CHECKING

1
CHECKING ACCOUNTS
2
Parts of a Check
3
PARTS OF A CHECK
A Date B Check Number C Drawer D Magnetic Ink
CharactersProofing Number E Magnetic Ink
CharactersPersons Account Number F Magnetic
Ink CharactersRouting Number
A
G Amount of Check in Figures H Payee I Drawers
Name, Address, and Phone Number
A
B
I
A
G
H
C
F
D
E
4
PARTS OF A CHECK
A Date B Check Number H Write the name of the
person/company to whom you
are giving the check. Be careful to write
legibly and spell
correctly. G Begin close to the dollar sign and
print the amount of the check in figures very
legibly.
On the line below the Payee, start at the
beginning and write the amount in words.
Capitalize the first letter of the first word.
Use the word and to represent the decimal point.
Write the cents as a fraction. Do not write the
words dollars. C Sign your name
A
A
B
I
A
G
H
C
F
D
E
5

• Record the Balance Brought Forward

• Enter each check that is written at the time it
  is written!

• Enter the deposits
• With each entry calculate the new balance

No. Date Description Payment Deposit Balance 12
/01 Balance Fwd. 500.00 235 12/15 Lowes
93.00 407.00 12/20 Deposit 400.00 807.00
12/21 ATM 20.00 787.00
6

• Click the Cash Payments tab

• Enter journal entry for 12/16/98

• Click on Post

7
ENDORSEMENTS
Blank
Restrictive
For deposit only Your Name
Your Name
Special
Corrective
Pay to the order of Susie Smith Your Name
Wrong way
John Stewart John Stuart
Correct way
8
FEDERAL RESERVE BANK SYSTEM
Our Federal Reserve Bank!
9
Bank Reconciliation Activity

• Enter the checkbook balance

• Enter the bank statement balance

• Enter Bank charges
• Bank dishonored checks
• Outstanding checks

Balanced

• Enter the outstanding deposits

• Calculate to get the adjusted balances