Timing differences Updated November 2026

Stale checks

A stale (stale-dated) check is one outstanding so long that the bank may refuse it, commonly six months. After contacting the payee, void it with an entry that debits Cash and credits the original payable or a liability for unclaimed funds; the obligation to pay does not disappear just because the check expired.

Syntax

Void stale check: Dr Cash [amount] / Cr Accounts Payable (or Unclaimed Property Liability) [amount]

Part	What it is
`Honoring period`	Commonly 6 months under the UCC; the bank may still pay in good faith
`Void entry`	Reverses the cash deduction and reinstates the liability
`Unclaimed property`	Many states require unclaimed amounts to be remitted (escheated) after a set period

Examples

Check #250 for 300 to a vendor, written 8 months ago, never cleared, vendor cannot be reached

Result: Dr Cash 300 / Cr Unclaimed Property Liability 300. The check comes off the outstanding list.

Check #260 for 450 to a supplier who confirms it was lost

Result: Void: Dr Cash 450 / Cr Accounts Payable 450, then issue a replacement: Dr Accounts Payable 450 / Cr Cash 450. Net cash effect zero; the new check number goes on the outstanding list.

Common mistakes

Crediting income when voiding a stale check: the money is still owed to someone; credit a liability.
Voiding without a stop payment: the old check may still be cashed; place a stop with the bank first.
Leaving stale checks on the list for years: they clutter the reconciliation and may breach unclaimed property law.

Practice Stale checks

These drills check your answer on live data, free, no account needed.

A check that never clearsLast month's outstanding items are listed separately. Classify them too, then every line, and enter both adjusted balances.
Carry-forward cleanupLast month's outstanding items are listed separately. Classify them too, then every line, and enter both adjusted balances.

Questions

How long is a check valid?

Banks are not obliged to pay a check more than six months old, but they may. Treat anything past your policy period, usually 90 to 180 days, as a follow-up item.

Does voiding a stale check increase profit?

Not normally. The payable or an unclaimed property liability is reinstated. Only if the obligation is legally extinguished can it be released to income.

Outstanding checksAn outstanding check has been written and recorded but has not cleared the bank. Subtract the total from the statement balance and carry unpaid ones forward.
Prior month outstanding checksHow last month's outstanding checks and deposits in transit roll into this month's bank reconciliation: remove those that cleared, keep those that did not.
Correcting entryA correcting entry fixes a mistake in a posted transaction: reverse the wrong part and record the right one, or post the net difference. Examples by error.