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Treatment Of PDC

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Querist : Anonymous

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Querist : Anonymous (Querist)
17 January 2011 plz tell the accounting Treatment of issue of cheque to bank as security against Loan
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
17 January 2011 For this no need to pass any accounting entry. just take a copy of cheque and keep in loan file,once the loan is cleared the same will be get back and cancel. so no accounting entry
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Querist : Anonymous

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Querist : Anonymous (Querist)
17 January 2011 can we diclosed in company balance sheet
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
17 January 2011 No such specific disclosure is required, but if you want to disclose, you can show as Notes to account
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