How is a stale cheque accounted for?
A stale cheque is simply a payment recorded in your company file which won’t be presented to the bank. Until an adjustment is made, your cheque account balance will be less than actual. To overcome this difference, the stale cheque will need to be reversed. This will place your bank account balance, and other affected account balances, in a position they would be in if the original payment hadn’t been recorded.