CAPIZ STATE UNIVERSITY

Pontevedra Campus
A.Y. 2015 2016

GERRY BOY BESA

GLYDEL
BSBA 2C

MR. KHENT MARL L. BALLON

Professor

LETTERS OF TRANSMITTAL
AND REMITTANCE
A correspondent must bear in mind that anything sent by mail should always be accompanied by
a letter. The letter is written to notify the recipient of what is being sent. This will also help in
conveying the message regarding what action the recipient must make. Such letters fall under
transmittal or remittance. Transmittal letters are written to accompany checks, money orders or
any business paper. But in cases involving only money matters, remittance letters are written. In
short, transmittal letters are written to accompany anything sent, while remittance letters are
limited to money matters that may take any of the following forms:
1. Personal check it is a written order to the bank to pay the amount of money stated.
2. Telegraphic transfer this is payment made through a bank or telegraph company that
remits the money for the fee which is paid by the sender.
3. Money orders these are made at post offices.
4. Bank draft this involves a bank transaction. A person orders the bank to remit payment
to another person via another bank. The bank that issues the draft charges the person a
certain fee for the service of remitting.
5. Certified check this is a check certified by the bank for payment in transactions. The
certification is done at the bank.
The first letter below can be classified as transmittal or remittance:
Dear Sir:
We have enclosed our check for 20,000 as partial payment for our loan of 400,000 for
Account No. 145289-211.
Aside from identifying what is being sent, the amount and the account number will
provide a good record for future reference. In this example the correspondent must ensure
accuracy and correctness in the writing of figures so as to avoid controversy.
The second letter is a good example of a simple letter of transmittal. It transmits the
report of the writer to the person who gave him the authority to create a committee.
Dear Sir:
In view of your request last May 16, we have created a committee that would look into the
possibility of establishing the branch in Japan. The findings of the committee including the
conclusion and recommendations are in the report.
If you wish to discuss the report with me, I would be willing to see you in your office at your
most convenient time.
Below are additional samples of letters of transmittal and remittance.
Transmittal

Dear Sir:
In compliance with your instruction contained in your letter dated March 19, I am sending you
the following:
1. Summary of sales for the month of December
2. Inventory of stocks as of the end of March, 2008
3. Expected volume of sales for the months of June and July 2008.
Please acknowledge receipt and let us know when you can ship items mentioned.

Respectfully yours,

Dear Sir:
We are submitting the Summary Listing Report which indicates all transactions relative to
Projects I and II up to April 15, 2006. These data are essential and necessary for our next report.
Relative to your query on the cut-off date of Project II, we are still in Project I, as the line for
Project II is not yet fully committed. We shall inform you immediately when Project II comes
into effect.

Very truly yours,

Dear Sir:
We are sending a copy of the minutes of the general meeting held on February 10, 2008 for your
information and file.

Truly yours,

Remittance:
Dear Sir:
Thank you for shipping the encyclopedias that we ordered last week.
Enclosed is money order no. 5045 for forty thousand pesos (40,000) as partial payment for the
ten (10) volumes.
Truly yours,

Chapter Drills

I.

Review Questions
1. Differentiate a letter of transmittal from a letter of remittance.
2. Give the different kinds of remittance and define each.
3. What is the purpose of writing a letter of transmittal?

II.

Application Drills
A.
Assume that you have been asked by your manager to remit
a check for your branch in Davao. The check should be received by
the branch manager of Davao Write a letter of remittance.
B.
Assume that a relative of your requested you to send his
diploma to Singapore where he is now residing. Write a letter of
transmittal together with the diploma.

III.

Business Terms
Look up the meaning of the following words and use each word correctly in a sentence.
1. Net weight
2. Net price
3. Thrift account
4. Cost plus
5. Transcription
6. Bearer
7. Joint account
8. Power of attorney
9. Raw materials
10. Personal check
11. Consignment
12. Proximo
13. Carrying charge
14. Commodity
15. Back job