QS Study

Cheques issued but not yet presented for payment

The cheques issued but not debited customers account may be because the cheque is

  • not cashed till date.
  • not presented till date.
  • presented but dishonoured for some reasons or other.
  • lost by the party to whom the cheque was issued.
  • cashed out of I account but wrongly debited to No.II account of the same customer.

In all of the above cases, the entry in the cash book is made immediately on the issue of cheque but naturally, the entry will be made by the bank only when the cheque is presented for payment. Thus there will be a gap of some days between the entry for the issue of the cheque in the cash book and the entry for payment made in the pass book.

For example, ABC Company Limited issued a cheque in favour of Mr.XYZ on May 01, 2000 for a sum of $.2,000. The cheque is presented for payment at the bank on June 01, 2000. In case, the bank sends a statement of the account up to March 30, 2000, there will be a dissimilarity of $ 2,000 between the balance as shown by the cash book and the balance as shown by the passbook.