Other Bonds Pledged To Secure U. S. Deposits (8)
Description
This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
Other Bonds Pledged To Secure U. S. Deposits (8)
As was explained, the municipal bonds of States, counties, and smaller divisions are eligible as security for such deposits. The bookkeeping process for these pledges is exactly as has been previously explained. If other bonds of the book value of $10,000 are pledged to secure postal savings deposits, the general ledger entries are:
Debit: Other Bonds Pledged to Secure U. S. Deposits (8) .......... | $10,000 | |
Credit: Securities Other Than U. S. Bonds (7) ................... | $10,000 |
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