a company recognises check dated 31st March or before received from customer after balance sheet date but the approval is before but before the approval of financial statement checks in hand is shown in the balance sheet as an item of cash and cash equivalents all check-in and are presented to bank in the month of April and all are also realised in the same month in the normal course of deposits in the state with the region whether the collection of cheque is its bearing a 31st March
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. as per medicine non adjusting event and it should should be recorded in the year when it is received just because the cheque does not impact any major major or material on a financial statement
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Accounting standards
Replies (2)
Quick Summary
If the check is already recognized in balance sheet as "checks in hand' with amounts, nothing needs to be done. It will act like a 30 days term deposit and the company can convert it into cash anytime they like.
Cheques in hand are always shown in balance sheet as Current Assets.
Now the point is cheques received after 31st mar but have dates after 31st mar 2020 are basically accepted .
These are reconcilliation items.
But always shown as cheques in hand...
Now the point is cheques received after 31st mar but have dates after 31st mar 2020 are basically accepted .
These are reconcilliation items.
But always shown as cheques in hand...
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