atswa pilot questions answers part i - The Institute of Chartered ...

(c) Business Name application form must include the following items:
(i) The business name or names;
(ii) The general nature of the business;
(iii) The full postal address of the principal place of business;
(iv) The full postal address of every other place of business;
(v) The full surnames and forenames of the individual or members of the
firm as well the age, sex, usual residence and occupation.
(vi) Passport photographs of the members
(1 Mark each for any 4 = 4 Marks)
(Total 12½ Marks)
QUESTION 6
(a) State FOUR types of negotiable instruments (4 Marks)
(b) Define Cheque (2 Marks)
(c) Enumerate FOUR of the circumstances where a banker may not honour the
cheques of his customer.
(4 Marks)
(d) What is the effect of a general crossing on a cheque? (2 1/ 2 Marks)
(Total 12½ Marks)
SOLUTION 6
(a)
(b)
(c)
(d)
The following are negotiable instruments:
(i) Bills of exchange;
(ii) Cheques;
(iii) Promissory Notes;
(iv) Bearer bonds;
(v) Bearer Debentures;
(vi) Dividend warrants.
(1 Mark each for any 4) = (4 Marks)
A cheque is a bill of exchange drawn on banker and payable on demand.
(2 Marks)
A banker may not honour the cheque of his customer in the following
circumstances:
(i) Upon a countermand by the customer;
(ii) Upon the banker having notice of the death of the customer;
(iii) Upon the customer becoming insane to the knowledge of the banker;
(iv) Upon a garnishee order being placed on the account by the court;
(v) Upon winding-up proceedings of a company being commenced against a
corporate customer notice of which is given to the banker.
(1 Mark each for any 4 = (4 Marks)
The effect of general crossing on a cheque is that the proceeds of the cheque
may only be collected through a collecting bank, and the proceeds cannot be
collected across the counter.
(2½ Marks)
(Total 12½ Marks)
48