The accounting treatment for a dishonored cheque is; debit
A. customer's account; credit bank account B. bank account; credit customer's account C. customer's account; credit sales account D. sales account; credit customer account
Correct Answer: B
Explanation
Treatment: Before any notice of cheque being dishonored: When a supplier (payee) receives a cheque from a customer(drawer) the supplier's cash book is debited and the customer's account in the sales ledger is credited with the amount of the cheque.
