A2, A3, etc.; those whose initial letter is B being numbered B1, B2, B3, etc. In the journal (Figure 134) instead of the names of the accounts these numbers are entered as a means of identifying the items. When the work of the day is completed, this "journal" will contain the totals of all the credits and debits for the day; and if the work has been done correctly, the totals of the "Checks" and "Deposits" columns will agree with the totals of these items as shown on the proofs. At the same time the footings of the "Old Balance" and the "New Balance" columns, with the total deposits added to the former, and the total checks added to the latter, will agree and furnish a proof of posting in the same manner as was explained in connection with Figure 129. If several ledgers are used, as is necessary in the larger companies, one of these journals is of course used with each ledger.

The custom of paying interest on daily balances on checking accounts which have satisfactory balances is a growing one. The terms on which interest is allowed vary somewhat in different localities, but interest at the rate of two per cent. per annum on daily balances of $500 or over is quite common. For the sake of convenience it is usual to compute and credit the interest about the 28th of each month. The interest statement is then ready to hand to the customer with his returned vouchers when his book is balanced on the first of the next month. Figure 136 shows a form of such an interest statement. It will be noticed that the balances are written in thousands and hundreds of dollars only, the figures in the units and tens columns being omitted. This method is followed in many institutions as a means of lessening the work, as it cannot in any case cause more than a slight difference in the amount of interest allowed. Sometimes the interest rule specifies that interest will be allowed on even hundreds of dollars only.

Figures 137 and 138 show two forms of ledgers devised with a view to assist the bookkeeper in the computation of interest on accounts. In Figure 137, in the column headed "Days," is entered the number of days that each balance stands undisturbed. In the next column, headed “Aggregate," is placed the product of the balance and the number of days. The principle involved in the figuring of the interest is the same as that used in Figure 136; namely, that the interest on any given amount for X days is the same as the interest on X times that amount for one day.

FIG. 137.-INDIVIDUAL LEDGER, FOR ACCOUNTS ON WHICH INTEREST IS ALLOWED.

Thus, on the first line of Figure 187, the interest on $2,517.50 for four days is the same as the interest on four times $2,517.50, or $10,070, for one day. Hence, if at the end of the interest period (usually the 28th of each month) the items in the column headed "Aggregate" be added, the interest for one day on the sum so obtained represents the correct interest on the daily balances of the account for the month. Figure 138 represents the top portion of a ledger sheet which facilitates the computation of interest, groups four accounts on each page, and shows on one

FIG. 138-INDIVIDUAL LEDGER FOR ACCOUNTS ON WHICH INTEREST IS ALLOWED.

page the balances of each account for one month. Down the first column at the left of the page are printed the numbers of the days of the month; the numbers beginning, however, with the 29th of the month, and extending through the 28th of the following month. This arrangement of the numbers is due to the fact already noted, that it is customary to compute interest at the close of the 28th of each month; and the page represents the work, not of a calendar month, but of an "interest month." At the bottom of each of the four sub-divisions of the page is printed "Interest per cent., $ -." At the close of the month the balance

at

columns are footed, and the interest for one day on the totals represents the interest for the month on the accounts. By the use of "short" leaves, cut at the top on the line just above the headings of the columns, the work may be continued for several months without transferring the names and balances.

Whatever form of ledger is used for individual accounts a trial balance should be taken once a month, except where the Boston Ledger is For used, in which case the ledger itself furnishes a daily trial balance.

the purpose of taking such trial balances, many companies use a trialbalance book, a form of which is shown in Figure 139. The open book may show the trial balances for one year, twelve columns being provided for the twelve months. By having some of the leaves cut short, along the heavy line just before the January column, the work for several years

Please examine balances and vouchers and report at once if any error is found.

FIG. 140.-STATEMENT OF ACCOUNT.

may be shown without rewriting the names; but in such case a considerable space should be left after the lists under each letter of the alphabet, for the insertion of the names of new accounts. Overdrafts are entered in red ink in this form of balance book: but some forms provide two columns, one for credit balances and one for debit balances. In many institutions, the introduction of the adding machine has done away with the trial-balance book, the trial balances being taken off on the addingmachine, which is of course a much quicker and easier way. These adding-machine lists are preserved by pasting them in scrap-books, or by filing them in envelopes.

An important part of the duties of the individual bookkeeper or of his assistant lies in the careful preservation of deposit tickets and of

checks. The latter are cancelled at the close of the day's business, and filed away alphabetically by the names of the drawers until the passbooks are written up and the checks returned to the customers. The deposit tickets, which are kept permanently by the company, are filed either by dates, all tickets for the day's work being filed together in alphabetical order, or alphabetically by the names of the depositors; some companies preferring the one method, and some the other.

The pass-books for all active accounts should be balanced, and the checks returned to the depositors as vouchers, once a month. The methods of balancing or "writing up" the pass-books have been shown in Figures 110 and 111. In practice it is found to be a difficult matter to get all customers to bring in their pass-books for balancing each

month; and there is always a considerable number of depositors who frequently fail to bring their pass-books when making deposits. These facts, together with other considerations, have led many companies to adopt the practice of sending monthly statements of accounts to all depositors, the pass-books being used merely as the depositor's record of deposits made. Figures 140, 141 and 142 show different forms of statements of account, those in Figures 141 and 142 being practically copies of the ledger accounts in the old-style debit and credit ledger and the balance ledger respectively. Some companies have the statements kept up regularly as duplicate ledgers. The advantages of such a practice

are twofold: it furnishes a check upon the correctness of the work on the regular ledgers, and it keeps the statements always up to date, so that the customer may be furnished with a statement of his account on demand. The plan also distributes the work of preparing statements throughout the month, instead of requiring it all to be done at the close of the month, as is the case where the pass-books are called in for balancing. If the duplicate ledgers are kept by a separate set of bookkeepers, a check is obtained against possible dishonest practices on the part of any one bookkeeper. Figure 1438 shows another form of statement of account, which is printed on the face of an envelope, in which the vouchers are enclosed when the statement is handed to the depositor.