Importance Of Bookkeeping
Description
This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
Importance Of Bookkeeping
These matters of audit and control, while strictly out of the province of bookkeeping as a recording process, are introduced to show the great importance of bookkeeping as an agency in proper bank operation.
Suggested Arrangements of Accounts in the Daily Statement
Explanatory Of The Following Arrangement
Most bank statements start with loan assets on the left side and capital liabilities on the right. That practice is not pursued in manufacturing and mercantile statements which are most desirably arranged when the assets and liabilities are placed in accordance with their liquidity, that is, the more active or current liabilities first, and so on down. That general principle has been used in the following illustration because it is felt that if the assets and liabilities of mercantile, manufacturing, and public utility corporations should appear in the order of their currency there is no reason why the same arrangement generally is not desirable and practicable for banks:
Asset or Debit Balance Classifications Cash And Due From Banks
Cash:
Gold
Silver and Minor Coin Paper Currency
Foreign Currency
Reserve at Federal Reserve Bank
Due from Federal Reserve Bank - Collection Account (Transit Items)
Due from Other Banks - Collection Account (Transit Items)
5% Redemption Fund
Due from Depositors - Overdrafts
Due from Foreign Banks and Bankers
Due from Tenth National Bank, New York
Due from Branches
Loans And Discounts (And Accounts Receivable)
Loans, Demand Loans, Time
Loans, Time, Pledged with Federal Reserve Bank Bills Discounted Bills Discounted Overdue Commercial Paper Purchased Due from Customers for Foreign Exchange Sold Advances on Foreign Bills Customers' Liability for Bills Accepted Interest Accrued on Loans Accounts Receivable
Due from Customers on account of Accrued Commissions
United States Bonds
U. S. Government Securities Owned and Unpledged
U. S. Government Securities Deposited to Secure Circulation
U. S. Government Securities Pledged to Secure Postal Savings Deposits
U. S. Government Securities Pledged as Collateral to Bills Payable
Other Bonds And Stocks
Securities Other Than U. S. Bonds
Other Bonds Pledged to Secure U. S. Deposits
Federal Reserve Bank Stock
Mortgages And Real Estate
Real Estate Owned Mortgages
Miscellaneous Assets Including Building And Furniture And Fixtures
Banking House and Lot Premium on U. S. Bonds
Prepaid Expenses
Prepaid Expenses
Prepaid Interest on Borrowings Expense Account Interest Paid on Demand Deposits Interest Paid on Time Deposits Interest Paid on Money Borrowed
Liabilities
Demand Deposits
Due to Depositors' P. M. Deferred Credits
Dividends Declared
Dividend Checks Outstanding
Demand Certificates of Deposit
Due to Branches
Due to Foreign Banks and Bankers (Overdrafts) on Our Accounts Abroad
Time Deposits
Trust Funds
Time Certificates of Deposit Postal Savings Deposits Time Deposits
Other Liabilities
Due for Foreign Exchange Purchased by us Acceptance Outstanding Bills Payable with Federal Reserve Bank Rediscounts with Federal Reserve Bank Overs and Shorts
Accrued Liabilities
Accrued Interest Payable on Time Deposits
Capital, Surplus And Undivided Profits
Capital Stock Surplus Undivided Profits
Reserves
Reserves for Taxes Reserves for Depreciation
Earnings Collected Not Yet Earned
Commissions Collected not Earned
Discount Collected not Earned
Current Earnings
Commissions
Commissions - Trust Department
Interest Earned
Discount Earned
Interest on Securities
Foreign Exchange Profits
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