I close out a bank account, and the bank cuts me a cheque. I open a new bank account. Two months later I deposit the cheque from the first bank. How do I treat this in the old bank account to stop it turning into a transfer, as this would give the wrong date?
Closing bank accounts and paying into a new account
Apr 07, 2006
5 Replies
The date of the cheque you should create a transfer to Undeposited Funds from your old bank account. Then on the deposit date create a transfer from Undeposited Funds to your new bank account
You have to use a General Journal entry. You are right that it won't let you use a Check type transaction transferred to Undeposited Funds.
Open "Make General Journal Entries..." on the Company menu. Create a Journal Entry debiting your old account and crediting Undeposited Funds.
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Paul, I had a similar event. Wrote a check to the bank for a cashiers check for the remaining balance of the account I'm closing and posted that check to Assets: Transfer of Assets in the Account column and made a memo entry: "closes this bank account". Then deposited the cashiers check to the new bank account and handled it as an Assets: Transfer of Assets in the From Account column. Let's hope this keeps GL happy.
BillE
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