This document defines a cheque and describes its key parts and types. A cheque is a written order from a depositor to their bank requiring the bank to pay a specified sum to the payee or bearer. The key parts of a cheque are the drawer, drawee, payee, and amount. Cheques can be either bearer cheques, which are payable to whoever holds the cheque, or order cheques, which are payable only to the specified payee. Cheques can also be crossed, with a general crossing preventing counter payment and requiring deposit only, or a special crossing specifying payment to a particular bank.

1. Cheques
Khankhediya Bharti
Kanika Sarda
Kamakshi Sharma
Divyanshi Dayalani

2. Definination of cheque
Cheque is an instrument in writing containing an
unconditional order, addressed to a banker, sign by the
person who has deposited money with the banker,
requiring him to pay on demand a certain sum of money
only to or to the order of certain person or to the bearer
of instrument."

3. 1) Drawer
2) Drawee
3) Payee
4) Amount
Parts of cheque

4. Types of cheques
A) Bearer cheques:
If a drawer orders the bank to pay a stated sum of money to
the bearer, it is called a bearer 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.
1) Open cheques

5. 2) Crossed cheque
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.
The crossed cheque cannot be paid on the counter of
the drawee bank.

6. Types of crossing
1) General crossing
2) Special crossing
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

7. 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.
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’.

8.  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.
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