The principal books in this department are the following :-
1. Two Waste-Books.-One is called the Received-Waste-Book, and the other the Paid-Waste-Book. In the former is entered an account of all the cash received, and in the latter is entered an account of all the cheques and bills paid. The Beceived-Waste-Book is ruled with a double cash column on the right-hand side of the page. In making an entry into this book, you will proceed as follows :-First, enter the name of the party who lodges the money; then enter in the first cash column the particulars of which the credit consists, specifying each particular in the space at the left-hand. In receiving Bank of England notes, the number and date of each note must be mentioned; but if the notes are numerous, make them up in a parcel, and write on the outside the total amount, and the name of the party of whom they were received. Call this parcel "Sundries" in your entry. These parcels of sundries will be marked, and sent to the
Bank of England for other notes on the following day. Cheques on your own bank are to be entered by the name of the drawer and the amount. Country notes are to be entered by the name of the London banker at whose house they are made payable. These are distinguished from cheques upon bankers, by stating short the number and denomination of the notes-thus, 1/10, 2/5. All gold and silver are to be called money. After entering all the particulars of a credit, add them together, and carry out the amount into the farther cash column. At the close of the day add up this outer column, and see that the total agrees with the amount in the Day-Book.
If a customer brings his book with him when he lodges cash, the cashier enters the credit, and returns the book to him, unless it be left at the bank for the purpose of having the debit side also written up.
In receiving money for a deposit receipt, the entry is made in the same way as when the money is placed to a current account; but the words Deposit Receipt, or the letters D. R., are written against the name of the depositor.
In the Paid-Waste-Book is entered an account of all the bills and cheques paid by the bank. This book is ruled on each page "with a cash column on the right hand, and another on the left hand, leaving a space between. "When a cheque is paid, the amount is placed in the left-hand cash column-then the name of the drawer in the open space-and in the right-hand cash column are entered the particulars of the payment. Bank of England notes are entered by their number. It is not necessary to enter the date, as that can be found if necessary either in the Cash-Book of the preceding evening, or in the Received-TV Book, or the Lists of the same day. When a deposit receipt is paid, the same order is observed, but the letters
D. R. are added. All gold, silver, and copper are called money. At the close of the day, all the payments are added together, and should agree with the amount in the Day-Book.
Each cashier has a Received-Waste-Book, a Paid- Waste-Book, and a Money-Book.
2. Money-Book.-This is a small book ruled with a cash column on the right-hand side of each page, and it contains an account of all the coin, that is, the gold, silver, and copper in the bank. Each cashier will enter in his own Money-Book the money he receives and pays in the course of the day. On the left-hand page of the book he will copy from his Paid-Waste-Book the various sums of money he has paid, and on the right-hand page he will copy from his Received-Waste-Book the various sums of money he has received. In each case he will enter against the respective sums the totals in which they are included. Thus, if in paying a cheque of £175 2s. 6d., he pay 5-2-6 money, he-will enter it thus-".£175 2. 6. £5-2-6." The money is counted up at night, and must agree with the balance of the Money-Book; and this balance is then entered in the Cash-Book.
3. Cash-Book.-In this book is entered every night a specification of all the cash in the bank. The items will consist chiefly of Bank of England notes, parcels of sundries, country notes, cheques on other banks, and the balance of the money. The Bank of England notes are entered by their number, date, and amount. The parcels of Bank of England notes, called sundries, are entered by the word "Sundries," then the name of the parties of whom they were received, and the amounts; country notes by the name of the country bank, and the London agent at whose house they are made payable; cheques on other banks by the name of the drawer of the cheque, the name of the banker, and the amount. In this book generally the cash articles are more fully described than in the Received-Waste-Book. In some banking-houses the Cash-Book is called the Stock-Book, and in others the Make-rp-BooK.
4. Day-Book.-This book is ruled with a double cash column at the right-hand side of each page. The accountant enters in the Day-Book an account of all cash paid and received during the day, placing each transaction under the class of operations or accounts to which it belongs. On the left-hand page of the book he enters the cash which is paid, and on the right-hand side the cash which is received. He commences by writing the day of the week and of the month : then on the left-hand side he writes a heading, "Current Accounts." Under this head he enters all the cheques paid, copying from the cheques the name of the drawer and the amount, which are placed in the first cash column. The sum of all the cheques is brought forward into the second cash column. The second heading is "Deposit Receipts;" under which head the individual receipts paid are entered, mentioning the number, the name of the depositor, and the sum; and bringing out the total amount, as before, into the second cash column.
The accountant may, if he please, make these headings in the morning, leaving such a space for the transactions under each head as his experience may show him to be necessary. Thus he may keep up his Day-Book throughout the day, and merely have to add it up and balance it when the bank closes. The other headings may be, " Bills Discounted this day," "Interest paid on Deposit Receipts," "Bank Premises," "Incidental Expenses," "Branch Accounts," etc, etc, answering to the accounts in the General Ledger.
On the right-hand page, or credit side of the Day-Book, the cash received is entered under corresponding headings, as "Current Accounts," "Deposit Receipts," "Bills Discounted paid this day," etc, etc. The entries under the heads of Current Accounts, and Deposit Receipts, are copied from the Received-Waste-Books : the entry expresses only the name and the amount.
After all the entries have been made, add up the debit and the credit sides. To the credit side add the amount of the Cash-Book on the preceding evening; to the debit side add the amount of the Cash-Book on the same evening; and, if the totals agree, the " bank is right," that is, the transactions of the day have been correctly entered; but if not, then the bank is wrong, and the error must be discovered by " marking off " the various books.
In large establishments the Day-Book is divided into two books; the debit side forming one book, and the credit side the other book. One is called the " Paid-Day-Book," and the other the " Received-Day-Book." The advantage of this division is, that two persons can be employed at the Day-Book at the same time. In some banks the Day-Book has three cash columns, the third being used for transfer entries. These are entries in which no cash is actually paid or received by the bank, but an amount is transferred from one account to another. In other banks, all the transfers are passed through the Received-Waste-Book. By some London houses the Day-Book is called the Cash-Book, and its two divisions are called the"RECEIVED-CASH-BOOK,"and the "Paid-Cash-Book."
5. Current-Account-Ledger.-In this book every customer has a separate account. The sums received to his credit are posted from the credit side of the Day-Book, and the Ledger folio is placed in the Day-Book, in a column ruled for that purpose. The debit side is posted from the cheques themselves, and the Ledger folio placed in the debit side of the Day-Book on the following morning, when the Day-Book is marked against the Ledger. The entry of a cheque in the Ledger includes the date of payment, the name of the party to whom it is payable, and the amount. The entry of a credit includes the date, the word "Cash," and the amount. When the cash is paid into the bank by a third party, it is usual to enter it in the Ledger as "Cash per A. B." "When a credit arises from a bill lodged for collection having become due, the name of the accepter is substituted for the word cash.
Some banks follow what is called the progressive plan of keeping the Ledger. By this plan the balance is brought out every day, and thus we see the progress of the account. In the ordinary way, each page of the Ledger is divided into the debit and the credit side, and each side has ruled columns for the date, the transaction, and the amount. But in the progressive Ledger there is only one column for the date of both the credits and the debits-one space for a description of the transaction, whether credit or debit-and then three cash columns. The first column is the debit column; the second is the credit column; and the third is the column into which the daily balance is brought out. The advantage of this plan is, that you can see at once what sum a party has on his account, without the delay of adding up the debit and the credit columns. Most banks that allow interest on the balance of the current accounts keep their Ledger on the progressive plan; and, besides the columns I have mentioned, there are, on the right side of the balance column, a space for inserting the number of days the balance may remain stationary, and two interest columns-one for the interest of a credit balance, and the other for the interest of a balance overdrawn. Most banks divide the Current-Account-Ledger into two or more parts, and the names of the depositors are placed in alphabetical order, from the beginning of the first Ledger to the end of the last.
6. Deposit-Receipt-Book.-Deposit Receipts are receipts granted for sums of money that are likely to remain a considerable time, and upon which interest is allowed. These receipts are distinguished from current accounts. Cheques cannot be drawn against any sum lodged as a deposit receipt; but when the amount, or any part thereof, is withdrawn, the receipt itself must be produced at the bank, and delivered up properly discharged. The Deposit-Receipt-Book is not kept ledger-wise; that is, each person has not a separate account opened for him in a distinct part of the book, but the receipts are entered chronologically, according to the date of the lodgment. The entry includes date of lodgment, name of depositor, profession, residence, amount, interest paid, principal and interest. The last two particulars are of course not entered until the receipt is cancelled. If a party is desirous of withdrawing only a part of the lodgment, the whole receipt is entered as paid, and a new receipt made out for the sum which remains.