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Hi there,
1. what does this mean exactly?
“Examine any old unpresented cheques to assess if they need to be written back into the purchase ledger as they are no longer valid to be presented”2. what does written back into purchase ledger mean? as far as im aware, a cash purchase is debit purchases and credit cash. a credit purchase is debit purchases credit payables.
so taking it to purchase ledger means it is considering the unpresented cheque as a cash purchase?Please advice,
thanks in advance
This is what I was referring to in yesterday’s post.
Write out a cheque:
Dr Trade payables
Cr CashBut what if cheques haven’t been sent to the supplier? (e.g. “in the post” actually means stuffed in a drawer). Then the supplier hasn’t been paid – cash should not have been reduced.
So to “write back” unpresented cheques means:
Dr Cash
Cr Trade payables
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