Question 7
Cash BookA dishonoured cheque is
- A.debited in cash book.
- B.credited in the cash book.
- C.double entry in the cash book.
- D.credited in the bank book.
Show the answer and explanation
Answer: B (credited in the cash book.)
Explanation
When a customer's cheque that was banked is dishonoured, the bank takes the money back, so the business credits the bank column of its cash book and debits the customer.