With the increase in popularity of branch banks, inter-branch bank bookkeeping has become more important. There is nothing very complicated about it. As was explained for the foreign department, when it is handled on a branch bank basis, there are on all branch bank general ledgers, head office contact accounts, on the debit side an account called due from head office and on the credit side one entitled due to head office. On the head office books there are similar accounts, namely, due to and due from branches. Reports of condition or trial balances are sent by the branches to the head office each day so that a consolidated condition report may be made up showing the condition of the bank on the whole, irrespective of head office or branch. In the consolidated report, inter-branch accounts are, of course, eliminated. Branches engaging in transactions with each other debit and credit each other just as though there were no corporate relationship between them; for example: If branch A sends cash to branch B, the entries on A's books would be:

Debit: Due from B Credit: Cash

The entries on B's books covering the transaction would be:

Debit: Cash

Credit: Due to A

The head office keeps an auxiliary record of each day's transactions with each branch so as to locate any differences which may arise, and for the purpose of checking out inter-branch transactions.