Fabm2 - kajaywua

Bank Account

• record of the client's arrangements with the bank

• name, address, contact number, date of birth, occupation, and family details, if any.

Savings Account

• is money placed in a bank or other financial institution for safekeeping.

• It does not have a maturity date

• This is evidenced by a passbook

Checking account

otherwise called current account, is money placed in a bank or financial institution where the interest, if there is any, is lower than that of a savings account. A check book is issues by the bank

Time Deposit

otherwise called certificate of deposit, is money placed in a bank or financial institution unlike a savings deposit, the interest rate is fixed although higher. However, it has a holding period or maturity date and there is penalty if the fund is withdrawn before maturity date. This is evidenced by a certificate of time deposit.

Deposit Slip

is a bank document filled up by the client or depositor evidencing the amount of money he/she will place in his/her bank account for safekeeping.

Withdrawal Slip

bank document filled up by the client evidencing the amount of money he/she will pullout from his/her bank account. It shows the withdrawal date, the client's

check

an instrumentissued by a person in payment for goods and services acquired. This is a written order directing the payor's bank to pay a certain amount of money to be drawn against his/her checking account after verification of his/her signature and the availability of the funds in his/her checking account.

Stale Check

date if the check is past six months or 180 days or more

Post-dated check

Check dated at a future date

Cash

• medium of exchange used when selling or purchasing goods and services

Checks

• issued to pay for goods and services while collections are

  deposited

• issued by the depositor and paid the bank

Bank Reconcialiation

• schedule prepared to bring the depositor’s cash balance and the related bank’s cash balance in agreement

• Bank Credits

• deposits made by the bank in the company’s account but not yet recorded in the books or company’s record

  • reflected in bank statement but not yet in company record

• Added to balance per book

Examples:

• Collections made by the bank

• Proceeds of bank loan

• Interest income

Bank Debits

• charges made by the bank against the company’s account but not yet reflected in the company’s record

• deducted from the balance per book

Examples:

• Charges for returned NSF checks

• Charges for bank services

• Final Tax

Bank Errors

• items erroneously recorded by bank

Example: deposit of P 10,000 has been recorded as P 1,000

Debit Memo (DM)

Bank service charges deducted from the cash balance of the account holder

No Sufficient Fund (NSF)

check deposited by the payee but returned to the bank because there is no sufficient fund in payor’s account

Bank Statement

monthly report provided by the bank to the account holder of the

checking account reflecting the transactions that affected his/her bank account

Credit Memo (CD)

Increases in the cash balance of the account holder

• Ex: Proceeds of bank loan, interest income