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

    Dec 15, 2008, 06:57 AM
    Old outstanding checks
    There are 4 standing checks for a business checking account with no dates. All I have are who they were made out to and the amount. I was told when I was hired that the companies the checks were made out to are no longer in business and to include them on the checking account reconciliation. Now my boss tells me to take them off the books. The bank has no record of them. How do I correctly debit & credit?
    DFK's Avatar
    DFK Posts: 14, Reputation: 1
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    #2

    Dec 15, 2008, 10:17 AM

    Dr. Bank
    Cr. Expense Account they were originally charged to, or if that can not be found misc. income.
    Riffy Hassan's Avatar
    Riffy Hassan Posts: 2, Reputation: 1
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    #3

    Dec 15, 2008, 01:19 PM

    No, wrong answer... according to accounting laws... we owe this money to Government. If there are checks that a company issued and no one cashed them then that money is Government's property. This is all I know... I am not familiar with the procedure but I know the law.
    DFK's Avatar
    DFK Posts: 14, Reputation: 1
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    #4

    Dec 15, 2008, 02:23 PM

    According to what accounting laws? It certainly does not fall under GAAP or IFSR
    If the company no longer exists there is no one to pay.
    If the company went bankrupt they would have been contacted by the bankruptcy agent for payment.
    Also if the cheques are older than 6 months they are technically stale dated and would have to be reissued anyway (meaning they have to come off the books anyways).
    If there is no one to reissue the cheque to, then there is no one to pay and the funds are returned to the company.
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