irrecoverable debts and dishonoured cheques

student17
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

Comments

  • Neillaw
    Neillaw New Member RossendaleMAAT, AAT Licensed Accountant Posts: 283 Regular contributor ⭐ 😼 ⭐
    Dishonoured cheques are a writeback to the bank account and bad debts aren't.
    student17
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