The general ledger, next to the cash book, is the most important book in a branch; in fact it is equally important, tho in a different sense. The cash book is the book of original entry, and conTELLER'S BALANCE BOOK AND RECORD OF CASH

Figure 21 tains a chronological record of all the transactions of a branch. The general ledger contains the summary or analysis of these transactions under the various headings, while its subsidiary books, the deposit and liability ledgers, summarize the amount due to or from individuals respectively. The general ledger is posted every day from the cash book, and contains all accounts necessary to show the position of a branch with regard to the business done under the various classifications called for by the government statement. As a matter of fact, however, the accounts kept in the average branch ledger are not very numerous and consist broadly of:

Assets - cash, loans;

Liabilities - liabilities to the public;

Office Accounts - profit and loss, branch clearings, etc.

The profit and loss and branch clearings accounts are internal accounts, and may be either debit or credit. The latter is the adjusting account of the branch with the bank as a whole, and varies approximately with the difference between its loans and deposits, as every branch either supplies funds to the head office or the reverse.

Loans are generally carried under two headings, loans and trade-bills, tho in a large city office they are frequently sub-divided into half a dozen accounts. This is merely a matter of convenience, however. In the same way the liabilities are divided into ordinary and interest-bearing deposits, etc. The form most generally used is similar in ruling to the current deposit ledger (Figure 22), with wider money columns and more space for particulars.