Outstanding Cheques

Outstanding cheques are issued cheques recorded as payments in the entity’s bank ledger that have not yet been debited by the bank.

They create a timing difference between the book bank balance and the bank statement. In a reconciliation starting from the bank statement balance, outstanding cheques are deducted. A cheque tracked only in a separate PDC register, without reducing the book bank balance, does not create the same reconciliation adjustment.

Used in bank reconciliations and follow-up of issued cheques awaiting presentation or payment.

The bank statement balance is AED 50,000, and an issued cheque of AED 5,000 has already reduced the book bank balance but has not cleared. With no other differences, the adjusted statement balance is AED 45,000.

Explains reconciliation differences and helps prevent duplicate payments when an issued cheque has not yet cleared.