Cheques in Hand

It acts like a contra item. Example

1. ABC debtors a/c 5000

    To Sales a/c 5000

2. Purchases a/c 2000

    To XYX creditors a/c 2000

you received a post dated cheque for 5000 from debtors, issued a post dated cheque for 2000 for creditors today. So you made following entries like following and bank balance is 10000

1. Cheque a/c

    ABC   Debtors a/c

2. XYZ creditors a/c 

    To Cheque a/c

here cheque means bank. In the balance sheet we can show it as

By Bank a/c 10000

post dated cheque +5000

post dated cheque -2000

because this amount is not deducted or deposited from/into the bank yet. It depends upon the accounting software architecture.