Question:

What is the journal entry when the cheque issued by client has no funds?

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What is the journal entry when the cheque issued by client has no funds?

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  1. When you receive the cheque:

    Dr  Cash x*x

    Cr  Accounts Receivable x*x

    When the cheque is dishonoured by the bank:

    Dr  AR x*x

    Cr  Cash x*x

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