Balancing The Ledger

To balance the collateral ledger the balances shown in all the accounts are taken down and added. The total should agree with the balance shown at credit of collateral accounts in the general ledger.

At the end of every day, or on balance days, cash book entries are made for the collaterals received, and for those surrendered or paid. The account, "Collateral notes on hand," is debited with the total of the notes lodged, and "Collateral accounts" is credited with the same amount. The total of all notes surrendered and paid is, in the same way, debited to collateral accounts and credited to collateral notes on hand. The account, "Collateral notes on hand," is run the same as is the cash account; it is debited with the receipts or income, and credited with the outgo