PSA L&P - Bank Reconciliation: How to fix a check that was cashed early

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.

  For example:

  • 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:

  1. Create a Reversing Journal Entry
  2. Change the date of the check

 1. Create a reversing Journal Entry (JE):

11/30 JE:

*Debit (Choose an account)   $100

    Credit  Bank acct                          $100

 

12/1 Reversing JE

Debit Bank acct                     $100

    *Credit                                          $100

      *(the same account you used for the debit in the 11/30 JE)

 

2. Change the date of the check

 

 

 

 

Have more questions? Submit a request

Comments

0 comments

Please sign in to leave a comment.