CNA L&P - Bank Reconciliation: Pseudo Check - Voiding a Pseudo Check

A Pseudo check is a check that is created to document a check was written in a prior accounting system and was included in the startup balances. The reason the Pseudo check is created is to allow the bank reconciliation to balance. The pseudo check does not affect the general ledger.

The Pseudo check will debit and credit the same checking account. The debit and credit wash each other out but, provides an entry on the bank reconciliation. When the check is cashed you will clear the check on the bank reconciliation. If the check is never cashed and you need to void the transaction you DO NOT VOID THE PSEUDO CHECK. You will use a journal entry to reverse the ORIGINAL transaction. 

To void a Pseudo Check (Journal Entry)

The journal entry needs to Debit the Bank Account and Credit the Original Expense Account

Example:

Original Check in a different accounting software (this is already part of your beginning balance)

Debited an Expense Account

Credited Cash

Pseudo Check

Debited Cash

Credited Cash

Journal Entry to void a pseudo check

Debit Cash

Credit Expense Account

 

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