FABM2 Q2 M2 Basic Documents and Transactions Related to Bank Deposits PDF

SUBJECT TOPIC: Fundamentals of Module No. 2 Accountancy, Business & Basic Documents and Transactions related to Bank Deposits Management...

SUBJECT TOPIC: Fundamentals of Module No. 2 Accountancy, Business & Basic Documents and Transactions related to Bank Deposits Management 2 1. identify the types of bank accounts normally maintained by a business; Learning Objectives 2. differentiate a savings account from a current or checking account; At the end of the lesson, the 3. prepare bank deposit and withdrawal slips; students should be able to: 4. identify and prepare checks; and 5. identify and understand the contents of a bank statement. TYPES OF BANK ACCOUNTS A bank account represents funds entrusted by a depositor to a bank for safekeeping. The three basic types of bank accounts are: 1. Savings Account – is a bank account that earns the modest interest rate and is intended to encourage I savings. A savings normally evidenced by a “passbook”. The passbook shows the depositor’s deposits and withdrawals, the amount of interest earned by the deposit, and the balance of the account. N T The depositor may also opt to receive an automatic teller machine (ATM) card either in lieu of a R passbook or together with a passbook. An ATM Card is a plastic card, can be used as a debit card, meaning you can use it to pay electronically. Interests on savings deposit is accrued daily, based on O the end of day balance, but is reflected on the account at the end of every quarter. D U 2. Current or Checking Account – is a bank account wherein the depositor can write checks. A check is an instrument that orders a bank (drawee) to pay the person named on the check or the C bearer thereof (payee) a definite amount of money from the drawer’s bank account. T I A current or checking account can be either of the following: a. Basic Check Account – usually do not pay interests; or O b. Interest-Bearing Checking Account – pays interest just like a savings account. N 3. Time Deposit (or Certificate of Deposit or Term Deposit) – refers to an interest-bearing fund maintained at bank for a fixed period of time (e.g., 30 days, 60 days, 90 days, etc). A time deposit is similar to savings account but it earns higher interest rate. Moreover, a time deposit is denominated in fixed amounts and, normally, cannot be withdrawn until its maturity date. A Time Deposit is evidenced by a certificate of Deposit”. DEPOSITS and WITHDRAWALS C With the advent of technology, making deposits or withdrawals from a bank nowadays are often than not O “paperless”. For example, you can withdraw from (an even make a deposit) to an ATM. You can make bank transfers using your cellphones N T Even over-the-counter (OTC) transactions are automated. For example, at Bank of the Philippine islands, E you do not need to fill up deposits slips or withdrawal slips. You just go to a computer terminal (touchscreen kiosk) and fill in there the required information for your transaction. However, some banks N still use deposits and withdrawal slips. Below are actual examples: T PREPARATION OF CHECKS A check is an instrument that orders a bank (drawee) to pay the person named on the check or the bearer thereof (payee) a definite amount of money from the drawer’s bank account. The following are the three parties in the checks: 1. Drawer – the one writing the check and also one whose signature appears on the check. The drawer is the one instructing the drawee to pay the payee the amount stated on the check from the drawer’s bank account. 2. Payee – the one who is named on the check or the bearer thereof and is entitled to payment from the drawee. 3. Drawee – the bank in which the drawer’s bank account is maintained. DATE OF A CHECK ⮚ A check is normally dated at the date it was written. However, a check may also be antedated or postdated. Antedated check – a check dated at an earlier date. Postdated check – a check dated at a later date. ⮚ Stale check – a check that has not been encashed for a period of 6 months or longer.  BANK STATEMENTS A bank statement is a report issued by a bank (on a monthly basis) which shows the deposits and withdrawals during the period and the cumulative balance of a depositor’s bank account. ACTIVITIES: 1. Deposit Slip Preparation. Instruction: Today, October 5, 2020, you are going to deposit to the bank account of Mr. Marius Cezar with an Account Number of 143-2-070220190: A S S E S S M E N T Fill-out the Deposit Slip with the necessary information. 2. Withdrawal Slip Preparation. Instruction: Today, October 24, 2020, you are going to withdraw P143,000 from your Banco De Oro (BDO Savings Account with bank account number 143445254.  3. Check Preparation. Today, July 2, 2020, you are going to write a check of P201,907.02 for Mr. Sien Arel. TAKE HOME QUIZ: Directions: Choose the letter of the correct answer. 1. It is a bank account wherein the depositor can draw checks. a. Drawing account b. Savings account c. Current account d. Past account 2. A deposit is shown on which part of a bank statement? a. Debit column b. Credit column A c. Bottom part S d. Everywhere S 3. It is a written order directing a bank to pay money as instructed. I a. Check G b. Bank statement c. Deposit slip N M d. Bank instruction E N T