Discount And Other Statements

Loans and discounts are another fruitful source of statements. Some of them have already been described.

One, not previously mentioned, is the regular week-to-week report of paper discounted. This is to inform head office of the details, and is practically a running copy of the discount register, the totals being carried forward from week to week to prevent anyone at the branches from tampering with past records. Then there is the diary balance. To effect this the amounts of discounted bills in the diary are totalled, by days, and the whole added together. The sum agrees, of course, with the general ledger balances. The object of this is to test the accuracy of the diary; also to show the extent of the maturities at near and distant dates.

The past due bills are to be reported on occasions more or less frequent. Head office wants to know the status of these debts from time to time. Changes in the circumstances of the debtors and other items affecting the prospects of recovery are to be given. In connection with the collaterals, a collateral diary balance, on the same principle as the discount diary balance, is usually required, as is also an occasional statement of the balances of collateral notes held on account of each collateral borrower.

In the case of accounts with correspondent banks, a weekly statement of the items passed through may be required. The premises, and office furniture and safe are described and valued only on special occasions, such as at the end of the bank's fiscal year and on inspections.

Profit And Loss Details

Head office demands explicit details of all the profit and loss accounts-charges, interest paid, discount and interest received, commissions, etc. From the statements supplied by the branch practically all the receipts can be checked up in the head office; also all the disbursements. The discount sheets, which contain the copy of the discount register, show the rate and the amount of interest collected against every bill discounted. The totals of the columns show the amounts credited to discount or interest received. Other statements show how the amounts charged to interest paid are made up - the deposits or accounts which received the interest are specified, with the interest allowed on each. Vouchers for the charges account items must accompany the statements, and a sharp lookout is kept to see that the items of expenses are properly authorized.

Statements Of Ledger Balances

Once a month, or once a quarter, on balancing his current accounts ledger the ledger-keeper must send down a statement or list of the balances making up the total contained in the ledger. A list of the savings bank balances is also called for at fixed periods, and of the deposit receipts outstanding. As the statements are made up they are handed to the accountant, who compares the balances shown in them with his general ledger balances, examines them sufficiently to satisfy himself that they are properly and correctly made up, and affixes his initials to make them official. Many banks have four general balance days a month, on probably the 8th, 15th, 23rd and last day. On these days there are always a large number of statements to be sent out.