12-06-2009, 12:13 AM
Wassalam.. Cancelled cheques/ bounced cheque/dishonored check ... When you write some one a cheque but you dont have enough money in your bank account.. The cheque is returned saying refer to drawer... When you pay some one by cheque the double entry is
Dr Receivable ( In case your paying the cheque to your receivable)
Cr bank (bank is being credited coz the assets cash is decreasing)
And if in case because of any reason the cheque is cancelled the double entry will be reverse of above
Dr Bank ( Cash is returned so asset is increasing again )
Cr Receivable ( debiting receivable coz we are again increasing the receivable as the cheque has been cancelled) Hope it helps )
Dr Receivable ( In case your paying the cheque to your receivable)
Cr bank (bank is being credited coz the assets cash is decreasing)
And if in case because of any reason the cheque is cancelled the double entry will be reverse of above
Dr Bank ( Cash is returned so asset is increasing again )
Cr Receivable ( debiting receivable coz we are again increasing the receivable as the cheque has been cancelled) Hope it helps )
