--------------------------------+-------------------------------- Dr. | Cr. --------------------------------+-------------------------------- 1903. | 1902. Jan. 20. To Cash £300 1 6 | Dec. 31. By Balance £500 2 6 | 1903. Apl. 22. ” Cash 90 1 3 | Feb. 15. ” Smith 10 0 0 May 15. ” Cash 200 5 0 | Mar. 31. ” Jones 70 3 4 ” 18. ” Cash 50 0 0 | Apl. 22. ” Robinson 8 0 6 ” 31. ” Cash 9 0 0 | May 26. ” Self 5 10 0 June 10. ” Cash 100 0 0 | June 5. ” Williams 16 11 2 ” 28. ” Cash 7 0 0 | ” 25. ” Brown 7 2 3 ” 30. ” Interest 0 3 2 | ” 30. ” Charges 5 2 6 | ” Balance 133 18 8 ---------- | ---------- £756 10 11 | £756 10 11 ========== | ========== | June 30. ” Balance £133 18 8 | Mr. Jones’ ledger, then, assuming that none of his cheques are outstanding, will show the same balance at the debit of “bank,” though, of course, the dates will not agree, as Mr. Jones credits the bank on the day that he draws a cheque, whereas the bank debits him on the day that it pays it. We can see that his banker paid a cheque to Smith on the 15th February. If John Jones drew the said cheque on the 12th, then he debited Smith’s account and credited the bank on the same day. But these entries, as we shall see in our next illustration, appear upon the opposite sides of the banker’s ledger. Mr. Jones, whose securities are tangible, has arranged with the manager that he is to pay 4 per cent. per annum on the overdraft and ⅛ per cent. on his turn-over, and to receive 1½ per cent. on his daily credit balances. Having received his pass-book, he wishes to check his charges, and after making two or three attempts, he is convinced of the futility of his efforts, so renounces his task in despair. He has worked the figures out in his own way, which, though a little primitive, he generally finds answers pretty well, and, as his figures come to something like those entered in the pass-book, he supposes that it is all right. Perhaps the following copy of his account as it stands in the bank’s ledger may therefore prove both illuminating and instructive:-- JONES, JOHN, General Dealer, 5, High Street, Exeter.