After studying this chapter you will be able to understand: features of a cheque, types of cheques, bearer cheque, order cheque, anted – dated cheque, stale chequ, mutilated cheque, post-dated cheque,. | Revise Lecture 24 Cheques Cheques generally contain; Place of issue Cheque number Date of issue Payee Amount of currency Cheques 6. Signature of the drawer 7. Routing / account number 8. Fractional routing number A cheque is generally valid indefinitely or for six months after the date of issue unless otherwise indicated, this varies depending on where the cheque is drawn. Cheques Features of a Cheque Cheques Features of a Cheque Some important features of a cheque are given below; A cheque must be in writing and duly signed by the drawer. It contains an unconditional order. It is issued on a specified banker only. Types of Cheques Cheques Types of cheques A cheque used to pay wages due is referref to as a payroll cheque. A traveller’s cheque is designed to allow the person signing it to make an unconditional payment to someone else as a result of paying the account holder for that privilege. These cheques can usually be replaced if lost or stolen. Cheques Types of a Cheque A cheque . | Revise Lecture 24 Cheques Cheques generally contain; Place of issue Cheque number Date of issue Payee Amount of currency Cheques 6. Signature of the drawer 7. Routing / account number 8. Fractional routing number A cheque is generally valid indefinitely or for six months after the date of issue unless otherwise indicated, this varies depending on where the cheque is drawn. Cheques Features of a Cheque Cheques Features of a Cheque Some important features of a cheque are given below; A cheque must be in writing and duly signed by the drawer. It contains an unconditional order. It is issued on a specified banker only. Types of Cheques Cheques Types of cheques A cheque used to pay wages due is referref to as a payroll cheque. A traveller’s cheque is designed to allow the person signing it to make an unconditional payment to someone else as a result of paying the account holder for that privilege. These cheques can usually be replaced if lost or stolen. Cheques Types of a Cheque A cheque issued by a bank on its own account for a customer for payment to a third party is called a Cashier’s cheque. A Treasure’s cheque, a Bank cheque, or a Bank draft. A cheque issued by a bank, but drawn on an account with another bank, is a teller’s cheque. In addition banks often sell money orders. Cheques Broadly speaking, cheques are of four types; Open cheque Crossed cheque Bearer cheque Order cheque Cheques Open Cheque: A cheque is called ‘open’ when it is possible to get cash over the counter at the bank. The holder of an open cheque can do the following; Receive its payment over the counter at the bank. Deposit the cheque in the bearer’s account. Pass it to someone else by signing on the back of a cheque Cheques Crossed Cheque: The risk from an open cheque can be avoided by issuing a crossed cheque. The payment of such a cheque is not made over the counter at the bank. It is only credited to the bank account of the payee. Cheques are usually crossed as a measure of safety. Cheques .
