chapter 6 cash control systems. checking account deposit slip check stub endorsements

Chapter 6

Cash Control Systems

Checking Account

• Deposit Slip• Check Stub• Endorsements

Checking Account

• Deposit Slip• Check Stub• Endorsements

Whenever you have a deposit you have to fill it out also in yourCheckbook so that things may stay in balance.

Please look at page 120 in your textbook

Checking Account

• Deposit Slip• Check Stub• Endorsements

• Three types of endorsements examples page 121

• Blank Endorsement− Only the endorsers signature

• Special Endorsement− Pay to the order of

• Restrictive Endorsements− Limits the use of the check to whatever purpose is

stated in the endorsement

Writing a check

Roadrunner Delivery Service NO. 101ADDRESSCITY, STATE, ZIP DATE

PAY TO THEORDER OF -$

DOLLARSNAME OF THE BANK

MEMO45658 5 6 5 2 65 48 9 46 6

-$ NO 101 Roadrunner Delivery Service NO. 101DATE ADDRESS

CITY, STATE, ZIP DATETOFOR PAY TO THE

DOLLARS CENTS ORDER OF -$ Bal brgt for

Add Dep DOLLARSNAME OF THE BANK

Total

Less Check MEMOBal Carr For. 45658 5 6 5 2 65 48 9 46 6

Please try problems on page124

• Section 6-2 Bank Reconciliation

Bank Statement A financial form that tell you about

What is happening in your account and gives you a balance.

You get this from checkbook

Any charges the bankCharges you ATM etcBank service charges

This is the balance on Bank statement

Deposit that have not shown up

Checks you have written but not shown up

This total = This total

Bank Service Charge

• Banks occasionally charge you for doing things at their bank this is one of the instances.• Two places it has to be placed in

order to make sure things are correct.• Bank Check Stub

The amount of the service charge has to be written in on the Check Stub

Service Charge 3.00

3.00

It also needs to be written in on the bank reconcilliation

Service Charge 3.00

3.00

Dishonored Check

• When a check is written but there is not enough money in the bank to cash the check.• It is also recorded

in the Check StubDishonored Check

Nov. 29 Received notice from the bank of a dishonored check from Learn N Play$35.00, plus $15.00 fee total, $50.00 Memo 55

General Journal Page 1

Date Account Title Doc No Post Ref Debit Credit

Aug 29 Accts Rec. - Learn & Play M55   50  

    Cash       50

Other methods of paying and receiving cash

• Electronic Funds Transfer• EFT – automatically placed into your

account

• Debit Card• Automatically deducted from your

account

Electronic Funds Transfer

General Journal Page 1

Date Account Title Doc No Post Ref Debit Credit

Aug 29 Accts Pay - Kelson Ent M 10   350  

    Cash       350

Debit Card Transfer

General Journal Page 1

Date Account Title Doc No Post Ref Debit Credit

Aug 5 Supplies M12   24  

    Cash       24

• Please work on page 134• Work together

Part 3

• Petty Cash • Is extra cash that we leave to

someone to use for small items or items in case of emergency…….

Creation of the petty cash fund.• We need to show

that we took money out of our larger cash account and did something else with it.

General Journal Page 1

Date Account Title Doc No Post Ref Debit Credit

Aug 5 Petty Cash c8   200  

    Cash       200

Petty Cash Slip2.00 Supplies

Petty Cash Drawer$200

Petty Cash Slip4.00 MiscPetty Cash Slip

5.00 SuppliesEnd of the month we find that:Supplies $7.00Misc 2.00Total of 9.00So in our cash drawer we should $191We have to replenish the drawer With the money missing.

Creation of petty cash

General Journal Page 1

Date Account Title Doc No Post Ref Debit Credit

Aug 1Miscellaneous

Expense C8   2.00  

    Supplies     7.00

     Cash       9.00

• Problem 6-1,2,3,4,5• Problem 6-2 computer