Definition of Outstanding Checks
Outstanding checks are checks written by the company, recorded in the company accounts, but not yet appearing on the bank account as paid.
Example of Outstanding Checks
There is no need for the company to write a journal entry, as the checks were recorded in the company's general ledger account when the checks were written.
However, if a company voids one of its outstanding checks, the company will need to make an entry in its general ledger. The entry will debit Cash in order to increase the account balance. The credit portion of the entry will likely be to the account that was originally debited when the check was issued. The check that was voided is also removed from the list of outstanding checks.