Question

Which of the following is not true with regards to dishonor of a cheque?

• A. Dishonored cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque
• B. Dishonored cheque is a cheque which is presented for payment and the drawer has sufficient fund in his or her account to cover the cheque
• C. The dishonored cheque is shown in the debit column of the bank statement
• D. The customer is still owing us the money as his or her cheque has been dishonored

Answer 1

The correct option is B

Dishonored cheque is a cheque which is presented for payment and the drawer has sufficient fund in his or her account to cover the cheque

Dishonored cheque is a cheque which is presented for payment and the drawer has insufficient fund in his or her account to cover the cheque.