The ledgers in which accounts with depositors are kept are called "individual ledgers," and in the keeping of these the greatest accuracy, simplicity and clearness should be attained. They should be so kept that the balance of each depositor's account may at any time be readily seen, and they should be frequently balanced to verify their correctness. The only evidence of the bank's liability to him held by the depositor of money on open account in the ordinary way are the figures entered by the teller in his pass-book when a deposit is made, and the best and most conclusive proof of the correctness of the depositor's account on the individual ledger is the actual comparison of the amounts entered in his pass-book with the amounts credited to him on the ledger. All pass-books should therefore be frequently called in by the bank, and after the checks paid by the bank are entered therein, the difference between the total of checks paid and deposits received should agree exactly with the balance to the credit of the depositor's account on the ledger. To make this test of correctness most valuable, the comparison of the pass-book with the ledger should be made by some person who is not the keeper of the ledger. As serious defalcations have occurred through lack of this precaution, it is very essential that it be taken in every banking institution.

One good form of individual ledger is what is called the three-column or balance column ledger, because it has a column for checks paid or other debit entries, one for deposits or other items credited, and a third for showing the balance after each entry or the day's entries are made in the account. The following is a specimen of an account in such a ledger, showing debits, credits and balances: