Previously these were explained as deposits of the trustees of the Postal Savings System, and as has been previously stated, collateral is pledged to secure their repayment. The general ledger entries setting up such deposits are as follows:

Debit: Cash (11) or Debit: Reserve at Reserve Bank (10) Credit: Postal Savings Deposits (44)

When deposits are withdrawn the collateral to them also may be withdrawn. The entries to record those transactions are simply the reverse of those already given. An auxiliary record similar to that explained under time certificates of deposit might well be used for these postal savings deposits showing simply under debit, credit, and balance columns the deposits and withdrawals by date, and also interest credits.