It should be remembered that this account would not be used for any loans or discounted bills which are known to be uncollectible. Assume for purposes of illustration that the item mentioned in the previous transaction, namely the loan of H. A. Burt, was paid on July 1. The general ledger entries on the day of payment would be:

These entries include the interest for the additional day. The usual closing entries would be made in the register of loans paid, on the loan card, the loan ledger, and in the maturity tickler. It should be borne in mind that in proving the auxiliary loan ledger with the general ledger, past due paper would, of course, be included.