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Question
There are _______ parties to a cheque.
Solution
There are three parties to a cheque.
Explanaton:
- Drawer: The person who writes and signs the cheque, instructing the bank to pay a specified amount.
- Drawee: The bank on which the cheque is drawn, responsible for making the payment.
- Payee: The person or entity in whose favour the cheque is issued and who will receive the payment.
These three parties are essential for the cheque to function as a financial instrument.
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RELATED QUESTIONS
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___________ is the document on the basis of which the entry is recorded in journal.
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The _______ cheque is more safe than other cheques as it cannot be encashed on the counter of the bank.
Prepare specimen of Tax Invoice.
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Prepare specimen of Cash voucher.
Do you agree or disagree with the following statement:
Cheques issued for payment but not presented to bank appears in Cash Book only.
Complete the following statement:
Overcast on receipt side of Pass Book means _________ in Pass Book balance.
Complete the following table:
| Sr. No. | Transactions | Debit Amount (₹) | Credit Amount (₹) |
|
1 |
Paid Income Tax ₹ 5,000 by cheque | ? | Bank A/c |
| 2 | Received from Sonali ₹ 20,000 by RTGS | Bank A/c | ? |
| 3 | Sanjay became insolvent and not received ₹ 500 | ? | Sanjay A/c |
| 4 | Purchased Horse for ₹ 10,000 |
? |
Cash A/c |
| 5 | Transferred from Fixed deposit A/c of proprietor to business Bank A/c ₹ 50,000 | Bank A/c | ? |
Complete the following table:
| Reasons | When Normal balance as per Cash Book is given Add/Less | When Normal balance as per Pass Book is given Add/Less |
| 1) Interest debited in Pass Book only. | ||
| 2) Direct deposit made by customer in bank recorded in Pass Book | (+) | |
| 3) Cheque deposited into bank but not yet collected by bank | ||
| 4) Cheque deposited into bank is dishonoured | (+) | |
| 5) Cheque issued but not presented for payment. | (-) |
