ACCOUNTING AND OPERATIONAL TECHNIQUE IN STATE BANKS OF THE USSR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00039R000200060027-5
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 458
• Document Creation Date: December 22, 2016
• Document Release Date: March 28, 2012
• Sequence Number: 27
• Publication Date: July 1, 1952
• Content Type: REPORT

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Operativnaya Uchet i Technika v Gosbanke SSSR
(Operationa. Acoounting and Technique in State
Banks of the USSR) Moscow, Gosfinizdat, 1946!
Russian book,
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.. ?nc;w c~uesta.ons elucidated an
these are the most impoxl..ant o.~ the
antia7'
tl~~.,. t~?~e most s~,b,,?t off
.the present edit:L? Together with tbis a
ks made wi'th xe:Eerence to the
.c,irs r ?ations and. cra,ta.ca~, remarks
edits
the su~~e dilly
~ ~ taken into accou.n~'~.n , ?i ~i s
.t edition have also been
tion.
? ?red cansidex's,blc revi.s:i.o~~i. ands to
These corisidex's,t~-ons required
everthe~
rrhe pia' o:C the book has n
1 ik.e ?the first edition, it
some extent, additions as well.
retained, to the extent tr1a
s S been for .., ~e
e ?~~it~r~ ti~l.e current syllabus pax ~
has been written in a~ cordr~nc r Bank~t
du.re and Accounting in the State
course. "~)peratinprocr
w
be~.. he Credit ;aconomy. Due atten
?n? r n?iven by the lns~,itutes of the re .tc;d
, o
the sequence of tre;a~traent of .~ the rc e
Lion has -thus been p~.1d to t ? ? and Settle
and rganiZat~ion o Credit a
d:i.scip Theory ht re~'ex~ence has
To avoid duplication on1.i slid
kin~; opcz`atians ? So as not a to
been made to the econam~.cs of
to
only
s it 1~.as been necessary not only
crease the bulk of` th.e book, which
.,.~r ~: treatmerL?t of a n'uznber of c~uest~.ans,
x?wtairl the breve ~J a
Were a ?'rst edition, but also to sub je ct them also condensed in ?the ~a. p
well as to dispense with ~, cea rtain am
to Further ~,bbrev~.atlan, as especi~
?' e material f r 1Le first chapter has been
oun?t of lustrata.v
ally condenseds for even a short
development of the operate and
Only th.e most
had to be left out.
of the Credit Faculty s ,
sup
ing.
special course is
Faculti8S of the State Bank
small number of operabi.ons
descriP~ian of the histor1cdl
aCCOUf'ting work of the State Bale .
general .idea,
essential for
account
is given of me chaniZ ed
given subject by the Accounting
n;tl~i
i ,
In view of the relati 'elY
institutes.
>ected with capital resources, capa.M
cony
I
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as
tal eand s capital expend i.tur~ a ai: the ~atate i3ank, diCUSon
1a'e cts k~s~a been candenscd. The theme ttj)ocurneftaXJ
and of Ua,GSe six ~
aud.tingn was x~ot iricl.udd in the present edition for the reason
that a separate brGch ' n;~ ~ Work in the System oi: the State
~.~rc ~udi.t:~.
tank was
isaued in i9)49 ~ which treats ti-us sub jc ct in detail.
On the a'ther hand, speci~al attcntiox~ has been paid i.n this book to
tk e 5 ...,ena r.then:i. ~ ?.n~, g of internal (intra~bank) checka, which asst re time-
excruti.or1 of the operations and completion o:E' the
ly and. accurate
bookkeeping work.
The separate chapter's have been 'rlritten by the jojlowing
authors
M. Bo TuSlavskiY; V, VII, VIII, IX, XI, XIII, XIV, XVI
? ~
and XVII;
Ya. B. Greben; III (xcept for the sections on machine
account which have been written by Mo V, BoguslaVSi;.iy. ),r, and
~.ng, XII;
A, A. proselkov, I, II, IV, VI, XV, XVIII.
Critical ~ l suggestions arid. remarks on the present book are
i ' ~,ca
1qucst They should be addressed to the Gos inizdat, I1ioscow,
,3 d.
rc,
ulitsa CherniShavskiY,
At the moment the law was promulruated on the trrjnsformat,an
the Cotes.~i ri l of peop? leT s Commissars USSR into the Council of
Ministers Uu ~S,SR, and the Councils of Peoples S Commissars of the
Union and Autonomous Republics , into the Councils of Nanister s of
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the Ux1aar~ and " ufO111Q1~a 1ZeI)11Di9.Ca ,
. ~~.'~~.Q
tCCh~.a~C~,~. ~~aasan5
:b
om a.etaly made up arit() pages.
Iba~,d~ been ~ ~ ~
law co ~a~.c~ thu5 na t 1) a made in
~.e Cp~'1~ECt'LU7a by TGasOY1 q.C 1at ' UI1 O:E
.. the changes COr 1eCwitki the
tk~a book. ~a.l~~~..a~':~-''
, were not reflected in 'tie boOk0
cCrta2n r~epar-~ ~mera,ts
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CHAPT1~R II
The L3 Lance Sheet of the State Bank.
General characteristics of the State :13a nk balance sheets
2. Classification of baJ,ance-s}ieet account;
3 A Ciassificat i.on of nonba1ance5l1ee t accounts
L. Short characterization of the accountsumbering of
accounts. E'orm of the balance sheet
I~ ~Y.1.. f r~r lVwili'l fu^i. ,P~n'1p } w ^:?,f r '4 :'dLL V~ 1:.1yi~i.Fr nit ri~?J.rR'illArtr r dr id+VSid 4t ^I Alklu :~ r rli,.e,+i, i !ti rr .r ry "G t f'n
r "rJ' d i ~
r ,,,..t ti.I~t!Yt;ixr~r,a.~~:rrbae M~~~w~~r~~a~Ja~3^dr?fakaR;c>'d ~t~ rl
f/ 1(+ ,wA'~'a.'a7 V (Inlix A f jlw"' ' y"f kII ^....:i I df IV~XI '7 rr-01 yt. ?~fP, fr ( r1 JGYLJ7: i r ', y t l tr' Y!i*v I n ..
I fr?%dn W.T ?1Vrr
ni+ vr ~,
~c a ~~;d,7,frr t!}ti~` ~~";~ylY4 7rr~",rCt'~J c~ r~J' p~ ; I>Ih;W ~yyC~ ,U {,
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caaPT1RXV
~~ o~ Aaoou~ z~ ~VA,CUAT
-~~ ~A~AGE CAUSHD ~ THH BAR
STATE '~~~? zNV~o' o~
OF
accounting r?coxds entirely
le construction of
01' patl1 10 st through militY operation,
in the evacuated officeS of the State Bane
2. Reestablis} of the accounting in State
~?n~. -
s reSUmtng operations in regionim
Banc office
from the German-faSoist invaders
liberated
3. accounting of the damage caused to the State
,
Bank by the Ge man?fasciSt invaderS and
and their accompliceso
GHAPTER xvi
A(;COUNTING
THE BAN1
C~
Building accounts
operatin inventOT7 ac counts
6
operating material accounte
Capital expenditure accoufta
y ire P~r~ ~ , ~ ~
uuu40'J e~l~in'' J'~i4 a ^ !
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CHAPT XVII'
DBiTS OF THE BANK
G~IPTS , ACID _
Unt of interest, charged or
haracter X14
;pfd by the bank
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O) I
2. Nature of the bank's receipts and disburse.
ments
3. Administrative and management expenses
L Control of the closing accounts
~o Deferred expense
CHAPT1RXVITI
RBPQHTS
Significance of reports
20 Periodic operativewatatistical reports
3o Periodic accounting reports
4. Preparation for drawing up the annual repo t
The closing entries and the procedure for
making them
Transfer of balances to the centralized
accounts
The Profit and Vass Account ( accumulation
and depletion
Drawing up the annual report by the State
Bank branches
,o , '
, 1 1 L ^ a'l~~k,~i7d
b4~r ( f~ ,1 yh
I t
e ' t t~
br
9 ir~i J ~r7 ', ~1ati :
`;j +4 1v,,^~ C,r,nfh
) ,! i k~ltipi
,r4 ip
. ? ,
' b
. jy,apl s u'
~f4f r f f.11!'
~a
9. Dra~ring up the consolidated annural reports by
the regional offices of the State Bank
10. ' Drawing up the consolidated annual repo t of the
State Bank
i yil ;.? jr., i
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CHAPTER I
GENERISTICS OF THE A ~? NC..
A-- CI~AICT 4
~w i6
~ . PI~~ AD OPEI1TING
. , ~ T~-a INK Aldl~ THC~ ~5`~RUt~r~'UR~ Oh ~Ta ~'~,~,,..~ ,.~.~,1~ ~.
NCiPM~ FUTURES IN TD UEVELOPI?NT OF TH OpERATING A)
jll
i\CCOU:NTINC' W()iZK OF TIII~~ STATE BAK IN RECENT J5
~
I~TY1e State B ik is an jrnmense, wjde bx anching apparatus of our
.s a ra.zrtary importance for t he dev~elop~
financial system4 Its woxIs p
r ~~ conom~ espec~! arl;l.Y for the development of
ment of r~he ndt .anal e 1 ~
. ent of the goods tuxno~vex, and for supz,lyizig
trade ' for the develo,...~l~t
~? eas with. rnanufactla.xed. goods and prQv1iOIS ."
both ui~Uan' and rural ar
yov, Qefare -bhe joint session o? the Soviet of
('14~. ~I. ~oloG Speech the Union and the ~ Cain~c ia_ of National.ities of l~ January 1938.
Stenographic report, pp 6-7, Parti ztdate ) In view of the jmmense role of the State Bank in the nati.oz~al
economic ,e of the country, and considerg ~.b necessaxeconomic life
degree of independence, 'L}.1e first sess~~.on of
dob~ it with a greater ~
the Supreme Soviet USSR in January 1938 detached the State :Bank
froln the 1 eople1 s Commissariat of Finance ad subordinated it di-
avnarkom of the Uiiiono (According to the decree
rectly to the S
of 22 May 1946 of the Council of I~j.isters USSR, the State Bank
is t~finister of Finance USSR, and the Chairman of
assigned to the ~:.
the ,Administration of the Stake ;Bank is the ViceMMiflis.tex of
Finance USSR;
.tic grow h cif industry and of the whole national .econr
Dray, The the g improvement t in the organisat:t;on and technology o production,
~'ovemen
:7 ) yi 1 i + + f +Y ~11~^9~' 1+Pj t~?ik+~r~r1'f'F + + 4i~i
-114.,
+i rl +1~iq ^{Ff7i1{iFTf, ii~01~$k9,:~t~icr ~irj IY GVM1 ~'~d~GF4`+C''~YA~)IhdljzN },t r~Fti+l rC~i'3'r TS yy`fl'~?Fi~1 I i~q ~~,+
+++ Gr:l i r~~i+~Jli {I.~~aPJ~la~t~ ~~ ~~~~yF~ ~~~?' ~~~h?t ,~?~~~1 y~ ~pt~l k~l`?~'~i~ ; ~~YFI t~ V~j?p ?f~tign~1+ ~,. ~r I~f~
itr ++1 iA'' "+I ti~~ 7 +~4 +v~IN~ 1 ~? P~J;~+4?"! r+~i+` i? dt ?n iin guar dal
7
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During the period from r~ 193;-1939, a series of Government des
crees were success'Lvely issued, providing for the reorganization
of the operational and accounting works These included the decree
of the SNK USSR of 8 June J.93.5, "On changes in settlement practice
in the inter city freight turnover" the law of L. June 19369'tOn
changes in the system of financing the turnover of goods tt 9 the
decree oi' the SN'K USSR of 29 July 1936 trOn bookkeeping work and
balance sheets of state and cooperative economic organs and. enter-
rise&'; the decree of the SNK USSR of 1~ August 1939? "On control
p
over the expenditure of wage funds by budgetary and khozraschet
organizati.onstt, and others.
World War xT demanded . the radical ' reorganization of to .
national economybr war, so.as to render the maximum assistance
1. (.I^.~ro. ~. If. ,,,)rf M:4.':,f~ .4f~'~fi~~~~r~~f?.g~. u`~7v, r `y .. ~J~, ~a~~,""~~~~..?l'~`.d ~' ~tl, .. ~ 4h.~~~~~~ ',~'i. a Pik, '~ ~ti ~ i', .,
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the increase in the pxodu.cti'v'ity of labor on the basis of the
further development of the Stakhanovit( raovemE,nt and of the
siren tY~c~nin; o.C labor discipline, and the development of trans-
portation - all these i'acbors favored the growth of nat.~.on&- in
cornea in connection with which the t~zrriovcr of the State Bank
naturally registered a sharp increase as well.
The State Bank as it becomes graduaily,transferred into an
apparatus of general state accounting, must by all oi' its work
encourage the fulfillment of the national oconomic plan, in ex
erting its credit influence upon production and distribution. In
so doing, the organization of procedure and accounting of State
bank operations must "be exemplary to assure the efficiency of its
work0
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I
ncc~' a a~~~'to conquer
aG~1 G'~p~'fl~a
'~~ox~~ and ru~7~~~' w eGeSSa~Y ~o an~xaduas
to the ~~ ~ ~,~ as a:~~Q n
"oe~ ~c~%Q~'d~,~.~ ac~? o~
the ha're~'u~ '~ unL'iz>.. and oexa. ~
Qchan?~e$ ~'n' the aceca
a n~~nt%ex'
e ,
the 31ate ark rlnnGnae Q
he state i3~,~al( d~.d an x.
.~. ,e1~va.ce or ~lle
x'tn WorA 'War II U
WU 111 px?d and ccoL
~.'~'acu?`~
fed va.~? he xl~ Fleet, ~nCe o~;~~,ce Qn~cx'"
a? un;in,Lex,xupted service or c
Fleet, , a~~n~.7a~,iQns ~e~ux~l
Ax'~J
cl a1. ~ a se;~v:Lc.a ~ ;Co ox~
x da.~s e
~ and a.n;.,u't~.ans y an I1i..L~.ex:~te ~ar1
~x~SG~ ana xe,,d x~am
-to re e~.~n..
~a5ur.e5 were ?~,alsen to
of the Waxs ra~ . : rai ?~ax
From 'r,~thp very ~.,c.,cox'd. ] ~.n ~~Ylt~ z1arre a
a:~ the acc?x xe the dan~,ex
an~ w~1G
acCv) ~.I.,.L1aTJ85 c1Q* e to tie
}
ac't~x,cs ~ d ?~V eepeca.al.7:y gxcat. fin~i uc
. d arc .re laS x,aceduxe for
off' air ra an r ~ir~~e ~? avcxn ~lle p
_ons ,.
out a't ~;~~e a7t~.e Q e
or
acco~~~in` recox ,..
paxtia7Wex' ,e Warked ryd.s in cape of ~0~,a1
1e x~ econa~x~xcaI1 '
~ a x'e~.u~.x~ed eeup a eeax
....
~,he dacwnenT1~ . - , Ranh a5e.e~
~-?a ~ ?of Y, he , r~~a1 ,e
ae ~ec?~,aan T~ O fl
, ~~ e~~ah:ll.. a~
e balance ohee~ ? CU w?bb xecax, not raa. UI, r
or op~raons 5~ae Ban
tr end .Lea 'i,Yle
p'1C11'~"' S ~ 'GY1e WC,x' ?
up ~~yn
d5 ~-n~aa. ncd
dux a ray ~ accow'r-~ N o 2~8 , tit~e~
eso.F r~~abl~ arlci 1iab.~ ~1iY .ed 5-ate dank es~ab-~
of a].texrna~~.n~ Ce a~
~~r ` xeeaux' and credis of eVacu
deb ..t$ vaJ.uab ~ ~ ~ and
-shme~series of accounts ~G rci'lec~ the ..
~xarlr the ane of rni~..~a'~'~ ~ opera
l3.sY~.en'~s and a series
Y ~n~nr~ ~,eva~ f.
do cum~n~s xelna
in couee of evaeua~a.one
-~~,ans or des ~a^oJed ~~'
ank had The pex'fox^m a
~ ? ~ '
~.ve Worl~, akarig a
~Yxe rear i8
ax'ge am?urit of 'f'jcee of ?ie ate ~ vex
n~ and opera
vex 1. c,vcaun~i
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 i~l~~k~l,',~i?
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the assets and liabilities of tbL evacuated departments, and also
the documents pertaining to the clientele o tbesc evacuated de'-'
partments, reestablisil.in their activ;Lty at the location of the
State Bank office accepting such accounts and documents,
pursuant to the directive of :Wiarch l9)-i2 of the SNK USSR,
No 229, fQai the reestablisiim nt o1 accaunti ng and reporting i.rr
regioma liberated from the German-fascist occupiers", special
.instructions were issued to the localities covering; the procedure
for reestab1i thnient of accounting and reporting by State Bank of-
fices in the liberated regions.
Ala
The manual contained a special chapter devoted to the open-.
e.
ative and accounting work in evacuated and r /acuated State Bank I
i
offices (cf. Chapter XV).
:cri 191-~3, pursuant to the instructions of the;traordinary
State Corirnission "to assess the damage caused by the Gerraan-fas-
cast usurpers and their accomplices to state, cooperative and public
enterprises, institutions and organirlationstt, directives were worked
out and issued to the State Bank offices on the procedure for deter-
mining the losses caused to the State Bank both in regions temporar-
ily occupied by the enemy and tliase suffering from enemyi air born
bardment, artillery fire, etc. Directions for estimating the dam-
are caused to the property of State Bank personnel in consequence
of evacuation and ,evacuation. De=tails. are :given in Chapter XV.
The victorious conclusion of the war has placed new tasks
before the State Dank, the accompl.ishmenL of which will ,to a large
^ i1 .5,...1 nt(,;~r , 'h',,~"fi ,'r+4 "~ U11",1'Ih IJ+"~rf+aYYb.'~I +y'5~11111~L'iJ"v Y+~~+ F _ ~~'~~+ ~r:,;7p )a 7 ~ 1FV 1 ,.
ifil''1' ttP ""r ~ ~f .i l=b~:11 ki~Y{","+44~. ~7~1{~~+~I f"f 7;i P '~ Y.dG~ the - ~.
ccottnti1Tg factory which handlea the dccouTTt
~~o,~ cow mechanized a
the terbranch transfer and the operations for the
ink; for the ~ ~tato ~3aTil~a is subordj.~~atcd to it. The
Moscow city affa.ces ai' the ,e
. ublica Kray and Oblast hegional Of-
c~~~ief' boo~(kcepers of the Rep
einoved by ~bhe Chairman of the 'Bad on the
f'ices are appointed and. r
chief 'aaa1ikeeper of the. Head Office.
recornmendatioTZ of the
The thief' Auditor' s Department is headed by the Chie:C
Audi to x whose appo in.tment ..i is 'confirmed by the. Sovr!arkom USSR
. 'f the ~o and of the Mate Bank
on' the. no?i7.z~ation of the Chairman o
e audits 1e ~Hepubl; c 9 '~~ray and Oblast 1~eg.Lana~.
~l~e o,pex^at~.ons ~ Of ~ ~~
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c_F
I
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0 6,r qn,
~I 4 i of Po ^~~.
~ n 4
if ? It jii ! off ~ ~ It l $,y!
PI) !U; 1 I ?.+UIGtY IH9 ~ ~f1 7
.. .k1, u...
are di reotly subordinated ?to ?tlhe 1iead O? fice.
's I)e )artlil0nt 1sa sertct i.t$ repreSEntative;s
'ah:l. ,~
~J1lel'E neCeSSclry
? . of the State :i~an.k.. The s.eniar a~tr>~da.~
to audi.?t ?tk~e local. bx ~tincl~e~~ ~
tors of lbe Republic, .aiRepublic, Ic~'ay and U~al.a,sregional of'a`'ices report
directly to the Chief A1.i(iitor.
The Head 'i~'?'ce of t):ie State Bank alao has a number of other Head U.~.~.
a.ndcpendent Depar?Lr~ ~ ~end !s and Sections, wh:LCh operate cazl a functional
, and import organiZati ohIs and arrangixlg settlCM
l~aS1.u ; ~'1r1c~nC:LI1~ export
men?ts with foreign Countries? supervision weer the e,pendituz'G of
~
n. ani.uation,l and i~ c;st~aating work; capital constru.c~
wage funds; oa.
the State 'Bank offices; furnishij:lg various operating; sUp.,
?tian for the ~.
plies ; carrying' out, building .. e:>.^at:i.on and mana~;emen.~t for the bank;
:.libuilding operation
r signnten.t of cadre persofnel, etc.
t~~a._.ng cud a
al DeZaartment of Field Office S was organized in con-
Cta..on with ~, special
the proviSion of banking serviceS for the Red Army.
ne with
in action a1~d the Fleet, during World War II, and handled the or
k azLi7ata.on of such offices together with the issue of instruCtians
to them ~id doing their auditing, as well as the comprehensive
book keep ing operations for the entire field network.
Field Network ~ r consists of pegional Field Offices, Field
The ~ .,.L
Branches and ]'ield Tellers.
ces of the State Tank handle the and
The Fa.e1.d Of fa.
aCCCU.nta-ng s of the military (or nasal) units of the Red
aeV1.CE
Army in action and of the Fleet, and also for the Field Yost-
offa.ccs. They provide credit and settlement service for. :the
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1 ,
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field ? ? capt~.~currency a~ad w~,th
and conduct operations wfield 1'~ s o~ rpi~.itary ~~ex'~-
y and accePand pay, out depa
~~xc~ca.raus Taeta~.~ ~
sonnet o
s?t xegi.onal o:t'fices have wYlat
rj'he Repub:l.i.,c~ ~ixay and Obl.a
r de ax~~t'r~,enta carxout all
termed City Ue;~~axtment-~ ~ TYlcse: p
a~~qF, , ~ ~i c in ?tl~c' c~.ty'
Cz~ccl.it and sett~.emont npex' ona the cla.ente
hcxe tYie regi.onal a'fice is located.
w"
The regional o:Cla.ccs of the S-i~,ate Bai~ are; headed layr mana~
gcrs wha are appoi1Tted and removed by ?tY~e IYeo?d 0fftce.
tlie valuof
ucture off' the branchee depends on
he str
?th.ex ....aed by . raanagers ~Jr].~,:~ are aY~po7.Tltc~d
?b her ~ They are hta,~c the
- of the Board of the $t~tit~; 13a.Tak an
and Tycraoved by the Gha~.Tlnaa~.
ndati.on of RUg L-nal Office I'iaiaagers,
ZEr,CU1IwLE
.nctwoxk of t]tc Sta~t'~ ;Bank also
a4 t be
}acs; des the bxancYlc-~, t
es (a:xi i~yans whcxe it is stL1_ any
~, L~i~ on ;7et~ler~c=~nt o.L~~, ? ~.c . r
includes Y xe~~7x"ery represents
expeda-ca~.t to open branches) and Agencies. The Agency ~
the -t ~,ecl o;L'~'a.ccs of the State 13anke Ouch
M
~ wt - l?
~e of Y~d, are ~;e:x:ned clo~~
.i.:t.tEd va~~~-Ety~ of ?t~"ra,r~sactJ~.ans ; acccY~
o:~':L`a.cc;~ carry out onl.J a ~
. and ~ caun~ting ~:'o:~~ them; cash ~'~d settle.
~i, s ac
a.~ labc~raa.on de~osa,
n.
ment service ?or fisheries s etc.
tY~.us fax enwneratcd have
KU to State Bank offices We have
independent balane~ sheet r, the the ~,5ron Settlement and the
, Agencies, however, use an abbreviated form of balance sheet (ab-
totimts)
breviated n.araeclatuxo of b aflcesY~ee accad
S oit'ces that do not. have
The Mate Balk syslaem also include
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
ce sheets. These are theceiv?in and Paying
independent bal.ax1
(3 and the s111~brclles at i~ho'~ar~axi$ and
'j.'cllea.~s a~, the a~,.spo..~ or
and Paya.axTellers at Rayispo:lkama are
Spctebanks, The RccF.a.v:>wr1
o ;t c~,
principally to the service u:C the a.ocal bud~ cts and operate
?
.?,
in those ayon Cent Ers where there is no $~Ga~~e dank bx~cLnc~~~.
The nches both. permanent acid eaonal, are opened
by the Regional g~.-o.n n al Qf ices or branches o? the State Bank on the basis
aa con.tract,~ r with the YihoZ,arganc involved. i ursuanb to the decree
n
.
as: l~ September 192 of the STO, subbranches are maintained en-
tirely at the expense ~ of the ozorgans, id are staffed by regular
he latter. rl~he permanert subbranches provide the
personnel of t
cash service for the I oZar ;ins to w .rich they are assigned, while
the 7 seasonal subbranches are opened at remote i11.and points to
the :`overriraent purchases of agr icult1ral products,
~
take r a . care of
1 ` a and cotton, thereby bringing bhe apparatus
pr:t.nc:Lp.~:..~.y U
Bank close to the sellers of agricultura~i praduCts.
ui? t1LStare
These subbranches settle in cash with such sellers.
The shave mentioned subbranches do not keep a corllplete
system o: accounts but draw u,p d.a 1y statements of receipts and
,
i disbursements , and account to the State Bank br&tch by which
they were dss_gned to theihozorgall or Zagatpunkt.
n ~raduall~?~ expanding the network, the State Bank U~7ST~ is
1 ~~
continually i.proving its service to a.7 l branches o:e the national
1 economy.
rTIIe operative and settlerncnt relations between the
State Bank and the other credit institutions of the USSE ?
,,
3%.
- 23
. .n - 7 5 ,
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
fV~;f
It
31\
. 7 dsb~ax'~~.~sy a,r?e ua?ade;~ the auxa.s~
'~~'he Spetsbanka. and ~~c~st~u dent
" S~i~Ze There a.s also the ;a.ndepen
da.ctlt~n oi' the S~l~axko7nu
a.n ~ is a sto
ck co~npan;J.
r~c;s~~axbs,nk) which is
S~aa-al~ or ~i'areaTrade The
carry O are~.~n set~~.ea~nt,
4ua(~ has tI).e unct.a.an a~ caz y
he State Bank and the .land,. ~~,
ntc,xre ~~,m anve~~tw
~.at.La~as betwcerl ~
p'ex
~. ?~ . a.a~ Gl 1~a
d
rsavin ;s baflks are descr i be in det
rrae;zat bazand
t
1,ves to the genex'~.l statGaaexa that the
~I~:. Mere we coa~:i,rae aurae. the ~.an~;-term~
~ ash and. settlement sexviccs is z'
State ~13aa71~ prova.c
..rucJ.~ ~berks,ss~ and the Vzacsl~?~o~'gban~c, acr
' vestment ba~aks, the (cosL ~.n?; ~r~'as
?~
.a.ai ~~, r of C~..eaxa
ask J?'.:. paym,cnts i_n cash, 01 by ,y ~.
ceptin~; and
fers, under their instructions.
more , raini~:'7.cd nc;twor}s of a:['~':i.ccs than
I~aviaag a cons~_dersy mar
~.ank carra.e s au~ transactiaxa s in r~any
the SpPtsb~,nki, the State ~.~ Such ?trans..
ructi oars and for their accOUntse
places uzLdcr their a..n,~ t , the crEdit ba~.~-
~ ~
l:i~rlited to the arauxats o .
action 7 axe, as a rutia~ Try a number
k do counts with the State ]Bank ?
antes in the ,,~et,sban ~, ~- the State .~~~.n,k
of cases, however, as will be seen in Chapter Xx_,
vaunts oother credi'~ a.nstitutians.
allows ove:rd,rats an the ac
33
~2L
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
cl1APrrR Ix
..~~ LANCE SHk~ET OF TIE 3TATh BANK
p11 ryryaa nn 11 n T~ATT /~r1 II,~~
~ .I7 SIT
"ICS OF (LI~i~~U ,S~~~AT T~i~f1`~~1 IU.I'11.~A1,~LJ1~
? r t'
Sta~,e Bank ref1.F.~cts c~,c;ax';l.Y, p~~e~
The ba~.ax~ce sheet a~' ~ he
~ . , date,
off' i.ts c~pexak~iaas of a c,;a.ven d~
ca.c~ely arid :F.'>.x~.~.~. ?~~xe: coxid~.ta~,on
concatructican of the balance sheet
Clarity and distin0tne5S in the
i ncc not aril.y :Car the State Bank it-
self, GxG,G i.n.~r great ~.r~iparLa
but a:lao for the exxti'e national ecofarny. T1jjs is linked
sank at the present; ti111e y for it
with the rate players by' the State
.. arid the enter of slzo~r~~~-Lerm cred~.b
is not only the bank of a,s,~uc
t~hE ~~ranches of tie gigantic sacialM
but a~.so cl~;arix~1{; center for all
adciiti;ax~.' the State J~3an1~ serves the
1st econarriy of the Uri SR o Try .. Field
~~ the i'lieet thrru~h the rLet,vax^l~ a.f. the
Red F1x111~r ~.n action and iets
Of:~'icOS, pe1: f Ur111S the cash service for state and local bud~
the ins trl~.ctions and. for the ac coux~~t
undertakes ~~rar;.sact~:iaris under t
o ' . , vestmei1-t and the sav_Lrl~s barLks, and
f the banks for :lone-~G~i ~.r~
arranges settle1fleit.5 abroad
?1ti.11 wank of the State Bank is or-
'~',.c opex^ative end ac,c~oui ~
that at the end of every working day every
~;a.n.i~ed in such a way
of . State Bak dra;ws up a balance het of
inaeperidex~.t a~''~-ce ai the St~
by means of a daily balance sheet
rlurnovers and balances Only ~ r
is it passible for these offices properly to corLduat, the sub$equent
e y clearing or current accalaxxts, pay
ope:~~at;~ons y to pay out man J
a, make new loans and complete other trans,
the orders of khozorgar y,
actions R
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
, Cs
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
r~ balance Mlle:? t o:i.' the; ~tatc Banks l~VG o: otl'ier
1.11..
" is dtvtdCd ,Lnto re~aOUrCE:a ,nd liabi.lities. i~esourCG"
Cara'tC.~S~~`;~ SGT ~
~ show trlc c:,la iiCati.c~rl oa' funct,~ cc oacW g to the critc~ri?f o ~
., 1.'L1oe1d distri )U'Lbir~, tirh ie iiab .1ita.e $ show 'U:lc
their . i
GC" cl,ass r ' i.on o:G' 'bhc se iund.s by suu,rees ,f'ri~Iil wllich rec& v~eri
.~. .h~J . Qcl`~
(:L'oi flat;L~an ) axed de nateca purpo se.
Tile cu. 'renthy adoptod sy tern oi' bal.arlceMFJhee't norileclatUre
S't of items contain 'bb basic daa~ zl~;cc~a ~:tir~~y or ~l~lle
.
operative plann::l.x. t. l&r and rc-, u1.at:i.On o1 all ti:1.c actiVitie;3 oJ. the
State 13ank,
At he ~aarl~.e t rule the b l1.an.Ce sheet of tie State Fai?ik is a rrlo5t
oxatx'ol over its cred:i.t, opc;rat~..ve arld ac?-
i:rapor't&nt j(~rr;l.ericerlt of e
CGiJIll work. The betiance sheet shows the credit i_xlves tirflellts
~7.n` ,
nlac; b . the .r'a~~ nl., broken don lrl,to departr~ents and brancbes, the
d:;
conditi.an opast-due; obl:i.;a a,c~ns, the reSO1ar(.e.S oi' the ecorlorl.V
?;.r1 r s etc. Ky the; aid o tie balancewsl1leet -tll; currezit
:LI1
CCG1'I.I'lt-i.ng of a1 ~rcl:;C)]1 r is ~~ clleclec~, ..o.:l.~k, furnishes a ver1 :i.~
ct.l.. U~~CZ
tiOf 01 tl1C accurac:J w L'bh which bli.e analytic accouLl~? ng has
.~f'1Ca1~.
boen Carried out.
Each independent ofice o:the State; Bank ~., riegional of
L
:Lice Branch, Rayon Clearing Oi'i'ice, Agency --- draws 77p ik,s o n
s
arln.a.aal balance sheet. consolidated. annual balance sheets oi'
all State Bank of'ices in a 1Lepub1ic, bray or Oblast are pro-
espcC;tiVe Regional Oi'f i_ceS controllin; all the of'-
pared b , the rl
i~.cc~ ~ t
,s an the e territory in question. `T'ile Head C) "f Ice oa` the State
prepares the consolidated annual balance sheet for the yank as a Who1C.
Bank
35
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Tiii a o ry 'thc State Hank conso1:,..da'te$ in
U lln't the aynthetic (acdi.tiv) data on $ ac.V"ity, and rakes
aaps 'tl"l, judge tho resu2t"a o ' operat1,uals both of the p x
pos;i.1:)1( to C.I. o t11Ces w., i~egi4'.~1< ~a,l O:Li'icer3, ,13rancl'ce ~ , l~a'~Ton ca.eariri 0i':1 ico ,
77I r' rl ?
114 a. Y r ~ R
A :.er1cies M~ aricl off' tl?ic Bank as a whole: ('ro l tl?e COn5oJ.ic1a'L0d ba1~
ante sheet).
A?b tl,.e present t LT(IC the current 'ba1anreMwh30't rlonieclature
consists of over 2CIO balance-sheet accounts and 72 nonwbaianceMN
sheet accounts.
1.30h balance- sheet and iron-ba1ancewsheet accounts are classi~
J'i.ed into separate sections. There are 28 such sections for
balance-sheet account; , and 18 sections 'or non~balaT1Ce'-sleet
items
iTle balance-Sheet &CCuunts of all scct:i.ons are c1assifiecl
hy ecunOII1 C cr uteri a. In other words, each r. oup comprises trans'
actions of more or less Sidi 'orn economic content.
Section VII o:t' the balance sheet -p ll31ortterrfl credit and
settlement operati..ons It ~-i.s in addition, COnSUrUCted according
to the government department involved, while ; ectiori XIII --
ttSettleflelyts with Credit Institutions of the USSRIt is in
addition constructed accordiinL::: to the correspondent involved,
2 THE CLASSIFICATION OF 1:3ALMMICE-SHEET ACCOUNTS
Let us new take up the content o2 blrc balance-street groups,
and. consider the detailed criteria of account classi?irati.on ac-
~' ~ ~~
~ t
i
~
i
,t ~
~~ ~ ~ o ~, 1 J7 4$ ~~ttdti`'r FI yr t k t I+~, l~ i ?(O~r! e~p~7Q a Y~~~ 7y?{,,~ i nstt i a r~, i,,,
N ,,~. Y if~~i,~+{~r. r {f f~. 116611 ~?.~1
w t 1 14 an,~~? f t +SI !' 1,E, ~ r" r ~~ V N, '~hY ~ i . y~~$ ( t ~ g P ~7 ( ~ ,
Ir 7++ ;'+~~, v uq ~ ine mp } l .+ ~y }~ 4~$?~ }~~~r ~~3 ~'", ~t",~4?v1 ti~ S rirrd fi RiP I' f 1')+fyt+ .';:It ri r,?yiF Sri '
~~ a eS'i~'~,.i1
~ ~ `.76~
p ~~ ,, y~ ~rySr
~~~t1i6Ai7:~~i~Et;Yt~r+?B~;N1~%f~,PdY'i,{~!5
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Cox'cUng to groupe o
Carc~~ up :l: of the ba.anceMcheet cornprises? all funds of the
State jstetu.tory and reserVe funds, f.~ xed as-
.~ar~k, compr:l.S ~~a.n
,...,: eciati0)~ fi d and special funds -M for instance, for
sets,
to the personfei of State Laii,k Offices for ex:-
paying p~'erl~~a.1u~~~Mcel:lent work a,nd.ces in socialist compotltLan.
'ti.3anknotCs p?.aced. in circuiDta.ant' COVs the bankM
Gr'o1;ip IJ:
rtotes i,3$Ucd bj the State flank.
. :C:f,i IlA.cco'unts w:i.tl'i t ie NKF USSR for t'ea6urnotes
Group
aiiS placid in circul&tiont! reflects the Issue acid circula-
ano. cc ~
Lion of treasury notes and fractional cu:crerrc~r, as well
wltri he '!KF US} 31 for Calns issued.
accounts
Group IV tli~ioneta1 T Resources" contains the accot~r1ts record-
-Jng the amounts of monetary resources on lzanrl in the cash turn-
over ver funds of the tie rion3l Offices, i3ranchcs, Rayon Settlement
and also of tl'ie Subbranches of the c)tate :i3ank. It also
Cf:Eiccs,
'.nc:Ludes the accouzitS in which the amounts of currency shipments
a
in transit for repleniali11ent1 and withdrawal to and from all such off ice s are entered
Group J "preciouS 3Y3etais" is used for the recording of the
gold, saver ? and other precious metals belonging to the State
c
i3ar~. S
Group VI " .r'oreigl Currency and Accounts for Forei n Uper -
ationa~t contains all of the accounts recording; foreign currency;
are sor; nags In foreign currency, payable abroad)
f'~.gn bills (prom~.sY
Co ,, c, to
C C)
I' f I d 1 ' 10 (". 7 1 I t (I
l ,S
~~kyN~~iS~ ~i vti~?,r ' ,. i nif'u (l ,t'~ ? ?; i i c
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
,, .. , Ica .~L1r ~ CL17.~'E~.1`1`t ac CQ1:11't.i and dl;pU~.'till o roil aid .1:'c1:4'ta :1.11 .'~ G,
ti W,l'! :L'U1:'~:; :i.g11. banks i..1]. :C.'Or(~:LL'l' a axlCi,
~`~GGU1lTa'"~
foreign C'la:~Z'ex1G;;j;
- and 'i.o itiCCU11l' ;I"~1
~tLC~ :Coreign t' E fer5 za]~ , a
~:)GV'~.,e`t CllI'~''l;I]C';~ j l1CTpc
j'ox(~:i. 11 cll.1'1' 111c "` \J?'th c1ie1V'I;3 - .
'1~-' ''?~-~Lez'irt (;:r'c,d~.'I:, ~~rla c,~.eaxry:i~]~
(x~:'oup V:C:L ~.a11(a'x L
1 ccourlca~~ (rlljexpx~~.,~es
~tl]E: C~.@a;l'111fa! ~.a1111 ~11~1C1 f,l:ll':I'~ll'la
`~' .l.Ucl11 ~C.,
`" Cllr )cl LlilC11,b a1`ld OZ'~!;J1]:L%c1'U1.U:1'15 - 1ie
loan s
Glr1.d :L11.a tl tu~tiolh, 1 ., , . ,, hi riot
$, (1(? :l.1(11ida] o2 ho1:t tex~ /~
C 1,)111.. ~~ z~ e ~' 3
p ~'r'x1d c~~~'tilol~rt aecou1i't5 z~'ccaz'd 'the
r4;)~?dlle~) , '~nri]wLIC the) CI~,~C,x ]_?
~n~tc~' )z'.s~,, ~~r]cl ax'~;ar]:i..~a~
disposable :u
:LOrIS as &-? 3s the se utleillel'1'tS i)etwecrl t,ht~1110
In ?tl1:1 S rou.) o.ti1t; bcllafCe ,ieet,
C`
c, i.)
c~ ,:'t aeCCftUT 5 UCc 1"1OCi 1UI' t1iu c1er1)riSC.S o1 ea
d1]C,E~~llr~, t
'b1 ~lx'J.1, t~ c(~;CCJ11t]~, ~~
accU't111't~., c1eG ?
Ncll',1Gill1't ; One ~~ ~.1,~.lIJ..I. ~l J
_~:, ~ ,? acc;ol111t ~.. 1,c',a,1] ac;COunt, ar .i.n5t~.tace;
c171C~ 1:1.1e ~. x'u`~~ t1Z (.~.
tcrpr`? ses the Fo~nat oa' tii;av`,I. I'4;oi:1J.i'l.(;
Il il`1 1~ cl1:'l:
` c Counts 11 and ( G ) c co unt No 3 9 !Mlberpx'15 es
f' 11 ea i~laC line 1.3u:LJ_d1ngM Loall ACCOLlfl'tS';
oi: the Naz'lc.o~rt7,t o ~
,
o ,; r~ta~s of the i\arLonla~t(: or '.~a~ta.a.or (l } ~,~:coLlrl't !`Jo ~ . 't1`l,'px ~,.~
? ,-' ;cuLlIl~ts 11 and (2) ~~ ccour~'t ~'.~~So ~3
11~]dLts ~Ix'y: (~.Le~.I l.n~~~
~ ?"t jl 1d1.1S'tx'V ; Loan 1~c c;a ur1-',~~ - "
E :~
r'a
o? 't1~1~; NG~~:'~~allla'k, of
b he Ce 5~~lee~t also :'L1~lclL~deS ~tiTte accounts
Group VII
Bank! s c~.~ac1~.t and se~,t1e1Y1e11, sor`-i.c? for
-t~]a't xa~'l~.c~hl the ~'tat~
vyZ~-, as &ll as the cur-
of the ~KSa,
t,ra~.aspo~'~, for enterprises
~~a~ta:ons -~ha`t do x1o t ~-lavo c~.eax~xlg or lat~ln
:r~ez:~~ ac coLLr1`~s .a.:, a r~,a11:L
epublic. and. pra~.'es,:i.ollawl nr~;ani-
ac~oun~~a, such as, for ~.n~~anc ,
,a,F'ic~'ot~~~r}4, ~uCltrl`~QV'
R
a .rule, t~,o bal
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Group IX tiLetters of Credit and other settlement operations"
includes all the accounts recording entries for letters of credit
issued, for special freight 4urnover accounts, for' ]invited check-
books and for certified checks; unpaid transfers are also recorded
Group VIII "Past-due obligations to the Bank" records the in~
t
debtedness on short-term loans which were not met at maturity and
were accordingly transferred from the corresponding loan accounts
of Group VII; it also includes interest due to the bank (billed but
not yet received from the clients).
in this group.
enterprises.
nations the Gosstrakh and a few other organizations not occupied
with productive or trading activities. This group also includes
the deposits of military personnral and of private persons.
This group of the balance sheet is one of the most important,
since on the whole it reflects the activity of the State Bank as
the institution for short-term credit, the clearing center and the
accumulator of monetary resources.
The classification of accounts in this group by the cri-
terion of departmental subordination is of great importance, inas-much as the credit plan of the State Bank is constructed on this
basis. The fulfillment of this plan is verified by the aid of
the balance sheet.
Group ,X "Financing of Capital Repairs" contains all the
special accounts for the capital repairs of industrial and other
(~~!;~lY~l1~y ~111~~~4II^'1 +I i ~I'I~ ~!IA;., ,n~ lI r~tt~ ~,2 ~ t 4'b a\4,h~d~l)i lIyl4l,~1, A''f4M1~)ci ~7r1 11~hyy~1}yt}YfRl~ tint i l) f e rr ' l1 f . , i !' I
p,1,ir~I~~.CY~h{~YI~tl9044~~y rdM1
(fit(?ti~~q;ja 1A~ar~ua l{If~~ rll EvUr r``4M1 V~Vp}r\~}tl~ !~2~,E Yqf i1;fi4SPI.u'~'Hyl ~~h~~y,;Y 11~~yr a~no ~'7~ 4h r9 nh. '~~.~~~$ u'd0 h~.! cJ U I `10 ! 1 ~irr it d l~; ) l
~ ?t
r9~ll Pd A'l~ b) ~r'~vrN ,
.Declassified Part Sanitized Copy Approved for Release _se _ 2012J03/28 IA-RDP82-00039R00
in
 6 ,0.
,~rts'4
a
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
with the budget and budgetaxy in~
Group ~ "Settlements
ance_sheet accounts xecarding the
stitutivns" combines the bal
union budget, the budgets of the
recei is and expenditures of the
p rau contains
union republic S and the local budgeter The same g p
of institutions existing on the union,
all the current accounts
republican and local budgets, together with them" deposits.
Group V11 "Other accounts with the NK~' USSR" contains ac-
with the NK~ USSR in connection with
counts reflecting settlements
~tals accounts with reference to the
the purchase of precious m 9
? Dods values for the account of the union
revaluation of matera.al-g
ttlements with the NKF USSR.
budget, and other se
Group X11I Accounis with credit institutions of the USSR"
n
for service by the State Bank to the indi- ,
reflects the accounts
vidual long'-term investment banks, Vneshtargbank, pawnshops and
the GU trudsberkassy.
A separate bolance-?sheet account is opened for each of the
credit institutions in this group, except the Sel'khoZbank, which Yns
three: one for the funds for non repayable financing (grant7, one
~?
for the s of the kolkhoxes, and one for other
?
~.ndiv3..s~ble fund
transactions.
Group XIV "Transactions for accounts of the Agricultural
Bank" is carra. ?ed to handle the transactions performed by the State
Bank an the ?ans of the Selkhozbank and for its account
~.nstructa~
in cities where the latter has no office.
Group XV rrAccounts for Third-party Funds" is set up to
0
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I
i)
of special (third-party)
counting of soma and funds
handle the ac
xanted far account of such
.,..~.1' purposes, and also loans g
funds and sums.
Gr e~ antains the accounts in
.
oup xVl "Debtors and Creditors c
d.itoxs and accountable
which transactions with var1ou-~ debtors, cxe
belong account No 'fib "Re
persons are recorded. To this group he
b~;,shment of assets and liabilities of evacuated offices of
est
State Bank', No 2~7 "Amour Of turnover cash on hand remaining
evacuated from the pones of 'lita~ operations", and account
m i
un
obli ations past due by reason of occu-
No 2~8 "interest due on g
pation" (far details on these accounts see Chapter XV).
J and capital stock" records the
Group STIT "Shares
'n the statutory Capital funds of
investments of the State Bank i
b way of the acquisition of shares
enterp~ses and institutions y
or capital stock therein.
Group XVIII Mutual settlement5" embraces the group of
~
'
ffice settlements resulting from the
accounts which reflect inter-o
ntercity instructions of clients of
execution of infra-csty and i .
the bank, or other transactions connected with the receipt of pay-
other offices of the State Bank.
ments of funds through
ozraschet enterprises of the
Group ~x 'rAccounts with Kh
. funds invested an khazrasahet
State Bank" reflects the total .
subsidiary
State Bank,.. such as, for instance,
enterprises of the
farms, restaurants, garages, etc.
,
Group, U "FSxE
capita1 resources of the. Bank" contains the
.:.. ,
r~~
A?1hi~~l~'4`;~Jt >4>.J1.hi~PVl;lIO~~siSGRiP6kii1f1~dS~:irv ryf{ hhirtk n ili~bS~~It~:d~, hiif h'd fnjFlle.r.. 4 i ,l f',;! +iki4~G.A i:r 1 i , i i45 / .I 1 . ,i t?i',
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and building inventory of the
accounts on which the buildings
bank are carried.
XXI ttDepreciation of fixed assets" is used to record
Group of the bank.
buildings and building inventor'
the depreciation of
axes on leased bank px~em~.sesr~
Group XXII 'Capital expendit
cords the amounts of capital investment in buildings leased by
re
the bank
capital investment by the State
Group XxIZI ~Accpunts for
recording the amounts for financing
Baer conte.ins the accounts ,
system of the State Banks the expen~~
capital. investment in the
vestments and the receipts from
Lures for completed capital ~
the liq is (building inventory etc.)
uidatinn of capital assets
,
Group XXIV "prepaid expenses" includes accounts recording
.,.~.,,,n+s expended by the bank fluxing the current year on items
i
nt
future years (cost of fuel stocked up for e chargeable to
hd etc)
heating seasons operati material purcase,. ~
r,rrnln XXV "Bank income and, expense" embraces the accounts
State
the financial results of the activities of the
reflecting
? d to the special accounts of the State
Grou'q XXVI 19 assigns
? of their extremely, liml.ted apPli""
k ,~ +h the NKF US5R n view
Bati
XXVI and XXVII are not carried inthe balance-Sheet
cation, Groups
Declassified
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he settlements with the natior~lized banks
to accounts reflecting '~
and Estonia (before the establishment of the
in Lithuania, Latvia
and Estoi)ian SSR). Group XXVIII contains the
Lithuanian, Latvian
accounts recording the operations of State Bank offices in which
dc.ng
the accounting records were not preserved, owing to military oper-?
ations. (For details see Chapter Xv)j
This is the content of all groups of balance sheet accounts.
CLASSIFICATION OF NON_BALANCE-SHAT ACCOUNTS
3.
oni-balance sheet accounts, lake those of the balance
The n
sheet, are divided into groups according to the criterion of uni-
f ormity of the valuables and documents involved. (The non-balance-
"accounts kept by the Ihozorgany, with the
sheet ., p . ..
that the latter are kept on a double-entry basis, while
difference
the former, in the interests of simplicity and economy, are only
single-entryj
Group I r~Collateral" is used for recording the notes of
clients covering short-'term credits, and also those covering van-'
ous balance-'sheet accounts.
Group II " Reserve and fractional currency stocks" (The
.
word "stack" is uedto avoid confusion with the statutory reserve
~
,
fund (a balance-sheet account on which the cover for the note issue
is carried) . The balance-sheet accounts in this section,however,
P
` l thP19Y~~i'~Ift~~A D~.. ~~`ryt.!rR 1~7~6^ :r ~r.. ~7liM'.1~~if~4.~'h d ~' ~ I P. ~ I ~. ,~ A nY N 1. J ~A ~HI v. ~.~~:AAI'd711
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~qh
Il,li+
rr; 1 ~~.. t lipf~l,?mr *~ vJ~r!~f)>.~ I'~ie!
dl qJS ~d~
~usT !i'h Nj1 Jr o "e dI1;.~Yr
I
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sisal notes and coins held aut of , aircialstion ~ the
cover the phy
al Offices, ~hiah have no financial significance anti
varI.ous legion w bank notes and treas3''
oncentrates,.all the acaol~nts an hich
issue c
notes with fractional currency, in the rew
are carx~.ed' together shi mu of
serro'e and fractional currency stacks or in transit (p
authori~za?
stocks). The same group records
n3?8hment currency' reple apaches to transfer paper cur
Lions to the Regional Offices and Br i E. to place
cm..th.e stacks to turnover cash, .
rency and cu~~~s ~. it ..
currency in circulation.
ants received for collectionts
Group IlI "Settlement locum
documents received for collectian
tams the accounts that, record
co n
ablishrnents at the place the clew ng
(an co.ssian) by bank eat
ounts of the payers are maintained, and also settlement and other
acc
forwa,rdto the bank and accept
documents for foreign operations
for collection
Group IV "Depasltary accounts in various branches" combines
inl such valuables as revenue stamps,
the accounts carrying ma Y
r
Brofmarki, etc? radeuniQn dues stamp
~ .
Group V +~Valuables for Saf ekeep~.nB
the State Bank from Kho~obganYs
valuables accepted for saf ekeeping by
enterprises and institutions.
Grau VI "Various documents and valuables" contains accaunt
p
aluables, for ingtan ce correspo~
ecording ghat are termed transit v .
r ?
,
received but not yet processed correspondence ~d
valuables paid for but not y
ence ~Lth currency et de-packages x~i.th declared value;
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livered; other valuables and documents flat carded in other non"
baianee'sheet accounts.
for accounts of foreign correspondents"
Group VII "G'uarantees
Head Office of the Bank and records the secur-
is kept only at the
es and guarantees given on such accounts.
1ti
Group VIII and valuables at various State Bank
u nts
~ocume
offices ox with correspondents" consists of a number of accounts.
One of them -- "Bills, drafts, and commodity documents with foreign
on the Bead Office balance sheet.
correspondents" -_ is found only
at the various State Bank offices and shag the
The others are kept
documents and valuables forr'arded to other State Bank offices.
"Debts written off, and collateral covering them"
Group IX
debts already charged off to losses (covered by
is used to record
profits), and collateral covering them, as well as collateral f Or
debts to be written off at the close of the current fiscal year.
Group X "Documents for transactions for account of Selkhoz--
bank" contains the accounts recording the obligations of guarantee
amount of credits opened for the account of the Sel'khoZ-
for the
bank, and of the periodical obligations on long-term loans of the
Sel khozbank, as well as debts written off for its account and
securities covering such debts.
Group XT "Letters of credit for payment" records letters of
credit issued by establishments of the State Bark that ser,.v? sup-
pliers.
45
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ate budget credits" records credits opened for
Group XII ' "State
the union and republic budgets.
Group XIII "B1ank forms of strict accountability" shows
checkbooks and deposit books, together with receipt books for the
night subbranches of the State Bank.
Groups XIV and SV are carried to record the valuables and
documents received by the State Bank from the nationalized banks
on territories that have entered the Soviet Union since 1929?
Groups XVI and XVII reflect losses suffered by the Bank on
account of the war.
Group XVII serves to record the standard certificates, food
cards, manufactured goods cards, and equivalent cards, issued to
the Bank personnel.
This, in brief, is the content and the principles of classi-
fication of the noh~balance-sheet accounts in use at the present
time.
14. BRIEF CHARACTERIZATION OF THE ACOODUNTS. Nt I BERING
OF THE ACCOUNTS . FORM OF THE BALANCE SHEET.
The balance-sheet accounts of the State Bank are kept by
doable entry and are subdivided into resource, liability and ac-
counts alternatively resource and liability.
II`'`I`, '
' F,.
k >u1 ~ .~Yx y ~,~
The resource accounts have only debit balances, and the
liability accounts have only credit balances.
r (rl I?I i M1 ry5% P1 i~ i1r Qhin ,~ 1~pp~ v,~ ~rU ?e1 ? ?; ~ r.x. P'rrSfr.e
oQ: F~~l I~: lJUL
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The State Bank keeps all its non-balance-sheet accounts by
? showing addit~.onsp wa.thdxawals and balances
single entry, that is,
Each group and each account is designated by its own
assigned nlunber. It must be noted in this connection t hat al-
Dante are numbered in simple serial order,
though the State Bank acc
? not rigidly followed in the current bat -
this numbering system 1s
's that the accounts were numb~'ed
ance-sheet nameClature. The reason 1
as early as 1932? Since then a number of them have been closed,.
4
.
s
' transferred from one group to another, replaced by new accountS,
~
interfered to some extent with the serial
etc.. All these changes
numbers. In.19b0 the content of the groups
order of the. account
was again reviewed, and all of ahem. were renumbered (in serial,.
47
~, resource and liability, such a$s
The accaun~ts alternat~.vs Y
or example, the int?rhand settlement accounts (except the accounts
aced in circulation" and "Settlements
++Settlements for currency pl
for currency withdra~n from circulation" .) are callected in Group
"mutual settlements" and may pass from
XUTIx of the balance sheet
resource to liability, dependi~ on whether their balances are
debit or credit.
Some resourceorliability accounts, for instance account
?
-?
No 22~ +,Unrecanv t+, No 266 "items not reconciled by
~.la~~E'0 ite~
n current year", No 210 "Other debtors
ice entries du~`?~. g
Head Off
both resource and liability accounts at the
and creditors"= may be are shotim on the balance sheet in the so-
same time, since they
se stately for resource and liability
called, expanded form. C p
side
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order). As for the accounts, it was recognized that any revision
of the numbering system would be inexpedient, inasmuch as the bank
personnel and clientele had grown accustomed to the established ac'
count numbers, and to change them, in view of the large number of
accounts, would involve considerable practical difficulties, es-
pecially in the employment of that portion of the balance sheet
used for recording short 4erm credit and settlement operation.
(Group VII). For this reason it was decided to be content, for
the time being, with the violation of the serial principle in the
numbering of a few Groups. For instance, in the first group "Funds
of the State Bank", the accounts are numbered 1, 2, !, 21i.2 and 3,
while the next group -- II - "Banknotes in circulation i ac-
count No 5.
In practice the numbers of the balance sheet accounts are
coribined with the numbers of the individual accounts of the clients.
For this purpose the number of the individual clearing or current
account of the client is added to the number of the balance-sheet
account, giving a five-or six-digit combination, of which the first
two or three designate the number of the balance"'sheet account and
the three following digits the individual account number. For in-
stance, if the balance-sheet account, in combination with the ana-
ly-tical account (the detail clearing account of the client) is de-
signated by the number. 28021, this indicates: 38: balance sheet
account "Enterprizes of Narkomtyazhmasma -- clearing accounts";?
021 werial number of detail account of"Krasniy Proletariy" ma.-
chine construction plant. .
Or, for instance, No 1821!xl. Here to first three digits
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balence~sheet account "Enter-
~,cate tl~? numbex of the
182 ind ... cleaing accaun ~
omat o au'bamobtle transport
prises of Nark ~, suto~,Qbile
? umber of a detail account for
while 1)41 a.s the n
plants
ants conventio~l
nating clients' loan ~tcco , one or two
si
d
g
e
n
I
digs The first of these indicates
is are added at the left side.
~
ed in the
the second (which is only' add
the nature of the loan, while
case of planned loans) shows the number of the group in the static- .
St designating the purpose of
tics/ scheme by br.:nches of indu rY
number of the detail loan account in
the loan. In these cases the sheet account number consists, of
combination with the balance
seven digits Thus, No 1029021 means : 1, form of loans in this
ttlement documents en route; 429:
articular case, loan against se
p -~
a
t account "Enterp -sec of NarkomtyZbnasha
number of balance~shee
loan accounts"; 021: serial number of detail loan account for the
above. It may be remarked in this connec~
same plant mentio~d
account of a client always has the same
Lion that the detail loan
number as its clearing aCCOUnt.
Individual accounts covering past-due loans also have seven-
b oanvent~.on~ the first figure
digit numbers, but in this ease, y
ates -the number of the indi-
as a nq-r, Thus, Na 9029021 design
xs alw y
. made to the "Krassniy proletary"
vidual account for past-due loans
which belongs to the Narkomt~~hmash
machine construction plant,
system.
ablishmts that use machines to handle
xn State. Banff est
11
49
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pY pp
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their analytic accounting, the combination of figures
is and
is someRhat different.
The balance sheet of the State Bank, in contradiatinction
itutions and enterprises, is drawn up every
to those of most inst
form with two sides, but on one with only a single
day, and not on a
side.
As is generally known, on the two sided form of balance
resources and liabilities are shown on the opposite sides
sheet the
same table. The one-sided form is used, in practice, in two
of the
j
vara.ants; the first arranges the accounts in sequence, one after
t
a
other first the resource accounts and then the liability ac~
the ,
counts while the other uses what is termed mixed grouping, in
,
which the resource accounts alternate With the liability accounts,
and the partial sums of these two groups are placed from hn to
time in separate columns for resources a nd liabilities.
Since 1920 the State Bank has used the second variant of the
one-sided balance sheet. Before that the balance-sheet tabulation
two sides. The resource accounts were placed on the
was divided into
left side, and the liability accounts on the left. The shift to the
'one-sided form was caused by the steady growth, from year to year,
of the number of accounts in the balance-sheet nomeclature of the
State Bank and the necessity for repeating a large number of titles
of sections and accounts alternatively resource and liability on both
sides of the balance sheet. Use of.the one-side form eliminated the
need for this repetition. Besides - and this was the principal con-
sideration under the conditions of the State Bank ?- it was possible
50
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together the resource and lability accounts
in this way to ~'ouP
of a ent, while with the two'-side form, he
~,m3.lar econo~.c content,
resource accounts relating to a given econo mac classification had
to be looked for on the left-hand pages of the balance sheet, while
accounts belonging to precisely the same classifica~
the .liability
Lion had to be looked for on the rights-hand pages which would un~
.
doubtedly make it more djult to study the balance sheet if the
f f i c
norneclature included a large number of accounts.
shall not stop here to consider the separate accounts
We
that enter into the various groups of the balance sheet. They
should be studied in successive order as the corresponding opera-
Lions are taken up in the separate chapters of this course. The
of this chapter has been to furnish an introduction to the
task
general principles of classifications of accounts in the balance
sheet.
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U
'
CHAPTER III
SYNTHETIC AND ANALYTIC ACCOUNTING
1. THE TASKS OF SYNTHETIC AND ANALYTIC ACCOUNTING
A. For liabilities:
classified in Part - Sanitized Cor v Ar rc
For the Resources:
Y ~
+,po4 u%
U U'k44,~/,U ~JU'~"5, yy
Synthetic, or, in other words, summarizing, generalizing,
combinatorial accounting has for its task the representation in
concise form, by means of consolidated index numbers expressed in a
single monetary standard, the economic work of a given socialist
enterprise or organization; synthetic accounting gives a general
picture of the financial position of an economic unit, the degree
to which the plan established for it has been fulfilled and the
financial results which it has attained.
In the State Bank, the synthetic accounting has the concrete
purpose of displaying, in summary form:
Capital resources of the bank; circulation; cash collections
of the receipts side of the budget; funds belonging to
Khozorgany and brought into the bank; settlements with
Spetsbanki and foreign banks; income of the bank; mutual
(interbranch) settlements;contingent liabilities by the
bank for guarantees issued and paper accepted by the
bank in connection with foreign trade.
monetary resources; securities and valuables; cash disburse-
menu of the expenditures aide of the budget; funds placed by
the bank in short.-teroperations; accounts with Spetsbanki
d foreign banks; mutual (interbrsnch) accounts; cont1nent
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of debtors on guarantees 1.ssued and paper
liabilities
accepted the bank in connection, w,~th fore~.gn trade.
by th ,
,, supplementaxy task of the synthetic accounting arose by
reason of the war: the determination, in summary form, of the ac-
counts covexing the operations of State Bank establishments in
which the accounting records were not preserved.
In addition the synthetic accounting yields a series of other
accounting. indices that cannot be included in the system of the
balance-sheet accounting (sines they do not form part of the re-
...
sourc~.and liabilities of the bank). These constitute what is called
the non-balance-sheet accounting.
securities and valuables not belonging
Such items include.
bank ...serving as security, forwarded on comma ssian, or
to the
deposited for safekeeping; reserve stocks of banknotes, treasury
notes and coins; moveable valuables of the State Bsnk and its
clients debts written off and collateral for them; state budget
?
,
credits, etc.
The losses of the bank due to the war were also reflected
'~
nary form in the non-balance-sheet accounting.
in sumr
But in addition to the sumriary, composite data, it is also
.
necessary tohave more detailed information on the activities of
.
the bank . This information is obtained by means of the analytical
.
accnunting, the task of which is the detailed breakdown of the synthe-
t accounts, and their distribution into partial tic balance sheet}
accounts, ref1act1ng, for example, the loans granted to each separate
53
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available ftiuids placed at the B~mk's disposal by each
client, the
client, etc.
The distinction between synthetic and analytic accounting
is graphically portrayed by the comparison of any of the balance-
sheet accounts of the State Bank with the detail accounts related
same balance-sheet account. For instance, the balance-sheet
to the,
account n Enterprises of the People's Commissariat of Textile Ins
dustry clearing accounts" belongs to the synthetic accounting.
This balance sheet account shows the total amount in the clearing
accounts of the State Bank for the textile enterprises. The separ-?
ate detail accounts opened by the enterprises of the People's Coin-'
missariat of Te?tile Industry --' for instance, the "Krasnaya Rogan
textile mill the "Tekhnotkan" mill., etc. -?- belong to the analyti?-
cal accounting, which breaks down the above synthetic account and
itemii ze$ it in detail.
The synthetic accounting, in reflecting, in composite form, the
dynamics and statistics of a given socialist economy, should, as has
been mentioned above, utilize the only generalized standard of meas-
urement, namely the money index. The analytic accounts, in reflect-
ing each separate operation in all of its details, furnishes detailed
information on that operation not only in financial terms, but also,
where necessary, in naturq~ (quantitative) indices as well. Thus,
,
for. instancea the transactions involved in buying and selling foreign
{
currency will be reflected, in the synthetic accounting, in a single
nionetar standard, namely in nobles and kopeks of . value for foreign
r ,, ~' ; "~ ~~ cn?.. 3.-?,~~c n : 0 4~~9'~~t~idt? ' ~ ..,.4{, ~ a ~',~, r,l ~ , c ti .,.,t v ~, ? ~ 1 ,,IM1~+, uc~ 7, i. t} r 4y. r;i,l,
C4 r~ v 7 1"t' ' Ys RI 6}i~f r .`~n},Fau~,rvl6vnik~r,,arJ+Y.. r,.. 1., :~ ~, '~' ~~~~, i r.1 2rcr Ip/,,,4~Irl,~"t~,yf !?Y~fyl p? r1. ?GYi~6} tr~d n~ ~asr,,~yy
n ?1,4~~,,..d t;, t6r~,r ~,~" `" y~~ h Yd "~ ' '~ 'd ,? ~ ~T,'~ ~ ..,~i i! 7~ r ~' r f~ dtd I ~~t~'~{.,1~ta + ka,a~~, .,.,4 , ~~. ~ r~:;~mr! 4i~ r;~~d~.
f (1 1+ Y~ t, 9 d f? l~i z v-?' 4 t "?' 4 h r ,h!)Yf4 ~",
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curranoY bought and sold; but in the analytic accounts-ng the
kind of foreign currency (dollars, francs, pounds sterling, etc.)
and their respective amounts (number of dollars, francs, pounds,
etc.) will also be shown.
On the bads of the data of synthetic and analytic ac-
toanting, both a general idea of a given econorTY and detailed in-
formation about it may be obtained.
2. SYNTHETIC ACCOUNTING
As is generally known, synthetic accounting is realized
by means of chronological and systematic entries.
The chronological entries are made in the general journal.
bakhgalterskiy zhurnag. (It would probably
be more accurate to render this by 19journal-ledger" since, though no
separate general (like US banks) ledger is kept, the combined jour-
nal and ledger in the usual progressive (Boston) form is generally
kept in the State Bank. Egch transaction taken separately is as
a rule entered as completed. In the interest of practical convenience,
however, the record of each transaction is kept in a separate jour-'
nal the cash-book) from which the sums of the turnovers arranged
by the corresponding accounts are transferred to the journal at the
close of the day. The characteristic feature of the journals used
in the State is not only that they show the 'ransactions in chrono-
logical order (which is basic) but also that they classify opera'-
Lions of similar nature by the separate balancesheat or non-bat-
ante-sheet accounts. This structure of the journals makes it
j
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possible to prove the analytic accounting against the journal turn"
avers and obtain the data necessary for the turnover reports.
The systematic entry in the State Bank is concentrated in
the proof sheets. orotnaya Vedomostj In contrast to the
a' ournals, the proof sheets show the totals of all similar trans'-
actions, arranged by balance'-Sheet and non~balancewsheet accounts,
for the entire day (in the case of daily proof sheets), for the
entire month (for monthly proof sheets), or for the whole year
(in annual proof sheets). The new balances for each balance-
sheet and non balance-sheet account are also brought down in the
turnover reports.,
Journals in the State Bank are kept in the checkerboard or the
American form.
Lee form on following pager
5s
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Number of Credit
designation
count Debit
or ac..
charged
Amount
(1) (2)
ttCashtt 3,600
Contra MFO
entries for
current year" 9,000
ttEnterprises of
ivrarkorat ekst it t -~
Baring ac--
cl o
countstt 8,000
"Enterprises of
i-
arkomtekst~l
T3
loan ac counts 'l3 , 000
Total 33,600
T OF 1
M O k JOUI N L
FORM CHECKERBOARD Ac c ttNnter~rises of
? . -
oun t 1t~~FO "Enterprises
~
~ _larko~tp~.shc'nenrom
initiated
~
_nt ti ~- z a., ~n -`- clearing
during cur- Account ~zbAn
:. accounts
~ " clearing accounts ,~
, Cash
_rent years
No Amount
N j ount No Amount
No Amount
s,ooo 5 3,000
1 1,000
(6)
3 500
3,000 - 1,000 - 500
_ 5,000
- as 29 co1L>lnnS.
them may Tr be as uan~
-, columns are shorn in this tablee In practice T
or simplicity only 10
n
~
1
. ~-
transactions are fo ~;rst -~ entered er~:d the cash book, from >ra
In ractl ~ which the tals
above, cash t1nan
'ce, as has been mentioned . practice,
arranged ,ary card for each balance-sheet account is
..
fled remains for the controller to verify whether
in, and it only xemaa.
t
the account balance carried forward to he following day has been
correctly rooted, that is, whether it results from the opening bat -
10
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all the errors that have been allowed to occur and jointly deter-
mine the guilty parties. The chief bookkeeper makes sure in this
the bookkeeping section confirms and recognizes its mis-
way that
take.
The customers' staffels and the customers' account sheets
made up by hand are returned to the operative brigades before the
begirina.ngof operations. The controllers of these brigades must
.
check the' agreement of the balances. shown by the staffels or cus-
tomer-account sheet$ with those on the balance control sheet, before
, .
operations commence. Only after this has been done can the opera-
4,DYr.. ",~wv6a ~4xr~',v~yyr ~~,p[i;!' ,.;,.,~w~,. ~,,~~"'^'sni}u tir';~rP4~ c,r~W.?rl y??niay' .~ t ,n~ '" nk il.,,ty,~t ?...
k d~,;3i ~~i +{A9..191.f~ ~y~tr4~.'r Ar ~~,~t.,4 yP~,[ { [pEir,~~h4 4. 7~"r~J~. ti`fky~r~J~ulp ird~';E4~4 7~, irl a4 ~f plf {r+;
,~.i i~, ~(~~i.~~~l.?~'.,!il !~~ r,? pi I ~'!ir l ,?i"~j, ~ n 4(~i. i~~ I'~`~~ f~ 4 .. I rl ,'i iri fp, i~~(o ln,rMF ~1Rt?4 }t~~(,E~>(1V,.ry.
SP t, ?~ A r t,~q~~ ~ r, #, ~ t i ~ ~ ~, , ~ rtk ~(~I 1 ~ r.g rl~;~~ 1 dS i . v' ai ,1 Nor ~ t>,~ C'1 ~5~,. tyi
~ft",,p, yy~t y~t1l~ ~kq, ~ 4~C+A,&4q>IYv".'~w~~')Ck'~~~~~~~~, 0"'a ~~u~~~'~'.Wi?r,~`~~t~1~`,~J.r.?`r~,9lifl~3~~kM~ ~~IkR?8dS515~'44Ck~,9d1W~?"~, ~,^y ,.ii~iaS,~~4.1",rr,i~'~t~br(.~~,ad~~~~r`r~i,+itlt
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once or the tven day taken togethex with the turnovers during
f g
the day.
For accounts that are not posted by machine, the book-
keepers take the total turnovers from each customer's account.
hen footed again on the 'WSW machine fox each
These totals are t
balance-sheet account.
The controller of the rnachins accounting section enters the
turnover figures for each balance-sheet account on the summary oard
for that account and compares them with the figures shown by the
~'.
journal. Any discrepancies found must be eliminated and their causes
established.
fa.cate the bookkeeping section and the chief bookkeeper elucidate
A special certificate is made out in two copies for each
between the journal and the operative staffels or the
discrepancy
tornerst account sheet not processed by machine. In this certi-
cus
 tions of the new day be posted.
After the controller of the machine accounting section has
filled out all the swimary cards of the balance"-sheet accounts,
he has only to make sure that the grant total of all posted debits
agrees with that of all posted credits. For this purpcs e the debit
and credit turnovers are separately footed on the" DSM" machine for
all balance-sheet-account summary cards (printing account numbers
and amounts). The totals of these two separate footings must corn-
. pletely agrees If such agreerilent is no+ shown, it is nocessary
to find and eliminate all discrepancies and errors. 't'his fre-
quently proves to be a laborious and time-consuming task which de-
lays the preparation of the balance-sheet.
The daily proof sheet is prepared from the summary cards
for the balance-sheet accounts, checked by collation with those
cards and signed by the chief bookkeeper.
111.. USE OF ACCOUNTING ANALYSIS MACHINES
The production of the most complex accounting analysis ma.-
chines has been fully mastered in the USSR. All the component parts
of the complete set of machines for this purpose are manufactured
here -- card-punch, verifier, sorter and tabulator. The card punch
I is a machine by which punched cards are prepared from the usual
bookkeeping documents. These are special cards on which all the
p,Y~G'dlW'
necessary data are, expressed by perforations at certain places
instead ofd" figures. A card-punch is shown on Figure h, and a
puziched card on Figure !. ,
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ified in Part - Sanitized Co
 cankly inereaSeu.
xd. Bch o~ S p)art
~a.gure ~ ~p.7) Ca p
rack for blame cards.
ii 'jReceiva.ng
2. F;ure keyboard.
3 ? Key for sgle passage of card.
in
4. Punched cards.
pexfaratar carriage.
6. Frame or model o~ punched card.
test the accuracy of the
verifier is a machine to
The
the cardwpcu~oh but only puts its pins
?ur~.chin~? lt_ resembles ...,..... ...... _.. ,,... , ,.. M ~ Therefore i
without p l
through the hales in the card verifier stops a
ed in the wrong place, the
a hole has been punch
' naccuracY of the punchang?
thus signalling the 1
icated, highspeed machine,
ter (figure 6) is a coY~~pl
The sax
handl1n~r c d distributes
cards an hour. It sorts an
about 2~,000 ,
,
~ .
ched ca either mechanically by
cards into predetermined groups,
pun or el~ectricallY~
U h the hales in the cards,
passage of pins thro g
by assa?ge of an electric current through the same hod-es.
,l p .,
is a ,till more coxnpli-
e tabulator (figure ?)
Finally th tints the lnd~-ces.
als the sorted cards and p
Gated macY~ine that tot
roducti~tY is
Subtotals and, tot' Its p
an them, together with
likewise enormous.
al tic used afl1.y in the cent~'a~-..
calculatinb machines are .
An Y
z 1 etene s s and ve~-
their help the depth, comp
ied procedure. ~l~ith
..,the accow.ltng date. can be s~.gnifi
it of the processing of 1achines
sate -
- Y
of these n
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111
Th( collossal 'praducti~'-tY
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44
lows perforrnance off' a large volume of accounting work and ser-
vicing vicing even the largest of?ices of the bank.
[ fee Figure (page 8) The scheme of the ached Card
p r c., ~4 , ~i j
on the " page].
Figure 6 (page ~9) Sorter
1. Motor
2. Compartraents :Cor sorted cards
Feed magazine for cards...... ..
)4. Commutator for cutting out invididual compartments.
The documentation and document routing is the same with
analytic calculating rra chines as it is with centralized machine
accounting. ttDetail account positions" are kept in the opera-
tive brigades together with the staffels. After each operations
such positions, which are kept separately by the bookkeeper and
controller, show only the new balances (positions). The punched
cards required for machine posting to the detail accounts are
prepared from the original bookkeeping documents (first copies).
These punched cards are sorted and tabulated but according to
both account debited and account credited.
Punching is the slowest process and absorbs the most labor.
0 percent of all the expense of running analytic calculating
machines is attributable to this item. The data on the turnovers
and balance of each account is punched on separate cards, from
which detail account sheets, journal; proof sheet position sheets,
113
coo
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? sheet a.nteres~tMntivnber skeet and uin~i~.ar
cash~p~.anM~u~.allment ~
she&ts are prepared. The pra.ntI1g of
e,ccounta.g docur-its and
the journal, wider this procedure, does not take place si.ratl~
that of the detail-account sheets, as is the case
ta~~eous~.y with 'ghat
s are used, but in separate processes.
when bookkeeping machixie
Figure 7 (p? 60) The Tabulator
1. Main motor.
Lever for automatic starting of main motor.
2.
0 s~.n~;
3 . Le.GT.r ~ for o* a,,tnmatiC tart of auxiliary motor.
Dever for grand totals.
~, Lever for subtotals.
6. printing the values of each card in the six
Lever for ~
calculating sections.
7. Maa a motor starttg button.
8. Stop button.
9. Auxiliary motor stop button.
10? Card feed.
11. Cornmutation plate.
12. Shift lever for printing tb.e indices of each card or
the totals.
13 ? Printing m echani sm.
l4. Registers.
iS. Am iliary motor.
::::..::,, .:.:: ,
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CUAPTE1:t Tv
pKENCIa '5 OF UOCU1E1T ON DOCU ?
,NT J9UT1NG ANU INTF,N& CONTO~
1 . THE GENE CONCEPTS OF BA1 NG UOCUM NTATb0N
counting work of any enterprise
The The correct operating and ac
or considerable extent on the quality of
an
institution depends to a or anization of the docentout:~ng d
the doc~amentat~.an, the g
The rapidity and ef'ficie11cy of the
the arrange1nents for control.
... arious links of our huge socl?~.~st economy
settlements between the v
s stem of documentation, document in~-
is mainly dependent on the y
terchange and control.
of hard to imageirie haw impax?tarYt these
For this reason it is n
the State Bank USSR, where hundreds
conditiarLS are in the warlc of
various kinds must be processed daily.
of thousands of doctiimerits of
t an we imderstand the aggregate of the
By banking documenta
ents that circ~alate in the State Bank.
various forms of datum
Each operation completed by the State Bank is necessarily
formalized by a bookkeeping entry based on the corresponding
document of the given operation.
cilitating the processing of the
One of the methods of f a
is their standardization and typicaliza~
huge number of documents .
the State Bank has tried, and still tries,
Lion. In this context
to have all the; documents that circulate within prepared, on farms.
a p and to have the requisites an each
of prescribed size and sh p ~
115
.,.
t (iapp, 44ii r
,_I14E, '{~E % v CG
~# v
p
a ~zlu~' rl tsk I, ~'4
'
,
u
. r
~
~~
``Y f ~
g 1 sarii~yvy(,, 1 r, ~F
. r wl~ ~Y 417q t 5 r7; $r
I I I ri 1.4r { t+I Gj*1" v lir ~ ! 4>/~tV{A ~i tk'~'~rfi ~9~A i 1 r #,1 ! s~ kll (Y~' %~ L ! ~ ;i ?~9F 4 I~r 1 p , ~;~~011'A~4~
1 i s 4 rY.~;(r tI N + t3 ~'#Y,1~''~ tJt tr?~~'d Oar i'+~1
t~~f~>f r, fl I,,~'., ~~ v'i n 1,,,,~117i ~`,~vi,~'i?y7v~~1~1~,ITd{k~rr0{G,S~tl ~r ~pv4nllS}ilh'1j,{}11~~?~"~Iwl~do iN~~,;~~XP`~'A+~fh~~I~1I~}t`~'~~Y~YT!"lPn:~!1~yi.Mrj~R~ ~.'~;1~~+~I~"~'g~k"~!'~
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 0 O?
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00
addition and reduction [in and out).
These are divided ? ~.ded into
saes this type of memo, receive-andwdelivex memos
Be~.
are also met in. practice. They are used in cases where a particu-
lar valuable ' s simultaneously withdrawn from one non-balance'
~
sheet account and added to another such account, or when a sub'
stitution of documerlts occurs, which is reflected by a charge to
one detail account and a credit to another in the same balance-
sheet account.
distribution order is placed on every document
An account
thoriz1ng an account entx'y in the State Bank. The term account
au
distra.but means an indication on the document of the synthetic
~-on and analytic accounts to be posted, together with the amount and
date, certified ' .~ the signatures of the proper bank officers. .-
~~ g
ter this , the document ;becomes a posting memo, from which both the
synthetic and analytic account is posted.
No alterations are ever authorized in the ariiounts on docu-
an which money, valuabJ.eS or securities are received or
meets
by the State Bank. Daeuments with altered amounts are
paid out
considered invalid even when such alterations are specifically
noted.
It must be noted that the so-called method of multipli-
extensively used by the State Bank in fil:Ling out
cation is
document e' it consists of the preparation of the document by
the client or a bank employee who commences the formalization
of an operation, in as many copies, using carbon paper, as are
,
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. For axis fence, in satt1.ement5 be~.
re~~~ired. by all ps,rta.ca.pants
"
suppl~?ex, de~.a.verir~g its in
twee ts suppliers and purcYlasecs a ~
oiceaccaunts for 1~!e State Bank establishment that
~ co7.7~ecta.on to ~'
v
? es of the ball It keeps one Of them,
serves it makes out four cope.
lie State Hank establishment that serves the
one is required by t . the
ablislvnent serving payer, arid
~7.ier one by th.e State Hank est
sup/ ~
?er of the effected paymer,~~t. Payment
one is to advise the sup~,la,
F -af-town tra~sfexs) are filled out in
orders ,,
orders (fox instance for out
omexs and State Bank offices handle
the same manner by the cuY~t ~
advices for interbxanch postal transfers similarly (a mani..fold
of cards with four copies).
3 SIGNATURES OF STATE BANK WORKERS ON DOCUMBTS
{
,
f cash-settlement documents by the signap
The certification a
tares of State Sank workers is of very great importance. Such
wa signatures of operative and accounting
documents must bear t
State Dank, of which one is by the person with the
workers of the
right of first signature and the second by a person with the right
of second signature.
The right of first signature, which is that of making
is given only to a stricty deter -
dispositions (of deciding),
nsible workers of the State Bank. In the
mined circle of respo . ~,
branches this circle includes the manager, his assistants and, the
Re Tonal Offices, in addition to these
head bool.~keeper ? In the g
officials, the right ofirst signature on certain documents is
f
. .
. ment_chiefS and the sector directors.
also.passessed by the depart
'
The right of first signature also conferred on s~,ecial).y
is
'~d>pIJFP(~ rt(I~'~ ~rYy Yl~tt(.1N(:' ydi~~F d~~0yr~''i~ ~V ~I~,f~41 Y)~YiY ~Fr~dl (Z Arai Y~ ~Jh~ 7~~ I..JF11~ ?i ( ~'dd h~'~r ~,1fl ~ti ~.t 4~)"~r ~'~~~~ril,~F~i ~.~Fnpy~`Y~F'~~~ GIlb11d~,~~',
rb,~~~"ii~,~'~~I ,r~N ~ "1~ rt~ ~'~~p ~~Ij~A~?~ ~I St~,I~ltS ny,~~~i~`~~ k~~~r ~'i 1,~y(dl~ ~f't}lp~`''d,~}{YF t~l~J~ i~'/~~~~ ~)k ~h 1M1a l'i 1 'C1Yy71 jyh W,Y~~rr~GJ d Y y*(~11U1~s1(1bf~"hS~y~ d;.i,~4
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trusted State Bark workerstthvut regard to their official posi~
tavns. In such cases this right is confirmed by he superior of-
Bank .~ by the Head Office; for the Regional
fices of the State
the managers of the Regional Offices for the
Offices, and by
branches.
p7rE State Bank officials who have the right of first sagna-
tuts ex off icio may sign documents with no limitation as to amount,
while persons orl whom this right is conferred by reason of canf id-
documents only for sums not e ;.ceeding the maximulrr
Brace may sign
established for them, and only for a limited number of operations
second signature is conferred on designated
The right of
workers by order of the manager of the office.
In addition to these first and second signatures, the
_ai1ce-sheet documents which certify the receipt
cash and non ba7
or delivery af' cash and of various kinds of valuables and se-
?t also bear the signature of the State Bank cashier,
~.es must
cura.
conf irrning the receipt or delivery of such items.
Letters, issuing directions, containing basic decisions or
ubmitting reports must be signed by a person possessing the right
s
of first signature. Many documents that circulate in the State
Bank require the chief bookkeeper's signature under all circum-
stances. Such documents include those connected with the certify
on accounts which record unexplained items!
cation of operations -
and also tYrose that cert.fy foreign operations, operations with the
dminastrative and management expense, and a
precious metals, a
~j, i,z n!u' PJS~W~ AI~p ~ ~? ,d2~ dd ~~ da nG + r , oy i ~~,+W
4~'ll pu , lul~~h7l h ~ il?t) rAF, ~ d"?~~t ) ~ f '1~ll5 ~~%1' 4~ ~ n Ne ~iAY1 ~G , dfQ~ . ~. ~ ~Ld~MIi ~ ~'.. ~'.PI~ tl
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in ink.
)4. FILING AND SAF.EG1JJ RDh! 0 DOCUMENTS
authorizing account entries are filed under
All documents
a strictly establa. 'shed procedure, which allows rapid correction
and assures their complete safety. The cash documents are drafted
separately from the posting memos.
cements are filed under the following procedure:
The cash d,o
At tbe close of the operating day, the cashier to whom this
task is entrusted collects the documents in ascending order of
balance sheet account and non-ba~.ance_sheet account numbers, and,
within these, in the order of detail account numbers, separately
for cash receipts, cash disbursements, receipts on nonwbalance-
s 1_nts and deliveries on non-balance sheet accountssheet accounts and deliveries on non_blaCeSheet accounts.
On the last page of the envelope of the package" of documents
the following words axe stamped: "This package contains so and so
many sheets which have been numbered, taped together and fastened
by wax lead seals.' This sta; p is authenticated by. the signa'-
Lure of the cashier who has drawn the document. On the front side
of the envelope there is a stanp showing the following facts; Name
of the bank establishment in which the package has been made up,
date of making up, number of cash receipt documents and their amounts,
number of cash disbursement documents and their amounts, niber of
non-baa-ance-sheet account receipt documents and their amounts, num-
ber of non-bel,ance-sheet account delivery documents and their amount,
Signatures on all financia7- settl,e111e1 docunlents are made
131
! I,9I y {oI.O b i 1'1 {~ 1" '~' I ~'~ I I I I ~~{ II P 4
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398000200060027-5
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GS-At
and the signature of the s~niar `and the chief bookkeeper.
saf ekeepin; periods and the index
Above the stamp the
number of the file are also shown,
oWts of the documents contained in the
~'oot? ~.n~ the am
di s ensible step. The agreement of this
~'
package is an entirely n
total with the to t s shown by the jourflal evidences the fact
? t ex.ce Lion, which have been entered
that all documents, wa,thou p
? n da,axe shown in the journal and are ac~
during the operate g y
tual.l y a.n ex1sterlce.
The do curYient s included in the package, with all annexes,
are numbered serially page by page.
b,e cash documents, Pied under the procedure we
All of t
have just indicated, are kept in the vault or in safes for 12
months, under the custody of the senior cashier. After the ex-
the are transferred from the vault to
piratlon of this period, y
the general. files of the same State Bank establish~rLent, where
they are stored.
documents are usually packaged by the journal
The pasting,
clerk. At the end of the day the journal clerk foots the docu-
the accounts. It is advisable to
ments an the debit side of
make this footing on the "DSM't calculating and bookkeeping ma-
.
chine. ~.a The documents are then arranged within each balance-sheet
account in ascending order of detail account numbers, and, for
balance-sheet accounts having items [subheads], for instance,
t or No 2~3 'tAdrninistrative and
account No 251 uUperata_ng income t ,
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? scend~.ng order of the a.tem~ numbers in the
management expense , a.n a
ncmeclature of these accaunts.
The posting ng documents, after being arranged in this way,
are nurra.bered sheet by sheet arid bound together. The envelope of
' th the name of the bank office, the safe..
the package is stamped w~.
file index number, the number of documents
keeping; periodr the
and the total amount involved. This total is then checked against
the totals of the debits to the accounts shown by the journal,
after subtractin~1 the turnovers to the debit and credit of cash
~
on the operating day in question.
of documents and their amount is certified by
The number
the employes that foots them, and their agreement with the jour-
nal is certified by the journal clerk.
The number of sheetsa numbered, taped together and sealed,
Last sheet of the envelope-folder. In, large
is certified on the
where there is a separate journal in
State Bank establishments,
each operative department (group) the dockmelts are made up in
separate packages for each group, arid are then tied together in
a single for for each day.
The documents for the balance-sheet accounts of groups
I, XvI, XIx, , X~, ~I, XxII, III, XXIV, and XXV (special funds,
adm.in and management expense, capital investments by
' v
~.strati e
tl'le State Bank, income and expense of the State Bank etc.) are
,
docu-
t in s,e arate packages. This is done to
kep p
the drafting of all kinds of certificates on
mentary audit and
the transactions related to the accounts of these groups of the
133
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balance sheet. Copies of the posting memos are also placed in the
same packages co~itaining the general documents covering the oper?
Lions on such balance?sheet accounts. The documents supporting
a
foreign operations and those in precious metai-e, are also made up
separate packages. This is because a longer period of safekeep-
~.n ing is prescribed for these documents than for those covering
erationsrrhe settlement documents for the out-of-tawn goods
other op
turnover, the cards for interbranch tran.sf ers, and a few other
types are made up and safeguarded under a special procedure. De'-
tails on this subject will be found in the chapters dealing with
such transactions.
Some documents of special importance must always be kept in
safes or strongboxes) in the vaults Such documents include: the
monthly proof-sheet for the past month and the annual report for
the past year with all annexes; the balance control-sheets or
cards for all detail accounts for the current month; the cash
documents for the current year and the posting memos for the current
The following documents must also be kept in a safe place
month .
and, under all circumstances, in iron safes, coffers or strong
bo'es; Posting documents for the current year (except the post-
ing documents for the current month, which must be kept in the
vault); the card.-file of active detail accounts, as well as the
/9
detail account sheets for balance-sheet accounts No 210 "Other
debtors- and creditors",N,o 212 "Accountable persons", No 213 sub'-
branches"; the operating and registration journals, books, staffels,
and est-sheets customer signature cards;.unpaid balls, list-
~.nter ~
notes and other documents accepted for collection from suppliers;
~r~l?l,p ~Ir~~~t~.~ea~sa~i~w ~!~.,:i ~~. ~~ l'Ctibl+i,~?" ,nllai~,G~p',":,r/r~,
tied in I-dart - sanitized (o
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Form Rio 10
>n
~ N
4 a-1
00,0
cj -P
~s ?rl
O cr1 E
v
-P
w ~+
a)
4 OcH0'da)
cd 0
?H O ai
d m
~ U
0 ?d c~i
a
vH.
b
?H t4 ?r{
p N O
00
E- U
l
Copy
Out-of-Town 1 Transfer I~pp1icatien
(Yellow paper)
Souzor?uchet standard form 80
r~
~ ings Clerk Type of
,~e_rdt
No IL Operation
No l
Date 21 September lqh Out-of-town transfer au application No 12
erson Cannery Plan:
Kh ~
from whom -- name of payer
To ~ ~ of the State Bank
Regional Of.-ice
~ The , ~,nerson
with you and transfer
Charge our clearing /current account
0 To the Kerch Branch of the State Bank, city of Kerch
(Name of bang ) and ? Zts address o city, republic, KraY
oblast
0
To the perch tthjva-H gard t1 plant of Narkomto Tetinet
To 17L.1 22
-
( Name ee Clearing ICalzent , ~c count N
~~~e of _ pa~ ~,
+- five hundred rubles
u snd
ty
Twti1isJ 1 o
in words
T 1 September lq
In pa,~~ ~nent of bill ~ ~t0 229 of
Space for Signature of customer)
seal or
stamp
of customer)
(Signature)
DEBIT
b mail No
account of payor
1
55i21~
No 'IFO CHIT
ll Sly B ac No 263 B/ac No 2l
to be filled in by
Custa_ner
by bank
by
Amount of Telegraph
transfer tol1S
PL ?
Executed by bare
Bate 21 September l9 I5
_
Controller Operations Journal
clerk Clerk
(signature) sig(signature) (signature)
FO No 79211
Advise
Controller
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
unpaid bills, executions and other collection items forwarded for
payment; unreconciled advices on initiated interbranch transfers,
copies oI` confirmations on initiated advices, unreconciled advices
on interbranch txansfers contra, and the final checkerboard
sheers on the account "MFQ contra"; and bank seals and stamps.
The tables of the transfer code are kept separately in a
fireproof safe in the custody of the person assigned to use it.
rfwo kinds of files are distinguished in the State :Sank;
Vat are called current files, and the general files.
The current files are divided into the files of cash docu-
ments; the files of operative bookkeeping (posting) documents
and accounting records; and a file of other documents and copies.
The cash documents of the current file, such as cash orders,
paid checks and other cash settlement documents, are bound together
and numbered for each day and are kept in the vault under the
direct change of the senior cashier.
The documents of the second and third groups are kept in
the operating departr-lents under the custody of the chief or
senior bookkeeper. In large State Dank establishments there is
a special file clerk who is responsible 4
The cash and posting documents are transferred, a year af-
ter they have been filed, from the current .files to the general
files of the State Sank office. The documents are kept in this
general file for the nwnber of years prescribed in the file in-
structions issued by the head office of the State Dank and ap-
136
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
0
0
` proved by the Central File A&nini$tration USSR. All individual
'll ?I
~.nstruC~
files are given an index number pursuant to the lla,ng
6?' Lions and are entered in a special file register.
Certificates on documents held in the vault are issued
only on demand of an operating departnent and only with the
IQwwledge of the manager of the cashier office or of the senior
cashier. The removal of packages of documents with cash orders
or non-balance'-sheet orders from the vault is never authorized.
,All such certificates are issued by the cashier responsible for
the safekeeping of the documents. The documents are examined
by the employees making up the certificates in the presence of
the cashier. Posting documents are delivered for certification only
on authorization of the chief bookkeeper of the State Bank office,
and are examined in the presence of the file clerk.
If any specific document must be rerijoved on demand of
judicial or investigating authorities, this is done only on
the authorization of the manager of the State Bank office involved.
At this time, a statement is drawn up in two copies, one of which,
together with the demand for the surrender of the document, is
retained by the cashier, if a dash document is involved, or by
the chief bookkeeper, if it is a posting document. A copy of the
requisitioned document is put in the place of the original, The
second copy is handed to the person making the requisition. A
notation of the removal is made on the cover of the package of
documents.
13a
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060027-5
1,111
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
z?rti
?G,lr?
TEGw"RL IDMAapB1 DQQUT
the procedure and the sequence
~.an means ~~
locument circulat ,
efts that f armali~e ban1dng tr~sact~ons, from
of rautting the doew~
the t first cones into existence
eft . maYa when the ora~;~.na1 documen ants of the analytic and
down to the t e it i$ entered on the acca
' ncluded in 'the file package
tic accawltin:, and s then 1
synthe
made up for the operating day involVed.
n the wider sense, the term docent circu7. anon means
I
single establish~
of parking documents within a
the entire turnovex its dispatch to another
meYlt of the State Bank, and so includes
~_ for inst~~ce the document c1r-
ishment of the State Bank
establ
settlements between suppliers and purchasers in dif-
culation in
Bank establish~nent,s in
~'
ferent cities, which affects two 'State ? 'the
different cities. (See chapter V t'Settiement operations
of routing the document for each separate operation is
process
divided into number of successive stages.
? ate ,dank is commenced by the
;very' operation ~n the St
Sentation of an origin a1 document by the customer or by the
pre rocess.
eft by the b k itself ? The p
reparation of this dOCUm
p verification of -the
'rculation commences wa.th the
of document c1 ~r~.th respect to ,
? o f ortl and substance, that is,
do cu~nents as t
? the aporation embodied by the
larit of :' the e~cecutlon of
the yoga ~ nsists
arigl of the converslan of
. n ~ document.. The next stage. co
indicating the accounts to be
the document to a pasting'prder by posting
or the preparation of a separate p
charged and credited,
r?!. ,~,..Fr; b: JU E.~ 4{~.~';J! ,'S a xJ.~.~~)', ~,..1'?p ~7:... i,~, ":~+. ,h ~~,~J~?} ,l ~,y,ti.,'~,I~Drv~'k 4,ti~,,r 1 y,X`a,: I ,J, +iya~f 1,1.,,, , S~'',~., ?~!
(:?. 'Mrw ~.7r:~, ..~_~,II,r,.5~+,,,~h. P?;Cy. ~?k1 ~J, ,~, ~~r~~ Jr?}/ ~++aa;'F~b~, i~r~. ,. f~e~r t ?,''~r , ,(. ,~,i,C. ~fX i eau ~,~,P.~i,,,v
M1i,I .,4 G~,.r iav,W ~i, 4}' .,e yt.. Dk,,y, V7R I~JS~f:iyl nz 3,h; Ur,, Ji ,I ~,Jt PI w/f a,, r,,
A~' ifs' {}` ~1(~,g~7~71'J
1J1~ ~r 1' I ?s, +~, ta4y.: k. 'n^ ,.~~ 1 n i
'
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ly
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adbi' f ~.'qL ~ "~1 ~aj ~~v'6~lNt n
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7
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~ 4 !n"
'~ Ylfi ~ I s
iJ'~+~ of Vt 5 r P ~'rlt+~"")'
ssified in Part - Sanitized Cor v Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
In the large offices ol' the State Bank where a single
brigade cannot serve the entire clientele of a single 1coma.t
several operational arid accomtiflg brigades are detailed to serve
it. In tiis case all such brigades taken together foin what is
called an operative group, for instance, the operative groups
to serve the customers belonging to the food industry, the arkom-
torg, the arkoInZagOtOV0k, etc.
.All the operative and accounting brigades arid groups, taken
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 CIA-RDP82-00039R000200060027-5
In State Bank offices where the customers accounts are
kept on typewitXS or bookiceeping nachifleS wider the decentr8i'
jzed method of proceSifl documents, a brigade COS1StS of one
controller, two operationS clerics and one machine clerk or opera-
tar. In such brigades the the custoniers aecouiit are kept by
the raachi1e clerk or operator, and the operation clerks conceX1I
theiiSe1VeS exclusively with hand1ifl the operative ?ormaJ-itt'
In all cases the brigade _$ headed by the controller, who
:is responsible for aJi its work.
The duties of the workers in brigades that carry out the
separate operations -- for instance, relating to collectionS,
nterbran.ch transfers, athtisbrative and management expendi-
thres, budget operations, etc. -- ar'e soniewhat diferer1t in the
spe cific features that are cornected with the cbaraCter of the
operation, but here also the general rile is invariably observed
that the controllei checks the fornalizati0I5 and entries for each
transaction.
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
11Y7
3'
04.
September
constitute an opera live depar'thaent.
as a whole'
headed by marlagexs whose duties in-
The departments are
,? rah. d~.reetion of the work of all
dude, in the ma -n, the gene
r nci. general super;~saar~ over the proper
brigades and group,, a g ?
o erations. The department managers nego
f orni~l-a tun of the p
..son matters of izr>,po~:'tance, receive CO1U
bate with the customer
their dispasitian, and systematically verify
plaa.nts and check the Work o~ the depa
rt'lent. each operative group comp1etelY
all f,ransactians, both settlement
services its clientele in ?'nfor
the s nthetic and analytic aCCOt~- Un g
and loan, and, handles
which the ope'r'ations of its clients
the balance-sreets a,ccoti~nts in
are reflected.
fices with mechanized accaun.tirlg, the
In Mate Bank of f
done on macY~inc; s. Accordingly, as has
synthetic accounta.ng is alined
Tx the journal is kept in a decentr
been seen in chapter I ,
:Ekes of the State Bank. Each, depart
manner in the large of
roup thus has its own journal.
mental g -
of the State Bank the journal is kept
In sn~.all off ices
under centralized procedure.
The chief bookkeeper is responsible for the general setup
and, condition of and bookkeeping records in the
o~ the . accounta
.. r?:_y,: i . finr the. correct and tamely formula-.
fort their stct and efficient
* esponsibilities of the chief
r? ,
tion of the txan~sact.ons and
control. 't'he'a.gh?s, ;dudes,
date. 29
d b the decree of the SNK USSR,
bookkeeper are f lx:e , Y
Uri . th'e r
Declassified in Part - Sanitized Cor v Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5 ii
S ar~d data es of the chief book"
(R1~'~s~4fhi
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
gg~44'v'vF,
be in and end their work at the
As a e all employees g
of the bank, the employees who re-
~ offices
sie ~a.me. , . Tn ]a rg
cei heir work, somewhat earlier
fail, and a few others, begin t
~'e , the ~,
5o that they ash settlement documents by
are able to prepare the c
insta.tutions and ecanonl~.c o~?gan~
xs ~
e exs and senior' boakkeepe ?
ke p
x~at~ -~ with the am,ancimQnts made by
.:ans of the soc? ~.ala.~ed sector,
,, .NK USSR ?21 aL~r~e 1921
the decree off' the I
e calleCtian groins or brigade likeWise fo3 7rls a part of
Th enden?~ struc~.
? . ent and corxstttutes an indep
the operata.ve depar~r. ,
tL~ral group. The work o1, this this ., group is set forth in Chapter V
In }~egional Uf~'ices of the State
large branches and s>7~a~.1
? '.ons are d7.va.ded among two groups
Bank the col1ECta.on opera?ta e of the sup.
. ?~~;mated, who kee a card f11
The group of collectiUi1s or~.~ _ ~ ,h keep
the
collections demanded, wh1G s
tiers ~ and the group of
p
card file of the payers.
' Ces tk~e collection operatic~ns are
In the lar~;ge re~,ional o~?fl ,
? agate collection brigade
sometimes d.ecen~~~~a1.a-zed, that a.s, a sep
is assigned to each operative group.
~c}1 transfers is handled in the
The processa.ng of intcrbr
' ndiv'idua1 group or brigade.
((ices there is also a special
In the large Mate Bank ?
group ?le in the smaller State Bank offices the
ttmail room's while
ee
functions of such a mail room are performed by a single employ
've and. dispatch all correspondence..
,
whose dl~ties are to receive
tyti~1~n~vv~J.
2t ,
iw?x
a
i' ?4-4L
s "' Declassified in Part Sanitized Copy Approved for Release 2012/03/28 CIA RDP82 pOO39R000 2 00060027 5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
As a rule, entries to the detail accounts of custorr~ers are
hitt?~'~f%~'?h~!
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
the time the operating day begins.
As a rule, the bank accepts instructions from customers
for five hours from the begirifing of each operating day; kollchozes
Sel'po are served during six hours. Cash is accepted from agencies
of the Narkomsvyaz and savings banks for seven hours, while cash
is received all day for credit to the current accounts of kolk-
hozes and Sel'po, as well as for the accounts of private persons.
A:,1 mail that reaches the mail center after 1330 hours
(when work begins at 0900 hours) is delivered to the operative
departsnents not later than 1100 hours. All mail tha~ireaches the
~
All telegrams reaching the bank after 1Li.30 hours is also
stamped in the same way. Nail so stamped is examined by the
chief 'bookkeeper or his deputy, and after the urgent documents
to be processed have been taken out, remains in his office for
delivery at the beginning of work the next day.
The operative brigades post the customers' accounts on
the same day y that cash settlement documents are received, if they
reach the brigade from the mail center before 11l.00 hours. Tele~
graphic instructions are executed up to the moment transactions
with the clientele are ended for the day.
Settlement documents accepted before 11400 hours must under
all circumstances be posted to -bhe customers account the same
day.
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
cl within half an hoax or so- after the ac~
in practice c,amp~.eto s
k
ends, whale the ;journal clerk inisye has
ceptance o~ dncum~,nts
?~' ..account
the ' ourfl3l about an hour after detail
work of posting to th~
posting has been fa.nashed. 11 of the reaiith1g ta.rrie is used by.
^ ive brigades, for footing the detail ac-
the workers ai the open at
L and for proving the entries of the
taunts, fox closa-ng then, .
analytic actounting against those of the synthetic.
THJ3 GEN RLL IDEA OF IN ~~E~ NAIL CHECK
7.
Internal check is extremely important in State Bank es
prevent not only every kind of wrongdoing,
tablisl~lents, It must,
but also all passable errors whether in forniaiization or accoun.t-
ang of the operations.
ernal check include verifying the regular
The tasks of ant
completed, the correctness with which they
ity of all operations -
in the settler(lent documents, audit of the
have been embodied
ccounting record of each separate operation, especial1y of the
a
balance and also the verifiCation of the agree-
accuracy of the ?
1 existing valuables in the Mate Bank es-
ment between the actual_y
sea.ous metals, foreign currency, time notes,
tablisYrment -- cash, pr
s thetas and analytic accour1tirig?
etc. -.- and the figures of the yn
By the ttiche1ckf we understand the agregate of measures
.erm
substance of the operations completed;.
for verifying the accuracy.-n.,,
~ also .
in addition; the function of control includes the task of
. ';- ccouritin f~formulation of each .fan-~
verifying theu accuracy of the ~a~
I _ tin
operative and ccvun g
uncial settlement or `operation, and of all
a if f J,q jyY~ 1! I ~ G'G~6~y1~'h~y L
a 1 '4 f'M'~~ /l I { t
d ~ 't6C ~~gkP ~frv'7iul~I+~~L~~~t ~1~rt f4v, I ~i 1 I~a,~~e,~f 99 r16' Ids a~, ~.
ild i i ~~ L~~44u r'~4~kNh~h A,C~~ds~l~~ IfO~DY'eVl GRtDeclassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
~CCe~ 9 C~x'
C11'1'~ ~ praGC
CxC""
c, p.aC1,1,1,1C ~ 1a.'~ ~u? j:tC Co or
or . h,~~e ~ ~' ~~?~ ,~ ChCC~
y x~ caeh a;a?~~ s ~
n
e Ie pe~ant ? unt or eec Uti? o
s~anc s ex,, acca ~
clTn~ to a cus?h~c~rn
t? arial'" er
~' an a~aex~a'l,a.~re
'b
of eperat 1c,l porgy ?
the c?n'~xc'?
e ~,nc~.u~F s
bx~.~a., ~
'ecJ ?u
art
(1) the re1' o r? c -.an p~, c
x.11 t1I~ ,,iVe
it c7u~
customers acc?vn~9
afi "LYLe
(all of the
'~
en
the ~~ Cu1n?5
o:
ra
(~ acc 3 ~ the ~] Oren ~,:~a~>.sac~
?n cu~:t.arl of the
aut~tiax,
r.~eceSearY or tiie e B
equisti~es ~ccen'`,? o~ the
' nc,cl ee~,~ec;; a17.Y the p~
be e;~.a~~~. ~
1 g
() P ?~ the per?n presenk,1the.
~b
to sue p
or
cs
men's ~? ti^eCe or ?'~hexvaluab~. ve cash ^ accovn~
~'
e Cx' ..
-~a.ons T?r7.~,a x ~SpeG to th raps a .uda ~? a1La~h
or an?hyr Ctt'l an
?~ s~gna'tures and ,tamp
U
() the ~,uth~nttic~. ~ f
' es on ~':~e
Ynp.~
n w~,th
on carapa~'a,sa the sa.
dacumen't,s pxesex1tea~
the
ban1~'
wjth the
s a,ccovnts aYiade by the
ntxies to the cus'tamer
(6) he e
axd by thy;
d qr
~
e
xatc1.er"~s and the ba1a~~ces carr.
ape . .
' . 0027-5
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 CIA-RDP82-00039R00020006
0 00
-
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
N
(7 ) the accuracy of the interest figures.
Documents are signed by the controller, which concludes
the check and serves a sign that the documents are in order.
If, on check, any defect in the drafting of a document is
discovered, the document is not put through and is returned to
the person presenting it, or, if it has been forwarded by another
of the State Bank, is made the subject of an inquiry. It
branch
effect only on receipt oi' explanations removing all possible
is g~. Ven doubts. hen a document has been posted to the customers accoun
r
must establish the accuracy of the posting. To this r
the control
end the controller first of all verifies the accuracy of the ac-
un distribution in the posting memo and establishes whether
h
cot
the document has been posted to the proper customers account, and
then verifies the text of the posting itself,its amount, and
the accuracy of the balance carried fortitirard. The document is then
.7'ours-ized, and then put together for filing with the other s
5
j.
documents of the day. In connection with these operations, the
control must still be continued; since it must be established
whether 'the document has really been entered in the journal,
whether it has been accurately entered, and, finally, whether ity
has been included in the package of documents made up for the t
day, whether it was properly fastened in this package and whether 4
~.~
of the documents for the day as
it was included ~.n the grand total
P
footed. This is already the following stage of the control,
b~
hash has for its purpose the proof of the figures of the analy-
w
ri against those of the synthetic accounting, and of
al. accountig
tic
~
the j ourn.al against nst the proof sheet. P
!
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
. such a control, the package of dacu'
Tn order to perform suc atin~
must be e:~arna.ned, a control fa
menu that has been made up obtained
? e must be made and to total. so
for the entire packag b the jour-
, st the totals for the day shown y
must be proved aga~.1~
On1Jj after such a control operation care one be sure that a1i
nal
.exed andare xe:~-e cted ir1 the accov~~ting?
documents have been eni~ ? ade not
obvious that in practice this control as m
It is of course abva together'
ocument but on all documents token
on each separate d
been found is it necessary to have
Unly where a discrepancy has ~tl
entries, document by document, tu
recourse to a check of the
the errors have been found, and rectified.
is checked irr the State Bank in
The accuracy of. entries
? out exception, and by different method,
all fields of work, with
namely; by the method of visual check the ~1ethod of prov~.ng
par 1iel entries.
? ~,ments so-called periodic audit
In all State Bank eStablas
and accounting wank is also
of the vas?a.ous fields of operati~.~a-.
audit is to ascertain whether the
made. The task of such an the
cu]a ttan is properly set ups whethex
system of document car cuting opera-
te and whether all practices
control is thoroug, safeguarding-them
of ting documents, collecting them and
taons, dr
are correct
. 8. FORMS OF 00N TROL
;u .
1 of docents by customers
A check on the correct draf tang. r
on the pos~:~ngsto the..,accourits,
and operations clerks, and also
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
which is based on these docuument$ themselves, is called a
"Visual" check. The reason for the name is that it is made
he basis of inspecting the documents to be checked and
only on t
the entries made by other rkers, that is, without setting up
controlling detail accounts.
Visual check is made under the fol:.owing procedure:
All documents posted to the detail accounts are delivered
to the controller together with the account sheets. The con-
.. trcll,cr .ve.yif.i es the accuracy of the drafting of the documents,
and the accuracy of their posting to the detail accounts and evi-
dences this audit by his signature on the detail account sheet
and on the do ci~ment. At the same tame he checks the accuracy
of the new balance on the detail account sheet. 1rthen a number of
documents are posted at once, the operations clerk has the right
to enter only the final balance without putting down the new balance
after each separate item: The controller has the duty of strictly
examining the entries to make very sure that the balance of any
clearing, current or other liability account is not allowed to
become a debit [ show an overdraft].
r ~f~n~~~, ro ~q ai d
%r J' '' ~rt a' 'In j~W'
i
~ h d
t tr
I 2
1 ~ t h o- ~
X iy i
d I
s r ~
Pr tF ,u
t a~ t
k ~
l +. t i ~ Ii n P ti
,
The operations clerk and the controller each separately
compare the signatures and stamps of the clients on the dis-
bursement documents with the samples on file with the bank,
and attentively examine all documents thatau.thorize an indi-
vidual to receive money or valuables. In the course of this
check,, the controller verifies the notation on the disbursement
document, made and signed by the operations clerk, showing the
,v~U~,dimL
Declassified in Part S tze. Copy Approved for Release 2012J03/28 : CIA-RDP82-0039R00020060027 5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039
possession of a passport (No, by whom and when issued) by the
person receiViflg the payment.
In checking the a dacwnents the controller pays special at-
all the entry spaces on the cash deposit
tention to whether
and orders have had ;lines drawn through
slips, receipts, checks,
them to prevent alteration.
The controllers stric'J-y watch out to be sure that checks
and disbursements orders entered by thasii in the payment boa S
are delivered by the operating brigade to the cashiers office
only according to these books and only against receipt by the
cashiers.
The following basic rules are observed an carrying out a
i nr ~
transfer from one account to another; The worker who makes the
must first make sure hat the sum has already been
credit entry
~
debited to the other account. For this purpose he sees whether
there ?5 a posting distribution authorization with the signa-
who made the debit entry to the payers
tures of the snployees
kers who make the credit entries to the payees
account. The tiaor
accounts have wraple si natures of the workers servicing the payers.
g
The aLltllent3. 'city of the signatures under the posting distribu-
then a
authorization are checked against these samples.
t:a.on balance a. 's carried forward from one sheet to another of a detail
.
account, the controller evidences the correctness of the trans-
,
fer by his signature on the new sheet.
h is deposited by customers, their accounts are
When ? cash .,
j1MI~ii
1 n. k{.TD'Asr,"I1~!.+v1'?AGVif 4."I~c~tL"~kVl~i[fiM.E'Y~V~)d41~`~Yildi!'~i1,l~r;tXtit y1911~i~~i'a"{"~ ~i"r:~Nla6r l Yfv~,
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
credited only ai'tex the cash has been actLtially received by the
teller. In this case bath operations clerks and controller must
as rely been received by the teller,
be sure that the money h
t sa. nature on the deposit slip corresponds
that the cashier s g
doubt
si nature on file, that is, that there is no
to his sa~np~.c '~
as a ment off' cash from the account o~
to its autherlt~-c~.ty? Thep ~
' after the arnaunt to be paid has been
a customer is made only
charged against the customer's account.
enrr~^ies Is used by the Mate Bank
.._.OOntr,.ol b,r parallel
ata ons and for transactin preCIous
only for foreign open
the controller uses the document that
metals. Wa.t11 this method
by operations clerk to the detail
has al.rcady been psted by
a second entry to a controlling detail
accouxit as the bases of
account which is opened for every customer or te of valuable.
teal rood of the entries agaa:nst each
Subsequently a daily mu p
other is made after the close of operations.
A special control has been established over certain
For instance there is a centralized
accounts in the State Bank.
control, vested in the chief bookkeeper of a State Bank office,
ent docwaents :Forwarded for col-
over accounts No, 43S ctSettlem,
lecta. ~ errtent documents for collection: maturing
on", No I~11~ nSeal
tc others. There is an ir~ediate control vested
at fixed date ,and ~ ' book~~eeper over accounts No 210 "Other debtors and
in the chief
' creditorst', t1Unrccoriciled ?~'0 items; over the the result-
'No 0 2?~ ,
ant accounts [ccounts?] over accounts recording the
'nom1'na7- a
.. reserve currency stocks ad fractional currencY? stocks and a few
others.
5
~. tall .n"~.~
~+ r< ttr ~Y~r~~fi ~ ~ n d "1~ ~ h ~ ~ rvr r '~ 4f I ' ~ q ,
fl~F,~l~i~f41ia}}~~ isi2~br~4~~~i'I~~4~`nlfH~~~bu?;n:}r4rk~v'Pt~~^~1+d'~`~~! x~~m9.k~ +{I~~ ~e ~ (~S!"t~(i?l~~
-
.
d~ ?~` rq t. IrorJrtip,?M"4" Y91fj'"+J )trr '"J! ~b.{ry? h!i rl z7 ,~: r
,~~FI tv~+Jl j~a~,'f??l~?,a~','~Y jr~+~e~'n ''ul ~rSp (I~ ' I {d ~+ya'~'i l i4~il I,v,rlrl, ~~~
d I'F4}+s~4~'r'~~r4Y $~pr + ?, 'Gr r', ~+J(~iR 'r r~''~ I ~' n'~+Pl~i~'~u w ~ ~ ~ &Af~ijglr+t+i ~{ry l.`tr ~ 4~i! r i1~Y
ail l '~ ,I '} I+ ~I.}.. t~'~, ~r ,, r r "E~~ rG (} rrJl P ~ I ;1,
~' 19 h ~ J + I ut ti t G' "~ V ~ ? }' ~ t''' ~ .1 I I ~i i} i ' ( v s !~ !?
g ~~y
Declassified in Part - Sanitized Copy Approved for Release 2012J03/28 : CIA RDP82 000398000200060027 5
 cc:: 0
Q
C [t:6:1::;;
r f s X?z&' ~ ~ r~l~~
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n,
a1 over the ac~aina.stratiY'e and
~ oaspectalcontr
The xesp
ianagemeflt (here is als xes onsib~ionsib~it~'
or expense of the State Bank off' ices.
f ~~es
, ating discipline in these oft
f the observations of estam on ~
uest~. a
hief bookkeeper of the o~'f;~ce in ~,
rests by law on the c
ces of the State Bank an
er. In large off.
togetx1er with its rnanag
d to assist the chief bookkeeper ~n ,
employee is specia:l.ly detaile s;
his control of these expenses .
trot the orders and documents
In carrying out such con
~, Lure of the administrative and
must be audited both as to the na
.red and as to the correct f ormu~-an ,,M1
management expenses illcux
' of the expense items with
erations by direct comparison
of the op
the correSpond auditor of ad~~inis~ ,
lines of the estimates. The k
~.ng
rat experase certa.fa.es the e correc Hess of the
t
txative and raanageme . ,,
~
p and exer
ents to bank employees a ents for wages and other pa~
~
t:uuely return of unexpended wage
cises surveillance over the
's
.,~
dis ~ositir~n of the deductions from grass
items and an the proper 1
pay of th e bank employees.
of the opei^atin-
The same auditor audits the keeping
or cards, the faxmva-a'uioxl of the oc7Jments connected with con-
vent y
e o erating lnventoiy
of State Bank buildings, wa th larg p
s truc Lion
-ld also exercises surveil-
p
urchases and with capital repairs, at
. coiu~t. No 212 "Accountable persons' ? Q1,
lance over the condition of ac
b the chief boolkkeeper has the imp
octant func-The check, made y
pf the operating day, the correct
at the close
tiara of checking ~
Y the operating brigades, d the iden
i
b
losv1g of the cash ar,.p
c ~ourna7-s
receipts and disbursements
it of the totals shown by the cash
1
~~a n
ppo~tl~
~fti ~ ~ ~} Y 977 k%kkYY ram ~ it
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
xo?vex cntries shown by the cash
a~.s with those athe cash to
jouxn
in the State Bank establisbnents
There is a stra.ct contxa~.
e11a ta.on of the used checkboaks
over the correct and timely cc
hckbaoks are accepted only by the
retur~led by clients. Such ce
?~ who ~nmediately cance~.s all the
chief' book:keepex or xla.s depu y ~
Used to identify a payee presenting a
checks and control stubs C
check for pa, t~ by cutting off apiece of each.
~. ~t~en
is off' verification of the card files
The fwiSlsts,'h,ernen
coverlg collecti.oi~s, NiFO and tiaile notes are signed by the chief
timeliness and completeness of the
bookkeeper, who checks the
entries in such inventory files
Control over the dispatch and receipt of :valuables is of
~' to Bank. T1Le orders received by the
great importal lce in the Sta
n eratiVe dep art~nents of the bank,
cashierts office Pram the p Cons
of valuables, are signed by the same pera
covering shipment
who are authorized to sign disbursement documents.
Valuables are placed in bordereaux or envelopes in
ookkee er and the senior cashier. In
the presence o~ the chief b p
large establisl~nents of the State dank an employee is specially
detailed for this function, instead of these officials.
by
'T'hese 0ff ic?J-s certify/their signatures that the valu-
ables have.. been properly placed therein and that the design.ation
ements and packages are correct.
on the endors
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n Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
4
t2 t:::C
athex
,ival of cash, letters or
A:l.l po atal notices Qf the a~~~~
uable mail State Bank axe delivered, not to
the addressed to the ~
the opexations secta.on. The after
e cashier's off~.ce' but to
~'
enters all mail register before
such sendings in the incoming ? icto take over the val. uab7.es This
notifying eked for the trteliness of the re~
register is the cashier s of f
subsequently c,he tiles by the
g , shipments of valua
counting for such postal sha?~
ceipt and a
cashier's office.
off' telegrariLsi the Stake Bank gS..
To control the dispateY.
tabl?s~m , of employees authorized
t file samples of the sn.gna? ~l~eS
~.cn
documents, together with an irnPres~
to sign f inancs.al settlement checks
die seal. The telegraph off i -ce
sion of its 0f f icia- beta/
a State Bank
ale rams received from the Stall financa.al set~lement g
against the samples on file.
?0 o
State Bank
egrams received by
?1 Pl~,
financial settlement t~
ers, must have a transfer code
blishments , including transf
esta
word, the control sta~~lp and sign
? fate Bank establishments
. f the telegraph off a.ce . The S
ca.als o
authenticity] o~ the telegrases, by
check the genuineness tor
and sample pressions of
51e e signatures of these persons
p
or seals. k!~
their stamps
any docents are dy ?spatchedj the mail room of the
.
Before
verifies the presence of the proper
State Bank estab7-isl~nents g
s and where necessary al$o the presence of the transM
signature ,
? ssiora of the herdicseal.
f'er code word or the ampxe .
er de osit or finance-al
There is a special check on the prop p
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDF
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
'r envelopes. This check is made by a
settleanent docume~lts in their
speca.a:L audi?tor,who makee makes the corresponding signed notation
on the envelope after checking its contents.
in all State Bc1I1k eatab1iShmellt8 aver
There IS a cQfl.trol
is inquiries, specially important
the pxocessirlg off' telegraph
. ' ati.on of complaits about irregular
lettexs, over the a.nves~~-~;
Bank and also over the timely receipt o~
actions of the State Ban
the clientele or to other State Bank es-
inquiries sent out to t11
ux ose a sj~ecla:l. person is designated
tab~.i shments. For this p ~ ~ ,
o revent le tiers of complaint fz oui being
to keep strict watch t p
allowed to accumulate without action.
all complaints is set up iA~. each State
~,eg~.strata.on of al
Ba~1k estab1is1llnent to keep track of them and control f their timely
7:55
disposition.
There is a complaint book in the lobby of every State
clients zilay enter camplaa.nts against
Bank establish~~ent, in which
Bank employees, or report other s~lort-
irregl~lar acts-ons of State examined by the a~?nistration of the eS-
comings? This book is
r ~ and the results of the investigations are
tablishment in que,,t~.on,
brought to the ]owledge of the persons co~nplaining.
There is a special control on the execution of urgent
he centralizer accounts in other State
transfers of funds to t.
? as well as over the dispatch of urgent
Funk establishment , book-
This control is entrusted to the chief
accaw.1t~.ng xeports
s; A control ticket is made
keeper and is organized as follow
00
Or)
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
CD r:V
W, I0
f er or urgent accouxi?Ling . The control
out f or each urgent trans
tickets are placed a. 'n a card fi7.e~ where they are arranged by
dates, The employee ?ercising the control examines the card
e~
file every day to see what transfers must be carried out or
what statements must be made up and sent out on that days At
the end of the operating daY, the execution is checked with the
employee >.dla. ?ng the matter. The control tickets on which
hax
the check a.s nlade are pla Ced in the card index for the new
period.
important to have the customers check the
It is exceed:~ng1Y r
' n hag the ".,
atiorLs. All customers are interested in Zav~. ?,
Bank s oiler
,.
bank do its work on their accounts promptl and accurately. The
the careful verification by them of the
basis of such a check is
accounts and the documents annexed. These
absLracts of their
a
o the re resentative of the customer o~-Y
statements are delivered t p
w ? r ~rec,~;ive .them, against
when such rep~'esentatives are authorized to
? .~ ccount sheet or on soccial card. When
their receipt on she a
statements are sent by mail, they are registered, and sent at
tames agreed with the customers. If the customer does not c~-1
~.
to pick up this statement, it is sent by registered mail after this st
twelve days have elapsed. In order to avail abuses, the delivery
or co ies of the statement prepared from
of duplicate documents, p
the detail accounts must be authorized each ta~ae irl writing by the
manager of the State Bank establisl1mentI
first day of each month, the bal-
On the statements an the
once of the account. is shown in figureSy and the blank space
Declassified
itized Co
Y1y{~`i f`1~kj}}iu7,dy~'~III tih~p
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
on both sides of the amount ruled through. In the statements on
January l, the ba1ancx: is also shown in ords. A11 doubts of
the customers as to the correctness of the entries, or the timely
passage of any amount to the account, are urgently cleared up in
the bank.
According to the existing rules, the holder of an ac-
count is obligated within ten days, or within twenty days if
located in a rural corirnurity, to verify the correctness of all
entries to its account, and to advise the bank of any ob jec'-
Lions to it. in the absence of objections, the statement of
account &rd the balance's ara considered confirmed.
A general and mutual verification of accounts with the
customers takes place once a year on January. As of this date,
all customers are obligated to confirm to the bank, in writing,
the balance of their accounts. In addition to the operative
control, the chief bookkeepers of the State Bank establishments,
or their assistants, or, in 1Erge establishernents, the auditors,
periodically check the separate fields of work with respect to
the correct organization and condition of the accounting work
of the document circulation and the internal checks, and also
with respect to the correct execution of operations and drafting
4
of the documents. At the conclusion of such an audit, a certi-
ficate is drawn up and signed by he person making the audit, #
who enumerates all faults and omissions noted. The certificates
are stapled together by months and are kept by the chief book-
keeper, who is obligated to take the necessary measures immediately
to eliminate the faults found in the work. He makes the corresponding
157
Copy Approved for Release 2012J03/28 :CIA-RDP82-000398000200060027-5
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
[fee copies of LOCal Transfer appliCati.Un and Qt-of-Town
Transfer application on
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
tatiofs on the certificates with respect to the correc~
signed no
tiora of th~;se faults
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
STAT
Gx1.`1~ V
STTBE '2 OPERATE ON S
vita S ,'.I'T '1.NT SYST. '1 NOW I1~ ~FECT.
1.
?e all organizations represent sigtile
In o' social
~'ar thie rcaaon, mutual settlement
l.in~~s in one national econarn,~ ~. in
~m ox?tar1 ce with us than anywhere e7. se
relations are of greater p
the warld?
Mutual settlement relations arise in connection with claims
at~.ons against each other for pan0fl
a.2
by enterprises and organ
These mutual rel.atians are x^egL~.ated by
for goads and serv~,ces. ? r~ b 'commercial. contracts which specify
law and are precisely fa.i.cd y
? anner in which settlement is to be made.
the forms, times and ra
the last analysis, by pa~rment from the
settlements are made,
a,er) to the organization or enterprise
purchaser (customer or p
7r~a,rketing the goods or rendering the service (the suppliex')
customara1Y called turnover or co~i~rlodity
`t'hese settlement are
settlements.
Other settlements not connected with the furnishing of
' se in the socialist en~erpriSes ar~d
goods or services also are
organizations. They include settlements with the state budget,
? ^ coon and repair, deductions for social
payments for capital canstxu
? ins for higher-level links in the chain of con-
insuranc e, deducl~o
time and form of such settlements is es-
trot, etc. The manner,
instructians of the commissariats con-
tablished by law and the
cerned.
159
?,1C, wig?~~{~'~~. r~J ,i^.n4~.~h. aft! i r, ~'i.!?~f ,,:I. it P~.~r.i(:ia r1i'.' t'.I i`1 'i> h !:i, ..
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 c.J
kYlt'i?~:
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d xa idity of settlerttients is a ~;uaxantee
The correctness an p
use of the material ar~d financial z'csQUxces
of the bast possible
For this reasan settle~ients Thusttake an
of our soca.al.a.st ecanamy.
ifl to a def~.>riite system s,ssurintheir
organized course, accord ~
control on the part of the bank. A1.1
formz.ty and the campulsaxy
e for sjrla:ll ~o~,u~ts, must under all cixcum-
Set~,lements, except those
? u, h a bank, both in cases of settlements between
s~Lances be made thro ~
b ~lon-:u~g to two dii'f erent systems and in cases
econaraJ.c organs. c ~
' ct a trust (Glavka) and its component
where the settlements effe
enterprises. All economic, state, cooperative and publ:i.c organi-
ree aerating fluids in clearing account
zo,tions must keep their f p
' on the character of these accGUnts and
or a current account [Details
'r7taina.n r t~le1T1 W1.1.1 be found below
the procedure for openir~~ and ~naa. ~
with the State Bank.
The State ?te Bank is the only Settl.efierit center, the gen-
eral state apparatus for the registration of production and the
oductstt (law of March 24, 1921). It organizes,
distribution of pr
carries out and checks settlements. This makes it possible for
? sake an extensive use of clearing, Which is economi
it to . (1) r
a more advanced method of payment than cash
tally and technically
settlements (2) control the economy by means of the ruble, dis-
l.lawing ; illegal, irregular settlements, uncovering defaulting
a
payers, and supervising the regular order of payment; (3) im-
nts adapt them to the peculiarities of
prove settleme
the several branches of the economy, and to .protect the interests
.
of the absent party (su,?ppl' br or purchaser) to intercityet1~1.e-
~.
called settlement credits to economic
menu; (L.) grant what are
16U
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
organizations. These funct'.,ons of the State,BsnJ in the field
of settlers eats are connected with the credit ref orrn of 1920,
which replaced corcmercial credit by direct bank credit and made it
possible to convert the State Sank into the only settlement center.
As is cornmonly known, when the credit reform of 1930-1931
was carried out, wrecking actiVities had been going on, which
led to complete disruption of contractual discipline and khoz-
rasehet in the mutual relations of economic organizations
The bills of the supplier were paid regardless of whether
he had complied with the contractual provisions with respect to
prices, quality and title of delivery, and therefore he did not
bother at all about fulfilling the contract.. The purchaser was
deprived of all possibility of acting upon the supplier, since the
bank paid the accounts without the consent of the purchaser, who
as thus not the fully empowered master of his on resources, with
full powers of disposition over them. This very gross distortion
of the credit reform had extremely unfavorable consequences, and
goods `or rendering of services by one
The pxd:nciples of the current system of settlements by econom-
ic organizations material commodity 'values, furnished to one
'another or for services rendered, are as follows...
a number of government decrees were issued to liquidate them(dated
Jan l, 1921, March 20, 1921 and July 22, 1931). These decrees
were known under the name of corrections to the practice of the
credit reform. The current system of settlements is mainly
based on these statutes and subsequent supplemental legislation.
The sdJ.e' of
r!F INO~t i ` 1 ~~ t ` Wr `i~ i y~7 ~, t '~~li ll~k9 t~{t AI`'k4i J C i~ !P ~ crl.~.i?iiE t4
I q ' r~ Mry ! ~ }f yyF ` ~'~ ~S d( r ~ ~~,7t j~j~t ~ yj', t~lr !
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
economic organization to another on credit i& forbidden, as well
acceptance of advances on account of such sale or service
as the (law
of Jan 20 1920) As exceptions, advances may be made on con-
struction accounts with, industrial cooperative societies by budget
.w ~
V, a V
i
s} F r0.
f
r~
r
+ f
I
rt
4 d~~~11 ,~ t 1pk
ix~s titutions) .
2 The goods delivered or the services rendered are to be
paid for by those receiving them (the purchase.rs). The method
of such payment is arranged contractually between the parties.
Payment is not made on receipt of the goods, but against invoices'
accounts and bills from the suppliers.
3. In most cases payment is made at the place where the
purchaser maintains a clearing account; and his concept (acm
CepLance) is indispensable for such payment. Payment may also be
made out of the letter of credit or special account of the pur-
chaser at the place where the supplier maintains a clearing ac-
count, i.e. likewise with the payer's assent. The acceptance
form is preferable, for under it the purchaser himself irrmedi-
ately checks the fulfilJznent of the contract by the supplier, thus
strengthening khozraschet and intensifying the pressure on the
supplier in the direction of precise fulfil:u ent of his contract.
L. . The preferred, acceptance form of settlement is used
both in local (intra-city) settlements (where both supplier and
?
are located in the same city) and in out-of-town settle-
purchaser
ments, (where supplier and purchaser are located in different
, .
cities). The letter of credit and the special account are em-
ployed only it out-of-town settlements
rx s,, r w re i
N Ni 5 f v~ 'qN YF' M ti S 4 n 1 h !;
i K vdr. J , 7>fl ~ ~
41r ~ t n t ~ Y 7 1 r
~R ~ f' o f r '~i ~ h
1 t I 4 err t~ s ~ i,
P a h o so a~ a zes~n or w3u a ~ l
t ~~ l~rl} ~~d~:tfrM` tiRl}3~~~rN~ ,h'~'D,~i~~lr~ ,, ~ i n?'i' ,f,, f? . r vf`~I.? ~ ~~Y(. ~' 4 ~ ~~ i? N 11~~~i ~ ~~?Q'~"js ~fj" ~~~}C~~ ~dr,
E>+. 1r ~kr a 7 A ,~w i . h. ~x L1~ Ih , i^ , I ,~ ~, r ,,ale ! ulfu I Declassified in Part - Sanitized Cor v Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027 5
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to the peculiarities of the individual branches of the national
must invariably be made through the bank,
I Settlements
~
all settlements are made by clearing,
The overwhelming mad ora.ty of
~sferred from the clearing, letter of
whereby amounts are tr
credit, special, special loan or other accounts of the payer to
the clearing accounts of the suppliers.
a rents only to the extent of the funds
6. f rhe bank makes p~
of its pos session, and only with the consent of the
the payer in payer.
7. On the basis of the existing laws the bank sets up an
obligatory procedure of documentation and technique of settle-
~,
rrlen?ts, follows up the observation of settlement discipline, and,
:_n the case of payers not disposing of sufficient funds, observe
the payment priorities prescribed by law.
In addition to the general forms and procedures for
settlement (acceptance, letter of credit and special accousettlement ~a
so establishes specialized form of settlement adapted
the bank al
. economy.
i
Violation of the rules of document circulation is
punished by a fine.
So as not to burden the bank with a vast volume of small
ons, and to avoid interference with the concentration of its
operations, and to avoid interference with the concentration of its
~
attention on the settlements which are more important from the
nat c point of view, it has been prescirbed that outs-
of-town economic
of town settlements of 1000 rubles and upwards are to be routed
vl,
ddr~xQ"J))~ J ~i
bk~r~PPd btfl~~l~~~11,~ ~APAJ~rI
"rx`yP Il g ~,
;!!1rti u1
or
y
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163
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E
through the bank (see pp 99100 fox the exceptions) while city
th 100 rubles (this
' Fr
settlements are handled by it be,a,nna ng
i
a~r~ount may be increased to X00 rubles by the State Bank).
Small settlements for out'-of~town transactions (less than
the minimum) V. O. D. basis or made through the organs of the
ComYl~issariat of Communications; while small local settlements are
made in cash.
2. CLBSNG ACCOUNTS AND CURRENT ACCOUNT'S
Almost al:;.. forms of settlement operations are connected in
one way or another with the clearing (or current) account of the
client.
The tern ttclearing account " in the sense in which we use
it, was employed for the first time in the decree of the S'A'O dated
22 July 1931: "On the working capital funds of economic organs".
In the seventh section of this decree we read: " All funds of the
economic organs, both their own and borrowed, are deposited in
the clearing account of the organ with the State Bank from which
said organ shall make all expenditures and pay all of the obli-
t
gations.'
Clearing accounts are opened for organizations and enterprises
engaged in economic activity, placed on a.. regime of khozraschet,
possessing their own working capital and final balance sheet, and
,
making settlements according to the contracts made by them. Cur-
rent accounts, on the other hand, are opened Lor organizations. not
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.C C
Interest on clearing accounts is computed quarterly; and
annually on current accounts.
All settlements for the basic, "exploitational" activity
of an economic organ are ref/ ect3d in the clearing account;
economic instance, for the operation of a factory, for trading activity,
count is maintained with the State Bank. As a rule
etc. This ac
one cleat ?ing account with the State Bank is opened for each econo-
mic the eqloitational" c1~ aring accounts of housing,
~.c organ. On
communal arid cultural enterprises are kept in the Tsekombank sys-,
while those of organizations doing building contracting are
tern,
kept an those special banks that finance that particular line of
?
.
construction.
165
engaged in economic activitY, namely, for instit'.itions existing
under a state budget (un iona republic or local), as we1:i. as for
professional partY and public organizations. If the budgetary
,
institutions have enterprises under khozraschet (publishing houses,
rest homes, e'uc), such enterprises have clearing accounts, not
current accounts. On the other hand, such economic organizations
kolihozes and small Sel'po without bank credit rating have
as
current accounts instead of clearing accounts.
Pa rrent of goods delivered as services rendered to the
v
customers with clearing accounts are made automatically by the
bank if' there are sufficient funds in the account, unless advice
not to pay is received from the customer. Such payments, however,
pY d
are made from current accounts, in the names of k11khozes, vii-
/age soviets, ets, ~, rofessional and party organizations, only on receipt
p
of direct instructions from the payer customer.
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The specia1 accounts for capital repairs', which represent,
as were sA? ecia1.purpose clearing accounts, are a variant form
~. were,
the latter. The character and purpose will be discussed below,
of
in section J.O. These special accounts are opened in the same bank
where the economic organ keeps its "exploi'tati.onal" clearing ac-
count.
nr;v'u DC,
An economic organ may also have an account for settlements
of capital investment, for construction (financing account or
accoui 1t current). This account is usually kept in the special bank
concerned.
These three forms of account make it possible for the bank
to check the employiiont of the econol?c resources according to
purpose. The bank must not allow the payment of capital expendi-
tures from the clearing account for the client's basic activity
(except for what are called withinpJiJnit expenditures), nor the
payment of operating expenses from the dapital construction ac-
count. To assure the possibility of checking the utilization of
funds according to their assigned purpose, special certificates
are submitted to the bank in a number of cases, besides the docu-
mer ts necessary for the operation. Such certificates may cover,
for instance, the payments of sums for wages, for amortization,
etc. In addition to this, supplementary data, in many cases are
on the documents (bills, orders, checks) serving as basis
entered
for the operation (notations such as for capital construction",
for instance) from which the regularity of the proposed appli-
cation of funds maybe established. In this manner the bank main-
tains an operative control over the use of funds for their intended
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nk may make a post.auda.t
a iunber off' cases the ba d$
purpose. Zn for instance ~ ~~~'
the c~.ient as to whether,
on the pxe,m~.se,~ o been used fox
es have actua~.~.y
~,~~ repairs or wad
a5signed or caA'
the purpose specified.
Besides the usual earing and current accounts, there are
E
cl
. trala.~ed r
transit and cen
and current) sub_accounis,
a7so cl,earin~ ( '
accoun on of funds. Their
? for the accu?ati
is used exclusively' are opened rode
eature is the fact that they
characteristic f and ~~ ,
' cand t
,
' ca`~~-on by the clients), ~
Ithout apple
by the b~~k~ (~w these accounts
these
pendentlY the hank makes no palents out of them. Details on
we or~1y re.~`
orresponding; sections)' r
are given below(in the c n accumulating apec-
of the bank i
wartime the work
mark that during anded -- for instance,
fulzda \as very considerably e ~
puxpose
of funds contributed by Movie' patriots to the :Funds for the re-
construction o the economy regions Freed from the German o
f ~
responding current account was opened in the
cupat~-un. The cot r
d other' offices of the State Dank, and these funds were
branches
month the balances off ' the ac
' credited to It. At the, end of the
J to the pperating Head
(erred (through the ito)
count were -trans
'nistration, which in tarn tr~.ns~
quarters of the Mate Bad Adma
ea. is side of the Union budge
(erred them to 'fie rec p
ccaunt, the client must
current a
To open a clearing or entered in the
fans must be en
~ to the ba;ik (A~-1 economic orb,
{a pre,,o ,,nt t
~
? existence. This xebis
rises to active
state register of enterp
ns~
and its local organiZatio and an ab-
der is kept. by the NIA' an
he required certificate. }
` stract from this register i s `~
167
c.J
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an application for the e apena,ng of the account ; (2) a cert if ied
copy of the charter or relations governing the activity of the
g
of the higher' level links in the organiza'
client; (3) the orders
als of the general assembly of members of the
tional pattern, pratoc
kolkhoz or cooperative, powers of attorney or other documents pre'-
?'.r of the 7ersans authorized to dispose of
cisely defina- ?ng the duties 7.
as well as the order appointing the chief or
the client's funds,
senior bookkeeper; (1) a list of persons authorized to sign for
the client in disposing of the account, with sample signatures
and a sample impression of the client's seal, and (~) a certifi"
cafe of registration from the f inaneial organ,
Gertl 'fication from the finance organ as to registration
is not required for the opening of a current account for a kalkp
hoz, public, trade-Union or budgetary organization, nor for en-
terprises whack are not independent legal entities (such as a
? c. K 1 documents respecting financial settle-
nlS~lo'pent~~ m in a p7. ant, et )
must necessarily bear not only the authorized signatures
.._ directors, managers, chairman of the adminis-
for the account
?on etc., but also the signature of the chief or senior
.
trata
~'
i
baokkee er of the enterprise or organization, or of a person
t, p
duly authorized by him to sign in his shad. This is required by
the /law of Sept 29, 1932, which assures control over financial
~settlement documents by the bookkeeping department
Transfer documents must be properly drawn and attention
(by a higher-level organization, or by a notary).
The client must notify the bank immediately of revocations
168
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in general,. of all ahanges in the
of pavers of attorney, and, account.
dis ose of the ca?earing or current
persans authorized to p
The bank pera.oda?caliy sends the client an abstract of
ose the indi~ridual account a.s made up
its account, For this s purp
in duplicate), which serves as an abstract, or
with a copy (i.e. ~ client
statements are sent as agre~.d with the
statement. Such 'ten than month-
... daily, every 3, ~ , 10 days, and in no case less of
? e affa~xed the documents explaining; the en-
ly. TO the COp].eS ar
ccount without the instructions of
tries which were made in the a
' memos (and invoice-accounts},
the client -- for instance, posting
. is of transfers to the accounts of
for payment of b~.l.Ls, and l~ ~.s r
a~. oods turnover. OopteS of the docu
the suppliers in the lac g
account-holder itself are not sent to its
rnents arig~ ~.nat~ ~.ng in the refe~^
these and all that is necessary is to
since it already has ~ .
to their numbers and dates.
to the individual account is written
The text of entries
in abbreviated form, or is replaced by key_flgures, the mean-
reva.ously 00mmunicated to the client.
ings of which have been p
The client must notify the bank immediately of any mis-
sing statements or documents as soon as the fact i$ discovered,
but no later in any event than the time of receipt of the fol-
lowing stata11ent.
The cla.ent IS s obligated to advise the bank of any dis-
? ade b the bank in its account within
agreement with the entries m y
ten days after receipt of the statement. The balance statement
u C)
19
(.)
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00
C_
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on the list of January must be either confirmed
made up by the bank
or protested by the cl~.~ .. ~nt within 10 days (20 days for rural cl,ientel e ).
show a3.1 discrepancies between the clients entries
Protests must
and the bank's entries.
The bank is obligated to verify the signature of the
client on documents for payment (checks, orders, vouchers for pay's-
merit ent etc by comparison with the original signatures on file.
Losses, -s, occasioned by charges to a clearing or current
~
account made by the bank in reliance on Forged documents are
borne by the client unless the bank is proved to have been at
fault.
The bank has the right to refuse payment on a check if the
check, or its signatures, appear doubtful, or if its amount ex~
ceeds the credit balance of the accounto
The client is obligated to indicate the purposes for which
~'
cash or transfers from one account to another.
it draws sums in
t if closed, or operations in its discontinued,
In case the accoun
checks and checkbooks must be returned to the bank.
all unused
Accounts that remain inactive for three months are closed by the
bank.
170
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~ ~?
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CURRTNT AQQQ[TS OF ~LK~1QZ1S
3. PECUS~IARxTIia OF Th
d a~,~,ta~ca3. ampoxtance of the concen'
The a,~-amense economa.c arid
cxeas~'lg kolld~oZ funds a.n the bank
trata.on off' the continually " ~n
ia1 attention to this question.
:Coxces us to pay spec
Of kalkhozes are distinguished by a
the current accounts es, Specifically, the bank makes no chares
number of pecul. ~ara.ta.
kha2 without its direct dispositIan,
against the accounts of a kol
the chairmen of the management
orders, checks, etc. , signed by
confi'irmed by the seal of the i klkho~ ?
and by the bookkeeper, and
ran$fers and letters of credit frora cure
The ~?nlmum amoti~.t of t .usual mini-
khozes if 2~o rubles instead of the
mum accounts of k~l.
mum of 1000 rubles, Transfers in favor of kolkhozes are paid out
' t regardless of the amount. State
in cash, if they request 1 ,
ts are sent to kolkhozes at least
meats of their current acco '
to charges to the current accounts oa
twice a month. lnvolun ry
.
court execution, and may not in
kilkho~ are al~.owed only under
percent of the balance in the account, and of
any case exceed lo Jawed an
to it. A higher interest rate is-
subsequent add~.t~.ons
lthozes w.. 3.~ percent annuallY? the
the current accounts of kol
zes are kept in detailed text, without
current accounts of kolkho
abbreViati?ons or symbols.
Kolkhozes remote from State Bank establishraen?'s,may have
reem,ent with the bank, at the nearest
a current sub account, by ag
' Ce. The koloz es make their deposits
past and telegraph offi
h from them, and carry out various
to these accounts, withdraw cis
ar~nts of kalkk1ozes with establishes
transfers. The current subacc
"~~'~~' ~: 'Fd p ~f~/1} ~ rc y+t 1 eN~g n o~ 1!! p r{y;~y~,c i i
C': ~? ,~ +.6
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ments of the Nkavyaz are kept under tht instructions ancI directions
of the State Bank, in agreement with the Nksvyaz, which details
an accountant specially for this purpose. The documents and enM
tries on these accounts are subject to a rigid control, The operM
ations are pasted both to the detail current subaccounts of the
kolkhozes, and to a special daily report sheet, which is sent to-
gether with the original documents to the State Bank establish-
raent concerned.
The State Bank establishrnent, on the basis of the docu-
ments and the report sheets, shows the operations carried out on
its balance sheet. The operations involving cash are reflected
in the current accounts of the kolkhozes in correspondence with
account No 1I.7 "Nksvyaz for transfer operations" (by separate
sub-account) whale the clearing transactions are entered through
the current accounts of the kolkhozes in correspondence with the
balance-sheet accounts involved.
l~. RECEIPT AND PAYMENT Or CASH ON
CLEARING AND CURRENT ACCOUNTS
Cash is accepted on the basis of deposit slaps, of hich the
form is shown on page 61i..
Before these deposit slips are turned over to the cashier's
office, they are checked by the operations clerk and the controller
and registered by the Ja tter in the cash receipts journal. The
postings to the customers account are made only from deposit slips
on which cash has already been paid in to the teller. At the end
172
zh~r
I~iF}sr.,
+ Vrf~, ? s J r',?kL 1.7 )
1' I s v:.': I 1'~ i.:r, ii J..1.., l li, a I ~..~;~~ }. I'.4 J ~'?:: i' 1;.:; ~.,. sf< + i;". 1 ::,J. ~~+:~ !i 1~IJ
~.~!v~. L.,!lk :. ,.. \'. ,~ ~ ~ ~J... .;~J~_? .. . s ., .I S' I,u s. .. ., ~..s ?. ~1.1m ~ -2J~+. .^ ~~
.r adl ?1 xvv I ~!'r 1 1
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The bank draws up its cash plan according to the verified
xamined materials from the firi.S, and then Pol-
and critically e
course of its execution, relying for its guidance on
lows up the
the purpose r shown by the clients for the use of cash on the
corresponding documents.
The clients draw cash from the bank from their clearing or
current accounts by checks, of the form shown on page 63.
A cheek is written on a blank issued to the client by
It must have a certain requisite and be properly
the bank.
drawn. ? TI these conditions are observed, and there are enough
funds the bank will pay the check.
Checks to a named payee are used by the Spetabanki in
settlement or capital construction, and by the State Sank for
cash execution S of the State budget, for the accounts of the
and also at the request of the holders of
consumer cooperatives,
clearing and current accounts (mostly when funds are withdrawn
shiers of. enterprises to xepienish' their
from the bank by the ca
the cash has been checked by operations bri~
ai' the day, after
Bade or group, the total suns nary entry (not by separate deposits
is made from the cash receipts journal to the general journal:
credit the clearing or current accounts of
Debit t'Cash" account.
group VII of the balance sheet.
clients withdraw cash from the bank for small pur'
The
chases and minor expenses as well as to pay wages to their
,
workers.
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 ail
nl~A I'~~5tita L ~ ~ &~' dt v'
~ha~4~1j!
.~;a;,i17i1k+aY
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supplies of cash. )
payee, bank is obligated
on pain a check to a named pa~ '
to '(The passport serves as a dacument to
verify the ident. ~,ty (s~~he pas p
evidence identity ' The bank notes the pe,sspox't numbers by whom
back of the cheClcx) of the person
issued and when issueda on the.
the back of the cYieck,
who presents it and to bake from him, on
?to
or the monty. A bearer check is pa~.cl by the ban
a receipt fo
any esu of course
? without his endorsement (unl
one who presents it,
eck a..n questian has been s?calen
it has been notified. that the ch
or lot.) cial application to the bank to
The client submlbs a spe
,_O0ir. (_. fTh --s appli cation has a detachable stub,
receive a chcck~u~~. - - r ,. and to
'checkbook from the cashierts o f'f jce,
used to obta:~n the of the
cashier, who receives in cash the value
settle with th,e
? coma .ns the client" s und,ertaking
checkbook . ) This Thappl ? ~ca~~ '~on
t d ke~ to prevent checks from
o keep the Checkbook under lock any ,
blank check issued to the client the
being stolen. On each the
ccount holder and the number of
bank puts the name of the a check
hand. The person who receives the c
account by ~tssnp or by
establish his identity. The
book exh~-bits his passport to
numbers of the checks issued are noted on the back of tb,e signa~?
ubsec'ueritly presented for payment
Lure card; when checks are s l made out
ra~rlined to see whether they have been
their numbers are e~.
The use of checks
t
issued by the bank
fcaation of check
of control
Declassified
to
another
clien
.
e
1 client 'is not pert fitted. The veri-
bers is one
the most important elements
of
and ?should,.
be made simultaneously with the
therefore
dp' r a
9 dlvdh R^"7y~'fn.,f ! , 7~ VV`r"h ~ LI ~ 154 4~nr49r?~iF~l~4y^rp j[~rti~ ~ 1M'F k~ ^ 'i(~~I"~ ~ ~4'~V~r~
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a II
o?o 'CD
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~;s on checks I3eoxe isau~.ng a check-
vex~.f icatian of the s? ~.gr~atux
vexifi.es the number of cheeks in it.
book, the cashier
The amount rece d by the cashier during the course a~
~,ve
checkbooks, is debited, after veri~~.ca-
a ~?~
~the day ? ~ payment I
n ~,t and is credited to accazaut Na 2~
?~ion, to the ' casY~ aces ~
cea. ts" while the blank checks issued to the
nlv1.:~5cellaneous re p
" o deliveries from the non-balance?-sheet
client are charged t
account No 1451 !rblanks of strict accol~ntabili'~y't~
'21iecks for pa7n1ent are presented to the operations clerk
' .~ or current account of the client, The
who handle s the c1Ear~n b -
f gna
verifies the requisites, the identity o the sao
operations clerk
? ~ les on files the agreement of the check
Lures and seal. with the aarrtp
the checkbook issued to the client, and
numbers with those in
the presence of for payrnent in the account. If there is
f .ds
ent the operations clerk tears off the
nothing to prevent pay r- ~
it to the client, (requires the payee to
control stub and gives
. is to a rued payee), charges the amow'it
endorse the check ~.~ it
- c
unt and delivers he customer's account sheet
to the customer's acco ,
controller for audit.. The controller, after
and the check to the
.
the amount of the check in the cash pa,1ment5 Jour-
audit, enters
nal (In State Sank establishments with centralized machine account-
is not kept by the controller, but by the
ing a the cash journal
and also in the messenger notebook, and then
operations clerk.),. .
sends the check (against receipt in tY~e messenger notebook or
the cash disbursements journal) to the cashiers Office. The casYz-?
? signatures of the bank officers, calls
ier, after ~ the
vex ~.fyx.ng
f the contra/ stub, .anal after aska,ng him.
the payee by the nunaber o
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'
the ` ayment. At the end off
~.t he iS to receaVe, makes p
what arno eneral journal
owin- entries are made an the g
the day the f of ~ ~ ainst the
Sement$ aourna1 (after proof ag
fxom the cash da+sbura edit "cash' ac-
Cash~ ~ Debit clear:lg or current accounts, cr
cot.
SHE BAINK' s CONTROL oV;R THE
DISRURS '1NT OF WAGE FUNDS
e
'tLltians must furnish thbank
Budget and lchazxaschet nsta.
'with the cextif irate of the local Finoxgani an the registration
or their exemption f ram, such
of their staff complement with, ~ ds
~, to make sure that the fun
registration. The bank follows p
-
ents by ~,ozraschet and budget institu
received for wage paw and the
id to th.e actual number of employees
Lions caxrespor
' thaut exceedRng the wage fund
~iount assigned for wages, without
s and conf arned by the higher-lave
registered by the NK~ orgara
organiZatians.
For this purpose, budget and ozrascYiet institutions, when
ts of the second half
am
cash from the baik for the wage par
dxdw~.ng r number
nt a certificate to the bank, showing .
of the montY~, present
~
o xesently employed, wage fd
of employees aL~.thoxiZed. and nL~mbex p an
present status; settlements with emptoyees
authorised and ~. ts ~ ands' amount al-
leave; "gage deductions for taxes and governmen r~ b a
nts from the bank during current
ready received for wage pale
month; balance sta. ' ll to be drawn from bank.
' to with the figures on the wage
On checking this certif ica
registered with the Finoan, and on
ayment fund authorized and regl
p
37G
.::. _
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-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
~ aut ',a,Yida f o~' wags
the arr~ount s already paid out, the ban pays
is author?.~e the bank to
the carne ~~ne tile. clien ntM
amav
payments. ~ ~
Iran current aCCpUntS the
sfer from their clean-~'g or is on subsc~^ap..
a.nstal.~~en
from wage parents fox taxes,
withheld fr , nsux,~ce
tiurls to government 1oar~s, aid social.
ethree days to omen d oth em"
r~~punts not paid out witha- three of the
ark. (Gm the u1structions
must be returned to the b
r ,_.
p~,Uy~;es cltien~, ~.ey erep1ay~ ~:.~ for ~?
s the co~lpensation to wa:~ ~c;lu+ aria aLh cl.eara.ng ac~
used leave .,
duxa.ng warta.me was trans ecial
accounts or current ac ~'e~from their
colmts of such clients to sp
ount of the
c
depasit;'accaurlts operad. in a savings bank in the name wozker invalVed,)
card of the funds tsued
kee s track on a speca.al
The bank p
budget irlstitu'tion or khoz-
a erns to each separate
f.ax wage p ~ tt
a,schet organization' This card sl~.ows the authorised camp.
~'
of workexs, the authoriz wage payme nt fund, the dates of
ed '
is disbursed by the bank or
meets therefrom and the amavn
bursa the .55U .CC of funds
onthly reports cov'erang
are
this purpose or g
to budget and khozraschet ozg
for wage payments for each gavern-
hese cards. These reports show
drawn up from ~
,
meet de~' the number of organi2at10ns comp/e
.artment (Narkamat) ent fund
uthorized and payroll) wage pa
meet Of workers ~a is aid?
ounts paid and cash amour p
a,~,thorigros,r ~ am
ches send these reports to "their Regianal Office
The bran reports for
umm y
Re ianal Branches send s ar
on the..$th, and the.. g
e Head
the Cray ar 'Oblast to th
diced monthly
of the wage paymentsmade by each organisation is au
f l(..)o 1,
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
k's wage payment control inspector or credit man. The
by the ban a
monthly by b r the banlO s wage parent control inspector or credit marn.
The amounts of any o~ erpayrnents by the bank are deducted from the
payments made by it during the following month. Funds for payment
~s are issued only when there is a special assignment to
of prema.u~
the I hozorgan for that purpose.
amounts of any ove'px aYments made by each organization is audited r,
level organs. The wage payments made by industra.a7- enterprises
All state and cooperative industry& enterprises (factories,
plants, power stations, mines, worksbops, etc.) must have quarter
1y wage payment funds, broken down by months and confirmed by higher-
but such overexpenditure must be made good during the following
month. The covering ng of a repeated relative overexpenditure not
exceeding 10 percent of the planned fund, must be authorized by
the director of the Glavka or trust. Funds may be delivered to
cover a repeated relative overeXPenditure exceeding 10 percent
there is a relative overexpendituzle of 5 percent. The bank, of its
own authority, will issue funds to cover the first relative over-
expenditure not exceeding 10 percent of the monthly planned fund,
gram. If the percentage of utilization of the wage payment fund
exceeds that of the fulfillment of the production program, the
condition is termed relative overexpenditure of the wage payment
fund. For instance, if 90 percent of the wage payment fund has
been withdrawn when 85 percent of the program has been fulfilled
?urn.sd on.ihere necessary, the wage fund must be rediatri-
cti
~.
~
lanned fund only with the authorization of the Narkom having
p
the
of
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
must correspond to the stage of fulfillment of the production pro-
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
buted within the trust or Glavka.
If the amot>nt of the wage payments charged (for instance
105000 rubles) is higher than the amount of the fund (say 100000
rubles), there is an absolute overexpenditure of the fund (amount-
ing to 5000 rubles.) The Narkoms and the directors of Glavki and
trusts must eliminate absolute overexpenditures by internal re~
distribution of the wage payment fund, so that the amount of such
wage paTtlent fund authorized for the trust, Glavka or Narkomat is
not exceeded.
when the productive program is overfulfilled by an industrial
enterprise, the State Bank increases its disbursements of funds
to it for wage payments. The amount of relative overexpenditures
must be covered in due course by the Glavka or trust (by means of
internal redistribution). Unless it is, the amount is deducted
from the funds issued for wage payments in the following month.
From the context, it would seem that "relative overexpenditure"
might well be a printer's error for absolute overexpenditure].
The enterprise submits a monthly report to the bank covering
the wage payments and showing the percent of fulfillment of the
productive plan in terms of gross production turned out during the
month involved
From the cards showing the funds disbursed by it for
wage payments, the bank prepared a monthly report of funds dis-
bursed for wage payments of industrial enterprises. This report
gives the data for each government deparhnent (Narkomat), separ~
ately arranged for enterprises fulfilling, and overfulfilling the
Declassified
179
n Part- Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
C) C)
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
epa
ou~it of wages disbursed (sl~iowing
wage fu~1d: (14) ~'
o~ wages issued in excess o~ the
wriber of enterprises and amounts ~
rs
n
excer~ t of the production1 plan); (~ amout
tage of the ~'ul~'~-llmen .
p
a cash wages; (6) amo'u1t of aut 'norizatiozis received. on account
oed
fund' and (7) number of enterprises cover
of reallocation of the ~
by such authoriZations)?
For enterpzises in the second group (not fu~.filling the
also indicates who has authori2ed
roduction program) the report a
p e of program fu1?-
sement of wages above the percentag
the da.sbur
fillment.
verifica~ions at the p~?ema.ses a
The bank makes pera.o~.c '
the correctness of the certificate on the
the enterprise as to of the funds
and as to the correctness of the use
enumerated wages
in pa7Tnent of wages.
The bk demands a certificate i'rora the enterprises and
the above system of control does not
organa.zaans to which tr
cultural ox'ganizations } 'showing the
apply' (for instance, agri
the fund authorised for it.
C actually acCrL~.eda wages, and .
OF CL E NG OR CURBE1 T ACCOUNTS
6. THE CpNpUCT
arin or current, account for
The bank :,keeps a detail cl e g
ber of f orrr1alities, as we already
each client. There are a nura
p
W~.th respec'~ to en
xi2ed wage ~'ld; (3 ) enwnerated
nwnber of enterpx^ise5; (~) au~. ~ho
shows. (1) ethe
_1+.1v
or those f a.1ifl to ~w1.fl:l,1 it.
xoduc tiVe program and ~
p
? ~ ir1 the first grau~a j the report
r~se~
ter
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P82-000398000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
visual control.
}4 Sfi t
{ i, ~Y~S41~19,1Srll t1~, y~ t~ If rpd.r!t~Flrih ~ vas, +~41 f~rr11,.~,~14{A ri1~,Spl,tr7q~ 1i~, {mC'
The balance of a detail' account carried forward to the
know, that accompanyr the opening, of an account. Such opening
must be authorized by the manager of the bank branch and ini-
tial1ed by the chief bookkeeper. A special "register of active
accounts" is kept for each balance-sheet account.
to dispose of all its funds, including the credit entries,for the
J
current day. rrent day . In this staffel the amount of each turnover is en-
i
tered without text, and a new balance shown after each debit entry.
Sometimes a position-sheet is kept, which shows the balance of the
at all Mmes. All entries to the detail accounts and
account
Every entry to a customers account must be based on the
proper docuunent, to which it must specifically refer. It is
necessary to be very vigilant that no debit balance arises on
cleari..n or current accounts. For this purpose an account must
u
always be balanced after each debit entry, or after a number of
them made simultaneously. Under decentralized machine account-
ing, the entries are made and verified during the execution of
the operation itself. If the machine service is centralized (a~1
a factory or department of mechanized accounting), then the oper-
ations do not coincide in time with the entries to the customers'
accounts, which usually takes place after the operation has been
completed. In this case the operations brigade is compelled to
keep their own operative customer's account -- called a staff'el --
in order to be able to conduct operations and allow the client
the documents on which they are based, are subjected to a careful
following day is transferred to the balance control-sheet, while
18I
~P: 1 h t , ,. ( 5'R ilk f` I 1
f i 1 1 r h 3 V
p', t f l 1 t v 1 w.^r,t i , 11 xr J t.
. ~, i t a r 4 Y h 4 4 (a, r t (
t t h + r o I V f t r
1 1 # a o', 4 u 1 1d r I r f ~ r
,{ III ~'t ray , , t ~ ~ ~, ~ Ir, i ( v Tr
?~~~~~~~` r~1~~hdN'"A~, it{i~ FY r3~1r~ruY rlrta+~,u lY~l t, js~~ Irt 1" ~ I`+'y~j Nl',li l~M#}ylrit~viV/#~7~,(~t~'i,~y.1P~Pll1?g}7~~,+71Yfj ~'I' ~dvt~h^ll4~?.fa31yn3 9~~t!'y~
~
ft4'a ~ zYtl+r{ ~ ~rrdp~',f. rQM I I U+ F ^?};.
~t ~7 ~,lr,t'f {7,'1ta,~t tk4y~Yd'.! ~ nr.4+4J~I+P{r~+il ,~~~*~~
} r L
s
s,
I: @r
I4,
t,
t ^r;
1
4' '? A r:'t
d, I
} 4, L.
7r
f I
tiii Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82 00039R000200060027-5
 i5r+.~ ~~y
0
State ' Barak
;orone~h Oblast Regional Office
Date' planation
March Balance brought forward
3 DePosit?
_
check from Alcohol
Grossed
plan~, t on V /list No 1
n
Check Nb 797)
V /order No 3u9
Income Tax Transferred
Check Na 793L O
10 Receive nd on Bill No 1L85
13 Posting, Memo
]. Limited e a d Checkbook issued
?
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Foal No 11
Clearing Account No 60012
0NEZH PRa2ITORG
of VOR
7
Tess . ul a Plethanova, 2
add ~
Sheet I'Io 3
Balance sheet account Rio 50
Under jurisdiction of ` ~ktorg
d
3
i e s Balance
a Document Ent r
Contra
Credit Credit
account . ,
No Debit
.
18 13
55 23
ig 15 5,100
190 16 520
oil 17 180
2613. 89
263 120 26,50o
219 112 1S,000
50a78Oo9
20,000 - 80,?780.%
6,320 - 87,100,95
82,00.95
81,:2180.97
81;000.95
i!;,ooo 96,000.95
69P5Oo,95
54; 5O0.95
Checked by
Controller
Ivanov
Ivanov
IvafOV
Ivanov
Ivanov
ivanov
Ivanov
Ivanov
Ivanov
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
1 Issued Letter of :Qr dit
i
to Kursk
12,1~50 82,550.95 Ivanov
;Liquidated Time Loan No 119 061 160 30,500 S2
7 O5O,y Ivanov
Transferred v /Remittance
T
Order No 361 .
Credited Interest on Account 22 90
5
31 Charged Fine fo r Violating Rules
of Document Circulation 2 80
37,195095
118 2~ ~ 95,901.77
Ivanov
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Form No 11 conttd
49 25,000 70,100,95 Ivanov
Ivanov
Ivanov
7,000 38,200.95 Ivazov
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
c~
. al
added up or all the detail
the debit ar~d credit dui^novExs, the s~a~
ceMsheet account are entexed on
counts of a given balan
coUu~t ~ These cards d the 1~alance
card of the balanee..aheet ac .he xoo~f
separate accounts are utlla.zed in the p
control sheet for the uepa~ e chapter 3) ?
a~.nst the synthetic use
of the ana~.yt~.ca1. account.ng agexsonal ac;cots are also used
The balance contxolwsh?et of the p an
for accruing Interest. Thee are mentioned below. We prevent
ng account for ~.~-ustxative purposes
ale of a customer's cleax:~
exam
on the following page.
7 ? THE ? LOWANCF of xNTEPEST
al~.owed may be reflected in the cus-
So that the a-nt ere St
the same quarter, interest is figured for
Comers acco~.u~t durg t 30 days of
for 8L days (30 days of January,
the first quarter onJ y and 2L
C dita.onally taken as 30 days
Febz~~ary (each month is can
days and third quarters, 90 days each
.
ys for March, for the second a
. of arch, 30 days each for April
fox the second quarter 6 days
( analogy for the third
Nay, and 2L days for 11une ,and by
and y~
e 30 days each for July and August and 24
quarter: 6 days for Jun ~
da s for September ,) and 96 days for the fourth quarter (6 days.
y
for October, November and December).
for September and 30 days each
the durin the course of the quar-
intexest computation is prepared g he account di hg the last 6 days of the
texand is posted to t
~, December for the fourth quarter.
quarter, and on the 3
cordin to ~,nterest numbers, which
xn~texes?t is computed ac . g are
f=
l balance of the acCOt, These balances ax
are based on the dax y
blance control-sheet. On those days when the
taken f ro~i the ,
~ ~ ~ l~^rJ~'n~t v . ~?P.~ .n?P~~ .6;~an,4P?~.~ R~~ a p'~~~~~w }~F7
~ " ~~ ~9Ci~a'6~~! ~Lly"~,Nz~ ~a~t~~~ytid~~~~~ `n~ `;17;' t,r~rS ~.~~i`~uY`~~~`"?~ rho .~~~~ ~")
~~ ~a eta, i ~. nNEi~
~~,~.~7~.~ l,~k IMN rait~;X~il u.l~ I`Ci~9~u~ O~rPq }'~~y ~t ..},~ ~N~~, IH ~~,~i f 4'r ~I~n ~~r ~'I~l% III MCi71P f~YAKi h,y
4id'Y: ~h.l1,N`J~'~~h Ia~1`~11~~wi'~r~vA~~{,~.,.~,~~tr,.'kat~?t pDeclassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
ovement in the accost)
changed (when there was no m
,aa~.ance is un
e f or the preceding day s repeated.
the ba7,anc
r , f the fox~n~a or comp
interest nwnbers is a part a
The ~.
the number of
The Canount, multiplied by "
~.ng interest, na~iely:
ason the interest n~unb er is
100. For t1=a?s ~'~ ~'
days d divided by ~ the thirty balances of
the end of the month by adding
obtained at th
the ac omi'ttir1g ~Opeks, and divid:~ng the
count during the month
total by 100.
` 'merest nLUnbex must be
calculate the interest, the ~
To quotient of 360
divided by a constant divisor, i.e. by the q.
(days) The ~ntexest rate for
divided by the interest rates
ercent?
nts has been set at l.S p
clean-ng current aCCOv
The total of the balances for a
Let us take an ample.
~ ustarnex account was x,32,520 (30 balances), 2,11,O50 for
p 'a ~-~ ,
c
d 1'922,020 for Mach (2 b~,.s,nces)
February ~ ances}, a~1
`~. ex for each mt~nth by da,v~. ~
We obtain the 1nterest ., ? da. n each
L numb
of e first quarter the total of the
these numbers. For the cnta. is 91,6 (LB32~ 2L11019220.) The constant
f interest numbers rcent is 240 (360:
`; al interest rate of 1.~ pe
divisor fox an annu of the
interest, we divi-de the tot
l.~) To find the total
visors (916' Lo) and ?b taa.n
by the constan~, di
. P~ interest nurnbexs bJ out is credited to
of 381 rubles ~9 kopeks. This
f the .~,
interest allowed is entered as
-1
t
a
.
,
rr
l
the detail clearv?zg acca r ~~ : credit
fol;i.ows: debit, to account0 2~2 t~Op'erat~.ng expenae ,
or current accounts.
C.~earlno .
I 7 l'M ? 91^iq wt'~IA ~2{ifi i~!! iAl i fr:ill
W ~; v~kt Ti iyl~~k lryl ~\~r~f^tVis'54 ~~ldyiMRI~11n ,f~~u,Y~yi~ya jrf{I~~1
r^iW. I~ ~irt?,?~4s IVVUI~x~ikSl~~7lIi 4I tdl Tyl i~'!'J)Fh Syrl,~~~~~i7.'~y'hNlnyk~~V d''~mlr)i'it ~rk~~)7~k*!AV}a"ti~~TR:FB'a1t1~'7i#{d~j~iRi r;:
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185
e
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
THE ACCEPTANC {' FO i OF SET'ILf ENT
ANB THE COLLECTION SYSTEM
As has already been mentioned the acceptance farm of
To verify the accuracy of the interest nur>,bers, they are corn-
uted not only frrnrl the daily baJ.ances of the analytical customers
-p
account, but also from the balances of the synthetic account that
embraces the corresponding customers account. Both calculations
must give the same result. The interest numbers for each month
are entered on a special. statement. There are also separate state-
ments for the computation of quarterly interN$t and for the entire
year (on current accounts.)
a. CLOSING A CLEAflING OR, CURRENT ACCOUNT
An account is closed on the initiative of the client or of
the bank. when the account is closed, the client conf irins the
balance and returns the remaining unused blank checks, which are
cancelled by the bank so that neither the checks nor their con-
trol stubs can be used, perforating them by cutting off the place
for signature, after wiiich they are filed with the documents of
the day. Interest is computed on the account to the day it is
closed and is credited to the account. The balance of the closed
account together with the interest, if no other disposition is
made of it, is credited to the account "Other debtors and credi'-
tors" and until barred by the statute of limitations (l . S years)
may be withdrawx1 by the client or disposed of according to its
directions.
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
:.UY
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
settlements is the basic one, and is distinguished from the other
that the settlement takes place at the locality
forms by the fact
his clearing account, that his consent (ac-
where the payee h keeps ,
Ceptance) is essentials and that it is limited to the amount in
the account. From 1931 untf 1 March 1936, (or in some case 1
February 1936) the bank serving the payer (We shall term this
the payer's bank in future, for the sake of brevity.) received the
documents on which the demand of the supplier was based wA in-
voice accounts --Vfirectly from the supplier. If the payer con-
sented and had the funds to the invoiceraCCOUslts, the amount charged
to its clearing accounts was sent by the bank to the supplier city
for credit to the latter's clearing account. Thus the bank ser,i-
citag the supplier (Henceforth called 1t supplier's bank''.) did not
participate in the verification and dispatch of its in.voiCO ao-
counts, but merely Imow of the arrival of pamments for them.
The bank did not check the timeliness of the supplier's
presentation of documents for payment, and could not correctly
organize the financing of credit documents in transit, since it
knew nothing of these documents.
If documents were lost, it was difficult to establish
whether the supplier, postoffice or bank was to blame.
In order to eliminate these substantial defects and to
improve the bank's servicing of settlement operations, the
collection system was introduced in 1936.
Under this system the suppliers bank receives the pa3tment
187
c:D
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
liar ver~,i'~.es them, and sends them to
do cumen?r's from the supp ,
~, a ex's bank or its parr sees to it
the place of payments. The p y .
that timely payment ? i3 made; for the documents, end sends the
? a er by debit to its clearing account,
ounts recc:~vecl fa~om. the p y ~
for credit to the accouflt of the supp7.ier.
to the suppliers bank
The essence of the collection system consequently consists in
from its clients (the suppliers)
the bank's execution of co~v~lissions
to receive payments or ^ their account (from the purchaser payers
the dacuunents for paya~nent, and the pay~1ent
The presentat:~an of ~h
itself, takes place through the bank in the process of collecta.
Naturel.ly the collection system involves a large amount of work for
the bank, but in compensation it considerably improves the organization of settlements ?n the acceptance Form. Thanks to the colts
~.
1action system the bank began k bean to check the settlements for goads
and services,pary the tmeliness of the presentation of
rl
cula
ascements for payrnent, their bona fide coirmercial character,
and their correct drafting. Under this system it has proved
'nprove the procedure of bank :Financing
possible substantially to ~
to suppliers against settlement documents in transit.
To assure the efficiency of collection operations, the
bank must: (l) carefully check the suppliers documents and refuse
ettleraents that violate the rules, or are based on
to undertake s
to check the timeliness of the presentation
defective documents,
of documents by the suppliers (as we shall see, the bank does
riot extend credit to suppliers against documents drawn and presented
three working days after shipment, and, as
to the bank more than
a rile does not accept documents for collection if drawn after
.
more than 30 days), (3) keep an exact record of the documents
t .1)
C) CC)
00
'CD': ()u
wi
i
Declassified in Part - Sanitized Copy Aproved for Release 2012/03/28: CIA-RDP82-00039R000200060027-5
C..) C:,)
U i) ('C') r ,i (.
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
accepted or collection from each suppler and, by verifying the
data of this record with the data of the client, check the correct
ness of this record on the firm's books; (L) immediately, witheut
documents to the place of payment on the day
any delay, send the
they are received and follow up their Further disposition by asking
the payer a bank what has happened to bills about which no word
has been received up to the expiration of the period the document
(~)
res,to give each document a fired maturity, ~
circulation expi follow
up payment at this maturity y and transfer all paycaents received
without delay to the suppliers; (6) to safe: card the interests
to out-of -town settlements . Connected with
of the absent party
this is the control by the bank of the bailment of the goods by
who refuses to accept the bill, the execution by
a purchaser
the bank of the suppliers dispositions On reshipment or sale of
the goods, surveillance over the order of priority of payments, and
the imposition of a penalty for the benefit of the supplier.
The supplier is obligated, on the same day the bills are
turned over to the bank for collection, to send the payer directly
the 1.nvoa. ~ceaccounts on which they ? are based, showing the number s
M
of such bills on each invoice account. The supplier must attach
counts sent to the payer the specification bills
to the invoice ac
of ,lading, certificates of qua Lity, and the other documents for
which the contract provides, so that the payer may judge the corn
position and quality of the oods. A nw.nber of invoice accounts
~
payable by the wane payor ina1 e included in a single bill. each
,
separate invoice account included in a bill may be less than
1S9
i 6 yUa i. t e
I' C ~
1. .., lv+_r? .1 JrJ,J (G1 0., ji..... :e I.???, r ,!, 17. .', ~0b;
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
f
total account of the bill may not be less
1O0Q rubles, but the ~
than 1000 x uble s. rflas rule as waived for goods such as salt,
matches, wood, yeast, agricultural products, ptro1eum,
~
cement, bricks, 1e, alabaster, agricultural machines and spare ?
1xm ~
y
ng pp g charges
p a? ~.n
arts, etc, and aJ.so for balls .c~ye,ri truck sh
and other a servl ?ces. The bank accepts balls for these goods and
k~
6J~
services from 250 rubles,in amounts of 2O rub es.
A three day period is prescribed for acceptance, coating
the ball as received by the payer' s bank, exc1ud~
front t i.e moment
ang the day of receipt by the bank and Sundays. Only rking days
are counted. For instance, if a ball arrives on Saturday 8
,
Januar period runs to the end of 12 January; the
~y', the acceptance ~
acceptance period for a bill that arrives on the 13th, expires
at the end of the day, if the 16th f a1i s on a Sunday.
on the 17th,
In some cases the acceptance period may be extended for
-
/C4;'
lrIIt!* remote from the branches that serve them, with the author
~
of the oblast Regional Office of the State Bank, but in
a.zatian
h
no case, beyond seven working days.
is accepted not on. the arrival of the goods, 'out
Ab~.1 i
val. of the settlement documents at the payor`s bank. s.
on the arra.
Since the gLlant assortment and price of the goods are sho~na
~.ty,
voice accounts, the payer can decide,on the basis of this
in the ~.n
data, whether to approve (accept) or disapprove (refuse to accept)
the acco7mts for payment. Moreover, the payer usually disposes
cafications, certificates of quality, etc.),
of other, documents (spe
by which the correctness. of the supplier' s claim may be judged.
~.
Declassified
t? 2L J tI
n Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
.... .. C . lai' ,1 'Ib'' Illf nS~
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
e Lance wc~xe to be decided only after arw
I~ the ~,uestion off' acc p
s
? ect,on of the goods, the sett1e~aent wauJ.d
xa.vaJ. and va.sual ~nsp Dods
and the payments delayed, since the g
be vex' much slowed dawn
'sand irWoa.Ge accounts. ?i1 disputes
usua:Lly arrive after the claa.rn
~ the goods for whjch payancnt is made by
an quantity axed quala.ty a
ik are decided, not by the bank, but
..on bills by the bar ,
collec't'
by judica.aJ. or arbitratioza organs.
The bank does not send payers father than kalkhozes, Sel'
organizations) advice of the arrival
covets, party and Pro~soyu~
lists? and the pagers are obligated
of bills, but merely pasts the
sts fox the incoming bi.lls payment clams
to watch these posted 1i
a roves the payment of the supplier's
against theta. 7:f the payor pp
notice to the bank. A payer advises the ban1t
claim, at sends no ' it refuses acceptance. This means that if no
u1 writing oy ~f a.
statement refusing acceptance if received ,from the payer within
period, then the bill is considered
the established three-day
nt. This procedure as termed nega?
accepted and is subject to payee
established in 1936 and has considerably
tiVe acceptance. It was
s~t.np. - ~l.a.fl.~ed banking practice. Before that time, acceptance was
had to notify the bank in writing not
pasita-ve, a..e., the payQr
but also when it consented to payment,
only when it refused to pay
. See age 23 for positive acceptance. at
or gave its acceptance ( p
the present time.)
The payer becomes the owner of the goods as soon as the
time for refusal of acceptance has expired while payment is made, .
except in certain cases Faxed
as a rule, seven days thereafter,
is on the day the acceptance time runs out,.
? it
by law, when 1 ti is made
(0' GP5 ) ^ U ?5A
0
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
or not later than the morning of the following day. This procedw
ure is prescribed ny the law of )4 June 1936 "on changes in the
procedure of financing the goods turnover." Before that, payment
in all cases immediately fo11.owed acceptance (subject of course to
payer having sufficient funds), At the present time,paynent on the
sgme day on which the time to refuse acceptance expires is still
made only in the following cases: Grain products, petroleum pro-
ducts, distilled liquors, in settlements with budgetary public
organizations, iri settlement fox purchases from plants of the
same system, in settlements for construction work with contractors
far work actually performed, or1 accounts for electric and thermal
energy furnished by power stations of industrial enterprises that
have r. de de special agreements to deliver energy to the pubi:i.c'-use
system, and for TASa services. The seven day postponement of
payment is provided by the same law to allow the payors more free -
darn in handling their funds so that they can organize the proper
payment of their obligations better.
The former three-day period for certain types of payment was
continued in fofce with the object of accelerating the flaw of
funds into the budget (the budget surcharges on grain and petroleum
products and on distilled liquors.) On the other hand, payors
such as budgetary public organizations, builders, etc., do not need
to manipulate their funds and are thus able to make payment im
diately after acceptance. .
The supplies bank, the payee's bank, and the supplier itself
are notified of the refusal to accept. The refusal may be complete
or partial. In either case, the reasons must, be specified. .There
192.
r~::(r m?,ff l~,~~i ryn~4l1{6~~+h+f ~} ~+C ~,~+4~~'t ~i~,~~ ? G:'~ S~i~~~~~yr.? e~ ffJ ~~ 1 ............
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
~ILi!1x(?
al I+ f! 1~ G ~ \ ~ urh d I a 1 I I'M~ I
Declassified in Part - Sanitized Cor v Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Yie contracts of ozoX~gan'e specifY~
must be a speca.al clausQ in ., ~
e a er the right to refuse acoeptarLae ?
ing all events that give th p Y
that the xefusa~. to accent is well
If the bank xecogn~.~es a
to accept the wads (accept pexish
founded , the parer iF obligated
ables) in trust as bailee, whi.e during; the month, the bank must
is obligata.on by the payor at least
verify the fulfillment of th
w u a protocol of such verification each
twice a month and to draw p
g
.. trust g , are Found to be short or ,sin the bank
tame, l~ ~,ooc~s
verification proto col to the supplier, &sd
sends a copy of the
ccaunt with the correspond~g ~0unt,
charges the payer's clearizlg a
? lier axed turns
a.th a penaltY For the benefit of the supp , th
together w
e case over to the public prosecutor.
son of lack or insufficiency of Funds
'Dills unpaid by red
ecutory documents, and are paid
in the payer's account, becolaes e~; fished
e ava7lab~-e, under the legally establ
by the bank as funds becom
e'nt (see page 167.) The bank assesses a pmalty
priorities for paym
and collects it for the benefit of the sup-
f or past-due pa:yments,
plier.
At the order of the suppla.er the bank seals goods that have
d remits the proceeds to the supplier?
nat ?.b een- paid for an
10. COLLCTION DOCUNENTAT'ION
cnt under the collection system
' , 'rhe basic settlement ;docum
bill (see page 103 ) t.f nrm l31 , `which; ecntai.ns all the necessary
.
.
and sL~ff ~ on for the bank to make the. settlement.
. ; ,
.,. ~.c~.ent : infoxmat~.
Copies e-account must under all circumstances be
e~ af ' the .~. nvo~.c .
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194
ex w~~a ha$ not
a
reCeaved an the ba.ll ? Trl~ s Is dare so that a p
attached
~.~ to may be enablt
.~ from the supplaex'
voa.ce ace?un ?~ the
~"~ct~x~?~at~'on
have a more Betaed cha ~a to pxo"
so desixes~ to ~' .s and ~
~. a ~ ent a.
~.ch p ~ demandedla. vexi~~'
foods or services for wh e - b ~ed to
the poss~,b~,ltit o th bank being a
y or sell. it. Ti
vice ~ or to ~'esh~-p
s ~npaa.d ~?odsy once a
bank fox 0011e coon
the ~,ntac ~es o~ is to ~.e
uxns over its drab resents
sup': laer e
~ t the x .
last (eched~-e) '~~~~us supple xee copes
with a genera" bank; ''h
, colJ.ectaon Y~a.s
~' ~ or to
?a ~
~. ,~~...._. .~Cl~YCtent
the ~ o ~ e 0c05 ~~ ~ ~ two c p
e copy a~ the ~nratice
of the billy fl
ist are shown on page
the
'.Ce-account and a
~xampl e s of an
141. and l0~
foo~;x.ng pages
See ;~axms 12 and on
~ :
?1 are as hallows
a
re
The most important qua51tes of a bti ra account and name
~~.e suppltier' s clean~ n
~,eaxi
~, title and number of t q r ? le and numb ex of the
of kept; (2l rat umbers
of the where it s the bang, where it 1~ kept
'
and name a th nab
and dates bank o~ the ~, ? ~ ~;.~.
ot ?~ the paJer ~ ~. in the bi:-; ~~~)
ace
0da,
voice accaunt included h.~ ment of the
~.n
', to ers
cements evidencing s p -
.s o~ the Shippin g do when
(~) kynds of goodS (6) o' (7) date; the dacu1rent5 pre
axd da, t , scribed by the the ou'~-of -town p
s contract where sent to
uasi'~~s ~ and ~ serve as
. ~eq
s and seal (on the ,ox~.gyn~ . )
fete .o eracial nature, of
gna~
Nstanc e and bona$tide o the?-xwell as
proof of the actua.~ asl exp. hi teat of the goods as we
pry
count, since the Y Show s industry)
in hea
a
r
bills (mostly ? enterases
the ac
In Scene
nature?
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
a a, 21 2 Telegrap
2. PostalAddress hrks hic address: Tekstil'nay~.
? pi_ . Moscow, Rosto~' .n U1. s
State Damat ?mo
3. clearing Acc un ~cherbakov erb_ of S, r+-t~T of Moscow
o tNo 98~0~ 3 In Shra.nch oT
Same
Shipper and Address .
ee and address:
S. Consign
Fodolek Gorproratorg, City Foaclsk, Noscow Oblast
b. With bill No 1673 dated 2/26/1t5
TJ1 Sovetskaya, 12
Order , T
8 Date of Account 23
8. Accoun 3
Date of order u 1
T
Igo38 '
12 Amoant of Account
9 y: Podolsk Gorpromtorg
. r ~ Payer and address
c count ~ No 600 2 S ettlement Price Difference _~erence to trust or Deduction r
t ~
Ulovetsk sus 12 3.0 Clearing ac
- a
combination Budget Income
11 Bank State Dank 11 In City Podo1 _sk, T_ ~oscow Oblast 23,200 1,800
.
Same
13.Customer P1ac1ng0rder.
?4 - Amo th ~ousandrubles Total amount o~~nt of sale R 25,000 in `cords Twenty-five ~..nt I
16. Erom Station Moscow
IS. Station Podolsk
'
17? Date Shipped 2/23 18. Method of Shipment
073h82
Bill of Lading,! P
19. gf/ Recel t No T ~ e e+e.,h
20. Number of F-aceu 20
20. 9 '?$. Charges
r Data
21, SunPle~.entar~,
~
- Amount
a/c ~~arks quantity, price) I Quantity ~ Unit Price
22. Subject of
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
I Payment Bate
F
Form PIo 13
t Supplier: actory Mostekstilya
Textile F
o ument return
Dc
date t
16 March 19L. t and its a_dress? . Moscow, Rosto kino, U1, IIarksa, 21
~.
To be entered by
'
f in ShcherbacOTer branch of State Bank
?ert s bank clearing a c No 098075
su.n13
rP
I City Noscow
Kra : or Oblast,
' To be entered by
t Payer's bank
NFO No 20116
Date 26 February 19-5
Copy
BILL No 1673
4D c
Date No Date
Moscow
x
i~
r' Date o Arrival t
' Payer and its address. Podolskiy Gorpromtorg
f ? at payer's B ank ~
: dol k
Bank an city of P s
State ~
-, Clearing a/c No 600 2 In
o .x
~ U, Moscow Custome Ar Placing order: Same
Q ~tra or Oblast, j E
Kind of Goods Amount of bl1.. No 807 clearing
..
~ Documents I
Shipping Doc .~
r Invoice Account Aecoun:, of Supplier
a~
No
No 90070
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00
S Sb~ Gownes IL L~;
2,000uaccounrl, -p -p `,~~~ ~lolil,? 7~11R2 2 %2~/~.~ Textiles
`g Amount of Sale Inwords)
~
m~
L) ? 4
Seal and Signature of Supplier
Balance Sheet a/c No
n j
Deduction for NKsF R
Account invoice forwarded to payer
a
~ - Five Thousand Robles
TOTAL Twenty
tU
o~
E-lcd
a-4
0
Stamp of Supplier's Bank
Pent for
f
1? 23,200
R 2,000
(In figures)
days R
amount
Total
transferred by FO R
Advice No
Dated ,191i.
(Date of Payment)
f)
Lb
to
1'
p.
 oo
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Address: Moscow, Rostokino, 81, Narssax,21 r
Fox'm No 1)4
Front of List
Supplier; Textile Faotory of Mostekstit . r r ? r ? ? ? ? ? r r ? r r r ? ? ,
rrr?rr?
State Bank
(One Hundred Fifteen Thousand Rubies)
7n Words)
in City of
rrrrrrrr~??r??r
C Lear ng Account No 98075
Moscow, Shcherbakovsk branch
LIST OF BILLS PRESENTED FOR COLIJiCT10N
No 220 Date 26 February 191j.5
We present herewith Li. bills
With invoices in
the amount of / R 1.15', 000 Date list Rec ' d by Bank 26 February 19L5
Checked
Controller (Signature)
and request you to accept tl'lem Operations Clerk (~ignature)
for collection (schedule on back Receipt of mai room for bi s t
) forwarded
Date 26 February
Signature
ca
H
'H
4A
0
C UO Q O
1-tl 111 O V1
N ccr'~ - Ul
H Hl H H
19).5
Q
O
u)rd
Nt P
(qo
-p
Q)
U,) Q
:t
lf1
~0
O
H
oJ
N
H
?
A P
-
H
H
H
,o
~a
F-i
~ off
N 0
W
-PI a)0
0
MV"`y~A
n'lf, ' W
W
^{ ccdd cH .
c ?H
ro N 0cd
?rI HI UH
i I 0.
prr0
0 cj ?rl N .
cij
O H~ U
0)-p
t!l ?rl
ard
H H 0 P .'
0.qjw c.
0 r0
F~
Ord
a) 0 Q)
Cl) 0)H?0)
? Sri G
The list is to be signed by the persons empowered b the
of its account at the bank. supplier to dxspost
197
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
ens account is also credited with the turnover ax {
The supple
a~id the shipping bursed by the purchaser, in addition
~n
charges xe'
this has no effect an the y,
rice. Naturally
to the settlement p turnover funds of the supplier 'since it hasactua7.Iy paid the turn-
,
over tai into the budgEt income, while the shipping charges have
" ded into three parts. the settleirlent price,
the amo~~t may be da,v' ~.
to be credited to the suppliers c1ear1 r~ accounta a surcharge over
the settlement price y to be credit~d to the account -or subaccount ." punts far accumulation are opened far out'
(separate cleara.n~ subacc ,
,~ at the ca where enterprises suborda.nM
o f M town trust and Gl avk~ $
The funds are periodically transferred
ate to them are located.
to the Mate Bank e stablianrrtent where the
from such subaccounts
-
hi her-le~rel organ is kept.) o f the higher
cle ar~.nb account of the ~ .
-.trust or Glavka -- of which the supplier
level organization
forms a part; and amounts to be credited to the state income (bud-
dget differencese) The settlement price in-
eludes get surcha all rge coas and bu dg
Cts of productian, often plus the normal planned pro-
fit of the enterprise. In receiving payment for its production ac-
cording to the settlement price, the supplier disposes of the nec-
turnover funds, that is, of course, if it
essary and sufficient
fulf i.1.an with respect to production costs. If, however,
-I ~.s the p~.
ncreased above this level; then payment for
increase
production cost is
its production according to the settlement price must inevitably
result in financial di tiCU-ty, which serves as a signal that
the plan has been violated. olated. If the supplier were to receive he
at its own disposit.azl, including to difference
entire proceed
above the settlement price, ces surplus turnover funds would be created
.
in its account,
198
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atp3s
and to financing against settlement documents in transit.
d r1 ) y,1 " ' ':1'
documents
The pur)ose and rovement of the above
presented by the suppliers are as follows:
`~.() The invoice account is sent to the payer's bank, which
in turn sends it to the payeJir itself
the original bill is sent to the payer's bank and is,
()
after payrient, filed by it in the current file;
The second copy of the bill is sent to the payer's bank and
after paynlent is returned (under advice) to the supplier's bank,
which in turn forwards it to the supplier;
The third copy of the draft is used by the supplier's bank
accounting purposes and for checking the movement of the draft
for ~
forwarded for collection; this copy is placed by the supplier's bank,
e card file of the principals (suppliers only) as an item
in th
for the customers staffels or accounts of the coramitments (i.e.,
organizations that colrnissi.on the bank to make collections for its )
~.
and, after payment or return of the second copy to the supplier, it
is then placed in the archive 'card file;
(3) the original register in the suppliers bank is bound
together fr the day and serves as a journal of the bills accepted
,
9.9
k '1 I~ N' ?
!b ~
actual-l incurred by it for the account of the purchaser.
list must have its seal and the signatures
The suppla.ex1s
of persons r authorized to dispose of the ciearing account. This is
required because it is the register that establishes the relations
between the client and bank with respect to the collection operations
,
r(riV"?a
a
u~,rr
..
. w\ (4 ' fpr{t,fJi` }~f S rrJ r~lr v.~~l>i,lkxrr$rr~rh)` ~arJi~;;gt?r~ ir, tl r.t rp', { ri ~:` r{ tN
tf?"7 '11 ~n~9~ ii~~^ rr I ~i r 4rt`., Fyh \I`. .~ ~ ~ la~f 'V y~rfl~rl~~~ r~~} t,r+11..~5 y k E o-~ 1 i ~14r d~~; i h}r X17 li,ti~k u7 G ~ ~1 rt i. `', ~ '': ~ '.
k~ti ,alb } pl{VI, } 4 ur !9~~'?I'il7f4h yd , 141,, r r~~r 4l f,r~a,p Y,f! ne 79r{1k7~1igk11! p p'~ . ~r4 SIJ+?~n~i rl ~ l I Id t! 11 :l ~I 4 -, {rr r ~w I r
I~~ ~Nr~l~ J p a! ~r A}"4 f kY~4~'~rif'~,~7 F ~ I yr~"~ E! r i ~ r i f ~I r .~ r k .~ ~,e !' n ~~~~ l ~ a ~ 4i = r ) 1 1rl 1 h ~ r t ; { ti!kt r) r , ~p,l
~v~i~ r7 ~@. ~?.'"' ! r ~ I p
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
far collection from the suppliers; the second copy of the regis?
ter, signed by the bank' is returned to the supplier as a receipt
far the documents accepted for collection.
ll. THE GENE1:AL SCHEfl OF DOC'UI' T CIRCILATION.
The general document circulation for out-ofytown collections
is shown by the following scheme (see figure 8), For a clearer
understanding it must be born in mind that the operation of col-
lection passes through two stages in both the suppliers bank and
the pay i s bank.
The first stage of the operation in the supplier's bank com-
prises the acceptance, verification, formalization and registra-
tion of the bill; the immediate dispatch, on the same day, of the
original and second copy of the bills and the supporting invoice
accounts to the payer ' s bank; and following up the disposition of
the documents forwarded
The first stage of the operation in the payeT1 s bank consists
in the ceceipt, registration, formalization and accounting of the
incoming drafts and invoice accounts; in fixing the data of payment,
and observing it; and in advising the payers by posting a, list of
incoming bills.
. The second stage of the operation is receiving payment and
forwarding it to the supplier. This stage naturally begins in the
payor's bank. Here the following steps occur: Charging the sup-
plier1s clearing account (or sometimes its special loan account)
with the arnoint of the bill; the documentary and accounting f ormu-
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
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Rend by batik
a~seceipt
~ SUPPLIR' S
I
List
Card-File, ? .
a Lc JTo
edule : Sched
ch
Sche e C-
List
GENERAL SCI~AE OF DOCUi1ENT CIRCULATION CR O1JT-OF-TOWN COLLECTIONS
-Bound together
into a Journal
SUPPLIER
BANK
Sheet Charge
out Posting VIII
agains
4rder
/c no 435
ion-Salanc~
Sheet a/c
charge-in
osting or
aer to a/c
Bill
(CI Ty B
-
Ii- Invoice- 2 Postin
Account Memo
II
-
Involce-
Account
Account
Posting
Y, emo Dr
a/c No
&i- CrSuP-
plier's
clearing
Ai
,c
VII
F ~' E 8
After payment sent to
.Aft_
Archive Card-File
o Credit
Advice
I
Bil1
rill
PAYER'S BA*.g
PAYER.
Invoice-
account
Invoice
4__ account
axed-Natur-
t - Card-File
3
o 1, acNo li
ZrT
Posting memo
Dr Clearing a /,c
N
Cr a/c _ o 263 IV
On the day e day of payment
for each
a -oo sting order 1
u plier i s dra=.n from
the matured bills with-
from the fixed-
arawn
0
EXPLkNATION
Acceptance by bank
1. c 1
from supplier of docu-
ments for collection.
1Ia.Dispatch of invoice-
accounts by suppiler
to payer.
U. Dispatch of documents
to payer t s bank.
ha. Card-file o l a/c
No h3;
T3I. Card-file No l a/c No
_
y
1 fixed maturit
iv. Posts. memo for
a yment
F~
V. Dispatch of credit
advice and II copy of paid
bill to su' nler a s bank
;_
`ion lance ?Sheet har - out Posting VII Crediting su%.er s
~Posting der against a/c clearing a/c with in-
payments
coming _
?
VIII. Charge-o,it of paid
No L3 and
bills from . ape ~
~ h of U copy of paid
d`spat,~
b_ll to supplier ith the.
copy of its clearing a/c.
v 'a
vI. Charge out of paid bills
from a No
c's~ti= a -
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
d ~~ p adyict~); nat~~Y~?ng
? s axe (by posting memo
t~,an o~ t~1a.a ch ~ ast~.n~ memo and the
la
t eected (copy o .he
the pe,y?r ?~ t~~~4 paen t co1],eCted to the $up.transfer of the amaun
voa,ce account) nd the senand copy of
ch the O credit advtse
~,iers bank or wha.
p
the bill are used.
~ banl~ the execution of
the supp~.? ier s
1n the second stake in ~
tk ~~ted~ The second
of the c1ie11 t is comp/ c age of of the Cre
f ol].owin~: ..
the co~,lection cor~n~.ssion
? n in this bank consists
st the operatio
.iert s accoua~t aria ad~~sing
.. ayment to the suppl ?
d~.t~-x1~ the ~~ , ~om1n s ~ p ba..]. or this
the second copy of the
?t of such credit (using ~
i payer
purpos bank and
p, the correspondi.n entry to the s
e) 3 makinv 81iSaion~
ending it a cai~f s.x~nation of the execution of its CQT1T chargin~ out the b-1s (third copies eY have been co1].e cted.
s
' OF since they
CUTS ~`0~~ CULLECTTON
C , ~D DISP TC l OF D0
12 , ACC.~P'IAN
The lien are checked with the
drafts accepted f x0m a Supp
and w~.tb the reds-
umber, date and amownt'
invoice accoun~'s for n of the drafts are
exs Bald amounts. The requisites
tern for nu~rb second copies of the
102.) The first and
then checked (.seepage
to evidence the -fact that
ed by the bank branch
drafts are
, theY have been checked and accepted
t,
he period of document circ a.
t fix
It is then necessary to
ax~-.a]- time within which the paid
i$ ~ then
tion for each bill a that ~ k
* There are tiro
reed to the sup 1 er. s b
bill shod-d be retu '
reasons ~d: (1) to make
necessary to fix this peri
whY it is kee txack~ as is its duty,
it easy f0 the suppliers bank to p
02.
-i.i ".:. Y f a i; .1,Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
CC)
c:o C.
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
the paYOs ba~1k of nota.fa.catton as
of the tamely receipt f xorri
ectaon bill, and (2) to xegu~.a?te
to the da.sposltlon of the colt ~ ans~
' nst settlement docuuin ~x
financ~.ng or the suppla~ex agaa.
it (See Chapter vi).
ument cixcu~.atfo z7, the time of
To ca1cu1ate the period of doc
ma ' an must be l~nown. Faux days for prow mail transit to payox's locata.
es stal
? banks are added to the t~.rne of post the documents a.n both ts
f xora the supplier's bank to the payer'
transit in both direct~.on (?
bran ten or tour days a (;roux days,
b ank and return), and, in adda. ~
chiding Sunday, are added fox documents ~rjth a three day paY~1ent"
'
~n the sup..
s of drafts payable without delay,
peod. on the orig:~nal
words U3-day per~.od't with column uperlo
plier ~ s bark enters the ?sons
ttlements wa.th m~.ltaxy organizat
for payr~ent, and in se
d+s ten day period.") according to
day pe~d.od,u n7pday period an
to categoxy of payment.
l:~.ustrate. n outAof..to~m draft
We give an example to t
goods is received for collection 3 January. The
for ma~luf actured The
to the place of payment is 6 daYs.
time of postal transit ? ~.t 2~6)
Lion exa.od in this case is ~ (
length of the document circa p ?
l Y period of document circulat:~on
*1~~1C = 26 days. Consequent J
runs to (3+26) 29 January.
flour furnished is accepted
Another example. A draft for
Postal transit time is 4 days. The.
for collection on 6 January.
document circu7a tion takes (2x) + = 16 days, and the docu-
ment circulation period thus expires (6 + 16) w 22 January.
It will be seen from e e~:arp~ 1es that the day the
. these
203
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nts are accepted for collection is not considered. The
da curve
doc ? return date, calculated in this manner, is shown on all
ument three copies of the draft.
In checking the requa. 'sites, special attention must be paid
to the numbers and dates of the shipping documents, as proof of
the bona fide de commercial nature of the bill by comparing this date
with the date the bills are presented to the bank for collection.
It is obviouslY in the interest of to supplier to have these two
dates as close together as possible so as to accelerate the re-
ce'pt of payment (other things being equal). The bank, on its
~.
part, cooperates, by presenting the drafts to the suppliers as
soap as possible, and refuses to finance draftee delivered to
-
the bank for collection more than three working days after ship
t
ment of the goods.
In accounting for the documents forwarded for collection
is formalized in chronological order by binding together and footing
all the lists accompanying the drafts deposited for collection
by suppliers during a day. The bound registers take the place of
a journal. The systematic accounting is arranged according to
the separate suppliers and consists of the customer accounts,.
without texts (staffels of the supplierMcomm1k1ent51 The items
for these customer accounts (staffels) are supplied by the card
indices in which the incoming drafts (in triplicate) are filed
separately for each commits ent and currently entered (during the
.~
month in question).
There is still another object in keeping the detail staff els
204
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and card indices of the commit e its . It is to show the number
andamount of outstanding drafts in process of collection which can
serve as collateral for loans granted by the bank against settle'-
merit documents in transit. For this reason the detail cards of
the committents are divided into three sections, according to the
following scheme:
Drafts serving as collateral
A
for loans
Drafts paid and charged
off draft account during C
Drafts not serving as col- current month
lateral for loans
)) l
The drai'ts presented to the bank not more than three days
after shipment of the goods are placed in section ttA11. A state-
rent of the balance of drafts in this section is furnished the cre-
dit officer periodically (at least once every three days) and is
used as material for regulating the account of loans against settle-
ment documents in transit. (See Chapter VI) Drafts with a longer
delay ire presentation fall in section 11311 and are not taken into
account in financing settlement documents in transit. Drafts are
also transferred from section "A" to section"B" when the time of
document circulation noted on them has expired and they have not been
paid owing to refusal of acceptance or lack df funds, advice to
this effect having been received from the suppliert s bank, and also
drafts paid in part (such transfer being made when the first partial
payrlaent is received). The. correct and timely_ transfer of drafts
205,
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
~'A~' to section "B" is very important in fining the
from section
extent of credit to be granted against documents in traflsit3 this
transfer is therefore checked periodically by credit men (The
credit merit (according to a definite plan) verify at the place
of the itozogani the bona fide commercial character
of business
drafts and the accuracy of the requisites, especially
of the
that of the shipment dates. Presentation of the original shipping
documents and other documents certifying the fact and the date
ent of the goods is required by the bank from itozogani
of chipm
that deliberately y draw bills inaccurately (to obtain exaggerate
bank credit against settlement documents in transit). These
documents are returned to the Khozorgan after verification.)
The movement (incoming, outgoing, balance) in each sec-
of the card-index, i.e. schedule "A'' and schedule "B",as
tion
well as the transfer of drafts from schedule "Att to schedule
11
HnN may be followed on the customer's staffel. Its foxa11 is shown
on pages 113-11-1 [Form 15]
All of this analytical accounting is controlled by the syn-
anCe-sheet account No L35, which bears the caption
thetic non-bat
r1SGttment documents forwarded for collection. aOnly a singl e
~.e
ate staffel of the form used for the customer's comitent
aggreg
stax.Eels is kcpt. In the first stage of the work, the supplier's
bank makes postings to the incoming side of both the aggregate
staf f el of that controlling account and to the staffels of the
separate comznitent' s accounts. The entrie4to the outgoing side
are made, as we shall see, during the second stage of the work by
206
OUiC
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1
- Balances Total Checked b
.v o by
e B B
al F chided from Schedil
heaule A Collateral Oon~aller
Sc S
collateral brans Schedule On Schedule
B ac j
~o 3
jed- Increase Decrease A Bal of
ule A to B Date Increase Decrease farted from 5cn
collateral
No of Amount No of Amount No of Amount No of Amt No of Arit No of asnt No of limt No of Amount
Bills Bills Bills Bills Bills Bills ~ Bills Bills
2 3 4 5 6 7 8 9
2/26 2 E5,ooo
FROM STkFFEZ OF 4'EXTILE FACTORS OF MOSTEKSTIL'
(Figures)
FROM STAFFEZ OF SHOE FACTORY "PROLETARK1
( FIGDRES
3$ 36S,000 L 35,000 h2 tsoo, o00 IVaIIOv
2/26 4 102,000 - - - - 2 38,e00 - - 2 C~67,o00 6 73,000 h8 5he,OOO Ivanov
FROM GENERAL STAI'FEL OF ACCOUNT NO Lt3S "SETTIENLtiT DOCtTHET;TS FOl~dIL~.DID FOR CQLT,itiTION"
(Figures
83 830,000 to 110,000 93 91~O,0~ IvanOY
2/26 6 167,000 - - - - !4 88,000 - - 89 997 114 198 000 103 1,1%,00o ivanav
[Column headings are omitted on page two of form No 15, as all columns are the same
wdth the exception of dates]
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Form l5 cont' d
L~E1 T ociL~ 1ACCOUNT ~ ta 3
FRO11 GENERAL T F AcG~~~ !t ,{{1
Figures
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178,000 13 180,000 Z 12,000
FROM STAF'FEL OF SHOE FACTORY "FROLETARISA"
(Figures)
2j27 _ - 18 198,000 1
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
the supplier's bank. The staf'e1 entries are made for the total s
(incoming and outgoing) for the day. NonMba1ance-sheet incoming
and outgoing posting memos are drawn to support the entries to the
general journal and the general staffel of the above-mentioned
control account.
? e illus orate what has been said on the accounting :t ith
account No L4.3, by an example. Assume that on the 26 February
documents of the following supplieru'drawers were accepted for
.co1i action as d. dispatched fo:C...coi:Le.r.?,on. ......... .
1. Textile factory i'lostekstil, List No 220, for R. 115,000
with drafts as followed (with copies of the invoice-accounts):
No Amount Remarks In process of collection (of items
previously accepted for collection
from the same factory )
1672 $5,000 Assigned to B On Section A Li5 items
1673 25,000 R. L.65,000
167li. L.o,U00 ? On Section B Lt5 items
1675 15,000 Assigned to B R. 75,000
115,000
2. ?Froletarkatt shoe factory, List No 2L-.0 for R. 1140,000, with
bills as follows (and copies of the invoice accounts):
No Amount R.erarks Balance of collection bills from
the same drawer:
(1) (2) (3) . ()
`L09
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0
 rva~y
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(1)
2079 18,000
2080 2L,000 assigned to B
2082 21,000
2033 1)4,000 Assigned to B
208 27,000
2087 36,000
In section A 38 dxaf is
R. 36,000
In section B )4 drafts
It. 3,000
ournaJ.. for 26 February or. the receipts side
In tl~,e general ' ~
10 drafts, totalling R. 2SS ?000 are entered
of account No L35,
e~sheet receipts posting memo for receipt of
(based on a non-balanc
b drafts, totaJ.ling R. 16,000 in Section A of the card file and
totalling 88,000 in Section B thereof.)
L. drafts
the customers' staffels and the general st~f-
The entries to
f el will be in the same form (To save space we show only a single
card divided into three sections instead of three separate cards.)
see table on page 112) [Form lI ?
customer's staffel the tuB. title of
In the caption of each
the comm?ttent is shown, together with a.ts clearing account number
~.
and the percent of reduction from., the total amount of collateral
ai n the credit line (the bank grants credit to
(section A) to abt.~
.
suppliers on the basis of the settlement price -a see Chapter VI).
having to return in the segual to the procedure
To avoid hav7.
for posting to the staf f el, we continue he foregoing example
'j
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0 ,LC
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side ?
on the redtitict~,on ~ or del~.vexy
'I
''J,~,lo. now GX~SfIine tie entra.es ~
1
erations took place in
w.~ ~ p
the 27 ~` obr~a,ar.s, requiring that
ayrlent be made only against documents after shipment at designated
p be annexed
certificates of jnspections for quality
stations, that
o forbidding pt payr~~ents on account
to the invoice-accati~nts, r
araa:t of a letter of credit is 2~ days,
of the credit The tip 1 ,
f o stal tx~ansa.t; and in ~~?vidual cases
not counting the time o p
4 da s by a bank. Then its time. limit
it maybe extended up to ~ y
is closed.. Its unused balance goes to "
has expi~^ed, a credit
tingu.sh the debt an tht1 loan under which it was issued, .and...
ex~.
?ur;
if there has been no loan for this.~ Pose, it is restated to
he clearing account from which the amount of the ..credit was
t. .;
1
~.
E7 ~ ; rV, ~ 7 r ,7~ ~il~ 1 y{ I~ r t< f 4' 7q~T?~Fa ~ ;j' ~"yu ry,..tP;!YY IHS 'r i ~ ~IP ~: ? 1~ r1 "~ f~ J '~r ~" f Jrl '" I r1 Y t;
~?,..
.FiJ~~~flaft!N,2.4r rrN~`i.I~J
Declassified in Part Sanitized Co An roved for Release 2012/03/28: CIA RDP82-00039R000200060027
drawn.
e~.ua.stes of a ~ tier c,~ credit are:
The . necessary r,
46
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
C3 0
r is on s,aaeptance of an au~,horp
to nVOIce accoun
~r~e~thod of paya.n~ out such acceptance);
urObaser~ or w t
ized representative of the p for which
rods
er. ~enera7. de$ i~tion ?~ e ~
lame of the suppla. ~ ? and time ~,~it of
will be drawn by the supplies''
invoice accounts
the credit.
The by the payer's bank is form_
.
issue of a ~ `tter o~ credit
i1 credit it is in quintupla._
tied by an appli catian. Y,or a ma
al.
te1 e raphic creda.t it is in triplicate.
cafe, whe for a ~
' cation for a mail letter rf
The first copy rf the apply.
c s,nk , .
,Lion itself ~- remaa,ns in the p 'y b
' 1credit .... the app?-~-ca
runt
a of the letter of credit
as a postin~ mer~io to credit the am
t!Letters of Credit lssuedtt.
to account No 236.
tter of credit itself -- after
The second copy the ~.
. it has been form.ali2ed by the signatures of the bank, the transfer
a.
heraldic seals is f orv~arded to the suppliers
code word. or the ~,ions and
serves as the basis for effecting opera
bank, where ~t L
1 t'credits for
on-bad ance?sheet account No 7
entries on the n
payment".
anon to the supplier ?- i$
The third copy the no'tif is
ether with the second copy, and
sent to the supplier' s bank, tog
thence goes to the supplier.
payer bank to keep track
The fourth copy is used by the paY
and fkeeping the detail account3
of the time limit of the credit
l substituted for the f oof ~ the
this copy Can be successful y
detail account sheet.
00
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 i. I, 1"h,}~IU'yr~.~y)~rr tiV) In ri (~1+~ u~t~~,,i5yy'AM1W IVk Nl4d "s'9~t~~ ppppe S~'~~11 ~ I ~~ 4n. ~l~;Ll iB l i :a, :A1r9~pF"~,%.>>,r ~.~~~Y ii. ~l'a mMP?~fN~~~ ~~.il~~a~ aY~NiSUD'1Nu !! d_ A.~r~ ~: n~!I+Declassified in Part- Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
11
x ' c~
i)r 'Or
wa.
the accuracy of their farr~ and requisites, in the journal
checking
of letters of credits payable and places on them the serial numbers
under which they have been entered in this journal .w No 21, in
our example. At the end of the day an additional posting memo for
non balance sheet accov.nt No U71 "Letters of credit payablg?, is
drawn for the sum total of the journal at the end of the day.
For each letter of credit a detail account is kept, as well as a
tickler card fax keeping track of the expiration date. The back
of the letter of credit is usually used for the account, whale
the tickler card is replaced by a previously prepared by a pre-
viously prep'ared notice (without the amount) that the credit has been
closed.
The third copy of the application for a mail credit is
sent to the supplier. In the case of a telegraphic credit, a
COPY of the credit telegram is also sent to the supplier if it
was not already sent him by the payer's bank.
Payment on account of the letter of credit are made on
presentation by the sup:plier of documents in complete conformity
to the terms of the credit. In order to make sure that the sup-
pl t ~ settlement documents really represent goods in transit;
~.er~
the bank under all circumstances requires the presentation of
m t'lc
shipping documents or, in the cape of truck shipments, of certifi'
cafes [acts] of acceptance and delivery. The bank initials these
documents so they cannot be presented a second time, and returns
them to the supplier. The bank may also verify the paid documents.
by a check at 'the premises of the supplier. The invoice accounts
which are payable out of the credit are presented with a list
Dkda~;
;hH j
2~Sg
c;o
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
T
3 .
s '.43
Fore No is
T NO 211Th r i'piranon date
r of credit
OF 7 of ? ~rAIL LETTER 0~~ t of letter
M
of Gfz~ce' the bank
Regional
Oolast ~ ~
bra _9.~
t 2 February
Office
of State Bank.
Branch
In the city of Voronezh
~,
26 January 19
date
~' ~ and for the account o- Voronezh Gorprom
the introaucti_~;ns
On th
YoU WILL PLEJ.SE OPEN A CREDIT
Tb-~___ilisi_
I j fl the city of
For Six Thousand Rubles
.
Cha sb
with
Settlements
Far
ress. of supplier;
Nave and add
To the State Bank
Inv
- accepted
On the f ollow~ oice account
lment against .
ing conditions . 1 ) Ba
ovich Il'in
n tenan 1 edor
x, om , Without eptance of
With ac ce Lance ~y ~ .r.
2 ~~lt P
(3)
goods Tea
Find of
M1dTJNT
Date rece_ supplier' s bank
~vedbj suPP~
t
Serial 31o
19
Station of orlb gin Tbilisi-
9
~- ination Voronezh
of Dest o
to your debit a~ a c ~?o ?
t Station
_ eet
Y,aid out hereunder, attaching ce sh
e _n to non
- for siv11~ . P Cnarg
Debit as through _T-
MO 0 fo1 the lit
s
ots and a c0PY of th
. vice the paid lnvolce-acc
.
!OT ons Clerk
.
AL 6,000 0 erati P
(Stamp Reo~i oral controller
~~th its f of purchaser' s branch Voronezh Oblast
o~
'F ~'0 Clearing nutuber
1101 Code-cord
Transfer
unber Office _ ~ clearing o ni Tr
,
checked bit
1
code-word co
(Signatures t?~ro
So
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
CJL~
s'BLh^u1C.s' ._..T~AE: V"'.
GE~EHAL scHENE of DocTr?raT
PAYER-REQUESTITvG OPENING OF CRJIT
I Invoice-
account
Copy of application
1i Copy of application
3 Notre of clearing of
3 List for edit account
letters of
cr
credit
2 ter of credit
Nail let
lication for mail R 1'000
P 5
l Ap
it R 1000
letter of cred,
PAYER'S BANK
Copy of application
14 pw:~
Copy of application,
3 Notice of opening of credit 2 Nail ?l letter of credit -.
1 Application for mail
;ttiter of credit
lE
. R 15,000
After entry sent
of da
Figure 9
CIRCULATION FOR A r1AIL LETTER OF CREDIT
StTPPLIER
3 List Ifor
lett rs of
credit
B,7,5, 00
~.
15,000
R 15,000
Ret~,>rned with
Bank's Signature
Placed in Archive
F
aster expiration ate
UI
N
N
.r ?rl
H H
~ p1 :D
l
Notice N 0
3
-+ : Invoices
ening o o
of o
p
of credit o Account
?D C41
'
R15,000 R0 0 ('3
?r-! ?
-P v
(' c
0 Q) o
o (i g
p4 -P 0) tH
o .4)
Iv- "3
~
0 (0 n
~
4) `~ Cs
4 SUPPLIER' S BANK
Liotice of opening
of credit
2 __al 'l letter of
credit
II Dispatch Reglstere
Bank mail
State
,,
ents l Invoice
to docum
account
i Sheet a/c
Clearing a/c off .customer Ba
of CR No 236 Betters
requesting opening
d
ue
DR
(l) 15
basis of debit advice
~T0 26L VIII. tiro on
A c T
Ui Li ?1. i
Cr DR CR
ooolB~ 20,000 (2)i5,ooo~l5,00o R
a/c No 2C,~ MFO Contra ~
Y ,000 2
III
NonBalance Sheet a/c
No L71. Letters of
credit payable
Additions ' : Reductions:
(1) 15,000 / 15,000 (2)
-J'
following page
continued on
e9c
Fjgur
h Copy of list C
3 Cody of List 2 Copy of List 1
I Dist for Lette
orecLt T
Y
Returned with ban:
~LetLL
receipt in regist
3y Copy of Ia s
?-F v
3 Copy of Lis
of List
2 COPY
l Dist of letter of
~
1
- credit
Invoice
account
Clearing a/c of Supp3.3.?
R 15,oca
Cr
1 .000 2
Account No 263 ~-
DR WO initiated CR VI
[2)15,000
VII
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
'
Figure 9 tcont'd
for letter o3 C
L. Accep of Credit
nce application
of s
II . Dl to supplier s bank.
rd copy 3
of the 2nd and
? spetch
Oen,ng account No X71
III. p
T ice to supFHer?
Iv. F etch
aanent ~- th the left
V. Presentation of documents for p
No t~71
ount N
and charge out from acc
c
T wh~-h
aent for credit
-t
n - F -g of creds
I? ~ try oT tln F o ens
g
r ec~ues
debit advice to bank of person
vu. Dispatch Of
scheme to )ake t easier).
is un opened.
VIII. Entry F der the credit
X? , t eras
aymen of guest the cred~. ~-sFetch ocuments to the persons at those request
of d
I
.
ba ,.ted from the
,,
has been o~-
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
C 136. f~l~e ~.~Y~~~~ ~~w
the'Q xm Shawn on pad
in quaa~?p~,~,cate, of cap~.?~,a~. canetxuc?~a.Qn are
etters o credo for Eakin
counts psyable on ~? ains wjth the
t~ 1'~ank ~
ra copie$, one ?f wl.~ich rem puxth
~xeeented in te ~
~ ?ts have been checked, the
. x, ~, s a x ec e~.pt ~ Patie pnt After all doc~amen ~.e
. xeturried to the su ~.~'1 copies of
Copy ? ~ ?~ e the ? .
~'ed are noted ?~' ~
,. cpvnt of the cxed~.t ~.nv ol mp to debt
ment on ac ostme
post
st o' ti~em is need as a
liet? The r ~Lce~sheet-ac?
the
. ,~
the ac and to credit the bal
coun.~ ~r'0 ~.n1t. ~ neceesary a~.eo
~~-
,nt of the supplier
coti)nt end the c ~etail accol: e accpur~ts) ' xom the
ntered at1 .the outgotin~
its ?~rus?~ or ~~' ~s ?
c?py9 he s;1lount laid out ~. r avka and the `'fate incom side
.~
sa~ae ?~ the credit
of detail account f o~
.h yes
of the non.balance,, e f irs'r and third co pi
~Lhe balance involved.
of the credit is shown on th ruble s
or 2~0
below 10OO rubles (
e list, and if tt falls
of Lh closed at once.
oods), then the credit t
or sore goods)
?;~ 'the
drams' From the th~.rd C?pY
The ,i~,o advice ~ s that copy
or's bank t?gether with la.s ,
,~ ~d is sent to the pay
d the invoice accounto ,
an
0 of the 116b is sent to the supplier ~?tn
The eeC011d G py I enirely
be
of his account. This copy Can
the next sta`r,ernent
Frith o
the end of the day pos ,..?1,i order to reduce account
n~
At
tlLetters of credit payable t~ , is dram irl the a~~ g
~? ~7l r~ ate
relit.
amts made during the day on l etters of c
sum of all pad
to complY exactly with
su -~~1a.er' s bank must be sure
. any ~pr0per ,
The pthat
? of ? the credit, lowing
the texms and. pe~n.~ ~d
253
.~o 's
carrespoxldent detail account in the payer's
peer", and opens the
name.
The authaxa.~?~ed local xepxesentat~-ve of the holder athe
~t resent to the bank a power of attorney,
special a,ccoLUlt must p a passport visaed in that city, and his registration wi the
cia1 aCCpLLnt is not fox~na1i2ed within
local Fa.notdel . 1f the spe ~s
is returned to the payer' s bank. Paymcn
?ben days, its aanount
out of the spe ciao. account, i.e., debit entries against it, are
carxespoxldinU to the character of
subsequently made on dacuxnents .
tiall.ed or signed by the authorized
the special accoLLnt and a.na.
' ve of the account (balder) A spec.../ ac-
local repTeaentat~.
es ands) with vary-ous cants accaun'bs.
count is connected, (c,orr p
out (on cash disbursement orders, for
Thus, when cash is paid
are not accepted), cash is credited.
checks against a special account
~, its cleari11g account is credited.
In transfers to a local suppLie,
account No 219 "limited check-
~jhen 7.ima.ted check banks are issued,
' with carriers" is cred7:tod? For transfers
baal~s for settlements w~. The
account Na 263 is credited, etc. The special ac
atount is another C1tJ~ credited with new deposits arri.ving from its holder in
aiiather city. There may be no other increments to a special acs
count.
' accounts are kept in duplicate on the form
Special detail of the clearing account (see page 96)? The,,capy is sent directly
ta' the ' accaunt~holder at stated intervals, and when the, account is
c7:osed?
z58
Irf~ia~n ? ra' dl '~ 1?r9if`tS
ified in Part - Sanitized Co
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Wpr
c,~ ~ pert ,,.n
Changes in the special account, or recalls of ain.o mts
from it, are of caur,~~, s~ made through the payer's bank, which trans-
mat s the 'it' s disposa,tion to the supplier's bank f or ex cu-
cla.e
er' S bank, when it receives a dispositIan on the
ta.on . The suppla.
reducta.on (recall) a..f a special account, if the balance in that
.
account No 221 and credits account Na
account perxia?ts it, debits
263, and sends the e payer's bank a mail or telegraphic credit ad-
of this advice, the payerls bank debits account
vice. On the basis
Na 261 , d credits the payer's clearing or loan account, depend-
aci
Ong an the source of the funds from which this special. account was
opened.
Where there is an unused balance, the closing of a special.
account follows an analogous procedure.
3b. TRAM SEER OPERATIONS
disPposition of a bank establishment, issued on the
~.
a.ns txucta.ons and far the account of a client to a bank establish
rrlent in. another city to pay a certain amount to a named payee,
is called a transfer.
This s form of intercity set?'1 rents is used for small pay?
menu which do not involve passing invoice accounts through the
bank, for furnishing turnover funds to out-of'-town of'f'ices for repre~
sentatives , for paying debts, claims, court judgements , arL?itra-
ta.on awards, fines, forfeits, and for the transfer of accuaiLu1atOn5,
etc Transfers are made by Taail or b telegraph in a minimum
.:
amount of 1000 rubles, except for the amount of kolihozes, when this
25R
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
reduced t0 2~0 xub1es 4
nsi'n,iYam is
or thG trans;Eex is order a~ ?~he cl.~ ~
The a end (the r~mt~;ex)
~ ex
~ b~itY a~ the ~+ra~'S c~xm
asa.
bank as to to arks
checked by the r off' the xeo~uisites a~
~' ved .the correc'~ :ailing
what , ) the agreement
in the case ;Lnvo1 ~ om for
to what city , ~o wh and
the order (amount ~ '~uxe an
ture ws.th the samp signa
of the c~-~en~ s signe, the cla.en's accaun?~* The
the exuistanc ~'it , ~ale~
M
e o~ su~~icient ~ ds in
w
b
,;; First is used by the
,f ~u.~my.~,~ed ~~, three co'Ates" The second is send
~.aver Ls '' entries, the se
the baa~eep~-ng
bank as a basa. or ,
ch
;; trs~er is
re-
addresse ~, (fl Bank ;~,~) to whi the
he bank establishmen the client as a to th r is delivered to
~d, and the third cop
of its axdexo
ceipt for the accepLance Bank
the bank establislvnent
transfer,
~ihen it makes the
' .~,. earing aCCO
. he amount transf erl ed to the detai ~ . ,c Count ~
~
~. ) Charges ~.
s~onda?na .shce~ ~
come 1
~d client, and to the baa,ance
`=
a~ the ~ ,~0 crc;dit adva.ce is dz^awn out
No ~, cxeClits accaun'~ 263 . n I~~ bank (dank) ~
tablishm~nt othe
-a~?t0~J~1 es
t aid cent to th~ aU.t
1 TO credo-t telegrams are
trax~sf er, the
For telegraphic
m,arvflex s
\ yawn the f01ling
R U 1 ?[ ~ 1 ~ a 10? C1 is f;f P,if+dl~ "~~f, iF~'kf
rl f -.4 ... .I 1 rs. fl (
f i. 1 l 1 f
a ,r 0 . t!
I:
1
~ ..,; IRa !, t ' f 1 ~ Irfl ~r~tk v. di
ans~er Report two addresses The .~elegxam maY \.so
Tr
?B' as the single addressee
tank
r~.y . ~o D
s atcl~ed o
be dti p
QI-IOL1Q BFVEQE , TRU 5T
,C
IfdnST I3A1~Ic
~ Q o~ ?~lcohalic Beverage Tr~st
lease credit ,Q2 instructions SI~Z
keyword I? .
:.. rubies complat tby' ins
Five Lhousan f ve dyed hun. . 82,372
?~t ~ IVI~YJ ~i~4
t6
Ir~f ~ ~ r
{
Mf
d
J`.
.r lr4i ! K1 !~1r3ank, and
exclusive use for capital repairs of its fixed
is earmarked for
resources.
The bank takes care to have the deductions or depreM
c:i. very 10 days into the special account for capit~l
a ~a.on paid e
repairs The bank that keeps the first clearing account makes
transfers to its capital repair account on the order of the firm.
ese orders are executed in ediately after the claims of the state
Th
met. Every month the firms present to the bank their
budget are
certificates and settlements on accrued, and deposited depreeiaw
tion. The 'bank has the right of its own motion to transfer to
account No 167 the amount of depreciation deduction for capi-
tal repairs that have been accrued but not deposited by the
farm.
The bank controls the use for their intended purpose
of tht:: funds disbursed from the special accounts for capital re-
pair. The financial control over the funds so disbursed is analow
gous to that by which the Spetabanki control the proper use of
funds for constr~aCtion. Specifically, certificates on the con-
? air plans and the financial estimate
,~~rmation of the capital rep
r
settlements are presented to the bank, which also verifies the
building materials and the ageernent of the payment 31
prices for ;a
with the work actually completed. The following tYAes of ex?
I
enditures for capital repair are paid through the special account
p
at the bank? Payments for building material, ser'v'ices, accounts
for operative activities for materials turned out of services
s
p
I~ Iyr
13 43
M
tb~(i~r~
'GI MN'111
~rr}r'lrG lii iti11s4~ ~~Sir,4'Y1 ;111 ldnlr I,1 ; [ ?;p.U 1, ':ii: d'7 >. nol5 ~J'Jfl{11 ,+~ :h'w ~fir,1 ~, l1 r" fC.~ n,4f n ~;
Declassified in Part- Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
MaCaronixFactory voroneszh
Rega.onal
office
Form No 23
BuREAT OF I UTNAL SETTL'~ ' NTS
AT THE ONN OBLAST GI0N,f~L
OFFICE Off' TIE STATE BANK
FOR 7 -lo FRUA~Sr 19
CiaE.~.RING SHEET
Names of
Members
10 Selling Base of 0 343~~~? ..
~,agot~erna 7007 12,1.2 142 a $~?
2. Conf ectioner,~ Factory O33 6 7 00 ~$00
1~2,~00 9,
3 lcrilebozav, No 1
.
2
~w Base of Ogg 1 s8~0 ~.8,~00 9~,30
192,200 110,Soo 82,200
;? Ease of 013
;* Base of
GlavrasZhirrnaslo 7.92,200 6?,g,00
260,000
b. Vox^onezh Khirkombimat
b7 7.20, 000 6,67 tbakal'
?' Ease of 60028 7-26,
So~ZOp
Branch 60002 )47,L00 9,900
8. Oblpishchetorg Unman' sly
py ~,AF,
K~1 ~~,f}f~Yk
.10. Gox^pishchetorg Same
ppFzr+`yy'~~
Bank Number of
Branch Member' s
Serving Clearing
Member Account
099
6008
TURNOVERSEal
DtO
' W
t Credit De 1t
Eeb1 (to pay)
62,300
10,000
2,300 60,000
L,800 11. ~, 20O
Carried
Cr dJt
(to rec)
379,700
130,7 2~
1,600
1s1~0,,200 i,10,200 ~12,02~ 12,02
~
29:
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
rendered for construction, delivery of funds for wages, contract
advances to contractors and letters of credit opened in other
cities es to pay f'or material and equipment parts to be purchased
there.
The bn:Ls and other documents presented for payment from
a special account for dapital repay".r must have the supplementary
requisites prescribed for documents on which settlements for
capital construction are made.
The bank may grant the enterprise a short term loan to
the end of the year to cover the seasonal l~ g between the expendi'-
tares for capita]. repair and the arrival oi' new funds in the special
account f"or capital repair.
Besides the current control f'o r financing purposes, the
bank also periodically checks the proper receipt and use of
funds for cap:Ltal repair by auditing the documents and balance
sheets at the firm's place of business. If it discovers that
works,, 'ng capital is being used for capital repairs, or finds
mismanagement, inflation of prices or other violations of finan-
c disciplinoa the bank may discontinue its financing of capital
~.al
repairs, and advise the firm's higher--level agency of this action
a
s
Af
Declassified
cC)
n Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Taking into corisideratLC f the specific cond i-tions of the
transport economy, the bank organizes a specialized service f
transport. First of all he bank a~ sures the most rapid collects
t of the transportation receipts, and the most rapid forward.
~.on
ing off' those receipts to the centers that dispose of them. More-
over the bank only pays out to the transport agencies such sums
as their superior agencies niay pay tiP errs, depending on the work
done, or may assign 'to them accordin`,; to estianate, and. strictly
checks compliance with estimate and budget discipline. In conM
nection with this, the receipt o1' transportation are concentrated
in a single account, while the disbursements are xi.de from other
accounts, strictly within the limits of their respective balances.
Finally the bank furnishes credit to the transport agencies for
those seasonal requirements which cannot be satisfied by their own
working capital.
All rai:Lroad stations and agencies of other forms of
transport are obligated to deposit their receipts in cash and
checks daily in the bank.
Stations may be permitted, if authorized by the railroad
management, to retain a certain portion of their receipts for
the following purposes:
To settle claims of clients involving freight charges of
less than 1,000 rubles, and to pay for occassi:onal 1;aboi~ engaged
to liquidate or prevent natural calamities. The receipts of the
stations are sent to definite points along the lino of the rail-
roada where they are deposited in the bank, and after verifica~
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
29f
r'1i ?t jC jera Z ;rl !r p~~i ~; S u i ~'r . a ~ i
. li. i '
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55
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-0003
98000200060027-5
f' :s Y. ~r t ^~.~. I r'.,
x^e debited to cash account and credited to
ta,ons and acceptance a
ac count No 130 1l1~KP5 pM incotne aceounts't. Under this balanlce '
sheet account at the hranthen of the "yank to which the receipts i,
~ ate income-account aI~KPS, or the rail-
ax^e fa~rarded, a ~uboxd'~.n
' nvolved is opened M- for instance, for the man-
road management a. ~
rst railroad. The branches of the bank have no
qgeirtent ox the Ku
any charges whatever against this account for any
^a.h~, to make and
dac~.iments, not even on a court order. r21ree tilaes a month, on
?Uh 9th, 19th, and 28th, the branches of the bank te;legraprric~.:i.y
r of the subsidiary income accounts w- omit-
ting transt'e thre the kopeks baa.d w- nces to the ' branch oi the bank where the account
of the management o~ that railroad is kept. For instance, 'branch
"
s of the following lines ~ 1~azant railroad,
A takes in the receipt
of ~jis at Moscow, and its account in the
na eraent
~~,ch th ..a g
Moscow . ;e nal office of the State Bak: And the Kursk
rJlal.ast l~~,-o
railro ad of w . the marrageraent is also located at I~ioscow, and
t
.~. ch t
the ~ascow-Irasnagvard~y sI branch. On the above
its account ~
mentioned s, branch A telegraphically transfers the amounts mentioned date
accumulated to the I1oscaw Oblast regional Off ice and the Moscow-
Icrasnogvardiysk branch respectively'.
rSh, throug fh the subsidiary income accounts distributed
u.s
~ -
I among the branches of the bank, the receipts are gathered to
. branches that serve the managerr nts of the rail-
credited to balance_,sheet-accaunt
~~ gether in the roads. Here likewise they. are.
No 130 and to the personal account of NKPS income for the manage-
ment of the railroad concerned. The branches that make the
above mentjreflect it by a debit to account No 130,
` uned tr~lsfer
and a credit st-p initiatedt?, and fax this reason the
,xa to accaun
'L97
J?))1+
DA'
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
a~.lxoad Trv~a~.~'ed crakes the
' I1 g the ~r,arra;eT~xer~t athy, ~'
branch serva. ~ ~'e~` ~ Uebit acGov.~.t
r ~.es when It xecea.~res 'the trans .. ca~1-eC~-
contrd eTr~r U~ By d?spas~.~a.on off. Lhe
account O 13 axe
ir~~.Z~ U Cpntx an, credit ,:.. c ra~raad a,dira.n:t.stxat'~.on, a ~'
' '~- depart 7nen't o~ ~h ?aCCOllTrt
t;LUn~ Cpr1~ro
a.ncorn
:?xaxrs~erred to thc; la0a1.
athe xc;ceipts may b': ?~'
the xece~.pts belang to the
i~~PS, xoad? The xemaynder of ~ o~ the rail three tames a
, ph t
e i$ transferred by te1exa
and ?therefo.~
to the centa~aliued inconre-
~-s?~, 1.~.th, and 21?~~
n the 1
month, o ratiorrs z,~eadr~uaxtcrs
I1Sin'0scaw,attheUjep.
accoutre o:~ tYrc
ui0e of the State 13arLk.
o~ L-he Dead
? ettlements with contractars
The railroads make thea.x s in bal-
unts wl.ch are re~1e cted a. .
thx'augh tlrc~..x clear'.ng acca ~
ante t~i~II~PS enterprises-cleaxaa~~; ac.
-sheet_accaunt Igo 13.E , , ' ~? ;;tra~~-ans
? c0ourlts off, the ra.~lxoad d n:r.r ti
cotiuxts" ? The cledra.n~~ ~ a of w~ricY~ has its
ozraschet Limits, each a
and 01' i?La separate
are concer~-
ixrdep endent bal &.c e sheet,
ow~1 worl{iy1k Capa.taa~ and ~ are the bu11d~
c 115 . Such units i'or instance
Crated in accoL~nt 1~0 otive service etc.
naterial departine, the 10 00111
ink operation x
tt ear~:n~ accaur1t of the rai.laryos.
~-so a-n0ludes Cl
~~OCaLrn~~ NO 11~ b order athe
or local. income',, on which, y
adma.rstz'at~on for
s can?~rol department, that part of the receipts o~ the
' Co1leCta.an
a. to local income is creditcd_
. , on which is allocable ?~ . ,
me a.n aue sci tele raph and telephone SexV~Ge,
' collectiarls for ~ .s
.
for a. nstance, the railroad pay
O Of warellouses? FOr this account,
or ren~ ~i ~~~..w _ ~'ar such pa~rtc;rlts made and
st it, or reimburses itself
clas agaan
:~dmin.istrs,tian o~ the
en~.e.s t0 the a
fcecuteS ,txans~'ers for expr
e
ai1r0ad. cansec~uently to
'se u
x' the basic p ~ ur a o this accont IS
29E
I~S~+{y{y~~~1J~4"DNS'
d F~v 1
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
?s cax~nr~cted wa,th ?tlie ~^aa.:l.xaad ppexa~.
serve as a source fax pa~rer~~ ., ?he
..: of N1iP~i, ?the free balance ot. ~
ta,ona ~.t'1 the autY~a an
f
~7~~~].ete~,.. at the ~ d?.i.sposa.t;i.on o the xa:
accaunt may be p].acecz coy,
road on its clearing accounts
Most intex~rai17?aad settlements for mutual sex'v~.ces are made
through the BVn.
^
stations (stattionmastc1s) have current accourlts at the
lh~.
, These accaun'Ls retard
ba ii)
and the
nk (unc~le:r balance-sheet account Ltio froiti the ratiroad ad~nif,i5 traticn)
tY.e amounts received ~., for use
station (platform-tickets, charges
direct :income of the,
the storage rooms, etc.)
of
for repairs to their ':Lacpmota.v~es
Settlements tlSeSettlements of the railroad
u~
are made througYi special loan accolts
and other ra].lin~ stock
of the paYeAt the begiz?n.na
o erred at the respecta.damici-les
p
o accw~nu~ ted on these accol~n s is
ss
the month the i.nde~~tedne adp
State Bank establishement that serves the
tran.~feri~d to the .1. transit /can
of the road in quest (through a special
111stration
.a atiuns Headquartexs (~~'~.~~ )
account), a-,.~,d froril there to the C'~7c,r
r.. . ~C~ISPC keeps tro deposits at tlia.s
at the Head ~~f~:~.ce in ~ ~ascaw a.s
cure the liquidation of the indebndnes $o
headquarters to se underloaclir~~
transferred. Paments for dernur*a;e of cars, for
for freight in direct [~rit,hout trans'
and o~rerloading, , as well as ~
- r rc~uti.n~;s, is made on b~.la.s carawn by
sY~ipment] mixed ra~.~.~wate e shi exs
and do not xeg4re acceptance, th pP
the trans~aort agenciesy
are a criers under a centralized procedure
~.lowed to settle with the.. carriers
freight char~ea. Y~'ar this s purpose the
for expor t ..and mixed railway ~ nt
shipper trust open d special accaur~t (under balanee,~~heet accau
`L99
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060027-5
 No 221* with the bank serving the railroad administration of
s tcaaitshap 1'ne whose a. nvoic6Mac00t$ axe t11en paid, without
a. }
of that speciaJ. account Such special, accounts
accep'tancc, out
may be used for even local settiements.
Li.2 . SEA" 1TLEM
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
ENT S RVICI FOR NSKVYAZI
Eac~~. a encY y of the Nksvyazi that is lnanced under the
~a
procedure, receives a linliit advice from the agency irn-
~,staana to i.of to it, setting foi tli the monthly income and di -
tlled..at. ~Gl~. ~ SLlper.
cement plan The 'bank supplies the coriimuficatiouls agency
bur ~
the lrianthly amount of expenses required by it pursuant to to limit
advice. For this 1 purpose a clCaring account, is opened for it. sander balanceMSheet account No 1L.0 'tNarkomsvyaZi -- operating
,
accounts" to which the amount of the limit notice is
expense
transf on the 1st of each month? Assume that the Rayon of~
errcb. o
d ice Ui pasts and Teie graphs is assigned. rrLanthly expense account
of 15,000 rubies, which is also stated in the limit notice. On
of the month the bank makes the entry; debit account
the first
Na 1L6 nNksvy?axi -- ope r'a'ting: income acCODUlttt and the detail
account No 0 (nccarn~, ~; o the }yon Communications 0ffi ce; credit
~ ) .
~1 lksv yazi ~- operating expense accouritstt and ex-
account No 1h0 ~ ~
pense account No 1 of the same Communications Office. Under the
usual procedure that Office will receive funds for its expenses
from ~~om: that, account. loll its receipts must. be deposited daily in
the bank., which despite the amount of such deposits to cash and
~.
1L~6 ''NksvyaZi operating ir.!.come accountsU
credits accoun?t5 No
by the above mentioned detail account No 0. The income off' the com
munlcatians office thus gradually accumulates to the credit of
300
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RD P82-00039R000200060027-5
 t r
kk
I.
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
detail account No 0 On the first of tYae following month the
credit side of that account may be eithex greater or srna1ler
than the debit side (end the account is thufs a1tern~tive1y
resource and liability).
The balance ?.n this account or. the first of the month is
trarl sf erred by telegraph, in even ruble s, through I\FO to the
corresponding account oz the irrnnediately superior organ of Nksvyazi,
and all these amounts will f'ina J.y be gathered (in even thousands
of rubles, by telegraph, on the first of each month) into the
corrrespondin ; account No 0 in i.oseow, at the Operations Iaeadquarters
of the Head Office of the State Bank,
The working; capital of khozraschet organs of the Nksvyazi
is recorded on account No iL1 "Nksvyazi Enterprises -- clearing
accounts'', and on personal account No l of the Idiozraschet cor-
munications agency in questton, which is an ordinary clearing
account.
The Nksvyazi carries out a transfer operation by which cer-
tain sums are either accumulated at different points or withdrawn
frorl different points to pay incoming transfer calls. The funds
so accumulated by local Nflksvyazi agencies are kept separately
at the bank in account No 117 'Nksvyazi for transfer operations't.
The State Bank also makes funds avlable to pay transfers to such
agencies on this account, and allows?a'debit balance on it.
At the end of the ,year , the bal ances of the account are
transferred through to Oblast Regional Offices of the Bank .to the
Operative Headquarters of the bank in Moscow..
3
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eclassified in Part - Sanitized Cor v Approved for Release 2012/03/28 : CIA-
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
at
The bk pera.odical:hY checks,
M
w~.~h the ru~.~~ off' ~as1~
.~ a~i agencies, their camp1~. ,. ;cocc~ds them o all na ospec allY depOSIt by
~~~r~~nca~~1 d~. r ~ca.p~.~.
to be held ~'ox txansfcr~ etc.
oxceedi.n~ the 1a.of cash
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
A
INVOLVING ~E' 'UNION SOCIAL
l~3? S ~'~ S xNS'LI-N
c' FUNDS TP.AD1 UNION N'DS
The tradeuflion e,genoies sell dues stamps and disp4se of
service to union members. Tha
extain finds for expenses of
c
hel ing the trade-uflt0nS by supp Y.~
State dank has the task of p
1lecting the proceeds of the stamps,
ing them with sta~aps, co the unions
to the central of Tice of
trant~f erring these pro tdS
~, cash and sett~.ement serQice fbr
and also by organ. ~.zing the usual
the nn~.ona?
In order to saws these problems, each branch acts as a
stamcps, which are sent by Goxnak.
deposit" of trade?uni,on dues
its invoices to the RAgion*3. Office
(The &o~nak sends copies of
of the State Bank. This office then f olloWs up the proper' entry"
of the j.ncoming dues stamps as additions to nonbalance~shaet
acvounts on the books of the branches of the bank~.pr from other
d are recorded on the non-balance sheet
branches of the banks an
account No. X23 utnkens for payment of state duttes and other
of accourbts is used so as t~ assure re
tax jmposts", a system
ceipt by the central offices of the trade unions of the proceed?
of the dues etas; and the usual currant accounts are kept with
and used4al3o by the latter to par their
the trade union agencies
expenses,
The Fabzavk011 have the usual current accounts at the
establ.ishents of the .state bank. The variaueitems of iricaiad
weld. as 'mnounts from the trade-won
pass to this account, as
Ian ~s~rs
ified in Part - Sanitized Co
if
Pu,~4
1111
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
organ e~?~tel~' auperi?r, a certain percentage of the dose
11~red by the bank, eta. ~
$ acu~.red: the interest a
staff
at an astab~.ishmen~t of the bau-k,
~'a~b~avkom buying dues stems a
pays from its ord~,x-ary curacent a,acaunt0
for them in cash or f r
the gta~as axe cred3~ted to the current
The amounts collected for avkom
the trade union to which the Fabx
subacca~t of the TsK of
'
the entries on sale ot the stag a1e
belongs. ConseQuently'
Credit acc4'int No. 1~9 11'ent
either: debit cash acc%wflt,
zatiofln (current subaccaunt of
. aca) ants of trade ur? ~.an organs
TsK of the trade union) 3 or debit account No. 1~9, detail
om3 exedit the same balanco-sheet
t account of the I~abzavk
cuJ:.L*
subaccaunt mentioned above. At
I~
acaaunt per the detail current
t sups gold is charged out the end of the daY the amount of es ~
able the bank to k~naw ghat Fab~av om o ~
of account r l~~3? To en G
~estkom bought stamps, and L or that amount, the card of the de
the TsK of the union ie kept in cols
tail ccent subaccnur~t of t
nax' ssi ed to each Fa~b~avkom or ~stl~o~a
fcr m, with one colu~an a ~
phis all deb~.ts and credits to the
of that un3.on? Besides ,
reflected in the usual certificate,
went cubaccount are
`.
si atures and seal of a superior trade
lega~iZed by the ux~.on
4 . gn -
unit (not below Oblast level) , the Fabmestkom mar be suthoxi.Zed
~ aid by it for due
to receive a part (2Ou O%) of the amounts p
i stamps. 1e such a standard certificate is net ? presented to the
bank, them tl amounts o~i.n for the union involved are tramaw
. a ~,nc g
feared xithout deduction to the Oblast Regional. Office of the
. .
ctirrt
State Bank. The samB/eubaccouhts by '?na (broken done into
' `,... -
?.; are also
asar?. kept ire the branches of the bank,
f' ~~aestkoma~
14~ i?,19
'~ 1 t `.~I~t4 ti?
,4' lI,\PI
~JII 4
iy1k
~ r
i 1 t
II 714 t~J~
~'u piS~kZlh4
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
kept in the Regional O1 Q8 iteelf for the entry cf the rem
cei. to for the stamps sold. and the transfer of such receiptse
Twice a month, on the 1st and 16th, there is a transfer
of the TeK of the unfons to the
from the. currant sub,a,ccounts
tkoma in accOrd~ce ,iith the ataTh
current accounts of the F~abmes
mentioned. If, for tnstance, the
d&rd certificates we have the
the current subaCOOant shows that
correapondS.ng colt of
abnestkam in question bought 3200 rubles' north of stamps in
F
etar18X?d curtificate, ' percent
1~ days, and according to the
is due to its then the bank makes the entrry'~ Debit account No.
ab~stkom in questionfor 1bQa
.,~oux-x?nt ~subaccount of she ~` ,
1~9
rubles.
the amounts for due staffs that have
The renatnder of
t subaccvunts are gi?tacr-eousl7 trans
acaumulat?d in the aurren
Oblast or Kra' egional Offices, where
(erred through FO to the
have been opened for the see trade
transit current accounts ~.
union TsK? The Oblast
or KraY Region2. Offices may have instr1tivns from this TsK to leave
or transfer such and such a percent"
the dues stamps at the dispQeitian of
age of the proceeds from
The balances of the.tran8it
the Obkoir of the respective unions.
tics a month, on the 7th and 22nd, by
accounts are traflsnd.tted
the 'Rd gianal offices of the bank to the establishments of the
,
bank in xhi:ch the centralized current account for dues stamps is
union in question and in which account
kept. by the Ts1( of the
coUsc$ed? Finally the TeK
the roe cede of dues. sung are. thus
A
of the trade un3,ons place a part of the pr~cEedc s? concentrated
" . , .
305
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060027 5
m
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
SOCIAL INSURANCE FUND
at the disposition of VTsS, while the remainder is placed in
their ordinary clearing account, of which they dispose and from
,
which they withdraw funds for the fulfillment of their respee?'
tine plane, (The sale of dues stamps may also be handled by
Raysberkassya who receive an advance of stamps from the State
Bank andorder the State Sank, ever; days, to charge their
accounts with the amounts received by them for stamps sold. Such
orders are accompanied by the first copies of- the Fabmestkom
applications. This entire system assures the planned distri-
bution of the amount received for dues stamps, and makes it
possible to elucidate the role of the separate rayons and
obl,asts in the sale of due stamps as well as the financial es-
timate discipline of the trade union organs.
The accumulation of aocial insurance funds takes place
under the same procedure used for collecting trade union funds:
naaaely through a system of current subaccounts, transit and
centralized current accounts of the Strakhkassy of the union
TeK. The distinction is in that the insurance premiums are not
paid in cash, but are charged to the clearing accounts of the
insurers on the basis of their comlmission"orders (special form)
and that there commission orders (second copies) are either for..
warded together with copies of the. current subaccounta and
traneit? accounts to the insurance offices in the same cities where
such accounts are kept' or are dispatched, together with the
o3
1~?~y~i atl
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
SETTL TS OF GOSZAGOTOVTT +" l WITH
5,tt1ERS OF RICULTURA'r PROAUCTS
wr afae~tfb~
8 t is
to the higher~levex (Oblast Kral, or 'e-
trans month from
public) insurance offices. Transfere are made 3 times a
the current aubaacaunts, on the let, 11th, and 2Z?et, from the
. ed accounts' ~ times a month, on the 1st,
transit to the cent~xaa?ix
and ten tines a month in ova cow, 'eningrad,
7th, 13th, 19th and 25th
bank insists that all T ganisations de'
~~1kov and Kiev. The
posit their insurance pre-W3 piiflctuallYn and refused to issue
that delay insurance payments. The or?
funds for wages to those
dory of the insurance offices to charg* the arrears (delayed de-
posits) that have accrued against insurexa are incontestibla and
are satisfied by the bank under the compulsory pracedUZ e, itjited"
lately after wages. Social insurancs arrears, however, are coh-
.
/acted from the current accounts of Kolkhozes and promkolkhOZea
only under a court execu.tian.
3Q.7
The state collection organisations settle with state and
cooperative sellers of a icultural products exclusively by clear-
the bank debit the corresponding accounts
ing (+ e? by having
aniZation? and credit the clearing accounts
of the collection ?rg
of the sailers) with kolkhozea either in cash or by transfer t~
; .
sellers desire; and in. cash with
the kolkhoZ accounts as the
duals. Settlement is made immediately
kolkhoz members and indivi
a!VJ. thholding is permitted only.. for
an delivexY of the products,
loans. ' The bank settles with ths
seed loans and consumption
sellers on the;basi~ of daily listsprosented to it .ire duplice~te
.:.
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 ~I
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
on or6antzation showing the recefpte issued for
by the aolleati
accepted produats. Once a month the establishments of the bank
check the accuracY of the lists by comparing them on the epot
the receipts issued on acceptance of the
(at the Agotp) with
the wish of a kolkhoz, the collection organization
products . At
irill isaau?a payment order, payable by the Mate Bank after veri-
fication of the authenticity of the signatures.
The amounts due to kolkhozes whose current accounts are
outOf"tV1 branches of the bank' are transferred to
kept in
uch branches b 1LFO credit advises. Amounts due to kolkhozes
s by
whose current accounts are kept in the same branch, are credited
to these accounts and debited to the accounts of the state co1-
lection organization.
L. 1CEOUTORY DOCUN ENTS
A document for the involuntary collection of a certain
amount fry a definite payer is called an executory document.
executions; court orders; arbitration awards
They includex court
of state (extra departaaenta1) and departmental arbitration boards
.
(for instance, oaoU ` arbitration board) which have the
Tsentr
to enforce the execution of their awards; ? executt'ry nota'
right
bons of a notary' instance on matured notes); accepted
bills placed with the bank for collection and not paid at
.
maturity orders of Finorgauy for the collection of taxes and
?
,
orders of insurance off ice3 for charging of arrears;
arrears,
orders of Finorgan to tranefer to the Spetsbanki the deposits
~'
30R
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
and p aent$ due them, etc.
aurnents are presented by their holdera
Local executory do
the establishment of the bank in which the
(the credit' a ) to
clearing account of the payer is kept, so that dither payment or
,
a counter claim against the creditor may be
offset on account of
demanded andobtained.
14
for off
nts for any amounts are accepted
Executory docume
set. In general, hOever, the bank does not accept executory doe-
ubles for collection. Collections for social
uments under X00 r
insurance and taxes, coilections in favor of kolkhozes, claims,
against budgetary institubons, an f individual citizens against
'organizations, are accepted by the bank regardless of their
c
+Mt,
y?
s
amount.
Each executOr'Y document must show whether it relates to
basic (operating) activity or to capital investment (construc-
tion), The State Hank accepts only those executory doewnents
that relate to the princip1 activity and to settlements for
cap from funds held in special accountscapital r epalx` to be made f
the State Hank.
against payers located in other cities
Executory documents
holders for collection to the bank that.
are turned over by their
also accepts other documents for collec-
serves them. The bank
tion, such as, for example, dispositiaas of the GlavkY of the
industrial Narkcamats on the compU19a charging of amounts of
,
amortization and profit not deposited v.th the Spetabankl, all
.
3n9
. r A I sti t
G~ iI1 li I
I i
ii` r I
~~t ~ ~~~l{,~,Y-.,'f ~~i ~~, 1~1~4'~1~Nlp ~s`i~i'~~~~!~~d ~v 0d ~. Dui h,'
41
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
y5
The arigina], documents for out-sof-town payers are sub -
witted to the bank with a set of collection orders in triplicate,
which in their form recall the supplier's bill. A collection
order must have the follawing requisites: Name, address, and
number of the clearing account of the execution-craditCr; name,
address and number of clearing account of the payer, designa-
...-._.._..... tio.a ...nu ber...and .c ta, of the (executory) document deposited for
collection, by whom and where issued, whether related to
operational activity or capita]. investment, amount of the doc-
ument and amount of interest payable. Collection orders are
turned into the bank with a list in duplicate,
obligations of cooperative organizations on loans received from
the adjustment fund.
On each collection order the establishment of the bank
that accepts it fixes the document return date which is compu-
ted by adding lb days to twice the mail transit time. The
third copy of the out'of..town order forwarded for collection is
charged into account No. echcdule B. Incoming collection
orders are registered in the usual manner at the payer's bank,
and then the executory documents are placed in card file No, 2
and charged. into account No. b].~, "Settlement documents for col..
lection, not paid at maturity", while other documents are placed
in card file No. 1 and charged into account No. l~1II. Executory
documents are kept by the bank until their payment, delivery to
a marshal of-the court, or recall by the execution creditor. If
the executory' document has not been paid in 10. days, the payer's
bank must nct ify the execution creditor Is bank. Paid executory
t 1` Rr~ 3 A ~;Jdnt'~ ,I urn , i
~ W G jrIcB4B 'q'r 1l~ 411,,'
31D
W J~a y , r .ro
~ ~ t r ti f~m4i ~ ~
I ~~ '~' ~a,~~ ~~ r~ '' 0.r c ~i ~ i~i. ~$~i`9 /~ #
~ `~If#iF,~i Declassified in Part Sanitized Copy Approved for Release 2012/03/28 : CIA RDP82-000398000200060027-5
41
ri1
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
documents are delivered to the payer With the next s tatement Of
hih3 clearing account. In all other respects, the collection
Of executory documents is formalized analogously to that of
supplier's bills. In the enforcement of larger amounts (20000
rubles for the USSR budget, 50000 rubles for SR budget and 10000
rubles for local budget) against budget institutions, the executory
documents are presented by the execution creditors to the NKF
USSR, NKFSR or the local Finorgan, as the case may bey which
then, within five days give the bank a disposition in writing
on the payment of the document out of the debtorts budget credit
or funds,
In voluntary collections from enterprises in favor of
individual citizens are only accepted by the bank from the
marshals of the court, and the amounts so collected are credited
to the account of the corresponding peoples Court.
The bank must concern itself wi th involuntary collection
from the clearing or current accounts of its clients since all
funds of the client are concentrated in these accounts. If
there are no funds or insufficient funds in the clearing accounts,
the bank will make charges against it towards satisfaction of
all claims, pursuant to the priorities of payment fixed by law.
Funds for wages have the first priority for payment.
For this purpose, an amount may be earmarked on the account for
five days on an application filed by the fixra the day before the
wages are to be paid.
,IN(?i S :d' O A 2+~4~1~V ~ ~ iwlt ~ e61 {
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
o C:
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
Next comes the tranaf er of the , amounts ?r., thheld from the
'workmen and e o ees on account of their. subscriptions fox state
m~. Y
loans and for taxes and so cial insuraflae'
Second in order of Priority are the claims of the budget
nmaunal d epartmente for rent of building space,
for taxes, of co
etc.
Third in order of priority' payment is made for imported
goods , as well as the orders of firms or of their higher~leVel
andof Ilnorgany for the transfer of depreciation funds
links
(and profite) to the Spetsbanki and to speci 1 accounts for
capital repair. Fourth in order of priority, pastt.ddue and
matured obligations on loans to the State Hank are paid. Other
documents in card file No. 2 are paid fifth in order
executory
of prioritY. Bills for bread, salt, and distilled liquors are
paid first among the past-due bills in card file No. 2.
.
Sixth in rder of priority, matured bills, obligations,
If funds are insufficient for full payment of
etc. are paid.
an e xecutory documents of.a given order of priority, it is
paid in part. Such payment, together with its new balance, is
noted on its back.
At the wish of the ho]der of executory documents, they'
may be r eturned to him. or delivered to a marshal of the c
t.
In such cases, in order to preserve the compulsory force of the
document and the right .to assess a late-charge, a notation is made
on the ?? document leaving the bank, shc~-ring when it was received in
312
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
the bank, her muoh the bank involuntarily, recovered on account,
and ?when the document la ft the bank.
To avoid violation of this preecribed System of priorities,
a special payment document sheet is drawn up every day for all
clients against whom there are executory docwnent4n card file
No. 2. In this sheet the payment documents are arranged accord-
ing to priorities. A considerable part of this sheet isfilled
out by the collection group that handles most of the collection
documents, while the remainders--columna 3, g, 12 and 13?4s filled
out by the operations brigade that keeps 'the clientst accounts.
Each sheet includes the clients of only a single operations bri-
Bade. All detail account sheets of clients listed in the pay-
ment sheet, are stamped or otherwise marked "Claims", and char-
ges to such clearing accounts are made in to course of gradual
payment of claims in the rr der of ' priority. In a ceordance with
the balance in the clearing account the operations brigade
makes payments several times a day on the documents, in order
of priority, and fill out the line 0Paidon the sheet. Docu-
ment received dtrectly by the operations brigade during the day
for instance, instructions for the transfer .of the depreciation
fund, or orders from thesocial insurance authorities and Finorgany,
are immediately entered by it on the sheet, andare then delivered
to the collection group for filingnin card file No.. 2 in the un-
paid amount.
We present a sample "Payment document sheet for c aims of
various organization and of the State Bank" (see page 169) (form
47.
pp
p~Vw(@ r~p'~ ~'
~b4
~1 a~lr
)1F
1
Jl
ified in Part - Sanitized Co
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
In recent years the deposits of private persons, (fox
eoaounts above 3000 rublea) have expanded, while during wartime
the operations connected with the deposita of military personnel
were introduced.
Deposits of military personnel are accepted in military
fiold establishments and also by' those stationary establishmente
of the State Bank authorized to do so by the Head Offices A
substantial peculiarity of this operation is the possibility of
withdrawing part of the deposit, or all of it, in any establish
went of the State Bank. In connection with this, the passbook
(of a special form) contains controls, which allow its authentic-
ity and correctness to be verified specifically, the name of
the depositor and the amount of thecpsoit). Payments made on
passbooks in other establishments of the State Hank must be
verified With special care. Such payments are debited to account
No, 269 "Paymentson deposits of military personnel"d (The opera-'
Lions on deposits of military personnel are also reflected on.
three other accounts, of Group XVIII of the balance sheet,
namely No. 277, 377 and 271. The captions of these accounts
(see Appendix) sufficiently designate their purpose., for which
a special analytical journal is kept, which helps to follow up
the arrival of the credit advice from the establishment of. the
state Bank for the ac c ount of which the p a yme nt is made ? A
credit advice (~hich really amounts to compensation) must be ob-
tained for each payment made for the accoun,of another State
Jr1G~~~ i We''~F~ x
'~"ti 641~~,,~~ v . u oeym'V1kt~ ~,G~ ~' u A l ' gv yi H i ?~~'Jd~66 ~ , ; i, r ray i1 1'a ~, ICde a
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State Bank USSR
roRM 214 (P? 169)
pg11 IIIT DOCUN~fiITnSHEET
ons and of
By Claims of Various g
Tt State Bank
For February 17 19 5
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Bank eatablishmenta
An account may be transferred by military personnel to
another State Bank establishment, which in this case debits
the amount of the depaeit so transferred to account No. 369
"Settlements for deposit accounts transferred by military
personnel" and obtains a credit advice from the State Bank es-tablishment that originally accepted the d epoeit.
A personal account is kept for each deposit. These
personal accounts are re Lec ted in the balance sheet on
account No. 161 "Other current accounts".'
Deposits of private persons may be paid out only by the
State Bank establishment that accepted them, ar may be trans-
ferred, in whole or in part, in the usual manner, to another
State Bank establishment.
Each depositor is given a passbook and a personal account
opened under balance-sheet account ?No. 162 "Deposits of private
persons".
The complete secrecy of personal deposits is guaranteed.
VVhen each operation is carried out, Interest is allowed
on the balance of the deposit for the time since the last op-
eration. The amount of the iz terest and its total from the first
of the year are entered in special columns of the personal account
sheet and the passbook. Interest is paid a a1 , or when the
account is closed. .
I
31E
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CHAPTER VI
_._ Q LOAN PERATIONS
1, THE FORMS OF LOANS
Bank credit is of an entirely concrete and purposeful
character, having a faxed maburi.ty and being repayable, The term
of the credit is determined for each separate loan in accordance
with its specific purpose.
Depending on the character of the objects to be financed by
the bank, the following forms of bank loans (the substantial features
and peculiarities of each form of loan are known to bhe participants
from the course ttOrganization of credit and settlement's, for which
reason we confine ourselves here to their mere enumeration) are
distinguished:
(1) For the seasonal accumulation of material commodity
values.
(2) For expenses connected with the seasonal process of
production.
(3) Against settlement documents in transit.
(Li.) For letters of credit and special accounts.
(5) On current goods turnover.
(6) Advances,
SECURITY FOR BANK LOANS
Cc?
The security for loans is of great significance in granting
special-purpose,` fixed-maturity and repayable credit.
- 317
C:C C?
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STAT
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Most State Bank loans are made against . rnaterial cammodity
of loans by collateral is as a rule effeO"'
values The securing
tuated by 'the farms givif the State Bank a lien on the material-
ty values financed, 1Lhese values usually renmat in the
commoda. g
physical ou$tady of the borrower in trust for the bank The
borrower certifies the existence and Conditian of the collateral
at regular intervals to the bank if the borrowers fall to
liquidate their loans, the State Dank has the right to satisfy
~.
its claims ms out of the value of the collateral by turning to the
proceeds realized from the pledge to liquidate past-due loans.
~.
In State Dank practice the following three forms of pledge
are distinguished: fixed pledge, pledge of revolving; inventories,
pledge of goods in process.
The fru 7ms of pledge depend on the character of the loan and
the nature of the security. A fixed pledge secures a loan by a
~'.fic lot of material goods, which remain in the custody of
spec,
the borrowing firm in trust for the banlc. The borrower has no
right of substitution nor of disposition of the pledged goods
without the consent of the bank.
1ihen revolving inventories are pledged, the borrower has the
right to sell goods pledged, without requiring to bank's per
and substitute other goods for them. In other words,
mission,
the pledged goods are in circulation. The value of the pledged
must not fall below the amount agreed with the
goods, however,
assortment must correspond at all times to that
bank, and the
contractually.a.xranged between bank and borrower,
~8i .If x 1 ~Il~~i . 9 ~ P1~ao ;c 41) f'UInG, !1?~~Y(! Y u5 i ~C 11~~ ~7u ~E '.
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s.1a
~M pled e of goods in process has a
The third form ~
very close resemblance to the pledge of circulating inventories, '
Under this form of pledge, the borrower may use the pledged raw
material, auxiliary mad reriarls and other material values in its
pro duoa.on. A lien is created in favor of the bank on both the
t s
material corn moditY values in the warehouse and production lines
of the borrower and on the finished and semi nished production
obtained.
crea?be the
lien= the firm, on receipt of the loan, de-
r.
1V~ r ts letter oil lien [ instru'n~.nt o F pledge ] to the State
lr a ~. v
Bank in the forms shown below, and also on pages 17L-17~ Cforms
27-2B], accompanied by a statement on the location of the material
~'
? - values thereby pledged (page 173) [Form 26].
eornmodJ.t~'
Form 25 (page 172)
OBLIGATION ON PLEDGE AND S'T'ORAGE OF GOODS [LETTER OF LIEN]
The +tl~ietallist't plant hereby delivers to the Stalinsk
Reg?onal Office of the State Bank, as security for its indebtedness
~.
under the time loan (as per application dumber 12 of 2~ I~pril 19)5),
.
good under the following conditions o
(l) he pledged goods will remain in the borrower's
,
usY.ody the bank. The borrower is obligated to
c~ in trust for execute all dtispasit~ s of the bank with respect to the goads
~.an
it's own dispositions thereof without the
and. has no right to make.
specific authorization of ;the bank;
I or inventory of the pledged goods, showing
~2) A statement o
'
I K' t 7 1
td J>h
I ~ ( Yl
A Y I' { fl GJ
~' .W W 5 1
': i ?S J n 't r r 7
" I f,'r ~1 ?"F"f~r' p, ,: ~ ~ra ~'~~~u`' ~,~ ~t~ y r ~ryGdl~~ Yet a~~r raw+llr ~ndeb'tedness to the bank is carried
firm ng
~,~. ~?da'te past.~ the
to q
the Chairman of the Board o
~on f o~~~.~ on authora.~at. of
n~
To obtain this au'thoriatio the mS,nager o the
Mate Bank. Off i?, a.ce, after first
h~a Regional
dresses himself to , ~
branch ad
vin found a buyer for the goods to be reali~ed? In his
ha g
tier to the Regional he sets forth a7.:1. informa't~Regional Off ~'Ce ' s, to ~t;
1e r the good
decide the question of selling .
riecessary to ' def au1ting ..rms the causes
Financial data on the s~.tuation of the i uidate the
es taken by the bank to ~. q
of the def atL1.'t, the measur
1f takes steps to liquidate
Office itse
debt, etc. T'rie ucg1ane.;L
if it does not succeed w'.~th~.n
the -ss, but ? ~.
the s,stdue indebtedne p 7
five days in uidating the arrears,
it inqu~-res adjusting the question of 1. q
ate Bank Board as to the
of the Chairman of the State
os . goods and materials noted for sale.
sibilit~T of ream-z~.ng the itself is carried out by the
P
he reap-Zation of these values Chairman
~~ t of authorition from the
state Bank branch on rece~.p the Regiona~?
bed through the manager of
af? the Board, transrn? ~.t
Office.
ation, the branch asks the
on receipt of this author ~ the
purchaser to pay for the goods. iay~ent is formalized by
purc of the order is charged
~ tint
amati
maser's payment order. The
credited ed to acCOLl]1t No 210 ttOther
to its"clearing accaunti and ? ~
ou h a detail account of the p
debtors urchaser.
and cred~.tors thr g
this account until the goods
,. SO transferred rernains in
The aTnal).fl~ >J W
J Li
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past due loan.
r) flO
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r U U
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The following entries are made for this purpose:
On payment for the goods, the bank branch gives the pur-
chaser a written offer, in the name of the defaulting firm, for
the innediate sale of the goods to the purchaser. After delivery
of the goods to the purchaser, the amount credited to the account
11Other debtors and creditors't is transferred to liquidate the
Debit account 'Other debtors and creditors, credit account "past
clue indebtedness on short term credits".
If the enforcement extends to unpledged goods, the branch
in its demarche to the Regional Office does not indicate the buyer,
and the sale of such values is made after the receipt of authori-
zation from the chairmen of the board of the State Lank, by the
marshal of the court, pursuant to the legislation in force. The
marshal delivers the goods and materials sold to the purchaser
on receipt of advice from the branch that payment has been made
therefor by the purchaser.
It must be borne in mind that Under no circvnstances is it
possible to sell the property and material commodity values that
are exempt from execution under the legislation now in forcer
For instance, equipment, industrial buildings and structures,
dwelling and operative edifices, raw materials and fuel necessary
.for the operation of the enterprise, cannot be sold. Seed and
agricultural inventory necessary for the fulfillment of the
production plan by the farm involved, or unharvested crops, are
not subject to salee
A special procedure is applied to firms financed against
C:: E;
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00
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:'OAC:'S
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l&J
C COO
CU?
settlement documents in transit. LC the State Bank has de
termined that a supplier is regularly shipping goods to in~
solvent purchasers and fails to take decisive steps to re~
oover their indebtedness from tllem, the. State Bank branch that
serves the supplier warns it that after twenty days it will
refuse to accept bills drawn against habitual, defaulters as
collateral far the loan account. Habitual, defaulters are
kno~m from the data of Schedule B of the collection card file
for non-balance-sheet account No Li.35 "Settlement documents
forwarded for collection", as well as from the investifations
of the suppliers themselves. Purchasing firms that repeatedly
delay their payments by more than 15-2 days are classified
as habitual defaulters.
The bank serving the payers also takes measures to
liquidate the indebtedness of slow payers to suppliers. If
these measures fail to produce the desired results, the payers
bank informs the banks that financed suppliers of such ;pro-'
longed defaults.
faulters.
The bank that finances the suppliers against settlement
documents in transit verifies the bona fide commercial character
of such documents. With this object, the refusals of payers to
accept bills, and the recalls of bills by suppliers, are system-
atically observed and studied. This surveillance over non-
acceptances and recalls is carried on by means of a separate
registration card made out for each supplier, in which are
C)D
Such advices help to show up chronic de-
0
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o;o
Ce ~tance or recall of bills with the
entered all cases of non ac p
reasons
c'.a1 control on the delivery of
The bank sets up a spe a
?~n b f in~s that viala~e the rules for
documents for cal].ect~o Y
f 111anC7.ng and settlements (giving wrong slipping dates, va.olating ''a purchaser, etc.) For instance
1
the conditions of contracts ~~t
ht to demand the production of shipping t
the bank has the rig ' I
" contracts, or other documents
documents, quality cert]..flcates,
by which the bills delivered for c?lleCtiorl may be shown to have
~.l:~.s dela.
been properly drawn.
13hen it uncovers clear abuses on the part of a supplier
with the object of illegall ?y obtaining credit against settlement
docLVnents in transit, the branch holds the guilty persons
" and stops transfer of funds from the loan
criminally responsible account against settlement documents in transit to the suppliers
an extreme measure, the branch may place
clearing account. As
before the Regional Office the question whether credit to the
t settlement document in transit should
firm in question agaa.ns
not be entirely stopped.
The removal of firms from the list of those eligible for
the authorisation either of
credit takes place in all cases on
Board of the State Bank, five days after
the Chairman of the
vine "urisdiction has been notified, if
the p'eople's Comnc.ssar ha ~ J
tharit is concerned, or of the manager
an enterprise under Union au y
o Regional Office of the bank,, five days after the organs of ' the Reg
' ns affected is subjact, if it is of re-
~,der which - the organ~.zata.o
ublic or local subordination.
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ENNT OF LIQUIDATION OF LOAN INEEETEDNESS
i6. ROST PQN
TO THE STATE LANK IN RAYONS LIBERATED FROM THE
GER1~AN OCCUPIERS
the decree No 129 of the SNK USSR of February,
Pursuant to
19L3, all state and cooperative enterprises and organizations in
Rayons liberated from 1 the German occupiers are granted a moratorium
to the State Bank and other creditors, which
an indebtedness,
re the occupation. This mora.tariwn is in force
originated bef o
until further disposition of the SNK USSR.
In connection with this, the State Bank establishments
lrawing funds from the clearing accounts of such
stopped withc ,,
enterprises and organizations in payr?ent of indebtedness that
originated before the occupation.
The recovery of past due indebtedness from enterprises
and organizations may be effectuated only from excess working
~.
excluding indebtedness that originated before the
capital,
occupation.
State Bank establishments transferred all extended
The
ss on short-term credits, for all types of loans, from
indebtedne
the corresponding loan accounts of Section VII of the balance
sheet qtsrhort-.torm credit and settlement operations'' to a newly
balance-sheet account in the same Section: Account No
opened
lbb I1Ex~&ended indebtedness On pre-occupation State Bank loans,"
Overdue loans and overdue interest receivable from the above-
mentioned enterprises and organizations were also transferred to
this account No 166 from Section VIII of the balance-sheet
8 7
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3 00
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"Overdue indebtedness to the bank".
In the analytical accounting of each enterprise and or-
ganization detail accounts were opened to correspond to those on
which that indebtedness was recorded under Sections VII and VIII
of the balance sheet before its transfer to account No 166.
Interest on extended indebtedness is charged quarterly at
the rate charged before maturity, except for items transferred
from account No 222 "Overdue indebtedness on short-term credits",
on which 1aercent, is charged from the day of transfer to account
No 166, instead of 6 percent charged on account No 222.
interest-free basis.
'ci
1Z~~kN. rD~A7'4~y
The interest charged on extended indebtedness of firms
and organizations is debited to the detail account for uncol-
lected interest which is opened for every such customer under
balance-sheet account No 166, and is credited to account No
28 "Interest accrued on extended pre-occupation indebtedness.'
No interest is charged on the detail accounts of uncollected
interest under balance-sheet account No 166.
Customers' notes for extended indebtedness are recorded
on the non-balance-sheet accounts No ?L.O2 '!Notes on short-term
credits" and No 11.OL~ "Collateral for special loan accountstt.
Such notes are kept in a special card-file.
'
~;ypayds
3yflshryby~l~ ~I
Interest is not charged on loans which were made on an
'-
'C! , A
?i . I r
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 h?~d
f61S',
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When collection of overdue indebtedness is resumed on the
instructions of the SNK USSR, all the notes previously given by
a customer will be exchanged for a single demand note in the total
amount of the extended indebtedness and extended interest.
Indebtedness subject to extension on balance sheet account
No 200 "Loans for various purposes't is not transferred to balance
sheet account No 166, but postponement of collection is noted on
the detail account sheets under account No 200.
Indebtedness to the bank which is carried on balance-sheet
account No 600 "Indebtedness of enterprises, Narkomaty, government
departments and organizations" (in Section XXVIII of the balance
sheet "Settlements for operations in State Bank establishments
where accounting records have not been preserved, owing to the
ware) are transferred to balance-sheet account No 166 on appli-
cation of the borrowers.
s
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Bc'
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STAT
r'
CEJ PTt VII
INTER.BRNCHsETT-Ec
1. INTER-BRANCH SETTLEMENTS AND THEIR MEANING
' Inter'-branch settlements are mutual, settlements between two
blishments of the bank, both of which have complete balance
I seta
4 They originate primarily in connection with the execution
sheets.
v
i b the bank of its clients' out-of-town commissions.
y;
Inter branch settlements make it possible for the bank to
exercise the functions of the sole clearing center of the country,
all free funds, regulating the currency circulation
by accnrnulating
and executing the cash aspects of the state budget.
Y;G
important most operations performed through the inter-'
T; The
branch tran rs F07 are as follows: Receiving payment and trans-
sf e
f erring it to an out-of-town supplier, paying a supplier on a letter
l;.
of credit for an out-of -town buyer, transf erring funds of a firm to
k
,
F
other cities, collections for social insv.rance, state budget, trade
unions, Nks azi, NKPS, and savings banks, distribution of funds for
~' .
construction, settlanents for replenishments of the cash supplies of
1
F
,f a bank and for withdrawal of excess cash from its cash supplies, and,
,
fina11Y, accumulating the profits of the bank itself. It is clear
'
that the MFO accounts are used primarily to hold
t from the foregoing
~temporarily those funds of bank clients that have arrived at certain
oint$ and have not yet been credited to accounts at other points
p
sit) s and that the interrelations between the branches
~ amounts in transit)
andthe Head Office with respect to decentralized resources (funds of
.
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the bank and note circulation) are adjustsd through the U?O accounts,
as are these interrelations with respect to the redistribution of
funds within the State Bank system.
The correct organizations and accounting of inter-branch
transfers is of great importance both for the bank and - what is
still more important -- for the entire national economy served by
the bank. A badly installed system of document circulation, or
unsatisfactory accounting and control for inter-branch transfers
an
unavoidably delays the delivery of their funds to the clients and
M
inaccurate crediting of funds to their accomnts. This is
involves
unavoidably
reflected in the financial condition of the firms, and, in the last analysis, results in losses to the bank. Inefficient
accounting and control of inter-branch transfers considerably in-"
creases the opportunities for abuses.
There are always two branches that participate in inter--branch
ansfers: One of them initiates the operation, let us assume for
tr
that it receives payment and credits it to the account
instance,
tIMFO initiated" and makes the initial entry on MFO- The. other
branch responds to the first one and makes the contra entry by
debiting the account 'FO Contra". A special document, the advice,
is used as a posting medium for this Contra entry to the 1O accounts.
The advice he branch that initiates the operation ( for
~.~i~ent by t
instance by the supplier's bank), to the branch that makes the contra
entry (the bank serving the s'gyplier or, in general, the payee).
An inter branch transfer which is credited in one branch is thus
reflectedIn the other (contra) branch as a debit to the mutual
settlement accounts, and conversely. Since the initial and contra
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M
6
~" c T
; .
t
i
~i ssu' 4
C'1
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0
rio
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entries are made at different times and in diff erant places, es
pecia11y careful control over the agreement of the MFO entries in
the two branches.
The scrutiny and verification of the identity between initial
and contra entries is called reconciliation, ~vitovk~ and the difw
ferent method of organizing it distinguish the various systems of
MFO accounting.
Before taking up these systems of accounting, we shall still
dwell on the importance of the accounts reflecting inter-'branch
transfers in the balance-'sheets of the individual brances and in the
consolidated balance sheet of the bank. For each individual branch,
inter branch transfers may represent either a source of funds or a
investment of them, since each branch, in its interrelations with
other branches, pays out and receives various amounts on their account.
If the payments exceed the receipts, then the inter-branch
transfers, resulting as they do in a net withdrawal of funds from
the branch, are shorn in the resources. If, on the other hand, the
receipts for the accounts of other branches exceed such payments,
then the inter-branch transfers will serve as a source of funds for
the branch, Not only do the resources or liability balances on MFO
account differ among different branches, but even in the same branch,
the character of the balances on these accounts may change from tune
to time, depending on the economics of the Rayon served by the branch.
The accounts that reflect interbranch transfers are alternative
ly resource, or liability. The balances of the detail MFO accounts
make the control account in the balance sheet of the individual
branch either resource or liability. These are just as real
00
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Each branch is assigned its ourn five-digit transit number by the
A w~ , i? wyv, ~yKq r I~ ~~ ~Y)~>v ~~y?~JIJY ~l~rCj~
7Aa ~Y6, ., fI ~.'I+~~ir~ r~~~~r~,rN'~11~rMY ~,.,4 ~~18, r~: 1~. I~$I~rh iN ~5Fth9 ,. ~L~Se~~~4Pl:Y ~`a ,!i ~ s .k: d >?~ ~ ~ ro~~,
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component parts of the balance sheet as the other asset arid 1ia.
bait items, and can therefore not be omitted. In th4 consolidated
b 1anca sheet of the bank however, which includes all of its es-
ishments (the Head Office and all branches), when all orders of
tab/
the single branches have been received and executed by other branches,
balances of the MFO accounts must be equal on asset and liability
the
sides, mutually balancing each other and forming an internal balance,
When the resources and liability balances oI the MFO account in the
consolidated balance sheet are equal, they may be completely excluded,
without disturbing the equilibrium, since they have no real meaning.
In this case, the shrnv only the anounts redistributed within the
they
State Bank system, but represent neither withdrawal nor placement
of the funds which are completely reflected by the other items of
the balance sheet. In view of the.fact, however, that there are
always MO items in transit as items entered only by the initiating
branch are termed, there is always some discrepancy between the
balances of the M'0 resources and liability accounts in the consol-
idated balance sheet. This discrepancy is usually an exaggeration
of the liability side and shows the amount of the funds actually
employed in IMO.
The branch initiating an MFO transaction is conventionally termed
the A branch, while the branch executing the order of another branch
acts
is termed the B branch. Obviously each branch ' v~.n different cases
as either an A branch or B branch. But for the sake of greater
clarity we shall consider r separately the ' initial and contra turnovers
in the mutual. settlements between branches.
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v
b"11" t~1 ~4~IP~g1I~1 ~tdt- CIC+ ~r?'ls.~~
d~lr~r a~llet ('r/r~
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period -when it was in use, the interbranoh transfers were never
reconciled even during a single year.
A decentralized recornoiliation is also possible. Under it,
each branch on receiving from the contra branch a confirmation of
the advice sent to it, reconciles its own initial entries and
make sure that they have been correctly reflected by the other
branch. The positive side of this system lies in the fact that
operation and reconciliation are brought close together, in the
branches' interest in the accurate execution of their orders and,
finally, in the distribution among all the branches of the large
amount of work involved in their reconciliation. But it also has
its negative sides: Since the work of reconciliation is scattered
over the whole network, the possibility of using the prevailing
great productivity of machines is excluded; the disagreement of
the amounts is likewise scattered, and this exceedingly hinders and
delays their adjustment. It is for this reason that this system,
used for a short time by the State Bank also failed to yield a
satisfactory result.
0
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a ~ ? c o
THE PRINCIPLES OF THE CURRENT MFO SYST1 (
and contra interbranch transfers.
ha s system coneists in the011o1~ring
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Declassified in Part - Sanitized Cor v Approved for Release 2012/03/28 : CIA-RDP82 00039R000200060027-5
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
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From the receipt and deliver documents for the nonbalance
sheet accounts he deter ifles the balances of the several valuables
for the following day and enters them in the vault book:
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I
3. TIE VAULT
Funds of the reserve and fractional currency stocks, union
dues, stainps, checkbooks, shipments of foreign currency and precious
metals and the like, are accepted, and delivered by the vault only
on vritten:orders of the operations brigades or the chief book-
keeper.
To facilitate, audit of the vault operations, the valuables
and money kept in it are arranged by the balance sheet and none
balance sheet accounts on which they are recorded. On the envelopes,
r ,
packages, boxes with valuables and money, it is precisely noted
r
what valuables they contains and in what amount, together with
day, month, year, signature ofrthe,cash office employee responsible
for the valuables, and the number of the balance sheet or non-
balance sheet account that controls them. The packages of currency
made up by the bank establishment, each containing 1,000 bills, and
,, .
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axei,Yil
(or their parts and counterfoils), are subjected to a control
(duplicate) recount.
Some valuables are recorded by quantity, in the vault, instead
. of in monetary terms; others are recorded at arbitrary values; and.
still a third category is recorded both by quantity and value. Thus
the precious metals are recorded by weight and assay, without conversion
rV
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h ~ ,ail( a r..,!J,I~ d ~1 j~t ~ I~ p ?4ft"~a ~~ ~' s~ } rr~ s v4t~~{
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
C,
into monetary terms, and foreign currency in their respective
W)its (dollars, pounds, francs) vdthout conversion into their
equivalents in Soviet currency. The quantitative . accomiting for
foreign currency and precious metals is due to the fact that the
cash office enp1oyeeS are responsible for the complete intacthess
of these valuables 'jthout reference to their balance sheet
(monetary) valuation. Checkbooks and trust receipts of clients
are carried at the arbitrary valuations of 1 ruble per piece.
All documents on bich the vault and operational cash offices
have carried out transactions during the day remain in the vault.
They are collected and bound together into a packet by a tape
passed through holes in them, and the number of pieces and total
amoint is shown on the cover. Documents relating to adniniStratiVe
and management expense, capital constructi on of the bank, and
foreign operations, are bound together into three separate packages
to facilitate the control and documentary audit of these operations.
C
.C C. Valuable mail is dispatched and received by a cash office
employee. Valuables are shipped on orders of the operations
; I sections or f the bookkeeper's office, together th the btached
o schedules, The valuables are delivered tothe post office with a
duplicate list, one copy of which is receipted by the postoffice.
Precious metals, foreign currency and money are forwarded through
the bank's groups for collection andtx'anSpOrtpf valuables.
. Postal notices of the ariva1 of mail containing valuables
addressed to the bank are entered by the bookkeeper's office in a
4)
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ified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R0002000
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
special book for registration of postal notices. The cash offics
employee detailed to accept mail at the post office is given a
separate authorization for each time, The operations brigade or
the head bookkeeper draw up the additions posting order on which
valuables are taken into the vault. The number and date of the
additions posting order are noted on the schedules or inventories
and covering statements.
4. THE CASH BOOK AND THE VAULT REGISTERS
The State Bank strictly distinguishes the turnover cash, or
cash on hand, from the reserve currency stocks. Cash on hand means
the cash assigned for transactions with the clientele served by the
bank. The movement of cash on hand is reflected on the balance
0
sheet on account No 18 "Cash", for which the cash book is kept,
showing the total daily receipts and disbursement of cash, together
with the number of documents and the balance of cash on hand carried
. forward, giving not only its grand total in words and figures, but
also broken down by forms of money. The accuracy of the balance is
certified by the signatures of the manager, chief bookkeeper and
senior cashier.
The method of keeping the cash book may be seen from the
fallowing example: in a certain branch, the cash balance on 3 October
was 20,30)4 rubles 80 kopeks.
In the certificate: of the operational cash offices, the
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060027-5
transactions for 3 October were expressed as follows: