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Understanding Cheques and Cash Receipts

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naomi.chen
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6 views9 pages

Understanding Cheques and Cash Receipts

Uploaded by

naomi.chen
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

A cheque is a written document instructing a

bank to debit your account and pay


someone. Cheques can be used to pay money
in and out of your account.
Typically cheques are used to pay bills,
tradesmen or to pay a someone face-to-face.
A COUNTER FOIL of a cheque is that part of a
cheque, which is torn off and kept as a receipt
by the drawer of a cheque to serve a piece of
evidence or proof for having made the
payment. But now-a-days such practice is not
in vogue.
At the beginning of a cheque book provisions
are made to record all the cheque payments to
serve as a record or proof of payments made.
Cash receipt

Cash receipt is recognized when an entity


receives cash from any external source, such as a
customer, an investor, or a bank. Typically, this
cash is recognized when money is received from a
customer to offset the Trade Receivable generated
when the sale transaction occurred.
A statement of account, also known
as an account statement or customer
statement, is a document that
outlines the transactions between a
buyer and a seller.

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