Reversing Unpresented Cheques

Deleting an unpresented cheque is not an option if it has affected the GST from a previous financial year or BAS period

The correct procedure is to reverse the transaction via a Cashbook transaction dated today or in the current BAS period

The screen-shot below shows an unpresented cheque as it appear in the Cashbook Reconciliation:

Step 1: Make Note of Cheque Details

To find details of a cheque from a previous financial year:

File
Change Accounting Year
Click the relevant financial year
Select
Click the Cashbook toolbar icon
Make sure the correct bank account is selected
Click Filter

viii. Type in filter information like date and description to make searching for the transaction easy
ix. OK
x. Click on the relevant transaction to highlight it
xi. Click Edit to view the transaction details
xii. Make note of all important transaction details - date, cheque number, payee, amount and account code
xiii. Cancel/Exit

Step 2: Reverse the Transaction

File
Change Accounting Year menu option
Click Current Year to highlight
Select
Click Cashbook toolbar icon
Add
Enter a transaction reversing the original cheque transaction:

Date of transaction with today's date or within the current BAS period
Transaction Type will be 'Receipt'
The amount will be the same
Account Code will be the same
Enter the dissection Gross Amount as a negative
Enter a Note with adequate information for auditing purposes

viii. OK

Step 3: Reconciling

Now the reconciliation for the current period can be completed

By ticking the stale cheque and the reversing deposit transaction, the bank balance will be corrected

Article ID 528