What do you do with old uncleared transactions?

[Mike or Penny Novack]

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.

Michael

* 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.