Entry for Returned Cheque
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Q: Dear Sir,
Can you please explain what will be the journal entry when a cheque we issued returned by bank and when they reproduce it?
The journal entry would be the exact opposite of the entry the bookkeeper made when issuing the cheque in the first place.
For example, if the original entry was:Dr Asset
...then the entry when the cheque was returned will be:Dr Bank
When you re-issue the cheque you simply redo the original journal entry.