Our partnership wrote a check to a withdrawing partner that
remains un-cashed after 90 days. The cost of a stop payment
is greater than the amount of the check and the partner it
was written to is willing to forgo replacing it. How should
this be entered in bivio accounting? The check was the
remainder of a partial withdrawal of stock.
Thanks for any thoughts.
Scott
John Munn on
Several thoughts:
1. Why put a stop payment on the check if it was for only a small amount and the cost of the stop payment is more than the value of the check? That doesn't make sense. If the check is fraudulently cashed you still have recourse against the bank.
2. You trusted the payee as a partner, so trust them not to cash the original check and issue a replacement with the understanding the original check is to be returned. Edit the original transaction's notes to indicate a replacement check was issued and the original check has been voided.
3. If the partner doesn't want the cash, and I presume they are still a partner because this was a partial withdrawal, you can credit their capital account with the value of the uncashed check as a member contribution.
Our partnership wrote a check to a withdrawing partner that
remains un-cashed after 90 days. The cost of a stop payment
is greater than the amount of the check and the partner it
was written to is willing to forgo replacing it. How should
this be entered in bivio accounting? The check was the
remainder of a partial withdrawal of stock.
Thanks for any thoughts.
Scott
SB on
Thanks. Recipient is no longer a partner, I can't credit his account. He didn't cash the first one and is unlikely to cash a second check.
1. Why put a stop payment on the check if it was for only a small amount and the cost of the stop payment is more than the value of the check? That doesn't make sense. If the check is fraudulently cashed you still have recourse against the bank.
2. You trusted the payee as a partner, so trust them not to cash the original check and issue a replacement with the understanding the original check is to be returned. Edit the original transaction's notes to indicate a replacement check was issued and the original check has been voided.
3. If the partner doesn't want the cash, and I presume they are still a partner because this was a partial withdrawal, you can credit their capital account with the value of the uncashed check as a member contribution.
Our partnership wrote a check to a withdrawing partner that
remains un-cashed after 90 days. The cost of a stop payment
is greater than the amount of the check and the partner it
was written to is willing to forgo replacing it. How should
this be entered in bivio accounting? The check was the
remainder of a partial withdrawal of stock.
Thanks for any thoughts.
Scott
Linda Glein on
If the ex-partner will not cash the check, or if they are unable perhaps a family member could do it for them? Or, perhaps, with their permission you could make a donation on their behalf to a non-profit? You may be required to unclaimed fundsfunds over to the unclaimed property office in the state That office is generally located in the state's treasury.
1. Why put a stop payment on the check if it was for only a small amount and the cost of the stop payment is more than the value of the check? That doesn't make sense. If the check is fraudulently cashed you still have recourse against the bank.
2. You trusted the payee as a partner, so trust them not to cash the original check and issue a replacement with the understanding the original check is to be returned. Edit the original transaction's notes to indicate a replacement check was issued and the original check has been voided.
3. If the partner doesn't want the cash, and I presume they are still a partner because this was a partial withdrawal, you can credit their capital account with the value of the uncashed check as a member contribution.
Our partnership wrote a check to a withdrawing partner that
remains un-cashed after 90 days. The cost of a stop payment
is greater than the amount of the check and the partner it
was written to is willing to forgo replacing it. How should
this be entered in bivio accounting? The check was the
remainder of a partial withdrawal of stock.
Thanks for any thoughts.
Scott
Linda Mortimore on
Is this person friends with anyone in the club? Could you deliver cash to this person?
On Apr 9, 2023 10:17 AM, "Linda Glein via bivio.com" <user*21345500001@bivio.com> wrote:
If the ex-partner will not cash the check, or if they are unable perhaps a family member could do it for them? Or, perhaps, with their permission you could make a donation on their behalf to a non-profit? You may be required to unclaimed fundsfunds over to the unclaimed property office in the state That office is generally located in the state's treasury.
1. Why put a stop payment on the check if it was for only a small amount and the cost of the stop payment is more than the value of the check? That doesn't make sense. If the check is fraudulently cashed you still have recourse against the bank.
2. You trusted the payee as a partner, so trust them not to cash the original check and issue a replacement with the understanding the original check is to be returned. Edit the original transaction's notes to indicate a replacement check was issued and the original check has been voided.
3. If the partner doesn't want the cash, and I presume they are still a partner because this was a partial withdrawal, you can credit their capital account with the value of the uncashed check as a member contribution.
Our partnership wrote a check to a withdrawing partner that
remains un-cashed after 90 days. The cost of a stop payment
is greater than the amount of the check and the partner it
was written to is willing to forgo replacing it. How should
this be entered in bivio accounting? The check was the
remainder of a partial withdrawal of stock.
Thanks for any thoughts.
Scott
Roman on
Get a letter / email from the recipient that they do not want the funds and wish to give the amount to all other members in an equal amount.
This way they have the withdrawal and you can record a member contribution for the prorated amount by remaining members.
Essentially a withdrawal and contributions for the same amount netting to zero.
Sent from my iPhone
On Apr 9, 2023, at 11:49 AM, Linda Mortimore via bivio.com <user*32025500001@bivio.com> wrote:
Is this person friends with anyone in the club? Could you deliver cash to this person?
On Apr 9, 2023 10:17 AM, "Linda Glein via bivio.com" <user*21345500001@bivio.com> wrote:
If the ex-partner will not cash the check, or if they are unable perhaps a family member could do it for them? Or, perhaps, with their permission you could make a donation on their behalf to a non-profit? You may be required to unclaimed fundsfunds over to the unclaimed property office in the state That office is generally located in the state's treasury.
1. Why put a stop payment on the check if it was for only a small amount and the cost of the stop payment is more than the value of the check? That doesn't make sense. If the check is fraudulently cashed you still have recourse against the bank.
2. You trusted the payee as a partner, so trust them not to cash the original check and issue a replacement with the understanding the original check is to be returned. Edit the original transaction's notes to indicate a replacement check was issued and the original check has been voided.
3. If the partner doesn't want the cash, and I presume they are still a partner because this was a partial withdrawal, you can credit their capital account with the value of the uncashed check as a member contribution.
Our partnership wrote a check to a withdrawing partner that
remains un-cashed after 90 days. The cost of a stop payment
is greater than the amount of the check and the partner it
was written to is willing to forgo replacing it. How should
this be entered in bivio accounting? The check was the
remainder of a partial withdrawal of stock.
Thanks for any thoughts.
Scott