How to handle Cheque Bounce Charges on Non-Member Income?

If a cheque received as a non-member income has bounced, you can revert the non-member income entry.

Cheque bounce charges levied by the bank has to be recorded under Expenditure->Expenses as a new expense.

If you receive the payment again from the non-member for the cheque bounce charges, you can directly record the amount as non-member income in a separate line item.

In case you are receiving a single payment for the original amount + cheque bounce charges, you can record this as a journal voucher under Accounting->Adjustments->Add Adjustment. Here you need to add an entry with three rows. For example, if some one is paying Rs. 1,100/- cheque where Rs. 1000 is the towards stall rental and Rs. 100/- is towards Cheque bounce – you need to enter:

1. Credit Rs. 1000/- against  Stall Rental Income Account

2. Credit Rs. 100/- against Cheque Bounce Charges Income Account

3. Debit Rs. 1100/- against the Bank account where the cheque is deposited.

You can put the cheque number in the adjustment description to keep track.

In case the cheque bounce is from a resident, you can go to Income->View Payments, filter on the relevant payment and then “Revert the payment”. When reverting, indicate the reversal date and the reason for reversal. You will also get an option to levy cheque bounce charges on the member as a part of the reversal process.

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