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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2

Grade Level: Grade 12

SLA No. 6 (Week 8-9): Basic Documents and Transactions Related to Bank Deposits
Subject Code/Number: ABM05
Subject Title: Fundamentals of Accountancy, Business, and Management 2
Teachers: Maricel N. Oroc

I. Introduction

Hello students! Have you gone to a bank? Any bank? Do you have any bank account?
Why did you open such account? For what purpose? Why did you choose the bank? Can you
mention banks that are existing in your community?

(These learning competencies are extracted from the DepEd curriculum guide)

A. Learning Competencies

1. identify the types of bank accounts normally maintained by a business (ABM_FABM12-IIc-

5)
2. prepare bank deposit and withdrawal slips (ABM_FABM12-IIc-7)
3. identify and prepare checks (ABM_FABM12-IIc-8)
4. identify and understand the contents of a bank statement (ABM_FABM12-IIc-9)

B. Learning Outcomes

1. Differentiate a savings account from a current or checking account.

2. Prepare bank deposit and withdrawal slips
3. Identify and prepare checks
4. Identify and understand the contents of a bank statement

II. Learning Content

Recall that 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 assets of the company. It is one that is easily misappropriated if not properly
safeguarded.
Bank accounts are at the center of critical control policies for cash. All cash receipts should
be deposited in the bank at the end of the day. Very minimal amounts should be left in the
company’s premises overnight. Cash payments should also be settled through bank checks and
processed through the voucher system.

A. Businesses usually maintain two types of account: (1) savings account, and (2)
checking or current account.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

1. 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

*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.

2. Checking or Current Accounts

• Money held under a checking account can be withdrawn through issuance of a check
• Banks usually allows numerous withdrawals and unlimited deposit under this type of
account.
• The interest rate for checking account 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.
• The depositor is given easy access to the funds as compared to a savings account.

*In order to open a particular account, the bank will require individuals certain
documents such as valid identification card 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 his account number

B. 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.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

1. Withdraw
al Slip

Without a withdrawal slip, the bank will not allow you to get money from your account.
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

Sample of a Bank Withdrawal Slip

2. Deposit Slip

The bank provides deposit slip that the depositor will fill up every time the depositor
will put 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 first page
• 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 maybe in form of cash or check. If it is a cash
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

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.

Sample of a Bank Deposit Slip

C. Identify and prepare check (cheque)

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. 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.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

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.

1. 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 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.

2.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.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

• What will happen if there are any erasures in the check?

The check will not be accepted by the bank. The erasures should be signed by the
Drawer.

D. Identify and understand the contents of a bank statement

At the end of every month, the bank furnishes a statement to the depositor showing
the movement of the account. It contains all the withdrawals, deposits and balance of your
account after every transaction. It may also indicate bank charges that were deducted by
the bank automatically. Also, interest earned by the account is likewise reflected.

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 deduction made by
the bank to your account. The Credit column represents the deposits or additions to your
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

account that
was made by the bank. The Balance column is the running balance after
considering the effect of the transaction to your account.

1. 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)

2. 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 particular month.

III. Self-learning Activities

Activity 1. Self-reflection
1. Do you have a bank account? If yes, what is your purpose when you opened such account?
2. How much was the amount used to open the account?
3. Why did you choose such bank among the banks in your community?

Activity 2. Content Evaluation

1. What is a bank statement and discuss the importance of a bank statement to a depositor?
2. What is a check and who are the parties involved in the issuance of a check? Discuss the
role of each party.

IV. Looking-back (Evaluation)

A. True or False: Read each sentence carefully and determine whether the statement is true
or false.
______1. The account holder may issue a bank check from a savings account.
______2. The account holder may use the withdrawal slip to get money from his
checking account.
______3. Time deposit accounts are investment accounts in nature.
______4. Time deposit normally has a fixed interest rate and fixed placement period.
______5. Bank statement is a letter issued by the bank that certifies the existence of the
bank account.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

______6. Collection of cash proceeds from notes receivables is an example of a credit

transaction.
______7. If there are any erasures on the check, the erasures will be signed by the bank
teller.
______8. Cross check is marked to specify an instruction about the way it is to be
redeemed.
______9. Without a withdrawal slip, the bank will not allow you to get money from your
account.
______10. The interest rate for checking account is usually lower as compared to a savings
account.

B. Problem

Problem 1:
You work for ABC Company. You were tasked to prepare the deposit slips, withdrawal
slip, and bank check for today, March 28, 20A. You will use the company’s Lucky Bank
accounts.
Deposits to checking account number 000123456789. The deposits are composed of
the following:
 Cash deposit of P145,670 – composed of 100 pieces of P1,000 bills, 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 00056743 for 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 a 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 a 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.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

Required: Use the deposit slips, withdrawal slips and bank checks below to answer.
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

V. Extension of Learning

A. For learners with internet connection

1. Go to the website of a universal bank such as Metrobank, Bank of the Philippine

Islands (BPI) and Banco de Oro (BDO).
2. Make a written report on the following offerings of the bank. Focus on the features
of the account interest rates offered, privileges and limitations or the account.
a. Deposit Accounts
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 2
Grade Level: Grade 12

b.
Investment Accounts

B. For learners with no internet connection

1. Photocopy blank withdrawal slips, deposit slips, and check and fill out the blank
forms and submit.
2. Answer this in your columnar notebook: Why do companies issue checks?

References

Fundamentals of Accountancy, Business, and Management 2, 1 st Edition by Dani Rose C. Salazar

https://www.academia.edu/36828179/Teaching_Guide_for_Senior_High_School_FUNDAMENTALS_OF_
ACCOUNTANCY_BUSINESS_AND_MANAGEMENT_2_SPECIALIZED_SUBJECT

https://www.studocu.com/en-ca/document/st-francis-xavier-university/accountancy-business-and-
management/other/accountancy-business-and-management-2/3064491/view