QUARTERFABM

1: MELC #12-15
2 LEARNER’S PACKET # 2 ( Week 8)

W
Demonstrate an understanding of the types of bank
accounts, basic transactions, and documents related
Content Standards to bank deposits and withdrawals.
Performance Standards Share examples of bank account forms and
documents in class and discuss their uses and
importance.
Most Essential Learning
Competencies (MELC’S) Learner’s Packet
1.Identify the types of bank accounts normally No. of days Teaching
maintained by a business. Dates
(ABM_FABM12-IIc-5) 4
2. Prepare bank deposit and withdrawal slips.
(ABM_FABM12-IIc-7)
4. Identify and prepare checks. (ABM_FABM12-
IIc-8)
5. Identify and understand the contents of a
bank statement. (ABM_FABM12-
IIc-9
REMINDER: WRITE ANSWERS TO THE ACTIVITY SHEETS ON an A4 BOND PAPER.

What is it?

TYPES OF BANK ACCOUNTS NORMALLY MAINTAINED BY A BUSINES

One very important aspect of doing business is handling cash, maintaining and managing it. That’s
the very reason why banks exist, business maintains a bank account for the safekeeping, convenience, and
security of their cash.
Do you know that there are different ways on how banks manage your money?
Business usually maintains two types of account: (1) savings account , and (2) checking or current
account.
A. Savings Account
• Intended to provide an incentive for the depositor to save money.
• Depositor can make deposits and withdrawals using the form provided by the bank.
• Usually has higher interest rate than a checking account or a current account.
• Has a passbook where transactions are logged in a small booklet that the depositor keep
NOTE: Some accounts are charged a fee if the balance falls below minimum requirements.
i. Other types of savings account aside from the regular savings
Time deposit account (or a certificate of deposit account) 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fixed-term and can be withdrawn only after the lapse of the agreed period and by giving notice to the bank.
This account may be withdrawn also anytime however the bank usually charges penalties for breaking the
contract. This type of account yield high interest.
ii. Automated Teller Machine (ATM) is an 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 This is a 24 hour teller machine and the funds can be withdrawn anytime.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 still withdraw your
funds.

B. Checking or Current Accounts characteristics

• Money can be withdrawn through issuance of a check
• It usually allows numerous withdrawals and unlimited deposits.
• The interest rate is usually lower as compared to a savings account.
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• The account holder or depositor is provided at the end of the month a bank statement showing all the
deposits made, checks paid by the bank, and then balance of the account.
• The depositor is given easy access to the funds.

REQUIREMENTS TO OPEN AN ACCOUNT

The bank requires certain documents such as valid identification card and will ask to fill-up the forms
prepared by the bank if you will open an account with a bank. Upon approval of the application to open an
account, the bank will give the depositor his account number to be used in account holder in his bank
transactions

1. BANK FORMS
Bank deposit and withdrawal slips
A withdrawal slip and deposit slip are written orders to the bank.
a. Withdrawal Slip – used to take out money from the bank.
Without a withdrawal slip, the bank will not allow account holder to get money from the account.
Required information in the withdrawal slip:
• Account Name - the name of the depositor
Teacher Tips:
• 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.
NOTE: Amounts are indicated in words and in figures.

. Most important part

account part. For representative

• 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.
If a depositor cannot attend personally to withdraw the funds, he may authorize a representative by indicating
the name of the representative in the space provided and the representative must sign. Representative needs
to bring a valid identification card upon withdrawal otherwise the bank will not allow the withdrawal.

b. Deposit Slip - used to put in money in the depositors account.

The bank provides deposit slip that the depositor will fill up every time the depositor will put in money to his
account.
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 inside the passbook.
• Account Number – this is a unique identifier of the account maintained by the depositor.
• Date of Deposit, Type of Account, Currency, and
• 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 deposit, the breakdown of the cash is usually

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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.

IDENTIFY AND PREPARE CHECK

c. 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 drawer, has a transaction banking
account where his money is held and 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.

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.
Illustration:

Drawer

Payee
Cross
Check Drawee

Notes:
Check which a bank will not accept and exchange for money or payment because it was written more than a certain number of months ago is called
STALE check. In the Philippines a check becomes stale if it exceed 6 (six) months from the date of the check.
CROSS CHECK - marked to specify an instruction about the way it is to be redeemed. that it must be deposited directly into an account of the payee.
Done by writing two parallel lines on the upper left portion of the check.
A cross check cannot be encash over the counter by the payee but should be deposited to the payees account.

Bank statement - a statement furnished by the bank to the depositor showing the movement of the account.
It contains all the withdrawals, bank charges, deposits, interest earned and balance of account after every
transaction.
Date column indicate the date the transaction was made.
Check number indicates the details of the check paid by the bank.
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Transaction code is normally a bank code for the transactions.
Debit column represents all charges or deduction made by the bank to your account.
Credit column represents the deposits or additions to your account that was made by the bank.
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 Check - (Not Sufficient Fund) – deposited check from a customer that “bounces” due to insufficient
funds. Specifically referred to 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.
Bank statement received from the bank is compared with the accounting records of the business referred to as bank
reconciliation. The banks include in the bank statement the photocopies of checks cleared or paid by the bank for that
particular month.

Transaction
Code

Check
Number

What is more?

ACTIVITY8.1: Fill in the blank. Supply the correct missing word to complete the sentence. (10 points)
1. The entity who makes the check is the _______________.
2. It is a debit memo issued by the bank for deposits due to insufficient fund caused by checks not yet
cleared by the bank.
3. The most important part of the withdrawal slip that allows account holder to withdraw money from
his/her account is _________________. Signature of depositor
4. - 5 _______ and ______ are written orders from the bank used to take out money or put money in the
bank.
5. The type of account that allows unlimited deposits and numerous withdrawals is ____.
6. _________ is a unique identifier assigned to an account holder in banks.
7. At the end of each month, the bank provides each depositor a bank statement that showing the
________ of each transactions for the period.
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 8. The advantage of __________________ is that funds can be withdrawn anytime.
9. ______ is the one being paid to.
10. A check written more than six months ago cannot be accepted by the bank because it is a ____ check.

ACTIVITY 8.2: (15 points)

Direction: Fill out the following bank forms completely and accurately.

1. Check

2. Withdrawal slip

3. Deposit slip

Note: Assume that you are the account holder. For the account number, you can use your LRN. For
the date, use the scheduled date of our class.

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 What I have learned?
ACTIVITY8.3: THINK and WRITE
Think and reflect on the activities that you did, then write your reflection and insights.
Guide questions: (15 points)
1. While answering the activities, what are your realizations as to why banks exist and how cash deposits
are being handled for individuals including business owners.?
2.What areas of the activity do you consider difficult and easy to answer? Why?
3.Explain your most important learnings from the topic and how can you apply the learnings in your
situation today?
DIRECTIONS:
a. Limit your answers in FIVE (5) sentences for each question.
b. Share your own thoughts and reflections honestly.
c. Points will be deducted from answers derived from the internet.

Prepared: Checked: Noted:

MA. AURORA C. ALONZO MARICRIS G. PETELO LIBRADA A. VIDALLON

Subject Teacher ABM Subject Coordinator Curriculum and Instruction Coordinator

“Specific instructions are embedded in this packet, hence WHLP is not needed.”