A cheque is a document that orders a payment of money from a bank account.

The person writing the cheque, the drawer, usually has a current account. The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee, to pay that person or company the

MEANING

amount of money stated.

Technically, a cheque is a negotiable instrument instructing a financial institution to pay a specific amount of a

specific currency from a specified transactional account held in the

drawer's name with that institution.

PARTS OF A CHEQUE
The four main items on a cheque are:-

What do cheques include & How to write cheques.

CHEQUE WRITING

CHEQUE WRITING

Cheques include the following information:

CHEQUE WRITING

DATE: Include the month, day and year you are writing the cheque.

CHEQUE WRITING

DATE: Include the month, day and year you are writing the cheque.

09/15

06

CHEQUE WRITING

PAYEE: Write the name of the person or business on the line, Pay to the order of.

CHEQUE WRITING

PAYEE: Write the name of the person or business on the line, Pay to the order of.

09/15 Athletic Shoe Company

06

CHEQUE WRITING

AMOUNT IN NUMBERS: Write the amount of the cheque in numbers.

CHEQUE WRITING

AMOUNT IN NUMBERS: Write the amount of the cheque in numbers.

09/15 Athletic Shoe Company

06 55.63

CHEQUE WRITING

AMOUNT IN WORDS: Write the amount of the cheque in words.

CHEQUE WRITING

AMOUNT IN WORDS: Write the amount in words. Start at the left, write any cents as a fraction, and draw a line in the extra space.
09/15 06

Athletic Shoe Company 55.63 Fifty-Five and 63/100 ----------------------------------------------

CHEQUE WRITING

SIGNATURE: Sign all cheques the way you sign the signature card.

CHEQUE WRITING

SIGNATURE: Sign all cheques the way you sign the signature card.

09/15

06

Athletic Shoe Company 55.63 Fifty-Five and 63/100 ----------------------------------------------

George Washington Doe

CHEQUE WRITING

MEMO: Use the memo area to note the reason for the cheque.

CHEQUE WRITING

MEMO: Use the memo area to note the reason for the cheque.

09/15

06

Athletic Shoe Company 55.63 Fifty-Five and 63/100 ----------------------------------------------

Running Shoes

George Washington Doe

CHEQUE WRITING

ROUTING NUMBERS: The nine-digit string of numbers used to identify your bank to process the transaction

CHEQUE WRITING

ACCOUNT NUMBER: The number used to identify your unique account within the bank.

CHEQUE WRITING

CHEQUE NUMBER: The number used to identify a specific cheque within the sequence of the register. It usually includes 3 or 4 digits.

CHEQUE WRITING

TRANSIT NUMBER: Used to list cheques for deposit.

12 Rules About Cheques.

CHEQUE WRITING

12 RULES ABOUT CHEQUES

1) Only write cheques when you have enough money in

your account.
2) Write cheques legibly.

3) Write the cheque amount as far to the left as possible.

4) Always use a pen to write cheques. 5) Dont erase mistakes on a cheque. 6) Dont sign blank cheques.

12 RULES ABOUT CHEQUES

7) 8) Use restrictive endorsements. Print the right date on a cheque.

9) Always keep cheques in a safe place. 10) Destroy voided or unused cheques and deposit slips. 11) Record every transaction in the cheque-book register. 12) Keep a running balance in the cheque-book register.

TYPES OF CHEQUES
Open Cheque Crossed Cheque Order Cheque Bearer Cheque

TYPES OF CROSSING ON CHEQUES

General Crossing

Special Crossing

Account Payee

Non-Negotiable Crossing

ADVANTAGES OF CHEQUE
Paper Trail

Float

Security

Control

ALTERNATIVES TO CHEQUE
Debit and Credit Cards

Wire Transfers
Electronic Bill Payments Online Payment Services

CTS-2010