Cheque :A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand. It is an Chequeunconditional order in writing be drawn by a customer on his bank. Requesting the specifying bank to pay on demand a certain sum of money to a person named in the cheque or to the bearer or to the order of a stated person.
Types of cheque
Open cheque : A cheque is called open when it is possible to get cash over the counter at the bank.
Crossed cheque : Since open cheque is subject to risk of theft it is dangerous to issue such cheques. This risk can be avoided by issuing other types of cheque called crossed cheque.
Bearer cheque : A cheque which is Payable to any person who presents it for payment at the bank counter is called bearer cheque.
Order cheque : An order cheque is one which is payable to a particular person. In such a cheque the word bearer may be cut out or cancelled and the word order may be written. The payee can transfer an order cheque to someone else by singing his or her name on the back of it..