Bank reconciliation 2

How does the
drawer (business) stop payment on a  check?
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Slide 1: Tekstslide
Economie

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How does the
drawer (business) stop payment on a  check?

Slide 1 - Tekstslide

Answers
By telling the bank not to honor the check (“stop payment order”)

Slide 2 - Tekstslide

Chapter 11.2
Reconciling the Bank Statement
Pages 287-294

Slide 3 - Tekstslide

Objectives
Describe special banking procedures.
Journalize the given bank transactions.
Evaluate the electronic fund transfer system.


Slide 4 - Tekstslide

Checks are usually written or received and deposited without any problems.
Three problems may occur:
• A business does not want the bank to pay a check that was issued.
A business receives and deposits a check from a customer whose
account does not have enough money to cover the check. 
• A customer presents a check that has a date in the future.

Slide 5 - Tekstslide

A stop payment order is a demand by the drawer, usually in writing, that the bank not honor a specific check.
An NSF check is a check returned to the
depositor by the bank because the drawer’s checking account does not  have enough funds to cover the amount. NSF stands for Not Sufficient  Funds. An NSF check is also known as a dishonored or bounced check.

Slide 6 - Tekstslide

The Check Clearing for the 21st Century Act, known as Check 21, went into effect in 2004.It allows the conversion of a paper check to an electronic image that can be processed quickly.
A business might accept a check that has a future
date instead of the actual date. This check is called a postdated check. It 
should not be deposited until the date on the check

Slide 7 - Tekstslide

What is a demand by the drawer, usually in writing, that the bank not honor a specific check?

A
NSF
B
Postdated check
C
Stop Payment order
D
Check 21

Slide 8 - Quizvraag

What does the accountant do to record a stop payment?

Slide 9 - Woordweb

Why do businesses accept post dated checks?

Slide 10 - Open vraag

On November 12 a check for $550, written by Burton Company for payment on account and deposited by
Zip, was returned by the bank because of insufficient funds in Burton’s account

Slide 11 - Tekstslide

Journalize the transaction

Slide 12 - Woordweb

Journalize the transaction.
1.Interest paid by the bank to customer $20

Slide 13 - Open vraag

What is the condition for receiving an interest on amount saved?

Slide 14 - Woordweb

Banks use the electronic funds transfer system (EFTS) to handle such a
large volume of transfers. The EFTS allows banks to transfer funds among  accounts quickly and accurately without the exchange of checks.

Slide 15 - Tekstslide

Direct payroll deposit. Employers can electronically transfer
employees’ pay to each employee’s bank account.
Automated bill paying. A depositor can authorize the bank to transfer
funds from his or her checking account to the creditor’s bank account.
Bankcards. A bankcard, also known as an ATM card, is a bank-issued
card that can be used at an automated teller machine to
conduct banking activities.

Slide 16 - Tekstslide

Bank-by-phone service
Online banking

Slide 17 - Tekstslide

For what type
of transactions would you use online
banking or a debit card?

Slide 18 - Woordweb

What do you think are the advantages of direct payroll deposit to employers and employees?

Slide 19 - Open vraag

What is the important points of lesson?

Slide 20 - Woordweb