How to write a Cheque in Canada?
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- Updated On:29-Nov-2022
- Replies:1
Short Answer
There are various columns and details to be filled in a Cheque. Continue reading to find out what are the requirements to complete filling a cheque in Canada.
Detailed Answer
What is a Cheque?
Whenever you open a bank account, you are given a cheque book that has your account details. The bottom of every cheque has a long series of numbers that indicate your cheque number, transit number, bank number and bank account number.
Whenever you intend to pay money to someone, you can fill in the details of the payee and when they deposit this cheque, the money gets debited from your bank account and gets credited in their bank account.
How to write a Cheque in Canada?
Here, we have illustrated the information you need to fill up in the cheque leaf.
- Fill the date in which you are signing the cheque in the date column.
- In the row that says Pay to the order of – write the name or the person, partnership firm or the company to whom you intend to pay the amount.
- Make sure you fill in the full name with correct spelling and entity details.
- Write the amount in number format next to the dollar sign. Make sure you write up to two decimal points.
- Write the amount in words. This should include the cent values too.
- Fill in your valid signature that is clear and the one that matches with your bank account.
- The memo row is optional. You can choose to fill out the reason for the cheque payment. It could be business transaction, utility bill, rent payments, etc.,
Important points to note while writing a Cheque
- Maintain a consistent signature and sign the one that matches your bank records.
- If there are any blank spaces in the cheque, strike them out. This will avoid any third party to fill in details on your behalf and draw more amount.
- Fill up the cheque in pen and not pencil, so that no one can erase and alter the contents of the cheque.
- If any cheque has been filled out wrongly and will not be of use anymore, make sure you shred it.
Writing Cheque in Canada
It is important that you fill out proper details neatly and legibly in your Cheque leaf for the right amount to get transferred to the right account.
If you have filled out wrong details in a cheque, you can void it, by writing VOID in capital letters across the cheque leaf or by shredding it. This will help prevent fraud or misuse of the cheque leaf.
It is important to keep a tab on your account balance to figure out any suspicious transactions.
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