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The accounting treatment for a dishonored cheque is; debit

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Accounts - Principles of Accounts WAEC 2014

The accounting treatment for a dishonored cheque is; debit

  • customer's account; credit bank account
  • bank account; credit customer's account checkmark
  • customer's account; credit sales account
  • sales account; credit customer account

The correct answer is: 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.

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