Topic 5 - Deposits and Withdrawals

Banking

Banking is an essential part of every business and certain procedures should be followed. Money coming into the business can be in the form of:

Notes	Coins	Cheques	Credit Cards	EFTPOS

In handling this money, it is essential to take security precautions.

Go to Activity L

 

Cash

When preparing cash for banking you will need to bundle the cash following banking guidelines. These include:

Sorting the notes into the same denominations ($100, $50, $20, $10, $5) with the transparent window in the bottom right hand corner.

Bundle each denomination into groups of ten and secure the bundle with an elastic band.

A similar procedure applies to coins. Coins would be sorted according to their denominations ($2, $1, 50c, 20c, 10c, 5c) then put in a small plastic bag with the amount written on the front

Go to Activity M

    Cheques

You have already encountered cheques in Topic 3:  Petty Cash. All cheques received by your business should be checked for their accuracy and validity.

Go to Activity N

 

  Go to Task 10

 

Credit Cards

Some payments will be by credit card, mostly using EFTPOS. There are set procedures to follow when accepting credit card payments.

Credit Card payments can be made two ways:

• manually
• electronically

     Manually or Electronically

You will be looking more closely at the electronic method.

 

EFTPOS

EFTPOS stands for 'electronic funds transfer at point of sale'. Transactions are made electronically through EFTPOS terminals. The transactions can either be credit (where the customer will pay the bank the amount plus interest at a later date) or debit (where the value of the purchases is deducted from money already in the customer's account).

With credit EFTPOS transactions, the customer will swipe their card, enter a PIN (personal identification number) and sign a docket. The business will be paid immediately by the bank, the customer will pay the bank at a later date.

The EFTPOS system will take its own security measures and check that:-

the card is not stolen

the card has not expired

the merchant has authority to accept the amount of the transaction

  Go to Task 11

 

    Cash Receipts

You have learned about the different ways a business receives money from customers. You have also found about the various documents involved in that process. But what happens to the cash and the documentation AFTER it has been received?

The information is recorded in a Cash Receipts Journal. See  Support Material for more information.

All cash and credit cards should be checked against the receipts listed in the bank column of the cash receipts journal.

Go to Activity O

This is the end of Topic 5.  Now try Topic 6