A transaction showing the increase of National bank notes on hand is illustrated as follows: After the deposit of $200,000 of Liberty Bonds, for instance, the Comptroller of the Currency sends the equivalent in notes to the bank. Ignoring at this time the bond entry, which has been dealt with previously, the general ledger entries for the notes received are:

Debit: National Bank Notes on Hand (15) ..................

$200,000

Credit: Circulating Notes Outstanding (4) ................

$200,000

When notes are paid out or placed in tills with other cash for the purpose, the general ledger entries are:

Debit: Due to Depositors (37)

$200,000

or

Debit: Cash (11)................

200,000

Credit: National Bank Notes on Hand (15)..................

$200,000

Auxiliary records of these notes are kept not only by the teller but in the larger banks by the general bookkeeper and by the auditor.