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Stale Cheques

Statutory Audit 2506 views 2 replies

Please guide me regarding accounting treatment of stale cheque from very begning till end and also guide about treatment of cheque after 3 years of issue in case of full & final payment cheques.

Replies (2)

make reverse payment entry and make the creditor alive.

if the client has re-validated the cheque or issued fresh cheque on current date then it would get uneffected, 

pass the reverse entry for staled cheque. debit the bank a/c and credit the creditor.

If you have not written off the creditor then pass the usual entry and write off the balance amount.


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