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Minoli Rodrigo
Level 1

Journal entry for remove deposited check in customer outstanding

In my mistake I have been allocated invoice with the wrongly entered cheque. Then I canceled that cheque receipt and again entered cheque receipt. Now I only see in the system correctly entered cheque receipt. I need to remove that in my outstanding report. What is journal entry for that?

 

1 Comment 1
Alex_Sock
Level 1

Journal entry for remove deposited check in customer outstanding

You can create a journal entry to reverse the incorrectly allocated invoice and cancel the original cheque receipt. Here's a simplified version of the journal entry:

 

- Debit: Accounts Receivable (to reverse the invoice)
- Credit: Accounts Payable (to reverse the original cheque receipt)

 

Make sure to consult with your accountant or financial advisor for specific guidance tailored to your situation.

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