank. By keeping a memorandum of the number returned it is possible to verify the number outstanding. The cashier should deliver to the treasurer all checks spoiled in writing, etc. The total number of checks returned plus any spoiled checks, when deducted from the number of checks issued up to and including the last one considered in reconciling the bank balance, should leave the number out standing as shown by the cashier's reconciliation.

• See § 229.

§ 92. Record of Bond Issues.

Bond issues are often sold through underwriting syndicates, or by financial institutions making a specialty of the business. In such case it is customary to have the bonds issued through a trust company or other financial institution which acts as transfer agent and registrar. In that event the treasurer is relieved of the clerical work involved, as the trust company keeps the necessary records.

If conditions require that bond records be kept by the treasurer, or under his direction, it will be necessary to provide a bond register, and-if coupon bonds are issued a coupon register for each denomination.

§ 93. Bond Register.

Registered bonds are of two classes,-(1) bonds the principal and interest of which are payable to the registered owner only, interest checks being issued on the specified interest dates direct to the holders of record; (2) bonds the principal of which is payable to the registered owner only but the interest on which is represented by means of coupons and is payable to the holders of the coupons, these latter being surrendered when paid. (See § 356.)

The principal record for registered bonds consists of a bond register. An index of bondholders (See Cut No. 5) is also usually maintained. The form of bond register illustrated in Cut No. 4 has twenty columns for twenty interest payments, and provides a complete record for ten-year bonds on which interest is payable semi-annually.

When a registered bond is transferred a new one is issued on surrender of the old, just as a new stock certificate is issued on surrender of the old certificate when stock is transferred. The surrendered bond is cancelled and filed, and in the bond register, a red ink line is drawn through the name and address

See Chap. XXXI, "Bonds."

of the former owner, i. e. the party selling the bond, and also through the number and amount of the cancelled bond. Also the number of the new bond is written directly after the

entry of the last interest payment, on the old bond, as indicated in Cut No. 4. This while showing that the old bond has been transferred also gives the number of the new bond by which it is replaced. The name and address of the owner of the new bond is then recorded in the bond register on the first vacant line in the column headed "To Whom Issued," and the record. is complete.

The difference between the footing of the "Amount" column of the bond register-or columns when the record runs over a number of pages-and the sum total of all bonds cancelled-indicated by the red ink line drawn through number, name, address and amount-should agree with the balance of the bond account in the general ledger. (See § 166.)

Interest should be computed on each bond and recorded under the proper interest period in the bond register at the time interest checks are issued. The sum total of the footings