When a cheque is returned dishonoured, it is recorded in ______________.

Cash column on the credit side

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Cash column on the debit side

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Bank column on the credit side

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Bank column on the debit side.

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Solution

The correct option is C Bank column on the credit side
The dishonored cheque is shown in the debit column of the bank statement.

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Similar questions

Q. Cash column of a Cash-book may show a Debit or Credit Balance.

State whether the following statements are TRUE or FALSE :

1. Total of payments side can be greater than total of receipts side in case of bank column.
2. Purchase of asset or stationery on credit is recorded in purchase book.
3. When goods are returned by buyer to seller, buyer sends a debit note.
4. Cheque received and deposited into bank on the same day is a contra entry.
5. Simple petty cash book is not very popular.
6. Interest on overdraft charged by bank is recorded in the cash column.
7. It is not necessary to record dishonor of cheques in the cash book.
8. Cheque book facility is available for fixed deposit account.
9. Businessman generally operates savings bank account.
10. A cash book is both a journal as well as ledger.
11. Cash book is a book of original entry.
12. Cash discount allowed is recorded on the debit side of cash book
13. Credit transactions are never recorded in cash book.
14. Endorsed cheques are always recorded on the payment side in the bank column.
15. A person who endorses the cheque is known as endorser.

In a trial balance, always the debit column should match with the credit column.

Prepare bank reconciliation statement of Shri Bhandari as on December 31, 2010

(i) The Payment of a cheque for Rs. 550 was recorded twice in the passbook.

(ii) Withdrawal column of the passbook undercast by Rs. 200.

(iii) A cheque of Rs. 200 has been debited in the bank column of the cash book but it was not sent to the bank at all.

(iv) A cheque of Rs. 300 debited to bank column of the cash book was not sent to the bank.

(v) Rs. 500 in respect of dishonoured cheque were entered in the pass book but not in the cash book.

Overdraft as per pass book is Rs. 20,000.

Q. Prepare bank reconciliation statement of Shri Bhandari as on March 31, 2017

(i)	The Payment of a cheque for Rs 550 was recorded twice in the passbook.
(ii)	Withdrawal column of the passbook under cast by Rs 200
(iii)	A Cheque of Rs 200 has been debited in the bank column of the Cash Book but it was not sent to bank at all.
(iv)	A Cheque of Rs 300 debited to Bank column of the cash book was not sent to the bank.
(v)	Rs 500 in respect of dishonoured cheque were entered in the passbook but not in the cash book. Overdraft as per passbook is Rs 20,000.

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When a cheque is returned dishonoured, it is recorded in ______________.

The correct option is C Bank column on the credit sideThe dishonored cheque is shown in the debit column of the bank statement.

The correct option is C Bank column on the credit side
The dishonored cheque is shown in the debit column of the bank statement.