Stale Cheque

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9 Points Posted on 10 June 2020

A cheque was issued in September 2019 and the company's Accounting year is 31st December. The cheque which was issued in September 2019 has not been presented till now. We are in June 2020. The company's annual audit is ongoing. Is the cheque a stale cheque? Is yes what will be the journal entries?

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On 10 June 2020 at 18:21 Report
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Quick Summary
A cheque issued in September 2019, remaining unpresented by June 2020, is considered stale, especially as the company's accounting year ends on December 31st. During an ongoing annual audit, it's confirmed to be stale. The standard accounting treatment involves reversing the original entry.

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Student
1321 Points Posted on 10 June 2020
It is definitely a stale cheque.
1 Reply
On 10 June 2020 at 21:03
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Accounts Manager
795 Points Posted on 17 June 2020

Just reverse the Original entry

1 Reply
On 17 June 2020 at 11:18

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