The Trial Balance
Description
This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
The Trial Balance
A trial balance is a statement in summary form of the debit and credit balances of the accounts on the general ledger. The following items in the trial balance of the Institute National Bank may be found in most commercial bank trial balances:
Trial Balance Of The General Ledger Of The Institute National Bank As Of The Close Of Business, June 30, 1922 | ||
1. | Loans .......................................................... | $1,925,000 |
2. | Bills Discounted................... | 950,000 |
3. | Past Due Paper.................... | 10,000 |
4. | U. S. Government Securities......... | 200,000 |
5. | U. S. Government Securities Deposited to Secure Circulation ........................... | 200,000 |
6. | U. S. Government Securities Pledged to Secure Postal Savings Deposits.. | 90,000 |
7. | Securities Other than U. S. Bonds.... | 125,000 |
8. | Other Bonds Pledged to Secure U. S. Deposits ................................................... | 10,000 |
9. | Federal Reserve Bank Stock......... | 15,000 |
10. | Reserve at Federal Reserve Bank..... | 300,000 |
11. | Cash .............................. | 75,000 |
12. | 24,000 | |
13. | Checks on Non-Member Clearing House Banks.................... | 14,000 |
14. | Cash Items ................................................. | 2,000 |
15. | National Bank Notes on Hand....... | 10,000 |
16. | Accounts Receivable ............... | 500 |
17. | Internal Revenue Stamps......... | 500 |
18. | Due from Tenth National Bank, New York............................ | 50,000 |
19. | Five Per Cent Redemption Fund...... | 10,000 |
20. | Due from Federal Reserve Bank-Collection Account.................. | 75,000 |
21. | Due from Other Banks-Collection Account ........................... | 50,000 |
22. | Expense........................... | 5,000 |
23. | Interest Paid on Deposits........... | 6,000 |
24. | Banking House and Lot............ | 50,000 |
$4,197,000 |
Credit Balances | ||
25. | Capital Stock...................... | $ 250,000 |
26. | Surplus .................................................... | 250,000 |
27. | Undivided Profits.................. | 10,600 |
28. | Domestic Exchange.............. | 500 |
29. | Commissions Collected .......................... | 1,000 |
30. | Interest on Loans .................................. | 19,000 |
31. | Discount ................................................... | 6,000 |
32. | Interest on Investments ......................... | 3,000 |
33. | Bond Profits .............................................. | 500 |
34. | Reserve for Taxes .................................. | 12,600 |
35. | 3,000 | |
36. | Circulating Notes Outstanding...... | 200,000 |
37. | Due to Depositors (including banks) .... | 2,812,300 |
38. | Certified Checks Outstanding........ | 10,000 |
39. | Cashier's Checks Outstanding....... | 12,000 |
40. | 3,000 | |
41. | Dividends Payable................. | 8,000 |
42. | Time Certificates of Deposit......... | 5,000 |
43. | Time Deposits................ | 500,000 |
44. | Postal Savings Deposits............ | 90,000 |
45. | Overs and Shorts.................. | 500 |
$4,197,000 |
The above is not a complete list. Special items which appear on the books of many banks are dealt with in a subsequent chapter. A savings bank statement, especially if it is a mutual savings bank, would show an entirely different condition. Assets would be principally of two kinds, bonds and similar investments, and first mortgage real estate loans. There would not be a great deal of cash on hand nor would there be much on deposit in other banks. The liabilities would be practically all to depositors with the exception of a reserve or surplus fund which would belong to the depositors pro rata if the bank were to be liquidated.
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