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?
Wouldn't it be the hardware company he owns? So its like him paying himself?
Answer:
Jim Barton.
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.