Bank reconciliation statement - Stale cheque

This query is : Resolved

Ganesha S (Querist)
Follow

10 June 2009 Please clarify about stale cheque (i.e., one which exceeding six months for clearing) what is the reverse entry.
Please reply

Thanks,

Regards,
Ganesh.S

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
Follow

10 June 2009 DEBTORS a/C DR...
TO BANK

Ganesha S

Ganesha S (Querist)
Follow

10 June 2009 Please clarify how it is credit...... because as a Company issues cheque made entry as
concerned expenses a/c........ dr
To Bank a/c
For this want to pass reversed journal entry......... (stale cheque)

Upgrade to CAclubindia Pro. Subscribe Now!

Rajesh

Rajesh (Expert)
Follow

10 June 2009 I favor the expert

you have not paid the amount to party, you have given a cheque only, which has been stale its mean no amount paid to party therefore you have to reverse the entry as expert suggested.

regards