9. The Ledger

It is the rule in most banks that no entries shall be made in any ledger by any officer other than the accredited ledger-keeper. All entries are made from:

(a) Checks, acceptances, drafts, notes, etc., of customers.

(b) Deposit slips initialed by the teller.

(c) Debit slips for items charged up, etc., initialed by the manager or accountant.

The rules regarding loose-leaf ledgers should be carefully followed both as regards the current account ledgers and savings bank ledgers.1 The ledger-keeper should watch out carefully for customers having the same or similar names, as there is always the danger of a mistake occurring between the two accounts. In such case it is advisable to put a warning notation on the account, as well as in the index, so as to attract the attention of any one looking up the account. All indexing should be carefully checked.

1 See Section 3, Chapter IV (The Bank Act (Continued)) (Branch Books And Records. 1. Bank Accounting).

THE CANADIAN BANK OF COMMERCE

CREDIT

DEPOSITED BY

OF 191

X 1 =-

X 2 =

X 4 =

X 5 =

X 10 =

X 20 =

X 50 =

X 100 =

$

$

Figure 33

THE CANADIAN BANK. OF COMMERCE

SAVINGS BANK DEPARTMENT

Account No,___

For Credit of

Occupation

Address --------------------------------------------------------------------.

191

x 1 =

x 2 =

X 4 =

X 5 =

X 10 =

X 20 =

X 50 =

X 100 =

Silver

Checks

$

Figure 34

10. Deposit Slips

The usual form of deposit slip is shown in Figures 33 and 34. The deposit slip after being checked, stamped and initialed by the teller should be handed by him direct to the ledger-keeper. The latter should see that each slip has been initialed and stamped by the teller; he should then post the credit in the ledger and enter the amount in the customer's pass-book, initialing the entry. At the same time he should enter in the pass-book all checks which have been charged to the account since the book was last presented and insert the correct balance according to the ledger. No blank lines should be left between the entries, or between the entries and additions of the debit and credit columns.

The teller should not, when he has received a deposit, return the deposit slip to the customer, that he may hand it to the ledger-keeper for entry or for any other reason. To do so would, obviously, be dangerous.

11. Money Received After Hours

Frequently money is received by the teller too late in the afternoon to be entered on the books on that day. In that case it is the usual rule to require the teller to enter it in his blotter for the following day and hand the deposit slip, after initialing, to the accountant, who will have it, if a customer's deposit, entered in the ledger at once. This practice is followed in order that no deposit may remain overnight unrecorded and entirely in the hands of one officer.

12. Customers' Pass-Books

The teller should not make any entry in the pass-books of customers, or in any of the books of the bank other than his blotter and balance book.

Pass-books are collected from customers at the end of each month in order to be written up and balanced on the last day of the month. The work is usually done on the evening of the last day of the month, when the entire staff, with the exception of the teller, assists with the work in order that the pass-books may be ready for the customers the following morning. Altho the teller takes no part in writing up and balancing customers' pass-books, he may assist in comparing the checks with the entries in the hooks after they are balanced. The manager or accountant, provided the latter does not also act as teller or ledger-keeper, afterward compares the balances in the passbooks with the corresponding balances in the ledger, attesting the comparison by placing his initials opposite the balance in the ledger, and against the balance carried forward in the pass-book.

13. Customers' Certification Of Accounts

Each balanced pass-book when delivered to a customer should be accompanied by a certificate (Figure 35), stating the amount of the balance and the number of checks returned. The checks may be returned at the same time if the customer or his attorney is prepared to compare these with the pass-book and sign the certificate at the bank counter; otherwise the certificate should be signed and returned to the bank before the checks are surrendered.

The................................... Bank. .........................191...

The undersigned hereby agrees with the..........................

Bank that at the close of business on the......................day of........................the balance of the accounts and dealings between the undersigned and the Bank is the sum of................

Dollars in favor of the

Bank.

100

undersigned.

And in consideration of the account of the undersigned as a customer of the Bank being not now closed, and subject to the correction of clerical errors (if any), the Bank is hereby released from all claims by the undersigned in connection with the charges or credits in said accounts and dealings up to said day.

The undersigned hereby acknowledges receipt of the checks charged in said accounts.

N.B. - This receipt must be signed by the Customer or his Attorney.

FtgURe 35 Pass Book Certificate

In the case of out-of-town customers, receipts (Figure 36) should be obtained before the checks are surrendered. It may be necessary to make exceptions in special cases, when vouchers should be carefullly

......................191...

RECEIVED from The.........................Bank pass-book and...................................checks and vouchers for amounts charged to my/our account in the books of the said Bank during the month of ..........................last.

Figure 36

Insert the number of checks in words - not figures.

compared with the pass-book or copy of the customer's account by a second officer before being mailed, so that in event of a loss in transit or of a dispute with a customer, the bank may be able to prove that the vouchers were dispatched. In every case in which checks are sent out before the receipt is obtained they should be sent by registered mail. After being signed the certificates should be checked with the ledger by the manager or accountant, who should place his initials and the number of the vouchers opposite each balance in the ledger.

As this certificate is equivalent to an adjustment of the account between the bank and its customer, it is very important that as few balances as possible remain uncertified.