Cheques (sem 4)

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Cheques (sem 4)

  1. 1. FRAZER TAYLORS.Y.Bcom B C-10, 4437 1
  2. 2. SUB-TOPICS DEFINITIONOBJECTIVES OF PARTS OF A CROSSING CHEQUE TYPES OF FEATURES/IMP CROSSING ORTANCE TYPES OF 2 CHEQUES
  3. 3. DEFINITION "Cheque is an written instrument containing an unconditional order, addressed to a banker, signed by the person who has deposited money with the banker, requiring him to pay a certain amount of money on demand, or to the order of certain person or to the bearer of instrument." 3
  4. 4. PARTS OF A CHEQUE1) Drawer2) Drawee3) Payee4) Amount 4
  5. 5. FEATURES It is an order of the customer without any condition. It is drawn upon a certain bank in writing. The bank has to always pay it on demand. A cheque is not required to be stamped at all. It is payable to a certain person. 5
  6. 6. IMPORTANCE A cheque is a convenient and safe method.. Facilitate transfer of funds. The use of cheques provides safety to money deposited into bank. 6
  7. 7.  Payment by cheque can serve the purpose of receipt also. There is saving in the use of currency notes by the use of cheques. Cheques facilitate credit... 7
  8. 8. TYPES OF CHEQUES CHEQUES 1) OPEN 2)CROSSED CHEQUE CHEQUEBEARER ORDERCHEQUE CHEQUE 8
  9. 9. 1) OPEN CHEQUESA) Bearer cheques: If a drawer orders the bank to pay a stated sum of money to the bearer, it is called a bearer cheque. Any person who lawfully possesses a bearer cheque is entitled to receive payment of that cheque.B) Order cheques: If a cheque is to the order of a person in whose favor the cheque is drawn it is called order cheque. The order cheque is paid by the bank only when the bank is satisfied about the identity of the payee. 9
  10. 10. 2)CROSSED CHEQUES If a cheque is crossed by drawing two parallel lines across the face of the cheque, with or without the words and Co or A/c payee only, it is called a crossed cheque. The crossed cheque cannot be paid on the counter of the drawee bank. It will be deposited in the account of a person in whose order or favor it is drawn. 10
  11. 11. TYPES OF CROSSING 1) General crossingTypes of crossing. 2) Special crossing 11
  12. 12. 1) GENERAL CROSSING The drawing up of two simple parallel lines on the face of the cheque at the top left hand corner with or without the words & Co. Not negotiable or Account Payee only is known as general crossing. The effect of general crossing is that the crossed cheque cannot be paid at the counter of the bank. Its payment can only be deposited into the payee’s account only. 12
  13. 13. 2)SPECIAL CROSSING A cheque is deemed to be crossed especially when it bears across its face the name of the banker either with or without the words ‘Not Negotiable’. In case of special crossing the payment can only be made to the bank named therein the cheque. 13
  14. 14. OBJECTIVES OF CROSSING It prevents the payment of the cheque to a wrongful holder. It ensures safe payment.. It facilitates in tracing the recipient of the payment.. Further it is a guard against any cheating or theft. 14
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