Banking Companies Books and Registers maintained

Books Section:

Cash Book:

For recording different types of cash transactions two types of cash books are recorded, viz.

(i) Rough Cash Book which deals with cash receipts and cash payments maintained by a receiving cashier and paying cashier, respectively.

It records serial number, depositor’s name, amount received etc. in cash, whereas, in case of cash payment, serial number, payee’s name, amount paid, number of token etc. are recorded,

(ii) A Fair Cash Book, on the other hand, is one when a separate person, after receiving the above information from the paying and receiving cashier, records the transactions in a separate book. Naturally, the transaction of the fair cash book must tally with the sum total of the above two rough cash books.

Cash Balance:

The cash balance at the close of the day is written in the book which is duly signed by the cashier and the manager.

Day Book:

It records day-to-day transactions of the book relating to cash transfers, clearings etc. Besides the above, Received Waste Book, Sectional Cash Book etc. are also to be maintained.

Ledger and Register Sections:

Ledger Section:

Current Account Ledger:

It records the transactions of those customers who open current account. Generally, the bank does not pay interest on the balance of this account but a nominal charge is taken by the bank for rendering the services. If there are many current accounts, those are to be serially numbered.

Savings Bank Ledger:

It records the transactions of those customers who open savings account in a bank. The detailed description of the customer, viz., name, address, occupation, are recorded along with an account number. If there are many Savings Account ledgers, they are to be serially numbered.

Fixed Deposit Ledger:

It contains transactions of those customers who have deposited their money into the bank for a fixed period. Generally, at the top of the account, depositor’s name and address, rates of interest, period of deposit, the amount so deposited etc. are to be recorded.

General Ledger:

It is actually the key ledger of the accounting system of a bank. It contains a total amount in respect of total Current Accounts, total Savings Bank Account, total Loans Account, total Bills Payable Account, total Expenses and total Revenue Accounts. Each ledger is kept under self-balancing system. A trial balance can easily be prepared which helps to prepare the final account as Well.

Besides the above ledgers overdue fixed deposit ledger, fixed deposit interest ledger, loan ledger, investment ledger may also be prepared.

Register Section:

The register section includes:

Bills for Collection Register, Securities Register, Document Register, Standing Order Register, Cheques Dishonoured Register, Drafts Issue Register, Drafts Payable Register, D.D. Register, Foreign Letters of Credit Register etc.

(a) Principal Books:

(i) Cash Book:

For recording different types of cash transactions two types of cash books are recorded, viz:

(i) Rough Cash Book which deals with cash receipts and cash payments maintained by a receiving cashier and paying cashier, respectively. It records serial number, depositors name, amount received etc. in cash, whereas, in case of cash payment, serial number, payee’s name, amount paid, number of token etc. are recorded,

(ii) A Fair Cash Book, on the other hand, is one when a separate person, after receiving the above information from the paying and receiving cashier, records the transactions in a separate book. Naturally, the transaction of the fair cash book must tally with the sum total of the above two rough cash books.

(ii) Day Books:

It records day-to-day transactions of the book relating to cash transfers, clearings etc. Besides the above, Received Waste Book, Sectional Cash Book etc. are also to be maintained.

(iii) General Ledger:

It is actually the key ledger of the accounting system of a bank. It contains a total amount in respect of total Current Accounts, total Savings Bank Account, total Loans Account, total Bills Payable Account, total Expenses and total Revenue Accounts. Each ledger is kept under self-balancing system. A trial balance can easily be prepared which helps to prepare the final account as well.

(b) Ledger Sections:

Personal Ledger:

(i) Current Account Ledger:

It records the transactions of those customers who open current account. Generally, the bank does not pay interest on the balance of this account but a nominal charge is taken by the bank for rendering the services. If there are many current accounts, those are to be serially numbered.

(ii) Savings Bank Ledger:

It records the transactions of those customers who open savings account in a bank. The detailed descriptions of the customer, viz., name, address, occupation, are recorded along with an account number. If there are many Savings Account ledgers, they are to be serially numbered.

(iii) Fixed Deposit Ledger:

It contains transactions of those customers who have deposited their money into the bank for a fixed period. Generally, at the top of the account, depositor’s name and address, rates of interest, period of deposit, the amount so deposited etc. are to be recorded.

(iv) Loan Ledger:

The loans which are sanctioned to the various parties are recorded in this ledger.

(v) Investment Ledger:

The amounts of investments which are made by the bank are recorded in this ledger.

(c) Register Sections:

The Register Section includes:

(i) Bill for Collections Register;

(ii) Securities Register;

(iii) Document Register;

(iv) Standing Order Register;

(v) Cheques Dishonoured Register;

(vi) Draft Issue Register;

(vii) Draft Payable Register;

(viii) D. D. (Demand Draft) Register;

(ix) Foreign Ledger of Credit Registers;

(x) Safe Deposit Vault Register.