What is a Cheque book?

What is the one thing that employees would most look forward to at the end of each month, apart from their salaries? That’s a trick question, there is none! The receiving of one’s salary has always been the most anticipated time of the month for many, if not all, of the employees of any company, be it a public or private corporation. Some companies choose to bank in the employees’ salaries directly to the stipulated bank account. Some choose to issue cheques for the employees to the bank themselves. see below what a cheque is and features contained in a cheque.

Cheque booklet: A cheques book is representative money that orders a bank to pay a specific amount of money from a person’s account to the person whose name is written on the cheques.

Cheques aren’t only used by companies to pay their employees; other individuals and businesses will also use them in order to pay large sums of money due to their safety and as well as the ease of use.

 

Cheque booklet: A cheques book is representative money that orders a bank to pay a specific amount of money from a person’s account to the person whose name is written on the cheques.

Cheque contains the following details which are:

  1. Name of the payee.
  2. Signature of the cheque owner.
  3. Date of the cheque presented for payment.
  4. The amount in words and figures.
  5. Must be an unconditional order.

Parties to a cheque are listed below:

The cheques owner is referred to as Drawer

The recipient of the money is Payee

The bank or other financial institution where the cheques can be presented for payment is Drawee.

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