Senior High School
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 2
QUARTER 2: Module 2
Basic Documents and Transactions Related to Bank
Deposits
Department of Education ● Republic of the Philippines
i
Fundamentals of Accountancy, Business and Management 2
Senior High School
Alternative Delivery Mode
First Edition, 2020
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:
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:
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:
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:
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Introductory Message
Dear Teachers and Learners! The writer welcomes you all to this
Fundamentals of Accountancy, Business and Management 2 Modules. This material
tries to bring you with the preparation and analysis of financial statements of a
service business and merchandising business using horizontal and vertical analyses
and financial ratios. Knowledge and skills in the analysis of financial statements will
aid the future entrepreneurs in making sound economic decisions.
As your partner in learning, I hope that you will not miss out every detail that
the writer would like you to learn in this material. Do enjoy as there are challenging
and interesting activities inside this learning modules. Congratulations in advance for
this will make you the master of your own learning.
Ops! you wait for a while, for an easy use of this material take note of some
few reminders
1. Take your time to read every detail that this module contains.
2. This material contains Module 2 and each of which is provided with
activities/tests that will surely lead you to learn.
3. Here are the Icons used as your guide in every part of the lesson.
Icons of this Module
What I Need to
Know
This part contains learning objectives
that are set for you to learn as you go
along the module.
What I know
This is an assessment as to your level
of knowledge to the subject matter at
hand, meant specifically to gauge prior
related knowledge.
This part connects previous lesson with
that of the current one.
What’s In
What’s New
This is an introduction of the new lesson
through various activities before it will
be presented to you
What is It
This is a discussion of the activities as a
way to deepen your discovery and
understanding of the concept.
What’s More
This is a follow-up activity that is
intended for you to practice further in
order to master the competencies.
This activity is designed to process
what you have learned from the lesson
What I Have
Learned
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What I can do
This is a task that is designed to
showcase your skills and knowledge
gained, and applied into real-life
concerns and situations.
4. Please do follow the directions given per activity so your experience to the use
of this material will be meaningful and fruitful.
5. Answer all the tests in this material.
6. As a courtesy to the future users, PLEASE DO NOT WRITE ANYTHING ON
ANY PART OF THIS MODULE. Write your answer/s on a separate sheet of
paper, notebook, workbook or whichever is specified by your facilitator
Special Reminders for you learners;
1. Answer every activity intelligently and diligently.
2. Write your answer as directed by your facilitator.
3. Feel free to approach or communicate your teacher/facilitator whenever you
need help.
4. Don’t forget to put a smiley face if you finish the activity within the allotted
time.
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Table of Contents
Page
What This Module is About…………………………………………………..
Icons of this Module…………………………………………………………..
Module 2
Basic Documents and Transactions Related to Bank
Deposits ………………………………………………
Activity
1.2.1 Identify Me
1.2.2 Find Me Right!
1.2.3 Write Me Right
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2
Basic Documents and Transactions Related to
Bank Deposits
What’s In
In the previous discussion you have prepared journal entries of basic business
transactions and posted the transaction in the general ledger. This lesson details the
basic documents and transactions related to bank deposits, which are the types or kinds
of bank accounts and checks. Most importantly in this lesson, you will prepare bank
deposit and withdrawal slips, prepare checks and you will understand the contents of a
bank statement.
What’s New
Multiple Choice
Direction. Read carefully and analyze each item. Encircle the best answer.
1. These are cash items deposited in foreign countries and are denominated in
different foreign currencies.
a. Stale check
b. Customer check
c. Foreign Currency Bank Account
d. Savings Deposit
2. These are checks received from customers.
a. Stale check
b. Customer check
c. Foreign Currency Bank Account
d. Savings Deposit
3. These are checks issued by bank cashiers.
a. Cashier’s Check
b. Traveler’s Check
c. Saving’s Account
d. Manager’s Check
4. These are checks issued by bank managers.
a. Cashier’s Check
b. Traveler’s Check
c. Saving’s Account
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d. Manager’s Check
5. These are checks issued by the company to suppliers and creditors and not
encashed on time.
a. Stale check
b. Customer check
c. Foreign Currency Bank Account
d. Savings Deposit
6. These are checks prepared by the company that will be delivered to corporate
creditors or suppliers.
a. Stale Check
b. Undelivered Check
c. Foreign Currency Bank Account
d. Savings Deposit
7. These are company checks that are already delivered to the payee but they
cannot be encashed or deposited yet because the date indicated in the check
has not yet arrived.
a. Stale check
b. Undelivered check
c. Foreign Currency Bank Account
d. Postdated check
8. This bank account does not usually earn interest income. However, some banks
are giving interest income to their checking account to encourage new deposits.
a. Stale Check
b. Checking Account
c. Foreign Currency Bank Account
d. Savings Deposit
9. This bank account usually earns interest income over the time that money was
deposited in such an account.
a. Stale Check
b. Checking Account
c. Foreign Currency Bank Account
d. Savings Deposit
10. Upon receipt of a traveler’s check, the payee should immediately sign this check.
This will prevent unauthorized use of such checks.
a. Stale Check
b. Checking Account
c. Foreign Currency Bank Account
d. Savings Deposit
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What Is It
Bank deposits consist of money placed into banking institutions for safekeeping.
These deposits are made to deposit accounts such as savings accounts, checking
accounts and money market accounts. The account holder has the right to withdraw
deposited funds, as set forth in the terms and conditions governing the account
agreement.
The deposit itself is a liability owed by the bank to the depositor. Bank deposits
refer to this liability rather than to the actual funds that have been deposited. When
someone opens a bank account and makes a cash deposit, he surrenders the legal title
to the cash, and it becomes an asset of the bank. In turn, the account is a liability to the
bank.
There are several different types of deposit accounts including current accounts,
savings accounts, call deposit accounts, money market accounts and certificates of
deposit (CDs).
Businesses usually maintain two types of accounts: (1) savings account, and (2)
checking or current account.
A. Savings Accounts
▪ These are intended to provide an incentive for the depositor to save
money.
▪ The depositor can make deposits and withdrawals using the form provided
by the bank.
▪ Banks usually pay an interest rate that is higher than a checking account
or a current account.
▪ Some savings accounts have a passbook, in which transactions are
logged in a small booklet that the depositor keep.
▪ Some savings accounts charge a fee if the balance falls below a specified
minimum
B. Checking or Current Accounts
▪ Money held under a checking account can be withdrawn through
issuance of a check.
▪ Banks usually allow numerous withdrawals and unlimited deposits under
this type of account.
▪ The interest rate for checking accounts is usually lower as compared to a
savings account.
▪ The account holder or depositor of a checking account is normally
provided at the end of the month a bank statement showing all the
deposits made, checks paid by the bank, and the balance of the account.
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▪
The depositor is given easy access to the funds as compared to a savings
account.
Time deposit account (or a certificate of deposit account) which is a type of a
savings account that is held for a fixed-term and can be withdrawn only after the lapse
of the agreed period and by giving notice to the bank. The account may be withdrawn
also anytime however the bank usually charges penalties. This type of account yields
high interest.
Another type of savings account that is popularly used nowadays is an ATM
(Automated Teller Machine) account wherein withdrawals can be made through
designated machines. This is a 24-hour teller machine and the funds can be withdrawn
anytime. The advantage of this account is that even if the banks are closed, you can
withdraw your funds.
In order to open an account, the bank will require individual’s certain documents
such as valid identification cards and will ask you to fill-up the forms prepared by the
bank. Upon approval of the application to open an account, the bank will give the
depositor's account number
Preparation of bank deposit and withdrawal slips
A withdrawal slip and deposit slip are written orders to the bank. These slips are
used to take out money or to put in money to the depositors account.
Withdrawal Slip
▪ Without a withdrawal slip, the bank will not allow you to get money from your
account.
o The required information in the withdrawal slip are:
▪ 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. The signature is a proof that the depositor is
authorizing the bank to get money from his account. Usually, the
bank compares the signature in the withdrawal slip against the
signature in the bank records submitted during the opening of the
account.
There are instances that the depositor cannot attend personally to withdraw the
funds, he may authorize a representative by indicating the name of the representative in
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the space provided and the representative must sign. There is a need for the
representative to bring a valid identification card upon withdrawal otherwise the bank
will not approval the withdrawal.
Deposit Slip
The bank provides a deposit slip that the depositor will fill up every time the
depositor puts in money to his account. The usually required information in a deposit
slip are:
▪ 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 the 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 may be in the form of
cash or check. If it is a cash deposit, the breakdown of the cash is usually
listed in the deposit slip if it is a check deposit, the details of the checks
are indicated in the deposit slip, for example: Issuing Bank, Address of the
Issuing Bank, date of the check and the amount.
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Check
▪
▪
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. The check number is usually
indicated in the upper right portion of the check.
The following are the parties involved in a transaction that uses check as medium of
exchange:
▪ Drawer, the person or entity who makes the check
▪ Payee, the recipient of the money
▪ Drawee, the bank or other financial institution where the cheque can be
presented for payment
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The date column indicates the date the transaction was made. The check
number indicates the details of the check paid by the bank. The transaction code is
normally a bank code for the transactions. The Debit column represents all charges or
deductions made by the bank to your account. The Credit column represents the
deposits or additions to your account that was made by the bank. The Balance column
is the running balance after considering the effect of the transaction to your 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 and other fees)
• NSF - (Not Sufficient Fund) – Banks also use a debit memorandum when a
deposited check from a customer “bounces” because of insufficient funds. 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.
As part of control, the bank statement received from the bank is compared with
the accounting records of the business. This process is called bank reconciliation. Bank
reconciliation will be discussed in the succeeding chapters.
Together with the bank statements, the banks will include the copies of checks
cleared or paid by the bank for that month.
Issuance check
▪
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
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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.
▪
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.
In case there are any erasures in the check, the check will not be accepted by the bank .
Kinds of checks
1. Customer’s check- checks received from customers. These are usually issued as
payment for the inventories and services that they have received from the entity.
2. Traveler’s check- checks with a security feature. Upon receipt of the 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 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.
3.
Manager’s Check- check issued by the bank managers. This a guarantee by the bank
that the holder of the check has the necessary funds deposited in their financial
institution.
4. Cashier’s Check- check issued by the bank cashiers. Like a manager’s check, a
cashier’s check guarantees that a certain amount has been deposited to the bank.
5. Company’s Undelivered Checks- checks prepared a company that will be delivered to
corporate creditors or suppliers. If the checks are not yet delivered to creditors or
suppliers, the amount indicated in the checks are still considered as part cash balance of
the issuing company.
6. Company’s Postdated Check- a company check already delivered to the payee, but it
cannot be encashed or deposited yet because the date indicated in the check has not
yet arrived. If the check dated January 22, 2016 was issued December 31, 2015, the
said check is postdated.
Since the payee or creditor still cannot deposit or encash the check, the check’s
value remains part of the cash balance of the issuing company.
7. Company’s Stale Checks- check issued by the company to suppliers and creditors and
not encashed on time. Payees like suppliers and creditors are often given six months
from the date of the check to encash it.
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If the checks are not yet encashed after the month period, then the checks will be
considered stale checks and no longer be accepted by the bank.
However, the liability of the company to the creditors will remain. The creditor will just
request for another check from the company as a replacement.
As long as the replacement check has not yet been issued, the amount indicated in the
company’s stale check will be considered as part of the company’s cash balance. This is
since the company still maintains control over the amount.
What’s More
Activity 2.1 Identify Me
1. It indicates the name of the bank and its branch and the type of account whether
current or savings.
a. deposit slip
b. depositor's bank account
c. signature card
d. withdrawal slip
2. A basic type of deposit account that can be withdrawn anytime the depositor decides
to is called _________.
a. checking account
b. current account
c. timed deposit account
d. savings account
3. This can be withdrawn through check or the ATM.
a. current account
b. timed deposit account
c. savings account
d. paluwagan
4. It requires higher initial deposits and maintaining balance to earn interest is called
______.
a. checking account
b. savings account
c. timed deposit account
d. selling account
5. A type of check which may be used for setting the needed amount and two
signatories will have to sign it is called ________.
a. commercial check
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b. personal check
c. postdated check
d. returned check
6. A local body that gives specifications on information that must be contained in a
check is called _____.
a. House of representatives
b. Commission on Audit
c. Philippine Institute of Certified Public Accountants
d. Philippine Clearing House Corporation
7. The two diagonal lines at the top left corner of the check is written so that the amount
indicated will be deposited to the account of the rightful payee, which means
____________.
a. "for withdrawals only"
b. "for client's only"
c. "for deposits only"
d. "for supplier's account only"
8.It is an advanced technology service offered by the bank wherein deposits can be
made to the cash-accept-machine which counts the cash and credits it to the deposit
account on real time to eliminate bank charges for inter-branch deposits.
a. check deposit
b. cash deposit
c. on-site electronic deposit
d. over-the-counter deposit
9.It is a bank instrument used to put in effect the payment of the issuer to a payee is
called ________.
a. bill of exchange
b. check
c. passbook
d. ATM card
10.It is issued by the bank to depositor with only one signatory is called ________.
a. ATM card
b. commercial check
c. Passbook
d. personal check
11. It is a check issued with two diagonal lines crossed at its top edge corner.
a. crossed check
b. returned check
c. post-dated check
d. commercial check
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12.It is a check processed through the PCHC but dishonored by the drawee bank
because the account's balance cannot cover the check.
a. DAIF Check
b. NSF Check
c. Crossed check
d. Personal check
13.A way in which the discrepancy between the record of the depositor and the bank
will be resolved.
a. adjusting entries
b. bank reconciliation
c. auditing
d. reposting
14.It is issued by the bank to the depositor which can be used to withdraw cash
anytime.
a. ATM Card
b. Passbook
c. personal check
d. withdrawal slip
15.It is an advanced technology deposit to lessen lobby queue and eliminate bank
charges for inter-branch deposits.
a. on-line deposit
b. on-site-electronic deposit
c. transfer cash deposit
d. deposit in transit
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What I have Learned
Activity 2.2 Find Me Right!
1. Monthly report that states your transactions and balance
a. Wall Street Journal
b. Bank Statement
c. School Statement
d. Checking Report
2. Type of account that pays little to no interest, write checks from this account
a. Checking
b. Savings
c. Cd
d. Christmas
3. A card you use to withdraw money at an ATM or to pay at a store
a. Credit Card
b. Check
c. Debit Card/Atm Card
d. Id Card
4. When your employer automatically deposits your paycheck into your bank account
a. Deposit
b. Payroll Check
c. ATM
d. Direct Deposit
5. The # assigned to your bank account
a.
b.
c.
d.
Business Number
Account Number
School Number
Phone Number
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6. Bank machine you use to make transactions
a.
b.
c.
d.
ATM
Typewriter
Coin Counter
Bank Teller
7. The amount of money in your account
a. Deposit
b. Benjamins
c. Balance
d. Dollars
8. Person who works at the bank and completes your transaction
a.
b.
c.
d.
Bank Teller
President
Security Guard
Loan Shark
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9. To put money in the bank
a.
b.
c.
d.
Withdrawal
Deposit
Invest
Write A Check
10. To sign the back of a check
a.
b.
c.
d.
Signature
X It
Bank Teller
Endorse
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11. Money the bank pays you for saving your money there
a.
b.
c.
d.
Interest
Loan
Credit
Service Fee
12. An account you share with a family member
a.
b.
c.
d.
Family Account
Joint Account
Individual Account
Checking Account
13. The LEAST AMOUNT of money you need to keep in your account so you don't get a
fee.
a. Minimum Balance
b. Maximum Balance
c. Php 5.00
d. Php 100.00
14. When you spend more, or OVER, the amount you have in the bank
a. Php 5.00
b. Php 10.00
c. Overdrawn/Insufficient Funds/
Bounced Check
d. Sufficient Funds
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15. Type of account that pays interest, no checks
a. Savings
b. Checking
c. Interest
d. Mortgage
16. Money the bank charges you for a service
a.
b.
c.
d.
Debit
Loan
Interest
Service Charge/Fee
17. Any action between you and the bank
a. Loan
b. Game
c. Transaction
d. Bank Statement
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18. To take money OUT of your account
a.
b.
c.
d.
Withdrawal
Deposit
Trust
Steal
19. How is the amount written on a check?
a.
b.
c.
d.
In Words
In Numbers
In Words and Numbers
In Ꝑ Signs
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20. How many places are the check number written on a check?
a.
b.
c.
d.
2
3
4
5
What I can Do
Activity 2.3 Write Me Right
1.
What is a bank statement and discuss the importance of a bank statement to a
depositor?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
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2.
What is a check and who are the parties involved in the issuance of a check?
Discuss the role of each party.
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
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Answer key
13.
14.
15.
16.
17.
18.
19.
20.
What’s New multiple choice
1. C
2. B
3. A
4. D
5. A
6. B
7. D
8. B
9. D
10. C
A
C
A
D
C
A
C
A
Activity 2.3 Write Me Right
Suggested Answer:
Activity 2.1 Identify Me
1. A
2. D
3. A
4. B
5. A
6. D
7. C
8. C
9. B
10. D
11. A
12. A
13. B
14. A
15. B
1. The bank statement shows the beginning
balance, additions, deductions, and the balance at
the end of the period. This statement is issued by
the bank to all its depositors and is usually done on
a monthly basis. 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.
Any discrepancies between the two records can be
properly addressed and corrected.
2. A 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.
The following are the parties involved in a
transaction that uses check as medium of
exchange:
• Drawer- the person or entity who makes the check
• Payee- the recipient of the money
• Drawee- the bank or other financial institution
where the cheque can be presented for payment.
Activity 2.2 Find Me Right!
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
B
A
C
D
B
A
C
A
B
D
A
B
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REFERENCES
(Beticon, Domingo, & Yabut, Fundamentals of Accountancy, Business and
Management 2, 2016)
(Robles & Empleo,Intermediate Accounting based on PFRS/ IFRS, 2010)
(Commission on Higher Education, Teaching Guide For Senior High School
Fundamentals Of Accountancy, Business, And Management 2, 2016)
(https://pngio.com/images/png-a1192276.html, n.d.)
(https://www.freepik.com/premium-photo/top-view-business-paper-graph-woodentable-with-calculator_6382493.htm, n.d.)
(https://quizizz.com/admin/quiz/5c45577617a592001a8b8f51/basic-documents-andtransactions-to-bank-deposits, n.d.)
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