Basic Documents and
Transactions for Bank
Deposits
Learning objectives
1. Identify the types of bank accounts normally maintained by a
business;
2. Distinguish the difference of the types of bank accounts;
3. Differentiate bank’s deposits and withdrawal slips;
4. Discuss the preparation of check
5. Prepare bank deposits, withdrawal slips and checks
Name the bank
A bank account is a record of a bank’s
client, set up by the bank, where
transactions between the bank and the client
are recorded.
What do you think are the reasons why people
open a Bank Account?
Savings
Safekeeping
Investment
Common Types of
Bank Accounts
SAVINGS ACCOUNT
• The simplest bank account
• Save money
• Ideally use for personal/employees
• The account earns minimal interest and may have a minimum
balance requirement
Passbook – is a booklet used to record ATM Card – are used for making transactions in
bank transactions on a savings account. Automated Teller Machines (ATM). Some ATM cards also
functions as debit cards.
It contains a chronological record of Debit Cards – are linked with the VISA or Mastercard
deposits, withdrawals and networks that allow depositors to use their cards to
interest earnings. make payments in various establishments.
CHECKING or CURRENT ACCOUNT
• the depositor can issue bank checks
• Facilitate financial transactions
• Employer/business
• Rarely earn interest
Bank checks
• is an acceptable form of payments
• allows depositors to pay large sums using one sheet of paper instead of
carrying currencies.
• payee can be specifically named such that no other person or entity
can use it
• a check can be “crossed” or “restricted for payee’s account only”.
TIME DEPOSITS AND OTHER INVESTMENT ACCOUNTS
Time Deposit
• are investment placements.
• depositor agrees not to withdraw the funds over the
contracted period in exchange for fixed interest rates that are
higher than deposit rates.
• evidenced by certificates of time deposits (CTD)
NAME THE ACCOUNTS!
1. Anton has a bank account at Landbank of the Philippines that
enable him to issue bank checks.
2. The account maintained by Boy at BDO is known to be the simplest
bank account and is linked with a passbook.
3. The account of AJ in Allied Bank is also known as current account.
4. The account of Jan Rey at WestBank allows him to pay large sums
using one sheet of paper instead of carrying currencies.
5. Your friend, Faith show you her certificate of time deposit (CTD) as
evidence of her account in DBP.
Bank Deposit and
Withdrawal Slips
DEPOSIT SLIP – use by the depositor to put money in bank
The usually required information in a deposit slip
are:
1. Date of Deposit
2. Account Name
3. Account Number
4. Type of Account
5. Currency
6. Amount in words and in
figures
7. Details/Breakdown
DEPOSIT SLIP
Two kinds of deposit slip:
• check deposit - the depositor will indicate the amount of the check,
check number and issuing bank.
• cash deposits - the depositor is required to indicate the
denomination of the cash
• The depositor may or may not be the account holder
• A bank deposit 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.
Example:
ABM Company made two deposits on May 18, 2020 in its Co-Vac
Bank Checking or Current Account with account number
000123455589. One was a cash deposit for P55,000 composed of 35
pieces of P1,000 bill and 40 pieces of P500 bill. The second deposit
was for P580,761.82 composed of two checks issued by BDO and
Metrobank.
ABM
ABM
WITHDRAWAL SLIP- is a written order to the bank, used by account holders
to get money from his/her bank account.
The required information in the withdrawal slip are:
1. Date of Withdrawal
2. Account Name
3. Account Number
4. Type of account
5. Currency
6. Amount to be withdrawn
(in words and figures)
7. Signature of depositor
ABM Company made a withdrawal of P105,055
from his savings account (SA#000123455592) at Co-
Vac Bank.
ABM
Preparation of Checks
What is a check?
• 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 check has
been issued.
• 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 following are the parties involved in a transaction that uses check as medium
of exchange:
• Drawer/Maker, the person or entity who makes the check
• Payee, the recipient of the money
• Drawee/payer, the bank or other financial institution where the check can be
presented for payment.
HOW TO WRITE CENTS
Amount in Figures Amount in Words
100.15 One Hundred and 15/100
3,400.25 Three Thousand Four
Hundred and
25/100
2,300.50 Two Thousand Three
Hundred and
50/100
CROSS CHECK
• marked to specify an instruction about the way it is to be redeemed
(must be deposited directly into an account of the payee)
• usually done by writing two parallel lines on the upper left portion of
the check.
• cannot be encashed over the counter by the payee. It should be
deposited to the payees account.
STALE CHECK
• A check which a bank will
not accept and exchange
for money or payment
• if it exceeds 6 months from
the date of the check.
POST-DATED CHECK
✓A check that is dated at a future date.
BOUNCING CHECK
✓A check that cannot be honored by the bank because the drawer
has no sufficient funds to cover the amount of the check.
Points to remember
• If there is any erasure in a check, the check will not be
accepted by the bank. The erasures should be signed by
the drawer.
• Companies issue checks due to the following:
• Payment of debts
• Gifts
• Payment of supplies
• Payment of electric bills
• Do not forget to sign the check.
