Bank reconciliation doubt

Bhavani Shankar (Employed) (135 Points)

26 June 2012  

A person has paid amount of rs 10000 thru cheque to a party in yr 10-11.But till the end of that yr party did not deposit the cheque and informed the person that he does not want the amount. What is the correct accounting treatment the person must do in his books if he had already debited in his books the bank account... Can he show that 10000 as income in p& l of current yr...

Thanks in advance