On the general ledger of a bank there should be a coupon fund account representing the total of the funds received and on hand for coupon payment and bond redemption purposes. The grand total of the figures in the balance columns of all the accounts in the coupon fund ledger should equal the control account on the general ledger of the bank.

Coupon Checks

Coupons and bonds are usually paid by check. They are paid, of course, only after careful scrutiny. Coupons taken from stolen or lost securities, others on which stops have been placed, and also those which have not yet matured, should not, of course, be paid. The checks which are issued usually are for credit to the cashier's checks outstanding account or to a special account called "coupon payments," the balance of which represents at all times the outstanding checks. All coupon checks finally paid are charged to this liability account called "coupon payments," or if special checks are not used for the purpose, to cashier's checks account.