Separate Reports Made By General Bookkeeper
Description
This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
Separate Reports Made By General Bookkeeper
The general bookkeeper's functions are highly important and varied. In addition to posting and proving his ledger and taking off the daily trial balance, he must determine the adequacy of the bank's reserve. Federal Reserve banks provide member banks with a form to be used in computing reserve. This form is substantially as follows:
Net Demand Deposits | |
1. Deposits payable within thirty days, not including | |
(a) U. S. Government deposits | |
. | |
$...... |
2. Balance due to banks other than Federal Reserve banks | $...... | |
3. Cashier's checks outstanding | $...... | |
4. Certified checks outstanding | $...... | |
Total | $...... | |
Less | ||
Deductions of the following items permitted only from the total of items 2, 3 and 4. Should the total of items 5, 6, 7 and 8 exceed the total of items 2, 3 and 4, both groups must be omitted from the calculation. | ||
5. Balances due from banks other than Federal Reserve banks | $...... | |
6. Items with Federal Reserve bank in process of collection | $...... | |
7. Exchanges for clearing house | $...... | |
8. Checks on other banks in the same place | $...... |
Total deduction (Items 5, 6, 7 and 8) | $...... | |
9. Net balance due to banks | $...... | |
10. Total net demand deposits (Items 1 and 9) | $...... |
11. Savings accounts (subject to not less than thirty days.' notice before payment) | $...... | |
12. Certificates of deposit (subject to not less than thirty days' notice before payment) | $...... | |
13. Other deposits payable only after thirty days | $...... | |
$...... | ||
15. Total time deposits (Items 11, 12, 13 and 14) | $...... |
The reserve is computed on the basis of items 10 and 15. Depending upon whether country, reserve city, or central reserve city bank, the percentage of reserve required for demand deposits is 7, 10, or 13. The percentage of reserve required on time deposits is 3%. Having ascertained the total of each of these deposits and the reserve required on them, the total figure obtained should be compared with the reserve shown to be on hand in the account due from Reserve bank. Member banks are taxed on their deficiency of reserve.
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