To illustrate a transaction showing the purchase of these stamps, which are used largely for time paper where the customer has not attached the stamps required, assume the bank purchases $500 worth of stamps. The transactions would be as follows:

Debit: Internal Revenue Stamps (17).....

$500

Credit: Cash (11)....................

$500

Then suppose 40 cents in stamps are attached to a $2,000 note collected for a customer. The following entries show that transaction:

Debit: Due to Depositors (37) (and customer's account) .............

$ .40

Credit: Internal Revenue Stamps (17)

$ .40