PDC deposited against cc a/c

Dear All,

             My firm opened a cash credit account with Axis Bank Ltd. Against the Loan the bank asked us to deposit the Post dated cheque equivalent to the sanctioned loan amount with them. We deposit a Post Dated Cheque from Punjab National Bank to them. 

           Now i am confused, what necessary entries to be passed so that the same may reflect in my books.

           Kindly Guide me on Urgent Basis.

 

Thanking You,

 

With Regards,

Nitil Agarwala

Replies (2)

pass entry only at the time cheque is deposited

You need not pass any entry in your books now and yes ofcourse you need to pass the entry at the time of realisation of the cheque.

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