Checks and

Contents of a
Bank
Statement
▪Preparing Checks
▪Understanding the Contents of a
Bank Statement
TABLE OF CONTENTS
UNDERSTANDING
PREPARING
01 02 THE CONTENTS
CHECKS
OF A BANK
TA STATEMENT
BL
E
OF
 01
PREPARING
CHECKS
CHECK
▪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.

▪Type of bill of exchange and was developed as a way to make

payments without the need to carry large amounts of money

▪It should be covered by sufficient balance in the issuer’s checking

account.

*In the Philippines, issuing a check with insufficient bank

balance is a criminal offense under Batas Pambansa Blg. (BP) 22 or
the Bouncing Checks Law.
The Parties Involved in
The Issuance of a Check

▪ Drawer - the person or entity who make the check

▪ Payee- the recipient of the money
▪ Drawee - the bank or other financial institution where
the check can be presented for payment
 TYPES OF CHECK
CROSS CHECK
▪ It is marked to specify an
instruction about the way it is to
be redeemed.
▪ Usually done by writing two
parallel lines on the upper left
portion of the check.
▪ Cannot be encashed over the
counter by the payee.
▪ It should be deposited to the
payees account.ars is actually a
cold place. It’s full of iron oxide
dust, which gives the planet its
reddish cast
TYPES OF CHECK
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 six
(6)
months from the date of the
check.
 TYPES OF CHECK
POST DATED CHECK

▪ If a check bears a date

which is yet to come
(future date)
▪ Cannot be honoured
earlier than the date of the
check
 HOW TO WRITE A CHECK
1. Current date: On the line on the upper right beside the word date, write the date of the check. In most cases,
you’ll use today’s date, which helps you and the recipient keep accurate records.

2. Payee: Write the complete name of the payee or recipient on the line beside the words “Pay to the Order of”.
When the check is intended to be encashed by just any person, the word “cash” can be written
instead of the name of a person. If the payee or recipient is an organization or company, write the complete name
of the organization or company.

3. Amount in numeric form: Write the exact amount of the check beside the peso sign.

4. Amount in words: Write the exact amount of the check in words on the line beside the word Pesos. Write the
word “only” after the amount so that nothing can be written after the amount.
Example: Twenty Thousand Instead of writing Twenty Thousand, write Twenty Thousand only so that nothing can
be written after the words Twenty Thousand.

5. Signature: Sign the check legibly on the line at the bottom- right corner. Use the same name and signature on file
at your bank. This step is essential – a check will not be valid without a signature.
SAMPLE CHECK
 02

UNDERSTANDIN
GTHE CONTENTS
OF BANK
STATEMENT
BANK STATEMENT

▪ Detailed transaction history of the account over the reporting

period.
▪ A report prepared by the bank for those accounts that do not
have passbooks.
▪ Usually sent by the bank through courier services together with
the debit and credit memos and the cancelled checks.
▪ Account holders can access to and print their transaction
history 24/7 and on real time basis.
 BANK STATEMENT ENTRIES
Date column
- indicates the date the transaction was made
Check number
- indicates the details of the check paid by the bank
Transaction code
- normally a bank code for the transactions
Debit column
- represents all charges or deduction made by the bank to your
account
Credit column
- represents the deposits or additions to your account that was made by the bank
Balance column
- is the running balance after considering the effect of the transaction to your account.
 SAMPLES OF DEBIT SAMPLES OF CREDIT
TRANSACTION TRANSACTION
COLLECTION OF CASH
1 BANK SERVICE CHARGE 3
PROCEEDS
monthly fee charged by the bank for its services
(Ex. cost of
from notes receivables
printing checks writing funds to other locations and
other fees)

2 NSF (NO SUFFICIENT FUND) 4 INTEREST INCOME

Banks also use a debit memorandum when a earned by the deposit.

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)
SAMPLE OF BANK STATEMENT
MEMBERS:
QUIMBO, CHARISSE, P.
SALERA, HONEY JANE
YARAG, JENNY ROSE