Question

Cheque of 20,000 issued by Feroz was dishonoured​

Answer 1

A journal entry is a record of the transactions of a business in their accounting books. It records the debit and credit transactions.

• Dishonour of a cheque is when the bank refuses to pay the mentioned amount to payee due to various underlying reasons such as overwriting, insufficient funds etc

• The correct journal entry will be -

Bank A/c Dr 20,000

To Feroz A/c 20,000

( Being the dishonour of the cheque)