1. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Chapter 19 Banking Procedures

2. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Banking Online banking Mobile banking Automated teller machines (ATM) Telephone banking Mail banking

3. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Bank Accounts Checking Savings Overdraft checking Special checking

4. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Currency Paper bills and coins

5. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Types of Checks Cashier’s Certified Electronic Limited check Money order Postdated check Stale check Traveler’s check Voucher check

6. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Check Components Date Words of negotiability Payee Numeric amount Written amount Financial institution Signature

7. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Check Endorsement Blank endorsement – Signature only – Should not be used until check is about to be cashed Restrictive endorsement – Used to endorse checks as they are received – “Pay to the order of”

8. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Accepting Checks Do not accept: – Third party checks – Checks marked “paid in full” – Money order with more than one endorsement

9. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Common Check Writing Errors Written and numeric amounts do not match Wrong date Unsigned checks Signature does not match Alterations or modifications © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Preparing Checks Must have five essential factors – Date – Payee – Numeric and written amounts – Payer signature Must fill out check register

11. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Bank Deposits Sort and total currency Sort and enter checks Prepare the deposit slip

12. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Preparing the Deposit Slip

13. Copyright ©2012 Delmar, Cengage Learning. All rights reserved. Bank Statements Provide a summary of financial transactions over a period of time Mailed or emailed to account holder monthly Reconcile the bank statement each month