In this document we will show you the steps on what to do if a general cheque is printed or cashed from a trust bank. 

In this example, you have just posted a general cheque (#123) for the amount of $100 with the date Mar 1, 2020. But you discover that the paper cheque was printed on a trust bank cheque and cashed at a physical trust bank. you didn’t notice this error until you performed a bank reconciliation for March on Apr 20, 2020. To correct this error perform the following steps.

Step #1:

Reverse your general chq#123 with same date as original cheque date

Step #2:

Post a new general cheque#456 with same amount and current date in Apr

Step #3:

Deposit this general cheque in your physical trust bank to cover the shortage in trust bank.

Step #4:

For the general bank reconciliation in March, you will be ok to balance it. This is because the posted cheque#123 was reversed in March.

Step #5:

For the Trust bank reconciliation in March, you will need a bank statement worksheet adjustment (as seen below). As long as you see a deposit of $100 to cover the shortage on your bank statement in April, you can delete this adjustment in Aprils bank reconciliation.

You should now know what steps to take if a general cheque is printed or cashed from a trust bank.