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Chapter 29
Checking
Accounts
Section 29.2
Account Records
Read to Learn
Describe how checking account holders manage
their bank transactions.
Describe the procedure for bringing your
account into agreement with bank records.
The Main Idea
You must manage your checking account so that
you have an accurate picture of your finances.
A bank provides you with a bank statement
showing all transactions. You should check your
checkbook records against that statement regularly.
Key Concepts
Keeping Track of Financial Transactions
Reconciling Your Account Records

Key Terms
a checkbook log in which an
check register account holder records checking
account transactions
the signature of the payee on the

endorsement
back of the check
Key Terms
bank the bank’s record of all the

statement transactions in a checking account
canceled
checks that have been cashed
checks
Key Terms
the process of seeing whether

bank an account holder’s records
reconciliation agree with the bank’s records
for the account
Key Terms
outstanding checks that have been written but

checks have not yet been cashed
The different elements of a check provide

information that can be used in financial record
keeping.
Financial institutions provide forms and reports

that consumers can use to keep their checking
account in order.
Figure 29.2 Checking Account Statements
The Parts of a Check
There are three parties named on a check.
Payee Drawer Drawee
The party who The financial

The party to
wrote the check institution where
whom the check
and is paying the drawer has
is written
the money an account
A check must include a bank route number,

which traces the check back to the account on
which it was written.
A check includes the name and location of the

drawer’s bank, a check number, and security
features.
A check presented for payment must include a

valid date, the drawer’s signature, the payee’s
name, and matching numerical and written
amounts.
Writing a Check
When you write a

check register
check, record the a checkbook log in which
check number, the an account holder records
amount of the check, checking account
transactions
the date, and the
payee’s name in a
check register.
Making Deposits
A deposit slip lists the amount of cash and

checks and the total amount of the deposit.
After you make a deposit, record it in your

check register.
Making Deposits
To deposit or cash a
endorsement
check requires an the signature of the payee
endorsement. on the back of the check
Do not sign a check

until you are ready to
deposit or cash it.
Making Deposits
When making a deposit, write “For Deposit

Only” as part of the endorsement.
Bank Statements
A bank statement
bank statement
includes a record of the bank’s record of all the
all withdrawals, transactions in a checking
deposits, interest, account
and fees.
Bank Statements
Canceled checks are

canceled checks
proof that money has checks that have been
been paid to payees. cashed
A bank statement
includes a record of
canceled checks.
Handling Your Own Checks
Checks should be handled carefully.
There are precautions you should take to

secure your financial safety.
Graphic Organizer
Do not print sensitive information such as your

Social Security number or driver’s license on
your checks.
Keep checks, canceled checks, deposit slips,
and bank statements in a safe place.
Never leave your checkbook in the open or in
a car.
Graphic Organizer
Check your bank statements for anything

unusual.
Make sure your checks have security features.
Destroy old documents that contain your
account number.
Never make a check payable to “Cash.”
Reconciling Your Account Records
Bank reconciliation
bank reconciliation
is an important part of the process of seeing
managing your whether an account
checking account. holder’s records agree
with the bank’s records for
the account
Balancing Your Checkbook
The first step to reconciling your accounts is to

see whether the bank has processed all your
checks and deposits.
By comparing your
outstanding checks
check register and checks that have been
your bank statement, written but have not yet
you can identify been cashed
outstanding checks.
Figure 29.3 A Checkbook Register
The total dollar amount of outstanding

checks should be subtracted from the
balance shown on the bank statement.
Other items to consider when balancing

your checkbook include:
Bank fees
ATM deposits or withdrawals
Interest earned
Finding Errors
If your balance differs from the bank’s balance

after you reconcile your account, double check
the amounts in your records and all your
additions and subtractions. Then check the
bank’s additions and subtractions. If you find a
mistake, report it immediately.
1. What kinds of financial records help people
manage their checking accounts?
the checks themselves, a check register, ATM

receipts, deposit slips, and bank statements
2. What are some guidelines to consider when
ordering and handling personal checks?
Do not print or write your personal information

on your checks. Store all financial papers in a
safe place.
3. Describe the purpose of reconciling a bank
statement and a check register.
to bring the two balances into agreement

End of
Chapter 29
Checking
Accounts
Section 29.2
Account Records

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Reconciling Your Account Records

the signature of the payee on the

bank the bank’s record of all the

the process of seeing whether

outstanding checks that have been written but

The different elements of a check provide

Financial institutions provide forms and reports

There are three parties named on a check.

Payee Drawer Drawee

The party who The financial

A check must include a bank route number,

A check includes the name and location of the

A check presented for payment must include a

When you write a

A deposit slip lists the amount of cash and

After you make a deposit, record it in your

Do not sign a check

When making a deposit, write “For Deposit

Canceled checks are

Checks should be handled carefully.

There are precautions you should take to

Do not print sensitive information such as your

Check your bank statements for anything

The first step to reconciling your accounts is to

The total dollar amount of outstanding

Other items to consider when balancing

If your balance differs from the bank’s balance

the checks themselves, a check register, ATM

Do not print or write your personal information

to bring the two balances into agreement

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