Tag: negotiable instruments 1 - cheque

Questions Related to negotiable instruments 1 - cheque

The person to whom the amount of cheque is payable or paid is called payee.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. True

  2. False

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Correct Option: A
Explanation:

The maker of a cheque is called the 'drawer', and the person directed to pay is the 'drawee'. The person named in the instrument, to whom or to whose order the money is, by the instrument directed, to be paid, is called the 'payee'.

When a cheque is returned dishonoured, it is recorded in ______________.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. Cash column on the credit side

  2. Cash column on the debit side

  3. Bank column on the credit side

  4. Bank column on the debit side.

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Correct Option: C
Explanation:

The dishonored cheque is shown in the debit column of the bank statement.

Unpresented cheques are also referred as ___________.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. uncollected cheques

  2. uncredited cheques

  3. outstanding cheques

  4. bounced cheques

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Correct Option: C

Some of the transaction that is dependent on bank statement are __________.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. collection charges

  2. dividends received

  3. rent received

  4. all of the above

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Correct Option: D

A document which is used to deposit the amount in the bank account is __________.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. Withdrawal slip

  2. Pay in slip

  3. Cheque leaf

  4. All of the above

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Correct Option: B
Explanation:

Pay in slip as the name suggests is a slip that is filled by the customer to deposit money in the bank account either by cash or by cheque. The things that need to be filled in a pay in slip are the account details in which the money is to be deposited, amount to be deposited by cash or by cheque, and the signature of the depositor.

The pay in slip provided by the bank to the account holder is divided into _____ parts.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. 2

  2. 3

  3. 4

  4. 5

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Correct Option: A
Explanation:

A pay in slip provided by the bank to the account holder is divided into 2 parts. One is the counterfoil being the smaller part of the slip which acts as a documentary evidence of the money deposited in the bank. Whereas the other part being the longer one is kept with the bank having all the details of the customer and is kept for record with the banks.

Left hand side of the pay in slip is known as ___________.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. Acknowledgment

  2. Folio number

  3. Counterfoil

  4. All of the above

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Correct Option: C
Explanation:

Left hand side of the pay in slip is known as the counterfoil. A pay in slip provided by the bank to the account holder is divided into 2 parts. One is the counterfoil being the smaller part of the slip which acts as a documentary evidence of the money deposited in the bank

The contents of the pay in slip in the main part and the counterfoil are completely different.

business organisation and correspondence negotiable instruments 1 - cheque meaning and types of banks banking and bank transactions bills of exchange, promissory notes and hundis

  1. True

  2. False

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Correct Option: B