PASS BOOK. The pass book, or passage hook as it was formerly called, is given by a banker to his customer, and is for the purpose of showing the exact state of the customer's account with the banker. The method of writing up the pass book varies in different banks. Some banks reverse the entries in the ledger by placing the items which are in the credit column of the ledger on the debit side of the pass book, and the debit items in the ledger on the credit side of the pass book. Where this is done the first page of the pass book will be headed, " Dr. British Banking Co., Ltd., in account with John Brown, Cr." Other banks, however, make the pass book an exact copy of the ledger, and the first page of the pass book in such cases is headed " Dr. John Brown in account with British Banking Co., Ltd., Cr." The ruling of an ordinary current account pass book shows a date column, a column for particulars, and a column for the amounts, all credit items being entered on one page and all debit items on the opposite page. When one page is filled, both pages are cast up at the same date and any blank lines in either page ruled across with an oblique line.
The column for particulars on the cheques paid side shows the payees' names, unless the customer desires the numbers of the cheques to be entered instead of the names, and on the lodgments side the words " cash " or " cheques " or " sundries," as the case may be, appear, as well as any other particulars which are necessary.
Some customers prefer a pass book which shows their balance from day to day, and therefore some banks provide a book ruled like a ledger with columns for the date, particulars, debit amounts, credit amounts, " Dr. or Cr.," and balance. In such books the various items are entered one after the other as they appear in the ledger, and the balance may be shown daily or at intervals as desired. A book of this description is use ful for deposit accounts where customers prefer to have a book rather than a deposit receipt.
In whatever form the pass book is kept, it is of the utmost importance that it should be carefully and correctly written up. All
payments to credit should appear therein in the precise order in which they occur in the ledger, and the dates should always coincide. The same points should be observed in the entering of cheques which have been paid. It is the practice in some banks to 'rite up the pass books from the actual credit slips and cheques, and to compare them with the ledgers before giving out the books, but many banks write up the pass books direct from the ledger accounts, and in some banks they are afterwards compared with the vouchers. The system where only the pay ments to credit are entered by the banker in the pass book, the debit items being entered by the customer at the time he issues the cheques, is now out of date.
If an entry has been omitted, and it is entered out of its proper order, a mark of some kind is usually made in the pass book calling attention to the fact. Where a customer brings in a payment to credit after the books are closed for the day, the paying in slip should be dated by the customer for the following day and an explanation made to him, if cheques form part of the credit, that they will be dealt with next day. The date of the entry for that credit in the pass book should be that of the following day, when it actually passes through the books of the bank.
Where a mistake in writing up a pass book has been made, it should be ruled out neatly (not blotted out so that the original entry cannot be read) and the correction made. No erasures of any kind are permitted in a pass book. Where a banker has debited or credited the customer with an amount in error, and it is necessary to pass a correcting entry through the books, if the pass book has been in the customer's possession sub sequent to the date of the wrong entry and before its correction, the customer's atten tion should be drawn to the correction when it is made. It has been held that where a hook has been formally balanced after such a correction and the customer raises no objection he has assented to it. See the judgments in the case of Shaw v. Dartnall (1826, 6 B. LS: C. 56).