Cheque, Cashbook and Bank Reconciliation statement (Short Questions)
What is cheque?
A cheque is an unconditional order in writing drawn by a customer on his bank.
OR
A cheque is an unconditional order in writing, drawn by a customer on his bank requesting to pay on demand
a certain sum of money, to a person named in the cheque, or to the bearer to the order of a stated person.
How many kinds/types of cheque?
There are three kinds of cheque:
(1) Bearer Cheque (2) Order Cheque (3) Crossed Cheque
What is a bearer cheque?
A cheque on which the phrase or "bearer" is written after the name of the payee. It is payable to any one who may present it at the bank.
What is an order cheque?
A cheque on which the phrase or "order" is written after the name of payee. It is payable to a certain person or order.
What is a crossed cheque?
When two parallel lines are drawn across the face of a cheque, it is said to be crossed cheque. It cannot be en-cashed at the counter of the bank. two parallel lines are drawn on the face of the cheque of left side corner.
What is meant by dishonor of cheque?
If the bank refuses to honor the cheque due to any reason, then the cheque is called dishonor of cheque.
OR
Sometimes there may be a mistake in writing a cheque or the amount of deposit in bank account may be less than the amount of cheque drawn. In such a case the bank will refuse to honor the cheque is called dishonor of cheque.
What is mean by endorsement of the cheque?
The holder of the cheque may transfer the cheque in favor of his creditor for clearance of his debt. This process is known as endorsement of cheque.
What is a bank draft?
Bank draft is one of the transferring money from once place to another. It is an order drawn by a bank on one of its branches requesting the later to pay the specified sum of money to the person named in the draft.
What is meant by hundis?
A hundi is exactly like a bank draft. One trading firm upon its branches drawn it.
What is a postal order?
Postal order like cheques are written order made by one post office on other. It is of small amount. It serves the same purpose as bank draft.
What is a cash amount?
Cash amount is an account ledger in which posting of only cash transactions are made from journal.
What are the different kinds of cash book?
There are three kinds of cash book:
Single column cashbook or simple cashbook.
Double column cashbook.
Treble column cashbook.
Define bank.
A bank may be defined as an institute, which purchases and sells money and transacts other financial business of like nature.
How many functions of bank are?
There are three functions of bank.
Primary functions General functions ?Agency functions
Define current account.
An account in which customer is allowed to deposit or withdraw the money as and when he likes. Usually banks do not allow interest on current account.
Define saving bank account (profit and loss sharing account)
An account in which deposits can be made only twice or trice a week, not exceeding a certain amount. Banks pay interest on these types of accounts.
What is a fixed deposit account?
An account in which certain amount is deposited for a fixed period. The amount can not be withdrawn before fixed time. The bank allows interest on fixed deposit.
What is cheque?
A cheque is an unconditional order in writing drawn by a customer on his bank.
OR
A cheque is an unconditional order in writing, drawn by a customer on his bank requesting to pay on demand
a certain sum of money, to a person named in the cheque, or to the bearer to the order of a stated person.
How many kinds/types of cheque?
There are three kinds of cheque:
(1) Bearer Cheque (2) Order Cheque (3) Crossed Cheque
What is a bearer cheque?
A cheque on which the phrase or "bearer" is written after the name of the payee. It is payable to any one who may present it at the bank.
What is an order cheque?
A cheque on which the phrase or "order" is written after the name of payee. It is payable to a certain person or order.
What is a crossed cheque?
When two parallel lines are drawn across the face of a cheque, it is said to be crossed cheque. It cannot be en-cashed at the counter of the bank. two parallel lines are drawn on the face of the cheque of left side corner.
What is meant by dishonor of cheque?
If the bank refuses to honor the cheque due to any reason, then the cheque is called dishonor of cheque.
OR
Sometimes there may be a mistake in writing a cheque or the amount of deposit in bank account may be less than the amount of cheque drawn. In such a case the bank will refuse to honor the cheque is called dishonor of cheque.
What is mean by endorsement of the cheque?
The holder of the cheque may transfer the cheque in favor of his creditor for clearance of his debt. This process is known as endorsement of cheque.
What is a bank draft?
Bank draft is one of the transferring money from once place to another. It is an order drawn by a bank on one of its branches requesting the later to pay the specified sum of money to the person named in the draft.
What is meant by hundis?
A hundi is exactly like a bank draft. One trading firm upon its branches drawn it.
What is a postal order?
Postal order like cheques are written order made by one post office on other. It is of small amount. It serves the same purpose as bank draft.
What is a cash amount?
Cash amount is an account ledger in which posting of only cash transactions are made from journal.
What are the different kinds of cash book?
There are three kinds of cash book:
Single column cashbook or simple cashbook.
Double column cashbook.
Treble column cashbook.
Define bank.
A bank may be defined as an institute, which purchases and sells money and transacts other financial business of like nature.
How many functions of bank are?
There are three functions of bank.
Primary functions General functions ?Agency functions
Define current account.
An account in which customer is allowed to deposit or withdraw the money as and when he likes. Usually banks do not allow interest on current account.
Define saving bank account (profit and loss sharing account)
An account in which deposits can be made only twice or trice a week, not exceeding a certain amount. Banks pay interest on these types of accounts.
What is a fixed deposit account?
An account in which certain amount is deposited for a fixed period. The amount can not be withdrawn before fixed time. The bank allows interest on fixed deposit.
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