What do you do with old uncleared transactions?
Mike or Penny Novack
stepbystepfarm at mtdata.com
Thu May 14 09:04:17 EDT 2015
Businesses may have additional requirements to fulfill. In Illinois,
USA, after several years unclaimed property must be turned over to the
state. Presumably that would include when a check is lost and the payee
does not try to get a replacement. Your municipality may vary. David C
Another example of a different situation requiring specific handling.
Really something to take up with your accountant how should be handled
but my best guess would be to create a liability account for excheat*.
Since this is going by years, under this account children for each year
(in which there were unclaimed amounts).
You would then put in a transaction for each amount correcting the bank
balance (debit checking; credit unclaimed in this year; bank account
balance now matches what the bank statement has) and best to make the
description refer to the original transaction because you don't yet know
whether the liability will be cleared by eventual payment to the state
or the original payee.
Each year, part of year end adjustments, payment to the state clearing
the account of "unclaimed" whose time is up. It's a liability because
while the money is in your bank account it isn't really yours. Belongs
to the original payee or the state.
* sp? But that's the term for the "sovereign" collecting unclaimed property
There is no possibility of social justice on a dead planet except the equality of the grave.
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