5 Marks Each

Question

Show the difference between cheque and Demand Draft.

Vidyadip · Accepted Answer

Points Cheque Demand Draft Who writes? Account holder writes. Bank writes To whom written? Account holder writes to his bank. Bank writes to its other branch. Who gets facility? The account holder of that bank gets the facility. Anybody can get from any bank. When required? For the settlements of local or out station payments. Mostly for sending money to out station. Commission Without any charges to the account holders. For draft, bank has to be paid commission. Parties The drawer and the receiver of the cheque may be different parties. Sender and the receiver are different parties. Payment Amount is to be paid from the account holder’s account. The sender first pays in the bank and then the amount is sent.

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Points	Cheque	Demand Draft
Who writes?	Account holder writes.	Bank writes
To whom written?	Account holder writes to his bank.	Bank writes to its other branch.
Who gets facility?	The account holder of that bank gets the facility.	Anybody can get from any bank.
When required?	For the settlements of local or out station payments.	Mostly for sending money to out station.
Commission	Without any charges to the account holders.	For draft, bank has to be paid commission.
Parties	The drawer and the receiver of the cheque may be different parties.	Sender and the receiver are different parties.
Payment	Amount is to be paid from the account holder’s account.	The sender first pays in the bank and then the amount is sent.

Business Services-2 — OCM STD 11 Commerce — Question

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