Series 27: Trial Balance, Aggregate Indebtedness, And Net Capital Records

Taken from our Series 27 Online Guide

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Trial Balance, Aggregate Indebtedness, and Net Capital Records

The trial balance is a statement of the open debit or credit balance of all ledger accounts. It must be prepared at least monthly and no later than ten business days after the end of the accounting period.

Along with the trial balance, broker-dealers must prepare records that calculate their net capital and aggregate indebtedness. The SEC requires broker-dealers to carry a minimum amount of capital as a protection for customers against insolvent firms. These net capital requirements vary with the size of a firm’s aggregate indebtedness. The greater the indebtedness, the greater the required net capital. The trial balance is a necessary tool in updating the aggregate indebtedness and net capital reports, all of which are prepared concurrently.

Required Record

Required Posting Date

Blotters

General Blotter

One business day after activity

Trade Blotter

One business day following trade date

Ledgers

General Ledger

At least monthly but must be kept current

Customer Ledger

For purchases or sales, the settlement date

For securities movements, one business day after activity

Securities Ledger

Must be recorded on a current basis

Securities in Transfer

One business day after the date of transfer

Dividends and interest

One business day after activity or payable date
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