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    jaxl's Avatar
    jaxl Posts: 1, Reputation: 1
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    #1

    Sep 13, 2007, 04:13 AM
    Stale Dated Checks
    Our bank reconciliation shows unclaimed outstanding checks from prior years. I want to clear these stale dated checks. How do I properly journalize stale dated checks? Some people say to debit cash and credit a special liability since they believe it's still a liability. Then after a few more years, it would be okay to debit liability and credit income.

    Is this true?

    Thanks!
    lasbell's Avatar
    lasbell Posts: 8, Reputation: 0
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    #2

    Sep 28, 2007, 10:42 AM
    Quote Originally Posted by jaxl
    Our bank reconciliation shows unclaimed outstanding checks from prior years. I want to clear these stale dated checks. How do I properly journalize stale dated checks? Some people say to debit cash and credit a special liability since they believe it's still a liability. Then after a few more years, it would be okay to debit liability and credit income.

    Is this true??

    Thanks!
    Generally these checks are moved to a liability account (Unpresented Checks) after 180 days. Outstanding checks (here in Texas) will be presented to the comptrollers office after 3 years. Debit your cash account and credit this liability account. Unless your check states void after so many days the checks are still good and should not be considered income ever.
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