Multiple choice

Z is issued 3 cheques on December 12, 2015. He dated the 1st cheque as December 02, 2015, the 2nd cheque as December 12, 2015 and the 3rd cheque as December 22, 2015. These are presented for payment on December 18, 2015, the but account was opened on December 05, 2015.

  1. The 1st cheque is post dated and the 3rd cheque is ante-dated. These cannot be paid, but the 2nd cheque can be paid.

  2. The 1st cheque is ante-dated and the 3rd cheque is post dated. These cannot be paid, but the 2nd cheque can be paid.

  3. The 1st cheque is ante-dated and can be paid, while the 3rd cheque is post-dated and cannot be paid. 2nd cheque can also be paid.

  4. The 1st cheque is post-dated and cannot be paid, but the 2nd cheque can be paid.
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C Correct answer
Explanation

Types of Cheque: i. Ante-dated cheque: A cheque bearing a date prior to actual date of signing the cheque or opening of an account is called an ante-dated cheque which is valid and can be paid till it becomes stale. For example, a heque dated January 9, 2013 for an account opened on January 25, 2013 can be paid. ii. Stale cheque: If the validity of the cheque has already expired, it is called stale cheque and cannot be paid. The normal maximum validity of a cheque is 3 months. Earlier, it was 6 months. If a cheque is presented after 3 months, it will be returned. iii. Post-dated cheque: The cheque which bears a date subsequent to the date on which it is drawn is called post-dated cheque. For example, a cheque drawn on January 10, 2013 bears the date of January 12, 2013. If a bank notices a post-dated cheque presented for payment before the date appearing thereon, the cheque will be returned marked post-dated or the bank will hold onto the cheque until it is able to be cashed in.

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