Principle of account > Triple Column cash book
Introduction:
What
do you mean by Endorsement of
Cheque?
Introduction:
What is a Cheque?
A
cheque is a form made available by a Banker to its account holder. It is an
unconditional order in writing that is addressed by a person to another person (being
a financial institution); signed by a person giving it. And requiring the bank
to pay on demand a certain sum of money
Differentiate between a ‘Bearer Cheque’ And ‘Order Cheque’.
Difference
between a Bearer cheque and order cheque can be shown in following points:
a.
If the account holder orders
the concerned bank to give payment to anybody bringing the cheque, such a
cheque is called the bearer cheque but in order cheque name of the person to
get payment is mentioned and the bank should give payment to the particular
person only.
b. In the case of Bearer cheque,
the bank gives payment to the Endorsee without identification but in the case of
an order cheque, the bank may identify the endorsee if needed.
What
do you mean by Endorsement of
Cheque?
The
act of endorsing on a cheque intending to transfer ownership to the third party
is called the endorsement of a cheque. After such transfer of ownership, the
third party gets the payment. The party which endorsed is known as Endorser and
the third party to which the ownership is transferred is known as Endorsee.
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