 Hello in this lecture we will define payroll bank account. According to fundamental accounting principles wild 22nd edition the definition of payroll bank account is bank account used solely for paying employees. Each pay period and amount equal to the total employees net pay is deposited in it and the payroll checks are drawn from it. Therefore the payroll bank account is going to be another checking account a checking account separate from the general checking account if we look at the trial balance we will see the checking account and then a new account for the payroll bank account. Most of the time the payroll bank account will have a zero balance in it except for that point in time when we're processing the payroll which would look something like this. We have the general checking account we're going to determine what the cash amount of payment will be for processing the payroll take that amount out of the general checking account transfer it to the payroll checking account and then process the payroll checks to the employees from the payroll checking account. You might be asking why would we do that why would we take money out of the checking account put it into a payroll checking account just in order to take it out of the payroll checking account and pay the employees with it and it's going to be a form of internal control another form of check for us. The employee wages checks are very important and we want to keep a very good track of that the bank account does a good job of that the bank tracks the cash separately and therefore we have a good check simply of just the payroll by running the payroll through this separate checking account so it's one of the core reasons for having a process such as this. End simulation! End the simulation!