=34. Pass Book.= The bank _pass-book_ should be taken to the bank whenever a deposit is made, as it contains the bank's receipt for all money deposited. =35. Indorsement of Checks.= Before a check can be deposited in the bank, it must be indorsed by writing the name of the payee across the back. The indorsement should be on the back of the left end of the check--never on the right end. Several forms of indorsement are shown (p. 48). When the name only is written, it makes the check payable to the bearer, and is known as a _blank indorsement_. When the words "Pay to" are used, the check becomes payable to the one whose, name appears immediately under the words. It can only be paid to him in person or credited to his account at any bank at which he may deposit the check. A check indorsed with the words "Pay to the order of" permits of a further transfer, and provides a receipt from the one to whom it is so indorsed. When a check is to be deposited, the proper indorsement is "For deposit only." This is of special importance when deposits are sent by messenger. Such indorsements usually include the name of the bank, and are made with a rubber stamp. =36. Depositing Cash.= It is a good plan to deposit all cash received and to pay all bills by check, except such small items as are paid from petty cash. By doing this, all transactions pass through the bank, providing a receipt in every case in the form of a canceled check bearing the indorsement of the payee. [Illustration: Endorsement] =37. Treatment of Petty Cash.= It is customary in business establishments to keep on hand a certain sum of cash out of which to pay items of expense such as office supplies, etc., when the amount is too small or it is not convenient to write a check. The best way to handle this is to draw a check for a certain amount, and keep this money separate from the cash received from day to day. At the end of the month, or sooner if the fund is low, draw a check payable to cash for the amount paid out and charge it to expense. This will leave the fund intact. _Example_--We shall suppose the amount of petty cash to be kept on hand to be $25.00; and the amount paid out, $15.60, leaving $9.40 on hand. A check will be made for $15.60, to be charged to expense through the regular cash book. The cash will be drawn from the bank, and the amount added to the $9.40, making a total of $25.00. A record of petty cash is usually kept in a small book called a _petty cash book_. This book has the regular two-column journal ruling. In handling petty cash, great care should be taken to secure a receipt in some form for every payment. [Illustration: A BIRD'S-EYE VIEW OF THE BELOIT, WIS., FACTORY OF THE FAIRBANKS-MORSE CO.] SAMPLE TRANSACTIONS =38.= The following sample transactions taken from the books of W. B. Clark, Ames, Ia., illustrate the use of the papers and accounts explained in this section, and show how the transactions would appear on the books.