Your client recorded a check in the prior fiscal year that d

Your client recorded a check in the prior fiscal year that did not clear and was re-issued in the current fiscal year. They are accrual based taxpayers and the return for the prior fiscal year has been completed. Which of the following is the best method to repair this issue?

Solution

To repair this issue no journal entry would be required. The correct way to repair the issue will be to - \"Create a deposit to the same expense account as the original check but dated in the current period, then reconcile them against each other.\"

Go to banking menu and select the option ‘make deposit’. The deposit will have to be of the same date as the replacement check.