Before going over this module, the learner must answer the PRE-TEST in order for the teacher to

assess Recognition of Prior Learning (RPL) and pin point specific topics that need emphasis during
the discussion.

PRE-TEST

Modified Matching Type: From the financial ratios listed in the box, group the financial ratios as to
profitability, operational efficiency, and financial health ratios.

Return on assets Gross profit margin Debt ratio

Current ratio Debt to equity ratio Accounts receivable turnover
Quick ratio Days in inventory Interest coverage ratio
Return on equity Net profit margin
Asset turnover Fixed asset turnover

Profitability Ratios

Operating Efficiency Ratios

Financial Health Ratios

Module 8 – The Bank Account

Learning Outcome(s):

At the end of the lesson, the learner is able to:

 1. identify the types of bank accounts normally maintained by a business;
2. Prepare bank deposit and withdrawal slips;
3. Identify and prepare checks.

 Different Kinds of Bank Accounts

Recall the assets are resources owned by the company. Companies place controls to
safeguard their assets to ensure resources are not misused or misappropriated. Cash
is an important asset of the company. It is one that is easily misappropriated if not properly safeguard.
Bank accounts are the centre of critical control policies for cash. All cash receipts should be deposited in
the bank at the end of the day.

 Checking account: A checking account offers easy access to your money for your daily transactional
needs and helps keep your cash secure. Customers can typically use a debit card or checks to make
purchases or pay bills. Accounts may have different options to help avoid the monthly service fee. To
determine the most economical choice, compare the benefits of different checking accounts with the
services you actually need.

 Savings account: A savings account allows you to accumulate interest on funds you’ve saved for future
needs. Interest rates can be compounded on a daily, weekly, monthly, or annual basis. Savings accounts
vary by monthly service fees, interest rates, method used to calculate interest, and minimum opening
deposit. Understanding the account’s terms and benefits will allow for a more informed decision on the
account best suited for your needs.

 Certificate of Deposit (CD): Certificates of deposit, or CDs, allow you to invest your money at a set
interest rate for a pre-set period of time. CDs often have higher interest rates than traditional savings
accounts because the money you deposit is tied up for the life of the certificate – which can range from a
few months to several years. Be sure you do not need to draw on those funds before you open a CD, as
early withdrawals may have financial penalties.

 Time Deposits. A time deposit or term deposit (in the United States also known as a certificate of
deposit) is a deposit in a financial institution with a specific maturity date or a period to maturity,
commonly referred to as its “term”. Time deposits differ to at call deposits, such as savings or checking
accounts, which can be withdrawn at any time, without any notice or penalty. Deposits that require
notice of withdrawal to be given are effectively time deposits, though they do not have a fixed maturity
date.

 Bank Forms

There is a corresponding bank form for almost every transaction with the bank. Take for example the
opening of a bank account. The forms to be filled and signed are numerous. There are account opening
forms, signature cards, investor suitability forms and indemnity forms.
  Deposit Slip. A deposit slip is a form that is used to itemize the checks and cash being
deposited into a bank account . A bank form filled up by the depositor. The depositor may or
may not the account holder. A bank deposit slip is validated by teller that accepts the deposit.

1. Provide personal information

2. Fill in additional details
3. List the cash amount of your deposit
4. List checks individually
5. Add up the deposits for a subtotal
6. Enter the amount of cash you’d
like to deposit
7. Calculate the total deposit
8. Sign the deposit slip

There are two kinds of deposit slip, namely

cash deposit slip and check deposit slip.

1. Check deposit. The depositor will indicate the amount of the check, check number, and issuing
bank.
2. Cash deposit. The depositor is required to indicate the denomination of the cash deposits.

 Withdrawal Slip.
from
your

account. If you are at a branch to withdraw funds from your account, you have to fill up a withdrawal
form. A withdrawal slip is a written instruction to the bank to pay the said amount to the account
holder. The funds are debited from the account number mentioned. Much like the deposit slip,
a bank withdrawal slip is a record of your banking transaction. It helps the bank keep track of your
withdrawals.

The order of information on withdrawal slips varies from bank to bank, but the general requirements are
similar. Fill in the blanks with the necessary information:
 The current date
 Your checking account number
 Your name in printed letters
 The amount you wish to withdraw
 Your signature
Some banks require you to write the amount in both words and numbers, similar to how you write a check.
  Bank Check
It is a bank form filled up by the account holder that instructs the bank to pay the designated payee
indicated on the check on or after the date specified on the check. The check expires six months from the
date of the check. An expired check is referred to as stale check. The account holder may also instruct the
bank not to encash the check but rather deposit the payment on the payee’s account.

Each of the blue numbers corresponds to an important aspect of this blank check. Scroll down for both the
name and purpose of each of these sections. Some aspects of a check are self-explanatory, such as the
date. Others have interesting quirks that are unique to check writing, such as writing out dollar amounts
with words.

1. The personal information section provides details about the account owner, who is the one
paying money.
2. The payee line designates who can receive the money.
3. The dollar/peso box displays the value of the check in numerical format.
4. The amount of your check is written out in this section using words instead of numbers.
5. The memo line is a space for any notes about the purpose of the check.
6. The date line serves as a timestamp for the check.
 7. The signature line verifies that the account owner has approved the payment.
8. Your bank’s contact information and/or logo is usually printed on the check.
9. Your bank's American Bankers Association (ABA) routing number tells banks where to find the
funds for the check.
10. Your account number at your bank is another identifier that lets the recipient know where the
money for the check will come from.
11. The check number (note that this appears in two places) is a security measure to identify each
payment and prevent fraud.
12. Your bank’s fractional ABA number contains the same information as the ABA in list item 9,
but it's often presented in another format in the upper right corner of the check, as well.

References: https://www.thebalance.com/parts-of-a-check-315356
https://www.shutterstock.com/image-vector/withdrawal-bank-payment-paper-slip-text-1081724555
https://www.hdfcbank.com/personal/resources/learning-centre/save/know-what-is-cash-withdrawal-slip-and-
how-to-fill-it
https://en.wikipedia.org/wiki/Time_deposit
https://www.wellsfargo.com/financial-education/basic-finances/manage-money/options/bank-account-types/
https://www.thebalance.com/how-to-fill-out-a-deposit-slip-315429
FUNDAMENTAL of ACCOUNTANCY, BUSINESS and MANAGEMENT 2 Book by Dani Rose C. Salazar. 1st Edition

Activity

Identify the correct answer of the following:

1. The simplest bank account.

2. It is like a savings account with an added feature.
3. These are investment placements.
4. Documents the withdrawal from passbook account.
5. It is a bank form filled up by the account holder that instructs the bank to pay the designated
payee.

POST-TEST:
Problem 1: You work for ABC Company. You were tasked to prepare the deposit slips, withdrawal
slip, and bank check for today, March 28, 20A1.

Deposit to checking account number 000123456789. The deposits are composed of the following:

 Cash deposit of P146, 670 – composed of 100 pieces of P1,000, 80 pieces of P500 bills, 25 pieces of
P200 bills, 6 pieces of P100 bills, 1 piece each of P50 bill and P20 bill.
 Check deposit of P567, 890 – composed of 3 checks.
o BPI- Katipunan branch with check number 00056743bfor P235, 670.
o Union Bank – Ortigas branch with check number 00087654 for P125, 688.
o BDO – Greenhills branch with check number 00056799 for P206, 532.
You were also tasked to prepare the withdrawal slip and check to be signed by the company president and
treasurer.
  Prepare withdrawal slip from bank account #000123456792 for the amount of P543, 900. This will be
used to pay the employee payroll for March 31.
 Prepare the bank check for P34, 567.87 payable to Meralco for the electric bill.
 Prepare a bank check for P5, 654.21 for PLDT for the phone bill.
 Prepare a bank check for P15, 800 for Mrs. Juanita Santos for April rent.

Required: Use the deposit slips, withdrawal slips, and bank checks below to answer the Problem.

https://dremelmicro.com/cash-deposit-slip-template/
https://www.template.net/design-templates/print/blank-check/
https://www.affordablecebu.com/download-bdo-withdrawal-slip