Checking Account Documents

OBJECTIVE: 7.05 Demonstrate accuracy in the following areas: a. Opening a personal checking/savings account.

b. Making a bank deposit.

c. Withdrawing funds.

d. Writing and endorsing checks.

e. Maintaining a check register.

f. Reconciling a bank statement.

Principles of Business and Personal Finance J. Priode 2010©

Checking Account Documents

• • Click on any of the following documents to view the information.

Go back to the lesson when finished.

Check Endorsements

Opening an Account

Deposit Slip

Check Register

Withdrawal Slip

Next

Writing a Check

Checking Account Reconciliation

Opening an Account

• • • Each authorized user of the account must complete a signature card.

The name on the card should be the signature used on all account transactions.

This helps detect unauthorized use of the account.

Back

Deposit Slip

 A deposit slip must accompany each deposit.

 The depositor's name, account number, and the date must be on the deposit slip.

 Currency, coins and checks must be listed separately.

 Checks should be identified by the ABA number.

 The total must be written.

Back

Withdrawal Slip

• • • • • • A withdrawal slip must be completed when withdrawing funds from a savings account.

The completed form contains the: Date Account number Amount withdrawn Signature of the account holder Back

Writing a Check

• • • Checks should be written legibly in blue or black ink .

Always sign checks exactly as you signed the signature card .

Always complete the check register before writing the check.

Back

Check Endorsements

• • • Endorsements allow the payee to cash the check, deposit the check, or transfer payment of the check to someone else.

Endorsements are proof that the payee cashed the check or transferred payment to someone else.

The endorser guarantees payment of the check if the new owner of the check cannot collect payment.

Back

      

Check Register

The check register should be completed before check so you don’t forget to record the check.

writing the Record the check number and the date.

Record the payee’s name and the purpose of the check.

Enter the amount of the payment or withdrawal (ATM) OR enter the amount of the deposit.

Record the new balance.

Subtract checks and withdrawals from the previous balance.

Back Add deposits to the previous balance.

Checking Account Reconciliation

 When the bank statement arrives, compare the canceled checks listed on the statement with your checkbook register to determine which checks are

outstanding

.

 Also check the bank statement for any deposits which may be

outstanding

.

 Check for ATM withdrawals which you might not have recorded.

Back

 Determine if you were charged a service charge or if you earned interest on your

The End

• • You have now completed the brief overview of the checking account documents.

Please return to the wiki and continue the lesson.