I am doing distance studying Level 2, I would be grateful for some advice one of my assignments has a Customer paying for goods by cheque then a few days later the bank returns the cheque as dishonoured. How do I show this in the ledger? I have entered the cheque in the debit side of the Bank account, do I then enter it in the credit side to cancel it out? Also in the Customers account do I show it as being received in and going out again?
Thanks for any advice,