Final answer:
A cheque requisition form should include details such as the payee's name, amount, purpose, authorization, and account to be charged. It ensures controlled and documented issuance of cheques. Overdrafts occur when an account has insufficient funds for the cheque amount.
Step-by-step explanation:
To complete a cheque requisition form, specific information is required such as the payee's name, the amount to be paid, the date, and the purpose for the cheque. Accounts or cost centers to be charged, authorization signatures, and any relevant invoice or billing information should also be provided. The cheque requisition is then processed by the financial department who issues the cheque. This form acts as an internal document used to control and document the issuance of cheques.
When the store receives a cheque as payment for goods or services, it deposits the cheque into its bank account. The bank processes the cheque and transfers the funds from the issuer's account to the store's account. If the issuer does not have sufficient funds in their account, the transaction may result in an overdraft, which is a condition in which the account balance goes negative, potentially incurring fees.