Can any body answer me what is the logic of writing A/c's
payee over the corner of the cheque?
- 5 Answers
- 7296 Views
- I also Faced
- E-Mail Answers
Answer Posted / h.r. sreepada bhagi
Putting 2 parallel lines across the cheque on the left hand
top corner with or with out writing something inside is
called Crossing under the Negotiable Instrument.
If a cheque is crossed, it can only be credited to the
account of the payee & can not be en-cashed over the
counter. If a cheque is written to any one but is not
crossed, it can be en-cashed over the counter. To draw cash
from ones own a/c Self Cheque is issued. To enable another
person to draw cash from one's a/c Uncrossed cheque can be
issued.
Purpose of crossing a cheque is security (i.e. prevention of
misuse and wrongful en-cashment). If an uncrossed cheque is
lost or misplaced, there is a chance of it's en-cashment by
any one who finds it, as the banker can not and is not
required to ensure the identity of the person en-cashing it.
However a crossed cheque can be endorsed in favour of
another party/person as mentioned in teh Negotiable
Instruments Act.
| Is This Answer Correct ? | 5 Yes | 0 No |
Post New Answer View All Answers
define drawer or maker
what is difference between venture capital financing and equity financing?
Data flow of Accounts payable to General ledger?
proprietor pays the hotel expenses of foreign client by his icici bank credit card. and then he pays the credit card bill by canara bank current account. how to pass entries in tally for this secnario
1. what is debenture? 2.Why company will issue shares? 3. What is audit? 4. What is the role of finance department? 5. What is mutual fund?
explain Dual entry concept
total capital stock
Expand-------MTRS
Is it correct to covered fesibility report expenses and survey expenses in pre-operative exepenses ?
What is compensation theorem?
Please suggest the manual records needed to be maintained at NGO/CBO to record the transactions of accounts & inventory. Please also mention the need & purpose of each records/books
Expand-------NABT
drawings by making a DD from bank ( suppose payable towards UIT ) and on cancellation on such DD what journal entry needs to be passed ?
plz send me a solved paper on SBI of clerk post
what is payment method?How many payment method we can assign to company code.
