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How do you reconcile when starting from the cash book balance instead of the statement? What is the correct order: update the cash book first or reconcile the statement first? How does electronic/online banking change the reconciliation process? How do you treat interest received and charged in the reconciliation? How does the bank reconciliation interact with the financial statements? How does the timing of banking affect month-end reconciliation? How do you handle a customer's standing order paid into the wrong period? How would a fraudulent unrecorded withdrawal be detected in reconciliation?
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Bookkeeping › Bank Reconciliation

How do you deal with stale or cancelled cheques in a reconciliation?

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Answer

A stale cheque (typically unpresented for over six months) will not be honoured by the bank. It should be written back: debit the bank (cash book) to reinstate the funds and credit the original account (e.g., the supplier/payable) since the liability revives. It's then removed from the list of unpresented cheques.
Stale cheque 250 written back:
  Dr Bank (cash book) 250
      Cr Payables (supplier) 250
Real-world example A cheque outstanding for eight months is written back, restoring the cash book balance and the creditor.

Common follow-ups: When is a cheque considered stale? | What entry reinstates it?

Cash Book & Petty Cash Correcting Errors Bank Reconciliation
All 26 Bank Reconciliation questions