Cheque books and passbooks
Cheque books are provided to all current and savings account holders.You can use these cheques to pay people and when cheques are banked, the money is directly debited from your account after being cleared by te cheque clearance system of the bank.
You should store the cheque book in a safe and a dry place. You should neve sign cheques without writing on them who you are paying and the and the exact amount that you are paying. If a signed blan cheque is lost or stolen, you could lose all the money in your account.
If you write a cheque that you do not have the money to pay, it is called defaulting on a cheque or having a bounced cheque. Defaulting on a cheque is punishable by law.
A pass book is a bank document given to all bank account holders by the bank which lists the various transactions that have been made into(credited) and out of ( debited) that account. You can use your pass book when you prepare a bank reconcilitaion statement which is used to tally the balances of your cash and your transactions with the pass book’s reported balance.