Accounting for IGCSE & O level - Accounting Procedures (Section 20 - No. 15)
How is a dishonored cheque handled in the sales ledger?
Customer's account debited, bank account credited
Customer's account credited, bank account debited
Customer's account debited, sales returns debited
Bank account debited, sales credited.
Explanation
Dishonored cheque means you didn't receive the money, so debit the customer and credit bank.
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