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when reconciling the ledger with the bank statement assuming a positive bank balance a returned dishonored Chequers should be

Q.024 When reconciling the ledger with the bank statement (assuming a positive bank balance) a returned (dishonoured) cheque
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Answer #1

Dishonored Cheques should be substracted from the general ledger bank balance.

Explanation:
Dishonoured cheques are cheques received from customer and banked but then returned unpaid (“dishonoured”). Dishonoured cheques should not be recorded in the Bank Statement because the bank only credits their customer's account when they actually receive cash.

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