This section is from the book "Banking Principles And Practice", by E. L. Stewart Patterson. Also available from Amazon: Banking Principles And Practice.
The cash on hand should always be a
To the Manager
......................................BANK. .............................................19
As a basis for credit with the above bank I/ we hereunder submit for your information the following Statement which, without any reservation whatever, shows clearly and fully my/our financial position, made on a fair and conservative valuation from an actual inventory taken on ...................191... . and includes all my / our direct and indirect liabilities.
DIRECT LIABILITIES ASSETS | |||||
Due to Bank | Cash on hand $ In Bank $ | ||||
Bills Payable or merchandise | Stock on hand, at cost, or under(Insurance $ _ ) | ||||
Accts. | Bills Receivable for Goods Sold | ||||
All other Direct Liabilities (exclusive of Mortgages) | Accts. " " " " | ||||
Other Bills & Accts. Receivable | |||||
Other Reliable Quick Assets | |||||
Total Quick Assets | |||||
Mortgages on Real Estate particulars of which see below | Real Estate,particulars of which see below,actual value | ||||
Surplus forward $ | |||||
Gain for year $ | |||||
Figure 38. (Front: - Upper Half)
PARTICULARS OF REAL ESTATE | ||||||||||
Description | Issued for | Assessed Value | Actual Value | Mortgage or other Liability | Equity in | |||||
Customers' paper discounted .............$..........
On other paper indorsed or guaranteed.....$..........
Other liabilities........................$-----------------; MERCHANDISE
Finished..............................$..........
Unfinished ............................$..........
Raw .................................$-----------------Valued at cost or market? ..........................
Annual amount of sales or turnover........$..........
Regular time of taking inventory and balancing books ?........
Inventory taken by whom ? ...............................
Are all due from customers ? ..............................
Are any due from members of firm, relatives or employees ?......
Are there any which you will probably not be able to collect? ....
Are all due for goods purchased ? ..........................
Are any due to members of firm, relatives, employees, or any other than trade creditors ?
Usual Terms of Purchase ................................
Are buildings well-appointed and maintained ? ...............
Is machinery equipment modern ? ..........................
Is anything without value, or not now in use included in this item?
Provision for depreciation, $...............................
LIFE INSURANCE $................
$................
$................
Amount of marriage contract, if any. $................
In favor of
Your obedient servant,
N.B. - If a Firm, each partner to sign under the firm signature.
Figure 38. (Front - Lower HalF)
PROFIT AND LOSS For Year Ending | |||||||
Expenses, including interest, taxes, insurance, repairs, maintenance, etc. | Gross Profit on sales for last fiscal year | ||||||
Gross Profit from other sources | |||||||
Written off for depreciation | |||||||
" " a/c bad debts | |||||||
Withdrawals by self or partners $ | |||||||
" for Salaries $ | |||||||
" for other purposes $ | |||||||
Net Profit. | Net Loss | ||||||
$ | $ | ||||||
IF A PARTNERSHIP: FIRM NAME_____________________________________________
GENERAL PARTNERS | SPECIAL PARTNERS | ||||
Name | Amount Contributed | Outside Net Worth | Name | Amount Contributed | Until |
Is Partnership Registered?
IF A LIMITED COMPANY: CORPORATE NAME___________________________________________
Date______._________________________________________________By_____________________________________
(State Officer's Title) Office Address .___________________________________________ Nature of Business_______________________________________
Location of Plants and Branch Offices__________________________________________________________________________
Figure 38. (Back - UPPER Half)
OFFICERS: ________________________________________President
_____________________________________________Vice-President
_______________________________________________Treasurer
____________________________________________________Secretary
APPLICATION To the Board of Directors of
THE_____________________BANK
---------------------------hereby beg to apply for a line of credit from the-----------------Bank, during the pleasure of the Bank, of._______________for the purpose of___________________________________________________________________________________________________________________________
____________________________to be drawn during_______________________________________________________________________________________
As security________________offer
H. Approved Customers' Notes to be discounted from time to time, not exceeding $
D. Direct Loan secured by________________________________________________ $
E. " " " Endorsements of___________________________________ $
F. " " " ___________________________________________________$
Standing of proposed endorsers or full description of security offered | ||
Name | Occupation | Estimated Worth |
Your obedient servant
N.B. -If a Firm, each partner to sign under the firm signature
Figure 38. (Back - Lower Half) comparatively small amount. If large, the reason should be inquired into, as this means either carelessness in financing or that some worthless note or bon is carried as cash. Practically all the cash on hand should be carried in the bank, and the balance maintained should be commensurate with the amount of work which the account involves to the bank.
Comparison should be made with the bank ledger on the same date, and if outstanding checks have been allowed for by an entry on the liability side of the statement, the amount should agree, otherwise the deposit ledger balance will be the larger; if the reverse, the reason should be inquired into.
 
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