A. customer’s account; credit bank account
B. bank account; credit customer’s account
C. customer’s account; credit sales account
D. sales account; credit customer account
Correct Answer: Option B
B. bank account; credit customer’s account
Explanation
Treatment: Before any notice of cheque being dishonored: When a supplier (payee) receives a cheque from a customer(drawer) the supplier’s cash book is debited and the customer’s account in the sales ledger is credited with the amount of the cheque.
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