Somtochukwu

A cheque may be defined as an instruction in writing made upon a bank to pay a given sum of money to a named person or bearer, at a specific date.

Only those who operate current accounts in commercial banks make use of cheques.

Some of the FEATURES OF A CHEQUE are;

1. The name and the branch of the bank.
2. The date the cheque will be presented for payment.
3. The account number of the drawer
4. The amount to be paid to the payee.
5. The serial number for reference purposes.
6. The name of the payee who may be the drawer.
7. The amount in words and in figures.
8. The signature of the drawer which will serve as an evidence to the bank that the cheque
   was issued by the owner of the account.
9. The stamp duty.

Some of the FUNCTIONS OF A CHEQUE are;

1. It Makes Payment Convenient: Its use has reduced the burden of counting large sums of money.
2. It Removes The Risks Of Carrying Physical Cash: Even if an armed robber snatches a cheque away from the owner, it will not be of any use to him and the holder has lost nothing especially crossed cheque.
3. Cheque Acts As A Receipt: With the name of the payee on it and the cheque deposited in the bank, the recipient of the cheque can never deny that such money was paid to him.
4. Cheque makes Business Transactions Possible Within A Short Time: The use of cheques avoids the time wasting that is associated with counting of large sums of money.
5. It Is A Safe Means Of Remitting Money: In order to make it safer, it must be crossed which means that it must be paid into the account of the person whose name is written on the cheque.
6. It Can Be Stopped: The drawer can pay someone with a post dated cheque and can still stop it if he finds out that the purpose for which it was issued is not genuine.

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