What is cheque?
Cheque is a negotiable instrument that orders a bank to pay money from an account to the person whose name is written on a cheque.Cheque is manly used for interbank payment.Since it is a negotiable instrument therefore it guarantees the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.
For eg Suppose a person A having an account in bank say X and want to make payment to B having an account in bank say Y.Now in this case person A simply write cheque in favor of B
How to write cheques?
Things to be noted while writing cheques. In simple words write cheques in a manner that nobody can edit it afterwards.For eg Just start writing cheques right from where the printing of cheque ends, lets understand this with an image
Cheque is a negotiable instrument that orders a bank to pay money from an account to the person whose name is written on a cheque.Cheque is manly used for interbank payment.Since it is a negotiable instrument therefore it guarantees the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.
For eg Suppose a person A having an account in bank say X and want to make payment to B having an account in bank say Y.Now in this case person A simply write cheque in favor of B
How to write cheques?
- Beneficiary name should be written clearly
- Date should be correct
- Amount in words and number should be same and clear
- Your signature on cheque as per mandate given in bank while opening an account.
- Make a cheque account payee by crossing the upper left corner of the cheque or by cutting the word bearer written on cheque.
Things to be noted while writing cheques. In simple words write cheques in a manner that nobody can edit it afterwards.For eg Just start writing cheques right from where the printing of cheque ends, lets understand this with an image
Post a Comment
To be published, comments must be reviewed by the administrator .