41. Daily Balance

It is possible to balance the books daily. A single columnarized sheet is used, and the columns headed as per Figure 19 on page 57. The numbers of the accounts in which action has occurred during the day are listed in the proper columns. A clerk then goes to the ledger with the numbered sheet, after the postings have all been made and records the balances as indicated in the second and third columns as they appear on the ledger. The difference between the sums of these two columns of balances should agree with the difference between the deposits and withdrawals for the day.

42. Ledger Proving

Proving the ledgers is no small task in a large bank and this is done usually at the periods when interest is to be credited, so as to check the interest calculations. The rules of a large New York city savings bank regarding interest are as follows:

On the third Monday of January and July of every year there shall be paid such interest as the trustees may determine at the stated meeting in December and June; on all sums on deposit for six months previous to January 1st and July 1st, six months interest and no more; on other sums, on deposit for three months or more prior to either of those days, three months interest and no more.

No interest will be allowed on sums drawn between those days;

Books And Records nor on sums less than five dollars; nor on the fractional parts of a dollar.

The interest accrued and entered to the credit of the depositors on the 1st day of January and July shall be added to the principal from those days respectively, the same as if an original deposit, or will be paid on and after the third Mondays of those months.

The balances as of the close of business December 31 and June 30 are taken off on sheets, similar to the one shown in Figure 20 on page 57. The interest is calculated on these sheets and on the ledgers and the two compared. These sheets should have a convenient number of lines to a page, so that the number of accounts may be determined in order to comply with the law in reporting to the superintendent of banks. The law requires, inter alia, that the bank report The number of accounts opened or re-opened, the number closed during the year and the number of open accounts at the end of the year.

It is customary to carry controlling accounts on the general ledger, or on a memorandum record, for each thousand accounts, or each ledger, so that any differences may be narrowed down to as few accounts as possible.

43. Semi-Annual Interest

The interest is usually entered in red ink on the ledgers, so that it may be readily distinguished from regular deposits. The entry is usually dated with a small rubber stamp, indicating the period covered by the interest credit. After the interest has been credited to all the accounts on the ledgers and proved with the interest as calculated on the proof sheets, it is ready to be entered on the pass books, as they are presented, or paid to the depositors as demanded. The books are handed to the bookkeepers and by them returned to the depositors, if no payment is made. If the interest is withdrawn, the books are usually presented to the bookkeepers to have the interest entered and then to the tellers for payment, in the usual way. It is sometimes hard to convince savings bank depositors that the interest credited to their account will accumulate interest as a deposit, and they insist upon withdrawing the interest and re-depositing it. It is better to humor a whim of this kind than to allow so simple-minded a person to get the impression that the bank is trying to get the best of him in interest.

Figure 21. Savings Bank Ledger.

Figure 22. Signature Card.

Signature And Identification Card. Actual Size

Index Card Actual Size

Figure 23. Index To Accounts.

Figure 24. Card Ledger.