Bank Accounts and Bank Reconciliation The use of a bank minimizes the amount of currency that must be kept on hand and therefore contributes significantly to good internal control over cash. A cherk is a written order signed by the depositor directing the benk to pay a specified sum of money to a designated recipient. The three parties to a check are as follows: a. The drawer issues the check b. The drawee which the check is drawn. c. The payee to whom the check is payable. Electron, funds trarsfor system are disbursement systems that use wire, telephone, or comouters to transfer funds from one location to another. A snows (a) checks paid and other debits charged against the account, (b) deposits and other credits made to the account, and (c) the account balance after each day's transactions. A Is usualiy inciuaed witn the Dank statement to inaicate charges against the depositor's account such as a bank service charge, cost of printing checks, issuing traveler's checks, and when a previously deposited customer's check "bounces" because of insufficient funds (NSF check). A shows such items as the collection of a note receivable for the depositor by the bank A or a bank account is necessary because the balance per bank ana balance per books are seldom in agreement. The need for agreement may be the result of and To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee