Payments from customers sometimes go straight into the bank account of the business. Money received through direct debit payments and standing orders, and money received in BACS payments go straight into the bank account. These receipts must be checked, and recorded in the accounting records of the business.
In a similar way, payments received by credit card through a website are handled automatically by the computer system that processes the payments. A printout is produced of the payments received, but the money goes automatically into the business bank account.
However, when payments are received in notes or coin, or by cheque, the money has to be banked.
When money is paid into a bank account, the payments should be accompanied by a paying-in slip. A paying-in slip gives details of:
An example of a bank paying-in slip is shown on the following page. If you have your own bank account, you should have paying-in slips of your own, either at the back of your cheque book or in a separate booklet of paying-in slips from the bank. There are often blank paying-in slips available in most bank branches, although, increasingly, modern technology removes the need for a written record of amounts paid in, with receipts issued by email to the customer.
As illustrated on the following page, the front side of a paying-in slip gives details of the business bank account, together with a summary of the notes and coins being paid in and the total value of the cheques. The term silver refers to small silver coins of 5c and 10c denomination, and bronze refers to 1c and 2c coins.
PLEASE DO NOT WRITE BELOW THIS LINE
To pay notes and coins and cheques into a bank account, the procedures are therefore to:
Count the notes and coins correctly, and enter the details on the paying-in slip. Many businesses put coins into special bags provided by the bank. Write cheque details on the back of the paying-in slip. Total the cheque payments and enter this amount on the front side of the paying-in slip, together with the grand total of the amount being banked. Take the cash and cheques to the bank and pay it in. When large amounts are involved, a business may hire a security firm to take money to the bank.
The contents of a till have been checked and counted at the end of a day. The numbers of each type of note and coin are as follows:
The business will keep a cash float, to put in the till at the start of the next day. The cash float for the following day remains in the business safe overnight. The remaining cash is paid into the bank, using the night deposit box at the local branch of the bank.
Work out the total amount of cash from the till for that day.
The cash float for the following be made up of 10 *\$5 notes, 5 *\$2 coins. 10S * 1 coins, 10 * 50c , 50 * 20c coins, 100 * 10c coins 100 * 5c . 100 * 2c coins and 100 * 1c coins. Prepare the bank paying-in slip for the amounts of cash to be paid in to the night safe.
To pay notes and coins and cheques into a bank account, the procedures are therefore to: Count the notes and coins correctly, and enter the details on the paying-in slip. Many businesses put coins into special bags provided by the bank. Write cheque details on the back of the paying-in slip. Total the cheque payments and enter this amount on the front side of the paying-in slip, together with the grand total of the amount being banked. Take the cash and cheques to the bank and pay it in. When large amounts are involved, a business may hire a security firm to take money to the bank.
The contents of a till have been checked and counted at the end of a day:
| Note/coin | Number |
|---|---|
| $50 | 2 |
| $20 | 43 |
| $10 | 159 |
| $5 | 147 |
| $2 | 20 |
| $1 | 53 |
| 50c | 52 |
| 20c | 226 |
| 10c | 367 |
| 5c | 158 |
| 2c | 362 |
| 1c | 273 |
The business will keep a cash float, to put in the till at the start of the next day. The cash float for the following day remains in the businesss safe overnight. The remaining cash is paid into the bank, using the night deposit box at the local branch of the bank.
Work out the total amount of cash from the till for that day.
The cash float for the following be made up of 10 *\$5 notes, 5 *\$2 coins. 10S * 1 coins, 10 * 50c , 50 * 20c coins, 100 * 10c coins 100 * 5c . 100 * 2c coins and 100 * 1c coins. Prepare the bank paying-in slip for the amounts of cash to be paid in to the night safe.
| Note/coin | Number | Amount |
|---|---|---|
| $50 | 2 | 100.00 |
| 3,503.77 |
| Note/coin | Number in till | Number for cash float | Number to be paid in to bank | Amount $ |
|---|---|---|---|---|
| Total | 3,400.77 |
PLEASE DO NOT WRITE BELOW THIS LINE
| $50 | 100 | 00 |
| $20 | 860 | 00 |
| $10 | 1,590 | 00 |
| $5 | 685 | 00 |
| $2 | 30 | 00 |
| $1 | 43 | 00 |
| 50c | 21 | 00 |
| 20c | 35 | 20 |
| Silver | 29 | 60 |
| Bronze | 6 | 97 |
The paying-in slip documents the amount of cash, cheques, and credit card vouchers paid into the bank account. Any discrepancy between the amounts of cash, cheques, and credit card vouchers paid in and the documented amounts on the paying-in slip should be identified and queried by the bank. If any errors have been made on the paying-in slip then this will cause problems with the bank and could lead to a delay in processing the payment into the business bank account.
It is therefore important that the paying-in slip is correct. Once completed, the paying-in slip should be reconciled to appropriate supporting documentation for each method of payment.
The total amount of notes and coins entered onto the paying-in slip should agree with the total of notes and coins counted from the cash register, less any cash float retained for the next day.
The individual amounts and totals for cheques that are entered onto the paying-in slip should be checked either to the original cheques or to any cheque listing or remittance list drawn up. Any cheque listing or remittance list should have been checked against the original cheques when it was prepared.
The amount entered as a total for credit card vouchers should be checked against the card summary for accuracy. The summary of vouchers should, in turn, have been checked against the credit card vouchers when it was prepared.
Credit card payments may also need to be paid into a bank account. For example, a shop needs to bank its credit card payments from customers. With credit card payments:
A card summary is a document giving details of the credit card payments being banked. This is a typical illustration of a card summary.
Bank Processing (White)
copy of Summary with your
vouchers in correct order:
KEEP Retailer's copies
(Blue & Yellow)
NO MORE THAN 200
Vouchers to each Summary.
DO NOT USE Staples, Pins
Paper Clips
NORTH BANK
| ITEMS | AMOUNT | |
|---|---|---|
| SALES VOUCHERS (LISTED OVERLEAF) | ||
| LESS REFUND VOUCHERS | ||
| DATE | TOTAL $ |
Complete this summary for every deposit of sales vouchers and enter the total on you normal current account paying-in slip.
The front of the document gives the total of payments, less refund vouchers. (A refund voucher is produced when a customer returns goods to a retailer. The original credit card sales voucher remains valid, but a refund voucher is issued to cancel out the sales voucher.) The Items column is for entering the number of sales vouchers and refund vouchers. УДИОМ ТАЯ ОТ Изни
The reverse side of the summary lists the amounts of the credit card vouchers and (if any) the refund vouchers.
| S | C | |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 | ||
| 6 | ||
| 7 | ||
| 8 | ||
| 9 | ||
| 10 | ||
| 11 | ||
| 12 | ||
| 13 | ||
| 14 | ||
| 15 | ||
| 16 | ||
| 17 | ||
| 18 | ||
| 19 | ||
| 20 | ||
| Total | Carried overleaf |
Most businesses accept payments from both Visa and MasterCard. If so, a separate summary voucher is needed for each type of card.
The summary voucher must also be imprinted with the retailers own card details, such as the retailers name and its account number with the credit card company.
After the card summary has been filled in, the total of the payments (less refunds) is copied onto the reverse side of the paying-in slip, and added to the total of payments by cheque etc.
The credit card vouchers, the card summary and the paying-in slip are then all handed in to the bank.