How to record a returned cheque in QuickBooks?

Software: Intuit QuickBooks Premier 2015 accounting software

Unlike the Accounts Receivable module, Accounts Payable module does not have a “Record Bounced Cheque” feature. To record a returned cheque, which has issued to a vendor, a General Journal is needed.

You may consider using a Void Cheque feature, but if the cheque is returned at a different financial period, then General Journal is still a better choice; so the bank reconciliation will not be affected.

Debit the Bank account and credit the Accounts Payable account to reverse the cheque payment.

If you had recorded the cheque payment via a Write Cheque feature instead of a Pay Bills, then the double entry of the journal should be debiting the Bank account and credit the respective expenses account.

Comments are closed.