Define: Undeposited Funds

UK Accounting Glossary

Definition: Undeposited Funds

Quick Summary

Payments that have been received by cash, cheque, or credit card that have yet to be paid into the bank.

What is the dictionary definition of Undeposited Funds?

Dictionary Definition

Full Definition

Undeposited Funds FAQ's

Are undeposited funds a debit or credit?

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.