Multiple choice

Directions: Choose the correct option for the given question.

Deposited cheque dishonoured will be recorded in

  1. Debit side of three column cash book

  2. Credit side of three column cash book

  3. Credit side of two column cash book

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a deposited cheque is dishonoured, the entry must be reversed. Since the original deposit was recorded on the debit side of the cash book, the dishonour is recorded on the credit side.

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