Book Keeping Task/Stale cheques

From PCSAR

When reconciling accounts, you may find cheques that were not cashed and are now stale dated. Please look up what they were for and verify this is in fact the case, and not for instance a cheque that was never issued or a duplicate entry for a payment that was not paid for another cheque.

For each stale dated cheque create a deposit for the same amount (or journal entry, similar to journal entry 14), where a pseudo deposit to the chequing account is made from the account "Cheques Not Cashed To Be Reissued". The date of the pseudo deposit should be today's date.

When you do the reconciliation the next time, clear both the cheque and the pseudo deposit.

Please contact the person involved and ask if they want the cheque to be reissued.

If they do want the cheque reissued, do so, offsetting from "Cheques Not Cashed To Be Reissued".

If they don't want the cheque reissued, ask if they want a charitable receipt for the amount. If that's the case, the CRA requires that we reissue the cheque, they cash it and write a cheque back to us.

If they don't want a charitable receipt, or if they can't be reached and there's no prospect that they will ever come back to us asking for the payment (say a company has gone out of business), then enter a transaction for a donation offsetting from "Cheques Not Cashed To Be Reissued".