ACCOUNTING FOR CANCELLED CHECKS

 Checks may be cancelled when they become stale, voided or spoiled. The depository bank
considers a check stale, if it has been outstanding for over six months from date or issue or as
prescribed.
 A stale, voided or spoiled check shall be marked cancelled on its face and reported as follows:
 Voided, spoiled or unclaimed stale checks with the cashier shall be reported as cancelled in
the List of Unreleased Checks that will be attached to the RCI.
 New Checks may be issued for the replacement of stale/spooled checks in the hands of the
payees or holders in due course, upon submission of the stale/spoiled checks to the
Accounting Division/unit. A certified copy of the previously paid DVs shall be attached to
the request for replacement. A JEV shall be prepared to take up the cancellation. The
replacement check shall be reported in the RCI.

MDS check comes from Budget. Any unused budget are reverted back. So MDS will be zero at the end
year, but the commercial checks are not reverted back for the reason na hindi siya galling sa budget.

For example, ayan nangutang ka, eto entry mo.

AP 100k
Cash MDS Regular 100k
Hindi pa naencash, na stale na. Ibalik mo, revert mo, yang nasa taas. Tapos, dahil expired na nga,
papapalitan mo ulit ng bago, so ung entry ung pangalawa. Yung pangatlo, is kapag nagexpired ung check
pero hindi rineplaced.
October 2020 became stale at April 2021
Accounts Payable 10k
Cash MDS Regular 10k
Since at December 2020, sinara mo na ung cash mds regular kasi nga galling un sa budget. Kapag sarado
na ung libro, tapos magaadjust to the current year, ang iaddjust mo ay Retained Earnings at ang katapat
po ng RE sa government accounting ay Accumulated Surplus(Defecit0. Kaya yun ung entry and so on
and so far
 Cash in Bank Local Current Account

Commercial Check to. Ang entry na pinanggalingan nito ay

A/P 10,000
CIB LCSA 10,000
And so on and so on ung nasa taas na entries.

IN SUMMARY:

UNRELEASED AND CANCELLED CHECKS

 Unreleased checks are reverted back to cash

Cash in Bank, Local Currency-Current xx
Accounts Payable (or other liabacc) xx

 Cancelled Checks (e.g, stale, voided or spoiled) are reverted back to cash

The cancelled check pertains to

Current Year:
Cash MDS Regular xx
Accounts Payable xx
Prior Period
Accumulated Surplus/Deficit xx
Accounts Payable xx