Dear members
1- PDC check received from customer and submitted into bank and discounting PDC before maturity
What entries
Shahzad Anwer (51 Points)
30 June 2018Dear members
1- PDC check received from customer and submitted into bank and discounting PDC before maturity
What entries
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 30 June 2018
You can do it in 2 ways - open check discounted a/c & entries as follows
Bank a/c Dr
To Check Discounted a/c Cr
On realisation
Check Discounted a/c Dr
S Drs (name of the party) Cr.
If you straightway give credit to party u may hv to face hurdles.
!) Giving Balance confirmation evenbefore his checks realised may not be a true picture.
2) If the checks were bounced if customer reacts on the above leads to unnecessary explanations to be given.
Shahzad Anwer
(51 Points)
Replied 02 July 2018
To Check Discounted a/c Cr
under which account we creat check discounted
CAclubindia
