Entry for Returned Cheque

by Salam

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Q: Dear Sir,

Can you please explain what will be the journal entry when a cheque we issued is returned by the 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
Cr Bank

...then the entry when the cheque was returned will be:
Dr Bank
Cr Asset

When you re-issue the cheque you simply redo the original journal entry.

Hope that makes sense! Good luck!

Michael Celender

Comments for Entry for Returned Cheque

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2 Accounts
by: Editor

The 2 accounts do not have to be assets and bank. It will always be Bank as the one account but the other account could be an asset account or an expense account - it depends what the cheque was used for.

by: Anonymous

Why are the two accounts for a cheque issued by any business are assets and bank?

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