Stop Payment Check Cashed Bookkeeping Question

by Johnny

Stop Payment Check

Stop Payment Check

I put a stop payment on a check paid to my vendor and reissued a new one in Dec 2022.

This new check was cashed in Dec 2022. However, in June 2023, the vendor also cashed the check that I put stop payment on (I didn't place the 2nd stop payment after 6 months).

Now, the vendor agrees to refund this check amount to me. My question is: What Journal entry should I do when I receive the check refund from the vendor? Thanks, Johnny

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Aug 23, 2023
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starstarstarstarstar 		Journal Entry for Check Refund
by: BB

Certainly, Johnny! When you receive the check refund from the vendor, you'll want to reverse the effect of the incorrect cashing of the check that you put a stop payment on. Here's a journal entry you can make:

Debit (increase) your Bank Account: This reflects the increase in your bank balance due to the receipt of the refund.

Credit (decrease) Accounts Payable or the relevant Expense Account: This would reverse the additional payment made to the vendor.

Here's an example:

Debit: Bank Account (for the amount of the check)

Credit: Accounts Payable or Expense Account (for the amount of the check)

This journal entry will correctly represent the transaction in your financial records.

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Checkline Reserve Account

Is a checkline reserve account considered a loan account or a bank account?

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Aug 23, 2023
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starstarstarstarstar 		Checkline Reserve vs. Bank Account
by: Stephanie

A checkline reserve account, also known as a checkline credit account or overdraft protection, is typically considered a loan account rather than a regular bank account. It's a revolving line of credit that a bank extends to a customer to cover overdrafts in their checking account.

When a check is written for more than the amount in the checking account, the checkline reserve kicks in and covers the difference, essentially loaning the money to the account holder. Interest is often charged on the borrowed amount, and the account holder must repay it, much like any other loan.

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Check Not Cashed in Previous Year

How do you reissue a check that was not cashed in a previous year? The previous year has been closed, so the expense was already taken.

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Aug 23, 2023
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starstarstarstarstar 		Accounting For Uncashed Checks
by: BB

Reissuing a check that was not cashed in a previous year and after the previous year's accounts have been closed can be done through the following steps:

Void the Original Check: Make an entry in your accounting system to void the original check. This ensures that it cannot be cashed if found later.

Reissue a New Check: Write a new check for the amount in question, using the current date.

Record the Reissued Check: You may want to create a journal entry to record the reissued check. This should debit the bank account and credit a liability account like "outstanding checks" or "accounts payable."

Communicate with the Payee: Inform the payee about the reissued check and ensure they understand the previous check is void.

Document the Process: Keep clear records of the process, including why the check was reissued and the actions taken.

Since the expense was already recognized in the previous year, reissuing the check does not affect your income or expense accounts; rather, it will only affect the cash or bank account and possibly a liability account.

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My Check Bounced

How do I reverse a check in quickbooks that I wrote to a vendor and bounced

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Jun 07, 2010
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starstarstarstarstar 		Bounced Cheque
by: Bookkeeping Essentials

Go to your QuickBooks help menu and type in "bounced". You will get detailed instructions on how to handle the bounced cheque.

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Pass Through Check

One of the partners wants to make a charitable contribution to an organization through the company. He gave me a check to deposit and then I will write a check to the organization. How do I book this?

It's not a loan or a repayment of any kind. He wants the company to book the payment to the organization as a charitable contribution, but I don't know how to book the receipt of monies.

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Aug 23, 2023
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starstarstarstarstar 		Accounting for Donation Receipts
by: BB

In this situation, one of the partners wants to make a charitable contribution through the company. Since it is not a loan or repayment, the accounting treatment would involve recognizing both the receipt of the money from the partner and the payment to the charitable organization.

Here's how you might book this transaction:

Receipt of Funds from Partner:

Debit: Bank Account (for the amount received from the partner)

Credit: Owner's Equity or Partner's Capital Account (reflecting the partner's contribution to the company)

Payment to Charitable Organization:

Debit: Charitable Contributions Expense (for the amount paid to the charity)

Credit: Bank Account (for the amount paid to the charity)

This treatment ensures that the partner's contribution increases the equity of the company and is recorded as a charitable expense on the company's books.

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Replacement Check For An Employee

by Renee
(MA)

I need to replace an employee check from March 3, 2010 - do I date the replacement check with the same date since it's entered into the Paychex system and included in 2010's tax information or do I date it with today's date?

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Voided Checks

Checks written and expensed in 2006 have never cleared the bank. What is the proper way to record this?

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