Ø Why is the date of the cheque important?
A cheque is valid for 6 months from the date of its issue. In order for it to be honoured when it is presented to the bank, adequate balance has to be available in the account.
Ø Why do some cheques have the bank account number of the payee?
It is to ensure that the money is credited only into the correct bank account.
Ø How can one track the use of cheques?
The cheque numbers have to be in serial order and we should be able to identify each transaction. Writing out the cheque number, payee, date and amount in the summary pages of the cheque book will help keeping track of the cheques we have issued.
Ø What additional precautions can be taken to prevent tampering of cheques?
A transparent sticker tape can be pasted over the amount to prevent overwriting. These practises are followed by organizations that make large number of transactions.
DID U KNOW???
Always, ensure that you have money in the bank to pay for the cheque you have issued otherwise the bank will return (bounce) the cheque and may charge for the transaction. Besides, the payee can take criminal action against you for issuing the cheque without having the funds to pay for it.