Fabm 2-9

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Fundamentals of Accountancy, Business and Management 2 – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 5: Identification and Preparation of Checks and Bank Statement
First Edition, 2020
Republic Act 8293, section 176 states that: No copyright shall subsist in any work
of the Government of the Philippines. However, prior approval of the government agency or
office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.
Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names,
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Every effort has been exerted to locate and seek permission to use these materials from
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ownership over them.
Published by the Department of Education, Division of Palawan

Schools Division Superintendent:
Natividad P. Bayubay, CESO VI
Assistant Schools Division Superintendents:
Loida P. Olavario, Ph.D.
Felix M. Famaran
Development Team of the Module

Writers: Bella Velasco, Neggie Diorda
Language Editor: Marianne R. Valdez
Reviewers: Eric N. Quillip
Management Team: Aurelia B. Marquez
Rodgie S. Demalinao
Eric N. Quillip
Printed in the Philippines by ________________________
Department of Education – MIMAROPA Region – Schools Division of Palawan
Office Address: PEO Road, Bgy. Bancao-Bancao, Puerto Princesa City

Telephone: (048) 433-6392
E-mail Address: palawan@deped.gov.ph
Website: www.depedpalawan.com
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Introductory Message
For the facilitator:
Welcome to the Fundamentals of Accountancy, Business and Management 2 –

Grade 12 Modular Distance Learning (MDL) Self-Learning Module on Identification
and Preparation of Checks and Bank Statement!
This module was collaboratively designed, developed and reviewed by educators

from public institution to assist you, the teacher or facilitator in helping the
learners meet the standards set by the K to 12 Curriculum Most Essential Learning
Competencies (MELCs) in the “New Normal” situation while overcoming their
personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.
In addition to the material in the main text, you will also see this box in the body of
the module:
Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.
As a facilitator, you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.
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For the learner:
Welcome to the Fundamentals of Accountancy, Business and Management 2–

Grade 12 Modular Distance Learning (MDL) Self-Learning Module on Identification
and Preparation of Checks and Bank Statement!
This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.
This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.
What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In This is a brief drill or review to help you link

the current lesson with the previous one.
What’s New In this portion, the new lesson will be

introduced to you in various ways; a story, a
song, a poem, a problem opener, an activity
or a situation.
What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.
What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to process
what you learned from the lesson.
What I Can Do This section provides an activity which will

help you transfer your new knowledge or
skill into real life situations or concerns.
Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.
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Additional Activities In this portion, another activity will be given
to you to enrich your knowledge or skill of
the lesson learned.
Answer Key This contains answers to all activities in the

module.
At the end of this module you will also find:
References This is a list of all sources used in

developing this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!
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What I Need to Know
This module was designed and written with you in mind. It is here to help you
identify and prepare Checks and Bank Statement. 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.
The module is composed of one lesson, namely:

• Lesson 1 – Identify and Prepare Checks, Identify and Understand Contents
of a Bank Statement
After going through this module, you are expected to:

1. Identify and define parts of a check;
2. Prepare checks;
3. Identify key terms in a bank statement;
4. Prepare bank statement;
5. Explain the importance of checks and bank statement.
1
What I Know
Directions: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. It is a document that orders a bank to pay a specific amount of money from

a person's account to the person in whose name has been issued.
A. Bank Statement C. Deposit Slip
B. Check D. Withdrawal Slip
2. Who among the following is the recipient of the money?

A. Bank C. Drawer
B. Drawee D. Payee
3. What do you call the bank or other financial institutions where the check
can be presented for payment?
A. Bank C. Drawer
B. Drawee D. Withdrawer
4. Who is the drawer?

A. A person who makes the check.
B. A person who withdraws money.
C. A recipient of the money.
D. A bank that issues check.
5. Which among the following is NOT a content of a check?

A. Amount to be deposited C. Name of the Bank
B. Date D. Signature
6. Who signs the check?

A. Bank C. Drawer
B. Drawee D. Payee
7. What is a bank statement?

A. A statement to the depositor showing the movement of the account.
B. It contains all the withdrawals, deposits and balance of your account
after every transaction.
C. Indicates bank charges that were deducted by the bank automatically.
D. All of these.
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8. What does the debit column in bank statement represent?
A. All charges or deduction made by the bank to your account.
B. The deposits or additions to your account that was made by the bank.
C. Running balance after considering the effect of the transaction to your
account.
D. Indicates the details of the check paid by the bank.
9. What does the credit column in bank statement represent?

A. All charges or deduction made by the bank to your account.
B. The deposits or additions to your account that was made by the bank.
C. Running balance after considering the effect of the transaction to your
account.
D. Indicates the details of the check paid by the bank.
10. What do you call the monthly fee charged by the bank for its services?
A. Bank Service Charge C. Deductions
B. Bank Service Fee D. Interests
11. Where does interest income of a checking account recorded?

A. Balance Column C. Debit Column
B. Credit Column D. Transaction Code
12. Which of the following is NOT an example of transaction code?

A. Deposit C. Withholding Tax
B. Interest D. 08/20/2020
13. Why do companies issue checks?

A. Payment of debts C. Payment of Supplies
B. Gifts D. All of these.
14. What will happen if there are any erasures in the check?
A. The check will be accepted by the bank.
B. The erasures should be signed by the bank.
C. The check will not be accepted by the bank unless having it signed by the
drawer.
D. The drawer will pay for the rejected check.
15. In the Philippines a check becomes stale if it exceeds _____ months from the
date of the check.
A. 1 C. 5
B. 3 D. 6
3
Identify and Prepare Checks

Lesson
Identify and Understand
1 Contents of a Bank
Statement
Most of the businesses today are using checks for the issuance of money to pay for
supplies, merchandise and any other payments without carrying large amount of
cash. Cash is susceptible to theft, a reason why do companies choose to pay in
checks rather than in cash.
Movement of checking accounts can be monitored through a bank statement. A

depositor can immediately determine the balance of his account.
What’s In
In the previous lesson, you have learned the parts of deposit and withdrawal slip. A
withdrawal slip and deposit slip are written orders to the bank. These slips are
used to take out money or to put in money to the depositors account. The bank
provides deposit slip that the depositor will fill up every time the depositor will put
in money to his account. On the other hand, without a withdrawal slip, the bank
will not allow you to get money from your account. There are instances that the
depositor cannot attend personally to withdraw the funds, he may authorize a
representative by indicating the name of the representative in the space provided
and the representative must sign. There is a need for the representative to bring a
valid identification card upon withdrawal otherwise the bank will not approve the
withdrawal.

Begin the lesson by letting the students do Activity No 1. Let the
students answer the given worksheet which will help them
familiarize with the key terms of functions, roles and skills
required of a manager.
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What’s New
Below activity will help you check how much you know about checks and bank
statement.
Activity 1: Label Each Part

Direction: Label the part of a check. Choose the answer in the box below.
1.
2.
12/12/2020
Juan Dela Cruz
1,000. 00
One Thousand Peos Only
3.
4.
Drawee Drawer
Payee Check Number
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What is It
In Activity 1, you were able to label the parts of a check. In this part of the module,
you will know better the parts of the check and be familiar with the contents of a
bank statement.
Check
A check is a document that orders a bank to pay a specific amount of money from a
person's account to the person in whose name the check has been issued. The
person writing the check, the drawer, has a transaction banking account where his
money is held. The drawer writes the various details including the monetary
amount, date, and a payee on the check, and signs it, ordering his bank, known as
the drawee, to pay that person or company the amount of money stated. Checks
are a type of bill of exchange and were developed as a way to make payments
without the need to carry large amounts of money. The check number is usually
indicated in the upper right portion of the check.
Points to Remember:
• If there is any erasure in a check, the check will not be accepted by the
bank. The erasures should be signed by the drawer.
• Companies issue checks due to the following:
Payment of debts
Gifts
Payment of supplies
Payment of electric bills
• Do not forget to sign the check.
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The following are the parties involved in a transaction that uses check as medium
of exchange:
• Drawer/Maker, the person or entity who makes the check
• Payee, the recipient of the money
• Drawee/payer, the bank or other financial institution where the check can be
presented for payment.
HOW TO WRITE CENTS
Amount in Figures Amount in Words

100.15 One Hundred and 15/100
3400.25 Three Thousand Four Hundred and
25/100
2300.50 Two Thousand Three Hundred and
50/100
Cross Check
It is marked to specify an instruction about the way it is to be redeemed. A

common instruction is to specify that it must be deposited directly into an account
of the payee. It is usually done by writing two parallel lines on the upper left
portion of the check. A cross check cannot be encashed over the counter by the
payee. It should be deposited to the payees account.
Stale Check
- A check which a bank will not accept and exchange for money or
payment because it was written more than a certain number of
months ago. In the Philippines a check becomes stale if it exceeds 6
months from the date of the check.
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Identify and understand the contents of a bank statement
At the end of every month, the bank furnishes a statement to the depositor showing
the movement of the account. It contains all the withdrawals, deposits and balance
of your account after every transaction. It may also indicate bank charges that were
deducted by the bank automatically. Also, interest earned by the account is
likewise reflected.
Sample of a Bank Statement
Juana Dela Cruz Current Account No: 2030071245

Iznart St., Iloilo City Statement Period: 11/01/20 – 11/30/20
Date CHECK NO. TRANS CODE DEBIT CREDIT BALANCE

11/1/20 Balance 44,200.00
Forwarded
11/3/20 12345 4,200.00 40,000.00
11/5/20 Deposit 5,000 45,000.00
11/6/20 Interest 500 45,500.00
11/6/20 Withholding Tax 50.00 45,450.00
11/7/20 Bank Service 150.00 45,300.00
Charge
11/10/20 12348 5,200 40,100.00
Deductions/Charges from the Account
Deposits/Addition to the Account
The date column indicates the date the transaction was made. The check number
indicates the details of the check paid by the bank. The transaction code is
normally a bank code for the transactions. The Debit column represents all charges
or deduction made by the bank to your account. The Credit column represents the
deposits or additions to your account that was made by the bank. The Balance
column is the running balance after considering the effect of the transaction to
your account.
Samples of Debit transaction

• Bank service charge - monthly fee charged by the bank for its services (Ex. cost of
printing checks writing funds to other locations and other fees)
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• NSF - (Not Sufficient Fund) – Banks also use a debit memorandum when a
deposited check from a customer “bounces” because of insufficient funds.
Nowadays, bank refer to this as DAIF (Drawn Against Insufficient Fund) or DAUD
(Drawn Against Uncleared Deposits)
Samples of Credit transactions

• Collection of cash proceeds from notes receivables.
• Interest income earned by the deposit.

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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What’s More
Activity 2: Fill Out the Check
Assume that you are the owner of Neitheo Agri Supply. You ordered 100 bags of
fertilizer from Palawan Poultry worth P115, 319. 00 and issued check date August
10, 2020 as a payment for the receipt.
Activity 3: Prepare Bank Statement

Directions: Put check (⸝) whether the following transaction is recorded in debit or
credit column.
Transaction Code Debit Credit

Interest
Withholding Tax
Deposits
Bank Service Charge
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Directions: Prepare a bank statement using the following transaction code below.
Use separate sheet.
Your Name Current Account No: 4050092345
Your Place Statement Period: 06/01/20 – 06/30/20
Balance Forwarded: P530, 000. 00

P15, 250.00
06/01/2020, Check No. 3456:
P20, 000. 00
06/05/2020 Deposit:
P150, 000.00
06/15/2020, Check No. 3457:
P300. 00
06/20/2020, Bank Service Charge:
P25, 000.00
06/29/2020, Check No. 3458:
P 30, 000. 00
06/30/2020, Deposits:
Activity 4: Say Something!

Direction: Discuss the following questions. Use the space provided below or you
may use separate sheet.
1. What is a bank statement and discuss the importance of a bank statement

to a depositor.
2. What is a check and who are the parties involved in the issuance of a check?
Discuss the role of each party.

Activities 2, 3 and 4 are designed to develop and enrich students’
knowledge on the functions, roles and skills of a manager. The
activities ensure that students’ full understanding of the lesson is
achieved. The scoring rubrics will guide the students in doing the
activities.
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What I Have Learned
At this point, let us see how much you have gained from the discussions and
activities you have undergone.
Activity 5: Fill in the Blanks

Direction: Complete the sentences below by filling in the blanks the correct word or
phrase.
1. The _____writes the various details including the monetary amount, date,
and a payee on the check, and signs it, ordering his bank, known as the
_____, to pay that person or company the amount of money stated.
2. The bank or other financial institution where the check can be presented for
payment is called ________.
3. The ________ indicates the details of the check paid by the bank. The _______
is normally a bank code for the transactions.
4. The ______ represents all charges or deduction made by the bank to your
account.
5. The _______ represents the deposits or additions to your account that was
made by the bank.
6. The _______ is the running balance after considering the effect of the
transaction to your account.
7. A cross check cannot be encashed over the counter by the payee. It should
be deposited to the ______ account.
8. At the end of every month, the bank furnishes a ________ to the depositor
showing the movement of the account.
9. A person who makes the check is called _______.
10. Erasures in a check should be signed by the ______.
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What I Can Do
This activity will help you transfer into real-life situations the knowledge and skills
you have gained or learned from this module.
Activity 6: Practice Being a Drawer

Directions:
a. Assume that you are the owner of Ang Tinadahan Company.
b. Prepare and issue checks based on the following transactions:
Ang Tinadahan Co. is a wholesaler of office and school supplies. The
following are the transactions of Ang Tinadahan Co. for the first month of its
operations. All cash disbursements are made by bank check.
Date Transaction Amount

July 1, 2020 Purchased laptop from Computer shop Inc. P45, 000.00
for office use.
July 4, 2020 Bought 200 reams of bond papers P25, 000.00
(inventory) ordered from Jude Corp.
July 27, 2020 Paid electricity bill to PALECO P7, 400.00
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Activity 7: Practice Being a Bank Manager

Direction:
a. Using the checks issued in Activity 6, prepare bank statement.
b. Below are the other transactions made on the month of July 2020.
c. Use separate sheet.
1. Balance Forwarded: P490, 000.00

2. 07/06/2020, Deposit: P50, 000.00
3. 07/08/2020, Withholding Tax: P500.00
4. 07/30/2020, Bank Service Charge P300.00
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Assessment
Directions: Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. Collection of cash proceeds from notes receivables is recorded in what
column of a bank statement?
A. Balance C. Date
B. Credit D. Debit
2. Where can we find the check number in the check?

A. Lower right C. Lower left
B. Upper right D. Upper Left
3. Which of the following DOES NOT belong to the group?

A. Check Number C. Deposits
B. Date D. Payee
4. Who is the recipient of the money?

A. Bank C. Drawer
B. Drawee D. Payee
5. Which of the following is the purpose of bank statement?

A. A proof that the depositor is authorizing the bank to get money from
his account.
B. Developed as a way to make payments without the need to carry large
amounts of money.
C. It contains all the withdrawals, deposits and balance of your account
after every transaction.
D. Orders a bank to pay a specific amount of money.
6. Which of the following is debited in a depositor’s checking account?

A. Bank Service Charge C. Interests
B. Deposits D. NSF
7. It represents the deposits or additions to your account that was made by

the bank.
A. Balance Column C. Date Column
B. Credit Column D. Debit Column
8. Mrs. Aurora Quinio, an owner of Quinio Merchandising issued check

dated August 10, 2020 as a payment for office supplies bought from
Silver Town amounting to P6, 780. 00. Who is the payee?
A. Mrs. Aurora Quinio C. Silver Town
B. Quinio Merchandising D. None of these
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9. Seven Angels Bank didn’t accept Mr. Agoncillo’s check as the check was
written 7 months ago. What do you call to this check?
A. Bouncing Check C. Rejected Check
B. Cross Check D. Stale Check
10. Who will sign the erasures in a check?

A. Bank C. Drawer
B. Drawee D. Payee
For items 11-15: Prepare Checks:
As an owner of a beauty salon, you issued check dated November 23, 2020
as a payment for beauty products to Judy P. Cario worth P356, 700. 50.
For items 16-20: Fill in the balance of Ms. Juana Dela Cruz in her bank
statement.
Juana Dela Cruz Current Account No: 2030071245

Iznart St., Iloilo City Statement Period: 12/01/20 – 12/30/20

12/1/20 Balance 55, 700.00
Forwarded
12/7/20 98765 8,000.00
12/17/20 98766 3,000.00
12/20/20 Deposits 15, 000.00
12/25/20 98767 5, 000.00
12/10/20 Bank Service 500.00
Charge
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Additional Activities
Let us reinforce the skills/knowledge that you have gained from this lesson by
doing the next activity.
Activity 7: Find me!

Direction: Have a copy of a bouncing check. Explain the difference of bouncing
check with the other checks.
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What I Know
Activity 3
1. B A.
2. D • Interest(Cr)
3. B Activity 1
4. A 1. Checking • Wtax(Dr)
5. A Number
6. C 2. Drawer • Deposits(Cr)
7. D 3. Drawee
8. A 4. Payee • Bank Service
9. B Charge(Dr)
10. A Activity 2
11. B B. (see next page)
(see next page)
12. D
13. D
14. C
15. D
Activity 4: (answers may vary)
Activity 5
Fill in the blank.
1. Drawer, Payee
2. Drawee
3. Checking Number, Transaction Code
4. Debit Column
5. Credit Column
6. Balance Column
7. Payee
8. Bank Statement
9. Drawer
10. Drawer
Activity 6: see next page
Assessment
1. B 9. D
2. B 10. C Activity 7: answers may vary
3. D 11. B
4. D 12. C
5. C 13. C
6. A 14. D
7. B 15. D
8. C
Answer Key
Activity 2
08/10/2020
Palawan Poultry
115, 319.00
One Hundred Fifteen Thousand Three Hundred Nineteen Pesos Only
Activity 3
B.
Your Name Current Account No: 4050092345
Your Place Statement Period: 06/01/20 – 06/30/20

06/1/20 Balance 530, 000.00
Forwarded
06/01/20 3456 15, 250.00 514, 750.00
06/05/20 Deposit 20, 000.00 534, 750.00
06/15/20 3457 150, 000.00 384, 750.00
06/20/20 Bank Service 300.00 384, 450.00
Charge
06/29/20 3458 25, 000.00 359, 450.00
06/30/20 Deposit 30, 000.00 389, 450.00
Activity 6
07/01/2020
Computershop Inc. 45, 000.00
Forty Five Thousand Pesos Only
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07/04/2020
Jude Corp. 25, 000.00
Twenty Five Thousand Pesos Only
07/27/2020
PALECO 7, 400.00
Seven Thousand Four Hundred Pesos Only
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References
Valencia, et al. Basic Accounting 3rd edition 2009-2010, Valencia Educational
Supply, 2009.
Valix, C. et al. Financial Accounting Volume 1 2015 edition.GIC Enterporises &
Co., 2015.
Weygandt, J. et al. Accounting Principles 2010 edition. John Wiley and Sons. 2010
For inquiries or feedback, please write or call:
Department of Education – SDO Palawan
Curriculum Implementation Division Office

2nd Floor Deped Palawan Building
Telephone no. (048) 433-6392
Learning Resources Management Section

LRMS Building, PEO Compound
Telephone no. (048) 434-0099
21

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Published by the Department of Education, Division of Palawan

Development Team of the Module

Printed in the Philippines by ________________________

Department of Education – MIMAROPA Region – Schools Division of Palawan

Office Address: PEO Road, Bgy. Bancao-Bancao, Puerto Princesa City

Welcome to the Fundamentals of Accountancy, Business and Management 2 –

This module was collaboratively designed, developed and reviewed by educators

Notes to the Teacher

Welcome to the Fundamentals of Accountancy, Business and Management 2–

This module has the following parts and corresponding icons:

What I Know This part includes an activity that aims to

What’s In This is a brief drill or review to help you link

What’s New In this portion, the new lesson will be

What is It This section provides a brief discussion of

What’s More This comprises activities for independent

What I Have Learned This includes questions or blank

What I Can Do This section provides an activity which will

Assessment This is a task which aims to evaluate your

Answer Key This contains answers to all activities in the

At the end of this module you will also find:

References This is a list of all sources used in

The following are some reminders in using this module:

What I Need to Know

The module is composed of one lesson, namely:

After going through this module, you are expected to:

1. It is a document that orders a bank to pay a specific amount of money from

2. Who among the following is the recipient of the money?

4. Who is the drawer?

5. Which among the following is NOT a content of a check?

6. Who signs the check?

7. What is a bank statement?

9. What does the credit column in bank statement represent?

11. Where does interest income of a checking account recorded?

12. Which of the following is NOT an example of transaction code?

13. Why do companies issue checks?

Identify and Prepare Checks

Movement of checking accounts can be monitored through a bank statement. A

Notes to the Teacher

Activity 1: Label Each Part

• Do not forget to sign the check.

HOW TO WRITE CENTS

Amount in Figures Amount in Words

It is marked to specify an instruction about the way it is to be redeemed. A

Sample of a Bank Statement

Juana Dela Cruz Current Account No: 2030071245

Date CHECK NO. TRANS CODE DEBIT CREDIT BALANCE

Deductions/Charges from the Account

Deposits/Addition to the Account

Samples of Debit transaction

Samples of Credit transactions

Notes to the Teacher

Activity 2: Fill Out the Check

Activity 3: Prepare Bank Statement

Transaction Code Debit Credit

Balance Forwarded: P530, 000. 00

Activity 4: Say Something!

1. What is a bank statement and discuss the importance of a bank statement

Notes to the Teacher

What I Have Learned

Activity 5: Fill in the Blanks

Activity 6: Practice Being a Drawer

Date Transaction Amount