Example: Dishonoured Cheque:
March 1 Joel owed you $500
3 Joel gave a cheque of $500
5 Joel’s cheque was dishonoured by the bank.
Record the entries into the Cash Book and ledger.
Joel Account
Dr
Cr
Example: March 1 James owed you $150
7 James gave a cheque of $120 in full settlement of his account.
Discount allowed $30.
9 James’s cheque was dishonoured by the bank.
Record the entries into the Cash Book and ledgers.
Cr D
(OU r
T) (I
C
a
s
Dr
James Account
Cr
Dr
Discount Allowed
Cr