Where do we record the cancelation of a check?
submitted by Ty Malone

roomreading

Check cancellation is recorded by voiding the original check in the check register or ledger. Then you need to make a journal entry to debit the bank account and credit the cash or bank account.

Also, aside from the accounting system you use, make sure you mark that check as 'Void' or 'Canceled' for audit purposes. It's good when audits happen.

steve

Start by marking the physical check as canceled or voided. Then, in your accounting software, make an adjusting entry to remove the amount from the bank account, usually by debiting the bank account and crediting cash.

Frebulous

To void a check, you usually make a journal entry that cancels out the original payment. You'd debit the bank account because you're restoring the cash, and credit the account that was originally debited, like an expense or payable account, so the books stay balanced.

Jesper

When you void a check, you basically undo the money going out. So, you would add the money back to the bank account (debit) and take away the expense or bill (credit) that was originally recorded.

kelly

For check voiding you debit cash to remove the original payment. Credit the accounts payable or the expense account that was originally charged. Essentially, you're reversing the initial transaction to reflect that the check is no longer valid.