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Using TurboCASH

 







SOURCE DOCUMENTS ISSUED
CHEQUES
  
A chequebook is a very important and special care should always be exercised as to who has access to the chequebook, who may write out cheques and who may sign cheques. If a chequebook ends up in the wrong hands, a business may suffer losses, such as fraud with cheques, which is a common crime. A cheque book consists of a cheque and a cheque counterfoil or stub.

Before any cheque can be issued, you must be sure that there are sufficient funds in the bank account. If you do not have any money in your bank account, the bank should approve an overdraft facility before the cheque can be issued. If you do not have sufficient funds or facilities in your bank account, the cheque may be returned unpaid.

Specimen of a written cheque counterfoil or stub and a cheque

 

Amount paid in words. Authorised signature of the cheque account. Name of the cheque account holder. Date of the cheque payment. Or bearer - needs to be cancelled with two lines, if the cheque is not issued for cash. Amount of this cheque in figures. Cheque number. Branch code of the bank where the cheque account is kept. Account number of the cheque account. Cheque number. Amount of this cheque which is paid. Reason for payment - short description for what the payment is. To whom the cheque is paid or issued. Date of the cheque payment. Branch code of the bank where the cheque account is kept. The name of the beneficiary or the party which is paid who will cash the cheque. Name of the Bank or Financial Institution where the cheque account is kept. Write - Not transferable or not Negotiable between two parallell lines to cross a cheque, unless it is a cash cheque.

The next important issue is to write clearly and readable on the cheque the cheque with ink that is not erasable and not to leave any room for possible fraudulent additions or alterations. Any blank spaces should be ruled through.

How do I write a cheque?

Field Description
1. Date: Fill in the date on both the cheque and the counterfoil.
2. To : Fill in the name of the beneficiary (supplier or creditor) on both the cheque and the counterfoil It should be the same as the Pay line on the cheque.
3. For: Fill in the reason for the payment (i.e. payment of account, petrol, etc.) This will help you to allocate the payment to the correct account. This is not applicable to the cheque itself.
4. Amount: Fill in the amount. The amount in words must also be entered.
5. Crossing: Enter the words NOT TRANSFERABLE between 2 parallel lines, if is not a cash cheque.>

Sign the cheque and attach the cheque to any supporting documents, if any, before posting the cheque or hand the cheque to the beneficiary.

When the cheques are cleared by the bank (cashed), the cheques are usually returned together with the bank statement. These cheques should be checked with your bank statement when doing the bank reconciliation. These cashed cheques should be retained as proof of payment in the case where a beneficiary alleges that payment has not been received.

These cashed cheques may also be needed to proof fraud with cheques, if somebody has been tampering with your cheques.