What Are the Rules for Writing a Cheque Correctly?
Learn the essential rules to write a cheque properly, including how to fill out the date, recipient, amount, signature, and memo for secure transactions.
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To write a cheque, start by writing the date on the top right-hand corner. Then, write the recipient's name on the line labeled 'Pay to the order of.' Enter the amount in numerical form in the box to the right, and write out the amount in words on the line below it, adding 'only' at the end to denote exact amounts. Sign the cheque on the line at the bottom right corner. For added security, you can also write a memo at the bottom left corner describing the cheque's purpose.
FAQs & Answers
- What information must be included when writing a cheque? A properly written cheque includes the date, recipient's name, the amount in numbers and words, the drawer's signature, and optionally a memo describing the cheque's purpose.
- Why is it important to write the amount in words on a cheque? Writing the amount in words helps prevent fraud and errors by confirming the amount intended, as banks use the written amount if there is a discrepancy with the numerical amount.
- Can I add a memo on a cheque and what is its purpose? Yes, adding a memo is optional but recommended to specify the purpose of the cheque, which helps both the issuer and recipient keep track of the payment reason.