Question

9. A shopkeeper Sudha has to make a payment to the wholeseller and writes a cheque for a specific
amount to the wholeseller. The wholeseller takes his cheque, and deposits it in his own account in the
bank. The money is transferred from one bank account to another bank account in a couple of days. The
transaction is completed without any payment of cash.
Analyse the information given above, considering one of thefollowing correct option:
a) Check payments
(b) Interest on deposits
b) Demand deposit
(d) Money transfer​

Answer 1

Answer:

A shopkeeper Sudha has to make a payment to the wholeseller and writes a cheque for a specific

amount to the wholeseller. The wholeseller takes his cheque, and deposits it in his own account in the

bank. The money is transferred from one bank account to another bank account in a couple of days. The

transaction is completed without any payment of cash.

Analyse the information given above, considering one of thefollowing

Answer 2

Answer:

It is a) Check Payment

Explanation:

Sudha has made a cheque payment since the requirements of check payment transactions (as given below) has been met

A cheque, is a document which orders a bank to pay a particular amount of money from a person's account to another person in whose name the cheque is issued.

The person writing the cheque, is referred to  as the drawer, has a transaction banking account (often called a current,/savings/checking account) where their money is held.

The drawer writes the details of the money, date and payer, on the cheque and signs it, ordering the bank, known as the drawee, to pay the specified amount of cash to that person or company.

Cheques are a type of exchange bill which has been developed to make payments without carrying large sums of money. A check is a negotiable method for a financial institution to pay a certain amount of a certain money  from a certain transactional account kept with that financial institution in the name of the drawer.