Steps to Write a Cheque
Friday, September 19, 2008 18:49
A cheque, which is also spelled as “check” in American English, is a negotiable instrument instructing a financial institution, such as a bank, to pay certain amount of a specific currency from an identified demand account held in the payee’s name with that institution. Both the maker and payee of the cheque may be natural persons or legal entities. It had its origins in the ancient banking system, where bankers would issue orders at the request of their customers, to pay money to specified payees.
The art of writing a cheque may be lost in the new era of ATM check cards, online bill paying as well as credit cards. However, it is still a very effective method to make payments, or to transfer funds. If you have never written a cheque before but want to start using them now, here’s some brief instruction about how to do it.
First of all, start by writing in the date using any format, as long as it’s legible. You can either use the current date or a future date for a post-dated cheque.
Secondly, write the name of the person or organization receiving the cheque on the line that starts with “Pay to the Order of” or “Payable to”.
Thirdly, write the amount of money in Arabic numeral on the cheque in the small space that starts with a currency sign such as “$” or “£”.
Fourthly, the same amount should be written down in words for whole amounts, a fractional figure for amounts less than a dollar or a pound, and a straight line to fill up the remaining space on the line ending with the word “Dollars/Pound” like this: XX and xx/100 ——Dollars/Pound.
For step five, you need to sign the signature line at the lower right.
Then, note the cheque number, date, payee and amount on the check stub or in the cheque ledger at the front of the cheque-book.
Last but not least, you should subtract the amount of the cheque in order to know how much you have left in your account.
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