A cheque book showing a cheque. Image credit

A cheque book showing a cheque. Image credit

ZIMSEC O Level Commerce Notes: Money and Banking: Cheques


  • There ar two main types of cheques viz:
  • Bearer’s cheques.
  • Order cheques.

Bearer’s cheques

An assortment of RBZ issued bearer's cheques. Image credit

An assortment of RBZ issued bearer’s cheques. Image credit

  • These are have the words “Pay the Bearer on demand” written across their face.
  • They are payable to anyone who present the cheques to the counter of the drawee.
  • The cheque does not have the name of the bearer written on it.
  • Bearer cheques are not safe as they can be cashed by anyone presenting them.
  • The have expiry dates.

Order Cheques

  • They have an instruction which reads,” Pay … or Order” written across their face.
  • The payee’s name is expressly stated.
  • The named person can obtain cash from the bank upon producing a valid ID.
  • The named payee can transfer the cheque to someone else by endorsing it at the back.
  • Order cheques may be open or crossed.

Open cheque

  • Does not have parallel lines on the its face.
  • Can be cashed over the counter.
  • Anyone in possession of it becomes the owner.
  • It is not safe as it can essentially be cashed by anyone.
  • The payee sings at the back of the cheque.
  • Usually used to pay a payee who does not have an account.

Blank Cheque

  • May be an open or crossed cheque.
  • Is signed by the draw without details on the cheque.
  • Is issued to the drawer’s trusted people so that the payee can fill in the details.
  • It is not safe.

Crossed cheques

  • A cheque may have a general or special crossing on its face.

To access more topics go to the Commerce Notes page.

By | 2017-01-17T11:21:04+00:00 July 4th, 2015|Notes, O Level Commerce Notes, Ordinary Level Notes|1 Comment

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He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

One Comment

  1. sithole nompumelelo May 16, 2016 at 7:14 pm - Reply

    Thank you they helping us a lot

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