What is the double entry for a stale cheque?

When a cheque becomes stale (typically after six months of being issued), it is no longer considered valid for payment. The double entry for recording a stale cheque involves reversing the initial transaction that recorded the cheque. This means debiting the cash or bank account and crediting the Accounts Payable or expense account that was originally debited when the cheque was issued. This adjustment ensures that the financial records accurately reflect the current status of the transaction.