All 25 Control Accounts questions
More in Control Accounts
What is a control account reconciliation? Why is a control account a form of internal control? What is the effect of a discount allowed on the control accounts? How is a bad debt written off reflected in the sales ledger control account? What is teeming and lading and how do control accounts help detect it? How is refund to a customer shown in the sales ledger control account? Which errors affect the control account and which affect the list of balances? How is a contra/set-off recorded in the control accounts? How do you prepare a sales ledger control account from incomplete information? How would an overstatement of the sales day book affect the control account reconciliation?
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How do dishonoured cheques appear in the sales ledger control account?

Intermediate

Answer

A dishonoured (bounced) customer cheque reinstates the debt: debit the sales ledger control account (and the customer's account) to restore the receivable, with the credit to bank in the cash book. The control account rises again by the dishonoured amount.
Cheque 500 bounces: Dr Sales Ledger Control 500; Cr Bank 500.
Real-world example A bounced cheque re-debits the control account, restoring the customer's balance for re-collection.

Common follow-ups: Which side records a dishonoured cheque? | What is the corresponding credit?

Cash Book & Petty Cash Sales & Purchase Ledgers Control Accounts
All 25 Control Accounts questions