Unpresented cheque

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi all, someone asked me this question and I didn't know the answer to it. You have sent a cheque to a supplier for payment of an invoice, but it was never presented to the bank and now it is the next accounting year. The customer account balances, but obviously your bank account is now out. What would you do to correct the accounts?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    if its over 6 months old the cheque is invalid so the chances are they have recorded it as cashed as im sure they would have chased you about it ?

    if your year end accounts are compelte especially for the sake of 1 chq there isnt anyhin more that can be done.

    explain the situation to your boss and go with his guidance
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    Blank's advice is both correct but a little ambiguous in that Blank states the cheque has been "cashed" but, in effect, it hasn't. It should therefore be an outstanding lodgement on your supplier's bank reconciliation.

    If a supplier's account contains a cheque that has not yet cleared post the banks normal deadline (usually 6 months) then it is prudent to notify the supplier of the situation.

    You cannot write back the cheque because there are money laundering issues concerning this. Keep the cheque outstanding on the bank reconciliation and notify your supplier accordingly with a view to issuing a replacement cheque.

    Best regards
    steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    I have just dealt with a cheque like this. I sent it last July but they (a very large organisation) didn't chase it for months. I contacted them and they said that they had received it, but then 'lost' it. I asked them to write and confirm that they had misplaced it for my records. I was able to 'cancel' the cheque on my system, which freed up the invoice to be issued against a further cheque, leaving a clear audit trail for the old cheque and the new.

    Hope this is helpful
    Jackie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    you mean you guys chase up suppliers to pay them ?

    if only our customers sorry were as good as you guys !
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    Hi Blank,

    No, I work in practice so I speak from the "ethical" angle I'm afraid, though when I worked in industry (one or two years ago) it wasn't uncommon for the purchase ledger to chase uncashed cheques, especially towards the year-end.

    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    Which is exactly why I chased it! I do like things to be tidy....... it's a fault I know :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Unpresented cheque

    Thankyou everyone for your replies, they were all helpful.
    I will pass this info onto the person who asked, not sure why he asked me, as he works for the ICAEW and so there are alot more qualified people that he could ask!!

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