Cheque issued but not presented

When the cheque has been issued first of all we have to pass the payment entry . After 90 days if the cheque has not been presented to payment we have to reverse the entry

Hi,

Pass the following Entries:

1) Payment to XYZ Company

Dr.XYZ Company ------------ 1111

Cr. AB Bank ------------- 1111

2) Reverse Entry

Dr. AB Bank ----------- 1111

Cr. XYZ Company ------ 1111

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