I would like to ask you for help . I have troubles to understand what the difference is between dishonoured check paid in and dishonoured check paid out. Can you please explain the difference to me?
My thinking is that : 1. When business tries to pay its supplier by check that has been dishonoured this is where dishonoured check paid out occurs. Am I right?
2. When customer tries to pay the business with dishonoured check , from the point of view of the business this is where dishonoured check paid in occurs . Am I right ?
-- Edited by rafapak on Friday 25th of December 2015 07:02:37 PM
When a customer pays you, you pay the cheque INTO the Bank, so if that cheque then is subsequently returned unpaid by their Bank, it is called an unpaid in.
If you pay a supplier by cheque and you don't enough money in the Bank account then the cheque will be returned as an unpaid out.
edited for spelling error
-- Edited by Cheshire on Saturday 26th of December 2015 12:55:20 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
