Object. - The purpose of bank bookkeeping is to set forth first, what assets are in the possession of the bank; and second, to whom these assets ultimately belong. The form of record is of secondary importance. In a small bank, only one set of books is needed, but as the bank grows, these books are divided and subdivided. However, all the books are parts of the general books.

This set is designed to illustrate in as brief a way as possible the practical workings of an ordinary national bank. In order to get at the work directly, the various books are opened from statements showing the condition of a bank that is in operation. To open a bank and gradually bring it to a well-organized and paying institution would be a long, unnecessary process.

In order to illustrate the closing entries in bank accounting, statements are made and dividends declared March 3.

Books used. - The books used in this set are: general balance ledger, individual ledger, discount register, discount tickler, collection register, collection tickler, draft register, remittance register, certified check book, general cash book, and paying and receiving tellers' check sheets.

Auxiliary Books. - The auxiliary books and records necessary in the organization of a national bank are essentially the same as those of any other joint-stock company or corporation. These books may be briefly referred to as follows:

1. Subscription Book, made up of a record of the names of the persons subscribing for stock and the number of shares wanted.

2. Stock Certificate Book, containing the receipts showing the number of shares delivered to each stockholder.

3. Installment Book, in which are written the names of the stockholders and the amount paid by each.

4. Transfer Book, in which is written a history of the certificates canceled and of the new ones issued.

5. Stock Ledger, showing the amount of capital stock and the balance to the credit of each stockholder.

6. Minute Book, in which are recorded the proceedings of the board of directors.

7. Dividend Book, in which are recorded the names of the stockholders, the number of shares owned, the amount of their dividends at various dividend periods, and receipts for the payment of dividends.

Classified Work. - The work of the set is so classified that the student is made to see the principal duties devolving upon the various officers and clerks in the daily routine of recording the transactions of the bank. This classification gives the student practice in the performance of the chief duties of:

1. Paying teller.

2. Receiving teller.

3. Note teller.

4. Discount clerk.

5. Collection clerk.

6. Correspondence or transit clerk.

7. Individual bookkeeper.

8. General bookkeeper.

9. Cashier.

General Directions and Suggestions. - In this set Commercial National Bank is the name under which the banking association is incorporated. The location is Boston, Mass.

The student is about to familiarize himself with the details of an ordinary national banking institution, and he will be carefully instructed as to the duties of the various officers and clerks by:

1. Being allowed to examine carefully the present condition of the books used.

2. Being specifically instructed as to the powers, responsibilities, and general duties of the various officers and clerks.

3. Being allowed to make further entries in the various books during the progress of each day's business.