This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
These likewise are numerous, but some of the recurring ones are as follows:
1. An excess of Incoming Clearings - The receipt back from the clearing house of a larger amount than is sent would cause a decrease in the reserve. Suppose $200,000 checks are sent and $215,000 are brought back from the clearing house. The general ledger entries in brief resulting from such a situation would be:
Debit: Due to Depositors (37)..... | $215,000 | |
Credit: Reserve at Federal Reserve Bank (10) ................... | $15,000 | |
Credit: Due to Depositors (37)... | 176,000 | |
Credit: Checks on Clearing House Banks (12) .................. | 24,000 |
2. A Money Transfer - Suppose a correspondent of the bank directs it to make a payment of $200,000 through the Federal Reserve bank to another bank in some other city. The general ledger entries resulting from that would be:
Debit: Due to Depositors (37).... | $200,000 | |
Credit: Reserve at Federal Reserve Bank (10)............. | $200,000 |
3. A Withdrawal of Funds - To illustrate: A member bank requests $15,000 of currency from the Federal Reserve bank for the day's transactions. The general ledger entries would be:
Debit: Cash (11).................. | $15,000 | |
Credit: Reserve at Federal Reserve Bank (10).................... | $15,000 |
 
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