irrecoverable debts and dishonoured cheques
student17
Registered Posts: 17
Hi,
I'm confused as to why irrecoverable debts and dishonoured cheques don't get balanced the same way in double-entry?
Both are a loss of earning to the business and in both occasions business has provided services/stock for no payment..
Hopefully someone is able to explain why they get entered on double-entry differently.
Thank you
I'm confused as to why irrecoverable debts and dishonoured cheques don't get balanced the same way in double-entry?
Both are a loss of earning to the business and in both occasions business has provided services/stock for no payment..
Hopefully someone is able to explain why they get entered on double-entry differently.
Thank you
0
Comments
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Dishonoured cheques are a writeback to the bank account and bad debts aren't.1
