Q. No. 2: CASE: Mr. Shahid bought furniture from X & Co., for Rs. 50,000/- and issued a cheque drawn on B Bank, Karachi, in favour of X & Co.. The cheque was crossed as " A/C Payee only". Answer the following questions:

i) What are the names of Drawer, Drawee and payee of the cheque?

ii) Can X & Co. transfer this cheque by endorsement in favour of Y & Co. Reason for answer?

iii) Can this cheque be transferred if it is crossed with words " Not Negotiable"? Reason?

iv) If this cheque is wrongly dishonoured by the Bank, who shall be liable for damages and to whom? Reason?

v) What are the advantages of crossing the cheques?