dishonoured cheques are added to uncredited cheques just like standing order and bank charges.
Answer Details
Dishonoured cheques are not added to uncredited cheques, standing order, or bank charges.
Uncredited cheques refer to cheques that have been received by a business but have not yet been cleared by the bank. These cheques are added to the business's cash book as receipts but are not immediately added to the bank balance because they have not been credited to the account by the bank.
Standing order refers to a regular, fixed payment that is made from a bank account, such as rent or loan payments. These payments are deducted automatically by the bank and are included in the bank statement.
Bank charges refer to the fees charged by the bank for various services such as account maintenance, overdrafts, or returned cheques. These charges are deducted from the bank account by the bank and are included in the bank statement.
Dishonoured cheques refer to cheques that have been returned by the bank unpaid, usually due to insufficient funds or other issues with the account. These cheques are not included in the uncredited cheques or any other receipts in the cash book because they are not a valid form of payment. Instead, they are recorded in the cash book as a reduction in the bank balance.
In summary, dishonoured cheques are not added to uncredited cheques, standing orders, or bank charges. They are treated as a reduction in the bank balance and are recorded separately in the cash book.