copyright ©2012 delmar, cengage learning. all rights reserved. chapter 19 banking procedures
TRANSCRIPT
Copyright ©2012 Delmar, Cengage Learning. All rights reserved.
Chapter 19
Banking Procedures
Copyright ©2012 Delmar, Cengage Learning. All rights reserved.
Banking
• Online banking• Mobile banking• Automated teller
machines (ATM)• Telephone banking• Mail banking
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Bank Accounts
• Checking• Savings• Overdraft checking• Special checking
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Currency
• Paper bills and coins
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Types of Checks
• Cashier’s• Certified• Electronic• Limited check• Money order
• Postdated check• Stale check• Traveler’s check• Voucher check
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Check Components
• Date• Words of negotiability• Payee• Numeric amount• Written amount• Financial institution• Signature
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Check Endorsement
• Blank endorsement– Signature only– Should not be used until check is about to be
cashed• Restrictive endorsement
– Used to endorse checks as they are received– “Pay to the order of”
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Accepting Checks
• Do not accept:– Third party checks– Checks marked “paid in full”– Money order with more than one endorsement
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Common Check Writing Errors
• Written and numeric amounts do not match• Wrong date• Unsigned checks• Signature does not match• Alterations or modifications
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Preparing Checks
• Must have five essential factors– Date– Payee– Numeric and written amounts– Payer signature
• Must fill out check register
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Bank Deposits
• Sort and total currency• Sort and enter checks• Prepare the deposit slip
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Preparing the Deposit Slip
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Bank Statements
• Provide a summary of financial transactions over a period of time
• Mailed or emailed to account holder monthly• Reconcile the bank statement each month