Name: A deposit slip contains the account holder s account number and allows money (cash or check) to be deposited into the correct account. When filling out a deposit slip, enter the following: Date of deposit Amount of cash deposited Checks to be deposited Total deposit. Fill out the following deposit slip with this information: Date: April 5 of the current year Cash: $25.00 Checks: from Fran Smith, $35.00 From IRS, tax refund, $178.50 Be sure to compute the total To pay for items using a checking account, writing a check is one option that can be given to the person or business as a form of payment. Always write a check in pen! To write the check, the account holder must complete the following items on the check in order for it to be accepted: date payee (person or business to whom the check was written) amount in numerical form amount written out in words signature (not printed name) 1 P age
Write the following check with these items: April 6 of the current year Pay to: A Cut Above Hair Salon Amount: $23.00 Sign your name Write another check with these items: April 7 of the current year Pay to: Visa Amount: $120.00 Sign your name A debit card is a plastic card which looks like a credit card, but is electronically connected to the cardholder s bank account for purchases. When a purchase is made, money is automatically taken from the designated account. Debit cards require using a personal identification number (PIN) to access the account to perform a transaction. A PIN confirms that the user of the debit card is authorized to access 2 P age
the account. The card is used by swiping it through the store machine or entering it into the ATM machine. When using ATM machines not provided by the financial institution sponsoring the card, additional bank charges may be assessed. Samples of debit card receipts: Debit cards can also be used at ATM machines to get cash. Important! Important! Important! Whenever you make a deposit, write a check, use your debit card, use an ATM machine, make an electronic payment in your checking account, or complete any other transaction involving your checking account, you MUST record the entry into your checking account register! Otherwise, you will not have an updated balance, and you won t know exactly how much money you have. If you spend more money than you have, you will be charged an overdraft fee, and it will go on your credit report. Important! Important! Important! All transactions including deposits, checks, debit card purchases, additional fees, and ATM use should be recorded in a check register immediately after completion. Record dollar amounts for purchases in the payment/debit column and deposits in the deposits/credit column. A running balance of all transactions is kept in the far right balance column so you always know how much money you have right now. Each transaction in the register takes two rows, one for the current transaction, and one to update the balance. 3 P age
Enter the following transactions into the check register below, updating the balance after each transaction. Date Description Amount Date Description Amount 4/5 Deposit $238.50 4/15 ATM cash advance $20.00 4/6 Check 2670, A Cut Above $23.00 4/20 Direct Deposit, salary $225.00 4/7 Check 2671, Visa $120.00 4/21 Debit card, Walmart, food $56.00 4/10 Debit card, Walmart, food $45.00 4/22 Check 2672, rent $350.00 4/12 ATM cash advance $20.00 4/23 Electronic bill pay, electricity $47.00 4/14 Electronic bill pay, gas bill $55.00 4/25 Electronic bill pay, insurance $66.00 4/14 Electronic bill pay, cell phone $75.00 4/30 Deposit $60.00 Check Register Number Date Transactio Withdrawal Deposit $ 600.00 4 P age
Bank statements show all transactions that have occurred in a specific timeline; usually a month. The statement can be used to reconcile the account, which means to balance the checkbook register each month to the balance shown on the statement. Reconciling the account each month allows individuals to track money accurately and manage their finances wisely. Bank reconciliations are usually sent out once a month. They will show the beginning balance in your account, all the credits (deposits), all the debits (withdrawals), and a running balance for every day. The bank statement will seldom agree with the bank balance for these reasons: Checks that have been written but not yet cleared the bank Deposits that have been made but not yet showing up on the bank statement Service charges or other charges from the bank The depositor forgetting to record a transaction in the register Errors, usually on the depositor s part Since the bank records and your records seldom agree, it is vital that you reconcile your bank balance every month. Here is your bank statement for the month of April, which you received on May 7. Bank of YourTown West Jordan, Utah Statement of Account for: Student Name Student Address West Jordan, UT 84088 Account Number: 1234567890 Statement Date: April 31, 20-- Bal. from Prev. Number Number of Service Statement Statement of Debits Total Debits Credits Total Credits Charge Balance $600.00 10 $527.00 2 $463.50 $15.00 $521.50 Date Check # Debits Credits Balance 4/1 600.00 4/6 238.50 838.50 4/10 45.00 793.50 4/10 2671 120.00 673.50 4/12 2670 23.00 650.50 4/12 20.00 630.50 4/15 20.00 610.50 4/16 55.00 555.50 4/16 75.00 480.50 4/20 225.00 705.50 4/21 56.00 649.50 4/23 47.00 602.50 4/25 66.00 536.50 5 Page 4/30 SC 15.00 521.50
Once you have received your bank statement, you should reconcile it with your records to be sure that you and the bank agree with how much money you have. Follow these steps: 1. In your check register, record any items on the bank statement that you have not yet recorded. A common example is the bank service charge, which the bank takes out of your account, then notifies you of the debit. You must record it in your records because the money is gone from your account. 2. Compare your bank statement with your check register. Place checkmarks next to the transactions that have cleared the bank. The transactions without check marks next to them are outstanding. Sometimes it will take several days for a transaction to clear the bank. These outstanding transactions will probably show up on the next month s statement. 3. Record outstanding checks and deposits on the bank reconciliation form. 4. Follow the directions on the bank reconciliation form. 5. The ending balance (Box 7) should be the same as the balance on your check register. 6 P age