Accounting Record In The Books Of Bank

In the book of bank, accounting record is made according to Slip System. Following books are mostly used in Bank accounting:

• General Cash Book;
• Sectional Cash Book,
• Customer's Receipts Book;
• Counter Payment Books;
• Cash Balance Books;
• Bills Payable Register;
• Bills Discounting Register;
• Transfer Journal;
• General Ledger;
• Current Account Ledger;
• Saving Account Ledger;
• Fixed Deposits Ledger;
• Investment Ledger;
• Loan Ledger;
• Safe Deposits Vault Register;
• Bills Register;
• Securities Register.

Slip System:

Double entry system of Book-Keeping is adopted in a bank. For accounting Slip System is very popular in banks. Records in accounting books are made only on the basis of slips. When a person deposits amount in a bank, he has to fill in pay-in-slip. The concerned officer signs on its counterfoil and returns it back to the person concerned. The portion of pay-in-slip which is retained by the officer is sent to the cashier. Cashier makes record in the cash book in its basis. From cashier this slip is sent to ledger-keeper. There customer's account is credited on the basis of this slip. Ledger-keeper sends this slip to the clerk who makes entries in the Pass Book. This method is also adopted for transferring the amount from one account to another. Slip system of accounting is also called Unit Media of Posting.

Final Accounts of Banking Companies - Preparation of Profit and Loss Account

The Profit & Loss Account of a banking company has to be prepared in Form B of Schedule III, attached to the Banking Regulation Act. As stated earlier the form has been revised w.e.f. 1st April, 1992 and the Profit & Loss Account of a banking company for the year ending March 31, 1991, and onwards has to be prepared in the prescribed new form as Form B of Schedule III.