What is an Unpresented Check?

An unpresented check is a check that a payer has created, but which the bank on which the check is drawn has not yet made a corresponding payment to the check recipient (payee). This may be because the payer has not yet issued the check to the payee, or because the payee has not yet presented the check to the bank for payment.

Treatment of Unpresented Checks

When constructing a bank reconciliation, you would deduct any unpresented checks from the cash balance calculated by the bank, since the bank does not yet have a record of the check. Thus, if the bank of ABC Corporation has a balance in its checking account for ABC of $10,000, and there are $500 of unpresented checks, you would deduct $500 from the $10,000 bank balance to arrive at an adjusted bank balance of $9,500.

Accounting for Unpresented Checks

When a company issues a check, it is recorded as a credit to the cash account upon issuance (which reduces the balance in the cash account). You would not delay this entry just because it is an unpresented check at that point in time. There are no further journal entries to record in regard to the check, irrespective of whether it has been presented to the bank.

Presentation of Unpresented Checks

Unpresented checks are assumed to have been paid out by the payer for accounting purposes. This means that the related amount of cash is deducted from the cash line item on the balance sheet. In addition, the liability that was supposed to have been settled with this payment is reduced by the amount of the check in the balance sheet. Or, if the check was being used to acquire an asset, then the relevant asset line item is increased on the balance sheet.