Drawing two parallel lines across a cheque means that it has to be paid into...
Drawing two parallel lines across a cheque means that it has to be paid into the account of the
- A) payee
- B) drawer
- C) drawee
- D) payer
Correct Answer: A) payee
Explanation
This question is asking what happens when two parallel lines are drawn across a cheque. The answer is that it means the cheque has to be paid into the account of the payee. The payee is the person or organization that the cheque is written to.Drawing parallel lines across a cheque is known as crossing the cheque. This is a security measure used to prevent the cheque from being fraudulently cashed by someone other than the intended payee. When a cheque is crossed, it can only be paid into a bank account and not be cashed over the counter.
It is important to note that crossing a cheque does not guarantee payment. The bank will still verify that the account has sufficient funds before processing the cheque.
In summary, when two parallel lines are drawn across a cheque, it means the cheque has to be paid into the account of the payee. This is done to increase the security of the cheque and prevent fraud. To learn more about cheques, please read the relevant sections of the recommended textbooks.