Definition of Voided Check on Bank Reconciliation
If a check was voided in the current month but was written in the previous month and appeared on the previous month's list of outstanding checks, you should write a journal entry to do the following:
- Debit Cash
- Credit the account(s) that was debited when the check was originally recorded
This entry increases the general ledger account Cash (that contains the company's checking account). It also eliminates the debit that had been entered at the time the check was recorded.
Accounting software may allow you to go into a previous period's (as well as the current period's) activity and remove a voided check or change the amount to zero. This will also increase the balance in the Cash account and will remove the debit amount from the account that was originally debited.
