What is check How payments made with cheques Explain with example?

A check is a paper, issued by a bank to the account owner. The account owner signs the check and places the amount that he needs to pay on the space provided for it and gives it as payment.

Check payments are usually made for big purchases. This is to avoid the danger of carrying a large amount of cash in your purse, aside from the reason that it is more handy.

For instance, you are going to buy a set of furniture for the office. You can issue a check, indicate the amount of money to be paid to whom or to what company, then sign it as proof. The company owner then brings it to the bank, deposits it and the bank transacts with your bank in transferring the amount of money from your account to the furniture company owner's account.