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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

1. Cash and due from banks

2. Interest-bearing balances with banks

3. Investment securities:

1. U.S. Treasury securities

2. Obligations of other U.S. government agencies and corporations

3. Obligations of states and political subdivisions

4. Other bonds, notes, and debentures

5. Federal Reserve and corporate stock

4. Trading account securities

5. Federal funds sold and securities purchased under agreements to resell

6. Loans, less:

1. Unearned income on loans

2. Reserve for possible loan losses

7. Direct lease financing

8. Bank premises, equipment, furniture, and fixtures

9. Real estate owned other than bank premises

10. Investment in unconsolidated subsidiaries and associated companies

11. Customer's liability on acceptances outstanding

12. Other assets

13. Total assets

Liabilities and Capital

14. Deposits in domestic offices:

1. Demand

2. Savings

3. Time

15. Deposits in foreign offices

16. Federal funds purchased and securities sold under agreements to repurchase

17. Liabilities for borrowed money

18. Mortgages payable

19. Bank acceptances outstanding

20. Other liabilities

21. Total liabilities excluding subordinated notes and debentures

22. Subordinated notes and debentures

23. Equity capital:

1. Capital stock:

1. Preferred stock (shares outstanding; ____________________
                                par value $ ____________________)

2. Common stock:

1. Shares authorized __________________________

2. Shares outstanding _________________________
   par value $ ___________________

2. Surplus

3. Undivided profits

4. Reserve for contingencies and other capital reserves

24. Total equity capital

25. 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

1. Balance at beginning of current fiscal year

2. Net income to date

3. Dividends declared

1. Common stock:

Cash
Stock (percent)

2. Preferred stock:
   Cash ($__________ per share)

4. Prior period adjustments (list and describe all credits and charges separately)

5. Other credits and charges (list and describe all these items separately)

6. 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

1. Operating income:

1. Interest and fees on loans

2. Interest on balances with banks

3. Income on federal funds sold and securities purchased under agreements to resell

4. Interest and dividends on investments:

1. U.S. Treasury securities

2. Obligations of other U.S. government agencies and corporations

3. Obligations of states and political subdivisions

4. Interest on other bonds, notes, and debentures

5. Dividends on stock

5. Income from direct lease financing

6. Income from fiduciary activities

7. Service charges on deposit accounts

8. Other service charges, collection and exchange charges, commissions and fees

9. Other operating income

10. total operating income

2. Operating expenses:

1. Salaries, wages, and other employee benefits

2. Interest on time certificates of deposits of $100,000 or more

3. Interest on deposits in foreign offices

4. Interest on other deposits

5. Expense of federal funds purchased and securities sold under agreements to repurchase

6. Interest on borrowed money

7. Interest on subordinated notes and debentures

8. Occupancy expense of bank premises, net (gross occupancy less rental income)

9. Furniture and equipment expense (including depreciation of $ _____)

10. Provision for possible loan losses

11. Other expenses

12. Total operating expenses

3. Income (loss) before income taxes and securities gains (losses)

4. Applicable income taxes

5. Income (loss) before securities gains (losses)

6. Net securities gains (losses), less related tax effect ($ _____)

7. Net income (loss) or income (loss) before extraordinary items

8. Net income (loss)

9. Earnings (loss) per common share:^a

1. Income before securities gains (losses)

2. 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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