About this video
This video shows how to read a check register and work out an ending balance. Withdrawals take money out, deposits put money in, and a transfer can go either way depending on whether it is coming into or leaving the account. Starting from a $500 balance, Lee's transactions lead to an ending balance of $2,350.
You'll be able to
- explain what withdrawals, deposits and transfers mean in a check register.
- decide whether a transfer adds to or subtracts from an account.
- update a running balance after each transaction to find the ending balance.
Key words
- Check register
- A record of the money going into and out of a checking account, with the balance after each transaction.
- Withdrawal
- Taking money out of a bank account, which makes the balance go down.
- Deposit
- Putting money into a bank account, which makes the balance go up.
- Transfer
- Moving money between accounts; it adds to an account if it comes in and subtracts if it goes out.
- Balance
- How much money is in the account after a transaction.
Transcript
- [Instructor] We're told a portion of Lee's checking account transactions is shown below. So we can see the date of the transactions, the description, withdrawals, deposits, transfers, and balance, at least at the beginning. And it says, "What is Lee's ending balance after the transaction on 9/25" after this transaction right over here?
So pause this video and try to figure that out and then we'll do it together. All right, now let's do this together. And before we get into the math of it, let's just make sure we know what's going on, what these different headers or these titles mean. So withdrawals, that's taking money out of the bank account, you're withdrawing money from it.
And so when we're taking money out, I'll put that in red. Deposits, that's when you're putting money into a bank account. I'll put that in green. Now, transfers can be money that's going into a bank account or out of a bank account. So if you are transferring from a different account into this account, that's going to be like a deposit or at least a deposit from this point of view.
This account will grow. But if you're taking a transfer from this account to another account, well, then you're going to subtract, then you're going to take it away. So let's look at each of these. We see our balance. So this first thing over here is a salary deposit.
So $1,500 gets put into the account. And so we should see the balance increase by $1,500. So at this point, it is $2,000. I'll just write it right over here. And on the right, the balance, this is after the transaction that's in that same row. Now, after that, we have a transfer, but we have to see if it's a transfer to or from this account.
So it says a transfer from savings. This is a checking account here. So this is a transfer from the savings account. And implicitly here we can say to this account or to the checking account. So this is a situation where it's going to add to the checking account.
And so we're going to increase by $400. And so that gets us to 2,400. I realize it's a slightly different shade of blue. All right, now Lee is going to spend some money at the grocery store withdrawing $200. So that is gonna subtract from the balance. And so then we go down by 200 to $2,200.
Then Lee goes to the ATM, takes out $100. So that two is going to subtract. So now we are down to 2,100. We subtract 100 from the 2,200, and then there's a bonus deposit. Lee is getting paid some more money. That's going to add to the bank account. So we're going to add that to the 2,100.
And we end up with, if we add 2,100 plus 250, that is 2,350, $2,350 is his ending balance. And we are done.
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