Page 299 - Agriculture_Form_Three

Agriculture for Secondary Schools

counterfoil of the pay-in slip and returns it to the depositor. Large farm businesses
usually obtain the complete bunch of pay-in slips and get them all bound in a book.
The counterfoil of the pay-in slip becomes a source document which acts as evidence
for the customer to record this transaction in the books of accounts.

Activity 13.5
1. With assistance of the teacher, get the sample of unfilled bank pay-in slips (if

applicable from different banks) and practise filling them.

2. Outline the lessons you have learnt from this activity and share them in class.

Cheque
A cheque is a document used for making a payment after being written and signed
by authorised person(s), hence it acts as an order to a bank to pay a stated amount
from the drawer’s account. A cheque is the safest and easiest way of paying a debt
or a purchase. Sometimes, two different bank accounts may be used, such as current
and deposit account. With a current account, there is little or no interest and money
can be withdrawn without notice. While, with a deposit account, the account’s owner

earns interest. However, notice must be given before money can be withdrawn.
Generally, the longer the notice period, the higher the interest rate and vice versa.
The current account is mostly used for farm business transactions. To open a bank
account, one normally has to deposit a certain amount of money and the bank will
require a specimen signature of the person concerned. More than one person might
be part of required signatories by the bank for some farm business accounts. If the
person concerned is unknown to the bank, the bank may ask for reference from

a known person and/or local authority of the client. After the required account is
opened, the bank will issue a cheque book.

After a cheque book has been provided by the bank, payments can be made by
cheque given that there is sufficient money in the respective bank account. The
person(s) who writes the cheque is the drawer of the respective bank account. The
drawer writes on the cheque the date, the name of the payee, that is, the person who
is to receive the money, the amount of money in letters and in figures and then the

cheque must be signed by the drawer. Important details should be copied on the stub,
that bears the same number and later entered in the account books bearing important
details which are name of payee, number and kind of products/commodities, and
amount paid.

Student’s Book Form Three
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