This section is from the "Practical Banking" book, by Albert S. Bolles.
The postings to the depositors' accounts are sometimes made direct from the deposit slips on the one side, and from the checks on other.
Form of Depositors' Ledger.
The checks and slips, when thus posted, are first entered in a journal or register for the purpose of proving the cash and accounting with the tellers. This journal or register forms a of the general books of the bank. The ledgers containing the d]epositors' accounts are auxiliary to the general books. We mean by this that a statement of the bank's condition is made up independently of the depositors' ledgers. One account in the general ledger serves to show the liability of the bank to its depositors. In some banks the postings to the depositors' accounts are made from other books, usually called "journals." In some systems two journals are used, and in others only one. We give, in this connection, some illustrations of these journals. Though still used to some extent, the forms shown under the title of "debit journal" and "credit journal" have been mostly superseded by more modern devices. The form under the title of "deposit journal" is used by many country banks. It is simple, and well serves the purpose for which it is intended.
Depositors' Ledger with Balance Column.—Form 2.
The first column contains the debits or checks, the second column the credits or deposits, and the third column the balances. The balances are carried out every day after the deposits and checks have been entered up.
In the large city banks where the depositors are so numerous as require a classification of the accounts, several books are kept or summarizing the checks and deposits. The depositors' accounts re grouped thus: Names commencing with A to D, E to K, L to R and S to Z. The checks and deposit slips are assorted so as to entered up under the several classes or groups in separate journals or registers. The work of writing up must be commenced in ample time for entering the last check paid and the last check deposited almost immediately after the tellers close their windows.
* This balance is printed here in italics to represent an overdraft. In practice it would written in red ink.
Depositors' Ledger with Double Balance Columns.—Form 3.
4.613 60 6.952 95
305 10, 10 50, 46 75, 100...........
9.537 65 5.324 05
2100, 137 10, 960 50, 175 20, 1240 80. 208 40, 1324 05, 5420 50...........
This represents a Depositors' Ledger with two debit and two credit columns; one column for itemized checks and one column for dates. The first column on the left shows the debits' balance or overdraft; the second column the totals of checks; the third, itemized checks and other explanatory remarks; the fourth, the dates; fifth, credits or deposits; and sixth, credit balances.
In the work of writing up there is precaution taken to leave sufficient space after the name has been once entered to add subsequent checks. This does not apply so much to deposits, as cases of more than one deposit to a name in a day are exceptional.