The general ledger bookkeeper is the Bookkeeper of the Bank. It may be said that all other books and records are a part of the general ledger. Every transaction of whatever nature gravitates to this ledger. The keeper of the general ledger may be said to be the dealer in wholesale figures; the other clerks are the retailers. He has to do with totals of completed transactions; the tellers and other bookkeepers are concerned with the details. The accounts on the general ledger consist of the items in the bank's statement of condition, known as the "control accounts."
The general ledger bookkeeper makes his postings at the end of the day or the first thing in the morning before the bank has opened for business. No matter how large the bank may be, this posting of debit and credit totals takes but very little time, and in small banks the cashier may do this work. More often the clerk who "runs" the individual ledger is also responsible for the general ledger.
In large banks the head bookkeeper (as he is sometimes called) is given additional duties and responsibilities. He makes the daily calculation of reserve and keeps the record of the earnings and similar data. Most banks keep a book which is known as the "daily comparative statement" book. In this book a record is kept showing the figures of each day side by side with the same items of that day the previous year or years. These "vital statistics" are of great interest and value to the officers and directors and often serve as a guide that will indicate what may be expected. With this knowledge thus tabulated, the bank is able to serve its patrons more intelligently, since by using the law of averages a reasonable forecast can be made and the needs of depositors and borrowers may be anticipated.
One of the important items in the general ledger is the discount account in which the earnings of the bank are entered. When a loan is made the interest charged by the bank is entered in this account. At regular intervals, usually once each six months, discount account is charged and the expense account is credited a sufficient amount to pay for salaries and other expenses. If the bank has been prosperous a dividend is declared and an amount set aside among the liabilities as "Dividend Number 74," or whatever the number may be. Checks bearing this dividend number, signed by the cashier, are then mailed to the stockholders, and as they are presented for payment they are charged to dividend account. Any additional sum remaining in discount account may then be carried into "Undivided Profits," or, if large enough, will be added to the surplus. The stock book which contains the names of the stockholders and the number of shares held by each, may also be kept by the head bookkeeper.
The general bookkeeper usually has charge of the accounts with other banks. These are kept just as the individual accounts are, and are subject to the same kinds of debits and credits. In addition to the credit accounts, or those accounts which represent the balances of other banks, there are usually many debit balances, which in total are carried on the general ledger as "due from banks." As each day's letters containing checks are sent to correspondent banks, the amount of such checks are debited to these banks. As remittances are received in payment, the accounts are credited. A daily record is kept of each account, known either as the "statement" or "account current," and at the end of the month this statement is ruled up and forwarded to the correspondent banks for "reconcilement."
Since there are letters in transit, drafts not yet paid, collection credits, returned items and other entries constantly "in the air" between two banks that do business with each other, this reconcilement is necessary if the accounts are to be settled as of any given day. It is very interesting work and an example of the method used may be given. We will assume that a city bank has sent a monthly statement to a country bank showing the actual debits and credits for the month and the balance due to the country bank. The country bank would then fill out a reconcilement blank about as shown on the previous page and mail it to the city bank.
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