Returned Unpaid Cheque

I have a cheque that has been returned by the bank from a customer, how do I deal with this?

If you are going to represent it then do nothing, else reverse the entry you did while recording cheque receipt

The only way I have found of doing this so far is deleting the payment. This doesn’t seem to be a good idea? Unless this is what you mean by reversing the entry?

yes if you untag or delete the receipt entry, it will reinstate invoice to current debtors

I agree with Lara. The returned cheque already appears on the bank statement. The old order would have to be cancelled and a new order placed. In cancelling the order the payee would have to be refunded but no money has changed hands. Or could it be tagged as a bad debt?
I’d be interested to see your comments

that would be over kill, just wait for cheque to be cleared second time. Do nothing

This topic was automatically closed after 7 days. New replies are no longer allowed.