DEPOSITING CASH

1. DEPOSITING CASH Lesson 6-1, page 126

2. DEPOSIT RECORDED ON A CHECK STUB Lesson 6-1, page 126

3. Checks are negotiable instruments that permit the transfer of money from remitter to payee. Checks are considered a promise to pay; meaning, they are not guaranteed forms of payment like Money Orders or Cashier’s Checks. Since it is a promise to pay, many factors determine if a check can be accepted for deposit or cash. One of those factors is having a correct endorsement. • The remitter is the person who wrote and signed the check. The payee is the person getting paid. The payee signs the back of the check. This signature, or endorsement, concludes the negotiation of the check. This means the transaction is finalized. • To assure that a check is processed without delay or failure, it is important to endorse the checks exactly as intended by the remitter. The bank accepting the check should be looking for the correct endorsement, but here is a run down of basic rules for personal checks. • The most common type of endorsement is a when the payee signs the back of the check and then presents it for cash or deposit. This is called a blank endorsement.Ironic, I know. It is considered “blank” because there are no additional instructions or limitations; the check can be deposited or cashed. • Instead of signing your name on the endorsement line, another option is to write “For deposit only” on the back of the check. This is called a restrictive endorsementbecause it is declaring the check limited to deposits, meaning it can not be cashed. You may choose to present the check for deposit without providing an endorsement of your own. In this case, the depositing bank may mark the check with a stamp. Verbiage will vary, but will read along the lines of, “Pay to the account credited within Name of Bank.” This is similar to the payee writing “For deposit only” and is considered a restrictive endorsement. • A special endorsement is used when the payee wants to give their check to a person not named by the remitter. The payee must first endorse the check and then write, “Pay to the order of First Last name.” The new payee then endorses the check and presents it for payment. Due to the risks involved with cashing such checks, it is up to the financial institution’s discretion whether or not to accept the check, and how to do so. • http://myfinancialwingman.com/2011/05/banking-basics-101-check-endorsements/

4. BLANK ENDORSEMENT, SPECIAL ENDORSEMENT, AND RESTRICTIVE ENDORSEMENT Blank Endorsement Special Endorsement Restrictive Endorsement Lesson 6-1, page 127

5. COMPLETED CHECK STUB AND CHECK 1 2 7 3 4 8 9 10 11 12 5 6 Preparing checks Preparing check stubs 7. Write the date. 1. Write the amount of the check. 8. Write to whom the check is to be paid. 2. Write the date of the check. 3. Write to whom the check is to be paid. 9. Write the amount in figures. 10. Write the amount in words. 4. Record purpose of the check. 11. Write the purpose of the check. 5. Write the amount of the check. 6. Calculate the new account balance. Lesson 6-1, page 128-129 12. Sign the check.

6.  RECORDING A VOIDED CHECK 4 1 2 3 5 1. Record the date. 2. Write the word VOID in the account title. 3. Write the check number. 4. Place a check mark in the Post. Ref. column. 5. Place a dash in the Cash Credit column. Lesson 6-1, page 129