With the arrival of electronic transfers, paper cheques are not used as frequently as they once were. But sometimes you have to fill a paper cheque. write a cheque So, it’s good to know how to write a cheque.
It can be tricky if you are writing it for the first time—however, not a big deal.
Here are some steps you can follow to write the cheque correctly.
What are the things you need to know before writing a cheque?
You need to know six things to write a cheque because a cheque contains six blanks to fill.
1.Date
2.Recipient’s name
3.Amount in numbers
4.Amount in words
5.Memo
6.Signature
Date:
On the top right-hand corner of the check appears a blank. Write the date in it. Writing the date is mandatory so that the bank and recipient know when you write it.
Recipient’s Name:
Write the recipient’s name correctly next to the phrase, “Pay to the order of.”
People often write cash in the recipient’s name. It is not safe because anyone can deposit the payment if the recipient’s name is nowhere there.
Amount in numbers:
Write the payment amount in numeric form, As PKR 12,000 or $20 (Currency units vary depending upon the country.)
Amount in Words write a cheque:
Right below the line Pay to the order of, appears another line. Write the same amount in the format of the words you wrote in the numeric form before in the box. For example, for writing 12,000, you will write Twelve Thousand.
Memo:
On the lower left of a paper, a cheque appears a line to mention why you wrote the cheque.
It is optional although, it can be very productive
IF:
You want to keep a record of why you wrote the cheque.
You’ll want the recipient to withdraw money only for the purpose you mentioned.
You are paying it to some utility company through a paper cheque. Fill in your account number here.
Signature write a cheque:
On the bottom right corner appears the line where you need to do your signature. This step is mandatory. You should do the same signature you used while opening the chequing account.
Note: If the signature is missing or not the same as your signature registered in the bank, the recipient cannot deposit the cash.
What are the precautions you need to take to write a cheque?
There are some precautions you should take while writing a paper cheque.
Think clearly before filing any blank in the cheque. There is a cost per cheque. The bank will decline the cheque if not filled right. Your cheque will be wasted. Keep all the data in hand before you begin to avoid incorrect filling.
The date below the signature and in the upper right should be the same.
The recipient’s name should be correct at any cost. If it is a company, spelling and suffix as Ltd, Pvt should be exact.
Conclusion:
Thanks to banks for introducing electronic transfer, so you do not mostly need to ask how to write a cheque.
If you need to write one,
you can fill the cheque using any order as it is a paper cheque. There is no restriction of some blank first or others later. But I covered the steps to avoid leaving any crucial detail.
Also read: How to hide savings from benefits
