Question

Henry Black, president of Black Hardware, writes a check on his account at the First National Bank to Jim Barton. Who is the payee of the check?

Answer 1

Wouldn't it be the hardware company he owns? So its like him paying himself?

Answer 2

Jim Barton.

Step-by-step explanation:

A payer is someone who pays another person or organization/ party for the services supplied. The payee is the other corresponding party who gets the money from the payer.

In the case of Henry Black writing a check on his First National Bank, the payer is Henry while the payee is Jim. Henry supplies the financial help in return for the services that Jim may/ might have given to him/ his company.