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Stale Cheque entry in the books & when it reissued again
then Entry in the books.?
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Answer Posted / bindu
Stale cheque is a cheque which has not been presented for
payment within six months of being written.
For example when organisation purchased 100/- worth goods
and issued cheque. but not presented by creditor with in
six months to bank. so that bank will not honour the cheque
and mark as out dated. Entries as follows:
cash purchase : purchase DR to bank
cheque returned : Bank DR to creditor
Cheque issued again: creditor DR to bank
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