ST.

JOHN PAUL II INSTITUTE OF TECHNOLOGY

TRAINING ASSESSMENT AND LEARNING CENTER INC.
Carmen West, City of Rosales, Pangasinan / Sevilla, City of San Fernando, La Union

12
FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT:

BASIC ACCOUNTING 2
Second Quarter –

(Week 11)

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 Fundamentals of Accountancy,
Subject: Business, and Management: Basic
Accounting 2
Grade & Section: ABM Grade 12
Module No.
Week: Week 11
Subject Teacher: Ms. Inah Cruz

Objetcives:

 Identify the types of bank accounts normally maintained by a business;

 Distinguish the difference of the types of bank accounts;
 Differentiate bank’s deposits and withdrawal slips; and
 Prepare bank deposits and withdrawal slips

Content:
 Lesson 1 – Different Kinds of Bank Accounts
 Lesson 2 – Bank Deposits and Withdrawals Slips

This module was designed and written with you in mind. It is here to help you master
the basic documents and transactions related to bank deposit. The scope of this
module permits it to be used in many different learning situations. The language
used recognizes the diverse vocabulary level of students. The lessons are arranged to
follow the standard sequence of the course. But the order in which you read them
can be changed to correspond with the textbook you are now using.

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 Chapter
8 Different Kinds of Bank Accounts

Assets are resources owned by a company and in order to safeguard its assets
and to ensure that company resources are not misused or misappropriated, the
company implements controls. Cash is an important asset of a company and it is also
one of the easily misappropriated assets if not properly safeguarded. Bank accounts
are at the center of critical control policies for cash. All cash receipts should be
deposited in the bank at the end of the day. Very minimal amounts should be left in
the company’s premises overnight. Also, cash payments should be settled through
bank check and processes through the voucher system. Given the company’s extensive
use of the banking system, we will discuss the different kinds of bank accounts
usually maintained by a business in this lesson.

In the previous lesson, you have learned about the preparation and analysis
of financial statements of a service and merchandising business using horizontal and
vertical analyses, and financial ratios. Your knowledge and skills in the analysis of
financial statements will aid the future entrepreneurs in you in making sound
economic decisions.

In Activity 1, you were able to familiarize and linked yourself with banking
and bank accounts. In this part of the module, you will further find out the definition
and examples of the different kinds of bank accounts usually maintained by a
business or by an individual.

SAVINGS ACCOUNT

 The simplest bank account is the savings account. The business deposits money

in the bank for safekeeping.

 The account earns minimal interest and may have a minimum balance

requirement

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  Some savings accounts are linked with passbook.

o Passbook – is a booklet used to record bank transactions on a savings account.

It contains a chronological record of deposits, withdrawals and interest
earnings.
 Some savings account come with an ATM card
o ATM Card – are used for making transactions in Automated Teller Machines
(ATM). Some ATM cards also functions as debit cards.
o Debit Cards – are linked with the VISA or MasterCard networks that allow
depositors to use their cards to make payments in various establishments.

 Some banks give their depositors internet banking privileges. This allows them to
access their statement of accounts and make payments online

 Withdrawals from savings account maybe made over-the-counter, ATMs, online

payments and debit card transactions.

CHECKING or CURRENT ACCOUNT

 A checking account is like a savings account with an added feature – the depositor
can issue bank checks

o Bank checks – is an acceptable form of payments. It allows depositors to pay

large sums using one sheet of paper instead of carrying currencies. It can also
provide additional control feature that prevent misappropriation of cash. A
payee can be specifically named such that no other person or entity can use it.
Moreover, a check can be “crossed” or “restricted for payee’s account only”.
This means that the check will only be accepted for deposit to the payee’s
bank account and cannot be encashed over the counter.

 Checking accounts rarely earn interest because of the fast turnover of

transactions. To cater their customers’ demand for better interest rates, most
banks offer hybrid accounts. These are combinations of savings and checking
account. There are ATM-passbook checking accounts. There are also hybrid
accounts that earn higher interest rates but limits check withdrawal to
a few checks a month such as premium deposit account.

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TIME DEPOSITS AND OTHER INVESTMENT ACCOUNTS

Time Deposit

Time deposit accounts are investment placements.

The depositor agrees not to withdraw the funds over the contracted period in
exchange for fixed interest rates that are higher than deposit rates.
Time deposits are evidenced by certificates of time deposits (CTD)

Unit Investment Trust Fund (UITF)

UITF allows investors to gain the benefit and suffer the losses of investments
in stocks and bonds without directly investing in those securities.
Investors purchase units of the pooled funds
The investor earns income not through interest but on the increase in fair
market value of the pooled fund.

Remember!

 Savings and checking accounts are the two accounts usually

maintained by business
 Depending on its banking license, the bank can offer other
forms of investment vehicles to their clients. There are mutual
funds, variable insurance, government securities and
corporate notes, among others. We limit our discussion to
time deposits and UITF.

Notes to the Teacher

The brief discussion above provided enough information for the
students to do the activities on the succeeding pages. Such activities
are designed for individual preparation and lesser teacher
intervention.

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Name: Date:

Grade/Sec: Score:

Activity 1

Directions: Choose the letter of the best answer and write it on a separate
sheet of paper.

1. Which of the following does NOT pertain to a checking account?

a. Allows the depositor to issue bank checks
b. Intended to provide an incentive for the depositor to save money
c. Rarely earn interests because of the fast turnover
d. It is like savings account with added feature

2. Which of the following is NOT an example of bank account maintained by a

business?
a. Saving account c. Time deposit account
b. Checking account d. Bank check

3. Money held under this type of account can be withdrawn through issuance of
check.
a. Savings account c. Checking account
b. Time deposit account d. Unit investment trust funds

4. Which of the following best describes time deposit account?

a. It is an investment placement
b. Allows the depositor to issue bank checks
c. The purpose of the account is for safekeeping
d. Investments in stocks and bonds without directly investing in those
securities

5. Which of the following does NOT describe the reason for the opening of bank
account of a business?
a. Cash is easily misappropriated if not properly safeguarded
b. Bank accounts are at the center of critical control policies for cash
c. Cash payments should be settled through bank checks
d. Investments in stocks and bonds without directly investing in those
securities

6. Which of the following bank accounts earns lower interest rate than the other?
a. Savings account c. Checking account
b. Time deposit account d. Unit investment trust funds

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7. This type of account is held for a fixed period of time and can be withdrawn only
after the lapse of the fixed-term
a. Savings account c. Checking account
b. Time deposit account d. Unit investment trust funds

8. Which of the following is TRUE?

a. A passbook is a booklet used to record bank transactions on a checking
account
b. A withdrawal slip is used only for passbook savings account
c. A savings account holder is not allowed to make withdrawals through a
withdrawal slip
d. A bank deposit slip is validated by the teller to signify releasing of the
fund

9. Which of the following is FALSE?

a. The depositor should always be the holder of the account
b. Only the account holder may withdraw from his account
c. The bank deposit slip should be validated by the teller that accepts it
d. The signature of the account holder is required in the withdrawal slip

10. Which of the following bank form is used when a depositor wants to put
money on his/her account?
a. Deposit slip c. Bank check
b. Withdrawal slip d. Indemnity form

11. Which of the following document is used when a depositor wants to get money
from his/her savings account?
a. Deposit slip c. Bank check
b. Withdrawal slip d. Indemnity form

12. Which of the following is FALSE regarding the KINDS of deposit slip?
a. There are two kinds of deposit slip, cash deposit slip and check deposit
slip
b. Some banks merge two kinds of deposit slip (cash & check) into one
c. For check deposit, the check, check number and issuing bank should be
indicated
d. The depositor is required to indicate the denomination of the check
deposit

13. Which of the following information is NOT needed in filling-out the deposit slip?
a. Account number c. Date of transaction
b. Account name d. Signature of the depositor

14. Which of the following two bank accounts usually maintained by a business?
a. Savings and time deposit account
b. Savings and checking account
c. Checking and time deposit account
d. Time deposit and unit investment trust funds account
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 15. Which of the following is the MOST important part in a withdrawal slip?
a. Type of account c. Signature of the depositor
b. Currency d. Amount to be withdrawn

Activity 2

Below activity will help you familiarize yourself with our first lesson on this
module.

Direction: On a separate answer sheet, give what are being asked in each item.

1. Enumerate the bank that are existing within

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 Activity 3-Net Bank On

Directions: Visit a bank in your locality or go to the website of any bank of your
choice. Make a report on the following offering of the bank. Focus on the features of
the account, interest rates offered, privileges and limitations of the account.
1. Deposit accounts
2. Investment accounts
Use the following matrix on your report. You will be graded base on the rubrics that
follows.
Name of Bank:
Privileges
Sample
Features Interest rates and
Account
Limitations
Deposit
accounts
Investment
accounts

Note: If you happened to visit a bank, secure also a copy of their deposit slips
and withdrawal slip. Also take a picture of you during your visit. You will be
needing this for the next activity. See Activity 4 for more details.

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 Chapter
9 Bank Deposits and Withdrawal Slip

There is a corresponding bank form for almost every transaction with the
bank. Take for example the opening of bank account. The forms to be filled and
signed are numerous. There are account opening forms, signature cards, investor
suitability forms and indemnity forms. Do not worry, we will not discuss all of these
forms here. We will limit ourselves with the deposit slip and withdrawal slip.
Moreover, we will only look at the basic format of these forms. Most banks have
their own formats which are tailored to their needs.

In the previous lesson, you have learned the different types of bank account
usually maintained by a business. It can have deposit accounts such as savings
and checking account which are transactional in nature. Companies maintain
savings account as an incentive to save money; and checking account in order to
use bank checks. Also, companies can also maintain investment accounts such as
time deposit, unit investment trust funds (IUTF) and other investments that offer
higher interest rates.

In this lesson, we will proceed with the different bank forms used by banks
for every transaction with them; however we will focus only with the deposit slip
and withdrawal slip.

DEPOSIT SLIP

 The bank provides deposit slip that the depositor will fill-out every time the
depositor will put in money to his account. The usually required information in a
deposit slip are:
o Account Name – this is the complete name of the depositor that is reflected
in the records of the bank. If it has a pass book, the account name is indicated
on first page inside the passbook.
o Account Number – this is a unique identifier of the account maintained by
the depositor.
o Date of Deposit
o Type of Account
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 o Currency
o Amount in words and in figures – the amount that the depositor wishes to
put into his account. The amount to be deposited maybe in form of cash or
check.
 There are two kinds of deposit slip, namely cash deposit slip and check deposit
slip. Some banks merge these two into one.
o For check deposit, the depositor will indicate the amount of the check,
check number and issuing bank.
o For cash deposits, the depositor is required to indicate the denomination of
the cash
 The depositor may or may not be the account holder
 A bank deposit is validated by the teller that accepts the deposit. A validation is a
receipt printed on the deposit slip to signify that the deposit was received by the
bank.

Example:

Eybicee Company made two deposits on May 18, 2020 in its Co-Vac Bank Checking
or Current Account with account number 000123455589. One was a cash deposit
for P55,000 composed of 35 pieces of P1,000 bill and 40 pieces of P500 bill. The
second deposit was for P580,761.82 composed of two checks issued by BDO and
Metrobank.

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 Figure 1. shows the deposit slips for these transactions.

CASH DEPOSIT SLIP CHECK DEPOSIT SLIP

This serves as your receipt when machine validated

This serves as your receipt when machine validated

Machine Validation
Current Account Others Peso Others
Savings Account US Dollar
Machine Validation Account Number: Date:
̸ Current Account Others Peso Others 000123455589 May 18, 2020

Savings Account US Dollar Account Name:

Eybicee Company
Account Number: Date:
000123455589 May 18, 2020 Please use separate slip/s for each type of check
Account Name: Type of Local Out of Town Others Bank's MC
Eybicee Company Check Regional On Us Manager's Check (MC)
Cash Deposit Breakdown Check Deposit Breakdown ( please endorse each check properly)
Denomination Pieces Amount Bank/Branch Check Number Amount
P 1,000 35 35,000 BDO-Katipunan 0000193847 234,987.56

P 500 40 20,000 M etro bank-Co mmo nwealth 000096432 345,774.26

TOTAL CASH DEPOSIT 55,000 TOTAL CHECK DEPOSIT 580,761.82

Figure 1: Filled-out Deposit Slip

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Withdrawal Slip

 Withdrawal slip documents the withdrawal from a passbook account. It is a bank

form filled up by the account holder. The required information in the withdrawal
slip are:
o Account Name – the name of the depositor
o Account Number – the unique identifier given by the bank for every
account maintained
o Date of the withdrawal
o Type of account – savings or current
o Currency
o Amount to be withdrawn – the amount that the depositor wishes to withdraw
from his account. The amounts in words and in figures are indicated.
o Signature of the Depositor
 Only the account holder may withdraw from his account. Therefore, the signature
of the account holder is required in the withdrawal slip. The bank will only release
the funds after verifying the authenticity of the account holder’s signature by
comparing it against the signature in the bank records submitted during the
opening of the account

 Upon release of the funds, the teller will again require the account holder to sign
the “received by” portion to signify that the account holder has received the correct
amount

 Withdrawal slip is used only for passbook account. A checking account holder is
not allowed to make withdrawals through a withdrawal slip. A purely ATM account
holder is required to use the machine and cannot withdraw over the counter.

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Example:

Eybicee Company made a withdrawal of P105,055 from his savings account

(SA#000123455592) at Co-Vac Bank. The withdrawal slip or this transaction
is shown in Figure 2 below.

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Name: Date:

Grade/Sec: Score:

Activity 4

Directions: Use the deposit slips and withdrawal slip on the next page to
answer the following problems.
 You work for Exwayzey Company. You were tasked to prepare the
deposit slips and withdrawal slip for today, June 28, 2020. You will use
the company’s Co-Vac Bank accounts.

 Deposit to checking account number 000123456789. The deposits are

composed of the following:

o Cash deposit of P145,670 – composed of 100 pieces of P1,000

bills, 80 pieces of P500 bills, 25 pieces of P200 bills, 6 pieces of
P100 bills, 1 piece each of P50 bill and P20 bill

o Check deposit of P567,890 – composed of 3 checks.

 BPI-Katipunan branch with check number 00056743 for
P235,670
 Union Bank-Ortigas branch with check number 00087654
for P125,688
 BDO-Greenhills branch with check number 00056799 for
P206,532

 You were also tasked to prepare withdrawal slip to be signed by the

company president and treasurer.

o Prepare a withdrawal slip from bank account #000123456792 for

the amount of P543,900. This will be used to pay the employee
payroll for June 30.

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 Activity 5-The Case Cracker

Let us reinforce the skills/knowledge that you have gained from this lesson by doing
the next activity.

This activity will be a help in developing your knowledge in the kinds of bank accounts
and the preparation of deposit and withdrawal slip.
Case 1:

True or False: Read each sentence carefully and determine whether the statement is
True or False. Write your answers in the space provided before the number.

1. The account holder may issue a bank check from a savings account.
2. The account holder may use the withdrawal slip to get money from
his checking account.

3. Time deposit accounts are investment in nature.

4. Time deposit normally has a fixed interest rate and fixed placement
period.
5. The depositor may or may not be the account holder
Case 2:

You are an OJT at Covid Marie Enterprise. You are assigned to prepare the deposit
slips and withdrawal slip for June 29, 2020. The company maintains its account at
Co-Vac Bank with Savings account #000123456777 and Checking account
#000123456888
The following are presented to you.

 Bills composed of 20 pieces P1,000; 50 pieces P500; 10 pieces P100; 2 pieces

P50 and 3 pieces 20.
 Coins composed of 10 pieces P10; 3 pieces P5
 Check of BPI-Rizal Avenue branch with check number 0004321 for P97,645.
 Check of LBP-Brooke’s Point branch with check number 0001234 for
P45,632.
 Amount to be withdrawn is P87,543.

Prepare the deposit slips and withdrawal slip of Covid Marie Enterprise for
June 29, 2020. All cash and checks are to be deposited in the Checking
account. Use the deposit slips and withdrawal slip on the next page to answer
Case 2.

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 CASH DEPOSIT SLIP
CHECK DEPOSIT SLIP

This serves as your receipt when machine validated

This serves as your receipt when machine validated

Machine Validation
Current Account Others Peso Others
Savings Account US Dollar
Machine Validation Account Number: Date:

̸ Current Account Othe rs Peso Others

Account Name:
Savings Account US Dollar
Account Number: Date:
Please use separate slip/s for each type of check
Account Name:
Type of Local Out of Town Others Bank's MC
Check Regional On Us Manager's Check (MC)

Cash Deposit Breakdown Check Deposit Breakdown ( please endorse each check properly)
Bank/Branch Check Number Amount
Denomination Pieces Amount

TOTAL CHECK DEPOSIT

TOTAL CASH DEPOSIT

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 WITHDRAWAL SLIP

Currency Pes o US Dol l a r Others

Account Number: Date:

Account Name:

Amount (in words)

(In figures)

W it h d r aw al Th r u R ep r esen t at iv e
(Please cross-out if this portion is not applicable)

I/We hereby autho rize who se

signature appears belo w to efect this withdrawal fo r and in my behalf.

Signature o f Representative

I / W e d ec lar e u n d er t h e p en alt ies o f p er j u r y t h at m y / o u r c o -

d ep o sit o r / s is/ ar e liv in g.

Signature o f Depo sito r/s

Verified by: Approved by:

Cash Breakdown

Denomination Pieces Amount

TOTAL
CASH
Payment Received By:

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 Activity 6

Directions: Fill in the missing information, accounts or description to complete the thought of
each paragraph or sentence.

1. Cash is an important asset of a company that can be easily misappropriated. To

safeguard the cash, a company usually maintains deposit accounts such as , a
simplest form of bank account. It can also open a , so that it can
issue bank checks instead of carrying large sum.

2. A company can also maintain investment account so that there will be no idle
cash. A bank offers wherein a company agrees
not to withdraw the funds over a contracted period in exchange for fixed interest
rates. A company can also indirectly invest in stocks and bonds through
offered by banks.

3. There is a corresponding bank form for every transaction with the bank.
is used to document a deposit transaction while
documents withdrawal from a passbook
account.

4. The following are the usually required information in a deposit slip: Account
Name, , Date of Deposit, ,
Currency, and .

5. In a withdrawal slip, is the most important part

for without it, the fund will not be released by the bank.

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 Activity 8

Directions: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.

1. Which of the following is NOT an example of bank account maintained by a business?

a. Saving account c. Time deposit account
b. Checking account d. Bank check

2. Which of the following best describes time deposit account?

a. It is an investment placement
b. Allows the depositor to issue bank checks
c. The purpose of the account is for safekeeping
d. Investments in stocks and bonds without directly investing in those
securities

3. Which of the following does NOT pertains to checking account?

a. Allows the depositor to issue bank checks
b. Intended to provide an incentive for the depositor to save money
c. Rarely earn interests because of the fast turnover
d. It is like savings account with added feature

4. Which of the following bank accounts earns lower interest rate than the other?
a. Savings account c. Checking account
b. Time deposit account d. Unit investment trust funds

5. Money held under this type of account can be withdrawn through issuance of check –
a. Savings account c. Checking account
b. Time deposit account d. Unit investment trust funds

6. This type of account is held for a fixed period of time and can be withdrawn only after
the lapse of the fixed-term
a. Savings account c. Checking account
b. Time deposit account d. Unit investment trust funds

7. Which of the following does NOT describe the reason for the opening of bank account
of a business?
a. Cash is easily misappropriated if not properly safeguarded
b. Bank accounts are at the center of critical control policies for cash
c. Cash payments should be settled through bank checks
d. Investments in stocks and bonds without directly investing in those
securities

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8. Which of the following two bank accounts usually maintained by a
business?
a. Savings and time deposit account
b. Savings and checking account
c. Checking and time deposit account
d. Time deposit and unit investment trust funds account

9. Which of the following bank form is used when a depositor wants to put
money on his/her account?
a. Deposit slip c. Bank check
b. Withdrawal slip d. Indemnity form

10. Which of the following document is used when a depositor wants to get
money from his/her savings account?
a. Deposit slip c. Bank check
b. Withdrawal slip d. Indemnity form

11. Which of the following is FALSE?

a. The depositor should always be the holder of the account
b. Only the account holder may withdraw from his account
c. The bank deposit slip should be validated by the teller that accepts it
d. The signature of the account holder is required in the withdrawal slip

12. Which of the following information is NOT needed in filling-out the deposit
slip?
a. Account number c. Date of transaction
b. Account name d. Signature of the depositor

13. Which of the following is the MOST important part in a withdrawal slip?
a. Type of account c. Signature of the depositor
b. Currency d. Amount to be withdrawn

14. Which of the following is TRUE?

a. A passbook is a booklet used to record bank transactions on a
checking account
b. A withdrawal slip is used only for passbook savings account
c. A savings account holder is not allowed to make withdrawals
through a withdrawal slip
d. A bank deposit slip is validated by the teller to signify releasing
of the fund

15. Which of the following is FALSE regarding the KINDS of deposit slip?
a. There are two kinds of deposit slip, cash deposit slip and check
deposit slip
b. Some banks merge two kinds of deposit slip (cash & check) into one
c. For check deposit, the check, check number and issuing bank
should be indicated
d. The depositor is required to indicate the denomination of the
check deposit

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