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WAEC Accounting 2014 Objective — Question 6

Question 6 of 50 from the West African Examinations Council (WAEC) Accounting 2014 Objective paper, with the correct answer and a full explanation.

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The accounting treatment for a dishonoured cheque is; debit

  • A. Customer's Account; credit Bank Account
  • B. Bank Account; credit Customer's AccountCorrect
  • C. Customer's Account; credit Sales Account
  • D. Sales Account; credit Customer's Account

Explanation

When a cheque is dishonoured, the entry is: Dr Bank account, Cr Customer's (suppliers'/debtor's) account.

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