1.An outstanding check is a check that has been written by a company (and deducted from the appropriate general ledger cash account) but it has not yet cleared the bank account on which it is drawn.
2.Hence, outstanding checks will mean that the balance in the bank account will be greater than the balance in the general ledger account (or in an individual's check register).
3.In the bank reconciliation process, the total amount of outstanding checks is subtracted from the ending balance on the bank statement when computing the adjusted balance per bank.
4.Checks which have been written, but have not yet cleared the bank on which they were drawn. In the bank reconciliation, outstanding checks are deducted from the balance per bank statement.
5.If an outstanding check has not yet cleared the bank by the end of the month, it does not appear on the month-end bank statement, and so is a reconciling item in the month-end bank reconciliation prepared by the issuing entity.
SIMILARITY =outstanding checks/unpresent checks/checks that is not presented by the bank
Checks that are outstanding for a long period of time are known as stale checks. In the U.S. outstanding checks are considered to be unclaimed property and the amounts must be turned over to a company's respective state after several years. Rather than allowing checks to become stale and then remitting the money to a state government, companies should contact the payee of any check that has been outstanding for several months
Checks that are outstanding for a long period of time are known as stale checks. In the U.S. outstanding checks are considered to be unclaimed property and the amounts must be turned over to a company's respective state after several years. Rather than allowing checks to become stale and then remitting the money to a state government, companies should contact the payee of any check that has been outstanding for several months
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