A Manual of the Law and Practice of Banking in Australia and New Zealand

Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: [12] CHAPTER II. Pass-books And Current Accounts. 1. Pass-books. pass-books. When a customer opens an account at a bank by paying in a sum to his credit on an ordinary drawing account, he is, if he desire it, presented with a book, called a pass-book, in which are entered the amounts that are from time to time lodged to his credit, and also the amounts that are disbursed by the bank to meet his drafts on it. On the left page are entered the sums which he has paid in, and with which the bank is debited, and on the right the payments which have been made by the bank on his behalf, and with which it is credited. The book is made up by the bank clerks whenever left for that purpose, and the customer never writes it up himself. current The entries in it are taken from another account, which is kept by the bank in a book called the Current Account Ledger. In this book every customer has a separate account, consisting of two columns on the same page, namely, a credit column and a debit column. In the credit columnare entered all sums received by the bank from him or on his behalf, while the debit column is posted from his cheques or drafts which have been paid by the bank. In the Current Account Ledger, in short, the customer is credited with the amount of his deposits, and debited with the amount of his cheques. The pass-book is a copy of the customer's account in the ledger, but with the sides of that account reversed. Thus the credit side of the ledger account is the debit page of the account in the pass-book, and vice versa. The reason assigned for this in Gilbart's work on banking, is that the ledger is the bank's account against the customer, and the pass-book the customer's account against the bank. Entries in the pass-book are pr'mui facie, but Pass-book . ...