In a three-column cash book, dishonored cheques will be shown on the
-
A.
bank column (debit) -
B.
bank column(credit) -
C.
cash column(debit) -
D.
cash column(credit)
Correct Answer: Option B
Explanation
Dishonoured cheques will be recorded on the credit side, write “By Debtor A/C” with respective amount in the bank column.