Checking
Accounts
Ginny Kownurko
Table of Contents
Checking Account
Deposit Slip
Endorsements
Check Stub
Deposit Slip Exercise
Checking Account Exercise
Bank Statement
Reconciliation
Reconciliation Exercise
Check
Abusiness form ordering a
bank to pay cash from a
bank account
Checking Account
Abank account from
which payments can be
ordered by a depositor
Checking Account
Enables depositors to
write checks rather than
pay bills in cash
Checking Account
ABA
Number
Deposit Slip
Abank customer prepares
a deposit slip each time
cash or checks are placed
in a bank account
Deposit Slip
Checks are listed on a
deposit slip according to
the bank ABA number on
each check
Deposit Slip
ABA
Number
Endorsement
Ownership of a check can
be transferred
A signature or stamp on
the back of a check
transferring ownership
Endorsements
Three types:
Blank
Special
Restrictive
Blank Endorsement
Anendorsement
consisting only of the
endorser’s signature
Blank Endorsement
check is blank endorsed
If
and lost or stolen, anyone
can cash it
Blank Endorsement
Onlyblank endorse when
in bank and ready to cash
or deposit check
Blank Endorsement
Endorse here
X Bob
_______________________
Denitzio
_________________________
_________________________
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
Reserved for Financial Institution Use
Special Endorsement
Anendorsement indicating
a new owner of a check
Special Endorsement
Includethe words “Pay to
the order of” and the
name of the new check
owner
Special Endorsement
Endorse here
X Pay to the
Bucher
Beth of
__________________________
order
___
Bob Denitzio
_________________________
_________________________
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
Reserved for Financial Institution Use
Restrictive Endorsement
An endorsement
restricting further transfer
of a check’s ownership
Restrictive Endorsement
Limitsuse of check to
whatever purpose is
stated in endorsement
“For Deposit Only”
Restrictive Endorsement
Prevents unauthorized
persons from cashing
check if lost or stolen
Restrictive Endorsement
Endorse here
X For deposit only
_______________________
PIANO MAN MUSIC
_________________________
Bob Denitzio
_________________________
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
Reserved for Financial Institution Use
Check Stub
Arecord of each check
written for a cash
payment transaction
Check Stub
Avoidforgetting to
prepare the check stub, fill
out prior to writing check
Check Stub
Deposit Slip
try filling out a
Let’s
deposit slip
Clickbutton to access
deposit slip
Checking Account
Let’s try filling out a check
stub and a check
Click button to access
check stub and check
Bank Statement
A report of deposits,
withdrawals, and bank
balances sent to a
depositor by a bank
Bank Statement
Bank receives checks
written from your account
Amount is deducted from
your account
•Canceled check
Bank Statement
Outstanding checks
Youwrote the check but it
hasn’t been deposited by
the owner yet
•Bank doesn’t
know about it
Bank Statement
Outstanding deposits
You made a deposit, but it
is not on the bank
statement
•Deposit made on the day the
statement was mailed
Bank Statement
Service Charge
Bankwithdraws directly
from your account
•You do not write a check
•Listed on bank statement
Bank Statement
Banksseldom make
mistakes, but…
Occasionally a check or
deposit may be recorded to
a wrong account
Verify statements accuracy!
Bank Statement
Check Register
You know but the bank doesn’t!
Outstanding Deposits
•8/15/-- $108.00
•8/31/-- $290.00
Outstanding Checks
•C12 $12.00
•C13 $500.00
•C14 $54.00
Bank Reconciliation
Bank’s record and
depositor’s records may
differ
Following are some of the
reasons
Bank Reconciliation
Differences:
Bank service charge not
recorded in your checkbook
Outstanding deposits
recorded in your checkbook
but not on bank statement
Bank Reconciliation
Differences:
Outstanding checks
recorded in your checkbook
but not on bank statement
Depositor may have made a
math or recording error
Bank Reconciliation
Reconcileby verifying the
bank statement and
checkbook are in
agreement
Bank Reconciliation
Canceled checks (or
copies) are returned with
statement
Place a checkmark on
check stub for returned
checks
Bank Reconciliation
Check mark on check stub
for returned checks
Checkstub with no check
mark = outstanding check
•You know about it, but the
bank doesn’t
Bank Reconciliation
Check mark on check stub
for deposits on statement
Checkstub with no check
mark = outstanding deposit
•You know about it, but the
bank doesn’t
Bank Reconciliation
Charge on bank
Service
statement
Deductfrom your checking
account
•Bank knows about it, but you
don’t
Bank Reconciliation
Bank Reconciliation
Let’s try filling out a bank
reconciliation form
Click button to access
bank reconciliation form
More Information
TD Bank
http://www.commercewow
zone.com/wowzone.asp
The End
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