I work in Accounts Payable. We have received a check (more than $1,000.00) and deposited it in our bank, but we were not the Payee on the check (bank did not catch it also). We have sent the same amount back to them, but now they will not deposit our check. I have called them several times, and they said they will deposit it, but it has been a year, and the amount is still sitting in my bank. ( I did tell them that I will reissue a new check).
I was wondering is there any law, regulation in California about how long is corporation’s liability to keep this amount in the books as Liability?

Hello text:

I don't know much about bookkeeping, however once you've written a check, and posted it, the amount comes OFF your books as a liability. The only thing you have to reconcile is your bank statement every month.

I don't know why you'd want to reissue a check unless they never got the one you sent. But, if they want to hold it for years without depositing it, that's on them.

excon

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Originally Posted by text1

I work in Accounts Payable. We have received a check (more than $1,000.00) and deposited it in our bank, but we were not the Payee on the check (bank did not catch it also). We have sent the exact same amount back to them, but now they will not deposit our check. I have called them several times, and they said they will deposit it, but it has been a year, and the amount is still sitting in my bank. ( I did tell them that I will reissue a new check).
I was wondering is there any law, regulation in California about how long is corporation’s liability to keep this amount in the books as Liability?

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Don't you checks become void after a certain period? My business checks become "dead" after 90 days.

The issue here is in that the person will owe the money, So she needs to get them to either sign a letter stating they are not going to accept payment and will not collect this money, or she needs to go to the bank, show the bank the error and have the bank do a correction from their end

I did some research and found out about "The State of California's Unclaimed Property Law". We have 3 years before we have to report this to State.