This section is from the "Practical Banking" book, by Albert S. Bolles.
Chapter VII. is devoted chiefly to the subject of discounting paper. The information there given is so explicit that nothing remains to be said here more than to explain some special functions of the Offering-book, and give an idea of its place in a system of bank accounts. On page 62, in the chapter referred to, reference is made to the formula arrangement of the Offering-book. There is no prescribed rule for the form to be employed. Any arrangement that will best meet the requirements may be adopted. But little difference in the style is to be noticed among the many in use. We submit a form that seems to fill the requirements. The form may be improved upon for some institutions. Some Offering-books have a column headed "Average Balances." This is to give the information contained in the Average-book, for a description of which see page 59. Where an Average-book is kept, the addition of the average balance column is not essential, and if it tends to make the book cumbersome, should be omitted. The Offering-book is commonly termed a memorandum or auxiliary to the regular set. It, however, acts as the book of original entry for the class of transactions which originate therein. From the Offering-book the record is carried to the Discount Register, through which it enters the ledgers. A record of the discounted paper must also be carried to the Domestic Ticklers, if payable at home, or to the Domestic-exchange Book, if sent away for collection.
The Deposit Journal is not as universally used as the General Ledger, the Tickler or Discount Register. It is used in many country banks, and helps to simplify and abridge the entries in the General Journal. One side of the book shows the work of the paying teller, and the other that of the receiving teller, coupled with the records of certificates of deposit issued. Certificates of deposit are sometimes issued by one official and sometimes by another. In some country banks the cashier is also paying-teller and receiving teller, i. e., he performs the duties of both, and may be also the bookkeeper, note teller and discount clerk. We do not refer to the functions of the various departments of service with the idea that the various duties must be performed by one and the same person. If the one person acts as both paying and receiving tellers the Deposit Journal becomes a mere cash-book for recording a special line of transactions.
The Deposit Journal.
Besides the books described, there may also be named several records or registers, such as the Certificate of Deposit Register and Draft Register. These are simple forms, and require no special explanation upon their formular arrangement nor instruction upon their use. The former is a mere record of the certificates of deposit: when issued, to whom, the amount, and when paid. The latter furnishes information as to the drafts or bills drawn on corresponding banks, date, in whose favor, on whom drawn, and amount.
Note.—For explanation of "Depositors' Balance Ledger," see pages 112, 113. Figures in italics represent balances, which are carried forward in pencil.