Entry for Returned Cheque

by Salam
(Qatar)

Qatar street sign

Qatar street sign

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?

A:
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.

Comments for Entry for Returned Cheque

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ISSUED CHEQUE
by: Anonymous

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

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