Page 25 - Calculating Agriculture Cover 20191124 STUDENT - A

CH 3] Calculating Agriculture 3-15

Name and address Date of Number of Number of
of account holder check the bank this check

Federal
reserve
district
Payee

Amount of Amount of
Check in check as
words numbers

Name of
bank
(Drawee)

Reason
for check

After check is processed,
'
Banks routing Depositors ' Check number amount of payment Account holders 3
Number (also in account (also in upper appears here. signature (Drawer)
upper right corner) number right corner)
Figure 3.7 A Check

(See Figure 3.8.) A deposit slip classifies the funds being deposited into currency, coins, and
checks.

Recording Checks and Deposits
An accurate record of all deposits and checks must be kept to insure that the checks
written do not total more than the deposits. A record that shows the beginning balance, all
deposits, and all checks written is called a check register. A personal check register is
shown in Figure 3.9.
The balance is the amount of funds available in the checking account ($2,340.80 in
Figure 3.9). Each check is recorded by check number and date of the check along with the
transaction description which would include to whom the check is written and a brief
memo as to its purpose. The first entry was for check #306 dated 8/5 (August 5) and the
check was written to Wayne & Dave’s for Auto Repair work that they performed. The
amount of the check was for $472.88 and is subtracted (-) from the balance above to
calculate a new balance of $1,867.92. Note the Deposit made on 8/12 for $1,400.00. This
deposit is added (+) to the balance of $852.72 to yield a new balance of $2,252.72.
In summary the amount for which a check is written is subtracted from the balance
because it decreases the funds available in the account. A deposit increases the funds

Figure 3.8 A Deposit Slip

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