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Xero/Reckon/MYOB bookkeeping - how to treat dishonoured cheques in bank reconciliation – how to record in Xero / MYOB / Reckon / Quickbooks
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Published on Thursday, 26 October 2017 16:37
When your client (or nemesis has paid by a cheque and it has bounced… dishonoured by the bank – here’s how to treat dishonoured cheques in the bank reconciliation and how to record in MYOB / Reckon / Quickbooks -
Usually on the bank statement there will be a Credit deposit and Debit when the cheque is di-honoured and reversed out, so they will cancel each other out and are NOT worth entering at all = easiest solution!
Re-invoice the client for the bank fees you have been charged, using a service type invoice. Use the N-t or FRE tax code. Send it with a friendly note that the cheque bounced and these are the fees you have been charged!
When the cheque is presented (or you receive another cheque) allocate it to the correct invoice, or record the deposit if using cash entry accounting.
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