This section is from the "Practical Banking" book, by Albert S. Bolles.
Form of Credit Journal.
Washington, January 2, 1885.
Form of Debit Journal.
(5.) Sold drafts on Nat. Park, New York, as follows: C. Goodnow, $4,000, ch. $10; J. Peters, $1,600, exch. $ 4 ; F. Brokaw, $1,256, exch. $3.14; R. Albert, $320, exch. 80c. (See C. J.) Rec'd in payment, Goodnow's c'k on Second Wash'n, $4,010; Peters' c'k on do., $1,000, balance cash; F. Brokaw's c'k on us, $1,259.14. (See D. J. and Depositors' Ledger, d'ft to
Albert paid in cash.) (6.) Discounted notes for P. Fisher, $4,000; Amos Smith, $3,000; F. Hill, $2,500. Total, $9,500. (See D. J., general col. from Discount Register ; also C. J. deposits, and col. and exch. from Discount Register.) Note.—The original entries of these transactions would be those in the Discount Register. The transactions then find their way to the Ledger through the Debit and Credit Journals.
7.) Paid checks of Swift, Loveland, Smith and Adams. (See Debit Journal, deposits col.)
The purposes served by the Discount Register are what, in a mercantile business, would be found in the use of a Bill-book. The formular arrangement of the Register is somewhat more extensive than that of the Bill-book, as the information desired by a bank covers a broader field than that sought by a commercial, house. In this book are recorded, in the order of discount, the notes which become the property of the bank. The names of the drawer or endorser appear first, and then come those of drawee or maker. Following these are columns for information as to where the note is payable, the time specified on its face, date when due, and time it is to run for which discount is charged.
April 5 . March 6..
63 93 63
3,979 2,953 50 2,467 50
P. Fisher.... Amos Smith. F. Hill
The amount of the note is sometimes classified under two headings, as seen in the illustration, viz., "Bills discounted " and " Domestic exchange," and sometimes it is entered under one heading, as "Amount" or "Face." When the two columns are used, the first embraces the notes payable at home, or in the place where the bank is located, and the latter those payable at other places. A column is provided for "Interest," another for" Collection and Exchange," and one also for "Proceeds." Finally the name appears to whom the proceeds are credited, and a narrow column is added for the "check" which is made as the items are posted.
There are many forms of this book in use, some less and some more elaborate than the one we have given. Some banks treat all notes discounted under the one general title of "Bills Receivable," and use as a record only the simplest form of a bill-book. In many banks a large number of books are used which the experience and skill of progressive accountants have demonstrated are not really essential. There is a growing tendency among bank accountants to dispense with every book not absolutely necessary, and to abridge the bookkeeping in every way possible. This is a commendable spirit of reform, but care should be taken that the abridgement is not carried to excess, lest grave inaccuracies creep in through the lack of proper checks and proofs.