Which of the following is not a reason for dishonoring a cheque?
Answer Details
A cheque is a written order from an account holder instructing the bank to pay a specified sum of money to a named recipient. However, there are certain circumstances under which the bank may refuse to honor the cheque.
Special crossing, where the cheque bears two parallel diagonal lines at the top left corner and the words "and company" or "not negotiable" between the lines, is not a reason for dishonoring a cheque. It is rather an instruction to the collecting bank on how to handle the cheque. The other options are reasons why a cheque may be dishonored. Insufficient funds means that the account holder does not have enough money in their account to cover the amount of the cheque. Different amounts in words and figures, uninitiated alteration, and wrong signature are all reasons for dishonoring a cheque due to discrepancies or irregularities in the cheque.