Question 127.— A cheque has been dishonoured, and is charged back to the account of the customer from whom it was received. When charging it back the ledger-keeper marks the cheque with the folio and his initials. The cheque is subsequently honoured by the bank on which it is drawn, but some difficulty is created by the figures and initials already placed on it. Do you not think the action of the ledger-keeper in question open to criticism?

Answer.—The action was certainly open to criticism. We do not think it is a good practice to treat a dishonoured cheque or bill as the entry voucher in debiting it back to the customer, as the item is thereby liable to be cancelled or mutilated.