Checking AccountDocuments

Checking AccountDocuments

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.

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 FinanceJ. Priode 2010©

Principles of Business and Personal FinanceJ. Priode 2010©

Checking Account Documents

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

• Go back to the lesson when finished.

Opening an Opening an AccountAccount

DepositDepositSlipSlip

CheckingCheckingAccountAccount

ReconciliatiReconciliationon

CheckCheckRegisterRegister

WithdrawWithdrawalal

SlipSlip

WritingWritingaa

CheckCheck

CheckCheckEndorsementEndorsement

ss

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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.

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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. BackBack

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• Amount withdrawn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 BackBack

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.

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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.

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Check Register The check register should be completed before writing the

check so you don’t forget to record the check.

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.

Add deposits to the previous balance. BackBack

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.

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

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The End

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

• Please return to the wiki and continue the lesson.