When the bank returns a NSF (not sufficient funds)cheque to a depositor,that depositor should decrease the cash balance in its accounting system.

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When a cheque is returned as NSF, it means that the bank was unable to honor the payment due to insufficient funds in the account of the person who wrote the cheque. Therefore, the depositor should decrease the cash balance in its accounting system to reflect the fact that the amount of the cheque is no longer available in its account.

When the Bank Returns a NSF (Not Sufficient Funds)cheque to a Depositor,that