Checks, Deposits, and Check Registers. Checks. Checks are the most common form of negotiable instruments Negotiable instruments- a written order promising to pay a sum of money Preferred method of payment for many debts Write checks in blue or black ink . Parts of a Check. Parts of a Check.
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Checks • Checks are the most common form of negotiable instruments • Negotiable instruments- a written order promising to pay a sum of money • Preferred method of payment for many debts • Write checks in blue or black ink
Writing a Check On 9/25/11 you bought your mom a birthday gift at Hallmark for $64.73.
Endorsing a Check • Blank endorsement • Restrictive endorsement • Special Endorsement
Check Stubs • Check stubs record the cash in bank • All account transactions: payments, deposits, and bank service charges • Similar to a check register
Filling out a Deposit Slip On September 28, 2011 you deposited $200 in cash and checks for $100 and $35.00.
Why keep a register? • Keeping a checkbook register is extremelyimportant • Accurate registers will keep you from overdrawing your account • Overdraft fee’s • Bouncing checks
Balancing a Check Register • On September 28, 2011 you made a deposit for $335.00 • On 9/25/11 you buy your mom a birthday gift at Hallmark for $64.73 using check #105 • On 9/27/11 you buy books at Barnes and Noble for $102.25 using check #105
Check terms • Void- when an error is made on a check “void” is written so it cannot be used • Outstanding checks- written but not cashed • Canceled check- checks paid by the bank and deducted from the depositor’s account • Stop Payment- check canceled by the maker