Dual Control Of Treasury Cash

One rule enforced by all well-regulated banks is that the treasury cash and other valuables of the branch shall be under the dual charge of manager and accountant, both being responsible for their safekeeping. In all the branch safes there are at least two compartments-one for the teller's cash, the other for the treasury cash and valuables. It is invariably provided that the manager and accountant shall have a joint control over the treasury compartment.

It has two locks, with a particular key, or a combination, for each lock. When anything is put in or taken from the treasury, the rule says that both officers shall attend in person, the intention being that neither shall have the opportunity of tampering with the contents without the cognizance of the other.

Importance Of Observing Rules

There is no doubt whatever that the strict carrying out of the spirit of this rule is in the best interest of manager and accountant alike, no matter how much confidence one has in the other. The right course, and the only safe course for the accountant to pursue, is to insist on properly performing his duty in this matter in every instance. And a wise manager studiously avoids expeditions to the safe alone, even if his accountant be easy-going enough to suffer it.

The point for the accountant to bear in mind is that the faithful observance of the rules on his part will, perhaps, deter his manager from attempts at defrauding the bank; and if it by any means happened that the manager succeeded in a fraudulent scheme in spite of the watchful regularity of his accountant, the latter would be secure in his position, and his prospects would not be damaged, when the inevitable expose occurred.

On the other hand, should the accountant have performed his duty loosely and negligently, and loss by defalcation of the manager was thereby made possible, the bank would certainly hold him responsible for any irregularity. His position would be forfeited, and he might be obliged to make good the loss, so far as his means permitted.

Care Of General Ledger

The general ledger, or ledger of general accounts, one of the most important books at all branches, is in charge of the accountant. It is posted every day from the cash book; the accounts contained are those necessary to show the position of the branch with regard to all the various parts of its business. Deposits, loans, trade bills, cash, accounts with other branches and other banks, the items of the profits and expenses, are all shown through the medium of the general ledger accounts. The posting of it is a simple matter. The headings of accounts are plainly shown in the cash book - and they are not very numerous. To balance, it is necessary that the total of the debit balances agree with the total of the credit balances. When they are all taken down and balanced, the result is the balance sheet of the branch.

The Entries From The Letters

Another duty of the accountant is to make the entries from the letters. These are opened by the manager, who hands them over to the accountant after perusing them. The latter takes out the cheques, drafts, and other items not requiring to go through the collection, discount, or collateral registers, and makes the entries for them. There will be deposits sent by mail, settlements for remitted bills and cheques, and various other things. The accountant makes out the entries in sets, so that the teller can easily trace his debits and credits.

For example, in the case of a bank draft for $99.87, sent in settlement of a remitted collection, the draft itself would be the debit entry. The credit entry would be: "Credit John Jones (with particulars of the collection note) $99.75. Credit commission account, .12." The three would constitute a set, the one debit balancing the two credits. On completion, the entries are handed to the teller.