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• # 54984
• Sun 06 Mar 2011 10:28 PM

Hi
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,

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• # 54996
• Mon 07 Mar 2011 12:33 PM

You should show the entries on both sides of the Bank Account and the Customers Accounts.  Thus this would bring the transactions totals back to what they would have been if there was no payment received from that customer.

Hope that this helps.

• Louise
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• # 54999
• Mon 07 Mar 2011 02:40 PM

Andy02 said:

“Hi
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,”

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• # 55007
• Mon 07 Mar 2011 06:03 PM

Thanks for your help, I think I understand it now I had been thinking it was something along those lines but good to have it explained to me properly, Thanks.

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