3. Voided Checks Should Be Recorded In The Journal.

Jumat, 23 September 2022

3. Voided Checks Should Be Recorded In The Journal.

NEWS VANESSA September 23, 2022 Comment

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A check drawn by a company for 270 in payment of a liability was recorded in the journal as 720 what entry is required in the company? Reduction in liability for 550 should be recorded in journal. A voided check is a check that has been cancelled. Once it has been appropriately voided, a check cannot be used.

For example, there was a mistake in filling out the check, or the check was blank or only partially filled in, or the check was issued in error, or the check was submitted by an. The company use check to settle the accounts payable with the supplier. It is also used to pay for the purchase or expense without going through the accounts payable. After voiding the check, the company should keep the original check in a safe place such as a vault. The physical check should be stamped “voided” to prevent reuse or fraud. An outstanding check is one that has been issued but not yet reported on a bank statement. When petty cash is replenished, petty cash is debited and cash is credited. Voided checks should be recorded in the journal. The source document for an electronic funds transfer is a memorandum.