Books And Records. Part 3
Description
This section is from the book "Banking Practice And Foreign Exchange", by Howard McNayr Jefferson. Also available from Amazon: Banking Practice And Foreign Exchange.
Books And Records. Part 3
31. Accounts Of A Trust Company
The necessary accounts for a New York trust company are quite similar to those needed on the general ledger of a New York bank with the following modifications: "Bills purchased" will take the place of "discounts" and "interest received from bills purchased" that of "discount received." "Court and trust funds" will appear as a liability in addition to those mentioned for a bank. A "commission account" will be an essential credit account. "Certificates of deposit" should be separated into demand and time and a suitable subsidiary record kept to show the time certificates not payable within thirty days. The total of these thirty-day certificates may be deducted from the gross deposits when figuring required reserve, provided the due date is duly mentioned on the certificate.
32. Daily Statement
Whatever style of ledger is used, it will be found worth while to have a daily statement book for ready reference. There are many forms in use. A favorite form is shown in Figure 8 on page 41. Note the grouping of earning and expense accounts. Another form is shown in Figure 9 on page 42. The advantage of this record is that its compactness makes it possible to have a record for many years in a volume of small dimensions. If the accounts are well arranged on the daily statement the officers will be able to tell at a glance what the answer ought to be to some of the numerous questions regarding loans, investments, reserves, etc.
33. Accounts With Banks
A bank or trust company which has but few accounts with other banks on each side of its ledger will find it convenient to carry these accounts on the general ledger. If they are numerous it will be found much better to carry them in a subsidiary ledger and only the debit and credit controlling accounts on the general ledger.
34. Controlling Accounts
A controlling account is an account on a ledger representing the total of a number of accounts in a subsidiary ledger. It is charged with the summary of all the debits made to the various accounts on its subsidiary ledger and credited with the summary of all the credits. For example - individual deposits, on the general ledger, is the controlling account for the individual ledger.
Resources: | Liabilities: | ||||||||
Loans-Demand, | Capital, | ||||||||
Loans-Time, | Surplus, | ||||||||
Bills Purchased, | Undivided Profits, | ||||||||
Rents Receivable, | |||||||||
Investments: | Profit and Loss, | ||||||||
Bonds and Mortgages, | Interest, | ||||||||
N.Y.City Bds Cap.Invst. | Commissions, | ||||||||
N. Y. City Bonds, | Exchange, | ||||||||
Sundry Bonds, | |||||||||
Stocks, | |||||||||
N. Y. State Bonds | |||||||||
Expense Accts: | |||||||||
Deposits: | |||||||||
Rent, | Individual Ledgers, | ||||||||
Expense, | Trust Ledger, | ||||||||
Salaries, | Certificates of Deposit | ||||||||
Taxes, | |||||||||
Furniture & Fixtures, | |||||||||
Building Improvement, | |||||||||
Cash: | |||||||||
Merchants' Nat. Bank, | |||||||||
New York Trust Co., | |||||||||
Greenwich Bank, | |||||||||
1st National Bank, | |||||||||
Currency, | |||||||||
Treasurer U. S., | |||||||||
Collection Banks, | |||||||||
Cash Items, | |||||||||
Collection Items, | |||||||||
Figure 8. Daily Statement.
Comparative Daily Statement
Assets | June 1, 1909 | June 2, 1909 | |||||||||||||
Total | |||||||||||||||
Liabilities | June 1, 1909 | June 2, 1909 | |||||||||||||
. | |||||||||||||||
Total | |||||||||||||||
Figure 9. Comparative Daily Statement.
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