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General Ledger
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
J Woelfel
(We recommend this as work of authority.)
The most
important accounting record of a bank, containing a summary of all transactions
of the institution including general accounts and controlling accounts
for the customers' ledgers. Every
transaction that occurs in any of the operating departments eventually
affects some account in the general ledger and in the ordinary routine
reaches the general bookkeeping department for posting to the general
ledger. Each general ledger
account (e.g., time loans) represents the aggregate of such loans held
by the bank and the total represented by the subsidiary loan ledger.
Whereas one hundred time loans may be made during the day and as
many entries recorded in the subsidiary loan ledger, only one posting
is made for the total (one hundred loans) to the debit of the time loans
account in the general ledger.
Usually the
general ledger is of the Boston or progressive type. Where the number of accounts is large, two separate volumes
are frequently used, one each for assets and liabilities. Postings are made to the general ledger from various posting
media routed to the general bookkeeping department from the various operating
departments. The postings
usually are made early in the day after which the ledger is proved.
The balances of each customers' ledger must prove with the corresponding
controlling account in the general ledger.
The general
ledger reveals the cross section of the business each day, and the daily
proofs thereof are virtually a series of instantaneous photographs or
moving pictures of the bank's financial condition and financial progress.
Each day
summary entries may be posted to the general ledger accounts from the
journals, registers, and other subsidiary records covering transactions
involving the assets, liabilities, and capital accounts as well as income
and expense accounts. The
latter are closed each month, following the preparation of adjusting entries
to reflect the accrual basis of accounting except for small items covered
on cash basis. The chart
of accounts in the general ledger for a national bank specified by the
Code of Federal Regulations (12 CFR 11) for reports under the Securities
Exchange Act to the Comptroller of the Currency is as follows.
BALANCE
SHEET
Assets
-
Cash
and due from banks
-
Interest-bearing
balances with banks
-
Investment
securities:
-
U.S.
Treasury securities
-
Obligations
of other U.S. government agencies and corporations
-
Obligations
of states and political subdivisions
-
Other
bonds, notes, and debentures
-
Federal
Reserve and corporate stock
-
Trading
account securities
-
Federal
funds sold and securities purchased under agreements to resell
-
Loans,
less:
-
Unearned
income on loans
-
Reserve
for possible loan losses
-
Direct
lease financing
-
Bank
premises, equipment, furniture, and fixtures
-
Real
estate owned other than bank premises
-
Investment
in unconsolidated subsidiaries and associated companies
-
Customer's
liability on acceptances outstanding
-
Other
assets
-
Total
assets
Liabilities
and Capital
-
Deposits
in domestic offices:
-
Demand
-
Savings
-
Time
-
Deposits
in foreign offices
-
Federal
funds purchased and securities sold under agreements to repurchase
-
Liabilities
for borrowed money
-
Mortgages
payable
-
Bank
acceptances outstanding
-
Other
liabilities
-
Total
liabilities excluding subordinated notes and debentures
-
Subordinated
notes and debentures
-
Equity
capital:
-
Capital
stock:
-
Preferred
stock (shares outstanding; ____________________
par value $ ____________________)
-
Common
stock:
-
Shares
authorized __________________________
-
Shares
outstanding _________________________
par value $ ___________________
-
Surplus
-
Undivided
profits
-
Reserve
for contingencies and other capital reserves
-
Total
equity capital
-
Total
liabilities, subordinated notes and debentures, and equity capital
Changes in
the undivided profit account shall also be reported, furnished insofar
as practicable in the following detail as of the end of the latest fiscal
quarter.
Undivided
Profits
-
Balance
at beginning of current fiscal year
-
Net income
to date
-
Dividends
declared
-
Common
stock:
Cash
Stock (percent)
-
Preferred
stock:
Cash ($__________ per share)
-
Prior
period adjustments (list and describe all credits and charges separately)
-
Other
credits and charges (list and describe all these items separately)
-
Balance
at end of interim period
Form F-4,
Quarterly Report, of the Comptroller of the Currency calls for the following
income statement information for the latest quarter and for the fiscal
year to date, both also shown for the corresponding prior year.
Summarized
Financial Information
-
Operating
income:
-
Interest
and fees on loans
-
Interest
on balances with banks
-
Income
on federal funds sold and securities purchased under agreements
to resell
-
Interest
and dividends on investments:
-
U.S.
Treasury securities
-
Obligations
of other U.S. government agencies and corporations
-
Obligations
of states and political subdivisions
-
Interest
on other bonds, notes, and debentures
-
Dividends
on stock
-
Income
from direct lease financing
-
Income
from fiduciary activities
-
Service
charges on deposit accounts
-
Other
service charges, collection and exchange charges, commissions and
fees
-
Other
operating income
-
total
operating income
-
Operating
expenses:
-
Salaries,
wages, and other employee benefits
-
Interest
on time certificates of deposits of $100,000 or more
-
Interest
on deposits in foreign offices
-
Interest
on other deposits
-
Expense
of federal funds purchased and securities sold under agreements
to repurchase
-
Interest
on borrowed money
-
Interest
on subordinated notes and debentures
-
Occupancy
expense of bank premises, net (gross occupancy less rental income)
-
Furniture
and equipment expense (including depreciation of $ _____)
-
Provision
for possible loan losses
-
Other
expenses
-
Total
operating expenses
-
Income
(loss) before income taxes and securities gains (losses)
-
Applicable
income taxes
-
Income
(loss) before securities gains (losses)
-
Net securities
gains (losses), less related tax effect ($ _____)
-
Net income
(loss) or income (loss) before extraordinary items
-
Net income
(loss)
-
Earnings
(loss) per common share:a
-
Income
before securities gains (losses)
-
Net
income (loss)
a
The per share amount of securities gains (losses) may be stated
separately. If extraordinary
items are reported, the per share amount of income
before extraordinary items and the per
share amount of extraordinary items shall be
stated separately. When the reporting bank is
a wholly owned subsidiary (except for directors'
qualifying shares) of a bank holding
company, per share data shall be deleted.
A statement
of cash flows shall be reported as follows, for the fiscal year to date.
Changes
in Cash Flows
Cash flows
from operating activities:
Net income
Adjustments
to reconcile net income to cash provided by operations:
Provision
for loan losses
Depreciation
of premises and equipment
Amortization
of intangible assets
Deferred
income taxes
Gain on
sale of investment securities
Loss on
sale of noninterest-earning assets
Amortization
of investment security discount
Increase
in accrued income taxes
Increase
in accrued interest receivable
Increase
in accrued interest payable
Net change
in other accrued and deferred income and expense
Net trading
account activities
Net cash
provided by operations
Cash flows
from investing activities:
Purchases
of interest-bearing bank balances
Maturities
of interest-bearing bank balances
Net increase
in federal funds sold and securities purchased under resale agreements
Purchases
of investment securities
Sales and
maturities of investment securities
Net increase
in credit card and other short-term loans
Longer
term loans made to customers
Principal
collected on longer term loans
Capital
expenditures
Proceeds
from sales of premises and equipment
Net decrease
in other assets
Business
combinations
Net cash
used by investing activities
Cash flows
from financing activities:
Net increase
in demand, savings and money market accounts
Proceeds
from sales of certificates of deposit
Payments
for maEagle Tradersg certificates of deposit
Net increase
in federal funds purchased and securities sold under repurchase agreements
Net increase
in other short-term borrowings
Proceeds
from issuance of long-term debt
Payments
on long-term debt
Common
stock issued
Dividend
payments
Treasury
stock purchased
Other equity
transactions
Net decrease
in other liabilities
Net cash
provided by financing activities
Increase
in cash and cash equivalents
Cash and
cash equivalents at beginning of year
Cash and
cash equivalents at end of year
Noncash investing
and financing activities:
Addition
to premises and equipment financed by long-term debt
Common
stock issued upon conversion of long-term debt
Common
stock issued in bank acquisitions
Transfer
of other real estate assets
a
Historically, this statement has been prepared primarily from a
comparison of period-end balances.
The bank may, at its option, prepare this statement using average
daily balances for changes in asset and liability accounts.
If the use of the average daily balance method results in the presentation
of data which materially differ from those which would have been shown
if the period-end method had been used, such differences shall be disclosed
in a note to the financial statements.
b
Sources and applications of funds shall be shown separately by
amounts when they exceed 5% of the average of total funds provided during
the reported periods.
Pursuant
to the requirements of the Securities Exchange Act of 1934, the bank will
duly cause this quarterly report to be signed on its behalf with the name
and title of a duly authorized signing officer.
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