Checks On Clearing House Banks (12)
Description
This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
Checks On Clearing House Banks (12)
Assuming that $24,000 clearing house checks have been taken in by the receiving teller, the entries on the general ledger reflecting these items will be as follows:
Debit: Checks on Clearing House Banks (12)................... | $24,000 | |
Credit: Due to Depositors (37)... | $24,000 |
On the day following these entries the reversing entries are:
Debit: Cash (11).................. | $24,000 | |
or | ||
Debit: On Reserve at Federal Reserve Bank (10)...................... | $24,000 | |
Credit: Checks on Clearing House Banks (12)................... | $24,000 |
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