banner_ad

Cheques issued but not presented for payment

Others 16631 views 7 replies

What shall I do if a cheque issued not presented for payment within 6 months? What about that Liability? Am I still liable to pay even after the 6 months period?

Replies (7)

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

Originally posted by : Faiz Ahmed
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.

i agree with ratan


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details