Activity 1.

Answer the following questions:

1. What are the difference between savings account and checking/current account?

The difference of between the two, is that a saving account is intended to provide an incentive for the
depositor to save money, and where as there are forms to fill in order for the depositor can perform
deposits as well as withdrawals. And the difference of a checking or current account is that money can
be withdrawn with issuance with a check, were the bank allows numerous withdrawals and unlimited
deposits under this type account.

2. What are the required information in the withdrawal slip and deposit slip?

The required information in the withdrawal slip are:

• Account Name - the name of the depositor

• Account Number – the unique identifier given by the bank for every account maintained
• Date of the withdrawal
• Type of account - savings or current
• Currency
• Amount to be withdrawn - the amount that the depositor wishes to withdraw from his account. The
amounts in words and in figures are indicated.
• Signature of the Depositor – Proof that the depositor is authorizing the bank to get money from his
account.

The usually required information in a deposit slip are:

• Account Name – The complete name of the depositor that is reflected in the records of the bank. And if
it has a pass book, the account name is indicated on first page inside the passbook.
• Account Number – this is a unique identifier of the account maintained by the depositor.
• Date of Deposit
• Type of Account
• Currency
• 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.

3. Why do companies issue checks?

Companies issue checks, in order to reduce time and effort of issuing. On where it reduces the time of
handling a large amount of money to give to employees, and minimises the effort of securing the money
because the bank will be the one who will assure the transactions done to the company’s money.

4. What will happen if there are erasures in the check?

It will be invalid. On where it will be unacceptable for clearing as based on PCHC Memo Circular 15-
460.

Reference:
PSA: PH Banks Will NO LONGER ACCEPT Checks with Erasure Etc in 2016 - When In Manila