In accountancy, this term means the explanation of the transaction placed immediately below an entry in the Journal. The narrations should be made as concisely as possible, and yet in words the meaning of which cannot be mistaken. Thus, should the entry have to be followed by any person unacquainted with the transaction, he is placed in full possession of the facts without having to refer either to the documents from which the entry has been made or to the person responsible for making it. The following examples of Journal entries will instance the kind of transactions which usually require explanation by means of narrations, and may be taken as being typical of the manner in which such narrations should be made In the case of a Bad Debt: F. Richards, who owes

These are certain documents and chattels which are entirely the creation of the law merchant, and which possess this peculiar character, namely, that the property in the documents and chattels is acquired by transfer only, provided that the whole transaction connected with the transfer is absolutely bond fide. As is well known, in the case of other documents or chattels, the transferor cannot confer a greater title to the same than that which he himself possesses, the legal maxim being nemo dat quod non habet. A great authority has summed up the special characteristics of negotiable instruments as follows 1.The property in them, and not merely the possession, passes by delivery. 2.The holder in due course of such documents is not in any way affected by any defect of title on the part of the transferor or previous holder. He holds them ” free from all the equities.” 3.The holder in due course can sue upon them in his own name. Coin of the realm is practically the only chattel, apart from documents, which comes within the category of negotiable instruments. The most familiar documents of this character are cheques, bills of exchange, promissory notes, and bank notes. Other examples are Treasury bills, foreign bonds, share warrants, and share certificates to bearer. Debentures payable to bearer have now been added to the list of negotiable instruments recognised by the English courts. At one time it was thought that the list of the negotiable instruments which would be recognised was complete ; but some decisions seem to point to the fact that if a clear case of custom or usage is made out that other documents, not formerly included, are in practice recognised by merchants and traders as negotiable instruments, the English Courts will act upon the evidence of such custom and usage and admit their negotiability.

Those who are referred to under this phrase are literally the nearest of kin to any particular deceased person. If the words ” in blood ” are used as an addition, this means those who are next-of-kin in law. Generally speaking, the phrase denotes the person or persons who are entitled to succeed to the personal estate of a deceased, intestate under the Statutes of Distribution {q.v.).

These are such accounts as are of an abstract nature, and which, consequently, go under the names of the matters to which they relate, such as purchases, sales, discounts, commissions, wages, salaries, rent, rates, insurance, etc. Most of these accounts are those from which the Profit and Loss Account (itself a Nominal Account) is compiled. (See below).

Generally, the allowances in respect of earned income, the personal allowance, marriage allowance, allowance for children and dependent relatives, and the allowances for life assurance premiums are granted only to residents in the United Kingdom. Exceptions are made in the case of any person who is, or has been employed in the service of the Crown, persons in the service of any missionary society abroad, or in the service of any of the native states under the protectorate of the British Crown.

This is an official who, in a general way, certifies deeds and other documents. Originally his duty was to take notes or minutes, and to make drafts of writings. The name is derived from the Latin word notarius. His duties include (1)Attesting, copying, and translating documents, so as to render them valid when sent for use in a foreign country ; (2)Presenting dishonoured bills of exchange, and noting the fact of their non-acceptance or non-payment, and afterwards protesting them if required to do so.

This is a notice which is given under the Lands Clauses Act, 1845, when a corporation requires and is empowered to take for its operations certain lands, and is served upon all persons who are the holders of the land which the corporation wishes to purchase. Generally speaking, when a notice to treat has been given it cannot be withdrawn, and the corporation must go through with the matter. The effect of it is to constitute an inchoate contract between the corporation and the proprietors interested, the purchase money to be afterwards ascertained or agreed according to the mode provided by the Act.

Stamped across a check to show that the drawer has no account at the bank against which it was drawn.

For the new account; for the next account; that is, in London, transactions which are not consummated on the fortnightly settling-days would be understood, by this term, to go forward into the next fortnightly settlement.

An employee only required in the larger banking institutions. He is the one who attends to the collection of notes due the bank, and attends to the collection of notes or drafts belonging to the bank’s customers, and entrusted to it for collection. Also called the Third Teller.

One who deals in commercial paper or short-time evidences of indebtedness of a similar nature; the middleman through whom one party borrows money from another by negotiating his notes. The note broker either charges a commission for his services, or buys the note bearing (or discounted at) one rate of interest and sells at a lesser; the difference of interest for the time the note has to run being his profit.

This is used rather more in a commercial sense than net earnings; the latter being applied in reference to railroads, telephone companies, etc. Profits have more the reference to the gain arising from dealing in commodities, and is the gain in any business undertaking of the above nature after taking into consideration the capital invested in such an undertaking, all its expenses incurred in management, and losses sustained, if any. Again net profits and net earnings (see that subject) may be used to mean one and the same thing. Or, in some instances, both terms may be used in the same .system of bookkeeping, as, for instance, net profits to mean the earnings of the business before any losses for bad debts or such like have been deducted, and net earnings after such deduction.

North Butte Mining Co. (Copper.)

Chicago & Northwestern Railway Co.

The actual face value of a security. See Par.

Securities, the holders of which have not agreed to a certain plan, as one of reorganization.

The net deposits of a national bank upon which to figure the reserve (see that subject) requirements, is obtained by deducting the checks which a bank holds drawn against other banks in the same place, exchanges for clearing-house and national bank notes.

The New York, Chicago & St. Louis R. R. Co.

A written promise to pay a specified sum of money at some future time. The various kinds of notes, demand time, etc., will be found explained under the several subjects. The requirements of a note are: that the amount for which it is drawn shall be clearly stated; that it shall be made payable at some determinable time; and that it shall be signed and dated. If the words with interest are inserted without mentioning the rate, then the legal rate of the State in which it is made prevails. A note in the hands of any holder in due course (see that subject) may be voidable for either of the following reasons: if altered by the holder, or signed by a minor; and may be voidable when in the hands of the party to whom first given for the following reasons: dated and issued 2 on Sunday; if the maker was under the influence of liquor; or his signature to the note obtained by fraud. In case a note is destroyed, lost, or stolen, the holder can legally collect from the maker. If there is a disagreement between the words and the figures for the amount for which a note is drawn, the former governs, the same as in a check. Always present a note on the exact day it is due and at the place specified for payment. When no place is named, it may be presented at the maker’s place of business or residence. The reason for presenting a note on the day of its maturity is to hold indorsers or guarantors, if any. The liability of the maker is not lessened by a delay in presentation. In purchasing a note which has been running some time, be sure to ascertain if any payments have been made upon it, as neglect to indorse the same upon the note may have occurred. Direct application to the maker for this information may be made if advisable. All partial payments on notes should be carefully entered upon the back of the same, giving the amount and date of payment. No signature is necessary. It is well to prefix the words Received on the within note, Received on this note, or some such form. Should payment of a note not be made when due, notice must immediately be sent to the indorsers or guarantors, unless some clause is inserted whereby the indorsers or guarantors waive this right of notice. The purchase of overdue notes is an unsafe proceeding. (See also Protest.) Notes falling due on Sunday, or a legal holiday, in most States are payable on the next business day. As this varies in different States it is advisable to look it up in absence of certain knowledge. If days of grace are recognized and the last day of grace falls on Sunday or a legal holiday, the instrument is payable on the day preceding. Note often is applied to money, as bank-note, United States, note, Bank of England note, etc.

Used to designate the Northern Pacific Rwy.

United States Government 2% bonds redeemable after 1930, and known, as Consols. (See Government Bonds.)

United States Government 3% bonds redeemable after August 1, 1908, and known as Loan of 1908-1918. (See Government Bonds.)

A small coin of the United States of the value of 5 cents, containing 57.87 grains of fine copper and 19.29 grains of nickel. Legal tender to the extent of 25 cents.

Cash (payment) on delivery, as distinguished from cash, which in the mercantile world is often taken to mean payment in a short time, generally ten days. Net cash permits of no discount being taken from the face of the bill, as is often allowed when goods are sold for cash. If the term were used, net cash ten days, it would be understood that the payment was to be made within ten days, but no discount was to be taken from the bill.

New York, New Haven & Hartford R. R. Co.