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his duty to cash checks and make all other payments called for
•by the business of the bank, including the settlement of the
clearing-house balances. It is necessary for the paying teller
to be in close touch with the accounts of depositors and he must
be thoroughly familiar with their signatures.



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§31



ACCOUNTING METHODS OF BANKS



11



15. Payment on account of a depositor is "Usually made on
presentation of an order, known as a check, the form of which




Hartfxjrd. rcMK ^^^:^a/i^ a. No. .



uitable National Bank of Hartford, Conn.



^7<^^>y.^^ ^^ .



Fig. 8

is shown in Fig. 8. When a check of a depositor is presented
for payment it is carefully scrutinized by the paying teller to
see that it is in proper form — that is, that it *is dated, that the
amount as expressed in figures and in words is the same, that
the signature is genuine, that the check is properly indorsed,
and that the amount on deposit is sufficient to meet it. When
a check drawn on another bank is presented and the teller does
not know whether the indorser is financially responsible, he
usually calls by telephone the bank on which the check is
drawn to find out whether it is good.

16. Checks of depositors are often presented to be certified,
which is a guarantee by the bank that it will be paid on presen-



CHECK CERTIFIED



*-€^ '^^CcM^



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J.



^//r ^ i 19



r^C^^<,^ y^ /^-



zDollan



Charge account



Check No-
Check



jtUL



"■^^S^V^^ ,^



Fig. 9



tation. A check is certified by stamping on its face, usually
in red ink, the word "Certified" and the date, the certification



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12 ACCOUNTING METHODS OF BANKS § 31

being signed by the paying teller or the cashier. The form of
certification is illustrated on the check shown in Fig. 8.

The certification of a check makes the bank responsible for
its payment instead of the drawer. Therefore, on certifying a
check, which must first be O.K.'d by the bookkeeper, the pay-
ing teller makes out a charge slip, Fig. 9, from which to charge
the customer's account with the amount, and a credit certified-
check slip. Fig. 10, from which to credit the certified-check
account in the general ledger.

17. When the teller pays a check, he stamps on its face
the date of payment to show a cash transaction and makes the
proper entry on his strike sheet, which contains a record of all



Credit Certified Check Account j

Chedc Payable to 0^-^ ^^^ ^^"^ZX^^^^^-^.^t.^.c-.e.^^..-^ $ ^SOQ^^

C^Z^i!.v^ ^ - -^It^L^ ^ ^ ^l^,^/^ ^r^ ^ - - - ^ nnllan

Book Charged to ^^

Folio 'y^y^^/<Z^^^ ^^ .

Check No. 7^ y^



Check Datet



■79



Fig. 10

payments made by him and is of the form shown in Fig. 11.
If the cheeky is drawn on the bank at which it is presented, the
name of the maker is entered in the first column under the
heading Name, and the amount is entered in the next column.
If the check is drawn on another bank in the same or some
other city or town, the name of the bank and the city or town
and state is written in the first column instead of the name of
the maker. Certificates of deposit, when p^id, are treated as
checks.

At the close of the day's business, or oftener if desirable,
the teller makes an adding-machine list of the items in the order
in which the transactions occurred, notes the total amount on
the back of the last check of each lot, and delivers the lot



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§31



ACCOUNTING METHODS OF BANKS



13



to the proof-book clerk. The items are then entered in the
proof book and the column is footed. If the amount agrees
with the total as given by the teller, the items are distributed
to the proper accounts.

18. At the close of the day's business the paying teller
makes out a daily balance sheet of a form shown in
Fig. 12, similar to that of the receiving teller. This sheet shows
the amount on hand in the different denominations of currency.
In the column at the left under the heading of Bills is



[WTTiill)


RECORD OF PAYING TELLER'S CASH \


PAID
Nam* Amount


PAID
nIim Amooiu


&2/,:etL^4^




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Paid Clearins House


al.




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Fig. 11

listed, first, the amount in twenty-dollar bills; second, the
amount in ten-dollar bills ; third, the amount in five-dollar bills ;
fourth, the amount in two-dollar bills; fifth, the amount in
one-dollar bills ; sixth, the amount in bills of large denomina-
tions; and seventh, the amount in strapped bills, if any. In
the second column is listed the amounts in the several denomi-
nations of gold coins, beginning with the highest in value. In
the third column is listed the amounts in the various denomi-
nations of silver coins ; and in the fourth column, the amounts
in nickels and pennies. The fifth column, which is headed
Items, is for listing late checks — that is, checks presented by



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§31



ACCOUNTING METHODS OF BANKS



15



customers after the regular banking hours, which may be paid

as a special accommodation. Such items are considered as cash.

When all the cash is counted and the amounts are entered

in the proper columns, the columns are footed and the totals



Payment stopped on ^2^ of



Payable to-
7b tAeEquitable National Bank
Dear Sirs

Please stop payment on /^f^? No..



.payable to.



signed as follows - ,

The undersigned hereby agrees to reimburse you for all damages, cost and
expense, to wbieh you may be subjected by reason of refusal to honor said check
and to furnish doe and sufBcient security therefor whenever demanded.



Date^



o



Fig. 13



carried to the column headed Total on the right-hand side of
the sheet, and the footing of this column shows the total
amount of cash on hand" In the first line of the Total column
below the horizontal double-ruled line is entered the amount



R^annuft fnp ■tnpping P«yir>*1t t ^




Has duplicate been issued and when






o



Fig. 14



carried over from the previous day, as shown by the balance
sheet for that day, and from this amount is deducted the
amount paid out during the day, the balance showing the cash
on hand. This balance, if no mistake has been made, will agree



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16



ACCOUNTING METHODS OF BANKS



§31



with the total of the cash on hand shown above. To this
balance must be added the amount turned over by the receiving



Df


Stop Payment On


CHECK
NOTE

fm-f


payable to-


.















Fig. 15

teller, and the total shows the amount carried over for the next
day's business.

19. During the course of the day's business it may be
necessary for the paying teller to handle several other forms

described following:

In Fig. 13 is shown a card
used when payment on a note
or check is to be stopped. If
payment on a check is to be
stopped, the matter is referred
to the paying teller, who crosses
out the word Note and fills out
the card or asks the customer
to do so, and the customer signs
it. The back of the card is
shown in Fig. 14. This side is
signed by the customer if the
stop-payment order is revoked.
Stop-payment cards are filed
alphabetically in a case located
conveniently for the tellers and
bookkeepers, and a stop-pay-
ment slip of the form shown in
Fig. 15 is posted or filed in the cages of the tellers as a reminder
to be on the lookout for the presentation of the check.





ASMItTMCNT or CUMMNCY OM

]C








, Twenties

Tens

Fives

Twos

Ones







=















Silver Dollars




Halves








Quarters

Dimes

NickeU

Cents

Total

































EQUITABLE NATIONAL BANK

HARTFORD. CONN.



Fig. 16



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§3J ACCOUNTING METHODS OF BANKS 17

20. A form of requisition furnished free by banks to
customers is shown in Fig. 16. The customer specifies on this
form the denominations of currency required for pay rolls and
presents it with his check for the total amount. This requi-
sition is usually handed to the paying teller the day before the
cash is required, in order to give him time to put it up without
interfering with other transactions.



TRANSACTIONS

21. The following were the transactions at the paying
teller's window on Tuesday, September 8, 19 — :

Checks paid:

W. H. Gillette & Co., on Equitable $167.40

Lucy B. Fostelle, on Equitable 12.10

First National Bank, Boston 25.00

Chase National Bank, New York 155.75

State Bank, City 250.00

Certified the following check:

W. H. Gillette & Co. to J. C. McCormack $500.00

Received $500 in currency froip the receiving teller.

Cash on hand from yesterday, $1,610.25.

Detailed statement of cash on hand at the close of business :

Bills $ 850.00

Gold coin 100.00

Silver 45.00

Nickels and cents 5.00



$1,000.00



COL.L.ECTION DEPARTMENT

22. The collection clerk ranks in importance next to the
last of the bank clerks. It is his duty to take charge of the
drafts and other items received by the bank for collection and
to make the collections at the proper times.

A draft is an order generally made by one person on his
funds in the hands of another person. It may, however, be
drawn when the drawer has no funds in the hands of the
drawee if he has reason to suppose that it will be honored. A
draft may be drawn on demand, at sight, or on time. Drafts

I L T 234—3



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18 ACCOUNTING METHODS OF BANKS §31

drawn at sight and on time are shown in Figs. 17 and 18.
Acceptance of a draft makes the acceptor liable for its pay-
ment on the due date.

23. When a draft is received by a bank for collection from
one of its customers, he is notified of it on a form similar to



ylauie deceived and ciuu^e ^\t Mitne to accotmt 0/



Fig. 17

the one shown in Fig. 19. If a bill of lading is attached to the
draft, a notice of the form shown in Fig. 20 is sent.

24. As items are received for collection they are entered in
a book known as the collection register^ the form of which
is shown in Fig. 21. The illustration shows what information
is recorded, so that no explanation is necessary except to state
that the entry in the last column headed Disposition is not






^afiw deceived and tfiatjr Ifw aaine (0 account of



•-.^ ^^ ^ f )Ah



:au



'> <^^.^^ - ^-^ — ^^Jl^^^ ^..^.z^



Fig. 18

made until after the item has been presented for payment.
In this case it is assumed that F. T. Peabody has paid the
amount by check before the presentation of the draft and that
the draft was returned the same day unpaid. Accordingly the
entry in the column headed Disposition will be as shown.



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§ 31 ACCOUNTING METHODS OF BANKS 19

When a draft or other item is returned unpaid to the sender,
the reason for non-payment is attached to it and a letter of
advice of the form shown in Fig. 22 accompanies it.

25. In banks that handle a great number of collection items
on out-of-town banks for customers, the following system is



I



• MAKE ALL CHECKS PAYABLE TO ORDER Of

Equitable Natiooal Bank, Hartf orcL Conn.



. HAKTFbM), CONU

Ml C:^ <^ \ <^ €/r /tj

Plttse c«H «nd{ ^^/pj* dr«f tjjqwn ^ you txjzzz^^vn (sight

% 3^ 'y I2l!^ Equitable National Bank

KimMy Brim thU Kodtc With Vow




Fig. 19

used: As items are received, they are entered on a collection
register made up of five sheets of paper of different colors and
bound together at the top. The first, or front, sheet contains
five divisions like that shown in Fig. 23 and is not perforated



All Dniftt are VyMt iw Money or Cmifa< Owda to tlie orfcf oi

Equitable National Bank, Hartford, Conn.

Hartford, ^"wm^



Mr.



. Please c«li, ON ARRIVAL OF GOODS, tnd p«y • drtft, with Bill of Lading attached tor
Car No.«: drawn on you by



If payment it refuted on arrival of goods, kindly notify us, stating the reason.

Equitablb National Bank



Fig. 20

between the divisions. The sheets underneath contain similar
divisions and are perforated so that each division can be readily
detached.

When an entry is to be made, the set of sheets, with carbons
between, is put into a typewriter, and the five copies of the



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§31



ACCOUNTING METHODS OF BANKS



21



entry are produced at one writing, the entry being the same on
all, though the printed forms on the different sheets vary



Equitable National Bank


— /P-










We return the foUcwing unpaid items Reasons for non-payment
accompanies each item.

Yours respectfully,

J. E. ALLARD, Cashisr


^<»"oV5LV%8*"


ON WHOM DRAWN


AMOUNT






















l:.; — r?^




-J







Fig. 22

slightly. The first entry is made on the bottom division of
the register, and the front, or first, sheet constitutes the per-
manent record, the entry "Credited" or "Returned" being made
when the item is finally disposed of. The copy on the second
sheet, shown in Fig. 24, is filed to be used as a deposit slip to
credit the customer's account when the amount has been
received. The copy on the third sheet, shown in Fig. 25, is



Jo^iT .^ EQUITABLE HiltlOHAL BAHK yvo.

7 HARTFORD, CONN.

C / DateorhOow /




^/^ Dwwwor Payer 1



DateorhOo.



Payable at

CREDITED _



RETURNEDl.



Fig. 23

filed to be sent as a letter of advice to the customer when his
account is credited. The copy on the fourth sheet, shown in



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CREDIT



19 EQUITABLE NATIONAL BANK n.

HARTFORO. CONN.

$



Drawn or Fkjpw



Pkyabkat Dm



ScMfl*;



Fig. 24



./9 EQUITABLE NATIONAL BANK n.

HARTFORD. CONN.

$



_Prole$i



.P«y«bleat Due



YOUR AjCCOUNT HAS BEEN CREDITED TODAY WITH THE ABOVE
DESCRIBED COLLECTION



Fig. 25



./9 EQUITABLE NATIONAL BANK n.

HARTFORD. CONN.

$



T0:



FILE UNDER DUE DATE.



Pky>Ue*t D«M



TICKLER



Fig. 26



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§31



ACCOUNTING METHODS OF BANKS



23



Fig. 26, is the tickler copy, which is filed under the due date

of the item. The copy on the fifth sheet, shown in Fig. 27, is

sent as a letter of advice to the bank to which the draft is sent.

The four under sheets, being perforated, can be detached as



j9 EQUITABLE NATIONAL BANK n.



T:



For Collection



DO NOT CREDIT OR REMIT UNTIL PAID.
PLEASE RETURN UNPAID ITEMS PROMPTLY.



Fig. 27

soon as a .record is made. The front, or original, sheet, though
not perforated between the divisions, is perforated at the top,
so that when the five divisions are filled, the entire- sheet can
be detached and filed as a permanent loose-leaf record of
transactions.



TRANSACTIONS

26. The following items were received Tuesday, Septem-
ber 8, 19 — , for collection :

James Myers, 10-day draft on John Harris Co., Boston, Mass., dated
Sept. 8, 19—, listed No Protest, amount, $50.

From Eastern National Bank, New York, sight draft of William E.
Foster, drawn on F. T. Peabody, dated Sept. 5, payable at the Equitable
National Bank, listed No Protest, amount, $362.72.



NOTE TELLBR

27. The note teller, or discount clerk, ranks third in impor-
tance in a bank. It is his duty to look after the making of all
discounts and loans, to compute discount and interest, and to
receive payment for all notes.



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24 ACCOUNTING METHODS OF BANKS § 31

Bank notes are of two kinds, one an ordinary note and the
other what is designated as a collateral note. The ordinary
note, the form of which is shown in Fig. 28, is a written
promise to pay to a certain person a stated amount at a given




me otJel oi.



^'^iX (late-^jxiomiie to jiatf to




AT THE EOUITABLE NATIONAL BANK OF HARTFORD. CONN.,
^imout cle|a(cat(<m joi vadu lecemd



■^2^<^^^fe-^c^. ^-^.



Fig. 28

time and place, and it is therefore a time, or promissory,
note. When a note of this kind is discounted by a bank, the
interest for the period it is to run is deducted in advance. A
coIlaterQ.1 note, the form of which is shown in Fig. 29, is
a promissory note secured by the deposit of securities with the



HARTFORD. CONN..-



.AFTER DATE PROMISE TO PAY TO THE ORDER OF



Equitable National Bank of Hartford. Conn.

___DOLL A R8»

AT THE EQUITABLE NATIONAL BA.XK OF HARTFORD. CON.N.. FOR VALUE RECEIVED,
witboat defalcation, bereby waiving nil rlaht to stiiy of exevutloii aiiU oxeiiiptloii of |iro|>erty In any suit
on tbis note Aa collateral security liavc dcllveretl



4m *nd My*blc. and all I

Hcwt lh» yarixnl »♦ an]
(iiiccal coniinainc collalfi



by MNhontc


mi «a«»rcr the hotdn h«mr. on


dcfaulf in parmeni on deaund,




■m to ill


•tt-r


and tA all ml*


















Wl 10 l>C«M»






of til ■ni.u ami




tale he ■




Board oe be




Ihal M often at Iht








r,e. .ball. Uc«o.e n


























nl)t. 10 be api


^oTtd by Mid holder




o'er va.d .n


ouniandmanin;


and thai, i


ndelaul thereor ih


• note tball boc


M JaMaoily




















te manner ..


(urtkn*!'


ee ilu< ihe '^cuni.n


lercHy |.ledce<


. locether m


Ih toy thai may


be^pledced




T. th.ll be


anplKable .n li
















T»n««r.i, l«c Iht whok or


othiat


»<•>. M lhai


Ih* delkieney on




111 be m







Fig. 29

bank. Interest on a note of this kind is paid monthly or at
the time of the payment of the note, according to agreement.

28. When due, a note in the hands of a bank may be
charged to the maker's account, the same as a check, or be paid



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§31



ACCOUNTING METHODS OF BANKS



25



by cash or check, or it may be renewed in whole or in part.
Notes drawn on other banks in the same clearing house are



MARSH




N? 5035


lEfiisrei




'1


J.B.St««l« & Oo.


•P aOTt BOI VoT.8 Iff


•4»e


1




o**


MO....


••;•


Sept.


8


2




AMOUNT

1200


2.00


DlteOWNTKB

s«pt.8


PAVAVLC »T 1
THIS ■ANK 1


lOANS


DISCOUNT 1



















Fig. 30

usually presented by the bank's messenger the first thing in
the morning on the day due and if they are O.K/d by the book-
keeper of the paying bank they are sent to and paid through
the clearing house. If a note is not good in the morning, it is
presented again at closing time,
and if good then it is O.K.'d, the
amount noted against the
maker's account, and is sent
through the clearing house the
next day. Notes not good in the
afternoon are turned over to a
notary public, who presents them
for the last time, and if not good
they are protested by the notary
and returned the following
morning to the protesting bank.



OEPOSITCO BY


/<y IN TNS

Equitable National Bank

HAMTFOfVO. CONN


CU««CNCV


eobkAiis




GOLD


/




SILVER






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29. The form of note reg-
ister used differs to some extent.
In recent years, however, many
banks have adopted the one-
copy note register devised by
M. J. Philbin, a banker of Olyphant, Pennsylvania. This form
of register has proved of such convenience that it is rapidly
coming into general use.



Fig. 31



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26



ACCOUNTING METHODS OF BANKS



§31



The register consists of a set of five sheets of paper of
different colors, each sheet containing five divisions like that







0^


CfO





Fig. 32

shown in Fig. 30, which provides for recording five trans-
actions, and five copies of each are made at one writing. Each
set of five sheets is bound together at the top, and the four
under sheets are perforated so that the copies can be detached
and filed separately. The top sheet is not perforated and when
all the divisions are filled the entire sheet is filed on a post
binder and the sheets become the permanent loose-leaf register.
The copy on the second sheet is a duplicate of the first sheet,
except that the date the note was discounted does not show



^^4-. f-



DEBrr SLIP



CHARGE



:2




^^



i^y









•g'^><^*«^»-*^g^<<*/~"^^



.^i-






JDollan



Charge made



byOOLu^^



Charge Aecoanl of



LfiargeAi



7Zy/3<lcLey



Fig. 33



on account of being written on a dark-printed space. This
copy is the notice of the due date, and is usually sent to the



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§ 31 ACCOUNTING METHODS OF BANKS 27

maker a week in advance of the date. The copy on the third
sheet is a duplicate of the first and is what is known as the
tickler, which is filed in a case under the due date of the note.
The copy on the fourth sheet is known as the indorser's form,
and is filed in a case under the name of the indorser. The
copy on the fifth sheet is known as the maker's copy, and is



XttUrb i^atra nf Amrrira,

ShdHt af 0oniirf limt
(SUg of l|irtfor&. u:

Ik it kwMPn. That, on the day of the date hereof, at the request of the

Eqtittalilr Natf0nal Sank of l^artforb* (Hoitm

the holder of the hereto attached, I, CHARLES H. WILLIAMS,

Notary Public for the Commonwealth of Connecticut, by lawful authority, duly com-
missioned add sworn, reifding in the City of Hartford, Hartford County, presented the

same at the bank where payable to . the

and demanded thereof, which was refused and answer made— •



I, the said Notary, at the request aforesaid, have protested, and do hereby
soleniinly protest against all persons and every party concerned therein, whether as Maker,
Drawer, Drawee, Acceptor, Payer, Indorser, Guarantor, Surety, or otherwise, howsoever
against whom it is proper to protest, for ail Exchanges, Costs, Damages and Interests,

suflfered and to be suflfered, for want of '. thereof, of all which

I notified the



Witness my hand and official seal, at the City of Hartford,
thii . day of , 19....



My Co mmU iioa cxpirci Jamtanr 19, 19 Ntttry PtMk



Fig. 34

filed in a case under the name of the maker. The fourth and
fifth copies contain a space for recording payments that may
be made on a note. The amount due is written in the first space
on the two copies and if payment should be made on the note
before it is due the original amount is crossed out and the new
amount filled in.

When notes are paid, the filed copies are removed and filed
in the dead-file case.



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28



ACCOUNTING METHODS OF BANKS



§31



30. When a note is discounted for a customer, the pro-
ceeds are usually credited to his account by means of a deposit
ticket, as shown in Fig. 31, and the amount of the discount is
credited to the Discount account in the general ledger by means



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