Subject: Accountancy
The cheque is an important means of payment used widely for drawing money from the bank. It is used for paying a large sum of money. It is used by the buyer or debtor to pay the due amount of goods to his seller or creditor. It is a written order issued by the depositor to a particular bank. It is the direction given to the bank to pay a certain sum of money to a certain person or his order or to the bearer of the instrument. It is an unconditional order drawn upon a specified banker signed by the maker.
A cheque has the following characteristics: -
What is the cheque?
The cheque is a written order issued by the depositor directing a particular bank to pay on demand of a certain person or to the bearer of the instrument.
Explain the characteristics of cheque.
The cheque is a written order issued by the depositor directing a particular bank to pay on demand a certain person or to the bearer of the instrument.The cheque is an important means of payment. It is used for paying a large sum of money. It is the most widely used tool for drawing money from the bank. It is used by the buyer or debtor to pay the due amount of goods to his seller or creditor.
A cheque has the following characteristics: -
What are the parties involved in cheque?
The cheque is a written order issued by the depositor directing a particular bank to pay on demand a certain person or to the bearer of the instrument.The cheque is an important means of payment. It is used for paying a large sum of money. It is the most widely used tool for drawing money from the bank. It is used by the buyer or debtor to pay the due amount of goods to his seller or creditor.
The following are the parties involved in cheque:
What do you mean by crossed cheque? Explain its types.
The cheque which is issued with the two parallel lines on its face or without stating any word is called crossed cheque. It signifies that the account of a cheque cannot be withdrawn directly in cash on the counter but should be collected in the bank account of a person.
There are two types of crossing i.e. general & special.
What is cheque? Explain its types.
The cheque is a written order issued by the depositor directing a particular bank to pay on demand a certain person or to the bearer of the instrument.The cheque is an important means of payment. It is used for paying a large sum of money. It is the most widely used tool for drawing money from the bank. It is used by the buyer or debtor to pay the due amount of goods to his seller or creditor. It is an unconditional order drawn upon a specified banker signed by the maker.
The following are the types of cheque:
What is a drawer of the cheque?
A drawer is a person who signs on the cheque. He/she is also known as the depositor or cheque marker.
What is a drawee of the cheque?
The drawee is the bank. It is the party whom the drawer gives the order to pay the amount of the cheque to the person named on the cheque or his order or to the bearer.
What is a payee of the cheque?
The payee is the party who presents the cheque for payment. He is the person who receives money from the bank.
What is a bearer cheque?
A bearer cheque is the one, whose money is made payable to the person who presents it into the bank counter.
What is an order cheque?
An order cheque is the one, which is made payable to a certain person or order of the drawer.
What is a crossed cheque?
The cheque which is issued with the two parallel lines on its face or without stating any word is called a crossed cheque.
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