Course Content
New Accounting Model (Exam-2009)
Books references: 1. Account Code (Volume III). 2. Chart of Accounts (Issued by CGA). 3. Manual Accounting Principles. 4. Accounting Policies and Procedures Manual.
Private: DAO Part-I Examination 2024 (Fresh Candidates) Past Papers
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Question No. 5:

Treatment of Replacement Cheques, Unclaimed and Stale Cheques in APPM and Lost Cheques and Time-Expired Cheques in Account Code Vol. III:

  1. Replacement Cheques:
    • If a cheque is lost or damaged, issue a replacement cheque.
    • Properly document the reason for replacement and maintain records.
  2. Unclaimed and Stale Cheques:
    • Set a policy for handling unclaimed cheques after a specified period (e.g., six months).
    • Write off unclaimed/stale cheques from the books.
    • If required by law, record a liability for unclaimed funds.
  3. Lost Cheques:
    • If a cheque is lost, investigate the circumstances.
    • Record the loss in the accounting records.
    • Issue a replacement cheque if necessary.
  4. Time-Expired Cheques:
    • Cheques have a validity period (usually six months).
    • After expiry, reverse the cheque transaction.
    • Debit the cash account and credit the original expense account.

These procedures ensure proper handling of cheques and accurate financial reporting.

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