Register First, Check Second
Always record a check in your register before writing it.
See the following example.
Ryan is buying three used video games from Tamra for $25.
Before he writes the check, he updates his check register by entering:
- The check number.
- The date.
- A description of the purchase (to his friend Tamra for video games).
- The payment amount of $25.
Then he subtracts the $25 from the balance in his account and writes the check.
| CHECK NUMBER OR CODE
|
DATE
|
TRANSACTION DECRIPTION |
PAYMENT, FEE, WITHDRAWAL(-) |
√ |
DEPOSIT, CREDIT(+) |
$ 100.00 |
| 1641 |
10/15 |
to Tamra for video games |
25 |
.00 |
|
|
|
75 |
.00 |
| |
|
|
|
|
|
|
|
|
|
Like Ryan, you should always record a
check in your register before writing it. If you wait, you might forget
to update your register and end up with an overdrawn account.
Writing A Check
- Write clearly in non-erasable ink. Start writing at the far left of each space.
- Write the date in the space provided on your check.
- Enter the payee — the person or company to whom you are writing the check.
- Enter the dollar amount in numbers.
- Write out the amount in words as dollars and fractions of dollars and
draw a line to the end of the space as shown below. This keeps anyone from
changing your check later. Example: A check for $15.65 is written Fifteen
and 65/100. A check for $155.25 is One hundred fifty-five and 25/100.
- Sign the check just as you signed your signature card.
- Use the memo line as a reminder of why you wrote the check.
- Present your check for payment. Be ready to show identification (ID),
such as a driver’s license, student ID card or other photo ID.
Example
1641
2
DATE: Oct. 15, 2009
|
PAY TO THE
3
4
ORDER OF
Tamra Smith
$ 25.00
|
5
Twenty five and 00/100
--------------------------------------------------------------------------DOLLARS
|
7
6
FOR for video games
Ryan Correa
|
Fix This Check
Today is October 15, 2009. Ryan just wrote a check for some video games he is buying from Tamra. There are two things wrong with it. Why does Tamra ask Ryan to write her another check?
Example
1641
DATE: Oct. 15, 2008
|
PAY TO THE
ORDER OF
Tamra Smith
$ 25.00
|
Twenty and 00/100
--------------------------------------------------------------------------DOLLARS
|
FOR for video games
Ryan Correa
|
Answers |
Basic Money Management
Basic Money Management
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