Fundamentals Of Accountancy, Business, And Management PDF

**Savings Account** - Intended to provide incentive to the depositor to save money - Earns minimal interest and requires minimum balance. - Can be linked with passbooks, ATM or debit cards B. **Checking / Current Account** - Withdrawal of cash is made through a bank check - Rarely e...

**Savings Account** - Intended to provide incentive to the depositor to save money - Earns minimal interest and requires minimum balance. - Can be linked with passbooks, ATM or debit cards B. **Checking / Current Account** - Withdrawal of cash is made through a bank check - Rarely earns interest due to fast turnover of transactions **C. Time Deposit** - Allows the depositor to invest money at a set interest rate for a preset period of time which can range from a few months to several years. - The depositor agrees not withdraw funds over the contract period in exchange for a fixed interest rate.   **D. Unit Investment Trust Fund** - An investment company that offers a fixed portfolio, generally of stocks and bonds, as redeemable units to investors for a specific period of time. - a written and signed instrument that directs a bank to pay a specific sum of money to the bearer. - widely acceptable form of payment. - allow two or more parties to make a monetary transaction without the need of physically exchanging cash. - **Drawer / Payor** -- person or entity writing the check. - **Drawee** -- the bank on which the check is drawn. - **Payee** -- the person being paid or to whom the check is written. a. **Crossed check** -- restricted for payee's account only. The check can only be deposited to the payee's accounts and cannot be enchased. b. **Stale check** - a check becomes stale if it is not negotiated within six (6) months from the date of issue. c. **Postdated check** -- check issued on a future date and can only be negotiated from the date appearing on the face of the check **CROSS CHECK** **STALE CHECK**  October 6,2024 **POSTDATED CHECK** - a detailed transaction history of the account over the reporting period. - a statement of account issued by a bank to each depositor once a month - Shows the following data: - The balance at the beginning of the period. - Deposits and other amounts added during the period. - Checks and other amounts subtracted during the period. - The balance at the end of the period. **\ **  1. **Outstanding checks** - deduct from the bank balance. - The amount of the check has already been deducted from the book/records of the business 2. **Deposit in transit** - Add to the bank balance - The amount of cash has already been added to the book/records of the business 3. **Errors (overstating bank balance)\ ** - Example: An amount of P500 was [erroneously credited] to the account of ABC. - The amount of P500 will be [deducted from the bank balance] since it is not a deposit for the account of ABC 4. **Errors (understating bank balance)\ ** - Example: An amount of P500 was [erroneously debited] to the account of ABC. - The amount of P500 will be [added to the bank balance] since it is not a cash withdrawal for the account of ABC 1. **Credit memo received from the bank** 2. **Collection directly credited to the account** - Add to the book balance - The amount has already been credited to the account but not yet recorded in the books of the business 3. **Debit memo received from the bank or bank service charges** - Bank charges deducted from the account - Deduct from the book balances - The amount has already been debited or deducted from the account but not yet recorded in the books of the business 4. **NSF Check** - Returned check due to insufficient fund - Deduct from the book balance - The check received have been recorded in the books and deposited to the bank, but is returned due to insufficient funds. 5. **Errors understating the cash balance** - The difference of P18 will be [added to the book balance] - *[The amount recorded in the books is higher than then actual amount issued.]* - *[Illustration:]* Example: *A check received amounting to P650 was recorded in the books as P605. [ ]* - The difference of P45 will be [added to the book balance] - *[The amount recorded in the books is lower than then actual amount received.]* - *[Illustration:]* 6. **Errors overstating the cash balance\ ** - The difference of P72 will be [deducted from the book balance] - *[The amount recorded in the books is lower than the actual amount issued.]* - *[Illustration:]* Example: *A collection amounting to P1,450 was recorded in the books as P1,540.* - The difference of P90 will be [deducted from the book balance] - *[The amount recorded in the books is higher than the actual amount received.]* - *[Illustration:]*