should it be reversed?

Hi.. Anvar

Entry need not be reversed as we follow the accrual basis. if it is expense of the year 2008-09 it has to be taken in that period only.

Reverse the bank entry and credit expenses payable A/c.

Cheque seems to be issued on 1.1.09. It become a stale cheque by 30.6.09. Party need to be communicated with and asked for the proceeding as to why cheque was not deposited. as for ur own books, the expense shall not be deemed to be incurred and the entry need to be reversed.............