Banking
Cheque Returned — Insufficient Funds (NSF)
Reversing the clearing entry when a cheque is returned unpaid due to insufficient funds.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Customer Account (Reversal + NSF Fee) | Liability (-) | 5,025.00 | - |
| Cheques in Clearing (Reversed) | Asset (-) | - | 5,000.00 |
| NSF Fee Income | Revenue (+) | - | 25.00 |
💡 Accountant's Note
Returned cheques reverse the provisional credit and generate an NSF fee. In Jordan, returned cheques carry potential criminal liability — making this a critical credit risk and compliance matter.
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