Processing a dishonoured cheque

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  • Updated 5 years ago
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How do I process the dishonouring of a cheque that was drawn to pay multiple invoices from a supplier?  Do I just void the cheque, or is there some "dishonour" transaction that allows me to do the payment reversal on an identified date, or do I need to do a journal?

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Peter Bellis

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Posted 6 years ago

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Sally McIntosh, Accredited Consultant, Accredited Partner

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Hi Peter, are you referring to a dishonoured cheque from a customer or a dishonoured cheque made to a supplier? Just to clarify. Feel free to email me at sally@samsolutions.com.au if you want to take this offline. I can also do a remote login session with you if you like to go through it. Kind regards, Sally
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Douglas

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Hi, I might experiencing the same problem. It's actually unpresented cheque from many years ago and I would like to write off by this year. Do you think I can simply delete the cheque or void the cheque? I just want to do the adjustment by this year and it won't affect previous year figures. 

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Sally McIntosh, Accredited Consultant, Accredited Partner

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Hi Douglas,

You will need to do a general journal entry to reverse the transaction as of a current date.

More than likely there will be GST (???) on the transaction which needs to be reversed.

If you void or delete it will affect previous years and have no affect on this year.

Kind regards,

Sally McIntosh

sally@samsolutions.com.au

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Mel

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Hello 

If I have a dishonoured cheque from my customer how do I process it please.

thanks
Mel 
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Sally McIntosh, Accredited Consultant, Accredited Partner

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Hi Mel,

The best way to do this is to receive the payment as per usual > then write a cheque and allocate the account to your Accounts Receivable account at the bottom split then allocate that customer to that line > this will then put the balance owing back to their account.

Feel free to contact me at sally@samsolutions.com.au if you need.

Kind regards,

Sally McIntosh

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Mel

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Thank you Sally :) I ended up doing a general journal. Much appreciated. Have a great day :)