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. Meaning
A cheque is an unconditional order directing the banker to pay a certain sum of money only to or to the order of a certain person.
A draft is an order to pay money drawn by one office of a bank upon another office of the same bank for a sum of money payable to order on demand.2. Facility
The current account and saving account holders get a cheque facility.
Draft is issued to anyone even to non-account holders.
3. PurposeCheques are used to make payments or to settle transactions. There is no certainty of payment in the case of cheques as they can be dishonoured or payment can be stopped.
The main purpose of a draft is to transfer money from one place to another or to guarantee the certainty of payment to the payee.
4. DrawerIn case of cheque, the drawer is the customer of the bank.
In case of draft, the drawer is the bank itself.
5. Bank chargesThe bank may not charge for issuing the cheque book.
The bank charges a nominal fee or commission to issue a draft.
6. DishonourCheques can be dishonoured for various reasons.
There is no question of dishonouring of draft.
7. Stopping of paymentIn case of cheque, the drawer can ask the bank to stop payment of the cheque even if it is delivered to the payee.
In case of draft, the purchaser of the draft can ask the bank to stop payment before the draft is delivered to the payee.
8. PopularityCheques are very common and popular mode of payment.
Drafts do not enjoy much popularity as compared to cheques.
9. ClearanceIn case of cheque, there is a need for clearance.
In case of a draft, there is no need for clearance, if DD is drawn on the same bank.
10. Parties involvedThree parties are involved in cheque transaction viz., (a) Drawer, (b) Drawee, and (c) Payee.
Two parties are involved in draft transaction viz., (a) Drawer, and (b) Payee
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What are the duties and responsibilities of bank teller?
he is the point of the customer,so he has to clear their issuing bank drafts and cheques.
What methods can be used to deposit cash and cheques to a business bank account?
By usin cheques,it can be a cross cheques or open cheques
Can cheques be falsified?
Yes. Cheques can be falsified but it is illegal. Only banks can issue Cheques to their customers. No one else is authorized or rather supposed to print Cheques. If anyone is found/caught printing/using bogus or fake Cheques they can be legally prosecuted and jailed for it.
What are the reasons for differences between bank statement balance and cash book and passbook balance?
This is due to certain errors in the entries. That is the bank and cash books. Some of these errors are addition. When there is unpresented cheques and uncredited cheques.
Why is a bank reconciliation statement prepared?
Bank Reconciliation is prepared to know differences between bank book and passbook, when we do the bank reconsilation will get mainly four differences 1. cheques deposited in bank account but not cleared 2. cheques issued to client's but not clear 3. cheques deposited in bank account but not updated in bank book 4. cheques debited in bank account but not updated in bank books.
What are the duties and responsibilities of bank teller?
he is the point of the customer,so he has to clear their issuing bank drafts and cheques.
Which step of the writing process comes between first drafts and final drafts?
Revision.
How much cash can you take to Italy?
Amounts of more than AUD10,000 in cash (not traveler's cheques or bank drafts) must be reported to Australian Customs when carried into or out of Australia.
Services provided by the bank?
Some services are 1. Accepting deposits 2. Granting loans 3. Maintaining accounts 4. Demand drafts & cheques 5. Funds transfer etc...
Where are you most likely to come across a micr?
We are most likely to come across MICR(Magnetic Ink Character Recognition) in the Bank. The bank enables them to process 300 cheques per minute with 100% accuracy. Hope This Helped You A Lot
What methods can be used to deposit cash and cheques to a business bank account?
By usin cheques,it can be a cross cheques or open cheques
Why cheques are not considered as part of money supply?
what is a cheques
Why there is a difference between cash account in the campony's book and bank statement balance in bank?
The cashbook (account) in the company's books reflects all cheques written to suppliers and all cheques received from customers. However, the bank statement balance shows only cheques that have cleared. So at any date there can be a difference between the cashbook and the bank statement, comprising of cheques issued and/or cheques received but yet to clear and be debited/credited to the bank balance. There may also be differences due to accounting errors or omissions. In doing a bank reconciliation these differences can be identified and corrected.
Difference between a cash book balance and bank statement?
1.cheques issued to creditors but not presented for payment 2.cheques recieved from debtors depositted in to bank and not credited by the bank 3.cheques written and entered in the pass book but not issued by mistake 4.cheques received and entered in the pass book but not depositted in to the bank
Can cheques be falsified?
Yes. Cheques can be falsified but it is illegal. Only banks can issue Cheques to their customers. No one else is authorized or rather supposed to print Cheques. If anyone is found/caught printing/using bogus or fake Cheques they can be legally prosecuted and jailed for it.
Which important step comes between the first and final drafts of piece of writing?
Revision
Which important step comes between the first and final drafts of a piece of writing?
Revision
