12-05-2009, 05:22 PM
Dear
The cheque issued by you, unless presented to bank for clearance and debited to your account by bank, is not and cannot be recorded by bank in his records ie in your bank statement.
So, if such a cheque is cancelled by you (of course before presentation to bank), it will have no effect/treatment in bank statement. That's why it appears in reconciliation statement as a reconciling item.
You will simply reverse the accounting etry in your books which you passed while issuing the cheque.
Upon reversal of such entry the bank account balance in your books will increase and equalize the balance appearing in bank statement (assuminh no other reconciling item). Therefore, such cheque will also cease to appear in reconciliation statement.
Regards,
Kamran.
The cheque issued by you, unless presented to bank for clearance and debited to your account by bank, is not and cannot be recorded by bank in his records ie in your bank statement.
So, if such a cheque is cancelled by you (of course before presentation to bank), it will have no effect/treatment in bank statement. That's why it appears in reconciliation statement as a reconciling item.
You will simply reverse the accounting etry in your books which you passed while issuing the cheque.
Upon reversal of such entry the bank account balance in your books will increase and equalize the balance appearing in bank statement (assuminh no other reconciling item). Therefore, such cheque will also cease to appear in reconciliation statement.
Regards,
Kamran.
