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WAEC Commerce 1992 Question 42

Question 42

Banking

Which of the following is not a reason for dishonouring a cheque?

  1. A.Irregular signature
  2. B.Signed alteration on the cheque
  3. C.Insufficient fund in drawer's account
  4. D.Drawer stopped payment on time
  5. E.Amount in words differs from that written in figures.
Show the answer and explanation

Answer: B (Signed alteration on the cheque)

Explanation

An alteration signed by the drawer is valid, so the bank can still pay the cheque.