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JSS2: BUSINESS STUDIES – 2ND TERM
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Bank Services | Week 18 Topics|1 Quiz
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Insurance | Week 27 Topics|1 Quiz
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Personal Qualities of an Entrepreneur | Week 31 Topic|1 Quiz
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Business Opportunities | Week 42 Topics|1 Quiz
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Consumer Rights and Responsibilities | Week 52 Topics|1 Quiz
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Shopping Tips | Week 64 Topics|1 Quiz
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Bookkeeping Ethics I | Week 72 Topics
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Bookkeeping Ethics II | Week 82 Topics|1 Quiz
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Ledger Entries | Week 93 Topics|1 Quiz
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Petty Cash Book | Week 107 Topics|1 Quiz
Lesson 1,
Topic 5
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Reasons for Dishonouring a Cheque
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Why would banks (drawee) dishonour a cheque? Here are some reasons below:
1. If the drawer is bankrupt.
2. Insufficient funds in the account of the drawer.
3. Alteration of the Cheque: If alteration on the cheque is not signed against by the drawer, the bank will not honour it.
4. If the cheque is not signed by the drawer.
5. If the drawer’s signature is irregular.
6. If the cheque is post-dated.
7. If the cheque is stale.
8. If the account is frozen.
9. A difference in figures and words.
10. Mutilation of a cheque.
When a cheque is torn into two or more pieces and presented for payment, such a cheque is called a mutilated cheque.