Cheques issued but not presented for payment

As per current negotiable instruments practices, a cheque is valid for only 6 months. After 6 months , if its not presented you have to reverse the entry which you have passed earlier. The entry passed by you earlier was:-

Creditor A/c   Dr.

     To Bank A/c

Now when cheque is not presented your liability arises again. Now you have to reverse back the entry in order to give life to creditor A/c and raise a fresh liability.....

Hope you understood.

Agreed.

A Cheque is valid upto a period of 6 months only. You cnt deny your liability after the said period of 6 months if still party not presented the cheque to the bank.

You hv to reversed the entry as

Bank A/c    Dr

to creditors A/c

(Being Amt reversed due to cheque expire)

regards,

ratan

nice clarifications..Thanks

cheque has become time barred but liablity still exists reverse the original entry passed and account for the fresh payment issued

i agree with ratan