30. Accounts To Be Found On The General Ledger

The accounts to be found on a general ledger ought to be such as will enable the bookkeeper to draw off the various statements required by the federal or state officials, the clearing house, and the officers. In a national bank the following accounts should appear as nearly in the order named as convenient:

Figure 7. Two-Column Boston Ledger.

Resources. Demand loans. Time loans. Discounts.

United States bonds to secure circulation. United States bonds to secure United States deposits. United States bonds on hand. Bonds and stocks. Banking house and lot. Furniture and fixtures. Due from approved reserve agents. Due from other banks, bankers and trust companies. Cash.

Redemption fund with United States Treasurer. Expense account. Taxes.

Rent (if building not owned). Salary (if desired). Interest paid. Exchange paid.

Liabilities. Capital. Surplus.

Undivided profits or profit and loss. National bank notes outstanding. Due to banks, bankers and trust companies. Dividends. Individual deposits. Demand certificates of deposit. Time certificates of deposit. Certified checks. Cashier's checks. United States deposits. Interest received on loans.

Interest received on investments. Discount received. Exchange received.

It is a very good idea to keep a separate account for each kind of bond owned, if the list is not too long, in which case it is better to have a single account and subsidiary records to show complete information regarding the bonds owned.1

The paying teller's record will furnish an analysis of the cash showing amount of gold certificates, legal tender notes, silver certificates, treasury notes, notes of other national banks, gold, silver, minor coin, items for exchanges and other items carried as cash. One account "cash" will therefore be all that is necessary to carry on the general ledger.

Many banks carry but one interest account, crediting it with all interest received, whether from loans, bonds or whatever source, and charging the account with all interest paid. It will be found worth while to keep separate accounts for "interest paid," "interest received on loans," and "interest received on investments."

A separate account should be kept for each dividend.

If there are several individual ledgers, an account should be maintained for each one on the general ledger.

Not quite so many accounts are necessary in the general ledgers of a state bank in New York. The following will be found sufficient:

Resources.

Demand loans. Time loans. Discounts.

1 See section 65 for a full description of such a subsidiary record.

Bonds and stocks.

Mortgages owned.

Banking house and lot.

Furniture and fixtures.

Other real estate.

Due from approved reserve agents.

Due from other banks, bankers and trust companies.

Cash.

Expense account.

Taxes.

Rent (if building not owned).

Interest paid.

Exchange paid.

Liabilities.

Capital.

Surplus.

Profit and loss.

Due to banks, bankers and trust companies.

Individual deposits.

Certificates of deposits.

Certified checks.

Cashier's checks.

Interest received on loans.

Interest received on investments.

Interest received on mortgages.

Discount received.

Exchange received.