Accounting for IGCSE & O level - Accounting Procedures (Section 12 - No. 44)
What is the impact of a dishonored check on the bank's balance in the sales ledger?
The bank balance is increased by the amount of the check.
The bank balance is decreased by the amount of the check.
There is no impact on the bank balance.
The bank balance is increased by twice the amount of the check.
Explanation
A dishonored check decreases the bank balance as the funds are not received.
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