Bank bookkeeping is a process of recording and classifying the transactions of a bank. It should not be confused with the law of banking, nor with bank statistics, bank arithmetic or auditing; further, a presentation of bank bookkeeping in principle is not a discussion of bank operation. The field is restricted so as to exclude mechanical processes, varieties of forms, bank operation, bank organization, and the division of work among employees.

The Purposes Of Bank Bookkeeping

The purposes of bank bookkeeping are numerous, but the main ones are:

(a) To record transactions as they occur.

(b) To classify transactions by kind.

(c) To show profits and losses made.

(d) To reflect the financial condition of the bank.

(e) To afford figures for comparative periods.

Bookkeeping Records

The bookkeeping records of a bank fall into two main divisions: (1) those of original entry and (2) those of final entry. Books and records of original entry are those such as loan and discount registers, bond registers, journals, debit and credit tickets, and the like. In such records transactions are usually entered as they arise. In books of final entry such as the depositors' ledger, the general ledger, the bond ledger, and the loan ledger, transactions are classified into accounts by name or according to their kinds.