Recording of Transactions-II

money. (refer figure . ) The depositor writes the name of the party to whom payment is to be made after the words Pay printed on the cheque. Cheque Fig.

. : A pay-in-slip Fig. . : A cheque forms have the printed word bearer, which means payment is to be made to the person whose name has been written after the words “pay” or the bearer of the cheques.

When the world ‘bearer’ is struck off by drawing a line, the cheque becomes an order cheque . It means payment is to be made to the person whose name is written on the cheque or to his order after proper identification. Cheques are generally crossed in practice. The payment of a crossed cheque cannot be made direct to the party on the counter.

It is to be paid only through a bank. When two parallel lines are drawn across the cheque, it is said to be crossed. The various types of crossing providing different degrees of safety to the payment are shown in figure . .

In case of an A/c payee only crossing, the amount of the cheque can be deposited only in the account of the person whose name appears on the cheque. When the name of the bank is written between two parallel lines, it becomes a special crossing and the payment can be made only to the bank whose name has been written between the two lines.