A transaction in this account was explained in connection with account No. 10, reserve at Federal Reserve bank. As has been said, the collection account is an offset to credits made in depositors' accounts for out-of-town items they have remitted. No. 21, explained further on, is another collection account covering those items which are not collected through the Federal Reserve System. On the day that items are dispatched to one of the twelve Federal Reserve banks for collection, the general ledger entries made are:

Debit: Due from Federal Reserve Bank - Collec-lection Account (20) Credit: Due to Depositors (37)

When returns are received, which is automatically in accordance with the time required to collect items, the entries are:

Debit: Reserve at Federal Reserve Bank (10) Credit: Due from Federal Reserve Bank - Collection Account (20)

That is, the items become available in the reserve account automatically.

Auxiliary Record Of Federal Reserve Bank - Collection Account

The auxiliary ledger of this account was illustrated in connection with account No. 10. Briefly, when items are sent, debits are entered in the ledger opposite the name of the Federal Reserve bank to which sent, and in accordance with the one, two, four, five and eight day schedule, when the items are collected, credits are entered opposite the Federal Reserve banks to which the items have been dispatched. The total of all the excess debits over credits in this auxiliary Federal Reserve collection ledger must agree as of the close of each day with the balance of the Federal Reserve bank collection account (20).