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Chapter 19

Banking Procedures

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Banking

• Online banking• Mobile banking• Automated teller

machines (ATM)• Telephone banking• Mail banking

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Bank Accounts

• Checking• Savings• Overdraft checking• Special checking

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Currency

• Paper bills and coins

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Types of Checks

• Cashier’s• Certified• Electronic• Limited check• Money order

• Postdated check• Stale check• Traveler’s check• Voucher check

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Check Components

• Date• Words of negotiability• Payee• Numeric amount• Written amount• Financial institution• Signature

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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”

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Accepting Checks

• Do not accept:– Third party checks– Checks marked “paid in full”– Money order with more than one endorsement

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Common Check Writing Errors

• Written and numeric amounts do not match• Wrong date• Unsigned checks• Signature does not match• Alterations or modifications

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Preparing Checks

• Must have five essential factors– Date– Payee– Numeric and written amounts– Payer signature

• Must fill out check register

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Bank Deposits

• Sort and total currency• Sort and enter checks• Prepare the deposit slip

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Preparing the Deposit Slip

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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