Cheque
A cheque is a written order to a bank to pay a stated sum of money to the person or business named on
order. A book of preprinted cheques is issued by the bank and the customer is only required to complete
the necessary details of date, amount and the payee(the person or business to whom the money is to be
paid).
e.g. on May 28 2009 Sew and Sew sent a cheque to The Weaving Shed. The cheque and its counterfoil
are as shown below:
Receipt
A receipt is a written acknowledgement of money received and acts as proof of payment. It is usually
issued where goods are sold for cash.
e.g. The Weaving Shed issued the following receipt to Sew Sew non 30 May 2009.
N.B. many accounts are paid by cheque in which case it is not necessary to issue a receipt as proof of
payment