Checking Account Vocabulary
Check An order to pay money from your checking account to a person
or company.
Deposit Putting money into a bank account
Deposit Slip A paper that you fill out which tells you how much money (cash or checks) you are depositing.
Signature The way you sign your name in script.
Checkbook Ledger The record of checks and deposits made to a checking account. Balance How much money is in the account.
Fill in the blanks. Read the definitions above carefully. Be sure you understand what each word means. Then, fill in the blanks in the sentences below. Use each word in the box only once.
1.) If Vic has $14.98 in his checking account, then his _________________________is $14.98. 2.) If Nicki put $50 into her checking account, she made a ____________________________. 3.) All checks must be recorded in the __________________________________.
4.) When making a deposit, Tracey gave the teller the money and a ______________________. 5.) At the grocery store Mrs. Jones wrote a _________________________ for $48 worth of food. 6.) A check is not good without your _________________________________ on the bottom line. Matching. Match each item in the left column with a word in the right column. You’ll use each word only once
Opening a Checking Account
All commercial banks and savings banks offer checking accounts. To open a checking account,
go to the “new accounts” desk at the bank. ask for an application for a checking account
To open your account, the bank will ask that you fill out a signature card. This card gives the
bank some information about you: name, address, telephone number and so on.
But more important still, it gives the bank a record of how you sign your name (your signature).
You should sign every check you write the same way you signed your name on the signature
card.
Directions. Fill out the sample signature card below. Use your own name and address and
today’s date. Your account number is 30481.
Date: _________________ Account Number_____________
Name(s):
The undersigned certify that the signatures on this card are the duly authorized signatures which
you will recognize on checks, drafts, money orders and other instruments drawn by us against
our deposit account number _____________________
Title (
Mr.,Mrs,Ms, Dr.) Type Name Below Sign Name Below
__________ ________________________will sign ___________________________
__________ ________________________will sign ___________________________
__________ ________________________will sign ___________________________
__________ ________________________will sign ___________________________
Address: _________________________________________________________________________1.) How do you think the signature card protects the checking owner?
Writing Checks
It is important to learn to write checks correctly. Here’s how to do it:1.) Always write checks in ink that can not be erased.
2.) Write the check number where it says “No.” or “#” if it is not preprinted. 3.) Fill in the date
4.) Write the name of the person or company to whom you are writing the check where it says “Pay to the Order of…”
5.) Write the amount of money in numbers ($14.98) and in words (Fourteen and 98/100 dollars) 6.) Sign your name
DIRECTIONS: Complete each check below using the directions given above and use today’s
date:
1.)
Write check #1 to Mary Williams for $23.98
1.____________________________ 4.) Check # __________
2.____________________________
5. __________________
3.____________________________
6.)
Pay to the order of____________________________________________ 7 $ ________________
8 ______________________________________________________________________dollars
9 Memo____________________________ 10. ____________________________
2.)
Write check #2 to Food Center for $45.68
1.____________________________ 4.) Check # __________
2.____________________________ 5. __________________
3.____________________________
6.)
Pay to the order of____________________________________________ 7 $ ________________
Making Deposits to a Checking Account
Whenever you want to deposit money in your checking account, you must fill out a deposit slip.
DIRECTIONS: Fill in your name and today’s date on each deposit slip. Then list the amount of money in cash where the slip says “cash.” List each check you have to deposit on at a time in the numbered spaces on the deposit slip. Then find t he total amount you want to deposit by adding the cash and checks you have. Write the total where it says “Total.”
1.) Deposit: Cash : $13.49 Checks: $4.19, $8.90 and $ 14.05
2.)
Deposit: Cash: None; Checks $45.87, $3.50 and $118.53
Check Register
A check register is a record of the transactions of a checking account. The register records the check number, date, description of the transaction, Payment/debit, deposit/credit and the balance of the account. Every transaction must be recorded in your checkbook register so that you will have an accurate picture of your account. If you forget to write a check in your register, you may write a check for more than you have in your account. These are called bounced checks and will cost you time, money (from fees) and
embarrassment.
Listed below is a sample of a checkbook register. Notice that each transaction takes up a clear line and a shaded line. On the clear line you will record the name of the person or business you are writing the check to or in the case of a deposit, just write the word deposit. On the shaded line the purpose of the check is recorded so you can easily remember why you wrote this particular check. Notice that only CHECKS written are given a number. Deposits and Debit Card transactions have no numbers. When recording your amounts you must be sure that the numbers line up properly so that you can properly add or subtract.
Number Date Description of Transaction Payment/Debit Deposit/Credit Balance
( - ) ( + ) 0
12/1/2005 Deposit 957 58 957.58
Money from Aunt Tilly's Will 957.58
101 12/1/2005 Sweater Factory 56 12 56.12 bought a sweater 901.46 12/2/2005 Deposit 554 78 554.78 payroll check 1456.24 102 12/3/2005 Pathmark 89 23 89.23 Groceries 1367.01 12/4/2005 Deposit 50 00 50.00
birthday money from Aunt Millie 1417.01
12/5/2005 Deposit 25 00 25.00
birthday money from Grandma 1442.01
Debit 12/5/2005 Eastgate Diner 35 76 35.76
Dinner 1406.25
103 12/6/2005 Verizon 34 09 34.09
paid bill 1372.16
Remember that deposits ADD money to the account
Check Register
A check register is a record of the transactions of a checking account. The register records the check number, date, description of the transaction, Payment/debit, deposit/credit and the balance of the account.
DIRECTIONS: The beginning balance in the register is $1,000. Use the following information to record the transactions below.
1.) Check 230; date 5/1/06, To Rental Company for rent payment $350; Balance? 2.) Check 231; Date 5/3/06 to Pathmark, payment $68.00; balance?
3.) May 5, 2006 deposit $250.00 from salary; balance?
4.) Check 232 dated May 10, 2006 to Pathmark; amount $84.00 Balance? 5.) Check 233 May 20, 2006 to Mobil Oil for gas $23.00 Balance?
6.) Check 234 dated 5/21/06 to LIPA for electricity $45.00; Balance? 7.) 5/22/06 deposit $250 from salary
Number Date Description of Transaction Payment/Debit Deposit/Credit Balance
( - ) ( + ) $ 1,000.00
