Fundamentals of

Accountancy, Business &

Management 2

Prepared by:
Mary Mildred de Jesus
 1. Identify the types of bank
accounts normally
OBJECTIVES maintained by a business
2. Prepare bank deposit and
withdrawal slips
3. Identify and prepare checks
4. Identify and understand the
contents of a bank statement
ABM_FABM12-IIc-5-9
 The information below will help you
be a successful participant in this
course.
OBJECTIVES How is the course designed?
 Lectures
 Video Lectures
 Case Studies
 Activity Game
 Exercises
 Quizzes
Basic Documents
and Transactions
Related to Bank
Deposits
TWO TYPES OF BANK ACCOUNTS NORMALLY
MAINTAINED BY A BUSINESS
1.SAVINGS ACCOUNT
 Is a basic type of bank account that
allows you to deposit money, keep it
safe, and withdraw funds, all while
earning interest.
A savings account holds your money in
a safe place: your bank or credit union.
TWO TYPES OF BANK ACCOUNTS NORMALLY
MAINTAINED BY A BUSINESS
1.SAVINGS ACCOUNT
 Savings accounts offer easy access to your
cash. Once you’re ready to spend money,
you can withdraw cash or transfer funds to
your checking account to pay by check,
debit card, or an electronic funds transfer.
You can make cash withdrawals from your
savings account at an ATM or with your
bank’s tellers.
 TYPES OF SAVINGS ACCOUNT
A. BANK SAVINGS ACCOUNT

 Also known as a PASSBOOK SAVINGS

ACCOUNT, these accounts are a good
introduction to earning interest and saving
money.
 Transactions on a basic savings account are
updated either in a passbook when then
customer visits their financial institution, or
on a statement issued periodically (often
monthly).
A. BANK SAVINGS ACCOUNT
 TYPES OF SAVINGS ACCOUNT
B. ATM (AUTOMATED TELLER MACHINE) ACCOUNT

 ATM, or automated teller machine, is a

machine that lets you get cash from your bank
account without visiting a teller.
 ATMs are machines that dispense cash and
allow you to make other banking transactions.
An ATM typically consists of a screen, a card
reader, a keypad, a cash dispenser and a
printer. ATMs can be found in many locations
throughout the U.S. and the world.
B. ATM (AUTOMATED TELLER MACHINE) ACCOUNT
 TYPES OF SAVINGS ACCOUNT
C. MONEY MARKET SAVINGS ACCOUNTS (MMAs)

 They may also be called money market savings or

deposit accounts.
 Money market accounts suit customers who want
a higher interest rate than a basic bank account,
and are willing to keep a larger balance in their
account. They are suitable for investors with
savings goals with target dates ranging from a few
months to a few years away.
 TYPES OF SAVINGS ACCOUNT
MONEY MARKET FUNDS
 are a type of mutual fund that invests in highly-
rated, short-term debt securities. They generate
income but little if any capital appreciation.
Money market funds were established in the
1970s to provide a slightly higher-yielding
alternative to interest-bearing bank accounts.
 TYPES OF SAVINGS ACCOUNT
D. TIME DEPOSIT (CERTIFICATE OF DEPOSIT
ACCOUNT)

 A time deposit is an interest-bearing bank

account that has a date of maturity, such as
a certificate of deposit (CD). The money in a
time deposit must be held for the fixed term
to receive the interest in full. Typically, the
longer the term, the higher the interest rate
that the depositor receives.
 TYPES OF SAVINGS ACCOUNT
D. TIME DEPOSIT (CERTIFICATE OF DEPOSIT
ACCOUNT)

 are a good savings account option for

individuals saving for a goal with a defined
target date in mind.
 certificate of deposit accounts pay a
premium rate for locking a fixed savings
amount in for a specified duration ranging
from a few months to five years.
TWO TYPES OF BANK ACCOUNTS NORMALLY
MAINTAINED BY A BUSINESS
2.CHECKING OR CURRENT ACCOUNTS
 Is a bank account that allows easy access to
your money. You can make purchases by
using your debit card, checks, or account
information.
 Checking accounts allow you to easily access
your funds in several ways.
TWO TYPES OF BANK ACCOUNTS NORMALLY
MAINTAINED BY A BUSINESS
2.CHECKING OR CURRENT ACCOUNTS
 You can access your money by withdrawing
cash at an ATM or branch, writing a check,
sending an e-check, setting up an automatic
transfer, or using your debit card. Checking
accounts are typically used for day-to-day
spending.
DIFFERENCE OF SAVINGS AND CHECKING ACCOUNT
 TYPES OF CHECKING
A.Traditional Checking Account
B.No-Fee checking Account
C.Interest-Bearing or High-Yield
Checking Account
D.Rewards Checking Account
E.Premium Checking Account
 TYPES OF CHECKING
F. Student Checking Account
G. Business Checking Account
H. Joint Checking Account
I. Online Checking Account
J. Multicurrency Checking
Account
 WITHDRAWAL SLIP
This is a bank document on which a person writes the
date, account number and amount of money to withdraw
from a bank.
It is called a withdrawal slip because it is used to make
a withdrawal from a person’s account. It includes
important information that allows the bank to keep an
accurate record of the withdrawal and provide the
required amount.
Without a withdrawal slip, the bank will not allow you to
get money from your account. The required information
in the withdrawal slip are:
 WITHDRAWAL SLIP
Account Name - the name of the depositor
Account Number – the unique identifier given by the
bank for every account maintained
Date of the withdrawal
Type of Account - savings or current
Currency
Amount to be Withdrawn - the amount that the
depositor wishes to withdraw from his account. The
amounts in words and in figures are indicated.
Signature of the Depositor – this is the most important
part in the withdrawal slip.
 DEPOSIT SLIP
Is a form supplied by a bank for a depositor to fill
out, designed to document in categories the items
included in the deposit transaction. The form
contains the following information:

A deposit slip is a small paper form that a bank

customer includes when depositing funds into a
bank account.
 DEPOSIT SLIP
Account Name – this is the complete name of the depositor
that is reflected in the records of the bank. If it has a pass
book, the account name is indicated on first page inside the
passbook.
Account Number – this is a unique identifier of the account
maintained by the depositor.
Date of Deposit
Type of Account
Currency
Amount in words and in figures – the amount that the
depositor wishes to put into his account. The amount to be
deposited maybe in form of cash or check
 CHECK
 Is 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 cheque has been issued.
The person writing the cheque, THE DRAWER, has a
transaction banking account where his money is held.
The drawer writes the various details including the
monetary amount, date, and a payee on the cheque, and
signs it, ordering his bank, known as the drawee, to pay that
person or company the amount of money stated.
Checks are a type of bill of exchange and were developed as
a way to make payments without the need to carry large
amounts of money.
DRAWER’S ACCOUNT NAME
 DRAWER DRAWEE PAYEE

the person the bank or other

financial institution the recipient
or entity
where the of the
who makes cheque can be
money
the check presented for payment.
 KINDS OF CHECKS
I. CUSTOMERS CHECK

These are checks received from

customers. These are usually
issued as payment for the
inventories and services that
they have received from the
entity.
 KINDS OF CHECKS
II. TRAVELER’S CHECK
This is a kind of check with a security feature. Upon
receipt of a traveler’s check, the payee should
immediately sign the traveler’s check. Before the payee
can make use of such check, the payee must sign the
same check again.
This will prevent unauthorized use of the traveler’s
check. This will become helpful in cases where the
check is lost after the first signature was made. The
holder of the lost stolen or stolen traveler’s check will
not be able to use it because he or she cannot easily
copy the signature of the original payee.
TRAVELER’S CHECK
 KINDS OF CHECKS
III. MANAGER’S CHECK
This is a check issued by bank managers. This
is a guaranty by the bank that the holder of the
check has the necessary funds deposited in their
financial institution.
A manager's cheque is a cheque issued by the
bank drawn upon itself and can be encashed by
the bearer. It's also called a treasury cheque or
cashier's cheque. A manager's cheque is always
guaranteed by the bank.
MANAGER’S CHECK
 KINDS OF CHECKS
IV. PAYROLL CHECK
Payroll checks and paychecks are
the same things. They are the type
of check that is given to you from
payroll, the division at your job that
handles employee income payments,
is a paycheck or a payroll check.
PAYROLL CHECK
 KINDS OF CHECKS
V. CERTIFIED CHECK
Is a form of check for which the bank
verifies that sufficient funds exist in the
account to cover the check, and so
certifies, at the time the check is
written. Those funds are then set aside
in the bank's internal account until the
check is cashed or returned by the
payee.
 KINDS OF CHECKS
VI. PERSONAL CHECK
A personal check is a slip of paper that's
processed from your checking account. On
the check, you write an amount of money
and the name of the recipient who will
receive that money. The check also contains
information like the writer's checking
account number, the bank's routing
number and the name of the bank.
PERSONAL CHECK
 TYPES OF CHECKS
1.CROSS CHECK
It is marked to specify an instruction about
the way it is to be redeemed. A common
instruction is to specify that it must be
deposited directly into an account of the
payee. It is usually done by writing two
parallel lines on the upper left portion of the
check. A cross check cannot be ENCASHED
over the counter by the payee. It should be
deposited to the payees’ account.
 TYPES OF CHECKS
2. STALE CHECK

A cheque which a bank will not accept

and exchange for money or payment
because it was written more than a
certain number of months ago. In the
Philippines a check becomes stale if it
exceeds 6 months from the date of the
check.
 TYPES OF CHECKS
3. POST DATED CHECK
A post-dated check (or post-dated
cheque) is a check written with a future
date. In other words, the date that
appears on the check is after the date
when the check was written. Even with
a future date appearing on the check,
the check could clear (be paid from) the
bank account prior to that date.
POST DATED CHECK
 TYPES OF CHECKS
4. BOUNCING CHECK

A bounced check is slang for a check that

cannot be processed because the account
holder has nonsufficient funds (NSF)
available for use. Banks return, or
"bounce", these checks, also known as
rubber checks, rather than honoring them,
and banks charge the check writers NSF
fees.)
 BANK STATEMENT
 At the end of every month, the bank releases a statement to
the depositor showing the different transactions of the
account.
It contains all the withdrawals, deposits and balance of your
account after every transaction. It may also indicate bank
charges that were deducted by the bank automatically. Also,
interest earned by the account is likewise reflected. The bank
statement helps the depositor in documenting and
monitoring the movements on his bank account. This will
also serve as the basis in the preparation of bank
reconciliation statement, wherein the records of the bank are
compared with records of the depositor.
 Bank Statement
DATE COLUMN - indicates the dates of transaction
CHECK NO. - indicates the details of the check paid by the
bank
TRANSACTION CODE - indicates the names of the
transactions involving the account
DEBIT COLUMN - represents all deductions made by the
bank to the account
CREDIT COLUMN - represents the additions and deposits
made by the bank to the account
BALANCE COLUMN - represents the remaining money (or
balance) after a transaction has been made to the account
 Samples of Debit transaction:
BANK SERVICE CHARGE - monthly fee charged by the
bank for its services (Ex. cost of printing checks, writing
funds to other locations, etc.)
NSF - (NO SUFFICIENT FUND) – Banks also use a debit
memorandum when a deposited check from a customer
“bounces” because of insufficient funds.
o Nowadays bank refer to this as DAIF (Drawn Against
Insufficient Fund) or DAUD (Drawn Against Uncleared
Deposits)
Samples of Credit transactions
Collection of cash proceeds from notes receivables.
Interest income earned by the deposit.
 REFERENCES
Joselito G. Florendo, Reymond Patrick P. Monfero, Carlserg S. Amdres, Dani Rose C.
Salazar, Christopher B. Honorio, Brad Neiel T. dela Cruz, & Daniel Day V. Aguillon
Teachers Guide for SHS re: Fundamentals of Accountancy, Business and Management.
Quezon City. Commission on Higher Education, 2016

Anastacio, V. (2011). Accounting Essentials 1, Centro Escolar University Publisher

Ferrer, R. and Millan, Z. V. (2017). Fundamentals of Accountancy, Business &

Management Part 2. 1st Edition

Valencia, E. G., & Roxas, G. F. (2010). Basic Accounting (3rd ed.). Mandaluyong City,
Philippines: Valencia Educational Supply.

Arnold Quinto Malaluan- Assistant Professor II at Batangas State University-Lipa City

Campus (College of Accountancy, Business and Economics).” Instructional Materials for
FABM 2”.
“Education is the
most powerful
weapon which
you can use to Any questions?
change the world You can E-mail me at:
@marymildred.dejesus@deped.gov.ph
”. You can contact me at:
0939-8428177
-Nelson Mandela-