Q.Based on Question 6 above, pass the journal/Cash Book entries Kavya Traders must now record in its own books for items

Both items are transactions the bank has already recorded that the firm's own Cash Book has not yet caught up to — each needs a real entry now.

(iii) Bank charges of ₹250 have been debited by the bank but never yet entered anywhere in Kavya Traders' own books — this is a genuine expense that must now be recorded:

Bank Charges A/c Dr ₹250; To Bank A/c ₹250.

(v) The ₹900 cheque was originally received from a debtor/customer and, when deposited, was entered in the Cash Book as a receipt (Bank A/c Dr; To Debtor's A/c). Now that the cheque has been dishonoured, that earlier receipt must be REVERSED — the debtor once again owes the ₹900 (the debt was never actually settled), and the bank balance must be reduced by the amount that was wrongly treated as collected:

Debtor's A/c Dr ₹900; To Bank A/c ₹900. …

A common error on the dishonoured cheque is crediting the Debtor's account instead of debiting it — a dishonour means the customer's debt is REINSTATED (the business is owed again), which is a DEBIT to t …