MOD 3

10 features of a check

1. Check Number 2. Account Name/Name of Depositor 3. Account Number of the Depositor 4. Date 5. Name of Payee (name of person or business you are writing the check to) 6. Amount in words 7. Amount in figures 8. A signature of the account holder 9. Account holder's bank 10.Route Number

5 kinds of checks

1. Personal checks 2. Corporate checks 3. Manager's check (MC) 4. Cashier's check 5. Traveller's check

3 steps on how to write a check

1. Write checks in ink. Written in pencil is not acceptable. 2. Checks could be typewritten. 3. Check writers are used by some companies for security and safeguard.

payee

A person to whom a check is written

Stale Checks

Checks issued by the company to suppliers and creditors and not encashed on time

Canceled Checks pt.1

Checks paid by the bank which were deducted from the depositor's account and returned to the depositor together with the monthly bank statemen

No Sufficient Fund (NSF)/Bounced Checks

Checks returned by the bank because the drawer's checking account does not have enough funds to cover the amount.

Postdated Checks

Checks that had already been sent to the payee, but it cannot be encashed or deposited yet because the date written in the check has not yet arrived

Outstanding Checks pt.1

Checks that were written and recorded in the depositor's books but not yet presented for payment to the bank.

Postdated Checks pt.1

If the check was dated January 22, 2020, and was issued on December 31, 2019

check pt.4

It is a safer form of payment compared to bills and coins. Can be deposited or cashed out

stale checks pt.2

Non-certified checks over 6 months old. Bank has option of whether or not to pay.

drawee

The bank on which a check is written.

No Sufficient Fund (NSF)/Bounced Checks

When you write a check and do not have sufficient funds in your checking account to cover the check. Fees will be charged

canceled check pt.2

a check that has cleared your account

postdated checks

a check written with a date that will occur in the future

check pt.1

a written, dated, and signed instrument directing the bank to pay the bearer a specific sum of money to the bearer.

Manager's Check (MC) pt.3

an MC is needed if the payer or depositor does not have a checking account.

Personal check

are checks issued by an individual, a single depositor, or joint account holder.

corporate checks

are checks issued by the company.

Cashier's Check

check issued by bank tellers. Like a Manager's Check, a cashier's check ensures that the depositor has sufficient funds deposited in their bank

Outstanding Checks pt.2

checks that have not been deducted from the bank statement balance.

check pt.3

commonly accepted for payment and check can accommodate large amounts.

check pt.2

is a printed or written form, used to make payments from your bank account instead of cash.

"Cheque"

is the spelling used in some parts of the world, such as Canada and England.

Manager's Check (MC) pt.2

issued by the bank on behalf of the client.

Manager's Check (MC) pt.1

it is guaranteed by the bank that the holder of the check has sufficient funds deposited in their financial institution.

check pt.5

the bank form that the account holder fills out which instructs the bank to pay the designated payee indicated on the check.

drawer

the person who signs a check

if the issuing account is a joint account

the personal check may have two signatories.