Entry for Returned Cheque

by Salam
(Qatar)

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.