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 – bank column(credit)

Explanation

Dishonoured cheques will be recorded on the credit side, write “By Debtor A/C” with respective amount in the bank column.