ABM123 BANK ACCOUNT FORMS AND DOCUMENTS

Prepared by: Alexandra Enriquez - Two valid IdenBficaBon Cards

- Proof of Billing
Lesson 6: Bank documents - InformaBon form
- If business: Registered business name/business
permit
TWO TYPES OF BANK ACCOUNTS - Signature Card
1. Savings Account o Basis for the bank to honor or accept client
• Interest earning requests
• Basic type of deposit account - On-us deposits
• Can withdraw any$me o Same bank transacBon/transfer
• ATM card or passbook - Local Clearing Checks
• Account with passbook needs higher first deposit o other banks checks deposited by the client
• Used for payroll facility for clearing with PCHC
- On-Site electronic deposit
o Online transacBons
2. Checking/Current Account - Debit/Credit Memorandum
• Non-interest earning o prepared by the client for special requests
• Can withdraw any$me
• ATM card or checkbook
• Few banks give interest for high iniBal and
maintenance balances
• Deposits are usually high
• Purpose: to transfer funds to a third party via check

CHECK
- Is a bank instrument used to transfer funds to a third
party
- Has two types:
1. Personal Check
o One signatory
2. Commercial Check
o Two signatories
Lesson 7: Bank Statements
BANK STATEMENTS
- shows the depositor’s account transacBonal
informaBon

- Cash system involves debiBng cash in bank upon

Bank Statement Terms: collecBon and crediBng upon disbursement.

- Inward Clearing Checks Bank ReconciliaIon Statement

- Honored Checks
- Dishonored Checks - Compares bank account balance with internal
- Service Check records.
- Returned Check - IdenBfies and corrects errors in financial records.
- Insufficient Funds - Confirms payment processing and cash collecBons.
- Over-the-counter checks
- Credit Memorandum
o Increase was due to collecBon by the bank
Effects of Reconciling Items
in the account owner’s favor - Time lags: Deposits made but not yet recorded by
the bank, or checks issued but not yet presented.
Reasons why a check may be dishonored:
- Drawn against insufficient funds (DAID) - Errors: Mistaken deposits, checks, or other charges
- Drawn against uncollecBble deposits (DAUD) by the account holder or the bank.
- Stop payment check
- Post-dated check Importance of Bank ReconciliaIon

Nature of a Bank Statement - IdenBfies errors in accounBng records.

- Provides control against unauthorized withdrawals.
- Bank records transacBons based on actual deposits - Verifies accuracy of bank transacBons.
and checks.
- Timing differences may occur between bank and
depositor records.
Key Terms in Bank ReconciliaIon

- Deposit in transit: Amounts received and recorded

by the company but not yet recorded by the bank.
- Outstanding checks: Checks wriXen and recorded by
the company but not yet cleared the bank account.
- Bank errors: Mistakes made by the bank.
- Bank service charges: Fees deducted by the bank for
services.
- NSF check: Check not honored by the bank due to
insufficient funds.
- Interest earned: Interest given by a bank on its
account balances.
- Notes receivable: Amounts to be collected by the
company when notes come due.
- Error: Incorrect amount input by the company.

PreparaIon of Bank ReconciliaIon

- Aids in regular monitoring of cash flows.

- Divided into two secBons: bank secBon and company
secBon.
- Adjusted balances from both secBons must be equal.

Lesson 8: Taxa6on

TAX DUE:
[(Taxable Income – Minimum income in the tax table) x
percentage] + prescribed withholding tax

PHILHEALTH: CompensaBon income x 2%

Pag-ibig: CompensaBon income x 3%

For SSS, please refer to the SSS contribuBon table