What is the journal entry for cheque dishonoured? / Accounting, Journal Entry / By admin Table of Contents Toggle What is the journal entry for cheque dishonoured?Cheque Dishonored by BankLedger of Party in Dishonoured chequebuy power Bi course for all Accounts professional What is the journal entry for cheque dishonoured? When a business received a cheque it debited its bank account and credited it party from which cheque is received.Now understand it with example Example 1Sales made to Mr Mohan by cheque Rs 10,000.Journal entry of same will be :Bank A/c Dr 10,000 To Sales A/c 10,000(being goodssold)Bank is Personal A/c as per Personal account Debit the receiverSales is Nominal A/c as per Nominal account Credit all income andgains Sales is income.Cheque Dishonored by BankThe cheque received from Mohan dishonoured and the bank has charged Rs 550 as bank charges.Now this Rs 550 charge is levied by the bank to us because of Mohan therefore that needs to be taken from Mohan with the cheque amount Cheque amount entryMohan A/c Dr10,000 To Bank A/c 10,000(being cheque dishonoured )· This is an adjustment entry where we Debit Mohan as to make him our debtors.· Bank is credited because we adjusted the bank which we debited earlier to credit it now to make adjustments in our bank account.The bank charged of a dishonoured cheque need to taken from Mohan.Bank charges A/c Dr550 To Bank 550(being cheque dishonoured charges )Adjustment of bank Charges.Mohan Dr550 To Bank charges A/c 550(being cheque dishonoured charges to be taken from Mohan)At the end Mohan is liable to pay us Rs 10,500. Ledger of Party in Dishonoured cheque Ledger of Mohan in Dishonor of cheque . Particular Amount Particular Amount To Bank 10000 To bank Charges 550 By bal C/d 10,550 10,550 10,550 Interest on Drawing Career with data analytics skills for Accountant why to choose career in Data Analytics with us buy power Bi course for all Accounts professional