Understanding Receipts and Bank Cheques: Essential Definitions
Receipts
A receipt is a document that confirms an amount of money has been received by a person. It is usually issued when a purchase is settled in several payments to justify each transaction. This document typically consists of two parts:
- Parent: This part remains in the checkbook and stays in the possession of the issuer for control purposes.
- Receipt Proper: This is the signed portion provided as proof of payment.
Bank Cheques
A cheque is a commercial document by which a bank or credit institution undertakes to pay a certain amount upon the order of one of its customers, charged to their bank account.
Types of Cheques
- Certified Cheque: The bank guarantees the authenticity of the drawer's signature and the existence of funds for the indicated amount.