How to fix a check that was cashed early
If the check is cashed during the period the bank reconciliation covers, it won't affect your reconciliation.
If the recorded check date and the date cleared by the bank are in different months, you won't be able to reconcile the bank statement until you fix this problem.
- You wrote a check - the check is dated 12/1 for $100
- The check was actually cashed 11/30 for $100
- The 11/30 bank statement shows a withdrawal for the $100 check.
- The 11/30 bank rec does not show a withdrawal for $100
There are two methods you could use to correct the problem:
- Create a Reversing Journal Entry
- Change the date of the check
1. Create a reversing Journal Entry (JE):
*Debit (Choose an account) $100
Credit Bank acct $100
12/1 Reversing JE
Debit Bank acct $100
*(the same account you used for the debit in the 11/30 JE)