Chapter 5

Bank Service Charge

memorandum is the source document. Miscellaneous Expense Cash

Bank and Depositor's Records Don't Match

Service charge may not have been recorded yet in the depositor's records. Outstanding deposits may be recorded in the depositor's records but not on the bank records. Outstanding checks may be recorded in the depositor's records but not the bank statement. Mistakes could have happened.

Checking Account

a bank account from which payments can be ordered by a depositor.

Debit Card

a bank card that automatically deducts the amount of a purchase from the checking account of the cardholder. Memorandum is the source document.

Deposit Slip

a bank form which lists the checks, currency, and coins an account holder is adding to the bank account.

Non-sufficient Funds Check

a check dishonored by the bank because of insufficient funds in the account of the maker of the check.

Voided Check

a check that cannot be processed because the maker has made it invalid. The word VOID is written across the check.

Dishonored Check

a check that the bank refuses to pay. Insufficient funds Appears to be altered Signatures do not match Amount in figures and words do not agree The check is postdated The person that wrote the check stopped making payments on the check. Accounts receivable Cash

Canceled Check

a check which has been paid by the bank.

Postdated Check

a check with a future date.

Electronic Funds Transfer

a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.

Petty Cash Slip

a form showing proof of a petty cash payment.

Cash short

a petty cash on hand amount that is less than the recorded amount. Debited

Cash Over

a petty cash on hand that is more than the recorded amount. Credited

Bank Statement

a report of deposits, withdrawals, and bank balances sent to a depositor by a bank.

Endorsement

a signature or stamp on the back of a check transferring ownership.

Accounting Clerk

an accounting worker who processes routine details about accounting transactions.

Petty Cash

an amount of cash kept on hand and used for making small payments. Check is the source document. Debit balance. Asset Used for small payments so a check isn't used. Is replenished at the end of every month. Before the fund is replenished a petty cash report must be completed.

Blank Endorsement

an endorsement consisting of only the endorser's signature.

Special Endorsement

an endorsement indicating a new owner of the check. Include the words pay to the order of. Sometimes known as endorsement in full.

Restrictive Endorsement

an endorsement restricting further transfer of a check's ownership.

Outstanding Checks

are those checks issued by a depositor but not yet reported on a bank statement. Made at the bank but not yet shown on bank statement.