What is a cheque? What is the advantage of using cheque for payment?
Answers
Answer:
A cheque is a document you can issue to your bank, directing it to pay the specified sum mentioned in digits as well as words to the person
advantages of cheque for payment
1. A cheque provide easy and inexpensive way of transferring money.
2. No need of checking and counting the bank notes.
3. Easy transaction.
Explanation:
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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. The following are advantages of cheques:
1. IT helps to avoid carrying bulk cash which is very risky especially in modern days.
2. Crossed cheques are safe for remittance purposes. In case of fraud, the payee or endorsee can be found out.
3. Payments/salaries received through cheques are safe. It creates evidence for having made the payments.
4. When payments/salaries are made through cheques, giving receipts are not necessary.
5. All cheque payments will be recorded in the books of the bank. No necessity to keep a separate record of all payments made.
6. Cheques can be transferred from person to person. This will help one to make payments to sellers of goods and services.
7. Printing of more currency notes can be avoided when cheques are used to make payments.
8. Handling of huge cash on a daily basis is avoided.
9. Widespread use of cheques eliminates black money to a large extent in the economy.