This section is from the "Practical Banking" book, by Albert S. Bolles.
The depositor's pass-book is a small account book. Upon the left-hand page, or debit side, the deposits are entered; the right-hand, or credit pages are used to enter up the checks of the depositor. It is the bookkeeper's duty to write up and balance the depositor's pass-book when left at the bank for that purpose. The depositor's account in the bank's ledger furnishes the data for writing up the pass-book. In the ledger account, however, the deposits which, in the pass-book, appear on the debit side are entered on the credit side. The checks are entered on the debit side of the ledger account. The reason of this transposition is, that the pass-book represents the depositor's account with the bank, while the bank's ledger shows the bank's account with the depositor.
The Arctic National Bank in Account Dr.
with Richard Whittington.
3 • • • • 4 • • • •
1,324 05 208 40
12 Vouchers returned.
175 20 96050
2,100 137 10
The letters opposite the dates on the debit page are the initials of the teller who received the deposit. On the credit page are several columns in which the amounts of the checks or vouchers are entered. These checks are returned with the pass-book to the depositor. The balance, after having been added to the footings of the checks, is carried to the debit of the account preparatory to continuing the transactions.