Can you name the three parties involved when writing a cheque?
Answer:
1. Drawer: Person who wrote the cheque (a/c holder).
2. Drawee: The bank where the a/c is held.
3. Payee: The person to whom the cheque is payable.
Do you the differences between all these types of cheques?
1. Stale cheque.2. Post-date cheque.
3. Endorsed cheque
4. Dishonoured cheque.
5. Crossed cheque.
Answer:
1. Stale cheque (A cheque that is over six months old. It cannot be lodged).
2. Post-dated cheque ( Cheque written for a date sometime in the future).
3. Endorsed cheque (Cheque passed to a third party by the payee by signing the back of the cheque).
4. Dishonoured cheque (Cheque that bounces and the bank refuses to pay due to insufficient funds, missing information contained on the cheque or the cheque is stale).
5. Crossed cheque (Cheques that are made safer by crossing them. Should be done when sending cheques in the post).
