BANK

DOCUMENTS
AND
TRANSACTIONS
 Lesson Contents
 Nature and Composition of Cash
 Concept of Savings
 Types of Savings Accounts
 Banking Terminologies and Concepts
 Bank Documents
 Contents of Bank Statement
Nature and Composition of Cash

 Cash
currency or cash items on hand and in bank for use in
normal operation of the business

Includes: Coins, Current Checks, Bank Drafts

Postal Money Orders
Nature and Composition of Cash

 Cash Equivalents
items of diverse nature and structure but have equal
monetary value as cash (mostly Working Funds)

Includes: Petty Cash Fund, Change Funds

Revolving Fund
Nature and Composition of Cash

Bangko Sentral ng Pilipinas (BSP)

the central bank of the Republic of the Philippines established
on 3 July 1993 pursuant to the provisions of the 1987
Philippine Constitution and the New Central Bank Act of 1993
Nature and Composition of Cash
 Components of BSP Logo
 The Philippine Eagle
strength, clear vision and freedom
 3 Stars
pillars of banking: price stability,
stable banking system and reliable
payment system
Nature and Composition of Cash
 Components of BSP Logo
 Gold ‘C’ figure
rendered in gold to symbolize gold
means Central Bank
 White Eagle
symbolize purity
 Blue Background
signifies stability
Nature and Composition of Cash
Philippines
New Generation
Banknotes

(Released by
BSP in 2010)


 Concept of Savings

 Savings
bank service that allows depository of funds for
future use and expenditure

Types: Savings Account

Checking/Current Account
Time Deposit
 Concept of Savings
 Savings Account
bank account accompanied by ATM card and/or
passbook which allows cash deposit and withdrawals

ATM – Automated Teller Machine; 24-hour banking

facility that allows withdrawals, bills payment etc

 Passbook – mini booklet that records Dr and Cr

transactions that affected the savings account
 Concept of Savings
Structure of an ATM Card
 Concept of Savings
Structure of an ATM Card

 Concept of Savings

An ATM Card is usually possessing Debit Card

properties which allows cashless shopping in merchants
with EPS (Electronic Payment System).

Swipe cards in shops Merchants accept cards tagged with

using EPS International payment processors
 Concept of Savings

BSP mandates banks to equip newly issued ATM Cards to have EMV
chips to avoid ATM Skimming.

Old ATM cards only New ATM cards must

use Magnetic Stripe have EMV chip
 Concept of Savings
 Current Account
account accessed by making drawings thru writing and
issuing of checks against a bank account with sufficient
balance

 Check – a document issued to a payee for encashment in

the bank account of the issuing depositor
 Concept of Savings
Combo Account
combination of savings
and current account. Security Bank offers a combo
account called All-Access Account
(Common components
are ATM card, Passbook
and Checkbook)
 Types of Savings Accounts
Comparison of Savings and Current Account
Point of Comparison Savings Account Current Account
Bank Documents Deposit Slip Deposit Slip
Passbook Passbook
Withdrawal Slip Check
Purpose Future Use Fund Operational Fund
Opening Balance Low to Moderate Moderate to High
Access to Fund ATM or OTC ATM or OTC or Check
 Types of Savings Accounts
 Time Deposit
savings deposit wherein the funds are not readily
accessible until its definite maturity date

 PDIC
-Philippine Depositor Insurance Corporation
-insures bank depositors up to 500,000
per account
Banking Terminologies and Concepts
 Bank Reconciliation
process of bringing into agreement the bank balance
per bank and the bank balance per record of depositor

 Bank Balance
balance reported by bank as of specific date

 Check Stub Balance

balance reported by depositor as of specific date
Banking Terminologies and Concepts
 Check
an instrument used to withdraw cash from a checking
or current account

 Drawee Bank
bank against which a check withdrawal is addressed

 Drawer
signer of check or the party giving the order to pay
Banking Terminologies and Concepts
 Payee
person or entity to whom payment is addressed

 Bank Signature Card

bank record showing the specimen signature of
depositor to prove authenticity of the signature

 Bank Statements
periodic bank report given by bank to the client
Banking Terminologies and Concepts
 Outstanding Checks
checks issued by payor but not yet encashed in bank

 Electronic Payment System (EPS)

mechanism for payments without the use of bills or coins

 Check Writer
a machine used to write machine validations on checks
Banking Terminologies and Concepts
 Internal Control
plan of organization and coordinate measures designed to
safeguard assets and verify accounting accuracy

 Imprest System
internal control system wherein cash are deposited in
banks and expenses are paid using checks
Banking Terminologies and Concepts
 Internal Control
plan of organization and coordinate measures designed to
safeguard assets and verify accounting accuracy

 Imprest System
internal control system wherein cash are deposited in
banks and expenses are paid using checks
 Bank Documents
 Deposit Slip
a document filled-up to put-in funds in a bank

 Withdrawal Slip
document used to pull-out funds from a bank account

 Check Stub
document issued and signed by payor to order
payment
 Date
Type
Currency
Savings
Current
PHP
USD  Breakdown of Deposit
PCS Denomination Amount

Bank Account
DEPOSIT SLIP

Account Name

Amount in words

Machine Validation
BPI

Total
 

Thank You
Ba n k
Managers!