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Chapter 5 Cash Control Systems.

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Presentation on theme: "Chapter 5 Cash Control Systems."— Presentation transcript:

1 Chapter 5 Cash Control Systems

2 5.1 Checking accounts Pages Checking account– a bank account from which payments can be ordered by a depositor Endorsement– a signature or stamp on the back of a check transferring ownership Blank endorsement– only consist of endorser’s signature Special endorsement– an endorsement indicating a new owner of the check Restrictive endorsement – an endorsement restricting further transfer of a check’s ownership

3 DEPOSITING CASH page 119 LESSON 5-1

4 DEPOSIT RECORDED ON A CHECK STUB
page 119 LESSON 5-1

5 ENDORSEMENTS Blank Endorsement Special Endorsement
page 120 Blank Endorsement Special Endorsement Restrictive Endorsement LESSON 5-1

6 Preparing a check Write the date (month, day, year)
Page 121 Write the date (month, day, year) Postdated check – a check with a future date on it Write to whom the check is to be paid Write the amount in figures following $ Write the amount in words before the word Dollars Write the purpose of the check following the word For Sign the check

7 Preparing a check stub Write the amount of the check
Page 121 Write the amount of the check Write the date (month, day, year) Write to whom the check is to be paid Record the purpose of the check Write the amount of the check following amt this check Calculate the new checking account balance

8 RECORDING A VOIDED CHECK
LESSON 5-1 2/16/2019 RECORDING A VOIDED CHECK page 122 1 3 5 2 4 1. Record the date in the Date column. 2. Write the word VOID in the Account Title column 3. Write the check number in the Doc. No. column. 4. Place a check mark in the Post. Ref. column. 5. Place a dash in both the Debit and Credit columns. LESSON 5-1 GREEN

9 5.2 Bank Reconciliation Pages Bank statement– a report with deposits, withdrawals, and bank balances sent to a depositor by a bank Code of conduct – a statement that guides the ethical behavior of a company

10 BANK STATEMENT page 124 LESSON 5-2

11 BANK STATEMENT RECONCILIATION
page 125 1. Date 1 2. Check Stub Balance 2 5 3. Service Charge 4. Adjusted Check Stub Balance 6 3 7 5. Bank Statement Balance 6. Outstanding Deposits 8 4 9 7. Subtotal 8. Outstanding Checks 10 9. Adjusted Bank Balance 10. Compare Adjusted Balances LESSON 5-2

12 RECORDING A BANK SERVICE CHARGE ON A CHECK STUB
page 126 1. Write Service Charge $8.00 on the check stub under the heading “Other.” 2. Write the amount of the service charge in the amount column. 1 2 3. Calculate and record the new subtotal on the Subtotal line. 3 LESSON 5-2

13 JOURNALIZING A BANK SERVICE CHARGE
page 127 August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 2 1 4 3 1. Write the date. 2. Write the title of the account debited. Record the debit amount. 3. Write the title of the account credited. Record the credit amount. 4. Write the source document number in the Doc. No. column. LESSON 5-2

14 Recap: 1. What account is a bank service charge journalized?
2. What does it mean if a deposit or check is OUTSTANDING? 3. Are outstanding checks added or subtracted from the adjusted bank balance side of the bank reconciliation?

15 5.3 Dishonored Checks & Electronic Banking
Pages Dishonored check– a check that a bank refuses to pay Electronic funds transfer (EFT) – a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents Debit card – a bank card that automatically deducts the amount of a purchase from the checking account

16 RECORDING A DISHONORED CHECK ON A CHECK STUB
page 129 1. Write Dishonored check $ on the line under the heading “Other.” 2. Write the total of the dishonored check in the amount column. 3. Calculate and record the new subtotal on the Subtotal line. 1 2 3 LESSON 5-3

17 JOURNALIZING A DISHONORED CHECK
page 130 November 29. Received notice from the bank of a dishonored check from Campus Internet Café, $70.00, plus $35.00 fee; total, $ Memorandum No. 55. 2 4 1 3 1. Write the date. 2. Write the title of the account debited. Write the debit amount. 3. Write the title of the account credited. Write the amount credited. 4. Write the source document number in the Doc. No. column. LESSON 5-3

18 JOURNALIZING AN ELECTRONIC FUNDS TRANSFER
page 131 September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10. 2 1 4 3 1. Write the date. 2. Write the title of the account debited. Record the amount debited. 3. Write the title of the account credited. Record the amount credited. 4. Write the source document number in the Doc. No. column. LESSON 5-3

19 JOURNALIZING A DEBIT CARD TRANSACTION
page 132 September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12. 2 1 4 3 1. Write the date. 2. Write the title of the account debited. Record the amount debited. 3. Write the title of the account credited. Record the amount credited. 4. Write the source document number in the Doc. No. column. LESSON 5-3

20 5.4 Petty Cash Pages Petty cash – an amount of cash kept on hand and used for making small payments Petty cash slip – A form showing proof of a petty cash payment

21 ESTABLISHING A PETTY CASH FUND
page 134 August 19. Paid cash to establish a petty cash fund, $ Check No. 8. 2 1 4 3 1. Write the date. 2. Write the title of the account debited. Record the amount debited. 3. Write the title of the account credited. Record the amount credited. 4. Write the source document number in the Doc. No. column. LESSON 5-4

22 MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP
page 135 LESSON 5-4

23 REPLENISHING PETTY CASH
page 136 August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $ Check No. 12. 2 1 4 3 1. Write the date. 2. Write the title of the first account debited. Write the debit amount. Write the title of the second account. Record the debit amount. 3. Write the title of the account credited. Record the credit amount. 4. Write the source document number in the Doc. No. column. LESSON 5-4


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