Question

Section-B
21. What is a cheque? Distinguish between a crossed cheque and a bearer cheque.

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Answer 1

Answer:

A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued

Explanation:

Difference Between Crossed Cheques and Bearer Cheques:

The bearer cheque does not contain the name of the payee and is payable to the person who presents it at the bank. ... In case of crossed cheque, the name of the individual is already mentioned on the cheque. So, the money is paid to the specified person only.

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Answer 2

Explanation:

A cheque or check is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.

DIFFERENCE BETWEEN A CROSSED CHEQUE AND A BEARER CHEQUE-

The bearer cheque does not contain the name of the payee and is payable to the person who presents it at the bank. ... In case of crossed cheque, the name of the individual is already mentioned on the cheque. So, the money is paid to the specified person only. Bearer cheques are not safe and can be misused if lost.