Resources

Cash

305107

32

Bills and Coin

243700

37

Exchanges for Clearing House

55166

50

Cash Items (City and Foreign)

6240

45

Bills Receivable

412950

40

Bills Discounted

405750

40

Protested Paper

7200

Stocks and Bonds

259500

U.S. Bonds with U.S. Treasurer (per inventory)

150000

Premium on U.S. Bonds

6000

Other Stocks and Bonds (per inventory)

103500

Properties

22700

Real Estate (per inventory)

17500

Fixtures (per inventory)

5200

Out-of-Town Banks, Dr.

22940

60

Due from Reserve Agents

100000

United States Treasurer

8500

5% Redemption Fund

7500

Due from U.S. Treasurer

1000

Overdrafts

620

40

1132318

72

Losses

Current Expenses

5700

93

Salaries, due and paid

4500

Taxes, due and paid

960

Incidental Expenses, total paid

240

93

Depreciation

G50

Furniture and Fixtures

150

Real Estate

500

Dividends, 4% of Capital Stock

16000

Surplus Fund, 10% of Net Gain

2415

02

Undivided Profits, balance of Net Gain

5735

14

30501

09

Resources And Liabilities

Boston, Mass., March 3, 19-

Liabilities

Capital Stock

400000

Surplus Fund

93530

16

Undivided Profits

9250

60

Circulation

150000

Out-of-Town Banks, Cr.

12650

90

Deposits

442596

90

Cashier's Checks

4050

90

Certificates of Deposit

17500

Certified Checks

19295

60

Individual Deposits

401750

40

Protest Fees

140

Undivided Profits (Net Gain)

24150

16

1132318

72

Losses And Gains

Boston, Mass., March. 3, 19-

Gains

Revenue Receipts

29501

09

Interest and Discount, net amount earned

16500

69

Collection and Exchange, net amount earned

12500

40

Interest (per inventory), due on U.S. Bonds

500

Stocks and Bonds, increase in value

1000

30501

09

Hand your statement of resources and liabilities to your instructor for approval.

Statement of Losses and Gains - Preparatory to declaring dividends and closing the ledger make a statement of losses and gains. Before proceeding with this statement carefully study the form given on pages 78 and 79. The net gain will be divided as follows: To Dividend account, 4% of the capital stock; to Surplus Fund, 10% of the net gain; to Undivided Profits, the balance of the net gain.

Hand your statement of losses and gains to your instructor for approval.

Closing the Ledger. - When a bank employs the form of ledger used in this set, the loss and gain accounts should be closed by journal entries.

To take the gains out of the several gain accounts and carry them to the Loss and Gain account, an entry similar to the following should be made in the journal.

Interest and Discount

Net amount earned

16500

69

Collection and Exchange

Net amount earned

12500

40

Stocks and Bonds

Increase in value

1000

Interest

Due on U.S. bonds

500

To Loss and Gain

Total gains

30501

09

To take the losses out of the several loss accounts and carry them to the Loss and Gain account, an entry similar to the following should be made in the journal.

Loss and Gain

Total losses

6350

93

To Expense

Incidental expenses

240

93

Salaries

Due and paid

4500

Taxes

Due and paid

960

Real Estate

Depreciation

500

Furniture and Fixtures

Depreciation

150

To close the Loss and Gain account, an entry similar to the following should be made in the journal.

Loss and Gain

Net gain

24150

16

To Dividends

4 % of capital stock

16000

Surplus Fund

10% of net gain

2415

02

Undivided Profits

Balance of net gain

5735

14

After making the necessary entries to close the loss and gain accounts post them to the general balance ledger.

Dividends are usually paid by cashier's checks. Dividend account is debited and Cashier's Checks account is credited when dividends are paid. You will omit the dividend checks, as no list of stockholders has been given.

Extend the new balances in the general balance ledger.

Prove the general balance ledger.

Prove the correctness of the out-of-town banks ledger by an abstract similar to the following.

Abstract of Out-of-Town Banks Ledger, March 3, 19___

1

Union Bank, Troy

906

2

Traders National Bank, Buffalo

7200

50

3

Chemical National Bank, New York

31250

50

4

Merchants Bank, Philadelphia

2692

50

5

Mechanics National Bank, Baltimore

1790

50

6

City Bank, Providence

1200

3-

Balance as per Out-of- Town Banks in G. B. L.

40828

42934

42934

See if Deposits account in the general balance ledger agrees with the individual ledger.

Prove the discount tickler. The total of the unpaid notes shown in the discount tickler should equal the balance of Bills Discounted account in the general balance ledger.

Present all your books to your instructor for examination.