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  #1  
Old 09-23-2008, 01:37 PM
sugaryling sugaryling is offline
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How do I record bounced checks when I reconcile the bank stmt?

I have a handfull of bounced checks. Now that I'm doing the monthly bank rec, what do I do to show that it bounced?
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  #2  
Old 09-23-2008, 02:43 PM
suzannemead suzannemead is offline
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Are they bounced checks you received or wrote?
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  #3  
Old 09-23-2008, 03:44 PM
sugaryling sugaryling is offline
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bounced checks I wrote.
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  #4  
Old 09-23-2008, 05:26 PM
suzannemead suzannemead is offline
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First, you should follow what the bank does. If they deduct the check then return the funds you should also do that to make reconciliation easier. Next - if the check did NOT involve accounts payable you can enter the bounced check as a deposit, since the funds did not actually leave the account and post it to whatever expense account it was for. If it involved a bill payment through accounts payable I suggest the following. Create an item called Returned Company Checks. Have that item tie in to the checking account. Then enter a bill for the amount of the check and use the original vendor since you still owe that vendor. Use the Retuned Co. Check item. This will put the amount back into the vendor's account and enter the amount as a deposit into the checking account. When you have the funds go to Pay Bills and process another payment. Don't forget the bank charges for the bad checks. You can enter those in the check register or on the Write Check form and post to Bank Charges expense account.
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  #5  
Old 09-24-2008, 09:59 AM
sugaryling sugaryling is offline
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In my case, it is the first scenario. It does not involve A/P.
1. I will enter all the bounced checks (listed on the bank stmt) as a deposit. I will check if off when doing the bank rec in QB

2.In the bank rec, how should I treat the original check that was issued, shown as cleared (1st time), then shown as cleared (2nd time) on the bank stmt? Should I just check off the deposit (bounced checks) and don't check off the original issued check and check it off when it clears for the second time?
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  #6  
Old 09-24-2008, 11:12 AM
suzannemead suzannemead is offline
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Check off the first checks and the deposits that equal the checks. The amounts are the same so the effect on your balance is zero. If the replacement check has cleared, check that off as you normally would any check.
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  #7  
Old 09-24-2008, 11:28 AM
sugaryling sugaryling is offline
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I understand so far. However, the replacement check is the same check that bounced. It was redeposited and it clear the second time around.

Also, when I record the deposit, what should I put in the "Received from" box? The payee?

Thanks!!! You've been every helpful so far.
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  #8  
Old 09-24-2008, 11:58 AM
suzannemead suzannemead is offline
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Yes, the replacement check is the same check. But your bank statement shows it was first issued and then returned. Those two things equal each other so there is no effect on the balance. That's why you check both the charge & the return since the check did not diminish your bank balance.The second time the check went through so you reconcile it the same as any other check you write.
You can use the vendor name or the bank name. You actually don't have to use a name at all as long as you make a memo what the transaction represents. All you are trying to do is create an entry on the books to balance with the check that bounced.
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  #9  
Old 09-24-2008, 12:16 PM
sugaryling sugaryling is offline
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I think I asked the wrong question.

"Yes, the replacement check is the same check. But your bank statement shows it was first issued and then returned. Those two things equal each other so there is no effect on the balance. That's why you check both the charge & the return since the check did not diminish your bank balance."

I understand the above.

"The second time the check went through so you reconcile it the same as any other check you write."

This is where I'm confused. The second time the check went through, I have nothing to check off since I already checked it off the first time. Correct? Do I have to write a second check with the same check number so I have something to clear while doing the bank rec?

Last edited by sugaryling; 09-24-2008 at 12:26 PM.
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  #10  
Old 09-24-2008, 01:06 PM
suzannemead suzannemead is offline
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You checked it off the first time as well as a deposit that equaled the check. The effect is zero. The second time it went through just like any other check that doesn't bounce. Yes, write a second check with the same number so you have the check to reconcile.
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  #11  
Old 09-24-2008, 01:17 PM
sugaryling sugaryling is offline
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That answers my question. Thank you so much!!
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  #12  
Old 11-02-2009, 09:04 AM
Judy Mac Judy Mac is offline
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Question Reurned Checks

Hello Everyone,

I'm new at this and need a little help.

1. How do I ask a new question?

2. I want to post a returned check in my check register. My question is when I set up the "Returned Check" account in the chart of accounts, where does it fit? ie: asset, liability, bank account, etc.

Sorry I seem so dumb?
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  #13  
Old 11-03-2009, 03:28 AM
Joe Williams Joe Williams is offline
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To post a new question, selest the forum and clisk the "New Trhed" button.
To post a returned check, just enter a deposit ising the same accounts the original check used, then in reconcile check both.
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  #14  
Old 06-24-2010, 07:49 AM
DirtyRony DirtyRony is offline
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Quote:
Originally Posted by suzannemead View Post
First, you should follow what the bank does. If they deduct the check then return the funds you should also do that to make reconciliation easier. Next - if the check did NOT involve accounts payable you can enter the bounced check as a deposit, since the funds did not actually leave the account and post it to whatever expense account it was for. If it involved a bill payment through accounts payable I suggest the following. Create an item called Returned Company Checks. Have that item tie in to the checking account. Then enter a bill for the amount of the check and use the original vendor since you still owe that vendor. Use the Retuned Co. Check item. This will put the amount back into the vendor's account and enter the amount as a deposit into the checking account. When you have the funds go to Pay Bills and process another payment. Don't forget the bank charges for the bad checks. You can enter those in the check register or on the Write Check form and post to Bank Charges expense account.
Following what the bank does is exactly what I want to achieve. But I'd like to be able to have the suppliers invoices reposted like in this procedure http://community.intuit.com/posts/bo...ot-be-replaced.

Any ideas how I could get that done (maybe in a different way) on QB 2006?

Thanks for your help.
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  #15  
Old 07-12-2010, 11:18 AM
jamel11234 jamel11234 is offline
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question

Good idea--- will try this myself

Last edited by jamel11234; 07-12-2010 at 11:20 AM.
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