As has been said, this asset represents funds of the bank on deposit with a New York correspondent. Let us illustrate by a transaction which increases that balance. Suppose this bank (meaning the bank whose trial balance is being explained) sends to the Tenth National Bank a cash remittance letter containing items drawn on other New York banks. The total checks enclosed amount to $20,000. The general ledger entries made to cover this remittance would be:

Numerous other transactions could be given to show increases in the balance of the account with the New York Bank, but the entries would be the same excepting that items sent for collection would be charged only after the advice of payment was received.