Accounts Part 2

• Time Card/Clock Card


  A card employees use to clock in their attendance at the works place or software that can be used for tracking
• Methods of clocking in attendance

  • Automatic (digital) time recorder
  • Manual (analogue) time recorder
  • Time book
  • Magnetic stripe badge terminal
  • Biometric fingerprint terminal
• Pay Advice/Pay slip


  States the amount of gross pay, the various deductions which have been made from it and the net pay
• Debit Note


  A document issued by a seller to a customer indicating that the price quoted in an invoice has been increased and his/her account has been debited by this amount
• Uses of a Debit Note

  1. Understated account
  2. Carriage, insurance freight and duty were not known and not mentioned
• Credit Note


  A document, often printed in red, issued by a seller to a customer indicating that the price quoted in an invoice sent to him/her has been reduced and his/her account has been credited
• Cheque


  A signed, unconditional written order from a customer, instructing a bank to pay on demand from his/her/its account over the counter or into another account a stated sum of money to, or to the order of, a specified person/company or to the bearer
• Information on a Cheque

  • The date the cheque was written
  • The person/company to whom the cheque was made out (payee)
  • The amount the cheque was made out for (written in words and figures)
  • The signature of the person authorised to write the cheque
  • Counterfoil
  • Description 'order of'
  • The name and address of the drawee
  • The name of the payee
  • The amount in words
  • The amount in figures
  • The signature of the drawer
  • Printed name of the drawer
  • Crossing
  • Magnetic Ink Character
  • The cheque number
  • The national number
  • The bank branch code and clearing house number (sort code)
  • The drawer's account number
• Open Cheques


  Without written instruction or parallel lines across its face. The payee can cash it at the branch of the bank upon which it is drawn, deposit it into a bank account, or transfer it to another person by signing on the back of it
• Certified/Manager's Cheque


  Signed by the manager or other designated senior staff member upon request by the customer. The bank charges a fee for this service. It is used to pay a recipient who may be concerned about the creditworthiness of the buyer. Payment is guaranteed by the bank
• Counter Cheque


  Made out at the counter of the payer's bank. Similar to the bank draft. Can be cashed by the receiver at any bank
• Post-dated/Stale-dated cheques


  Post-dated means the date written on the cheque is for some time in the future. The bank will not accept this cheque before the date stipulated. Stale-dated means that the date on the cheque has passed and it will not be accepted by the bank. Businesses have up to six months to present cheques to their bank from the date written on the cheques
• Crossed Cheques


  Cheques with two parallel lines drawn across the face with or without words. The payee must pay it into an account and can only receive cash for it after it has been cleared (three to five working days). A cheque is crossed if it has to be sent by post
• Crossing


  Additional information or two parallel lines across the face of a cheque. The purpose of crossing a cheque is to protect it against fraud and to detect any fraud when it is taken place. A cheque that is crossed is safer than one that is open. A special crossing provides greater protection than a general crossing
• General Crossing


  Two parallel lines drawn across the face of a cheque either with or without the words "& Co", "Not Negotiable, & Co", "A/C Payee Only"
• Special Crossing


  A named branch of a specified bank through which a cheque is to be paid is written across the face of a cheque, either without or within two parallel transverse lines and/or the words "Not Negotiable", "A/C Payee only", under a limited amount
• Information across the face of cheques


  • Not Negotiable - the amount cannot be transferred from one person to another
  • Under $700 - the cheque is drawn for an amount under $700 so it cannot be forged
  • A/C Payee Only - cheque must be paid into the account of the person named only i.e. the payee's account
  • National Bank, Sandy Point - the cheque must be paid in an account at the named branch of a specified bank only and no other bank