Accounting – 2.2 Business documents | e-Consult

Cheque: A cheque is a written order instructing a bank to pay a specified sum of money to the person or company named on the cheque. It's a method of payment. A cheque should include the date, the payee's name, the amount in both words and figures, the payer's signature, and the bank's details.

Receipt: A receipt is a document provided to a customer as proof of payment for goods or services. It confirms that the customer has paid the amount requested. A receipt should include the date, the name of the business, a description of the goods or services provided, the amount paid, and the signature of the person receiving the payment.

Scenario 1 (Cheque to Supplier): A business orders materials from a supplier and agrees to pay £200 by cheque. The business would write a cheque made payable to the supplier, detailing the amount and including all necessary information. This fulfills the payment obligation.

Scenario 2 (Receipt to Customer): A retail business sells goods to a customer for £50. The business would provide the customer with a receipt detailing the items purchased, the total amount paid, and the date of purchase. This provides proof of the transaction for both the business and the customer.