Besides the several books above described, which constitute the book-keeping department of a bank, others are necessarily kept for the record of such information or memoranda as required to carry on the manifold business of a banker.
It is not possible to state the exact kind and number of such subsidiary books which the banker will set up in accordance with the requirements of his trade.
The set of such books must, however, necessarily contain: (a) a letter book, that is, a copy of all letters sent from the bank office; (b) an advice book, containing directions and memoranda from one department to another of the bank on matters relating to their respective branch of service ; (c) an interest book, wherein separate and independent accounts are kept, showing in what proportion an interest was derived from, or paid, on each branch of the usual daily operations, such as discounts, loans, deposits, etc.; (d) last but not least: a character book, which the banker must keep with the greatest accuracy of details, and extend to the largest possible number of the merchants and tradesmen of his district, both for his own guidance in discounting bills or granting cash credit, and for the information of his clients and correspondents, who may have recourse to him for a confidential hint on the degree of confidence to be placed in a trading concern.
The regular closing of books takes place with the general balance, when not only the exactness of book-posting is tested, but the profits of the bank are ascertained, to be divided afterwards among the partners or the shareholders.
The operation is carried out yearly or half-yearly, according to the custom of the bank, and it consists, as in ordinary book-keeping, in drawing up a general statement of all the assets and liabilities of the house.