unit-8-banking-transactions-and-three-column-cash-book

Unit-8 Banking Transactions and Three Column Cash Book

In this unit you will learn about the Three Column Cash Book-cash book having an additional column for banking transactions.

What is a Cheque? 





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Learning Pundits Content Team

Written on Jun 25, 2019 2:28:49 PM

A cheque book contains a number of leaves (10 to 20 or 50 leaves) called cheques. A cheque is an instrument used for withdrawing money from the bank. It is an unconditional order on the bank made by its customer, instructing the bank to pay the amount specified therein to the person named in the cheque or to his order. The person who draws a cheque is called 'drawer’. The bank on whom the cheque is drawn is called 'drawee’. The person in whose favor the cheque is drawn (or to whom it is payable) is called 'payee'. Look at Figure 8.3 for specimen of a cheque. In this cheque Mr. S. Jain is the drawer. He has drawn and signed the cheque. The Bank of Baroda on whom the cheque is drawn is the drawee. Mr. P. Ram Dev is the payee as the cheque is payable to him.