Tag: bills of exchange and promissory note

True. In case of "A/c Payee" crossing further transferability of cheque is not possible as by writing the words "A/c Payee" it is made clear that the cheque cannot be paid to anyone else other than the person whose name is mentioned as the payee. In case of crossed cheque it can be further transferred. A crossing is basically drawing 2 parallel lines either on the whole cheque or on the top left corner of the cheque, and in "A/c Payee" crossing the word "A/c Payee" are written in between the 2 parallel lines.

False. A pay in slip is a slip which is used to deposit money in the bank account. A counter folio is that small part of the pay in slip that is kept with the depositor for record purpose. 

This is an error of omission. In the given question a cheque of rupees 112 has been omitted to be entered. When balance as per cash book is the starting point the adjustments are to be made in the cash book hence Rs 112 is to be subtracted from the balance of cash book.

False. A bearer cheque is always payable across the bank counter. A cross cheque is a cheque which has to be directly deposited in the bank account of the person so mentioned. It cannot be made payable over the counter.

When balance as per passbook is the starting point adjustments are to be made in the passbook. Unpresented cheques are the cheques which are issued to a person and he/she has not presented it for payment. In this case the cash book is credited by the cheque issued and passbook is not. So the cash book balance is less than passbook, hence unpresented cheques are subtracted from the passbook balance. 

When balance as per cashbook is the starting point adjustments are to be made in the cashbook. Uncollected cheques are the cheques which are deposited in the bank but not cleared by the bank or not credited in the bank account. In this case the cash book is debited by the cheque deposited and passbook is not so the cash book balance is more than passbook, hence uncollected cheques are subtracted from the cashbook balance so that both the books come at par.

When balance as per passbook is the starting point adjustments are to be made in the passbook. Uncollected cheques are the cheques which are deposited in the bank but are not yet cleared by the bank or credit in the account. In this case the cash book is debited by the cheque deposited and passbook is not so the cash book balance is more than passbook, hence uncollected cheques are added from the passbook balance to bring both the books at par.