Deposit slip definition

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What is a Deposit Slip?

A deposit slip is a form that is used to itemize the checks and cash being deposited into a bank account. The form contains the name on the account, the account number, the amount of each check being deposited, and the amount of any bills and coins being deposited. Deposit slips are pre-printed with the account name and account number, and are included in the back of the checkbooks given to bank customers. They are rarely provided in blank form in bank locations. The slips are declining in usage, as customers switch to scanning checks with their phones and depositing funds electronically, which requires no deposit slip.

How a Deposit Slip is Used

The completed deposit slip is bundled with the checks, bills and coins itemized on the form and presented to the cashier at the bank. The cashier processes the deposit and matches the total processed to the total stated on the deposit slip to ensure that they match; thus, the deposit slip is a cash processing control for the bank. Once the deposit has been processed, the cashier gives the customer a receipt, which states the total amount of the deposit, along with the date and time. The customer then has proof that the deposit was made.

How to Fill Out a Deposit Slip

A deposit slip is sent to you as part of a checkbook, so it already has your name and account number preprinted on it. In addition to this information, fill out the following items:

  1. Enter the date on which the deposit is being made.

  2. State the total amount of cash included in the deposit.

  3. Itemize the amount of each check being deposited. There may also be room on the form to include the check number being deposited.

  4. Include the sum total of the deposit at the bottom of the form.

The bank teller will enter the amount of the deposit in the bank system, and then cross-check his or her totals against what you have stated on the deposit slip. As such, the slip acts as a control for the bank, to ascertain whether information was entered corrected.

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Advantages of Deposit Slips

There are several advantages to using deposit slips, which are as follows:

  • Audit trail. The depositor uses them to ensure that all deposits made to the bank are properly documented, as is also the case with the bank. In both cases, it is compared to the associated check, bill and coin deposit to ensure that the correct amount was submitted to the bank.

  • Transaction proof. A deposit slip provides a written record of each deposit transaction, which can be useful when funds are missing or were mis-applied in the accounting records.

  • Error reduction. By forcing the depositor to itemize all cash and check amounts being deposited, a deposit slip reduces the risk of recordation errors by both the depositor and the receiving bank.