How to Write a Cheque (Check)
Posted in Money Matters
Filling out a blank cheque seems like it should be a simple process. However, in age of debit cards, automatic teller machines and on-line banking, the need to write cheques is disappearing. There are still places where cash or cheque is the only accepted form of payment; housing rentals being a key example.
If you’ve been brought up using electronic payments and aren’t sure how to right a cheque, here are the steps:
- Date - Fill in the date line, using the format that is most appropriate for your region. Write it clearly, so there is no confusion as to when you wrote the cheque. If you want the payee to have the money immediately, put in the current date. If you want the payee to have the funds at a later date, write a future date. This is called a post-dated cheque. Rent cheques are often collected in this manner.
- Name or payee - The name of the person, business or organization that will receive your cheque is entered on the line that that has the words “Pay to the Order of” or “Payable to.”
- Numerical amount - Write the numerical amount you want to give the payee, on the short line preceded by a dollar sign ($), in the following manner: “78.42.” (Some cheques have a box with a dollar sign.
- Longhand amount - Write the amount using words for dollar amount and a fraction for the cents on the line labeled “The sum of.” Write it like this”Seventy Eight 42/100.” Do not leave any blank space on this line. Draw a line to fill any space. It should look something like this: Seventy Eight —————–42/100.
- Signature - Don’t forget to sign the cheque. No cheque is legal without the signature.
- Optional - If your cheque has a memo line, you can fill in the reason for the payment. E.g., September 2008 rent.
Related Posts:
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
completly usless