Outstanding check

The entity reduced its cash when it wrote the check. The bank reduces the account when the payee presents it, which can be weeks later or never.

Because the books are already right, the adjustment is on the bank side, subtracted, and no entry follows. The bank balance is temporarily too high by the amount of checks still travelling.

A check outstanding for a long time is worth attention rather than a routine carry-forward. It may have been lost, it may have been recorded twice, or the payee may have never existed. Many jurisdictions eventually require the funds to be remitted to the state as unclaimed property, so a stale check is not a balance the entity can quietly keep.

If valid outstanding checks total $17,900, subtract $17,900 from the bank side. Keep the check number, payee, issue date, amount, ledger posting, and later clearing evidence together. Do not credit Cash again. A void, replacement, stop payment, or stale item needs separate evidence and may require an entry; the label "outstanding" does not settle that later question.