UK Accounting Glossary
Payments that have been received by cash, cheque, or credit card that have yet to be paid into the bank.
When a customer’s cheque is received as a payment it is a credit to Accounts Receivable (as a reduction of that account), and as a debit for Undeposited Funds (an increase in that account-which is a holding account until the deposit is made). The funds are then transferred to the bank account by way of a deposit.
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Definitions for Undeposited Funds are sourced/syndicated from:
This glossary post was last updated: 26th December 2018.