Example of a Checkbook

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Example of a Checkbook

 Example of a Checkbook


Bob opened a checking account at the neighbourhood bank. He made an initial deposit of $3,000 into the account. Bob has received a check book of 100 checks which he can use to disburse funds from the account to suppliers of goods or services. Once Bob has filled out the check with the payee information, the payee should deposit the check into their bank account. The receiving bank will contact Bob's bank to verify that the funds are available and to cash the check.

The funds will then be debited from Bob's bank account and credited to the recipient's account. Bob can then balance his checkbook in the ledger provided by entering the amount he paid for the good or service and then deduct that amount from his bank account total.

Example of a Checkbook



The Obsolescence of Checkbooks


Checkbooks are no longer used in the era of technology.. A person can have a checking account without even writing a check. Transactions can now be made with credit cards, payments via online bank transfers and money exchange via many tech startups offering such services through mobile phone apps such as Venmo and Paypal.Only very rarely is a check still necessary; for instance, when paying rent, you must make the check payable to your landlord.

Despite the fact that checks are obsolete, they still offer certain advantages. Often, in a rapidly changing digital world, we pay for transactions and then forget about them. The old fashioned way of balancing your checkbook, noting how much you've spent and how much money is left in your account, is a great way to budget and track your spending habits. This can lead to unnecessary cost savings and additional savings.

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