Question

Bank informed qbout the dishouner of the cheque of hari amounting to ₹1000

Answer 1

Answer:

Hari A/C dr 1000

To Bank A/c 1000

Answer 2

Concept:

Dishonor of cheque-

• Cheque dishonour means that the bank refuses to accept or pay the cheque.
• This results in non-payment if the cheque is for a supplier of goods or a non-receipt if the cheque is for a receivable.
• As a result, the resulting journal entry reverses the payment/receipt entry.
• If the transaction involves a cheque payment to suppliers, the journal entry is debit to the bank and credit to the liability; otherwise, the journal entry is debit to the receivable and credit to the bank in case of when cheque is received from a debtor.

Given:

the cheque of Mr. Hari of Rs. 1000 is dishonored

Find:

Pass journal entry

Solution:

Hari A/c Dr.  1000

     To Bank       1000

(Being cheque by Mr. Hari dishonored.)

Hence, we can say the earlier wheh cheque was received from Mr. Hari, bank account was debited but as soon as the bank informed about the dishonour of the cheque the bank account was credited.

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