Answer to Question #266363 in Accounting for Another you

Question

1. A bank check was prepared by Lucas San Jose in the amount of Seventy Seven Thousand Pesos only to be paid by PBL Bank to Lena Sanchez. This however can only be encashed upon deposit to the latter's account from November 28, 2021. Identify the kind of check written above and the different parties involved therein.

Answer 1

Solution:

This is known as a banker’s cheque or teller check.

 

It is a cheque that is issued to a customer by the bank or acquired from a bank for remittance purposes, that is drawn by the bank and drawn on another bank or payable through or a bank.

 

The parties involved are the drawer, drawee, and payee