Basic Documents and

Transactions
Related to Bank
Deposits
 Objectives of the Lesson
identify the types of bank accounts normally
maintained by a business
differentiate a savings account from a current
or checking account
will be able to prepare bank deposit and
withdrawal slips
identify and prepare checks
 Savings Accounts
 The simplest bank account.
 The account earns minimal interest and may have a
minimum balance requirement.
 These are intended to provide an incentive for the d
epositor to save money.
 The depositor can make deposits and withdrawals u
sing the form provided by the bank. Some savings a
ccounts have a passbook, it is a booklet used to rec
ord bank transactions on a savings account.

A passbook contains a chronological record of deposi

ts, withdrawals and interest earnings. Some savings
accounts charge a fee if the balance falls below a sp
ecified minimum or minimum balance requirement.
 TYPES OF SAVING ACCOUNT

Time Deposit Account (or a certificate of dep

osit account)
A type of a savings account that is held for
a fixed-term and can be withdrawn only aft
er the lapse of the agreed period and by gi
ving notice to the bank.
 The account may be withdrawn also a
nytime however the bank usually charges
penalties.
 This type of account yield high interes
t.
ATM (Automated TellerMachine) account
Withdrawals can be made throug
h designated machines. This is a
24 hour teller machine and the fun
ds can be withdrawn anytime.
The advantage of this account is
that even if the banks are closed,
you can withdraw your funds.
Checking or Current Accounts

 A checking account is like a savings account

with added feature -- the depositor can issue a
bank checks.
 Bank check is an acceptable form of payment. It
allows depositors to pay large sums using one
sheet of paper instead of carrying currencies. It
also provide additional control feature that
prevent misappropriation of cash. A check can
be “crossed” or “restricted for payee’s account
only”. This means that the check will only be
accepted for deposit to the payee’s bank
account and cannot be encashed over the
counter.
 The depositor is given easy access to the funds
as compared to a savings account.
 BANK FORMS

There is a corresponding bank form fo

r almost every transaction with the b
ank. Take for example the opening of
a bank account. The forms to be fille
d and signed are numerous. There ar
e account opening forms, signature c
ards, investor suitability forms and in
demnity forms.
 DEPOSIT SLIP
 Deposit Slip documents the deposit transaction. It is
a bank form filled up by the depositor. The depositor
will indicate the account name as well as the
account number. There are two kinds of deposit slip,
namely cash deposit slip and check deposit slip. For
check deposit, the depositor will indicate the amount
of the check, check number, and issuing bank. The
depositor is required to indicate the denomination of
the cash deposits.
 A bank deposit slip is validated by the teller that
accepts the deposit. A validation is a receipt printed
on the deposit slip to signify that the deposit was
received by the bank. The depositor should filr the
validated deposit slip in case there are
discrepancies in the depositor and bank’s records.
The usually required information in a deposit sl
ip are:
• Account Name – this is the complete name of the dep
ositor that is reflected in the records of the bank. If it
has a pass book, the account name is indicated on fi
rst page inside the passbook.
• Account Number – this is a unique identifier of the ac
count maintained by the depositor.
• Date of Deposit
• Type of Account
• Currency
• Amount in words and in figures – the amount that the
depositor wishes to put into his account. The amount t
o be deposited maybe in form of cash or check. If it is a cash d
eposit, the breakdown of the cash is usually listed in the deposi
t slip if it is a check deposit, the details of the checks are indica
ted in the deposit slip, for example: IssuingBank, Address of th
e Issuing Bank, date of the check and the amount.
WITHDRAWAL SLIP

Withdrawal slip documents the withdrawal

from a passbook account. It is a bank form filled
up by the account holder. These slips are used t
o take out money or to put in money to the depo
sitors account.
Unlike in deposit transactions, only the acc
ounrt holder may withdraw from his account. Th
erefore, the signature of the account holder is re
quired in the withdrawal slip. The bank will only
release the funds after verifying the authenticity
of the account holder’s signature.
The required information in the withdrawal slip are:
• Account Name - the name of the depositor
• Account Number – the unique identifier given by the bank for
every account maintained
• Date of the withdrawal
• Type of account - savings or current
• Currency
• Amount to be withdrawn - the amount that the depositor
wishes to withdraw from his account.
The amounts in words and in figures are indicated.
• Signature of the Depositor – this is the most important part
in the withdrawal slip. The
signature is a proof that the depositor is authorizing the bank to
get money from his account. Usually, the bank compares
the signature in the withdrawal slip against the signature in
the bank records submitted during the opening of the
account.
There are instances that the depositor cannot attend
personally to withdraw the funds, he may authorize a
representative by indicating the name of the
representative in the space provided and the
representative must sign. There is a need for the
representative to bring a valid identification card upon
withdrawal otherwise the bank will not approval the
withdrawal.
Upon release of the funds, the bank officer or the teller will
again require the account holder to sign on the
“received by” portion of the withdrawal slip. This will
signify that the account holder has received the correct
amount of money as indicated in his withdrawal slip.
A withdrawal slip is used only for passbook savings
account. A checking account holder is not allowed to
make withdrawals through a withdrawal slip. A purely
ATM account holder is required to use the machine and
cannot withdraw over the counter.
Bank Check
A check is a document that orders a bank to pay a specific
amount of money from a person's account to the person in
whose name the cheque
has been issued. The person writing the cheque, the drawer,
has a transaction banking account where his money is held.
The drawer writes the
various details including the monetary amount, date, and a
payee on the cheque, and signs it, ordering his bank, known
as the drawee, to pay
that person or company the amount of money stated.Checks
are a type of bill of exchange and were developed as a way
to make payments
without the need to carry large amounts of money. The check
number is usually indicated in the upper right portion of the
check.
Bank Check
• The following are the parties involved in a
transaction that uses check as medium of
exchange:
• • Drawer, the person or entity who makes the
check
• • Payee, the recipient of the money
• • Drawee, the bank or other financial
institution where the cheque can be
presented for payment
• Cross Check
• It is marked to specify an instruction about the
way it is to be redeemed. A common
instruction is to
• specify that it must be deposited directly into
an account of the payee. It is usually done by
writing two
• parallel lines on the upper left portion of the
check. A cross check cannot be encashed
over the counter
• by the payee. It should be deposited to the
payees account.
• Stale Check
• A cheque which a bank will not accept and
exchange for money or payment because it
was written
• more than a certain number of months ago. In
the Philippines a check becomes stale if it
exceed 6
• months from the date of the check.
Identify and understand the contents of
a bank statement
At the end of every month, the bank
furnishes a statement to the
depositor showing the movement of
the account. It contain all the
withdrawals, deposits and balance of
your account after every transaction.
It may also indicate bank charges that
were deducted by the bank
automatically. Also, interest earned by
the account is likewise reflected.
A check is a document that orders a bank to pay a specific amount of
money from a person's account to the person in whose name the
cheque has been issued. The person writing the cheque, the
drawer,
has a transaction banking account where his money is held. The
drawer writes the various details including the monetary amount,
date, and a payee on the cheque, and signs it, ordering his bank,
known as the drawee, to pay that person or company the amount of
money stated. The following are the parties involved in a transaction
that uses check as medium of exchange:
• Drawer, the person or entity who makes the check
• Payee, the recipient of the money
• Drawee, the bank or other financial institution where the cheque can
be presented for payment
Kinds of Bank Checks

1.Personal Checks
are issued by persons, a single depisitor or holders of
joint accounts.

2.Corporate Check
is issued by a corporation. It is seen more secure than
a personal check.

3.Manager's Check or MC
is issued by the bank on behalf of the client. This is ta
ken the most secure among the three kinds of checks becau
se it is backed up by the gurantee of the issuing bank. An M
C is needed if the payer does not have a cheking account or
if the payee specifically requires an MC payment. It is purcha
sed from a bank. The bank may get the payment from the bu
yer’s account or paid over the counter.
• What will happen if there are any erasures
in the check?
The check will not be accepted by the bank.
The erasures should be signed by the dra
wer.
 Bank Statement
Bank Statement is a detailed transaction history of
the account over the reporting period. It is
reported by the bank for those accounts that do
not have passbooks. The statement informs the
account holders of all transactions that occur
during the reporting period. It contain all the
withdrawals, deposits and balance of your
account after every transaction. It may also
indicate bank charges that were deducted by the
bank automatically. Also, interest earned by the
account is likewise reflected. The bank statement
is usually sent by the bank through courier
services together with the debit and credit memos
and the cancelled checks. Most big banks provide
account holders access to their statements
through their online banking facilities.
The bank statement shows the beginning balance,
additions, deductions, and the
balance at the end of the period. This statement is
issued by the bank to all its depositors and is
usually
done on a monthly basis. The bank statement helps the
depositor in documenting and monitoring the
movements on his bank account. This will also serve
as the basis in the preparation of bank
reconciliation statement, wherein the records of the
bank are compared with records of the depositor.
Any discrepancies between the two records can be
properly addressed and corrected.