Page 67 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes
CUSTOMERS
NEW YORK BANK Check smailed
Backup Lines
Investing funds

LOCK BOXBANK
Seattle

CONCENTRATION
BANK
Daily
Security LOCK BOXBANK
Removal Phoenix
Instructions and information

CORPORATE RECEIVING AND

TREASURER DISBURSING BANK
Check Drawn San Leonardo Daily
Funding of Clearings

Vendors. Banking
Mail
Float Etc. System

Figure 1: Bhatt Enterprises Concentration Banking System
On September 8, Sushma is preparing his monthly report on funds invested during August.
Table 1 shows the deposits each day during the month. It also shows the book
disbursements: that is, checks written but not clearing each day. This information comes
directly from the ledger accounts of Bhatt Enterprises.
Table 1: Daily Deposits and Cheques Drawn, Bhatt Enterprises

For the Month of Daily Cheques Books
August
Deposit Drawn Balance
Starting Balance
3,20,000
1 2,150,000 1,740,000 7,30,000
2 1,340,000 1,765,000 3,05,000
3 0 0 3,05,000
4 0 0 3,05,000
5 2,330,000 1,292,000 1,343,000
6 1,475,000 1,628,000 1,191,000
7 2,567,000 1,555,000 1,202,000
8 2,300,000 1,432,000 3,070,000
9 1,278,000 1,606,000 2,742,000
10 0 0 2,742,000
11 0 0 2,742,000
12 2,879,000 1,666,000 3,955,000
Contd...

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