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.
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Required Record |
Required Posting Date |
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Blotters |
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General Blotter |
One business day after activity |
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Trade Blotter |
One business day following trade date |
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Ledgers |
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General Ledger |
At least monthly but must be kept current |
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Customer Ledger |
For purchases or sales, the settlement date For securities movements, one business day after activity |
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Securities Ledger |
Must be recorded on a current basis |
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Securities in Transfer |
One business day after the date of transfer |
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Dividends and interest |
One business day after activity or payable date |
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Securities borrow |