An NSF check is a type of check that has not been honored by the bank. This can happen for many reasons, but most commonly it happens because there are insufficient funds in the account to cover the amount on the check. When this happens, you need to go into your accounting software and make adjustments so that everything matches up at the end of each day, week or month. You may be wondering where an NSF check should be entered into your general ledger when reconciling your bank statement? Well first off, let’s talk about what a general ledger does.
The general ledger is where you can post all your transactions in a systematic way, so that they are easy to follow and understand. The general ledger also includes the following sections: assets, liabilities, equity (equity is defined as owner’s capital or net worth), revenue and expenses (only if there was some type of income). One thing to note about these different sections is that every transaction should have an entry on both sides of the equation! This means that for any time money comes into your business it will be entered into one side while at the same time something must come out from another section; this also applies when spending money too. If we were reconciling our bank statement with our accounting software then an NSF check would