Unpresented Cheques.

[Phil White]

Is anyone with a knowledge of accountancy principles able able to help with 
the following?

I have been having problems lately keeping tabs on cheques. I have a separate 
ASSETS account for received cheques awaiting payment into my bank account, 
but now I have the reverse problem:

I have issued a number of cheques. Some have since gone stale, and are, I 
assume, forgotten about. The rest will get presented eventually, but are 
annoying in that tracking them is irritating. I just havn't developed a 
system that I seem to like yet! ;-)

So, a theoretical question. Once I have issued a cheque, where is the money?
Because it hasn't been presented, the funds are still in my account - but 
technically it is no longer MY asset, but theirs. Should I track it as a 
liability, or a debt? And at the end of a financial year, how should I go 
about clearing this item, and re-enter it into my asset tables?

Any thoughts would be welcomed.

Thanks.

Phil.