What is a check? What to do with voided cheques?

What is a check? What to do with voided cheques?

A check refers to a bill issued by the drawer and entrusted by the bank to handle the check deposit business to unconditionally pay a certain amount to the payee or bearer at the sight of the check. Checks can be used to settle all kinds of payments of units and individuals. On July 8, 2007, the People’s Bank of China announced that checks can be used across the country.

 The basic parties of a check include the drawer, the payer, and the payee. It is a kind of entrusted bill, the drawer is the unit or individual that issued the check, and the payer is the drawer’s account bank. Compared with money orders and promissory notes, cheques have two notable characteristics: the payer is a bank or other financial institution, and the check is payable on sight. Cheques can be endorsed and transferred, but checks used for cash withdrawals cannot be endorsed and transferred.

 Types of checks:

 Cheques are divided into cash cheques, transfer cheques, and ordinary cheques according to the payment method.

 (1) Cash check. Checks that have the word “cash” printed on them are cash checks. Cash checks can only be used for cash withdrawals, not for transfers.

 (2) Transfer check. A check with the word “transfer” printed on it is a transfer check. Transfer cheques can only be used for transfers, not cash.

 (3) Ordinary check. Checks that do not have the words “cash” or “transfer” printed on them are regular invoices. Ordinary invoices can be used for cash withdrawals and transfers. Crossed cheques are crossed cheques by drawing two parallel lines in the upper left corner of ordinary cheques. Crossed cheques can only be used for transfer, not cash.

 How to withdraw money by cheque?

 1. Checks can be simply divided into transfer checks, cash checks, and ordinary checks.

 2. If it is a cash check, it is very simple to collect it directly at the designated bank counter. There is no need to pay taxes but beware of losing it. Generally, anyone who gets a cash check can get the money. If it is a transfer check, it is more troublesome. First, you must have your account opening bank, endorse your own account opening bank name, account number, and official seal, and go to the designated bank. There is also no tax, and if the amount is large, you must apply to the bank in advance.

 What to do with voided cheques?

 The general approach to voided cheques:

 Generally speaking, the main methods for dealing with voided cheques are as follows: if the unit has already recorded the accounts, the method of reversing bank deposits in red letters can be used first in the accounting process, and at the same time, the voided cheques can be used as an attachment for reversal, and then the cheques can be re-issued; For the unit that has not recorded the accounts, but the economic activities are still in progress, re-issue the check, attach the invalid check to the back of the voucher or bind it separately; for the business that the unit has not recorded, but the economic activities have been terminated, it is not necessary to re-issue the check. , you can stamp the voided check with a voided stamp (or cut corners), and handle it as an important voided voucher; if the unit has already recorded the account but does not need to re-issue the check, it will be reversed.

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