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Learn about checking accounts, deposit slips, endorsements, and bank reconciliations to manage your finances effectively. Understand service charges, dishonored checks, EFT, and petty cash handling.
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Chapter 5 Cash Control Systems
Checking Account • Deposit Slip • Check Stub • Endorsements
Checking Account Deposit Slip Check Stub Endorsements
Whenever you have a deposit you have to fill it out also in your Checkbook so that things may stay in balance. Please look at page 120 in your textbook
Checking Account Deposit Slip Check Stub Endorsements Three types of endorsements examples page 120 Blank Endorsement Only the endorsers signature Special Endorsement Pay to the order of Restrictive Endorsements Limits the use of the check to whatever purpose is stated in the endorsement
Bank Statement A financial form that tell you about What is happening in your account and gives you a balance. Back
You get this from checkbook This is the balance on Bank statement Deposit that have not shown up Any charges the bank Charges you ATM etc Bank service charges Checks you have written but not shown up This total = This total
Bank Service Charge • Banks occasionally charge you for doing things at their bank this is one of the instances. • Three places it has to be placed in order to make sure things are correct. • Bank Check Stub • Bank Reconciliation • Journalized as a Miscellaneous Expense
Service Charge 3.00 3.00 The amount of the service charge has to be written in on the Check Stub
Service Charge 3.00 3.00 It also needs to be written in on the bank reconcilliation
Lets try the On your own page 128
Dishonored Check • When a check is written but there is not enough money in the bank to cash the check. • It is also recorded in the Check Stub Dishonored Check
Nov. 29 Received notice from the bank of a dishonored check from Learn N Play$35.00, plus $15.00 fee total, $50.00 Memo 55 We have to write back on the Accounts Receivable and take the check that we received out of cash
Other methods of paying and receiving cash • Electronic Funds Transfer • EFT – automatically placed into your account • Debit Card • Automatically deducted from your account
Part 3 • Petty Cash • Is extra cash that we leave to someone to use for small items or items in case of emergency…….
Creation of the petty cash fund. • We need to show that we took money out of our larger cash account and did something else with it.
Petty Cash Drawer $200 Petty Cash Slip 2.00 Supplies Petty Cash Slip 4.00 Misc Petty Cash Slip 5.00 Supplies End of the month we find that: Supplies $7.00 Misc 2.00 Total of 9.00 So in our cash drawer we should $191 We have to replenish the drawer With the money missing.
