Issued a cheque undated to the bank

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Issuing an undated cheque to the bank doesn't constitute a transaction that requires immediate accounting entries. Instead, it's crucial to maintain a separate record of these cheques. You should only record the transaction in your books on the date the cheque is cleared by the bank.

karunakara

karunakara (Querist)

23 January 2021 We have issued a cheque undated to the bank . Question is how is that gonna be showing in the books ? Is it necessary? If so what would be the entry in tally.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

23 January 2021 Entered in book on the date of clearing

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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 January 2021 Giving PDC cheques to Bank or someone is not a transaction and so we can not make any accounting entris for these. We should be keepting a separate track of these issued cheques and make sure these are cleared over time.

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