DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : G.Rajeswari.
Designation : Senior Lecturer
Branch : Commercial and Computer Practice
Institute : Government Polytechnic, Srikakulam.
Year/Semester : V semester.
Subject : Banking.
Subject code : CCP 504(B)
Topic : Customer service in Banks
Duration : 50mts.
Sub topic : Status of Pass Book entries
Teaching Aids : PPT, Animation
CCP-504(B).46 1
Objectives:

On completion of this period, you would be

able to:
 Understand the meaning of a Pass Book.
 Understand the meaning of Statement of
transaction

CCP-504(B).46 2
Recap
 In the previous class, you have learnt the banker’s
duty while opening bank accounts in the name of
Married woman, clubs, Joint Hindu Family.
 A married woman can open a bank account.
 While granting loans or advances to a married
woman, the banker should be very careful.
 The banker cannot grant loans to a married
woman except for her necessaries of life.
 A bank account can be opened in the name of a
Joint Hindu Family.

CCP-504(B).46 3
Recap
 Karta is the head of the family.
 While granting loans, the banker should take the
consent of all the major members of the family
including Karta.
 Clubs, educational institutions can open a bank
account.
 When the person authorised to draw cheques
dies, the bank must stop of operation of the
account.

CCP-504(B).46 4
Known to unknown

Banks offer the following types of deposits.

 Fixed deposits
 Savings deposits
 Current deposits

CCP-504(B).46 5
Meaning of pass book

 All kinds of deposit accounts are in the nature of

running accounts.
 So it becomes imperative for a banker to inform
his customers of the real position of their accounts
from time to time.
 For this purpose, a banker makes use of a small
booklet called passbook.
 A pass book is a booklet wherein a banker records
his customer’s account as it appears in his ledger.

CCP-504(B).46 6
Meaning of pass book
 It is called a pass book because it passes
between the hands of a banker and his customer
very often.
 It reflects the customer’s account in the banker’s
ledger.
 Thus it is nothing but a copy of the customer’s
account in the banker’s ledger.
 All the amounts deposited by a customer are
credited and the cheques paid by banks against
his account are debited.
CCP-504(B).46 7
Meaning of pass book

 The balance is shown from time to time.

 A pass book also contains the rules governing the
savings account.
 If the customer is a businessman and where the
entries are more, bank reconciliation statements are
prepared with a view to tallying the balance between
the pass book and cash book.

CCP-504(B).46 8
PASS BOOK

 A pass book may be maintained in the form of a

ledger account with debit entries on the left hand
side and credit entries on the right side.
 This method is not popular amongst bankers.
 Most of the banks follow a tabular form for
maintaining the pass book.

CCP-504(B).46 9
PASS BOOK

 Some western banks, having a large number

of customers on their rolls and a large number
of transactions, take Photostat copies of their
customer’s account and forward them for their
approval
 It saves the labour of writing out statements

CCP-504(B).46 10
Specimen of a Pass Book
State Bank of India. Srikakulam
S.B Account
A/c. No. 5314
Ledger No. 11
Ledger Folio – 17
Depositors Name :- Rajesh
Occupation :- Clerk
Address :- Srikakulam
Dr Cr
Date Particulars Rs. P Rs. P Balance Initials
2008 Jan 5 By cash 1000.00 2000.00
2008 Jan 9 By Cheque 500.00 2500.00
2008 Jan 15 To cheque 200.00 - 2300.00

CCP-504(B).46 11
Statement of transaction:-

 A pass book may also be maintained in the form

of ‘loose-leaf ledger card system’.
 In such a case, entries would have to be made by
means of book keeping machines.
 It can be adopted only by big banks.

CCP-504(B).46 12
Statement of transaction:-

 When such a system is followed, it becomes

necessary for the banker to send periodical
statements regarding the accuracy of the entries
made therein to the customers for their approval
and return.
 This periodical statement is called a statement of
transaction.
 These statements serve the purpose of a pass
book.

CCP-504(B).46 13
Summary

 A pass book is a copy of the customer’s account

in the banker’s ledger.
 Most of the banker’s follow a tabular form for
maintaining the pass book.
 A pass book may also be maintained in the form
of a loose-leaf ledger card system.

CCP-504(B).46 14
Summary

 If this system is followed, the banker sends a

periodical statement to his customers for
verification of the accuracy.
 This statement is called ‘a statement of
transaction’.

CCP-504(B).46 15
Quiz

1. In which form a pass book is maintained?

a) Journal
b) Ledger
c) Subsidiary books
d) story books

CCP-504(B).46 16
Quiz

2. A pass book is called so because of the following

reason
a) It passes between banker and customer
b) It passes from town to town
c) It passes from village to town
d) none

CCP-504(B).46 17
 Quiz
3. A pass book may be maintained in the following
form also.
a) story book
b) loose-leaf card system
c) final accounts
d) none

CCP-504(B).46 18
Frequently asked questions

1. What is a pass book?

2. Give the specimen of a pass book?
3. What is a statement of transaction?

CCP-504(B).46 19