1. Major Types of Accounts
 Individuals, Joint & Minor
 Sole proprietorship
 Partnership concern
 Joint Stock Companies
 Others (Agents, Executors,
Administrators, Clubs, Societies etc.

2. Individual’s Account
 Accounts of literate ladies and gents.
 Accounts of illiterate ladies and gents.
 Accounts of Parda observing ladies.
 Joint Accounts
 Minor’s Account

3. Problems In Individual’s
Account
 In case of Death, Two situations
 Died without will
 Died after leaving a will
 In case of died without will an
administrator will be appointed by the
court while in case of died with will and
executor will be appointed by the
competent court.

4. Problems In Individual’s
Account
 Insanity of an Individual customer
 Balance shall be placed at the option of the
manager in lunacy, appointed by the court,
through lunacy order, under the Lunacy
Act, 1912.
 Servicing of a Garnishee Order
 Insolvency of an individual customer
 Insolvency is civil death
 Provincial Insolvency Act, 1921

5. Joint Account
 More than one person
 Relationship is neither of trustees nor of
partners.
 Definite instructions required regarding:
 Operations
 Payment of balance in case of death
 Any joint account holder may lodge stop
payment instructions.
 Removal of these instructions require
consent of all the members.

6. Joint Account
 Member can delegate authority to operate to
a third party.
 Any such authority will deemed to be
cancelled in case of death of the that member
of account.
 In case any of the members of joint account
becomes insolvent, or insane, operation on
the account should be stopped.
 If any member dies, operations of the
account should be immediately stopped.

7. Minor’s Account
 According to S-3 of the Majority Act,
1875:
 “A person who has not attained the age of
18 years is said to be a minor. However,
where the guardian is appointed by the
court of law, majority extends to 21 years”.
 Legally a minor cannot open a bank
account since opening of a bank account is
the result of a contractual relationship
which minor does not possess.

8. Minor’s Account
 Operation In the Account
 Minor can neither give stop payment
instructions nor can claim the balance
during his/her minority
 Operation of the account, nevertheless,
shall rest with the guardian.

9. Minor’s Account
 Operation In the Account
 In case of death or insanity of a minor,
balance is to be paid to the person
authorized by the court of law.
 In case of death, insanity or bankruptcy of
the guardian, balance in the account is to
be paid according to the instructions of the
court of law.

10. Sole Proprietor’s Account
 It is a kind of business which is
controlled and owned by a single
person.
 Proprietor himself is required to operate
the account
 Proprietor can give authority to a third
party for the operation of account.

11. Sole Proprietor’s Account
 Authority to operate is automatically
revoked in the following circumstances:
 Death of the proprietor
 Insolvency / bankruptcy of the proprietor
 Insanity of the proprietor
 If a Garnishee Order has been served on
the firm’s account.

12. Sole Proprietor’s Account
 In case of death of authorized person,
all cheques are to be counter signed by
the proprietor.
 In case of death of the proprietor,
operation of the account should be
stopped immediately.

13. Partnership Accounts
 Partnership is the relation between
persons who have agreed to share
profits of the business, to be carried out
by all or any one of them acting for all.
 Eligibility, Number of Partners, signing
capacity and partnership deed.
 Operational authority can be delegated
to third party.

14. Partnership Accounts
 Incoming of a new partner
 Retirement of a partner
 Death of a partner
 Insolvency of a partner
 Insanity of a partner
 Bankruptcy of the firm

15. Joint Stock Companies
 Private Limited Companies
 Public Limited Companies
 Operations in the account:
 Death, retirement or dismissal of the
directors does not effect operation on the
account.

16. Joint Stock Companies
 The cheque signed by the directors before
their death, should be honored since they
are considered valid instruments.
 Winding up of the company in any manner
terminates its career. Thereafter, no
cheque is to be honored and operation of
the account to be stopped immediately.