Question

The check acts as payer’s ____ for this instruction

Answer 1

Loss as it is going from the payer's account

Answer 2

The check acts as payer’s order for this instruction

Explanation:

• A cheque is a form of instrument that a payers signs and orders the bank to the make a certain payment. The payment is in form of amount that is written by the payer on the cheque. The payer orders the bank to pay the amount to the person whose name is given on the cheque.
• The person who is the payer is also called the drawer of the cheque and the person has an account in the bank from which he is drawing the money to be paid to another person.  The banking account could be in form of saving account or a current account.
• The person on whose name the cheque is made for payment is called the drawee. The drawer while signing the cheque enters the required details of the amount to be paid in figure and in words. The drawer enters the date on the cheque and puts his signature on the cheque for the money to be paid to the drawee.

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