What accounting entry should be passed for cheque issued but not presented in bank within 90 days?
vamsi krishna
(article student)
(280 Points)
Replied 12 December 2017
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
srinivas
(Finance Manager)
(239 Points)
Replied 18 December 2017
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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