28th November 2019

accountingtools
13

What is paying by check?

A check payment is a negotiable instrument drawn against deposited funds, to pay a specific entity a specific amount of funds on demand. The payer's bank then shifts funds from the payer's account to the payee's bank, thereby settling all accounts.

So, what is the spelling of check or Cheque?

cheque. Skip. In American English, check is the standard spelling of the noun referring to a written order for a bank to pay a specified amount from deposited funds. Outside the U.S., the word is spelled cheque. But cheque is confined to this very narrow banking-related sense.

Where is Cheque?

The cheque number is a 6 digit number and is always written at the bottom left-hand corner of the cheque. For the above cheque, the cheque number is '950020'. After the cheque number comes the MICR (Magnetic Ink Character Recognition) code.

What are the types of Cheques?

There are 14 types of cheques as under:
  • Order Cheque:
  • Bearer Cheque :
  • Blank Cheque:
  • Counter cheque:
  • Stale Cheque:
  • Multilated Cheque:
  • Post Dated Cheque:
  • Open Cheque:
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