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)
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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)
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23 January 2021 Entered in book on the date of clearing

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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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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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