FIG. 7.-LEFT-HAND PAGE OF GENERAL TRUST JOURNAL OR CASH-BOOK.

which cash is handled. It will be seen that the arrangement of this cash-book makes convenient the posting of the items to the three ledgers, inasmuch as a glance down any column shows what items are to be posted to the ledger in hand.

The three small columns at the left of each page are for posting marks. The first of these columns, headed "Special Accounts," is for use with those items that must be sub-posted to any other than the regular ledger accounts, such as rents, items for the Loan Register, etc. In the ledger a complete set of books is kept for each trust, just as the owner

FIG. 7.-RIGHT-HAND PAGE OF GENERAL TRUST JOURNAL OR CASH-BOOK.

of the trust might keep them for himself. Each item in the general cash book therefore appears in the individual ledger of its proper trust as both a debit and a credit. The columns in Figure 7 headed “Individual-Dr.-Cr." are for the marks of postings to these accounts. In the figure the entries are numbered for convenience in describing the entries: these numbers would not appear, of course, in the regular use of the cash-book. Thus, in the left page of Figure 7, entry No. 1 would be posted first as a debit to the cash account of the Smithville Bond Pool, and a check mark made in the Dr. posting column. It would then be posted to the credit of Syndicate Subscriptions account of the Smithville Bond Pool, and a check mark made in the Cr. posting column. Of the remaining entries on the left page, the debits would all be made to the cash accounts of the several trusts. The credits would be made as follows: Entry No. 2, to the Income account of the trust concerned; entry No. 3, to income; entry No. 4 to the Bonds account, and if the bonds are sold at a profit, the excess over the cost would be posted to the credit of the Profit on Bonds account; entry No. 5, to the Coupons account and to the Bonds account. In entry No. 2, the items would be sub-posted to the rent ledger under the account for each piece of propcrty, and the check marks of the postings placed in the Special Accounts posting column. In entry No. 3, the interest on the mortgage would be sub-posted to the Loan Register, under the account for this mortgage.

In the right-hand page of Fig. 7, the credits for all the entries would be made to the cash accounts of the several trusts. The debits would be made as follows: Entry No. 1, to Coupon account of the trust involved; entry No. 2, to the account of Mary Trowbridge, if remittances are regularly made to her; or, if remittances are not regularly made, to the Expense account; entry No. 3, to S. S. Smith, Syndicate Manager; entry No. 4, to Expense and Repairs accounts, respectively; entry No. 5, to Repairs and O. R. Gates accounts, respectively. The Repairs items in entries Nos. 4 and 5 would be sub-posted to the Rent ledger under the accounts of the properties involved, a separate account being kept of the expenses and repairs on each piece of property. It will be noted that a voucher is kept for each item of expense, the vouchers for each trust being numbered consecutively.

With this journal, as already stated, ledgers are used in which a complete set of "double entry" books is kept for each trust. The ledgers, which are preferably loose-leaf books, are indexed by tabs on the edges of the leaves, and after the tab index for each trust are inserted as many ledger leaves as may be required. The number of accounts carried for each trust depends, of course, upon the character of the trust. It may require the carrying of only Cash and one other account, such as Principal or Income. It may be necessary to add to these such accounts as Bonds, Stocks, Mortgages, Real Estate, Individuals, etc. Under this plan the cash account will of course contain a memorandum of every cash transaction affecting the trust, and it therefore serves as the basis

for rendering statements of account either to the court or to beneficiaries or to the maker of the trust. Some companies call this account the Bank account rather than the Cash account..

For these ledger pages any of the forms shown hereafter may be used. If only one form be used, as is practicable, though not entirely convenient, that shown in Figure 16 is probably the most useful, being adapted to different kinds of accounts, and containing columns for both debit and credit balances.

Inasmuch as the character of the business done in trust work for court trusts differs considerably from that done for corporation trusts and others, many companies, as already stated, divide the trust work into two divisions, and use different styles of records in the two divisions. Figure 8 represents a journal form used in the corporations division of the trust

department. The general arrangement of the page is one which is coming to be used extensively for various purposes both in trust and banking departments. Both debit and credit items are brought on to the same page; and the space for names and descriptions being in the center, the writing of the names of accounts is often avoided in cases where there are both debits and credits to be made to the same account. It also causes the name of each account to stand out prominently on the page. The object of the extra column headed "General Accounts" is to facilitate the separation of accounts which for any reason are to be treated differently from the regular deposit accounts, or of accounts which are carried in a separate ledger. For example, the total funds of the department are carried as Bank account, which is of course a general account made up of the cash balances of all the accounts in the department. These funds are carried by some companies in their banking de

partments, and by some are carried in other trust companies or banks. As shown in the figure, the total of disbursements for the day is credited to Bank in the General Accounts column; and the receipts are debited to Bank either at the close of the day or at convenient times during the day as deposits of the funds are made. Among other general accounts would be the interest account for interest received on the Bank account, Bonds and Stock account, if the total of these items be carried in a separate account, etc. The company from whom the writer got this form carries all coupon accounts in a separate ledger, and therefore enters items for coupon accounts in the General Accounts column in the journal. The second entry in Figure 8--that of the credit to "Auburn and Birmingham Traction Pool"-illustrates a use of the two columns. The bonds having been purchased at 80, are carried at that figure in the general Bonds account. The sale here recorded having been at 86, the profit of $240 is journalized in the Deposits column, while the amount at which the four bonds are carried-$3,200--is entered in the General Accounts column.

The next-to-the-last entry in Figure 8 illustrates a time and labor saving plan that is much used. A dividend of $48,955 is paid, the amount being divided between perhaps one or two hundred persons. Only the total is entered in the journal; while the items, taken from the stubs of the department's check-book, are entered in detail in the ledger. In case of a large number of credit items to the same account on the same day, a similar plan is followed, the details being posted directly to the ledger from the credit tickets. This plan subtracts, nothing from the completeness of the record, while it saves about half the labor otherwise

necessary.

It will be noted that although this book is practically a cash book, is is not, like the form shown in Figure 7, arranged in cash-book style. This matter is largely a question of personal taste, but the usage is in favor of using the journal rather than the cash-book style, the credits appearing on the right and the debits on the left, as in Figure 8.

The ledger for this department is preferably a loose-leaf book. There is so much variety in the nature of the accounts that must be kept that it is a decided convenience to have special rulings for the different kinds of accounts; and this cannot be done easily unless loose leaves, to be inserted as needed, are used. The leaves must be large enough to accommodate accounts requiring much space. A convenient size is about fifteen and one-quarter inches deep and eleven inches wide for the rulings, with such added width as is needed for the style of binder used. Figures 9, 10, 11, 12 and 16 show several ledger forms that have been found useful.

Figure 9 shows a form adapted to accounts in which funds are collected in installments or on "calls," or in which payments are to be made in several dividends, or in which either receipts or disbursements are to be classified. The figure illustrates the use of the form for an account involving the collection of funds on several calls. From this record it is

easy to ascertain at any moment the totals paid in on each call, the persons who have made payments on each, and the balance of the account. In a similar manner, where the form is used to record the payment of funds in several dividends, it easily shows any information regarding the account that is apt to be wanted. For ordinary dividend accounts, however, the use of Form 10 is better, inasmuch as the whole dividend is usually paid on the same day, and the complete account may therefore be at once placed on a page by itself. Where funds are to be disbursed, and a separate account is wanted of items paid on account of principal, interest, commission, expense, etc., this form is well adapted to the needs. Because of the various uses to which the form may be put, the several columns have no printed headings; but it is customary to have rubber stamps for the headings most used.

Figure 10 shows a ledger form adapted to accounts where not much room for description of items is needed. The record is kept in a very compact shape. The figure illustrates its use for dividend accounts. If the number of items be large, the account is continued on the right half of the page, shown blank in the figure, and on the other side of the leaf, which is ruled in the same way. If the number of items be small, two dividends may be recorded on each page. This is a convenient form to use for coupon accounts, unless a special form like that shown in Figure 12 is used. The small columns headed by check-marks V in this form are for use in case the work is to be checked over in a hunt for an error