Best way to handle checks issued but never cashed?

[Laura Lincoln]

There are a couple of ways that you can deal with these checks.

IF you want to follow the rules then you need to check with your state
eschew rules. Most states require that you keep the checks for a period of
time and then turn the funds over to the state so that they can someday find
the rightful owner.

Having said that, if you wish to ignore that suggestion (most companies do)
then post a journal entry that basically is the reverse of the check that
was written. Debit cash & credit the original expense account. Use today's
date on the transaction since you don't want to change prior year
financials. When you do the bank rec, clear both transactions and they will
disappear from your sight in the future.

An alternative method would be if you are a cash basis company then you
could just delete those checks. That would be the easiest way to deal with
them but you lose all trace of those checks.

On Mon, May 11, 2009 at 7:18 AM, Marc Evans <marc at osmium.mv.net> wrote:

> Hello,
>
> I have been using gnucash for several years. During that time I have
> issued several (about 8) checks that the people to which they were
> issued have never cashed them. These are usually more than 2 years old,
> and hence I do not expect that they ever will be cashed. They are small,
> adding up to maybe $200 in total. The question therefore is, what is the
> best way to handle these in gnucash? For example, should I create a
> special account and transfer them to this special account?
>
> Thanks in advance for any advice.
>
> - Marc
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