Which action should be taken when a check has an error and needs to be corrected?

Which action should be taken when a check has an error and needs to be corrected?

• A. Void The Check Only
• B. Void The Stub Only
• C. Void Both The Check And The Stub, And Prepare A New Check
• D. Keep The Check And Rewrite The Stub

Answer: (C)

When a check contains an error, you must cancel the original payment and fix the records before issuing the corrected payment. Voiding both the physical check and the accounting stub ensures the bank won’t cash an erroneous payment and the books won’t show a payment that didn’t happen. If only the check is voided, the stub would still reflect a processed payment, creating a mismtach between the ledger and bank activity. If only the stub is voided, the bank still has a negotiable check that could be presented for payment, risking duplicate or unauthorized payment. Keeping the check and rewriting the stub would leave an invalid instrument in circulation. The proper path is to void both, then prepare a new check for the corrected amount or payee and record the new payment accordingly.

When a check contains an error, you must cancel the original payment and fix the records before issuing the corrected payment. Voiding both the physical check and the accounting stub ensures the bank won’t cash an erroneous payment and the books won’t show a payment that didn’t happen. If only the check is voided, the stub would still reflect a processed payment, creating a mismtach between the ledger and bank activity. If only the stub is voided, the bank still has a negotiable check that could be presented for payment, risking duplicate or unauthorized payment. Keeping the check and rewriting the stub would leave an invalid instrument in circulation. The proper path is to void both, then prepare a new check for the corrected amount or payee and record the new payment accordingly.